Serious Buyers . . . But are they Realistic??

Having worked for many years as an EBA (Exclusive Buyers Agent), I've developed a "Sixth Sense" when it comes to buyers . . . potential buyers, problematic buyers, serious buyers, realistic buyers, and even those unrealistic ones. You know, they want the $400,000 property for $300,000.

There's nothing wrong with dreaming! I do it all the time. But, when I'm working, I don't have a lot of time to devote to buyers who are just dabbling in what they presume to be a "HOT" buyer's market.

The problem begins when buyers listen to the nightly news. The gloom and doom, dire straights of the real estate bubble. True, in many areas this bubble did pop. But always remember, real estate is local -- remember the old adage of "Location, Location, Location!"

It's TRUE!!

Locally, here in the Metro Portland area, we're not doing so bad as . . . hmmmm . . . Stockton, California.

What I find is this:

Higher priced homes will sit longer on the market. Reason: It's always the first time buyers who make up the bulk of the buying market. And right now, anything priced under $250,000 seems to be selling pretty well.

Style of homes very often determine selling times. Those tightly fitted condos/townhomes are not as "hot" as they were two years ago.

The amount of INVENTORY of the local, current market is keeping prices down, more then any other factor and/or condition.

Condition of the property plays a big factor. A home that is move-in ready, priced within reason will not sit long.

Now, toss in the "expert" news reporters, the arm chair quarter-backs who "play Realtor" because they can open up a Zillow file, and the Bloggers who love to pretend they know real estate . . . all those folks who DO NOT make their living in the trenches, as I have done for the past 10 years . . . and everyone is insisting that low ball offers, short sales, foreclosures are going to make them the next Donald Trump. Everyone wants to bargain.

The reality is, that in some cases, sellers are getting their price.

Say you're a seller and you've priced your home at $349,000. One month goes by and no offer, so you reduce it $10,000. Another month . . . another $10,000. Three months goes by, and now the property is at $319,000.

All of a sudden the place is being shown. It's getting activity, and even a few buyers have re-toured the place. This means that the seller has found their "price." The price the market will bear. Remember, real estate is market driven.

Now with the price at $319,000, someone comes along and notices the three months the property sat and decides to make an offer. They offer $304,000 . . . $15,000 LESS then list.

But in the seller's mind, they've already dropped the price $30,000 and the additional $15,000 the buyer wants to knock off isn't sitting well. From the seller's point of few, the "DEAL" is that the buyer is getting a house for $319,000 . . . and in any other market it would have sold for $349,000.

There you have it. That's the deal! Not low-balling the $319,000, but understanding where the property started off at.

Keep in mind, the Metro Portland market didn't have the same leaps and bounds as our West Coast counterparts did. A bargain was still to be had here, even when other markets were spiraling upwards -- San Diego, San Francisco, Los Angeles, Seattle -- Portland, OR was still underpriced compared to these markets.

So when you analyze the market now, and try to compare -- even to the West Coast markets -- keep in mind how localized it can be. And try to be realistic.

If you're buying in the Metro Portland market, and you are comfortable with the property, it's priced within YOUR budget and you want to call it home, try to get the best terms and conditions available. But don't be surprised if that low ball is looked at as an unrealistic offer.

We're not flat-lining here.

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