Homes Cost Too Much! Everything Costs Too Much!

[MineralMan]

79. What you said is certainly true.

Still, there are many, many valid reasons why people sell one house and buy another.

People often move to be nearer to friends and family. That's why we moved from California to Minnesota. My wife's parents needed help as they grew older.

People often move due to changing needs for their living spaces. Our most recent move was not only to be closer to my wife's friends, but also to allow me not to have to do outside maintenance like I had to do with our previous house. So, we moved to a place with an HOA that does yard maintenance and snow removal.

People move because they need more or less space. Empty nest moves are very common, usually to downsize. Also a growing family or children moving into their teens often trigger a move to accommodate different space needs.

People move to be closer to the places they work. Long commutes are stressful and costly. Changes in employment or transfers often trigger the need to sell and buy elsewhere.

Also, these days, very few people actually own their home free and clear. Almost everyone carries a mortgage. I would argue that if you can shed that mortgage, you're going to be in a better position, going forward. Our most recent move allowed us to do exactly that.

Bottom line is that every move has unique reasons for taking place. Not everyone uses a move as a way in increase wealth by buying up.

Yes, the realty business profits from every move, to a greater or lesser degree. A couple of our home sales, though, were done without an agent or broker. Since the houses were mortgage-free, the sales were simple. So, we just used a title company to prepare all of the paperwork for us and skipped the commission. The buyers arranged their own loans. Our most recent sale and purchase, though, did require hiring a real estate broker. Yes, that cost money, but it made the process less complicated for me. Since I was handling my late parents complicated estate at the time, that was an important factor.

Real estate sales also make existing homes available for others to buy. Buying up creates a lower-priced home on the market, which can be purchased by a first-time buyer or someone else who needs a home in that price range.