Who is the Market?

Who is the market? We all come from different situations and there is no way to know every combination but does this describe you? Every real estate transaction requires a willing and able buyer and seller. You might be in more than one category and more than one sub-category. I doubt that this is a complete list and I am sure that some topics could fall under more than one heading. Nor are the all necessarily analytical decisions; real estate is emotional.

Current Owners

  • Own only their primary residence
  • Own their primary residence and at least one other property

Current Renters

Reasons for selling or buying:

  1. Change in family status (marriage, divorce, death, birth, empty nest)
  2. Change in employment (loss of job, transfer, retirement, etc)
  3. Financial considerations (ARM loan resets, change in income)
  4. Move closer to (or away from) family
  5. Belief that the market will remain flat or rise (buyer)
  6. Belief that the market will fall (seller)
  7. Tax considerations (talk to your accountant)
  8. Investment potential
  9. Selling and buying in the same market may be beneficial
  10. Selling, renting and then buying may be beneficial if you think the market will drop
  11. Don’t want to be a homeowner (seller)
  12. Loss of property to third party (to bank)
  13. Third party (bank, relocation company) selling property

Reasons for watching the market:

  1. Belief that the market will remain flat or drop
  2. Mortgage considerations (ability to finance, lack of down payment, etc.)
  3. Priced out of where you want to live
  4. Can rent for lower outlay than owning (might cost $1500 to own what you can rent for $1000)
  5. Can rent “more house” for the same outlay as owning (for $1500 you can rent more than you can own for $1500)
  6. Don’t want to be a homeowner
  7. View real estate as a long term investment so as current owner, view current downward market pressure as a bump in the road
  8. Don’t have the equity to sell and cover transaction cost to move into different situation (rental or less expensive home)
  9. Emotionally attached to current home and will do anything possible to stay in it
  10. “What market?”