The notion of buyer’s market or seller’s market is a real phenomenon in any form of real estate investment.
Seldom can it be said that the market is both a ‘buyers’ and a ‘seller’ market simultaneously. But this seems the case as we prepare to enter the second half of the 2009 commercial market.
Pinching down on Buyers is the absence of simplified capital lending, something necessary to their investment strategies. Sellers are experiencing what I call “refi shock” as banks tighten their rules for lending qualification in the wake of declining property values.
The conundrum is realized as buyers and sellers are forced to work in a market that favors both. The conundrum is one of uniquely creative transaction partnerships, where neither the buyer nor the seller can pop the cork on a Champaign bottle and light-up a victory cigar.
The Buyer vs. Seller Conundrum
This paradox of market realities or, clash of interests, is actually a moment of investment opportunities where banks can become the third party servants to buyers and sellers.
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