Great post, Ardell.  I am not sure that a lot of agents understand the meaning of fiduciary.  Not really.  I have often thought about the point you make hear.  How can it be a great for everyone to buy or to sell?  "Now is a great time to Buy" means what - it can't be if it means in terms of savings on a buy or maximizing a sale.  What if it means something else, it is a great time to get on with  your life?  Buy high, buy low?

Miriam,

Like I said in my article, it's like asking if it's a great time to get married or the best time to have a baby.  If you have to ask someone else...then likely the answer is no.

Ardell, We rarely work with buyers. We take pride in being listing agents. But here in Florida, it is presumptuous that we are not fiduciary in our duties, we are transaction brokers unless we specifically enter into a single agent relationship. In a transaction relationship saying it is a great time to buy to a buyer and a great time to sell to a seller is not a problem. It is being a good salesperson. I am proud to be in sales. IT is a matter of perspective. I have always been one to whom seeing both sides comes naturally and easily, because I am empathetic in nature. That is not two sided, that is seeing something from different perspectives. Happy 4th of July Independence Day!

Ardell,  This should not be a dilemma for an agent.  Seriously,  if you disclose that you represent both sides to the other and if you are comfortable with full disclosure to the point that you do not create an advantage or disadvantage for either side then it is a plus to both sides.

"In a transaction relationship saying it is a great time to buy to a buyer and a great time to sell to a seller is not a problem."

It's not a problem for whom, Katerina?  I think it is a problem for the person asking the question, don't you?  If the answer to one or the other is a lie...then it is not "being a good salesperson".  If you are saying the same thing to a buyer as to a seller, then likely you are lying to one or the other, and honesty is required just about everywhere, fiduciary or not.

Bill,

You sound like you are talking about Dual Agency.  I'm not talking about Dual Agency.  I'm talking about in the morning you have a buyer asking if it's a good time to buy right now...and in the afternoon you have a seller asking you if it's a good time to sell right now.

Two different people...two different houses...same answer?

Say someone says "Should I buy this year or next year?"  Then someone says "should I sell this year or next year"?  NOW picture them in the same room when you answer the questions :)

One way that it could be a great market for both buyers and sellers (at least in certain markets -- like mine), is this:

Sellers have had homes appreciate much faster than usual for most of the millennium.  Although prices have gone down, they are still going to get to take advantage of that appreciation if they sell today ... provided that they bought prior to 2003 or so.  Now, if they are upside down and took every penny of equity out of their home at every turn ... well, that's their fault and they need to deal with that on their own.

For buyers, it is always about buying low and selling high.  Only very recently did a "flip" bring a buyer so much money so quickly (sometimes through double closings), but before the era of free money you had to buy a house and actually hold onto it and ride the next wave of appreciation.  Since none of us have a crystal ball, it is up to the buyer to decide if prices have come low enough for them.

It all comes down to your client's needs (it's not about our needs, but theirs) and whether they see the glass as half empty or half full.  If their situation dictates that they want or need to buy or sell, then nothing should stop them from doing so.

Our job is to present them with information to make an informed decision -- not the make the decision for them.

Interesting image -- it could be one face looking directly at us, or two people looking at each other. Just like the image, whether or not it's a good time to buy or sell is all a matter of perspective. There is no universal answer, everyone's scenario is unique. And doing what's best for the buyer or seller in the long run will always be best for the agent.

I agree John, as long as you would be most comfortable telling the Seller it's the best time for them to sell and the buyer it's the best time for them to buy IF THEY WERE IN THE SAME ROOM AT THE SAME TIME, then you likely have hit the right balance and achieved honesty.

But if you wouldn't answer the question to the seller in front of the buyer, or vice versa...then not.

"It all comes down to your client's needs (it's not about our needs, but theirs) and whether they see the glass as half empty or half full."

Interesting point, Jesse, and likely more true of your market than mine.  In my opinion, our glass is 93% full :)  Just as different agents will have different answers, different markets will as well.

