If you’ve been considering a move into a more expensive home, then moving up in a down market might be a good option for you. Imagine that your current home valued at $300,000 declines in value by 5% and is now worth only $285,000. If there is another home valued at $500,000, and it also declines in value 5%, then it would now be worth only $475,000. Even though you may have “lost” $15,000 on your current home, a home that you could “move up” into will have lost $25,000. During this “move up” you have essentially gained $10,000 by the overall decline in the market.
1 comments:
Great article and point to make with sellers that are reluctant, especially if their current home is in the first time home buyer price point where much of the action is ocurring. - Jessica Fox
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