Dave’s Commentary on the Portland Real Estate Market:

• Listed home inventory took a slight bump up to 11 month’s supply, balanced market is 6
• Sale volume decreased over Augest by 25%, slight increase in listings
• Foreclosures are easy to find and continue to be heavy competition for sellers

Portland real estate continues to experience sliding prices.  Fantastic news for home buyers looking to score with 2004 prices in 2010.  Couple that with pheonominal financing rates and you’ve got a recipe for success long term.  FHA rates are still incredible at 4% and give first-time buyers their best option for low down payment.

Beaverton and Hillsboro real estate have seen slower sales rates now that school has started.  Projections are for prices to edge down slightly further by end of 2010, possibly another percent or two.  At the moment we’re looking at a 11 month supply of homes for sale.

Good news for landlords as rental prices are definitely on the rise.  It’s possible to purchase investment property in Portland and have it cash flow right out of the gate.  Unheard of in recent years.  Renters are having to scramble a bit to get the good homes.  Investors that keep rates slightly below competition will experience significantly less than a default 5% vacancy.

A recent investment property in Hillsboro turned over with a 9.2% cap rate.  Cash on cash return was over 10%, calculated with zero appreciation.  Wow!  Now is the time to get into investment housing around Portland, Beaverton, Hillsboro, Lake Oswego and other surrounding areas.

Sellers will continue to be frustrated with market performance and are best advised to incorporate staging and décor enhancing options to make that listing jump from the competition.  Realtors represent the market, not seller’s relationship with their equity.  Tough pill to swallow for sellers but the market will improve over time. 

Houses for sale in Portland are selling under the cost of construction.  This market will recover eventually and those whose purchase in 2010 will see a good appreciation over average home ownership time period.  Home ownership pans out on average when people stay in the house more than 4 years.

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home in anywhere in the Metro Portland area, use our FREE Exclusive Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

Relocating to Portland, Oregon? We can help. Click here.

Portland’s real estate market is not bad. Buyers of investment properties need to take advantage.  Want a competitive edge?  Better be on top of the new listings.  Most websites offer automatic email functions.  These can often be set to send immediately as new property listings become available but some only send once per day.  Only looking once per day may not cut it when competing for hot properties around Portland Oregon neighborhoods.

How can buyers have first shot at the good deals?  Reality is that 99.9% of real estate transactions happen through Realtors.  Hook up with a good one.  Agents working with investment property buyers need to stay on top of new listings and do market research immediately as houses become available.

What’s a good deal for investors?  Take a look at Portland’s west side for example.  Beaverton homes and Hillsboro neighborhoods often offer better cash flow than those found elsewhere.  When looking at the home purchase consider what sort of expenses are attached directly to PITI (principle, interest, taxes and insurance) and what neighborhood rents are.  Entry level homes offer much more bang for the buck than higher end, rental wise.  Rents on a 1200′ 3 bedroom 2 bath detached Beaverton home are running around $1100/mo at the moment.  Figure a good price for such a property might be $175k.  Compare that with cash flow on a $350k home where rents may be $1600/mo.  You do the math.

Competitive nature of investors.  Being first to the table with an offer is key.  It’s almost better to shoot first then aim in this market, you’ll have opportunity to bail out later.  I’m referring to red hot bank dumped properties here and not average run-of-the-mill real estate.  Hot properties like ones priced at $90 sq. ft. vs. the neighboring ones selling around $150.  These will be bank-owned foreclosures in Portland and surrounding areas, and they’re marketed through agents just the same as any other property.  I’ve seen several in the last few months around Beaverton and Hillsboro, they do exist.  Jump on them the same day they hit the market.

Sitting on the fence. At any given time there are a ton of buyers who say “wow, that was a good deal.  I’d have bought that one… if I’d known about it.”  The only reason buyers don’t know about it is because they (and their Realtor) are not paying attention.  Countless would-be investors sit on the fence analyzing a particular property while another savvy investor snatches it up.  That way the little kid mentality can kick in; That guy wants it, now I really want it.  Not all properties listed in RMLS are still available, some are awaiting bank paperwork before listing a property as “pending” in the system.  Dilly dallying doesn’t pay!

Proximity to Downtown- If you’re looking to relocate to the Portland Metro(politan) area there’s probably a reason and it’s most likely job related.  While our unemployment rate is blazing ahead of the rest of the country at 12.1% currently.  Several factors figure in to that number.  One is that Portland Oregon is a fast growing location and many relocatees move before securing employment.  Also, keep in mind that even in the best of times we tend to be ahead of the pack… maybe it’s just due to all the cool entertainment around.  Who has time for work?

