Understanding why people are selling will help you better understand how to negotiate the best price for your next home.
Understanding the motivation to sell is an integral part of how you will deal with the sale of your home. There are six common reasons to sell a home which also effects how a homeowner reacts to the sale of the property.
Relationship Break Down or divorce is a difficult situation to have to go through on both a personal level as well as an emotional level. There is the upheaval of the family unit, the division of personal property and in a lot of cases dealing with the legalities of the marital split. In the best instances there is an equitable split and everything is done fairly, unfortunately this is not always the case.
In the case of relationship breakdowns the couple is feeling compelled to sell the home and divide the assets that the couple has accumulated. Hard feelings often make negotiating difficult in this situation.
Financial Hardship can force the sale of a home. A couple bad months, a major repair, or lose of your job can make your monthly payments difficult to keep up with. In instances were financial hardship is the main consideration for the sale of the home it means that the sellers have likely been unable to keep up with the maintenance of the home. Minor repairs often can develop into major issues if they are not corrected in a timely manner.
A lack of money is commonly a cause of stress as well. Creditors have possibly been applying pressure to these vendors in order to recover the funds that they advanced. A sense of financial urgency has caused them to put the property up for sale.
Relocation due to a career change, family reasons or for retirement is a great motivator to sell. The time frame for the sale of the home is set by the date the vendor intends to relocate. Due to this fact vendors will traditionally be more aggressive with pricing in order to finalize the sale of their home prior to moving.
Downsizing is becoming more and more common as aging baby boomers children are leaving the home and they no longer need a lot of additional space to maintain a sprawling family. This type of seller is typically looking to maximize the value of their home in order to reduce their household expenses and therefore extending their retirement dollars.
Upsizing is a typical trend with young families. As the family grows, so does the need for additional household space. They need to move beyond their current home and stretch find a home large enough to accommodate a growing family.
Profit Seekers are usually the least motivated sellers, because they don’t have a need to sell their home. They are looking to capitalize on rising prices and market conditions to make a profit on their home.
Regardless of the motivation to sell a potential buyer has to find the value in the home. If you don’t see the potential value then it is unlikely that you will buy that particular house.
