Coldwell Banker Residential Brokerage, the Bay Area’s leading real estate services company, announced today that it has launched a targeted new marketing program to support consumers interested in moving up to a larger home to take advantage of improving values in the upper end of the housing market.
The move-up initiative was test marketed in the Sacramento and Lake Tahoe markets last year and proved so successful that Coldwell Banker Residential Brokerage decided to roll the program out throughout Northern California, where the company has 61 offices and more than 3,600 sales associates.
Each office will have eight to 12 agents who will specialize in working with move-up buyers. The “move-up marketers” will receive specialized training and devote more than half of each week to the special consumer niche. The agents will deploy online and direct mail marketing programs and will be supported with a wide variety of marketing tools and channels.
Rick Turley, president of Coldwell Banker Residential Brokerage in the San Francisco Bay Area, said the new program addresses a very important – but often overlooked – segment of the housing market, which has focused so much attention on first-time buyers recently.
“Many existing homeowners have seen their housing needs change, whether they’ve outgrown their small, starter home or need to move for work or simply want to move to a new neighborhood or city,” he explained. “But a lot of consumers have held off out of fear that the soft housing market would make trading up difficult if not impossible. The surprising fact is that this may actually be the best time to move up – precisely because of the housing slowdown.”
Although existing, entry-level homes may not sell for as much today as they would have at the height of the market a couple of years ago, savvy homeowners are beginning to discover that the math actually works in their favor when they move up to a more expensive property.
Larger, more expensive homes have generally dropped even more – in some cases, much more – than entry-level properties.
“What homeowners are starting to realize is that the difference between their existing home and the larger one they have been eyeing is probably much less of a step up than they thought,” Turley said.
For example, if a homeowner’s current property has declined 20 percent from its peak of $600,000 they may net $120,000 less when it comes time to sell. But at the same time, a home that was $1 million at its peak, for instance, may be on sale for $800,000, or $200,000 less, putting move-up buyers ahead of the game when they trade up.
Although home values have generally dropped in recent years, consumers who have lived in their homes for more than four or five years have likely built up significant equity that can be used to buy a larger home. In addition, demand for entry level homes has been very strong, making it much easier to sell their existing property to move up.
Turley said homeowners interested in trading up to a larger property aren’t the only ones capitalizing on the market dynamics. In addition, some consumers are taking equity out of their homes to purchase a new home at rock bottom prices, and then renting out their existing properties.
“Between lower prices in the upper end of the market and near historic low interest rates, there are outstanding opportunities right now for people thinking about trading up,” Turley said. “We intend to be there to help consumers take advantage while this window of opportunity remains open.”
Local Coldwell Banker Residential Brokerage offices participating in the new move-up program include Greenbrae, Berkeley, Castro Valley, Livermore, Pleasanton, Fremont, Walnut Creek, Saratoga, Los Altos, San Mateo, Los Gatos, Santa Rosa, Petaluma
To learn more about Coldwell Banker Residential Brokerage’s Move-Up Home Buyer Program, please contact your local Coldwell Banker Residential Brokerage office or call 925.275.3085.
About Coldwell Banker Residential Brokerage
Coldwell Banker Residential Brokerage is the largest residential real estate brokerage in Northern California, serving communities from the Monterey Bay to Lake Tahoe and nearly every market in between. The company has 61 offices and more than 3,600 sales associates throughout Northern California. Through its internationally renowned Coldwell Banker Previews® program, the company leads the luxury home market, selling more than one out of four properties priced above $3 million and one out of every three properties above $5 million. Coldwell Banker Residential Brokerage is part of NRT LLC, the nation’s largest residential real estate brokerage company. NRT has more than 900 offices and 56,000 sales associates operating in more than 35 major metropolitan areas. A subsidiary of Realogy Corporation, NRT operates Realogy’s company-owned real estate brokerage offices. For more information please visit http://www.CaliforniaMoves.com or call 925.275.3085. DRE # 00313415.
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