Ardell, I believe that understanding what "fiduciary" truly means is what may be lacking with some agents. I don't see them trying to play one against the other like I use to. You hit the nail on the head when you said," understanding what Fiduciary means becomes so very important."

I must respectfully disagree about the word "salesman".

I don't think the word is indicative of "take their money and run!"

I am proud to be a "salesperson" in many ways! I love having the sales skills needed to "read" people and intuitively guide them the right direction...to be able to ask the right questions and "hear" with more than my ears. A great salesperson ALWAYS places their client's interests before their own. At times your client needs you to ask for the sale!

I strongly feel there is a difference between a "professional salesperson" and door to door-one time close salesmen.

I believe in COMPENSATION (earned) vs: Commission...

and, I'm proud to be in my profession of sales/marketing and I'm Proud to be a Realtor!

I think that if a person is dishonest...you could call him President or a Buyer's Representative but if it walks like a duck and quacks like a duck...we should call it a duck!

Happy 4th of July and thanks for the "thinker"...I don't mean to be a stinker!

Later in the rain~Deb

Ardell, For anyone who knows me or has read my posts they know or come to learn that I don't believe in "me" telling others when is a good or bad time to buy or sell. Everyone's situation is different. Only "you" can predict for "you" when it's a good or a bad time to sell. When one needs my overall view of the market, that's when I can give them an overview.

Very interesting topic.  I think when the agent focuses on the clients personal needs and goals that is what is ultimately important and I take pride in that.  We are on the listing side more often than the buy side but either way, whatever side we are on, we are hired to help that individual client with that individual's goals.  We will always help people by being consultative and maybe even recommend a seller not to put the house up if they are not ready and if a buyer is not showing their commitment to move foward or if the mortgage payment would obviously stretch them too thin, we will recommend a different option.   I think if you look at each case seperately and are acting in the best interest of your client, than you are a true advocate.  We like to think ourselves as the best advocates of buyers and sellers in Philadelphia.

ARDELL, I have way too many thoughts on fiduciary for one comment but let me give you a few of them.....

• Dual agency is a farce and is harmful to the consumer in most cases. I think at a minimum it should be designated agent(2 agents same office) if both parties insist on agency.
• Fiduciary is too high of a standard for most agents.
• Too many "agents" wrongly believe their fiduciary, especially confidentiality, ends when the listing expires.
• "It's a good time to buy and/or sell real estate" is deceptive advertsiing (a lie) and is a violation of our CoE.
• Being able to operate as an agent should require advance training and licensing.
• You do NOT have to be a dual agent to work both sides of a transaction.

OK that's it for now:)

Deb,

I won't argue with you...you did a good job of arguing with yourself :)!  Happy 4th of July!

Mana,

And when they want that overview, what do you tell them about this year vs. next year?

Christopher and or Stephanie,

Only you can answer what you may tell a buyer if they ask if they should buy now or wait.  That is the question.  If they aren't asking the question, then that is buyer is not the subject of this particular post. 

If the buyer wants to buy and the seller wants to sell and neither is asking you if NOW is best...then that is not the subject of this post.

BB,

"Fiduciary is too high of a standard for most agents."

I do not disagree with this.  It's like NEVER telling a lie being different from ALWAYS doing our best to be honest.

Always trying our best is all that anyone can expect, and I hope posts like this one keep people moving in the right direction.

It should always come down to what is best for an individual buyer or seller.  I do listen to my clients and advise them based on what their goals are.  I don't think sales are my strongest point so I do much better with people who have already made up their mind to either buy or sell.  I don't really want to spend a lot of time with people who are unsure if they want to buy or sell. 

I am addicted to real estate and real estate news.  My mind is like a sponge and I try to absorb everything and anything out there.

If you go back through my blogs, you may get the impression that I do not have a solid view on whether it is a good time to buy or a good time to sell.  I am the first to admit that I have no idea where we are going to be in six months (I have an opinion but we all have them) so I have no idea what is good for whom without an individual assessment.  That is why I encourage people to evaluate their needs, wants, expectations and ability today.  Tomorrow is never promised.  If we all waited for tomorrow we'd never get anything done.

