The traditional seller today has a lot on their platter prior to marketing their home. Most owners start weeks or months in advance researching the market trends and sizing up the competition. Your realtor can be a source of valuable information and knowledge. The pre-listing period gives the homeowner a chance to exhale and gather data that will help determine the type of buyer your property attracts. The old adage ” there’s a buyer for every home” still carries weight in today’s real estate. Here’s a summary of the type of buyers that now control the market and what a seller can expect when negotiating with these contrasting personalities.
All Cash Buyers: Even with interest rates at historical lows, there are still all cash purchasers on the market. Many of these buyers are investors taking advantage of the plummeting prices or the limits on the outstanding number of loans investors can carry. Some all cash buyers sold their home and were able to purchase a replacement home without obtaining financing. With no loan or appraisal contingencies, these all cash buyers realize how attractive their offers are and expect major price and term concessions from the seller.
FHA Buyers: The polar opposite from the cash buyer. Some of these FHA programs allow buyers to purchase a home for as little as 1/2 percent down. These buyers have to occupy the property. FHA requires all amenities in the property to be in working order and an “as is” home is virtually impossible. Sellers have to be cognizant of any defects in the property and a quick closing is not likely with this buyer.
First Time Buyer: More of these buyers are now active on the market and are taking advantage of the low-interest rates and home prices. The lower end and mid range priced homes have been attracting these consumers. To ensure a smooth process, sellers should be patient and prepare themselves for a litany of questions and the possibility that small issues with their home will be magnified in the eyes of the first-timer.
Empty Nesters: This crowd has owned a number of homes in the past and want a home that might be the last. They are shrewd and wise, but understand no home is perfect. They are normally looking at downsizing and smaller one story properties or condos are the preference. Since these buyers have owned a home before, sellers can expect an easy process with the empty nester.
Bargain Hunters: Just as the name suggest, a bargain captivates this buyer. Patience is a virtue is their motto and they will wait until the right home falls in their lap. These buyers are focusing only on properties that are priced below market value. This is the least desired buyer because it probably means the sellers are dealing with their own personal or housing repair issues. Sellers should familiarize themselves with each type of buyer, more than likely, you’ll be dealing with one of these buyers in the future. Please visit my website 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 in Davis, California and the surrounding communities.