Steve Koerber's Old Blog

Remuera's house sold name since 1998 – 021864166

Buying and selling on the same market

Posted by Steve Koerber on May 30, 2008

If you’re buying and selling on the same market, this is a great time to do exactly that.  I love to use examples, so here’s a fresh case study (two sales concluded yesterday) to show you how it can be done.

Seller A was a keen seller and priced their home well in the current market.  Some would say they were ‘under-priced’ at $995,000, however they took 7 weeks to sell, so they were probably more ‘well priced’ than ‘under-priced’.

Buyer B bought house A for $975,000 conditional upon them being able to sell their own home B.  A standard escape clause enabled Seller A to accept a better offer (if one was forthcoming) while buyer B attempted to sell their own home.

Buyer/Seller B could afford to offer their own home for sale at a reasonable price.  They had been offered $1million a year earlier, but were happy to accept that the market had dropped.  The key for them was achieving a $150,000 trade-up gap.

After one week, Buyer/Seller B accepted an offer of $800,000 from buyer C.  Buyer C was cashed up and had been searching for 4 months, but had missed out on several homes.  They immediately saw that house B was excellent value and priced to sell.

Buyer/Seller B stretched their trade-up gap to $155,000 to enable them to afford $955,000 for house A.  Seller A reduced their expectations from $975,000 to $955,000 to secure a cash sale and move on with their lives.

This happy chain of events was possible because buyer C, buyer B and seller A all had realistic expectations and were motivated to make a move.

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