While this does not apply to all sellers, many sellers can take advantage of today’s market. Sellers who have high levels of equity are in excellent position to capitalize on the current real estate market. How, you say?
First you have to retrain your sellers to think differently. During the land boom sellers might have gotten several offers and many times they would end up getting full asking price and sometimes more than asking price. As this became common place, sellers would turn down a lot of offers because they were seeing other sellers get full asking price offers and the property was not on the market very long. Now that we are in a down market sellers still have not changed their way of thinking. They are still turning down those initial offers hoping for that higher offer because they do not want to miss out by selling too soon.
However most times a higher offer never comes and they end up lowering their price and many times accepting an offer that is even lower than previous offers. Sellers need to realize that they need to capitalize when they can in today’s market because buyers are more scarce. Also, even though they may be selling at a lower price than they would have a few years ago, they will also be able to buy a replacement property at a lower price than they would have paid a year few years ago. Smart sellers can sell their property and then capitalize by purchasing land, farms, and ranches at significant discounts especially if you find a seller who passed on the first few buyers and now are anxious to sell.
Buyers have much more bargaining strength in today’s market. However, many of your would be buyers need to be freed of their fear to act so they can capitalize on the buyers they are able to attract and become buyers themselves to take advantage of the opportunities that are available now.
