January 30th, 2013
In his Zillow blog post “3 Things Home Buyers Should Know About Today’s Sellers,” Brendon Desimone explains that it’s important for buyers to understand the mindset of sellers to make the process easier on both parties.
Desimone says there are three qualities that many sellers these days share:
Many homeowners are in negative equity. According to Zillow, 28 percent of homeowners will a mortgage are underwater, meaning they owe more than the home is currently worth.
Because of this, many, many sellers have put off selling their homes because they couldn’t afford to take a hit. Now that home values are rising, sellers who have been waiting to at least break even now have their chance.
Potential buyers will find that sellers aren’t being overly greedy these days with their asking prices. Many will be happy to make just a small profit if it means they can finally move on.
Sellers are usually buyers as well. If you’re scrambling to take advantage of low interest rates and home prices, you’re not alone.
While some sellers go on to rent, many are looking to buy a new home as soon or, or while, they sell. What that means for you is that you want to act quick and get pre-approved so the process can move as quickly as possible for both you and the seller.
Sellers are feeling cautiously relieved. Even homeowners looking to sell who aren’t underwater know that the market is still vulnerable.
As Desimone puts it:
“Sellers aren’t the same as they were around 2005, when many were driven by greed as the market’s rise seemed endless. They’ve just weathered the worst real estate market crash in decades, so don’t go into this market, which is very different from even six months ago, assuming sellers are looking to take advantage of you. Don’t let your real estate agent convince you that’s the case, either. Even though you might think they have a hot property that will sell quickly, the seller is usually willing to negotiate. They may even be grateful to receive a reasonable offer, especially if it at least comes close to the value their home had before the crash.”