Real Estate Terms vs Price by Lazaro Dinh.
In real estate, there are times when you must decide between terms or price. Which of the two is more important for the transaction at hand?
They say in real estate you make your money when you buy not when you sale and it took a while for me to realize the meaning of that sentence. There are times when price is the driving factor for me to purchase and there are other times when terms makes a deal happen for me. In the end you must analyze if it is a Buyer’s market or Seller’s market when you are ready to make a move on a property so that you can make your offer to buy accordingly.
How to Determine If it’s a Buyer’s Market vs. Seller’s Market
The real estate market goes up and down depending on the season. There are usually a lot more homes for sale in the summer months (June — August) than any other time of year. That means that it could be a seller’s market in the winter but a buyer’s market in the summer. In a Buyer’s market price is the deciding factor for me and I can usually get the best cash price deal, In a Seller’s market the terms of the deal is the driving factor for me. Whether it’s a buyer’s market or a seller’s market also depends on the area. Cities with a lot of available jobs and growing industries will often be a seller’s market, while those with struggling economies will be a buyer’s market.
One way to determine if it’s a buyer’s market or a seller’s market is to look at inventory, or the number of homes for sale. If inventory is low, it is most likely a seller’s market. In a Seller’s market, price will not be the driver of the transaction; terms will probably be the closing factor because when you cannot get the price you are looking for but really want to purchase that property terms may be the solution to the problem. The terms of the transaction such as rate, term, down payment or Seller’s credit to Buyer can persuade a Buyer to buy in a Seller’s market.
If you find yourself selling in a Buyer’s market, remember to try terms such as owner financing, lease to buy or Seller will pay for closing costs. These are terms that can make your listing stand out from the others and bring you a qualified Buyer.
For information about this article please contact.
Lazaro Dinh
Dinh Consulting LLC
reodocket@gmail.com
