Portland Metro/Tigard Real Estate News

In this forum we will offer discussions on a wide variety of subjects, but focus on Portland Metro and real estate. Hopefully our insights and experiences will inform, educate, challenge and entertain our readers week after week.

Tuesday, September 2, 2008

Buyer's Market

There is no doubt that we are in a buyer's market. A rock-bottom price just isn't enough for buyers these days; they're just getting warmed up. If you have your house on the market, offers are not pouring in and buyers know it. Demanding new furnaces, new carpet or new air conditioners is not out of the questions. In fact, there's a good chance the buyer will get it. Because the thing is, if one seller doesn't give it to them, the next will.

This is all on top of the closing costs that the sellers are forking over. Buyers were getting the short side of the stick a couple years ago where they were over paying and couldn't ask for anything, now it's their turn. Repaved driveways, one year home warranties and trips to Hawaii are practically being handed out.

Back in the days of the seller's market a buyer could not even make the purchase contingent upon the sale of their own home, the was just too much competition. A lot of people gave up their earnest money when they had to fall out of the deal.

Now buyer's are including all kinds of contingencies. Availability and cost of home insurance, availability of high speed internet and other services are some examples of contingencies buyer's would not have dreamed of in 2005. They were barely allowed a home inspection before, now it's radon, lead-based paint, roofs and fireplace inspections.

All this is after being negotiated down to the rock bottom price, sometimes way below what they had paid themselves.

Naturally the seller will be paying all the closing costs as well. Any seller who doesn't believe or doesn't know that it is a buyer's market will find out fast once negotiations start. They may even find out before that when no offers come in at all.



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