Tis' the Season...to Sell your house!

With memorial day weekend just a few days away we are officially entering the peak selling season for Portland Area Real Estate that will run through Labor Day weekend. If you had hoped to sell your home in 2007, this is the time to be on the market!

What is the market telling us so far?

a) It is a Buyer's market with prices coming in well below asking. March 2007 to April 2007 showed the first month-over price declines since 2001!

b) Inventory is WAY up. We are looking at the highest inventory levels in years.

c) Qualified Buyers are few and far between. Many investors have bailed, or become Sellers this year. With lending standards getting tighter, would be borrowers can afford less or no longer qualify. California's slowdown is meaning fewer transplants. So many people became home owners the last few years that the Buyer pool has just naturally declined.

I am a Seller, what should I do?

a) Be realistic. Expect a sales price closer 2005 comparative levels, not a premium over 2006.

b) Use competent, professional and local representation. Find a Realtor who has sold in your neighborhood recently and frequently.

c) Make yourself "easy to do business with" by removing obstacles to the transaction before they arise.

I am a Buyer, what should I do?

a) Engage a Realtor who KNOWS the area in which you want to buy. They often have information and insight to previous transactions that are not part of the public record.

b) Get yourself fully qualified with a Lender. Lending standards have changed, and continue to change. Be sure you know what you truly qualify for.

c) Be a tough negotiator, but be fair. Estranging a Seller with an initial offer that is insulting will not get you the best deal.

My outlook for the 2007 selling season in Happy Valley:

Many Sellers will be very disappointed this year with the offer prices, or total lack of offers. There will be many homes that do not sell at all. Builders carrying unsold homes at huge costs will initially be the most aggressive and further drive down values. Sellers who MUST sell because of financial issues, relocation or life status changes will also be very aggressive and help to bring the broader market down. Buyers will end up steering the ship. Those that do buy this year will have the pick of the lot and plenty of time to fully explore all of the inventory and their options. Buyers will be setting the terms for the transactions this year.