by Enrique (Henry) Saldana
To all Sellers out there: As I have already being saying in previous reports, articles, and e-mails, we are on a Buyer's Market Cycle. Meaning, you might have to adjust your expectations with regards to selling your property, during these times. Or, you might want to wait and sell when the market turns into a Seller's Market again. But to try to obtain full benefit (full price), or a cash deal, or the best deal possible out of the sale of your home in a buyer's market is just not possible.
Here are a couple of definitions of a Buyer's Market:
- A market condition characterized by low prices and a supply of commodities exceeding demand.
- A buyer's market is one in which there are more sellers and homes for sale than buyers. Since supply is greater than demand, homes will be lower priced, making them more attractive to buyers. In contrast, a seller's market is one in which there are lots of buyers and relatively few homes for sale, which leads to multiple offer situations that drive up prices.
Market's Absorption Rate
- A market's absorption rate is the best way to figure out whether a certain area is behaving as a buyer or seller's market. The absorption rate is calculated by looking at how many homes sold in a certain month and dividing that number by the total number of homes for sale at the end of the month. An absorption rate of 20% or below is usually deemed a buyer's market since homes are selling relatively slowly and the number of months of supply is high.
So, what do I do? you might say. Well you are simply going to get creative with regards to the selling of your property, through Seller Financing, or what we call Creative Financing. But understand that you need to be flexible with regards to the terms, and that the full benefit of the sale might have to be realized in the near future, not immediately as would happen in a Seller's Market.
The same terms and criteria that apply to Creative Financing in North America (the USA and Canada) may apply in Mexico: Owner Financing, Lease-Option, Rent-Buy, Seller Financing, Contract for Sale, Contract for Deed, Land Trust, A Blanket Mortgage, A Wraparound Mortgage, and other forms of available Creative Financing.
You simply need to work with an expert in this field who can guide you through the process.
So, are you making up excuses, for not being able to sell your home (condo), or are you exploring the opportunities?
With a positive, focused, and purposeful approach, and the right professional advice, you can transform the challenge into a meaningful reward.
To obtain a FREE copy of our "There Are Many Ways to Skin (Sell) a Cat (Property)" report, simply send us an e-mail request to that effect.
Mexico Realty Solutions – Mortgages "R" uS: A True One Stop Real Estate Company in Mexico. Feel free to contact us at: firstname.lastname@example.org, www.mexicorealtysolutions.com
And check the new Mexico MLS Network system: www.mexicomlsnetwork.com. Nous Parlons Français!!!
Enrique (Henry) Saldana
Mortgage, Real Estate, and Business Consultant