Wiser Wealth: Trading Up to a Bigger House is Challenging in Current Housing Market

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Mansion for sale in Chalfont
Image via Realtor.com.

While many business areas have been hurt by the pandemic, that has not been the case for the housing market.

In fact, it is so competitive among buyers that many properties are receiving offers exorbitantly above asking price. This has a lot of people thinking that it might be a great time to try selling too.

Deborah Acosta of the Wall Street Journal goes into deeper detail of why that might not necessarily be true.

One reason? That competitive buyer’s market might benefit you when selling, but it’ll make things a lot harder for you when it comes to affording a new home yourself.

Maybe you think you can handle splurging this once and that you will be able to handle it. However, if you intend for this to be your big move into a larger home, costs will continue to be higher even after purchasing the property.

Property taxes, upkeep, and renovations will all be more expensive on that bigger home. So breaking the budget now will not be some one-and-done thing.

Another potential source of frustration could be that even if you can handle paying a bit more than you want for a larger home, it might be tough having your bid accepted right now.

With all the competition you will face, the houses that interest you may have lots of other offers that scoop up that property before you have even had a chance at it. You may find yourself having to broaden your horizons to get some selection that doesn’t require you to move faster than you would like.

Some who thought the housing market was ripe have learned it’s not worth the trouble right now. Luis Gazitua is one homeowner who was initially pleased when his home got a bid for $700,000 more than he purchased it for.

However, he soon took his home off the market, saying, “We fell into the hype; it became enticing. You’re going to sell your house and make more money than you ever have, but then where are you gonna go?”

For more help when considering selling a house right now, read the Wall Street Journal’s article here.

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Fred Hubner

Want to know if you’re on the right path financially? Fred Hubler’s Second Opinion Service (SOS) is a no-obligation review with Creative Capital Wealth Management Group‘s Chief Wealth Strategist. It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting.

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