Based on facts though, in a market like mine, Maryland, I can see the positives on being on either side of the fence.  There are bargains to be had for buyers and sellers who didn't buy at the height of the boom or refi irresponsibly should not have to come to the closing table with a check.  Will that change?  Your guess is as good as mine!

Plus, as long as someone isn't upside down, immediately purchasing again and staying within the same geographic area, it should be all relative -- the seller may end up selling for less than they would have two or three years ago, but they are also going to be able to buy more house for less money.  Ideally, it should all work itself out.

Someone I just got an amazing (we're talking at least $150k below FMV) for his new primary residence.  If you ask him, he is happy that he got such a great deal.  If you ask the seller, he'll probably express how happy he was to get rid of the house -- he owned it for so long and did not need to make a profit.  It's all about perspective.

Ardell, with the prevalence of Internet and media coverage on the logistics and climate of buying or selling homes, I believe that customers and prospecive clients are aware of the Buyer's Market.

It is not a good time to sell, but a great time to buy, in general.  However, this depends on the individual and accompanying set of circumstances, i.e, credit score, cash flow, employment stability, etc.

Some folks would like to sell or need to sell their homes in this buyer-slanted market.  If so, it is my duty to help them achieve the most rapid sale for the maximum price.

I do not practice dual agency for the reasons you so aptly stated.

In theory, I work from the facilitator and counselor perspective, rather than from the sales-driven model.

Finally, I try to listen to my clients carefully and help them determine their needs, goals, and challenges.  If they need more time or information to make an informed decision, then I will accommodate.

I am still learning...every single day. 

Thank you for a thought-provoking post which I tshall take to heart.

Have a Happy and Safe 4th of July.

Ardell, I am my best friend! Later in the rain~Deb  :)

P.S. I would like to argue the fact that I was not arguing...

I know several that are. It's definitely a tight rope walk.  However, I always try to be as honest as possible regarding the market to both buyers and sellers.

I was at an open house last weekend and I heard and agent talk about the same fact.  They said to the seller of the house how great of a time it was to sell your house.  Then as they were walking through the house I heard the same agent say to her buyers that this is a great buyers market.

Now I knew that she was at least 50% right.  It was either one or the other.  But if I was the buyer and heard both the statements it would concern me what was the real intention this Real Estate Agent had. 

Great Post!

Like many either or questions, in real estate the best answer is often "it depends". It depends which geographic area, it depends on the price range, it depends on whether someone's asking about new construction or resale property. I try to help my clients with their goals, not mine. In my market we've had some great appreciation over the long term. We all have short memories, but homes were still bought and sold when interest rates were 18% with a 2-3yr inventory backlog. It was just a different kind of a transaction with different solutions. Buying a home is still a great investment, but so much more. In my market if you're selling moving to a lower priced market like Florida, your happy.

I'm with you Carolyn, except when the answer is more obvious.  When it's grey...it's their life, not mine.

But I will show them where black becomes grey and where white becomes grey...for THEM, if they are overlooking something that they do not know, and I do.

"If you go back through my blogs, you may get the impression that I do not have a solid view on whether it is a good time to buy or a good time to sell.  I am the first to admit that I have no idea where we are going to be in six months..."

Jesse, there will alwyas be times when we are more sure and when we are less ure and when things are in such a state of flux that we have no idea!  As long as we are honest in the moment at all times, then we are doing the right thing.  If we have felt the same since we started blogging years ago...well that would be a sign of dishonesty.

It is in the way we change as facts change that we show honesty...consistency is not a requirement of blogging.  Open mindedness and the willingness to change opinion...is more important than being consistent.

You don't need to justify yourself to me...just answer these two questions for yourself:

"I'm only planning to own for a year or two...should I buy?

"I'm thinking of waiting until next year to sell because the market is soft right now, should I wait and if so how long should I wait?"

If you tell the seller that this year is better than next year, then how would you justify telling the buyer to buy?  If the market will be lower next year for the seller, won't it also be lower next year for the buyer?

