|
Home / Finance / Real Estate
Buying and Selling Home in a Balanced Market
By:Andrew Webber
Over the last several years most buyers and sellers have dealt with either a buyer's or seller's market. A buyer's market is what the market is called when there are more sellers than buyers, so the listings take longer to sell and buyers can really shop around until they find exactly what they have been looking for. A seller's market occurs when there are few homes for sale and buyers have a lot of competition for homes. For the first time in a long time, the market is shifting toward a balanced market, where it favors neither buyers nor sellers. When the market is more balanced buyers and sellers need to approach the buying and selling of real estate a bit differently.
Great Tips for Those Buying and Selling in a Balanced Market
Most of the time, those that are selling their home can afford to buy a new home before they sell their old home. In a balanced market this is a very risky move because you may be able to find a home that you like before you are able to sell your home. A balanced market often causes homes to sit on the market for a bit longer, so you should be sure that you can afford to have the home sit on the market for a few months before it sells. When the market is balanced you also cannot count on the selling price of your home, so buying a new home before you sell can leave you in a bad place if you don't have savings to fall back on.
On that note, it's important not to count on a specific selling price in a balanced market. Because homes sometimes take a bit longer to sell, it's important to be open about the selling price of your home if you want it to sell. Buyers are often more picky, so you may have to drop the price of your home if you want it to sell quickly. If you count on the selling price of your first home when you buy your second, you can end up in some serious trouble. For this reason, it is often best to put off buying a new home until you sell your current home.
Another option when you are selling and looking to buy at the same time is make a new buy contingent on the first home selling. This can be a risky move, but if your offer is good many sellers will accept the conditions of your offer. Your Realtor can write up the offer so that you have six months to sell your home before you close on the new home. This will allow you some time to attempt to sell your current home before you officially get in over your head with a new home. Again, it's risky to put this into your offer, but if you are careful it can work for you.
The Bottom Line
The bottom line is that in a balanced market it is risky to buy before you sell. Depending on your specific market it can take months to a year to sell a home, so it's best to wait it out. A good tactic that many people use in a balanced market is to sell your current home first. This will give you plenty of time to decide what sort of home you want, so that you aren't rushing through the home selection process. By the time your home sells you will know exactly what you want and you can go for it. If it happens that your home sells really quickly in the balanced market, that's okay! An interim rental will cost you very little and will allow you to sell and move out of your first home, but continue to keep looking for that perfect home to buy. You will also know exactly how much money you have to put into your new home if you sell first, so you can buy a new home with confidence.
Another option is to sell your home, but allow 30 or even 60 days to close on it so you can take that time to either find a decent rental or find something to buy without rushing. Long closes are often best for all parties, so don't be afraid to ask for a long close to give you and your family time to decide where you are going from here.
Selling first just makes the most sense. Because you don't know how long your home will take to sell in a balanced market and you cannot determine how much it will sell for, it is just the safest route to take. If you are a risk taker, than you don't have to go this route, but most people find that the sell first philosophy works better in the balanced market.
Digg
del.icio.us
Blink
Stumble
Spurl
Reddit
Netscape
Furl
Article keywords: sell house fast, sell homes, house for sales, homes for sale, home selling, sales by owner, buy a house, buy a home, home buying, home loan, mortgage loan, real estate investement, foreclosure, house rent, apartment rentals, home rental
Article Source: http://www.articles2k.com
Andrew owns a website that provides useful tips on buying and selling a home. You can visit his website at: www.buy-and-sell-house-fast.com/. This article may be freely distributed if this resource box stays attached.
|
|
| Top Real Estate Articles |
- 1). When Daddy Moves to an Apartment By : Kyle Thomas Haley
Divorce is hard, there’s no question about it. Not only has your marriage ended but, most likely, your lifestyle is undergoing some drastic changes also. This is especially true if you are forced to leave the place that was home to you and your family.
