No matter what part of the country you’re living in, the real estate market will be in flux. If it’s a buyer’s market and there are lots of homes for sale, it’s good for buyers but not quite so good for home sellers.
This is the time to buy a home. Buyers who do this and then happen to sell when the market pendulum swings to the other side make lots of money. If you can catch the market at the right time, your detached home, condo, or manufactured home will yield a good profit. High interest rates, recession, a local employer shutting down or cutting back on its workforce are some causes of a buyer’s market. In fact, anything that affects the local housing market negatively or seasonally can cause a short or long-term buyer’s market. In this type of market, prices and terms soften. Sellers are more willing to pay buyer concessions to get their home sold. Typical concessions that buyers often get sellers to make are: paying all or part of the closing costs, accepting low offers, throwing in appliances or fixtures, and giving carpeting or painting allowances.
It’s a great market if you want to buy, but not if you have to sell, as Mark and Rachael found out when Mark’s employer consolidated branches and moved his office to another town. That left Mark and Rachael with two choices, either sell and relocate or find a new job in an economically down area. They decided to accept the relocation and sell their three-year-old home. Because they had recently refinanced their mortgage and paid off a few credit cards, Mark and Rachael had little equity left. They had no room to pay concessions or lower their asking price. They were in a financial corner with few options that wouldn’t cost them thousands of dollars in the months ahead. In the end, they had to rent their home to cover as much of the mortgage payment as possible. Eventually, they hoped the market would improve so that they could sell the home for what they owed.
This is the time to buy a home. Buyers who do this and then happen to sell when the market pendulum swings to the other side make lots of money. If you can catch the market at the right time, your detached home, condo, or manufactured home will yield a good profit. High interest rates, recession, a local employer shutting down or cutting back on its workforce are some causes of a buyer’s market. In fact, anything that affects the local housing market negatively or seasonally can cause a short or long-term buyer’s market. In this type of market, prices and terms soften. Sellers are more willing to pay buyer concessions to get their home sold. Typical concessions that buyers often get sellers to make are: paying all or part of the closing costs, accepting low offers, throwing in appliances or fixtures, and giving carpeting or painting allowances.
It’s a great market if you want to buy, but not if you have to sell, as Mark and Rachael found out when Mark’s employer consolidated branches and moved his office to another town. That left Mark and Rachael with two choices, either sell and relocate or find a new job in an economically down area. They decided to accept the relocation and sell their three-year-old home. Because they had recently refinanced their mortgage and paid off a few credit cards, Mark and Rachael had little equity left. They had no room to pay concessions or lower their asking price. They were in a financial corner with few options that wouldn’t cost them thousands of dollars in the months ahead. In the end, they had to rent their home to cover as much of the mortgage payment as possible. Eventually, they hoped the market would improve so that they could sell the home for what they owed.
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