An elegant white clock featuring 'DANIELLE LAZIER REAL ESTATE LOGO' on a sleek black background.Vivre Real Estate logo

But my San Francisco condo's value is down. Why on Earth would I trade-up now? Um, b/c it could make you money.

October 16, 2008

Trading Up in a Down Market: The Benefits

I've blogged before about the benefits of trading up or moving up in a down or flat market like we have here in San Francisco (i.e. going from your "starter home" to one that has more room and the location you really want).

However, I never took the time to actually lay out what I mean. Here goes.

Example:

You bought your starter condo for $600,000 at the top of the market which was 2004/2005. The place you really wanted (we'll call it your dream home) was worth about $900,000 back then.

Say San Francisco home values are down about 10%. It may be more or less depending on your location and property type but for the sake of this example, let's use 10%.

Your condo is now worth $540,000, a $60,000 decline.

Your dream home is now worth $810,000, a $90,000 decline. See where I'm headed with this?

If you chose to sell your condo at the reduced price and move up to the bigger home, you will end up saving money.

The difference between your "starter" and your dream home was $300,000 at the peak. The difference is now $270,000.

Net savings = $30,000

If you sell in a down market, you are also buying in a down market. If you wait for the rebound in a year or two, your dream home will also have rebounded.

Don't look at your real estate plans as a single, isolated event. It's gotta be in context. Consider your entire transition from one home to the next.

A good way to start is to find out what your home is worth AND what your dream home is worth. See if the math makes sense.

Bernal Heights

Yelp logo
296 reviews
View All
Zillow logo
176 reviews
View All
Danielle Elazier Realtor on Google My Business- image of Google my business logo
117 reviews
View All

Danielle lazier real estate team

We care deeply about our clients and our commitment to exemplary results. Working with us should be a good fit for you. If you feel our team is the right fit for you and you’d like to talk with Danielle to make sure, contact us today for your complimentary initial consultation.
Contact Me

Do You Need Another Real Estate Newsletter?

Probably not. Yet, in our biased opinion, you should definitely sign up for our twice-monthly email for market insights, webinar invites, local news, gorgeous homes, and more. We never share or sell your information. And, when you’re ready to work with us, please email or call to discuss your plans. We’d love to help!

Danielle Elazier botanical illustration - 3 different California poppy flower branches. Black and white with line art
View Full Street Address SAN FRANCISCO, CA 94114 (415) 528-7355 ©2008 VIVRE REAL ESTATE. ALL MATERIAL PRESENTED HEREIN IS INTENDED FOR INFORMATION PURPOSES ONLY. WHILE THIS INFORMATION IS BELIEVED TO BE CORRECT, IT IS REPRESENTED SUBJECT TO ERRORS, OMISSIONS, CHANGES, OR WITHDRAWAL WITHOUT NOTICE. ALL PROPERTY INFORMATION, INCLUDING, BUT NOT LIMITED TO SQUARE FOOTAGE, ROOM COUNT, NUMBER OF BEDROOMS, AND THE SCHOOL DISTRICT IN PROPERTY LISTINGS SHOULD BE VERIFIED BY YOUR OWN ATTORNEY, ARCHITECT, OR ZONING EXPERT. IF YOUR PROPERTY IS CURRENTLY LISTED WITH ANOTHER REAL ESTATE BROKER, PLEASE DISREGARD THIS OFFER. IT IS NOT OUR INTENTION TO SOLICIT THE OFFERINGS OF OTHER REAL ESTATE BROKERS. WE COOPERATE WITH THEM FULLY. EQUAL HOUSING OPPORTUNITY. ALL INFORMATION DEEMED RELIABLE BUT NOT GUARANTEED AND SHOULD BE INDEPENDENTLY REVIEWED AND VERIFIED.
enteruserclockcross