Wednesday, June 10, 2009

Down Market Offers Ideal Opportunity for Homeowners Looking Up

According to Jim Weichert, President of Weichert Realtors, many current homeowners mistakenly think it's not a good time to buy because they are focused on what they might have sold their home for in the past. Once they realize how beneficial it can be to trade up now, both financially and personally, they often have a change of heart.
Take for example, a homeowner who paid $200,000 for a home several years ago. If prices in their market declined by 10 percent, they would experience a $20,000 loss upon the sale of their home. However, if they are also buying a larger home that had cost $400,000, they would now benefit from a $40,000 savings on their purchase. This is a $20,000 gain in overall equity as a result of moving up.

In addition, when prices begin to rise, this trade-up buyer will see greater appreciation in their new home than their previous one.
With home affordability near record highs, those looking to move up can get more for their dollar today than at any time in recent memory. This also makes it possible for many trade-up buyers to afford a home they couldn't just a few years ago and might not be able to in a few years to come.

Smitha Ramchandani is a licensed real estate professional at Weichert Realtors' Morristown West, New Jersey office. She is a Certified Buyer Specialist and a Home Marketing Expert.. You can reach Smitha at: 973-953-7777 Mobile or 973-455-1900 Extension 122 (Office) or online at: or

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