Where are the Move Up Buyers?

Move-up buyers are not taking the market back from first timers, like many predicted when the move-up buyer tax credit was introduced. Traditionally move-up buyers make up about 60% of the market, but in 2009 they only accounted for 53%. The problem isn't people not wanting to move now, it's finding a buyer for their current home. Without selling what they own now, the majority of move-up buyers cannot afford to buy a new house. For the last year the real estate industry has focused on first time buyers, highly publicizing the $8000 tax credit. Those ready to sell their current home have not been focused on, and that leaves large gaps in knowledge for move-up buyers. For instance, many do not know that they have to have owned their current home for 5 years, but can move to any new house, it does not have to be more expensive than their current home. Also, the new deadlines have not been clearly communicated to the public. Buyers need to have an accepted offer on a home by April 30th, 2010, and it needs to close by June 30th, 2010. So, for a move-up buyer this window from the middle of February to the end of April is small, but it can be done. Set your home at the right price, be flexible with the buyer's needs, and be realistic about what you can afford to move up to.
Read more about move-up buyers here.