3 Reasons Why Upgrading to a More Expensive Home in a Down Market

Introduction: In a down market, the idea of moving up to a more expensive home might seem counterintuitive. However, this strategic move can offer several advantages for homebuyers who are also in the process of selling their current property. In this blog post, we will explore three key reasons why upgrading to a pricier home during a market downturn can be a smart decision.

1. Capitalizing on Lower Prices: During a down market, home prices generally decline due to decreased demand and increased supply. This situation presents an excellent opportunity for buyers who are looking to upgrade. By purchasing a more expensive home at a reduced price, you can potentially secure a greater value for your investment. This advantage becomes even more apparent when the market eventually rebounds, as the appreciation potential of the higher-priced home can result in significant gains over time.
2. Increased Buying Power: In a down market, sellers may be more willing to negotiate and accept lower offers. When selling your current property, this can translate into greater flexibility and bargaining power when it comes to purchasing a more expensive home. With the potential to negotiate a better price, you can aim to secure a higher-quality property or a more desirable location that would have otherwise been out of reach during a seller's market. This increased buying power allows you to make a strategic move that aligns with your long-term goals and preferences.
3. Levering the equity you built in the last run up of the market: If you have owned a home over the past few years you likely have built up a remarkable amount of equity. Even though you may have lost a touch over the past few months of market softening the exuberant increase in values over the last 3 years likely still puts you in a great spot to have substantial cash for a downpayment on the next home.

Conclusion: Moving up to a more expensive home in a down market might not seem intuitive at first, but it can present numerous advantages for homebuyers who are also selling their current property. You can make a strategic move that benefits your financial future and we are here to help you do so with the advantages of moving The Outlaw Way! Reach out to learn more and for your no obligation home value assessment today.