Real Estate Resource

Ok, this was written by a Real Estate Broker in Phoenix, AZ , but the basic concepts definitely apply to our present market.  It’s a “Buyer’s Market” and I’m looking for opportunities to realize in the present Portland area market…jj

TOP TEN REASONS IT’S A GREAT TIME TO BUY REAL ESTATE!

by Paul Pastore

1. Selection, selection, selection.  there are an abundance of resale homes on the market in the area.  Regardless of the price range a buyer desires, thee are plenty of houses from which to choose.  Just a few years ago the resale inventory dropped very low.  a buyer was forced to make compromises if they were going to locate the home of their dreams.  There is a great selection of detached homes, condos and townhomes.  There are lots of options in this market.

2. No Bidding Wars.  In 2005 we had many clients that made offers on multiple homes only to be disappointed.  Other buyers often bid the properties up substantially from the original listing price.  There were escalation clauses where buyers authorized their agents to outbid other offers made.  There is seldom competitive bidding in this buyer’s market.

3. You can make an offer.  A few years ago when you made an offer, usually the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table.  Today the sell price list vs. price ration is about 96% (differs by locations).  A seller will not be insulted if you make an offer.

4. Patience is tolerated.  In the hot seller’s market that existed everything was rushed.  Find a house before other buyers did.  Hurry up and make the offer.  Today a buyer can take their time.  Look at several homes and think about your decision for a few hours.

5. There are plenty of new spec homes.  In the not too distant past a buyer had to “play games” if they wanted a new home.  There were lotteries and waiting lists in order to obtain new construction.  Some buyers slept in their cars in order to get to the head of the lines in some areas.  Now builders are offering incentives and making deals.

6. Due diligence is welcomed.  In this market a buyer is encouraged to obtain a home inspection and any other inspections deemed necessary.  In 2005 some buyers waived these contingencies in order to gain an advantage with multiple offers.

7. Repair requests are welcomed.  After a buyer completes a home inspection, they are allowed to submit a repair request to most sellers.  In the past a seller might insist the home was sold “as is”.  Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.

8. Few, if any investors.  It is estimated that one third of all sales in 2005 were to investors.  These non-owner occupied buyers caused the market to inflate and affordability to decline.  Mortgage fraud became somewhat commonplace in some arenas.  It’s a great time to buy without having to compete with hundreds of prospective landlords.

9. Location, location, location.  Today’s buyers can find homes closer to work.  In the past buyers were forced to move out further to find affordable homes.  In the market, reasonably priced homes are more in line with buyer’s lifestyles.

10. Real financing is available.  The “wink, wink” zero down, no doc, adjustable, sub-prime loans are still available but with more stringent guidelines.  Fixed rates are back.  FHA financing, first time homeowner bond programs, special loans for teachers & police officers are back in business.  It’s a great time to buy real estate!!

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