That is what I am asking everyone to think about. 

"It is not a good time to sell, but a great time to buy, in general."

I would not say that is true here in the Seattle Area, Roseanne.  I also think the credit crisis will affect all markets for a few years, regardless of how low (or not) they have gone to date and before the credit crisis.

Tracy,

That is clearly the best any of us can do.  Maybe we should record ourselves and listen to it at night before bed :)

Bruce!  Thank you so much for that real life example!  I'm going to re-post it in bold in case anyone missed it:

"I was at an open house last weekend and I heard and agent talk about the same fact.  They said to the seller of the house how great of a time it was to sell your house.  Then as they were walking through the house I heard the same agent say to her buyers that this is a great buyers market. 

Now I knew that she was at least 50% right.  It was either one or the other.  But if I was the buyer and heard both the statements it would concern me what was the real intention this Real Estate Agent had."

 THAT's what I'm talking about...exactly.

Judy,

I totally agree with you.  I spent most of my youth on Lancaster Avenue.  Did you know it was the first paved road in the United States?

Ardell, My overview is The Truth backed up with a lot of proof. Way before I turned to Real Estate, I was a math major. I love working with stats and numbers. However, I always tell them the ultimate choice is "their choice".

Mana,

I am glad that most of our clients do not put that decision in our hands.  Most come to us to buy or sell with their minds already made up about what they want to do.  It's only when they are dealing in the short term that we find outselves needing to be a voice of reason.

If someone says, "I want to buy for one or two years and then sell for more than I paid...well, all I can say is they better buy a really ugly something in good shape, and put in some sweat equtiy.  There's always a good answer for everyone...just not the same answer.

Ardell, I think I have been fortunate. My clients have been mostly first time home buyers who do not plan to sell in 1-2 years.

Please do not get me wrong, I do direct my clients and give out my opinion, but I leave the decision making to them. In some cases after I have come to know my clients better I have talked them out of their move, and have kept them updated on the market. As I said earlier, everyone's situation is different and as their agent I have to respect that.

Ardell - it's a very interesting question you pose.

I haven't read your two blog posts so this may not be a fair comment but your question seems to suppose that the only relevant factor is the state of the local real estate market.  But there are always other things at play, so it seems to me the question you are grappling with is essentially hypothetical.  On reflection, my view is that as tempting as it may be  sometimes to answer questions like that, it is impossible to do in the abstract.  Until all of the client's relevant facts and circumstances are known to the agent,  a 'yes' (or a 'no') answer may quickly be revealed to be incorrect, once the facts come home to roost. Those are my thoughts, for what they're worth.

Ardell, None of us have a crystal ball. How do we REALLY know what the market will do in the future? We REALLY have no way of knowing. We DO have educated ideas.  

There is no "great time" answer, for buyers or sellers right now, in my opinion.  I know in my market, Huntsville, Alabama, we are still appreciating, in most areas, but a few pocket areas had no appreciation last year. Those areas did not LOSE value either.

I advise my buyer OR seller, according to the area, subdivision, etc., that they are interested in. I can only advise them on what I know to be factual, and that is today's market, with the facts I can present to them, up front.  It may be a "buyers market" in one subdivision, but not in the next. Same with price range, etc.  We all know this.

It is my job to educate my clients, and let them decide for themselves. I would NEVER push anyone to buy or sell, never.  If I feel it is not in their best interest, I am the first one to stand up and tell them.

What a thought provoking post. Good job!

Elizabeth,

If your market is stable, then I agree, and you are indeed the exception.

Ardell...

Well Blog Boy has this one covered. That being the case this comment is a park and follow the thread zone :)

TLW...ROAR!

Ardell-I like that word, Fiduciary.  In fact I had my Agents go back to the COE and read it, then we role played scenarios that would show if the Agent was actually in a fiduciary capacity to their client.  Amazing how a couple of them needed this over and over.  No matter how many times I thought they got it, they would do something that made me cringe.  Yes, many agents don't get the concept very well....that's my opinion, and I'm sticking to it :) :)

Oh, to answer the question I tell most sellers if they don't need to sell, or they need more than the market will bare, to wait if they can. It's not the best time for many sellers, depending on the local market of course, along with other considerations.  To buyers I tell them it is a good time to get a good deal.

