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Trade Up – The Opportunity of a Down Market

A buyers’ market is a trading up market. With falling home prices comes a great opportunity for move-up buyers.  Even though your home’s sale price may be lower, the smaller loss at sale can be compensated by greater savings at purchase.  For example, if home prices dropped by 5 percent, here’s what if could look like if you decided to trade up:

Old Home Price    = $200,000
Sell at $190,000=$10,000
Less

New Home Price   = $400,000
Buy at $380,000=$20,000
Savings


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