How Today’s Market Gives You the Best of Both Worlds


Here's an interesting question that we often get:

If I buy a house and sell a house in the same market, am I gonna give up some equity? Am I gonna make a mistake by doing that?

Well, generally when you're buying and selling a house in the same market, you're not gonna have any equity loss because you're just moving money from one house to the other. And actually in our current market, we have something kind of unique happening in a lot of areas of the country. Really it's a tale of two markets or maybe three markets.

But when you look at your market, it's not just one big market, right? It's broken down by price bands. And there's some price categories that are much hotter. They're much more active. People are much more engaged and that would typically be the lower price categories, right?

The first time home buyer categories. But as you move up that ladder to the second per home purchase, so maybe the starter luxury and the real luxury homes, you know, the activity goes down, down, down, because the buyer pool's smaller, smaller, smaller.

So right now in a lot of markets we're seeing that starter luxury and above market has already flipped over. It's already rolled over into a buyer's market. Whereas the bottom category of properties is still in a pretty decent seller's market.

So here's the opportunity:

If you've got a client that wants to move up into a starter luxury or luxury house, there is no better time than to do it right now because you've got the best of both worlds. Your client's in that $500k-$700k price range and they're selling. And that market's still relatively hot. They sell, they get a price rate, they get it sold. And they're gonna move up to maybe a million dollar home. Now those million dollar sellers that are sitting on the market, hearing some crickets, not a lot of showings, are kind of nervous. There's a lot of competition. Are they more motivated to make a deal? Absolutely.

So you're gonna be able to take your equity and negotiate really well on this next purchase. So those are conversations guys that you need to be having with your spheres of influence, your emails, your videos, and point out that there's some opportunities in this market. It's not all negative. It's some real opportunities we can talk to sellers about that can encourage them to get off the fence, get into the market, and make that transition to their dream home. Because there could be no better time than right now to make that happen.

So hopefully that helps you in your marketplace.

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