Portland’s downtown area is a hub of entertainment both day and night.  Art, culture, open-air markets and the Willamette river provide attraction.  Distance to these and other recreation tend to be on the top of people’s lists when relacating.  Map searches are invaluable when it comes to home choice.  Find your ideal happy medium between work and entertainment, then map search homes for sale in target areas.  Search homes for sale using map based queries like www.maxwellsinclair.com/portland_mapsearch.php

Transportation – Portland is very progressive with it’s public transportation system and planning of such reflects the overall goals, keep it green.  Preventing urbal sprawl is what the urban growth boundary is all about and detailed transportation planning makes vehicle use optional.  In addition to busing systems there’s a light rail train (MAX train), streetcar (downtown Portland), transit mall (new trolley in downtown opening soon), sky tram (South Waterfront to OHSU) and commercial rail train (WES, Beaverton to Wilsonville commuter).

While not in existence yet the east side (Milwalkie) will be connected by MAX within a few years to downtown Portland.  There have been rumors about connecting Lake Oswego to downtown but that’s not going to materialize in the near future… check out www.trimet.org for proximity to public transportation.

Walking Score – Pretty cool idea that someone came up with recently.  www.walkscore.com rates addresses based upon several factors and their proximity to convenience.  Higher score means potentially less use of the car.  Leading areas in Portland are the NW District, The Pearl, South Waterfront, and Cultural/University Districts.  All receive scores near 100.  In fact, talking with downtown condo owners you’ll commonly hear things like, “ya, we went down to the parking garage to see if our car was still there since it hasn’t been used for a month.”

Convenience is a big factor in the overall equation.  Choosing the right Portland neighborhood for your home purchase doesn’t need to involve numerous plane tickets with desktop research whittling down the field.  In addition to these 6 websites finding a good Realtor will also help significantly… probably goes without saying, right?

For more on Portland Real Estate, check out www.Maxwellsinclair.com.

So, you’re relocating to Portland Oregon.  That’s awesome!  About 3/4 of Portlanders were either born here or relocated.  The other 1/4 were not sure about… just joking.  Attraction to this area can be attributed to several factors including entertainment, culture and cost of housing.  Believe it or not we’re ranked in the top 5 relocation destinations for the nation!

This blog focuses on Portland real estate and as luck would have it so will this article.  Surprise, surprise.  Coming from out of town has it’s difficulties so much research often takes place long distance before finding a suitable neighborhood to buy a home.  Here are 6 big tools to help with neighborhood research:

School ratings.  Whether or not you have kids is not the point.  Schools are one of the easiest ways to determine whether neighborhoods are going to be a good match.  There’s a fantastic website (www.greatschools.net) that rates schools on a scale of 1-10, 10 being the best.  Elementary schools pull from a small radius.  RMLS lists elementary schools as a required field.  Even the laziest agent has to fill in this information before a home listing goes public, therefore, house searches can be centered around specific schools.  While a home’s elementary school rating is not everything, it is a reflection of community.  Better school rating, nicer neighborhood.  Check it out if you’re familiar with a particular school location in the country and see for yourself, this is a national tool.

Very few neighborhoods in Portland actually feed into “10″ rated elementary schools.  Bethany, Cedar Mill and Laurelhurst are the only ones, last time I checked anyway.  Lake Oswego/West Linn ranks top in Oregon too, but it’s a suburb-type city.  Some of Beaverton’s schools are rated well too.  It’s amazing that within only a few blocks school ratings can vary significantly, so do the neighborhoods.

Food Shopping – QFC, Whole Foods, New Seasons, and other high-end grocery storesare an indication of neighborhood quality.  Also, check out Starbucks.  They put alot of research into store locations and won’t plant one in a sketchy area.  Stores mentioned above can only thrive in certain areas, areas of higher income mainly.  Money isn’t everything.  Check out crime stats, income levels and other census information at www.portlandmaps.com but look at grocery shopping more than just shopping.

