UpGrading in a Buyer's Market

Real Estate Agent with Keller Williams Realty

Upgrading in a buyers market....


Studies Show that on average sellers upgrade by 50% in price.  For example: a seller upgrading from a $150,000 home to a $225,000 home.  If homes were selling for 5% less on average during a buyers market, then a home that would normally sell for $150,000 would sell for 142,500, a difference of $7200.  The $225,000 home would sell for $213,750, a savings of $11,250.  So those upgrading to the $225,000 home would have a net gain of $3,750.  The moral of the story is that you stand to gain if upgrading in a buyers market.  Yes, you may not make as much when selling, but you could more than make up for the loss when you purchase.  Keep in mind the 5% could be considered conservative in a buyers market.  One could get an even better discount.  I find that most people think the money is made in the selling end, but I think there is good reason to believe the money is made on the purchasing end.  Many sellers find themselves highly motivated to sell due to a job transfer or some crisis.  But the buyers who purchase for less can rest easy when it comes time to sell.  They can often price their home competitively regardless of the market and still make a profit!!

Comments (6)

Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Mason,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to ya!


Aug 22, 2008 08:36 AM
Patricia Fisher
Keller Williams Realty - Spartanburg, SC

Welcome to the Active Rain Community!  This is a great site to network, learn, and share ideas with others.  Have a great day!

Aug 22, 2008 09:45 AM
Ron Brown NMLS #270845
NMLS ID: 40831 - Federal Way, WA


Welcome to Active Rain! Congratulations on your first blog.  You'll find this is a great site for sharing ideas, networking, and growing your business.  If you ever have a question about VA loans, or FHA loans I'd be happy to help!

Ron Brown

VA Loan & FHA Loan Specialist

First Mortgage Company of Washington

Puyallup, WA

Aug 22, 2008 01:32 PM
Vicente A. Martinez
Prudential Douglas Elliman Licensed Real Estate Salesperson - Woodhaven, NY
Realtor, Brooklyn - Long Island - Queens Homes

Hi Mason and welcome to active|rain. There are thousands of tips, tools, and tricks of the trade here. Be sure to check them out. Best of luck and see you around.

Aug 22, 2008 06:45 PM
Greg Steffens
Mountain Country Realty - Lake Arrowhead, CA

Hi Mason - Welcome to Active Rain and congrats on your first post.  Be sure to spend some time looking around at what and how others are blogging here.  It is a great education and lots of fun.  Looks like you're off to a great start...keep it up!

Aug 23, 2008 02:26 AM
Starstate Realty
Starstate Realty - Austin, TX

Hi Mason - Welcome to ActiveRain.  I look forward to networking with you and reading your future post.  Have a great day!!!

Jan 28, 2009 04:30 PM