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!!
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