Many a seasoned home owner will agonizingly recount the opportunities that were missed through those wicked “Buyer” markets when values tanked and under-water, cash strapped Sellers needed to sell. Even a Southern California homeowner will tell a story or two of rock bottom prices, painful interest rates and market killer, impossible lending practices. “Doom and gloomers” come and go. The intrinsic long-term values and prices of real estate and home ownership remain.
Over the past several years of a Seller’s Market (not to be confused with the current almost 9-year appreciating market), individual home ownership percentages have actually decreased. As one result, there are statistically fewer first time Sellers. The ramifications of this trend is subject for another time along with addressing of the challenges to our real estate industry.
Here are the opportunities, mind sets and strategies to best advantage the transitional market.
A transitional market, first, is an opportune time to make moves and for many first timers Buyers and Seller to invest/move up and/or “get wet.” I know this is contrary to Sell at the peak and Buy at the bottom. For you wunderkind, keep procrastinating.
Given there are Buy and Sell “deals” in every market. If you question that, read on…. Then call me.
Here are the top 5 ways to prosper and profit in a transitional market. The following are meant for Sellers, who are pursuing purchases in a particular market area (i.e. the Westside)
- Define your reason for selling and commit to it: Move-up. Down size. Build long term equity. Move out of area altogether. Alternately, consider keeping your home for investment and commit to managing your asset for fun and profit. The “what if” options can offer creative and exciting changes.
- Define realistically, “a deal”. Understand the long term value proposition. In the Los Angeles market that is a relatively high percentage scenario, If you are a flipper, however, you may need to look at different market areas for the short term profits; that is your number one consideration. Transitional markets are uncertain and harder to forecast turnaround time tables and realize ROI.
- Make your home move-in ready. Maximize the emotional value. Make the investment to sell, even upgrades should be carefully considered. Buyers will value your care and appreciate the better dollar investment.
- Hire a professional agent who clearly understands your goals and can develop a plan to move those real estate objectives forward. As important as the sell-side marketing strategy, is the buy-side strategy to purchase. When your listing agent can’t or won’t manage both sides, find another agent, one who is centered on your goals and can deal with the timing and the intricacies to construct a win-win scenario. Your agent is your fiduciary representative and market expert. More than ever, a transitional market will demand and reward the strong agent/client relationship.
- Accept and capitalize on the Sell low/Buy low market cycle. If you are selling for upgrade or Selling to free cash to invest,) now is the time to look at buy opportunities. Pursue the upgrade locations. You will sell and buy “horizontally.” Your home has most likely spiked in value and prices have leveled off or beginning to drop. Accept it: Because so has your neighbors and in those homes in “upgrade” locations. Buy location. Set your sights on better locations. Where do you want to live? Where do you want to invest? Marginal locations (busy streets, less desirable neighborhood and street locations, etc.) will take even steeper price drops.
While others sit on the sidelines, sell and invest in your future with a contrarian mindset, and a transitional market can be rewarding
Connect with me or more strategies on how to Sell and prosper in this transitional market.