Truth #2 about the Quad Cities’s Real Estate Market

(This is part 2 of a 19 part series that will give you an expert insight into the current state of the QCA real estate market).

Truth #2: You can use the current market to your advantage even if you have to sell before you can buy.

Let’s say you currently own a home and you want to move, or almost have to move because you quite simply have outgrown the home.  More kids than there are bedrooms, or a  teenage daughter who is growing up and now spends more time in the bathroom than she did when she was in grade school.

Remember that in the last post, Truth #1  revelaed how it is a strong buyer market and buyers should be buying NOW, instead of waiting for the market to turn. That is still true, and you may be thinking that your home may be worth less and you should wait until the value rises again.  The truth is that values may not rise to those over inflated levels for quite some time.

Yes, it is a buyer’s market, and buyers have the upper hand.  But you also have to look at your home and what the market for yourspecific home may be on an individual basis.  If you are sitting in a home that is in good conidition, in a good location, you have made some improvements to over the years, you have been there for at least 4-5 years, and did not take another mortgage on it, you still should have eneough left over to make a few bucks to put towards your new home.  Plus it may still be in that prime first-time buyer range where there is always a strong market.  Generally, the first-time buyer market ranges from $90,000 to $150,000.  So you really are not going to get hit that hard even with it being a buyer’s market due to the ever-flowing first time home owner demand.  You may not make as much, but in the sceme of things, a few thousand less isn’t going to kill you and there is a way to make that up as I will go onto next…

So you put your home on the market and price it where it should be by getting an expert price opinion and ultimately get a pretty good offer on it that you can live with. 

Now here’s where to make up that couple thousand dollars due to the down market…

Let’s say you are moving up in price range from your $140,000 home to something above $180,000, considering thats what it will take to get that extra bedroom, more square feet, and that extra bath for Ms. Teen-USA’s beatuty routine.  That higher-end market is probably not as active and may be more affected by the buyer’s market for the simple fact that there is not as much demand  as there was in the market for your old home where you are tapping into the 1st time buyer’s pockets.  Maybe for the  simple reason these people want to move up too, and need to sell to purchase their own move-up home, they will be more motivated to work with you on your offer.

So you come in with a clean, non-contingent offer on their home since yours has already sold.  That is a pretty strong offer, and you should be able to negotiate a few thousand under list price foryour new home, thus picking up that couple thousand that you did not get out of your old home.  And then it evens out from there with an extra added benefit of a lower interest rate than your old mortgage, and you are in a better, larger home for a few hundred more dollars per month. 

You picked up that extra few bucks on the buying side vs. the selling side, which comes out darn near the same in the long run.

So to recap the rather confusing commentary-

Depending on your current home’s value, location, condition, and the current buyer’s market, you may not get as much out of it when you sell, but you may be able to pick up that lost money when you buy because of the that very same buyer’s market. 

The moral of the story….if you want or have to move for whatever reason, it can be done without taking a huge chunk out of your hard earned equtiy since it most likely can be recouped when you are wearing the buyer’s shoes.

Sounds complicated doesn’t? Well it is and isn’t.  And it comes down to timing and planning and with a good plan, it becomes rather simple. 

As a experienced Realtor in this area for almost 10 years in April (I am getting old!), I have been through this process with tons of famliles and 9 1/2 out of 10 times, it all works out for them. 

Over the holidays, I sat down and created a streamlined, smooth system for this type of real estate move where you have to sell before you can buy, to ‘move-up’, to a larger home for your current needs.

I have named it  the ” Sell B4U Buy Move-up Program“, and I am offering  it first to you as readers of this blog. There will be a Gold and Silver packages available for this program with Gold being a standard services package and Silver being the top-level VIP package.  For readers of this blog, I will upgrade you automatically to Silver-Level Status, if you mention this blog post.

If you fall into this category, where you have totally out-grown your home, or just really want a new home, this program is perfect for you.  I will be have a website for you soon but until then, please e-mail me at Matt@WoodSellsHomes.com with “Move-up Plan” in the subject line with your name and contact info and I will rush you all the detailed information by mail.  No obligation of course and full gurantee of all my services in writing as always.

  The cold weather keep s coming but spring will be here soon.  Get a jump on your moving plans so you are ready to go when the weather warms up and you really start thinking about a new home. 

As always, search all homes at www.qcHomeBuyer.com, or find anything you need at www.WoodSellsHomes.com. . 

Stay tuned for Truth #3 about the QC Real estate market in a couple weeks dealing with the current and dreaded FORECLOSURE properties and opportunities that are out there for smart buyers!