I have recently been contact by several clients indicating a desire to buy and move-up, but concerned that it is not a good time to sell.  Oftentimes there are misconception by sellers in a buyers market as they consider the sell of there home.  It is, in fact, a great time to sell!

Consider this hypothetical.

Balanced market:

$500,000               Seller Smith’s current home value in a balanced market.

$650,000               Seller Smith’s new home value in a balance market.

$150,000               move up cost

Buyer market- values down 15%:

$425,000               Seller Smith’s current home value in a buyer market market.

$552,500               Seller Smith’s new home value in a buyer market

$127,500               move up cost

*other benefits include broader selection buyer market and when market cycle back upside is stronger on new home they prior home

Seller market- values up 15%. (Seller Smith decided to wait out the slow market until things “bounce back”)

$575,000               Seller Smith’s current home value in a sellers market.

$747,500               Seller Smith’s new home value in a sellers market.

$172,500               move up cost

                                *other concerns for a move up buyer in a sellers market include less selection, more multiple offer competition and since history has shown a certainty that markets are cyclic then Seller’s Smith new home value bought in an up peak for the market is more likely to not appreciate in the near future or possible depreciation some as the market cycle back down over the next few years.

All this is assuming Seller Smith’s employment is stable, financial plan is in place and the family budget can afford the new purchase. 

Hey America, let's get moving.