Right now, we’re going to talk about buying in a seller’s market. Thank you so much for tuning into the Real Estate Today podcast.
I’m Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investment. And I’m Marcia Edwards, Residential Broker with Windermere Real Estate.
Marcia Edwards: Let’s talk a little bit about the seller’s market, the concept that you’re in charge as a seller. It does give you power but let’s look at a different part of that that can help benefit you as a buyer if you’re going to flip this into another opportunity in real estate.
Bob Nelson: Well, frequently the reason that I’m selling is because I have grown tired of the property or out grown a property and I have a better property in my sights and so the purpose for selling what I own, is to allow myself to purchase what I would rather have. And if I can time the closing of what I’m selling to the closing of what I’m buying, it certainly makes it a whole lot easier in less requirement for a bridge loan or renegotiating the deal that I’ve got at the buy end etc. So-
Marcia Edwards: 1031 timing as well, correct?
Bob Nelson: Yes, absolutely. It’s really fairly critical. If it’s a tax deferred exchange, it’s just huge, I mean I’ve got a 45 day window to get the job done and I don’t want to waste any of that time. So I’m going to be buying at the same time that I’m selling. And I have to have my buying shoes and laced up tight because I don’t have that flexibility of time between the moment that I sell and the time that I really need to be closing my buy end.
Marcia Edwards: So we’re talking about a strategy here that’s pretty aggressive when you’re feeling very confident about what you have as a product that’s going into the market on the selling side. If you feel really confident and you have conviction with research based conviction that the pricing that you’ll put it out at will create an avalanche of activity, if you’re willing to do that on the seller side, it’s a great way to prepare yourself to be a strong buyer in this market.
Bob Nelson: Yes. Absolutely. And if you understand that and can stage it properly it’s a thing of beauty. And that’s of course the thing that I do with 1031 or tax deferred exchanges, it becomes a thing of beauty out of necessity. So as long as I can plan both ends of the transaction, it’s neat.
Marcia Edwards: So what you’re doing is your looking first for the opportunity as a buy, where’s your end game? And once you start to understand a good thing when you see it, and you know it’s realistic, you’ve already done your homework on the selling, sales price in a conservative manner to be successful. Then you prepare that property and make sure it’s ready to launch. That’s when you take another close looker at the actual market for the opportunity to buy and you synchronize those.
Bob Nelson: Exactly. And there’s no time to delay. I like to have a couple of months lead time on the buy end as far as selling so that I know exactly where I’m going and I’ve picked it out.
Marcia Edwards: I’m Marcia Edwards, Windermere Real Estate.
Bob Nelson: And I’m Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investment.
Join Bob Nelson and Marcia Edwards Eugene, Oregon, real estate experts daily at 5:30 on KPNW for the “Real Estate Today ” radio show.