New data analysis shows that moving up can save thousands.

If you conservatively assume that the less expensive home sells for the same percentage less as the more expensive home it makes sense that you would save as is illustrated in this example.

You may get 5% less for your lower priced home, let's say a home valued at $300,000 you get $285,000 ($15,000 less than in a normal market). But you will only pay $427,500 ($22,000 less than in a normal market) for that $450,000 home you've had your eye on, an overall savings of $7,500.

This is always the case in a buyer's market and the market data proves it. In analyzing the actual MLS data for Chaska for homes that have sold since Jan 1 2007 the results prove this out. The percentages are higher than the example above and are approximately 8%.
                                                                                          Overall savings by
                                                                                                              Moving from this level
                                                                                                              to the next higher level
Average reduction in price for original list price of $175,000 is $14,358         $ 1,863
Average reduction in price for original list price of $250,000 is $16,221         $13,629
Average reduction in price for original list price of $350,000 is $29,850         $17,084
Average reduction in price for original list price of $450,000 is $46,934         $26,492
Average reduction in price for original list price of $600,000 is $73,426

So using the figures illustrated above if you sold a home worth $350,000 for only $320,150 (a loss of $29,850 as indicated above) and then bought a home worth $450,000 for $403,066 (a gain of $46,934 again as illustrated above) your net gain would be $17,084. Wow!