One of the things I’ve noticed about my real estate business this year is that I’m working with a lot more home owners moving up to a larger home. Instead of letting the negative news about the housing market keep them in a home that no longer meets their needs, they’re taking advantage of the situation!
Sure, they probably won’t get as much for their current homes as if they had sold 2 years ago, but that larger house that they want to move to also won’t cost as much as it would have 2 years ago! In fact, the cost of the larger home has probably come down more than the value of their home.
If this still doesn’t make sense, let’s look at the following example. If the value of a $300,000 house drops 10%, that’s a price drop of $30,000. If the value of a $500,000 house drops 10%, that’s a price drop of $50,000. The price drop of the more expensive home more than offsets the drop in value of the less expensive home by $20,000!
ABOUT THE AUTHOR
Fran Bailey shows, previews and tracks downtown Chicago homes for sale giving her the insights needed to help her clients negotiate the best price and terms. Fran has been quoted in numerous Chicago and national publications. To schedule showings of listings regardless of broker or to contact Fran email her at fran.bailey@bairdwarner.com or call 773.793.4516. Learn More
Fran Bailey, Realtor
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Fran -
Great, factual example. I continue to be surprised by people who don’t understand some of the simple economics of real estate. This is one such – and your clear, specific example will hopefully help people to get past the fear factor and take advantage of this great buying opportunity. good job!
Diane