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Tips when upsizing your home in a buyers market

August 2nd, 2010 admin
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-Some great tips if you are considering upsizing your home …

Here are a few things to consider if you are thinking about upsizing your home in this buyers market:

  1. When selling your current home in a buyer’s market, be realistic about the asking price. Stop thinking about what your home was worth at the peak of the market. What is it worth now? Say that you are taking a 5% loss on the value of your home from its peak. The seller of the home you want to buy is also taking a 5% loss. Say for example that you are taking a 5% loss on a $100,000, and your next home’s seller is taking a 5% loss on their $200,000. Then you will see a greater gain when the real estate market turns around with your next home
  2. Price declines in buyer’s market now make more desirable homes affordable.
  3. Make sure you speak with a mortgage specialist so that you know prices for your next home. Make sure you are comfortable with your new mortgage payments.
  4. Mortgage rates are at all time lows. You want to lock in at these low rates, so your rates will stay affordable.
  5. Don’t get caught up in the emotion when you are buying a home. If you fall in love with a home that could be your next home, you will not negotiate price with a clear head.
  6. A buyer’s market means a larger selection of homes. This gives the buyer more leverage, since the inventory is high. Make sure you take advantage of this when you are buying your next home.
  7. The current favorable market conditions won’t last long. Real Estate has proven over time to be a great financial investment.
  8. Upgrading your home allows you to gain more features in your next home. It also may allow you to move into a more desirable area.
Pat Egan is the Broker and Owner of Egan Real Estate in Ardmore, Pennsylvania. Pat has been investing in real estate since 1993. He grew up in construction, and has a good basic understanding of what is needed to make a  property work as an investment. Pat has a degree in Electrical Engineering, which he practiced for 6 years. Pat has been helping people buy and sell real estate since 2003. His engineering background helps when analyzing properties for his clients. Please feel free to contact Pat with any questions at pat@eganre.com.
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