Buying up in a down market

By
Real Estate Agent with RE/MAX of Midland

It's no surprise to anyone that the housing market isn't the strongest. Does that mean it's a bad time to sell your existing house and look to upgrade to a new one? NO. Many sellers don't understand this scenario and how it can be very beneficial to your overall financial heath while capitalizing on this soft buying market. 

Prices aren't at their strongest but follow the simple breakdown below and it will explain how you can make money in this buyers market. Although it varies through different ranges, I'll be using round and easy numbers for this explanation.

Facts:   Current home value $100,000. Value of dream home $150,000. Market is down 10%

       If the value of your home is currently $100,000 after the 10% adjustment, it would be worth $110,000 after the market returns to a more normal state. Currently your down $10,000. If the value of your next home is also down 10%, that would mean the $150,000 home is worth $165,000 in a different market. A difference of $15,000. You close on both. Once you subtract the initial sale "deficit" of $10,000 by the $15,000 you just gained...your ahead $5,000!    

A very simple concept that can have large gains. Consider it over and if you still have questions on whether or not this is a fit for your situation, contact me and we'll review personally.

Regards,

Steve Kozak

Midland MI Real Estate Information - MoveInMidland.com

 

 

 

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Rainmaker
1,491,057
Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes
Nice info for our buyers...thank you for the info and post Steve.
Feb 22, 2008 06:32 AM #1
Rainer
164,544
Gary McAdams
GMAC Schwartz Property Sales - Key West, FL
Great information for sellers and buyers alike.  I'll have to pass that to all y customers.
Feb 22, 2008 07:02 AM #2
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