"Move Up Buyers" -- those selling less expensive homes for a larger, more expensive property -- can reap BIG benefits in the 2008 market. The reason is simple: If the market is down, the discount gained on the more expensive property purchased will outweigh the profit lost on your current home sold, and that's money in your pocket!
"A 'Buyers Market', like today, is the ideal time for a move-up buyer to pounce," says Elaine Mallon, Broker Associate with Coldwell Banker. "Some kick themselves for not selling during the market's high in 2005. Instead, consider yourself lucky. As a move-up buyer -- you would have also bought at that time and the financial benefits would not have been as great as they are for you today."
For example: Assume a home was valued at $500,000 in 2005 and the move up buyer wanted to buy a larger $1,000,000 property. That's a $500,000 difference.
Today, let's assume both properties are not worth 5% less. The first home is now worth $475,000 ("lost" $25,000). The move-up property is now worth $950,000 ($50,000 "saved"). That's now only a $475,000 difference. You've saved more money by waiting until now!
"The move-up buyers actually MADE more money by not selling during the market high," adds Mallon. "It may sting to think you didn't get as much for your home as you would have a couple years ago, but it's more important to remember you may have saved more money on the next purchase!"
"Move-up buyers who cautiously watched the housing market in 2007 are finally feeling more confident now to make a move," adds Elaine. "The settling local prices have given buyers shot of confidence. Inventory is higher than it's been in years. Mortgage rates are still at historic lows and the Fed intends to keep it that way. Most move-up buyers now realize there's no crystal ball as to how long this great-opportunity down-turn will last; they just know when to recognize it when it is here!"
Is 2008 the time for move up buyers to buy? ABSOLUTELY! "The worst mistake is to try to predict the market, and wait to find th absoute bottom. The truth is it cannot be done. We won't know wwhen we've really hit bottom until prices start to climb again -- probably along with interest rates -- and by then the moment has been lost. Th most important thing for 'move up' buyers to know, is that we are currently in the low. In 2008, the move-up buyer needs to seize the advantages before them," concludes Mallon.
Elaine Mallon serves both HOME BUYERS & SELLERS throughout the Palos Verdes Peninsula, South Bay & San Pedro Peninsula. She is a mmber of Coldwell Banker's prestigious International President's ELITE (Top 2% of agents worldwide) and is a Certified Negotiator. Additionally, she is a Board Certified Palos Verdes Specialist, a CMAS Relocation Specialist, a top Award-Winning Public Relations and Marketing veteran and a regular contributor to the Daily Breeze and Peninsula News.
For superior real estate counsel, please contact Elaine directly at (310) 544-8453 or online at www.CaliforniaMoves.com/Elaine.Mallon or at her official HouseValues / JustListed website, www.HomePages.com/ElaineMallon. She looks forward to helping you!
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