Deja Vu~Buying/Selling Simultaneously in a Buyer's Market vs a Seller's Market (What a World of Difference!)
It's the Home and the Area
The "right" home and neighborhood is absolutely critical to long term quality of life. The right home is best sought in a Buyer's Market. Not only is the selection of homes greater, the number of competing buyers has been artificially reduced. Highly qualified buyers sit out a buyer's market due to internal fears from external forces, (e.g., friends , family, co-workers accompanied by gloomy media reports). Other capable sidelined buyers are actually sellers waiting for home prices in their neighborhood to..."bounce back" Flawed thinking at best.
The Transaction and Condition of Properties
Homes for sale are in their best condition in a Buyer's Market. Some sellers want to make their home more marketable. When that seller becomes a buyer and a seller in a Buyer's Market, they usually will have their home in good condition, as is often the case with the home they are buying. A Buyer's Market frequently allows the trading-up or trading-down Buyer full contingencies across the board! Including but not limited to, condition of the property, financing, appraisal, disclosure and "sale and close" of buyer's home contingencies!
Consumer-Protection Equals Risk-Management
Real Estate Attorneys are swamped with unhappy buyer clients after a Seller's Market. Not the case after a Buyer's Market! Slow or balanced markets as a rule produce homes in better condition that are sold with more disclosures, inspections, and contingencies. These transactions usually allow proper time for buyers to review and investigate before removing each contingency. It's hard for real estate attorneys to put their kids through college when all those events occur. The chances of these sellers hearing from unhappy buyers after close of escrow, have been greatly reduced.
Buying and Selling in a Seller's Market (all bets are off)
Removing or reducing proper procedures that are intended to facilitate smooth transaction and provide legal protection for everyone involved. Everyone; Buyers, Seller, Inspectors, and Agents. What's the Difference between Ignorance and Stupidity? Knowing Better. Agents should know better. They don't. I refer to it as "Agent Driven." Listing agents convince their sellers that fast and loose transactions are the norm. All the long standing proper safeguards experienced in a Buyer's Market ~ gone. These Listing Agents actually increase the legal exposure of the clients they are hired to protect. After all, it's disgruntled buyers dissatisfied with their treatment who file lawsuits, after a fast moving market cools.
The Price and Interest Rate
Some buyers/sellers wait for the best interest rate and/or price lest they "leave money on the table." Regardless of why they waited, they always miss the point and many times a full-fledged Buyer's Market. Expect these unsatisfied homeowners to move more often than the savvy buyer/seller that made all the right moves ~ during a Buyer's Market.
When a Fantastic Price is Not Good
When one plans to buy and sell simultaneously in a seller's market, they receive a lofty price and get to do like-kind as a competing buyer. Only, more often than not, it won't be the "right" home and/ or in their chosen neighborhood. Why? Because prices of the limited numbers of homes in that preferred area have "shot through the roof." Image that. Plus, these buyers often have to move twice, selling their homes and renting before being taken seriously as a "competing buyer." Not always the case in a Buyer's Market!
When Interest Rates go from Phenomenal to Excellent to Great to Good
Savvy buyers and especially ones also selling know that while interests rates play a role in their purchase, it is one of many, many factors. These buyers know that a well conditioned home of their choosing in the right area is the priority. They also have full contingencies at a Buyer's Market price and move once. Add-on a properly executed contract, a smooth transaction more often than not, and a welcoming walk-through at close of escrow. Buyers and Sellers shaking hands at the end of a transaction? Only in a Buyer's Market.
Reducing the Complicated to the Simple
Many licensees have fewer than 5 years in the business and have never handled concurrent sales and therefore discourage the idea. Just as many licensees do not possess the negotiating and issue-spotting skills needed for a positive outcome. Regardless of the market, only a pro will reduce their client's legal exposure while simultaneously producing first-rate results.
Pat Kapowich, "Negotiating Smooth Transactions Throughout The South Bay" SiliconValleyBroker.com