Depending on the market…it can be better to be a buyer than a seller. But…sometimes you HAVE to sell…and sometimes you NEED to sell…and sometime folks just WANT to sell.
What are the different kinds of markets? There are a million different answers to that. At least dozens… ;)
During sellers’ markets, homes sell quickly and sellers have a lot of pricing power. As a result, prices rise more rapidly than at other times. During buyers’ markets, homes could be on the market for quite a time before selling, so sellers become more anxious and likley drop their prices.
The market is determined by supply and demand. In the business of real estate, the relationship between supply and demand is calculated as “inventory.” At the current sales pace, one must determine how long would it take to sell the total number of houses available on the market. That is how the real estate industry measures inventory.
Inventory is mostly measured in weeks and months. Longer inventory times are associated with buyers’ markets. Shorter inventory periods are associated with sellers’ markets. Some buyers and sellers hope to time their purchase to take advantage of market cycles.
But this is not always the way it happens in the “real world”. Sometimes people just HAVE TO make a move. Divorce, illness, job loss, change in family size and job transfers are a few reasons that people MUST move.
So…let’s talk about the selling process TODAY.
The first thing we MUST address is distressed sales. Today, in late 2011, 60+% of our sales are distressed. Meaning they are short sales or foreclosures.
What is a short sale and how does that work? I have written an entire tutorial on that you can read here:
How is a short sale different than a foreclosure? Read here.
What kind of home so buyers WANT to purchase…well…it depends on their specific situation. Many folkd have defined deadlines that need dot be met. If that is the case a short sale may not be for them. Some people want a “move in ready” home. If that is the case…it may or may not be a short sale or a foreclosure.
