What Kind of Seller Are You?

The Seller Who Is Buying Another Home

This seller is in a great situation because they are not taking their equity out of the market! They may have to sell at a discount to get their home sold but they will also “buy” their next home at the same discount so they aren’t really losing any money at all if they have to take a price that is less then they’d hope to get. I had a seller once say to me… “I will just wait for the market to get better.” I said, “Great! I’m glad you realize that the market is cyclical and that you understand home prices will increase again in the future… my only question is this… What home would you like to wait in… this home or your new home?” I went on to explain to the seller that they would indeed see home values increase again but waiting for the home they buy to increase in value… or waiting for the home they have to increase in value… is simply a choice with no financial impact at all.

The Seller Who Is Buying A More Expensive Home

This seller is in the best situation possible! Higher end homes tend to lose value much faster than lower end homes during a correction. Higher end homes also tend to appreciate much more during an appreciating market. The seller in this example wins on both ends.

The Seller Who Is Cashing Equity Out Of The Market

This is a seller who has to sell in today’s market without a chance to wait 3 or 4 years for better prices to return. With prices continuing to drop, the bottom line is that they need to cut their losses… immediately. It is simply a function of a bad price now… or worse price later. The problem is that most homeowners are not familiar with the idea of a “stop loss.” They too give in to their “emotions” and lose more and more of their equity by waiting and hoping.

The Seller That Cannot Sell In Today’s Market

This is a seller who does not have the ability to sell at today’s prices. If you can’t cash enough equity out of the home to buy the next home or you don’t have enough equity in the home to sell at today’s prices then staying in the home may be the best option.

Contact Drew

Drew Seargent, Arizona Realtor