Crossroads Real Estate Marketing

Selling High and Buying Low

How do you sell your house in the best market with the highest price, then buy a house at the lowest market price? That is very difficult to do in the same seasonal market. Especially if you are moving up. The housing market is the housing market. Prices are set by supply and demand. And markets can change overnight.

For years I’ve been watching and studying the local housing market. During a sellers market, I encourage my clients to sell. During a buyers market, I encourage my clients to buy. That sounds simple, it is simple, and it works.

Wisconsin has seasonal markets. That does not mean all markets are equal. Some markets are more stable than others. Some markets are rather volatile. You have to know which local markets quickly change and when they change. One client was able to sell a house at top dollar at the peak of the selling market, and a few months later was able to shop for a home in one of the best buyers markets in years. That was due to normal seasonal changes and one of the earliest and worst winters ever seen. 2019 was a rather strange market as a whole with some expected and unexpected changes. In this particular case, the buyer received about $20,000 more for the house he sold then he could have sold for if he waited 6 months. In the buyers market he is looking in, prices have dropped an average of $10,000 to $20,000 in the location and price range he is searching in.

Not everyone has the ability to sell during the best selling markets, then wait a few months to buy when prices show a seasonal drop. That may require owning a second home to move into, or to rent for a time. We would have to look at the options as a case by case basis. On the other side of the coin, buyers may be able to buy at the lowest market prices, pay two mortgages for a few months, then sell their old home at the best market price. That of course takes money and planning. And a few calculations to see if the wait is worth it. Some risks are always present. No one can guarantee higher or lower market prices a few months down the road.

Selling high and buying low is no guarantee. Based on historic sales, we will see seasonal trends that effect housing prices that could swing as high as 10%. On a $200,000 house, that could mean a $20,000 gain on the sale of a house in the best market. It could also mean a $20,000 savings when buying in the best market. When you are looking at a $40,000 total savings, you may wish to take a look at your options in regards to timing. No one can guarantee any change in regards to home prices in any percentage, but there are ways we can look at historic data to make an informed decision. In every housing market, information is power. You owe it to yourself to gather and examine that information to make an informed decision.

Although delayed home buying and selling is not for everyone, we can take a look at your particular situation to determine the best market to make your move a reality. It all depends on if you are moving up, or moving down, in which market, and of course the location and style of your existing home. A lot of factors are involved. No two cases are the same. But in a market where timing is everything, the right season can save you thousands.

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