I will have to admit that I don’t like calling homes a starter home because what is the first home for most is the second home or third home for others. However, if you or your family have outgrown the home you currently reside in, this is the perfect time to move-up. Why so? Well entry-level or starter homes are still flying off the shelf in DFW. Homes that can sell under $250,000 are high in competition. The homes in the $300,000s and up are taking their time to sell and prices are being slashed left and right. The time to move-up is happening now.
Tell me more Drea.
Well, you can sell your home at top dollar and use the proceeds from the sale to move-up putting 10-20% down on that home. Interest rates are still incredibly low and your payments will still be in range of affordability. There’s an affordable payment and more home for you or your family.
If that condo is getting too small and you want a house, this is a good time to move up to a house. If the house is 1500-1600 square feet and you now need about 2500-3000 square foot, look into selling and moving up to your next home.
If your house no longer fits your needs and you are planning on buying a luxury home, now is a great time to do so! Data from Trulia’s Market Mismatch Study which showed that in today’s premium home market, buyers are in control.
The inventory of homes for sale in the luxury market far exceeds those searching to purchase these properties in many areas of the country. This means that homes are often staying on the market longer which can eventually lead to a price change.
Those who have a starter or trade-up home to sell will find buyers competing, and often entering bidding wars, to be able to call your house their new home.
The sale of your starter or trade-up house will aid in coming up with a larger down payment for your new luxury home. Even a 5% down payment on a million-dollar home is $50,000.
But not all who are buying luxury properties have a home to sell first.
In a Washington Post article, Daryl Judy, an associate broker with Washington Fine Properties, gave some insight into what many millennials are choosing to do:
“Some high-earning millennials save money until they are in their early 30s to buy a place and just skip over that starter-home phase. They’ll stay in an apartment until they can afford to pay for the place they want.”
Bottom Line
The best time to sell anything is when demand is high and supply is low. If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a luxury home, now’s the time to list your house for sale and make your dreams come true.