We've all seen it before. You know when something is going wrong, like really bad, it feels like it's in slow motion. We can replay the moment as an observer from the outside and analyze everything that could have been different.
Unfortunately, this pandemic that we are in, mixed with our economy in Alberta, it may seem like you are stuck. Isolated.
But here's the thing.
If you are in a position of good income still, you have probably saved money over the past number of months due to lack of spending; you could be in a great position to make a move up in this down market.
This may seem like a crazy thought in a time like this, but hear us out, because if you do this right, the math is in your favour.
Right now, the market is down from what it was a couple of years ago. Could the market overall in Calgary and Alberta decrease? For sure. It could also be at the bottom, but remember, we can never tell where the bottom is by looking forward. We can only see where the bottom was when we look backwards.
We've heard rumours that home buyers are waiting because they believe that there will be a crash in the market in the coming months. We at the Chamberlain Group don't think this to be true because there are some underlying fundamentals in our city and province that have held us from being a bubble. We have been, and most likely will continue, to be an affordable city.
If you were to sell and buy a home in the same market, meaning within the same 90-day window, and there is a 10% drop across the city, here is how it could look for you.
Let's say your home was worth $300k, but it won't sell for that in a down market. You reduce the price by 10%, and it sells for $270k. It's sold, BUT it did cost you $30k.
Now, you're ready to buy a new home in the same market. Your top home adjusts to the current market by 10%. You buy it for $450k, saving $50k.
You MOVED UP in a DOWN market and came out ON TOP!
You SOLD for 10% (30k) below your asking price.
You BOUGHT for 10% (50k) below their asking price.
You're 20k ahead! (Not including your closing costs.)
If you'd like to chat more about this and how we can help you make this a reality, reach out to firstname.lastname@example.org or give us a call at 587-316-5400.