Selling a home today for the traditional homeowner has been a long and winding road, mainly due to the competition from bank-owned properties and the cut-priced short sales that are dominating the market. What’s so appealing for homeowners now are the multitude of buyers that are flocking to the market. The motivation for the seller will depend on the financial situation and more importantly when they purchased their property. The time of purchase will dictate the ability or willingness to negotiate price and terms. Here’s a look at three types of sellers.
Motivated Seller: This group has owned their home for a while and need to move for health reasons, job transfer,an investment turnover or a move closer to loved ones. They have aggressively priced their home and understand the competition is fierce with the foreclosures and short sales being an attractive option for the buyer. These sellers are easy to work with and are the most market conscience.
Refinanced Too Much: These owners bought before the housing crisis and would be in good shape to negotiate the asking price, except they used their home as an ATM machine with refinancing for vacations and other unnecessary amenities. Many homeowners fall into this category and have little wiggle room for negotiations.
Sellers Living In The Past: These sellers purchased years ago and lived through the run up in prices and the market decline, but still have plenty of equity. These sellers can’t get out of their mind, what his home was worth “at the peak”. His neighbor sold for $500,000 three years ago and therefore feels their home is worth that value. These sellers are testing the market.
Home buyers are now comfortable enough with the housing decline and the lowest interest rates in history to venture into the market. Buyers from all kinds of backgrounds make up the majority of home purchases. Here’s a brief look at the buyers that now make the market tick.
First-Time Buyer: These buyers have determined that this is the right time to buy a home and are looking for guidance and conformation that their decision is correct. These buyers are a pleasure to work with and understand the benefits of buying now.
Long-Term Investors: This buyer has been sitting on the sidelines for the last few years, but know the opportunities are unlimited and want to take advantage before the market turns and the eventual increase in interest rates. They are in it for the long haul.
Speculators/Flippers: These buyers buy a home with the intentions of fixing it up and making a quick profit. They are looking for a rehab property that is or can be bought at below fair market value.
Repeat Buyers: These buyers are considering a replacement home for the purpose of downsizing or the need for more space. They know the nuances of buying and selling a home and are very educated in the home buying process. I have had the distinct pleasure of working with each of these list of diverse buyers and sellers. Each group has their own unique qualities and differences. Please visit my website at www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my other informative blogs and easy access to view local area homes for sale.