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
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Ambassador
1,796,617
George Souto
Your Connecticut Mortgage Expert
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut

Nick well put, unfortunately many Sellers seem to think that everyone is just waiting out there to give them more than their house is worth, and that they can turn around and buy a house for far less than it is worth.  They need to read this and be brought back to reality.

December 22, 2010 11:16 PM
Rainmaker
980,469
Nick T Pappas
Madison & Huntsville Alabama Real Estate Resource
Assoc. Broker/Broker ABR, SFR, e-Pro, @Homes Realty Group, Huntsville AL

George, I appreciate your comment...when you talk people listen!

December 22, 2010 11:37 PM
Ambassador
896,941
Andrea Swiedler
Realtor, Southern Litchfield County CT
Berkshire Hathaway HomeServices New England Properties

Nick, I think this is one of the biggest problems we face these days. I cannot understand this, but the reality is, many sellers just don't understand that they may sell lower than they wanted to, but will buy low also. It is a mystery to me.

Great post!

December 23, 2010 07:12 AM
Rainmaker
74,182
Vanna Siackhasone
Anchorage Real Estate 907-720-4663
Real Estate Brokers of Alaska 907-720-4663

Nick, you are absolutely right. it's important for buyers and sellers to remember what their goal is and to understand that if they are move up buyers or even downsizing that the market is the market and that they would be benefiting when buying even though they may be getting less than what they had hoped for on their home.

December 23, 2010 02:02 PM
Rainmaker
261,251
Dawn Crawley
Find Pinehurst Homes
Dawn Crawley Realty

So it really IS all about supply and demand!

December 23, 2010 06:22 PM
Rainer
30,113
Phil & Celeste Pafford
Corona Short Sale Broker
PaffordHomes.com, Corona CA

I "try" to get our sellers to understand, while they may not be making the profit they "want", they are also not paying as much for their new home... they seem to forget this little gem of info!  ;-)

December 23, 2010 08:03 PM
Rainmaker
390,932
Elizabeth Cooper-Golden
Huntsville AL MLS
Huntsville Alabama Real Estate, (@ Homes Realty Group)

Nick, What a wonderful post.  SO true!!!!   "You can't make it on both ends".  Amen my friend, Amen!

December 23, 2010 11:20 PM
Rainmaker
390,932
Elizabeth Cooper-Golden
Huntsville AL MLS
Huntsville Alabama Real Estate, (@ Homes Realty Group)

I forgot to say "Congratulations on the feature"!!!!  Yea!!!!

December 23, 2010 11:21 PM
Rainmaker
558,659
Chris Olsen
Broker Owner Cleveland Ohio Real Estate
Olsen Ziegler Realty

Hi Nick -- Totally agree. What may seem obvious to us isn't always obvious to a consumer.  Even if it is, we earn our keep by providing exceptional advice and guiding our clients to a successful conclusion.

December 23, 2010 11:36 PM
Rainmaker
818,627
J. Philip Faranda
Broker-Owner
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY

This is the sort of bog that is a must read for anyone considering the "move up" who is facing getting hammered on their sale and then wants to buy another home. 

December 24, 2010 04:37 AM
Rainmaker
552,628
Scott Fogleman
Witt-Fogleman, Inc. - Bedford, Lynchburg, and Roan
Witt-Fogleman Team 434-941-8847

So true and so many people are waiting for the price of their home to "return".

December 24, 2010 06:37 AM
Rainmaker
891,596
Michael Setunsky
Your Commercial Real Estate Link to Northern VA
Michael's Commercial LLC

Nick, so true! The seller need to put them self in the buyers shoes. Thanks.

December 24, 2010 09:27 AM
Rainer
214,957
Diane Williams

Nick, a nice post that states the facts as they are.  All sellers should have this post in their listing package.

Congratulations on the feature post.

I hope you and your family have a very Merry Christmas!

 

 

December 24, 2010 09:36 AM
Rainmaker
87,937
Scott Petersen
Client First, Realtors - Canton, MI

Isn't it human nature to have it all. Thanks for bursting the bubble that we can't. Merry Christmas.

December 24, 2010 12:35 PM
Rainer
136,154
Brent & Deb Wells
Your Collin County Realtors
RE/MAX Four Corners

Nick,

Your right on the money. Consumers have been conditioned to get 0% car loans, 40% off retail items, easy payment terms and any other gimick to sell product. Homes are a completely different animal. We as agents need to take the time to explain to our clients what to expect in every aspect of their transactions. Helping them see the value of moving up in this economy will let them realize what a great deal they are getting.

-Brent


December 24, 2010 12:52 PM
Rainmaker
980,469
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
980,469
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
631,848
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
410,685
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
996,044
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
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Rainmaker
980,469

Nick T Pappas

Madison & Huntsville Alabama Real Estate Resource
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