Depending on your particular situation, you may find that moving into an apartment is your only option.
|
|
|
- 3). The Pitfalls of Selling Your Home Alone By : Andrew Webber
Many homeowners think that selling home alone without the help of a Realtor will help simplify the process and will save them money in the end. The fact of the matter is that selling your home on your own isn't easy work. In fact, you may actually lose a substantial amount of money when you try to sell your home alone because you aren't well spoken in the language and business of real estate.
|
- 4). Flip That House Style Real Estate Investing By : David Neese
I love those TV rehabbing shows like Flip That House. On the show people buy a house needing to be seriously updated and repaired. Usually the kitchen is heavily upgraded with new cabinets, cutting edge appliances, new countertops and more. The bathrooms are completely redone with new tile, tubs, showers, sinks and more. The living rooms and other areas usually have walls taken out to open up the floor plan and usually carpet is replaced with some type of hardwood flooring.
|
- 5). Where Real Estate Investing and Speculation Collide By : Bruce W. Ford
Some uninformed folks would describe someone who rehabs distressed property as a "speculator" or even a "property speculator." Don't be fooled! There is a VAST CHASM of difference between rehabbing and property speculation.
Let me explain. According to Dictionary.com, the definition of speculation where business is concerned is:
"Engagement in risky business transactions on the _chance_ of quick or considerable profit.
|
- 6). How To Find A Real Estate Agent By : Steve Gillman
It's easy to find a real estate agent. Just put a for sale sign in the yard and wait for the phone to ring. The question is, how do you find a GOOD real estate agent? You can start with newspaper.
Pick up the Saturday or Sunday paper - whichever day they have all the homes for sale in your area. You can also collect a few real estate guides to look through.
|
|
|
- 8). Relocating to Tampa Bay A Great Place to Call Home By : Kael
Its no wonder that Florida’s Tampa Bay area has become such a popular choice for relocating adults and families to call home. The west coast of Florida has mile after mile of white, sandy beaches and magnificently, beautiful natural resources. These areas include the city of Tampa, Clearwater, St. Petersburg, as well as Palm Harbor, Tarpon Springs and Oldsmar.
|
- 9). Real Estate Rentals - Selling For More By : Steve Gillman
Selling real estate rentals isn't like selling houses. You can paint a house, and get a little more because it looks nice. Rental properties, especially larger ones, are different, because they're bought by investors, who look at income more than new paint. Raise the income, and you increase value to investors.
Time to learn about capitalization rates.
|
- 10). New Hampshire Real Estate – Switzerland of America By : Raynor
With soaring mountain ranges, New Hampshire is often called the Switzerland of America. Fortunately, New Hampshire real estate prices compare favorably to Switzerland.
New Hampshire
New Hampshire is a state with beautiful scenery that takes on the full effect of each season of the year. Spring and summer are tailor made for fishing, hiking and water sports along the state coastline.
|
| New Real Estate Articles |
|
|
|
|
- 3). Why Real Estate By : Kris Koonar
When you look at the lists of the wealthiest people in the world, most of the names there have one thing in common. They are all massive property owners.
|
|
|
|
|
- 6). Tips for Successful Investing By : Kris Koonar
One of the quickest paths to financial freedom and security is through the world of real estate investing. Millionaires and even billionaires have been made on the real estate market
|
- 7). Moving In Your New Home By : Jonathon Hardcastle
Now that the paperwork belongs to the past and the movers have left leaving you alone to admire your new property, it is time to sit down and list all those things you will have to do before being able to relax on your couch or back yard and admire your new possession.
|
|
|
- 9). Real Estate Marketing Reports; Instant Web Site Content By : Lanard Perry
It can take months, and in some instances years to personally write enough web site copy to have an effective, lead generating web site. On the other hand, you can purchase volume content for pennies on the dollar and upload it to your web site in minutes. So, why settle for adding a page 1-2 times a week when you can add hundreds of pages whenever you want to.
|
|
|
|
|
