People move for many reasons, and these reasons can play a significant role in your home buying or selling decisions.
If you’re buying, knowing why a seller is moving can give you an idea of the desirability of the home or neighborhood. It can also help you gain some advantage in negotiating with the seller.
If you’re selling, your reason can impact your negotiating and marketing strategies, especially if the timing of the sale is critical.
Here are some of the most common reasons behind homeowners’ decision to move and sell their properties.
- Career change
Job relocation is a compelling reason for someone to pull up roots. Some people also find it necessary to move to another location with a shorter commute to their place of work.
If you have to move to follow a job, ask your employer if you can get relocation assistance. This may relieve you of the need to sell your home immediately to fund the purchase of your new residence.
- Familial bonds
Sometimes, events in our lives compel us to live closer to our family members, and other times, things occur that push us away. Family can be a powerful force in all aspects of life, including where you choose to live.
The urgency of the need to move can decide the timing of the sale and how much room there is for negotiations. If the seller has to move quickly, they may be open to a lower offer.
- It’s the right time to cash in
When to sell a house depends partially on the homeowners’ goals. Those who have paid off their mortgage and have boosted the overall value of their house through updates and improvements usually sell it for more than they paid initially. This leaves them with a sizeable profit that they can enjoy in the next stage of their lives. Retirees, for example, may sell their homes to fund a move to their preferred retirement location.
If you’re the buyer, try to find out what the seller initially paid for the home. Perhaps they’re willing to go with a lower price provided they can still make a good profit.
- Their home has lost value
On the other end of the scale, there are homeowners who want to sell because the value of their homes has dropped too low and they want to cash out before they suffer any more losses.
If you’re the buyer, it may be wise to look into market trends in the area and decide if buying a home here is a good or bad decision in the long term. Consider as well that, given their losses, the seller may not be motivated to accept a lower offer.
If you’re the seller, you might want to analyze the situation further and see if there’s a chance for a possible recovery.
- The need to downsize
An economic downturn or an unfortunate turn of fortune can compel individuals to move into a smaller home or one that needs less upkeep. Downsizing is also the trend among empty nesters or retirees whose children have left the roost.
Depending on the urgency, downsizing as the reason for moving can open up plenty of room for negotiations.
- It’s time to upgrade
A growing family needs more space to keep everyone comfortable. Whether it’s to take in relatives or welcome a new child, the need for a bigger space is a common reason for moving.
In situations like these, homeowners will want to sell off their current house with the hopes of making enough money to afford something larger. Given this, they might not be inclined to accept a lower offer.
On the other hand, if the sellers are moving up because of newfound success, the buoyant mood can make them more open to negotiations.
- No longer want to be homeowners
Life changes, and so do interests. A part of homeownership means being tied down to the property physically and financially. Either one can be a burden to someone who develops an interest in travel or living a nomadic lifestyle. They’ll sell off their homes not just to separate themselves from the responsibilities of home-ownership, but to shore up funding for whatever adventures they choose to seek. How urgently they need to unload their homes can factor into the negotiations.
Buying and selling a home can be an emotional process, which can cloud your judgment. To avoid costly mistakes, work with an experienced Realtor who can provide the objectivity and expertise you need. We at Riley Realty, LLC will be happy to hear from you and help you achieve your real estate goals. Call us at 320.589.2159 or get in touch with us here.