New data analysis shows that moving up in this buyers market can save thousands. Home owners assume that because this is a buyers market it is a bad time to try to move up to that dream home they have always wanted. They know that it is difficult to sell a home in this market but they are not looking at the entire picture. They are not considering what they will save on the purchase of that dream home.
If you conservatively assume that the less expensive home sells for the same percentage less as the more expensive home it makes sense that you would save as is illustrated in this example.
You may get 5% less for your lower priced home, let’s say a home valued at $300,000 you get $285,000 ($15,000 less than in a normal market). But you will only pay $427,500 ($22,000 less than in a normal market) for that $450,000 home you’ve had your eye on, an overall savings of $7,500.
This is always the case in a buyer’s market and the market data proves it. In analyzing the actual MLS data for Carver County MN homes that have sold since Jan 1 2009 the results prove this out. The percentages are higher than the example above and are approximately 8%.
| Original List Price | Average Reduction in list price | Overall savings by moving from this level to the next higher level |
| $175,000 | $14,358 | $1,963 |
| $250,000 | $16,221 | $13,629 |
| $350,000 | $29,850 | $17,084 |
| $450,000 | $46,934 | $26,492 |
| $600,000 | $73,426 |
So using the figures illustrated above if you sold a home worth $350,000 for only $320,150 (a loss of $29,850 as indicated above) and then bought a home worth $450,000 for $403,066 (a gain of $46,934 again as illustrated above) your net gain would be $17,084. Wow!
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