Why Are People Selling?By Mac Martin - Broker/ Owner of United Country Real Estate | Gulfland Real Estate
August 16, 2018
People want to know the motivation for someone selling a real estate investment. In our experience, there are three reasons people sell...
One of the most frequently asked questions real estate agents get from buyers of real estate is, "why are they selling?" People want to know the motivation for someone selling a real estate investment. Ethically, Realtors are trained to say that the reason is not relevant and it does not affect the value of the property, but that answer will rarely satisfy the buyer. In our experience, there are three reasons people sell: 1) Profit. 2) Relocation. 3) Hardship.
Let’s look closer at these reasons.
1) Profit is easy to understand. Sellers want to reap the rewards of making a wise investment. When owners feel they can get extra money in their pockets, they are ready to sell. They consider the taxes and other selling expenses and then set a goal they want by setting an asking price. In a profitable situation, a common thing to hear a seller say is, "I don't have to sell." This is followed by another popular question that buyers ask, "How much did they pay for it?" Again, while how much one paid is not relevant to the current value, folks still want to know. In the end, a fair price is best. Long-term investments that gain value with rising markets can create a profit. Most buyers understand that the gain of the seller is "earned" over time. Profit can also come from a speculative investment. In a booming market, many investors can gain profits. Some folks make a profit only flipping purchase contracts, never even owing the property!
2) Relocation is a reason for selling. A new job, marriage, retirement, upgrading or downsizing are all reasons to sell. These sellers may have a sense of urgency to sell because they are under pressure to move. In these instances, some may price a property more attractively to get a faster sale. Please ask for professional help if you are under pressure to sell.
3) Liquidation often means that someone needs money more than real estate. It may not be a crisis, but the cash is an added bonus to help pay off debt, buy a new car, pay college tuition or pay for a wedding... Cash is king. Then there are liquidation sales caused by emergency hardship situations. In these situations, professional help is critical. Be especially cautious during valuation, showings, negotiating, contracts, due diligence and closings.
Whatever your reason for selling, wouldn't it be great to have some help? We always recommend working with a qualified real estate agent no matter what your situation.
United Country Real Estate has been in business for more than 90 years. There are more than 4,000 agents nationwide ready to help you in your real estate needs. Visit www.UnitedCountry.com to find an agent near you.