Why Selling in a Buyers Market Might not Be as Bad as You Think
November 28, 2006
Post Tags: Selling-in-a-buyers-market , tucson-home-sellers-and-buyers
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It is easy to see how selling your home in a seller’s market is a plus for sellers. You might be surprised to find out how selling in a buyer’s market could be even better in the long run.
Most Home Sellers become Home Buyers.
There are some exceptions:
- The investor
- The second home owner downsizing
- The winter visitor becoming a Tucsonan
- The benefactors of an estate
For the rest of us, once we have sold our house or have it under contract it is time to put on our buyer hats. Most of us already have a pretty good idea where we want to buy and we might even have a house already picked out. At the very least we know the price range and area in which we are looking.
One more situation that will impact your bottom line when selling in a buyers market is where you will be purchasing your next home. If it isn’t in the same area in which you are selling there could be ramifications on how much home you will be able to afford in your new location.
However, if you are selling and buying in the same area I think it is better to be in a buyers market than a sellers market.
Think about this, selling in a sellers market means you might get more for your home than you thought. It might sell very quickly with multiple offers and you as the seller are very happy. Selling in a buyers market can mean longer days on market, aggressive pricing to be competitive and getting less for your home than you thought.
Buyer in a Sellers Market
- No Contingencies accepted
- Few homes to choose from
- Narrow window of time to make an offer
- Rapid Increase in asking prices
- Multiple offers from other buyers
- Take it or leave it attitude of sellers
(They will just find another buyer)
Buyer in a Buyers Market
- Contingencies accepted with offer
- Large number of homes to choose from
- Time to look and think about making an offer
- Asking prices are coming down
(You might buy more home for the same price) - Sellers offering incentives to buyers
I sometimes hear sellers saying, “Well the market will turn around one of these days and then I’ll sell.” That is one of the worst times to sell. You will get less for your home because you rode the market down and when you do get it sold you are now looking at paying more because the market is going up and asking prices are increasing.
As a seller in a buyers market think about these things.
- Price it right for maximum exposure
- Price it right and sell it while the market is going down
- Price it right and put on your buyers hat early
- You might get less than you thought and
be able to buy more with what you get
It is always more fun being a buyer in a buyers market but with some careful planning, research and thought sellers can have a positive experience in a buyers market.
November 29th, 2006 at 8:18 pm
Also if the market is actively declining in value, selling your house and renting for a year or so, and then buying at a market low point could be astoundingly savvy.
Good Post.
November 29th, 2006 at 8:22 pm
Athol,
Thanks for the comment, funny you should mention that, I’m working on a post for tomorrow for sellers to consider the ticking of the two year clock. In some markets the waiting a year might be a good strategy. Our Tucson Market is steadily appreciating and I would want to get my new two year clock started ticking as soon as I could.