Buyer's leverage increases

We have been in a buyer's market for more than a year now. Since the buyer's market began, buyers have gained leverage over sellers in negotiations.

Over the past few months that leverage has grown even more substantial because sales have continued to decline while inventory has risen. The problem now is that as inventory rises, sellers have put a lot of "junk" houses on the market. These houses that are in poor shape are usually listed at or close to the price of homes that are updated. Many of these "junk" homes are unrenovated investor properties or foreclosures. Since most homebuyers look at the cheapest homes in a neighborhood first, they are forcing the owners of updated homes to list their properties at or close to the price of the homes in poor shape. This again plays to the advantage of buyers that are actively looking.

In my opinion, this winter holiday season will be the most optimal time to buy this year. This should continue until about February of 2008. We may then see a slight bump in home sales as the spring season nears. For those in the market to acquire a home at a discount, the slow holiday season is the best time to make a deal.

Sellers must disclose defects in "as-is" sale

In this currrent market, there are a lot of properties listed as "as-is" sales. Many buyers are not clear on the meaning of "as-is" and what it may imply.

Selling "as-is" does not protect a seller who lied about the condition of the property or who concealed huge faults that the buyer could not see. They must still disclose "known" defects in the property, they are just not obligated to make any repairs before the sale is finalized.

When buyers take property in as-is condition, they acknowledge that they realize what repairs are needed and have offered below market pricing. But they have not agreed to accepting hidden defects in the condition of the property.