Pictures – Every Realtor is now required to upload at least one front shot of the listed house within a few days of input into RMLS.  Searching Portland homes for sale from a distance has it’s hurdles, especially when not familiar with the city or surrounding locations.  Want to know what a neighborhood really looks like?  www.maps.google.comwill put you right in front of the house you’re looking at online.  It’a a tour right from your desk.  Pan around, look at surrounding homes, see how many cars are parked on the neighbor’s lawn, how many washing machines are on their porch?  www.earth.google.comhas similar aerial shots.  Many times, there’s waaay more to the story than what RMLS pictures stratigically leave out.  How close is the subject property to commercial buildings, apartments or a freeway?  Value is affected by such.  This is a great tool!

Visit the website for Portland relocation, Portland neighborhood information, and Portland homes for sale throughout the metro area.  www.maxwellsinclair.com

Dowtown Portland Oregon neighborhoods are feeling the same squeeze as other outlying areas and suburbs.  There are several condo developments in the South Waterfront; Meriwether Towers, Atwater Place, and The John Ross.  All buildings offer luxury living in this up and coming location.  Sweeping views of dowtown, Mt. Hood, and the Willamette river are features that can’t be matched elsewhere.

Meriwether Condo

Portland Development Commission has grand plans for the area, located just south of the Ross Island Bridge along the Willamette river, and has been projecting 1000′s of future jobs.  With convenience to all endless downtown art, culture and dining location is everything. The South Waterfront is connected by street car making transportation easy and vehicle ownership optional.  Construction began in 2005 and both Meriwether buildings sold out very quickly.  Rapidly increasing real estate prices drove speculators into the area and great profits were common for those who purchased pre-completion and immediately resold 6 months later.

That was then, this is now.  Guess what’s available today?  Deals!  Occupancy is hovering around 50% altogether.  John Ross is about 60% sold and Atwater Place is currently 30% sold out.  Supply is in abundance and some speculators/investors who purchased in the Meriwether Towers are being forced to sell in this down market or face foreclosure. Check out RMLS 8112599.  It’s a 3100′ luxury condo with Mt. Hood and Willamette views, offers 2 large balconies, 3 parking spaces, 3 bathrooms… the list goes on.  All for a list price of $979,900.  This same unit sold for over $1.6m in 2006!  Keep in mind that Portland prices have dropped about 15% from peak and this place is offered at 40% less than it’s previous sale.  WOW!

Not all foreclosures make a great investment so here are 3 suggestions for evaluation of  property:

1. Run comparable sales within a 1/4 mile radius, and more specifically, only those with the same legal description.  Every subdivision gets a legal description for identification purposes in public records.  Let’s say you’re interested in purchasing this condo in The Meriwether Tower. Running comparable sales in the Atwater or John Ross building is a good comparison for the South Waterfront area but if you want to gauge the potential purchase a bit more accurately search only legal descriptions with the word “meriwether.”  Same theory applies with Beaverton or any Portland neighborhoods.

2. Look at the tax record.  Although property taxes are not based upon sale price the assessor’s no slouch when it comes to real estate value.  I’ve found their opinion of market value somewhat helpful as another angle when gaging investment potential.  Records are updated every couple of years so, depending upon what current market conditions are, an adjustment factor needs to be figured.  Current sales are running somewhere around 15% under tax market value… just a quick rule of thumb for the moment.

3. What does Zillow.com say? Type in the address and find out what their “Zestimate” shows.  Although you have to take everything it says with a grain of salt they do have great algorithyms giving theoretical value based upon several factors.  It provides another bead on the deal anyway.

Review of all three factors on RMLS #8112599 show this:

• Comparable sales are running around $383/ft for sold listings, $402/ft for active.  Our subject is priced at $313/ft
• Tax assessor’s opinion adjusted 15% puts value over $1.3m
• Zillow.com calculates current market value at $1.5m

RMLS 8112559, courtesy of Philip Higgins

All 3 factors weigh in on the equation and heavily tip the scales toward $980k being a screamin’ good price!  This particular condo listing has entertained numerous offers and will most likely close slightly above asking price.  It’s not that buyers don’t have money and can’t get financing, it’s that they’re waiting for bargains like this to take advantage of.  Homes for sale in Portland priced agressively move quickly and buyer outlook for the near future is amazing.  Opportunities will not last.

For more information on the Portland Oregon real estate market and homes for sale please check out www.maxwellsinclair.com!

OK, have to comment on recent influx of hype regarding how fantastic lease options are.  Since investments in Portland real estate have chased the national numbers we knew that there’d be new schemes making headlines and sure enough, The Oregonian newspaper picked up on it.  Interesting that this subject comes up more prominently while house sales are slow.  Maybe there’s a reason?

