Now is the time to upgrade to a larger home

There are many homeowners that want to upgrade to a home that meets their current needs and desires yet they are afraid of the market slide and fear they will not get full value for their home. This could play into your favor.

While prices have come down, the current market is a buyers market. If you are upgrading to a more expensive home this type of market will usually work to your advantage financially.

If we assume that you are moving to an area with similar depreciation here is the logic:

Your home is worth $300,000 and you want to buy a home that is worth $400,000. The upgrade will cost you $100,000 if both homes attract the full value. However, if both homes see offers at 10% below value here is what you have:

Your home sells for $270,000 and you purchase your new home for $360,000. Each home attracted offers 10% below their value resulting in an upgrade cost of $90,000. This is a savings of $10,000.

As a buyer you should be aware of what homes in your area are selling for and gauge what sort of discount you should be prepared for to ensure your home will sell. Using this you can make offers on your intended purchase that will coincide with this discount and give you the edge.

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