If It Is Great for Buyers, Then It is Not Great for Sellers

Posted by Lise | Filed under: Buyers

A Word To Buyers And Sellers…markets are like see saws … It doesn’t matter whether it is a buyers’ market or a sellers’ market. Someone is going to be unhappy.

In a balanced or trending up housing market sellers expect to make a profit or fair return on their largest investment…their home.  In a sellers market demand is high and inventory is low in turn raising overall home prices and the seller can expect to do well as the buyer will be paying the higher price that competition for fewer available properties brings.  There is less motivation for a seller to jump at lower offers, homes in need of cosmetic sprucing up or updating sell much easier with the buyers willing to do or pay for that work to be done.  In a sellers market, buyers are less likely to ask for more closing costs be paid by the seller.  So in this scenario the seller will get more money for his home and as sellers this is what we want…to sell higher than we paid. However, we will in turn pay more money for the next home, so on the buying end we’re not doing as well…unless moving out of area or state where housing is less expensive.

In a market with high inventory and few buyers…a buyers market…it’s just the opposite.  Buyers have a large inventory of homes to choose from, they can be picky, asking for sometimes an unreasonable amount of repairs or cosmetic work to be completed, low ball offers are more common and negotiating more closing costs to be paid by the seller there by getting a great deal on a new home.  And in this scenario the buyer does well getting a great home for a bargin price. Of course if that buyer had a home to sell then they too were faced with a buyer that got their home for a great price.  You can’t make it on both ends.

So look at it in reverse of the way you are used to.  Instead of buying and waiting for appreciation to pay a dividend when you sell…you are selling your home for less but you are also buying your next home for less and at historic low interest rates…you could be buying more house under better terms than your last home.    Taking advantage of the low rates and lowered housing prices will more than make up for the lower selling price of your home in a down market.

If you need a knowledgeable real estate professional in the DC METRO AREA , why don’t you let me create a personalized research for you to find those perfect Bethesda homes for sale or perhaps a condo in trendy Shirlington! I also know outstanding agents in all states and Canada should you need help relocating to a new area.

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25 Responses

  1. jorge says:

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    ñïñ!…

  2. Ruben says:

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    ñýíêñ çà èíôó!…

  3. Frederick says:

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  4. Gene says:

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    good info!…

  5. Aaron says:

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    thank you!…

  6. marion says:

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  7. Alexander says:

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  8. Jeremy says:

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  9. dustin says:

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  10. Sam says:

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  11. John says:

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  12. louis says:

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  13. ken says:

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  14. Mathew says:

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  15. raymond says:

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  16. troy says:

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  17. alexander says:

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