This time in the market has been a difficult time for home owners. People who are wanting to sell houses have seen the huge impact on the market as well.

There is a group of sellers who have a huge opportunity to get rid of potential losses on their home and make money too, this group is known as the move up buyer. You might ask yourself, well what does that mean? A move up buyer is a seller who will be purchasing a more expensive home than their current one. So, if you bought your home for $200,000 and the market is down 10% so now your home is only worth $180,000. Meaning your loss is $20,000.

Now, consider this seller is now looking to buy a home that WAS worth $400,000, but can now be purchased for the same 10% discount. That's a $40,000 savings. $40,000 savings - $20,000 loss = a $20,000 net gain.

Let's take it one step further and look at a hypothetical situation. Consider if the market was UP 10% since you bought your home for $200,000 and you could sell for $220,000. $20,000 profit.

Now, that same $400,000 home would be worth $440,000. $40,000 increase in purchase price minus your $20,000 profit equals a $20,000 LOSS. Combine the two situations and you are now $40,000 better off than if the market had increased 10%.

 

 

For more info please follow this link:

http://activerain.com/blogsview/2631707/make-money-selling-your-home-for-a-loss