BUYING AND SELLING IN A BUYERS MARKET
September 2007

Ask most anyone and they will tell you a gloomy story about the current real estate market; something they have heard or personally experienced. Their perception is that it is a buyers market and a terrible time to sell your home.

The truth is there is a way to take advantage of this market, especially if your family’s changing lifestyle means it is time to move to a larger home.

It could be easier to understand and accept this change if we hadn’t been in a strong sellers market for so long. We get familiar with how things work and when they change we sometimes think of them as bad; when in reality they are just different. It requires viewing from a new angle.

Home prices have decreased in many brackets, this was mostly from too much supply and weakened demand. But, prices in general are relative across the board. For example; if the market pushed prices down 15%, than a $200,000 house would sell for $170,000 and a $300,000 for $255,000. Move up buyers would receive a benefit of $15,000, a loss of $30,000, and a gain of $45,000.

Those making a lateral move would most likely experience neither a loss or a gain. Depending on the price bracket, those who move down in this market may experience a financial disadvantage.

Buying and selling today can be just as easy and even more opportunistic than it was in the past; but a complete understanding of why, where, when, and how to proceed is necessary before a plan can be implemented.

We invite you to call 605.359.4100 anytime.