The Third Real Estate Market!

What is the Third Real Estate Market?

The Seller/Buyer Market.

The tightening of a real estate market creates an opportunity for homeowners who have 1- Been thinking about making an upward move and 2- has lived in their home on or before the first year of the recent real estate expansion. An example, your local market became a Seller's market 4 years ago and you either bought in the first year or didn't sell during the Sellers market cycle, the market has now tightened to a buyers market and pricing are in decline or have declined.

This seller has to overcome some issues about the immediate market area to make this market condition work to their advantage. First they have to "get over" the fact the their neighbors 2 doors down or on the next street sold their homes for a lot more, one, two three years ago. The next condition of being a Seller/Buyer is, the move you make most be upward ( I've had several people contact me in the past few months wanting to cash out and downsize, I've suggested that if they don't have to move, they should wait the market out until it becomes more of a sellers market, because this is all about leveraging). There I've said it, this Seller/Buyer Market is about leveraging, it causes the seller to sell in a down market, not making as much as they might have in the previous seller's market but gives them the advantage of buying in the lower market and being "positioned" to take advantage of the next upswing in future markets. Equity build up is all about percentages so if you sell a home at 200,000.00 and buy at 300,000.00, 5% appreciation on the 300,000 is $15,000.00 vs $200,000.00 which is $10,000.00 a 33% increase in dollar equity. 

Some people will say "what if the market doesn't recover"? Well if real estate doesn't recover then I would question that an economy would recover so would it matter? In the 35 years I have been in the real estate industry, real estate always seems to lead a down economy to recovery because it creates more jobs in more industries.

So if you are a homeowner that fits this profile is it time to make that move, if in St Louis give me an email and lets talk?!