Are There Buyers Out There?

As I travel the country talking to prospective sellers about selling their property through J. P. King, one question has appeared time and time again: “Are there really any buyers out there?”

In 2005, developers could have seen their developments sell out in a matter of hours, but, in today’s market, they may be lucky to sell one condo unit a month. This dilemma doesn’t just apply to developers, though. Whether you’re trying to sell 30 condominium units or your own single-family residence, today’s real estate market does leave sellers honestly wondering if anyone out there is buying.

My answer is, emphatically, YES. However, there are some important keys to selling in today’s market regardless of the sales method.

  • First, in today’s market, sellers must maintain reasonable expectations about the value of their properties. Often times, other lenders are selling units within that very development for far less than the developer is asking. Auctions help account for these variables by helping sellers realize the true market value — what people are willing to pay — while providing bidders with a transparent valuation during the auction bidding.
  • As a developer, you must also make your development stand out. It is often competing with other developers for an even smaller pool of buyers than in years past. That is why auction marketing has proven to be so effective —auctions help the development stand out, and they create a unique buying opportunity for interested buyers.
  • Through this deflated real estate market, one thing I’ve seen recurrently is how crucial financing availability is to buyers. Using a firm that will bring financing to the table is important in gaining the largest pool of buyers and market value for your property.

There are buyers out there, and these buyers are more astute than ever. They are doing their homework and they know values of comparable properties. They have time on their side and are not afraid to let a property sell out from under them if they are not ready to buy it. Today, there are plenty of other options waiting for them. They will buy when they are comfortable that the property’s value, financing and opportunities fit them best. As a seller, it is your responsibility to meet their needs, and yours, by selling your property in a way that is most convenient to your buyers because, yes, they are out there.

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~ by Craig King on March 24, 2010.

3 Responses to “Are There Buyers Out There?”

  1. Great post Craig! I’m subscribing to your blog to get updates on trends, auction news and information from your company. Thanks!

  2. What’s the profile of the most active buyers out there today?

  3. Joe,

    I would say that today’s buyers are what I call “value buyers.” Depending on the property type, these buyers may still be end users for a property, but they enjoy a buyers’ market. They take their time in making offers, they research comps, they do extensive due diligence, and they are not afraid to walk if the deal is not right for them.

    This buyer is probably looking at foreclosed properties and short sales. Many times, we find this buyer was sitting on the sidelines in 2005 during the overheated real estate market, but he has now reemerged to take advantage of the potentially lower prices.

    Thanks for your comment,
    Craig

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