Home Selling in 08844>Question Details

Joseph T. Ko…,  in Hillsborough, NJ

Are the Trade-up Buyers seeing the benefit of selling their home in this market? Many trade-up buyers who I've

Asked by Joseph T. Kozoh ABR, GRI, CRS, Hillsborough, NJ Tue Nov 11, 2008

spoken with in the past 2 years seem to be focusing on how much their home has dropped in value with little attention to the decreased value of their future trade-up home. Is this benefit being seen or understood?

Joe

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I agree. The truth is, there's more buying power today than any time I can remember because the rates are so low and values are falt or depreciating. Yes, the home one owns may be worth less today, but the potential for trading up into a nicer home is better. The same seller who expects to be paid higher for his house is also the buyer who doesn't want to pay a dime more than 'x' on someone else's. It's human nature and a natural double standard.
0 votes Thank Flag Link Thu Aug 16, 2012
Hi Joe, good post. It is tough to keep clients focused on the big picture - there seems to be buy in at the time of listing but then when the need for price adjustments comes, its a struggle to get it back in focus. Instead many want to resist the price reductions on the sale side, but take full advantage of the falling market on the buy side. In short, they want it all.

What is working for me now with a seller/trade-up buyer is to actually have a target home in mind - we've found one, in an area that is depreciating faster than our own and have had preliminary conversations with the agent to establish that they can get a very good deal on the buy side. Now they are motivated, and I can really drive home the point that we are all in the same market and to have the privilege to buy, you must be smart enough to sell.

We've reduced the price on their home and I surely hope we will at long last attract our buyer. Then we can move forward and this seller/buyer will indeed see the benefit first hand.
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Tue Nov 11, 2008
Hey Joe. We saw the benefit ourselves and took advantage of the market to trade up in May, however, I agree with you that it is very difficult to get clients to see the benefits. Most people are stuck on how little their home is worth. I'd say the majority of my clients are downsizing, not upgrading. I think with the current economy right now, most people will still be hesitant to trade up. Maybe you should contact the new housing campaign in NJ, "Now's A Great Time to Buy", and see if they can do a commercial for the benefits of upgrading in today's market.
0 votes Thank Flag Link Tue Nov 11, 2008
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