Seeing a shift in the market may seem scary and you might be thinking it is not the best time to sell. BUT, the reality is it’s all about strategy and knowing how to play the situation in your favour!
When it comes to buying and selling, timing is everything!
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Why sell your home during a market downturn?
A market downturn will usually change the real estate sector to be the in the buyers favour. Offers will become generally lower, offer presentations will be no longer & there will be less competition.
Selling your home in a buyer’s market can feel a little discouraging, especially since the last couple years have been a little crazy! However, if you have lived in your home for quite some time now, you will likely still be able to make some profit!
Why it pays to upsize in a downturn
One bonus of upsizing in a downturn, is there may have been houses that were completely out of the question when you first started looking, but now have become more affordable!
Here’s a hypothetical example:
Let’s say you own a two-bedroom apartment that has dropped in value by 5%. It was valued at $500,000 at the peak of the market so it is now worth $25,000 less. That’s not the best news, but now think about the home you want to buy.
Your ideal home was valued at $1,000,000 last year and has dropped by the same percentage as your apartment. Now, when you buy that property, you are saving $50,000. The saving is greater than the loss and you now have yourself in the door of a larger home.
The long game
Buyer’s and seller’s markets always come and go, but real estate will always trend up in the long term. The bigger home you stretch your budget to buy now when the market is low will eventually grow in value.
If you’re selling in a downturn, try to keep the long game in mind!
Whether you are looking to buy or sell in 2023, contact us today or book a FREE, no obligation appointment below!
TEAM APEX REAL ESTATE
info@teamapex.ca
519-279-6869