Kathy,

If you do any market updates on your area, I'd be interested in seeing them.  Palm Springs; Palm Desert: West Palm Springs.  I never heard of West Palm Springs until now and would like to know the price variations between those three areas for the same type of property.

When you have time, of course.

I'm thinking Redondo Beach, Kim's thinking Vegas...seems Palm Springs would be the in between zone...no?

Regardless of classifying yourself as fiduciary or transactional broker, I believe a great litmus test to your intentions is to ask yourself when was the last time that you recommended something to a potential customer that was adverse to you earning a fee/commission.

If you can't remember, then you are probably not making legit recommendations. You are potentially making only self serving recommendations. You don't need to be a martyr, you just need to look out for people that rely on you.

Great thougth provoking post.

Ardell- Are you guys thinking of opening down here?  I will do the market updates for you (actually I sent your request to my VA :)  But even before it comes in I will give you the simple unofficial version.  West Palm Springs is cheaper, then Palm Springs, then Palm Desert.....not in all cases of course...but generally speaking.  It really depends on what type of RE........same as up there I am sure.

As a transaction broker in Florida, I do not have any fiduciary duties to seller and/or buyer. I have worked with seller and buyer in the same transaction and I don't feel it was any more difficult than working only on one side of the transaction.

It's no different than being the referee in a tennis match. You sit on the net, your feet never touch either side. The main thing to keep in mind is that whatever you make, whatever your commission is, never enters your mind. It's not about the sale, it can't be. I must always be about your client and in the case of a transaction broker having both sides of the transaction, it's about the seller AND the buyer. It's that simple.

Ardell, even in the best of markets I advised my clients that there are no guarantees in real estate investments and they have to examine their risk tolerance when buying a home. Being a conservative investor myself I advocate caution, but some buyers were willing to take more risks. When people ask if it's the right time to buy or sell, it implies that they have other options, i.e. they don't have to sell or buy.  Evaluating these options and understanding the clients' needs as well as the market and other alternatives is part of the agent's role.

There is one easy test to consider in regard to being a client's fiduciary. For example: if a client's house is not selling and there is a financially beneficial opportunity for them to rent the house out, would an agent recommend this alternative. I came across this recently and was surprised by what I found.

You are raising a very important topic and we could all benefit from this discussion and introspection.

I think the key here , ARDELL, at least for me is that it really does vary per property and person and situation.  I can't really apply generalizations for every situation, but I do have an ability to see all of the influencing factors and have on many occasions told people to rent rather than buy or rent their house out rather than sell it.  It really just depends and I would answer my buyer in the morning and my seller in the afternoon in one way - consistent honesty.  Is that what you mean?  In the mean time, I guess I sell houses either from one side or the other... Happy 4th:)

Ardell - I've not had time to read the comments, but I did read both of your other posts.  I believe you have covered this well.   As you much more eloquently noted, the answer to both questions is, 'it depends.'  Every buyer and every seller faces a different set of circumstances.  So, yes, a situation could occur where a buyer and a seller were in the same room (not talking about the same property) and the answer to each could be yes.  The fiduciary part is the key.  That affirmative response must be based on the interests of the client regardless of the interests of the agent. 

I have always represented both buyers and sellers, and would never have problems with both sides hearing the advice I am giving either.  Regardless of the market, there are people that gain an advantage by buying, and others that will gain an advantage selling.  And others that won't.  Of course, there are some that have to buy or sell regardless of whether it is a "good idea." 

As long as I maintain the needs and situations of my buyers and sellers instead of the current ad of the NAR or C21, I know that the advice that I give is intended to help my clients.

I'd say Peeples is a People Person :)

"Of course, there are some that have to buy or sell regardless of whether it is a "good idea." 

Abolutely correct, Lane.

