Selling a home in a buyer's market makes most sellers question if their decision is going to cost them money. In Atlanta, our market hit its peak over 3 years ago and many seller's are on the fence whether to sell or not. Let's look at a few different scenario's. The first is the seller looking to move in the same general area and is looking for a home in the same price range as the home he is trying to sell.
This seller is going "lose" money (in their mind) on the sale of their home, but the home they purchase for the same amount of money was a much more expensive home 3 years ago. In this scenario, buying in the same market in the same time frame is a wash even with the perceived loss on the sale of the seller's home.
The second scenario in selling a home in a buyer's market is the move-up buyer. This is the best scenario that can happen as you take advantage of a down market. For example, lets say you owned a home that was worth $300,000 during the market peak and now values have dropped 20% and the market value is (selling price) $240,000. That is a $60,000 loss in the mind of a seller. After selling his home, he is now buying a home that was worth $500,000 back in the market peak, but since values have dropped 20% it is now worth (purchase price) $400,000. The difference between what he sold his house for and what the new home was purchased for is $160,000.
If the seller would have sold during the market peak and received top dollar for his home $300,000 and then bought the new house at the market peak of $500,000 then the difference would be $200,000. In this scenario the seller actually saved $40,000 because of a down market. If you are in this situation be happy you have the opportunity to take advantage of the down market and be able to save some money.
After seeing the benefit of moving up, the final scenario in selling a home in a buyer's market is downsizing. Obviously, downsizing would not be the best scenario for saving money in a down market. Sometimes you have to consider more than what you will net with the sale of the home and decide what is best for your situation at the time. Downsizing can create a smaller payment, less taxes, lower utility bills and less home to maintain if moving is a must.
In my service area, the majority of homes sold are still non-distressed homes and the smart sellers have figured out many buyers will pay for properly priced homes that are in move-in ready condition. Many buyers do not want to hassle with the process or uncertainty of a foreclosure or short sale.
How you get top dollar in this market is a question many sellers ask. Most homes expire for 3 reasons in a buyer's or seller's market: price, condition or marketing . The sellers that are successful are listing their homes at market value, are in move-in ready condition, and have a Realtor that has an aggressive marketing plan.
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About the Author: The above Real Estate information on Selling a Home in a Buyer's Market was provided by Mark Mitchell. Mark can be reached by phone at 404-353-0185 or via e-correspondence at mark@markmitchellhomes.com. Also visit www.johnscreek-homes.net
Copyright © By Mark Mitchell 2010 *Selling a Home in a Buyer's Market *
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