10 Reasons Why Home Owners Sell and Move Up

Unfortunately, selling your home in today’s market will not provide the same result as two years ago; you may be experience a 10-to-30 percent decrease in value. When the housing market declines, so does the price of all the homes, including that larger more expensive move-up one that you desire. And that’s good news, because what you lose selling your current home will be more than recovered when purchasing the next one.



Reasons for Selling and Moving Up:



1. The home is too small.



First-time buyers often outgrow their starter homes due to increased family size. What was comfortable for two has become a little cramped for four. And don’t forget the pets; the new family dog needs a larger back yard for play, growth and exercise.



2. Upgrade



People often want what they don’t have and long for a bigger, more expensive and grander upscale home. Maybe, you dream of a spa and pool for summer fun near a golf course. A grand dining room may be perfect for entertaining friends and family. The home business has taken off and requires a dedicated office.



3. Your child is starting school.



Maybe, you are looking for a better school district or wish to live closer to a private school.



4. Job promotion



Your family now occupies a higher financial strata, and it’s time to increase your comfort level.



5. Personal relationships



Two first-time homeowners are getting married and want a larger place to call their own



6. Neighborhood changes



The neighborhood might have deteriorated economically, socially or physically. It was a serene community ten years ago before highway construction began behind your back yard.



7. Rectify a mistake.



You may view your present home as a mistake and want to start over. Maybe, you are yearning for a larger garden or a formal dining room.



8. Job transfers



Relocation requires pulling up roots and moving to another area.



9. Deferred maintenance



Some people prefer to buy new rather than replacing the windows, roof or furnace. They trade up before repairs are required, similar to exchanging their two-year-old car.



10. Health problems



Some people may require one-level living due to increasing difficulty in climbing the stairs. Others may need certain equipment built into the home to accommodate a handicap or special need.



Whatever the reason, move-up buying in a down market can make sense. So, let’s address the one reason to do so now.



Obviously, if you’re selling your home for less than you could have two years ago, you’re disappointed, but you really need to look at the bottom line. If you are trying to trade up, whatever you are trading up to is going to sell at a discount also.



Example: Let’s say there has been a 10 percent decline in value of all homes in a particular area. You are selling your present home for $135,000; $15,000 less than the $150,000 value two years ago. You then purchase a home initially worth $300,000 for $270,000 ($30,000 less). Your net gain is $15,000.



So where do you want to live when the market turns around?