A quick overview of lease options

Agreement is made between buyer/tenant and seller/landlord.  Buyer may come in with zero down or thousands to “purchase the option.”  Seller is essentially renting his home for a premium in rental payments and contributing this premium amount towards buyer’s down payment.  At the end of the lease term, say 12 months, buyer has an option of purchasing the house for a preset amount.  Should buyer choose to not exercise his option he forfeits down payment and/or rent premiums.  While contracts can vary significantly, this is the overall premise.  Buyer is purchasing the Option to Purchase, it’s not free!

Why do a lease option?  From a prudent financial or conservative buyer standpoint… beats me.  From a seller/landlord standpoint, go for it.  These definitely benefit the seller in our current market.  A few years back this scenario may have benefited the buyer… maybe.  Though, in a hot real estate market why would a seller jeopardize an immediate sale by taking a risk on lease options?  He probably wouldn’t and that’s why these deals weren’t around in 2005 – 2006.

Immediate gratification

Many Portland home buyers choosing this avenue are doing it for one reason.  Financial issues.  Most likely that financial issue means not qualifying for the purchase, waiting for another house to sell, or bad credit.  Here’s a stretch; The best reason for obligating yourself to a lease option is that a particular house is so incredibly perfect that nothing like it will ever be available in the future, it’s one in a million.  Not leveraging yourself further would be catastrophic!  Now, how many buyers fall into this category?

The sales pitch

1. Get into a house while cleaning up your credit.  Lease options do get you into a house, at significant cost.  If you’re cleaning up credit could this money be applied towards the credit problems, accelerating a good credit rating?  What if mortgage rates go up before credit is repaired and buyer still doesn’t qualify?  Lease option money is out the window.

2. Get into a new house while waiting for your old house to sell.  Lease option again gets you into a new house.  One of the risky things about Portland’s current real estate market is that selling a house is not a quick process.  Putting the cart in front of the house is part of the reason we’re in this housing predicament.  Buying before unloading the old property means double mortgage payments.  If you really have to move into a new place, rent (with no option).  Payments will be lower than those with a lease option.  Plus, if the market does slide another 10% in 2009 then that option price originally set is not going to be very attractive!

3. Get into a new house while building landlord/rental history.  This was a new one to me but recently had to hear the pitch from a mortgage broker on why lease options were a viable avenue.  Theory is that lending guidelines have tightened and banks are requiring that keeping an old home as a rental requires it’s track history to be 6 months long before rental income can be counted.  Again, if you really have to move into a new place, rent first.  You’ll be money ahead on a monthly basis and in 12 months you may not even want the house you’re lease optioning!

Opportunities to buy a house in Beaverton, Lake Oswego or anywhere around Portland’s metro areas have never been greater but think twice about doing it via a lease option.  For more information on Portland real estate visit our website.   www.maxwellsinclair.com

Looking to score on awesome foreclosures or short sales in Portland Oregon?  Watch out for that middle-man fee!

Recently I had the pleasure of dealing with an interesting situation.  This involved a pre-foreclosure property for sale in Beaverton.  Although it was listed in the RMLS there were additional buyer “fees” involved I found out about after talking with the listing agent.  Although additional “negotiation service fees”, or whatever you want to call them, are not too uncommon these days it is something to watch for and I’d be interested in hearing other’s opinions regarding ethics of such.

My example came when a buyer was searching houses for sale in Portland Oregon.  He came across what looked to be a fantastic deal but was disclosed as a short sale (bank would have to approve sale price and deal with a lack of loan payoff).  I found out from the listing agent that there was middle party involved with the seller who, apparently, had a contract for purchase (option to buy at a undisclosed price).  This middle party wanted $15k to buy out the option and had no intention of actually acquiring the house.  Purchase by my buyer could not move forward without getting this party out of the picture.

Justification for paying the $15k was “negotiation work done with the bank.”  There was work done with the bank, yes, and they had come to an agreement with lien holders.  OK, great.  Was it $15k worth of work or just someone trying to make a quick buck off of a real estate transaction?  Remember, this middle party had no intention of actually aquiring the property.

Here’s a rundown; Buyer writes the offer, seller approves, middle party approves, then it goes to the bank.  Bank asks for a HUD 1 sheet (balance sheet more or less).  Bank now sees that $15k of the purchase price is going to a middle party and essentially not only are they dealing with selling short of what’s owed on the loan but an additional $15k shortage.  The bank has to potentially choose between selling short, foreclosure, counter offering, or relisting the property hoping for a better offer.  What’s the most cost effective route?

