A Word To Buyers And Sellers...You Can't Make It On Both Ends
A Word To Buyers And Sellers...You Can't Make It On Both Ends...sometimes the obvious needs to be pointed out to those standing too close to the forest. It doesn't matter the condition of the market, you simply can't make money on both ends.
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 Madison or Huntsville Alabama area, why don't you let me Google that for you! I also know outstanding agents in all states and Canada should you need help relocating to a new area.