Ardell- NO, I am not lying. IT is a matter of perspective. IT is a good time to buy right now if you are a buyer because you can get some great deals right now, interest rates are still near historic lows and the list goes on at the very same time it is a great time to sell if you have to sell your home as a short sale because you can no longer pay your payments and have a hardship because until the end of 2009 you will not get 1099'd if this is your primary residence and the lenders are wanting work outs. I AM NOT LYING! and I do take offense that anyone would claim that saying this is a lie. IT is all in the way one looks at the situation and if you are really trying to help people. I can tell a short sale seller that this is a great time to sell at the same time telling the buyer who wants to buy that short sale that this is a great tim to get this at a reduced price. That is not lying! It all depends on the motivation of the buyer and of the seller.

Everyone is a salesperson. A child is, a wife is, a husband is. There is not a person in this land that has not sold something tangible or idea or whatever, at one time or another. A good salesperson will lead a prospect to discover their need and then fill it. That is very honorable. Without sales, the ecomony of the world would just about stop.

Of course, Dual Agency should be eliminated.  The Brokers and Team Members are also mixed up in the "Deal".  And, outside people (like Appraisers, Inspectors, Title Company personnel, etc.) are "influenced by one side or the other.

It is several individuals and not just one person.

Will eliminating the Dual Agency eliminate the Scam problem?  Not really, there is a deeper problem to this dual/quad representation/Real Estate structure.

Ardell.....it is all about what is best for the client at that particular time.  As you said "fiduciary" is what our relationship should be about.

Hi Ardell,

Great discussion. Oh boy...there are as many answers to that question as their are buyers and sellers.  No one is exactly the same!

I have one couple for whom selling and moving up would be a win-win....naturally, they are paralyzed and won't act.   Condos and cooperatives have done well where this couple would be selling and moving up.  They would be buying into weakness in the SF market.  What's stopping them?  The credit crunch.  They want "more" house then they can now get a loan for.  Nothing will change that and its only going to get worse before it gets better.  Meanwhile they are in a small 2 BR cooperative with two kids crammed in like sardines.

In another case, I have someone looking to buy, but its for the very long haul. Monthly payment is more the issue for them.  Since interest rates look to be heading north - buying now to lock in a good rate would probably make sense.  Temporary gyrations are not an issues in this purchase.

One first time buyer wants nothing but new construction and they are mostly in cash....buy now?  Not a good idea since they aren't thinking past the next 3-4 years and  are not willing to deal with a fixer.

Katerina, sorry to upset you.  But I can tell you that most people reading this sentence:

"In a transaction relationship saying it is a great time to buy to a buyer and a great time to sell to a seller is not a problem. It is being a good salesperson."

is one of the reasons they question the validity of advices from agents.

Jay,

This is not about Dual Agency.  It's about having a seller client in the morning and a buyer client in the afternoon.  Two separate and unrelated situations.

There's another lesson in this.  Ask people who aren't in the business.  My sister came to see the fireworks and couldn't believe anyone would tell one person it's a good time to buy, and in the same statement tell someone it's a good time to sell.  "time" being NOW.  She thought it was hugely unethical.

What we think doesn't always sync with what people generally think.  I'd like to see us get on their page just a bit more.

There's always the YES Agents:

Q. Is it a good time to sell?

A. YES

Q. Is it a good time to buy?

A. Yes

Q. Should I make a full price offer?

A. Yes

Q. Should I accept this lower than full price offer?

A. Yes

Q. I this a good deal?

A. Yes

Etc,etc, etc, etc, ........

Michael,

too funny.

Hi Michael!

Happy 4th of July!  I'm posting some photos of the fireworks for you that I just took from my bedroom window.

What time is it in Iraq?  What day is it in Iraq :)

Ardell,  I do 99% of my business in a one square mile area.  It is a good time to sell for those who can't afford the taxes and the increase of values that come with the gentrification of an area.  I was one of those and I sold my home in my market area.  However, it is a good time to buy as this area will increase in value with the new Black Rock train station in 2010 and if you buy a home where you can afford the taxes.  I downsized and bought a home in a multifamily area with no views of the water.  The home I sold and the home I bought are both within the one square mile area. 