Tough spot for the bank.  They’re up against this situation more often than the general public realizes.  Ethics conversations between people in our real estate industry are strong in regards to involvement of middle parties.  Ulimately, as long as the buyer gets a good price for the house he shouldn’t care.  It’s the seller/bank side that has to deal with distribution of sale proceeds.  Many feel that it’s part of the listing Realtor’s job to deal directly and negotiate with banks, no middle party involvement.  Points are made that middle parties are taking advantage of an already bad situation involving home sellers near foreclosure.

What do you think?

For tips on dealing with Portland foreclosures and Portland short sales visit our site at www.maxwellsinclair.com.

Most home buyers have the same goal; Get a great price on a good property!  So one of the popular ideas is that you’ve got to get your hands on a foreclosure list.  Buy it from direct from the bank and save tons of money over retail.  Sounds like a super plan but are you willing to do the work?

Searching the MLS

Truth is that searching homes for sale in Portland, Beaverton, Lake Oswego or other areas is done pretty much one way, online.  Portland’s MLS system (RMLS, regional multiple listing service) is the source for 99.9% of properties advertised for sale.  Whether it’s John L Scott, Prudential, RE/Max or whoever all listings are input into RMLS.  From there the information is just redistributed to everyone’s website.  Foreclosures (bank owned properties) are typically no different.

Banks work with local Realtors to get their properties sold at fair market value as soon as possible.  Dumping them to a handful of cash buyers on courthouse step doesn’t do much for the sale price.  List them in a MLS and these properties will get a million times more exposure, bumping up the sale price.  If you’re searching online properties for sale you’re already getting the vast majority of foreclosure listings.  This may not be overly apparent because buyer’s generally don’t know who the seller is.

Portland foreclosure lists

Yep, they’re all trying to sell you something of public record.  Foreclosures are out there but today more than ever and a few of such are purchased by full-time investors for cash on the courthouse steps.  You’ve got to be there with certified funds (10% minimum in cashier’s checks) to even participate.  Seller’s (banks) won’t wait for the lucky bidder to secure conventional financing and close weeks later.  Good luck easily finding a published list outside of what’s already in the MLS.

Notice of Default lists

NOD (notice of default) lists are the only thing I know of distributed for free.  These are public notices of people who are at least 3 months behind on mortgage payments.  Lists are distributed by the title company and are the first step to potential foreclosure.  Cash buyers, Realtors, and property solutions people promoting “win-win” garbage all prey on these homeowners.  It’s a full time job for people choosing this route (trying to capture a potential easy buck) and what they’re promoting is to “save the homeowner from foreclosure.”  Some chasers are legitimate (Realtors for the most part), others not.  I’ll argue in depth about the scammers out there if you want to listen…

Short-Sale Listings

In reality these days the majority of properties go through short-sale negotiations (bank agrees to work with a seller and take a loss rather than go through the more expensive foreclosure process, losing even more $$).  Properties are listed in the MLS and you’re already seeing them within the set search parameters if they exist.  Bank representatives generally don’t give the properties away as urban myth would have you believe.  By far the majority of foreclosure and short-sales sell through Realtors on RMLS.

Summary

Late night TV is great for promoting a bunch of trash.  But if you’re willing to make it a full-time job… you may get lucky eventually.  There are easier ways of accomplishing the same goal and getting a good deal.  Contact a good Realtor in Portland!  Keep in mind too that foreclosures generally come with cosmetic or bigger issues, especially in our target price range.

I’m wrapping up my 6^th yr in real estate and figured out long ago that this avenue was a giant headache… and I love doing rehab!  Out of the thousands of people I’ve talked with about real estate I’ve met 2 folks who’ve actually purchased foreclosures on the courthouse steps and know that the one guy was barely breaking even after all was said and done.

Investigate Beaverton, Hillsboro, Tigard, Lake Oswego and Portland neighborhood information at www.MaxwellSinclair.com , we’re happy to help!

Many properties in the marketplace today fall within one of three categories peaking interest of investors/rehabbers.  Foreclosures, short sales and listings labeled as fixers.  So, which one will provide the greatest potential as far as return?  Property analysis is same regardless of the selling situation.

Here’s a fairly typical case study

Yesterday I went out with clients looking at an entry level project house for sale.  It came on the market that day and was listed at $169k.  Wow!  Houses in Beaverton listed for that price draw attention.  Very few properties for sale even come up under $200k (detached homes).

