It seems obvious that a first time buyer can take advantage of getting more bang for their buck in this real estate market. But, if you are looking to purchase your second or third home, how can you take advantage of a down market when selling? It is possible.
All prices go down, but not always equally. If you are looking to purchase in the same area then the values are most likely reflecting the same down-turn (or up-turn). The value of real estate tends to decrease or increase in percentages. For example, in today’s market we are seeing a 10% decrease in value of properties. If you want to upgrade your home, you too can take advantage of getting a good deal on a home because of the decrease in overall sale prices. You may receive less money on the sale of your home, but you will receive a bigger savings on your purchase. For example, if your property sells at $100,000-10% less than what it would have sold for at a loss of $10,000, and you purchase a home for $200,000 (a house that potentially would have sold for $220,000 in a different market) what you are gaining more than you are losing on the sale of your house.
When you are a buying and selling, you can take advantage of a “buyer’s market.” Interest rates are lower and sometimes the inventory is greater; therefore, you will have more houses to choose from. However, you must be the best possible buyer in order to receive that “deal” you are seeking. This means being able to go non-contingent. If you are approved for purchasing a home without selling your house first, that is the best way to compete. Or get your house on the market! Be realistic and price it competitively! Get a firm purchase contract, and then put your offer on the new property.