I don't advise people to sell, who shouldn't sell now.  I've told some of my clients to wait until the new train station is in.  For others who can't afford to pay their taxes or need to sell because of relocation, I am there to help them sell.  I don't advise everyone to buy in my market area, especially those on fixed incomes who can't afford future tax increases.  The values are rising and thus the assessments are rising as well. 

Gentrification creates change and causes some to sell and others to buy.  This means business for me, but I still try to advise my clients with regards to selling or buying based on their individual circumstances.

Ironically, because of an invitation to a Fourth of July party, I spent this afternoon in my former home of 20 years that I had to leave because I was priced out by increasing values and thus increased taxes.  The couple who moved in have updated my old home and are now adding on a beautiful addition that will take advantage of the water views.  I'm not upset by this because the alternative would be for my market area to decline in desirability and value.  This time, however, I have a plan.  I'm in an area zoned for multi-family properties and will convert the top floor to an apartment which will pay for my taxes in my old age.  Of course with no pension and a sizable mortgage, I'll have to keep selling real estate into my 80's, which again, is not a bad thing.

Gail!  Into your 80s?  WOW!  I don't think I've seen someone selling real estate at that age.  Take a picture when you get there and send it to me :)

Great B L O G.

Couldn't agree with your argument more..

Ardell, ok, so here goes.  It IS a great time to buy because interest rates and prices being this low at the same time gives them a lower payment and just like the stock market ... when it's down is when you should buy.  For the same reasons the below is true for a move up seller, it is true for a buyer.

IF a seller wants to know if it's a good time to sell, depending on what they are doing, the answer would be something like this.  IF your home was worth $300,000 3 years ago and you buy up to $500,000 that's a $200,000 difference.  The down payment at 20% of the $500,000 purchase price is $100,000 and your payments are based on $400,000 loan amount.

IF your property has dropped 20%, then your home now is worth $240,000 and you sell and the property you are buying is $400,000 because it dropped 20% too, then the difference is $160,000 and the 20% down payment on $400,000 is $80,000 and the payments are based on a $320,000 loan.  Isn't that a good time to sell for the move up seller?  You bet it is, YES they take less but buy for less and their property taxes are less, payments are less for 30 years, etc. 

I don't see a conflict and NO I am not a two faced agent.  I am helping them analyze the market to assist them in THEIR decision making in terms of what they can do with their investment and their purchase or sale.  That's my job, the decision is up to them. 

Terrylynn Fisher, Contra Costa County, California Realtor, CRS, SRES etc...

Good comback there Terrylynn.

Let's say it is the seller that is buying down and a first time buyer.  Try that one. 

I think I just like to get an agent to say to someone, anyone, that now is not a good time...sometimes :)

Actually I do.  Circumstances like this.  Last 12 listing appointments, my advice has been 4 to list, 8 to wait.  The wait were various reasons, often something like this scenario. 

If they are retiring and moving to the last place or already own the place they are going to I would say think about not selling now if you don't have to.  Why?  IF you hang in there, using the stock market analogy of ups and downs again...how we tolerate them, etc.  But better yet, we keep your property, rent it out and you now have some income or break even situation, you have nothing to loose.  And, who do you know that could save $25,000, $50,000 or $100,000 in the next ten years from their salary or income?  I don't know many people in that category. 

So, why would you not keep the property and let it grow, while renting it out for income, using your tax deduction, etc. and then perhaps moving into it again to get the exclusion when you sell?  Just something to think about.  But there are lots of scenarios where it is better to hold on to the property IF you believe real estate is a good investment and I DO.  So, as Realtors our advice comes from our experience and bias', that's just the way it is in any kind of sales.  The clients that are attracted to me want my advice and counsel.  We play devil's advocate, pros and cons and they decide.  It's my job to give them boths sides of the coin.  It's their job to decide which benefits them most. 

That's a five star answer Terrylynn!!!