Ready to Move on to Your Next Home? Here’s What Experts Want All Move-Up Buyers to Know

Move-up buyers have unique needs, and shopping with the right approach can help. The good news? These real estate experts have advice.

If you’re looking for your next home, chances are you’re hoping to improve on some of your current home’s features as you hunt for the perfect fit. You might have heard buyers in your shoes referred to as “move-up buyers” for this reason. The move-up market can feel intimidating but, as with all things real estate, there’s a time for the best deals—the time when buyers of all levels have the best luck.

“There is a seasonality to the real estate market,” says Scott Bridges, the senior managing director of consumer direct lending at Pennymac. “There are advantages and disadvantages to transacting in season and out of season. The benefit of transacting in season is there will be more inventory, but the downside is there is also more competition.”

We spoke to some real estate experts to get their advice the best times for move-up buyers to shop for their next property—read on if you’re feeling a little lost in your house hunt.

Related: What First-Time Homebuyers Need to Know, According to Real Estate Pros

What Is a Move-Up Buyer?

Move-up buyer is a term used for anyone who currently owns a home, but is looking to sell and upgrade to something bigger or better. Of course, upgrading can mean many different things in real estate. Some buyers might want a larger home or property, while others might want something newer—or something in a different part of town.

“Typically, move-up buyers are in search of increased square footage, meaning additional bedrooms, bathrooms, and other amenities,” says Bridges. “The buyer may also place significant value on specific neighborhood characteristics, such as great schools, parks, and a more convenient proximity to the work to meet their evolving needs.”

No matter what you’re searching for, move-up buyers also have the fact that they’re buying and selling simultaneously in common—a trait that invites complications with financing and timing.

“If your current home does not sell, you may run into qualification issues—debt-to-income or asset requirements—on your new home,” says Bridges. “The best way to avoid this is by making sure the people buying your current home have had their situation reviewed by a reputable mortgage lender.”

You might assume that just about everyone selling at the moment would be considered a move-up buyer by default, given that they’re likely about to spend more on a new home than one they currently own, but Bridges says that’s not the case.

“There are still plenty of people looking to downsize for one reason or another," he says. “Many of these individuals own a home currently and are impacted by this competitive market beneficially when looking to sell. In fact, if move-up buyers have the opportunity to gain equity from selling their current home, they’d have an option to use that money to make a larger down payment, qualify for a higher mortgage or cover the expenses of the newer home.”

Related: When Is It Time to Buy Your Forever Home?

When Should a Move-Up Buyer Start Looking?

As is the case for all buyers, the best time to purchase a house is when you’re ready for it.

“Any homebuyer should look when the timing is good for them,” says Jessica Poulos, a broker on Better Homes and Gardens Real Estate’s northwest home team.

While this may be true, there are some strategies involved that you should keep in mind when starting your search. Poulos says that there are usually more homes on the market in the spring and summer months, but that those on the market should keep an eye out for properties in the winter, too—this way you’ll be able to see how the house holds up in colder months. In warmer parts of the country, though, different seasons might be a better option.

“The best time for move-up shoppers to look is when there is the most inventory, as that increases their odds of finding what they need,” says John Walkup, co-founder of UrbanDigs. “In New York City, that’s typically the spring and fall.”

But here’s the good news: You shouldn’t sweat it if you can’t catch the market at the “perfect time.”

“No matter what, the best time to look is when you’re ready,” Poulos says. “Because real estate is a long term investment, there isn’t a time of year that will give you more return in the long run.”

Plus, as more Americans become first-time home buyers later in life, they aren’t able to compete with move-up buyers who already have equity in their current homes and can afford to pay a higher price for a property they want. That means the move-up market is a bit more spread out.

“We have seen that culturally, the last few generations have waited longer to get married and start families, so first-time home buyers are usually not the same as the average move-up buyer who already has owned property for anywhere from 5 or 10 to 15 years,” says Dave Liniger, co-founder of RE/MAX.

Julia Hoagland, a broker with real estate company Compass, says a slow market is the best time to trade up. That might mean selling your home at a lower price than you planned, but it also might mean buying low.

“Assuming the overall market is faring similarly, the absolute discount you’ll get on the larger home is worth much more,” she says.

The Current Market for Move-Up Buyers

The current real estate market remains an enigma in the aftermath of the pandemic. In many parts of the country, inventory remains low while buyers continue to compete for homes that end up selling over asking price.

“The interesting fact of the matter is that there are not nearly as many move-up buyers and sellers as there would be in a normal market aside from the current economic climate we are currently in today,” says Liniger.

That’s because interest rates are high, making some sellers reluctant to give up their low rates for a new property.

“The situation we’ve had now for 12-14 years has been the lowest interest rates in the history of the real estate industry—around 5% but anywhere as low at 2.9%,” says Liniger. “Therefore, people that have mortgages continually refinance during those periods of low interest rates, with the hopes of acquiring the lowest interest rates possible.”

Bridges says that doesn’t necessarily mean it’s a bad time to look, though. Each market has its pros and cons for a move-up buyer.

“It’s relative: when prices are high in a market, you are going to sell high and buy high, when prices are lower, you will sell low and your buy-up property won’t be as expensive as a hot market, so it’s basically a push,” he says.

Poulos points out that as a move-up buyer, you might have a leg up over the competition because they have more equity in their current home, plus more cash on hand. That means that offering asking price or above might not be such a heavy lift.

On the flip side, if the purchase of your new home is contingent on the sale of your current home, you might run into problems.

Related: What Is a Starter Home?

Selling Your Current Home

The timing of selling your current home can be an issue—but one that’s solved with maintaining good communication with your lender and real estate agent.

“Sometimes buyers of move-up homes end up selling their old home after they move into the new one, as they get more market time on the old home and often sell it at a higher price,” says Bridges. “Also, a move-up buyer may not desire to live in temporary housing if they sell their existing home quickly and can’t do a rent back of the property until the new home closes.”

Walkup says that time can be the worst enemy of a move-up buyer—but proper planning can save you every time.

“Put your home on the market at a conservative price and put your eye on properties that may work for you,” he says. That way you can avoid letting your home linger on the market at too high a price point. “Well-priced homes will trade quickly in all markets, so move-up shoppers may want to consider taking a haircut on their current place if it gets them the choice needed to lock in their new place."

One option is to take a bridge loan after you buy your home and wait for your old home to sell. Another option is to try to sell your old home first and close on a new home in time to move out. The third option—of making an offer on a new home that is contingent on the sale of your current home— isn’t advised, Hoagland says, because it makes you a less attractive buyer.

“Unless the pot of money is deep and one can afford to close on the new home and then list the old home, either option one or two needs to be prioritized and chosen,” Hoagland says.

Related: Should You Buy a New Construction Home?

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