A Word To Buyers And Sellers...You Can't Make It On Both Ends

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Real Estate Agent with Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL

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.

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  1. Dawn A Fabiszak 12/24/2010 04:33 PM
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Topic:
Home Selling
Location:
Alabama Madison County Madison
Groups:
Agents who want REFERRALS!
Cosmic Cow Pie...The Rome Way
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Tags:
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Comments 23 New Comment

Rainmaker
933,086
Nick T Pappas
Madison & Huntsville Alabama Real Estate Resource
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL

Thank you all for you comments and taking the time to stop by during this busy holiday season.  As many of you know I'm currently on the road visiting Illinois, but will be by your individual posts as soon as I can.

Have a great holiday and stay safe.

And thank you very much to the powers that be for the feature...very much appreciated.

December 24, 2010 02:24 PM
Rainmaker
933,086
Nick T Pappas
Madison & Huntsville Alabama Real Estate Resource
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL

Andrea-I think it's just a different way of looking at the same question...how or where am I making my money.

Vanna-the market is what it is...and you adjust or "shift" accordingly.

Dawn-that would be a yes from me.  Thanks for stopping by.

Pafford Homes-buyers and sellers in the market are used to it being one way...not always easy to change your way of thinking.

Beth-I'd sure like to know how to make it on both ends...bottle it!!!  And thanks for your kind words...have a great Holiday.

December 24, 2010 02:35 PM
Rainmaker
615,869
Dawn A Fabiszak
The Dawn of a New Real Estate Experience!
Keller Williams Real Estate ( Denver metro area, Colorado

Nick ~ congrats on the feature.  It's amazing how many folks would love to be able to do this, myself included.  I am going to re-blog this.  It's fabulous information!

December 24, 2010 04:15 PM
Ambassador
395,533
Susan Goulding
Northern CA - Tracy & Mountain House Real Estate
Crown Key Realty, Tracy & Mountain House Real Estate

Nice Feature - and you are so right.  Thanks Nick.

December 24, 2010 04:33 PM
Rainmaker
995,711
Karen Anne Stone
Fort Worth Real Estate
New Home Hunters of Fort Worth and Tarrant County

Nick:  The concept is very true.  You cannot make it on both ends.  It is just bizarre that people think they can.

I had the same thing come up many times a few years back... when the concept of "mineral rights" was "the thing" of the moment.  There was lots of drilling for natural gas in the Fort Worth area... and many sellers both were adamant about retaining the mineral rights of the home they were selling... but equally insistent on getting the mineral rights of the home they were buying.  It made no sense... but they just insisted anyways.

December 24, 2010 10:42 PM
Rainmaker
933,086

Nick T Pappas

Madison & Huntsville Alabama Real Estate Resource
Call or email me anytime with your questions.
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