Buying and Sellling in a Falling Market

So what do you do if you Have to Sell?

Pricing the home right is the most important first step.  If the home was priced near market value, it usually will sell near list price.  Pricing correctly will bring more potential buyers, and no one knows market values than a saavy buyer.  The majority of buyers tend to not enjoy the negotiating process meaning that pricing correctly will encourage reasonable offers.

It is more ethical to price to real current values, instead of overpricing with the hope that someone might pay the inflated price, or to have room to "come down" for an aggressive buyer.

Sometimes the market conditions prevent you from getting what you consider to be a fair price. One way to possibly overcome this situation is to rent your home and provide an option for the renter to purchase it at a future date for a specific price. This could be a great way to avoid selling your house in a "buyer's market". The concept is known as rent to own or lease/purchase. See Rent To Own Explained.

What to do if you are in the market to buy?

1.  A buyer that is looking for a primary residence should look for a home that they will enjoy and meet their needs, then look for what will have better resale potential.

2.  Have a firm grip of what you can afford, and set yourself limits.  Most buyers always go to the upper limits.

3.  Stop listening to advice from family and friends. Fear that the market will go down further is the reason most people are afraid to commit to a home.  When the market turns back to a seller's market, the deals and the selection will quickly go away.  If you find the right home, and the price is below other similar homes that are comparable then go for it. 

Manatee County, in Bradenton, FL, has been a leader in price increases for the country.  In 2003-2005, home values increased by over 70% across the board, and in some neighborhoods even more.  The rapid increase in prices was brought on by huge influx of investor buyers, and the lure of quick money.  Many people who bought a home in the past 2 years are finding that they may be upside down (meaning that if they sell they may have to bring a check to close).