The Advantages of Selling in a Buyer's Market

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Selling in a buyer's market has a few clear advantages that can't be overlooked. Learn about the advantages of selling in a buyer's market with help from a managing broker with Windermere Real Estate in this free video clip.

Part of the Video Series: Real Estate Questions
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Video Transcript

Hello, Jim Jacobsen with Windermere Real Estate. I'm a managing broker here in Seattle, Washington and the question comes up the advantages of selling in a buyer's market and that's really kind of a loaded question because you have to look at each client specifically and what their needs are and their desires. So example, the advantage of selling in a buyer's market is I might be forced to sell because I've been transferred on my job and we also look at how are we going to be able to sell this property, are we going to be able to sell this property and get cashed out or are we going to have to take a real estate contract or seller financing or are we going to have to sell short, all these questions are what have to be done in a client consultation. So I want to just take an abstract and just say I'm selling in a buyer's market and let's say I'm in an equity position because you really have to take every instance by itself. So I bought a home for $300,000 you know, 15 years ago and maybe that house is worth $450,000 today. Well, you know, it's not worth the same today as it was four or five years ago but depending on what I'm going to do with the monies will determine whether or not this is a good time for me to sell or not. If I'm going to go out and buy another property of at least my value or greater, it's advantageous to me also because if I'm selling a property for less than it was worth five years ago and let's change the numbers around a little bit, let's say five years ago the house was worth 450 and today it's worth 350, well, and I've still got equity in the property but if I'm going to go out and buy something else at let's say 400 or 425 or higher, I haven't really lost anything, it's all relative. What I'm buying is going to be worth more than it was five years ago also. I'll give you another example. I have a client that bought a property in 2001 for $80,000 and the value of her unit has depreciated or gone down by $20,000 and you say, oh poor me because you know I'm losing that $20,000, I've lost $20,000 on this deal. Well the truth of the matter was in her case she wasn't losing anything at all because she was able to buy a unit in a stronger area for her at a place she really wanted to own five years ago but couldn't afford. So although she lost $20,000 on the unit that she sold, the unit that she bought was worth $175,000 more five years ago than it was today. So obviously the comparison of I'm losing $20,000 and gaining $175,000, the net difference is really relative to numbers, $155,000 gain for her. In any event, this purchase wouldn't have happened if we weren't in the market of being a buyer's market.


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