For the first time in years, the real estate market is starting to become a seller’s market. This means that potential buyers should do everything they can to understand today’s seller. Not every seller is alike, but in a seller’s market they often share the same method of thinking. Once a buyer understands that reasoning they will be more prepared to deal with sellers and navigate the market productively. Here are some things that buyers should be aware of in regards to today’s sellers.
Many sellers are listing their homes because they have discovered they are in a negative equity position, which is also referred to as being underwater. Many sellers have been putting off selling their homes until the market picked up. They may also have outgrown their existing home and are looking for one with more space, or they may be tired of the long commute back and forth to work. These are all reasons why sellers may have wanted to sell their home, but the value simply wasn’t there. With the market improving many of these sellers are finally ready to list their homes.
Sellers are often in the process or looking at or purchasing a new home while their current one is listed. This means that they are more than likely eager for their existing home to sell. Sellers often use the funds from the sale of their home to purchase another, this tends to make sellers more agreeable when it comes to accepting offers. Because many of these sellers are going through the same process as you are, they tend to understand the process better than someone who is not looking at purchasing a new home.
Even sellers who are not underwater are approaching the market with caution. They know what happened recently and do not want to find themselves in the same predicament as many were when the housing crisis hit. These types of sellers are often not rushed when it comes to selling their homes; however, they are more willing to accept an offer rather than lose the entire deal because they want to get as much for their home as possible.
As a buyer the better that you understand each of these positions the better prepared you will be to deal with each of these types of sellers. When you find a home that you are interested in purchasing, it is recommended that you do some research and find out the motivation behind the sale. Armed with this information, you will be prepared to submit an offer that is fair to the seller and one that you can live with.