Looked like a decent deal at first glance.  Hey, you can practically break even on payments with 20% down using it as an income property.  Pretty interesting, on paper…  We arrived at the home and it did match the pictures a little too well.  Blue roof of several layers, single pane windows, cheapest sheet siding known to man, and best of all… trashed.  Rather bummed on this find.

After quick review of the surrounding homes and overall condition of the neighborhood it was estimated that resale in average to decent condition would fetch around $190k.  A rough guestimate of rehab costs was an easy $20k as long as sweat equity was involved and not 100% contractor labor. Question then is; At a list price of $169k is the home worth purchasing strickly for potential gain?  In my opinion there are more lucrative forms of real estate investment out there.

Taking a look at overall investment costs, just rough numbers:

Loan and closing fees: $6000

Carrying cost during rehab: $2000 (figure two months)

Material and labor costs: $20,000

Total investment: $28,000

From $169k add this $28k and we have a product that most likely isn’t going to sell for the money spent.  If a buyer is looking at keeping as a long term rental or primary residence it’s not too bad.  For $197k you’ve pretty much got a new house but for immediate resale… dream on, there’s no money in such.

My guess is that this particular piece of Portland Oregon real estate is not going to sell in it’s current condition for much over $160k and it’ll take a couple of low-ball offers to convince the seller of such.  Still, if you’re searching for fixer type houses for sale in Beaverton, Hillsboro, or any other Portland metro area you can do better.  Look for key words like “fixer”, “short sale”, and “foreclosure.” Check out the website and search all RMLS listings for free at www.maxwellsinclair.com.  Great investment opportunities are available with a little searching!

It’s a buyer’s market here in Portland Oregon and everyone knows it.  Prices have changed dramatically over the last year or so, home buyers can reap big benefits.  While exactly where the market will land is unknown one thing is certain when looking at history; It’s a better time to buy now than within the last three years!

Here are a couple of buyer tips:

1. Look at the comparable recent sales and make an offer lower than perceived market value.  Notice that I didn’t say lowball the heck out of 20 houses.  This approach is a giant waste of everyone’s time for the most pat.  Comparing current sales data is required, regardless of market conditions and most everyone does it.

Let’s say for example that you’re looking to buy a house in Beaverton Oregon.  Comps on the house of choice point to market value being $300k.  Given current real estate conditions a realistic offer may be $280k.  Most sellers will probably counter at a higher price.  Stick to your guns and counter back with original offer price.  Leave the ball in the seller’s court.

2. Don’t get emotionally attached to the outcome.  This tactic will suit you well in the long run.  People tend to pay more once they’ve mentally moved into a house and started arranging furniture.  Look at home buying from two standpoints.  It’s a place to call home and an investment.  Money is made on the purchase not the sale.  Disengaging from the outcome of your offer keeps the decision more business like.  So a seller doesn’t accpet your offer.  Big deal.  Plenty more to choose from!

3. Knock the price down after inspection.  Some buyers want to play hardball and really push for a lower purchase price.  Others would prefer a softball approach.  It’s up to you and your Realtor can address either avenue.

Once home sellers come to an agreement arrangements for their move become more solidified.  Much of this goes back to emotions.  Mentally, they’ve sold the house and are moving on.  Buyers control transactions for the first few weeks and it’s up to them to continue or potentially walk away after inspection.  Seller options are limited.  Typical inspection periods run 10 business days here in the Portland Metro area.  Pushing inspection negotiations towards the 2 week deadline gives sellers more time to move foreward with their plans.  Remember, they’re selling because they want something…

Get that professional home inspection.  Minor or major, suggested repairs show up 99% of the time during these closer looks.  One of the most common approaches is to get contractor bids for such repair points and go back to sellers asking for a price reduction (compensating for repairs costs).  Who says it has to be a dollar for dollar reduction?

Buyers willing to play hardball can come back with a take-it-or-leave-it approach.  Asking for additional money to compensate for (insert additional excuses here) house/market shortcomings is an aggressive approach.  Sellers will be ticked but they’re faced with a choice.  Move on with bird in hand or risk putting their home back on the market only to weather additional market downturn or potential repeat of a similar offer.  Tough one…

For the most part experience says that the majority of home buyers take a balanced approach and ask only what is perceived as a reasonable repair cost.  Price still goes down in the end and buyers can address non-critical repairs at their leisure.

Additional Portland Metro area home buying tips are available at www.MaxwellSinclair.com