The Thrill of Victory and the Agony of Defeat!

A major portion of my prospecting campaign is centered around a mail out campaign. Recently I have been mailing out to Owners of Multi-family properties. The campaign has been going well.

Don ( I will call him Don ) responded to one of my letters via email. AFTER trading emails over the next two weeks I ascertained that Don owned a 9 unit apartment building built in the 70’s and that he wanted to sell as long as the offer was at least $700, 000. Don had also said that he had full authority to sell and we agreed upon a commission amount that he would pay and that he wanted to represent himself in the transaction.

Over the next 10 days I identified the right buyer and prepared an offer including lender letter of approval.

I called Don and set the appointment to meet him at his home at 10 am the next morning.

Presentation day and I am all set with extra copies of the offer and was greeted at the door by Don and ushered into the home and after a few formalities began the presentation. About half way through the presentation I noticed some movement just outside through the sliding glass doors in the back yard and flower garden. A lady appears and enters the home. The lady has a bewildered face on as Don introduces his wife to me. After a brief and cordial introduction and a very short disagreement which I did not quite understand (so many things between husband’s and wives are non-verbal) Dons wife retires to the family room.

The offer I have written is for $775, 000 a fair price for the property and well in excess of what Don had mentioned as his bottom line. Don thanked me for the fine offer and that he wanted to take some time to read through all of the fine print and that he would get back to me the next morning.

I thanked Don and his wife for their hospitality and said that I would await his call. ( The Thrill of Victory)

The next day in mid-morning Don calls. The call is short and to the point. Don thanks me for my fine offer but after speaking with his wife they have decided that they do not need to sell and instead have decided that they will keep the property. ( The Agony of Defeat )

Herb Hamilton is alicensed Real Estate Broker in Oregon with RE/MAX Preferred Inc. Realtors

Herb’s cell 503-515-8889

Buyer’s Market This aint No Buyer’s Market

The real estate market in general is a funny animal. The cycles of Highs and Lows can wreak havoc on Buyer’s,  Seller’s,  Real Estate Professionals and the community at large. It is never so apparent though as in the depths of a down market. The Battle cry of the Newsman ” If it Bleeds it Leads” is the catalysist for reporting bad news about real estate. Positive news is also reported but just like the weather report of it being another Sunny day it does not hold the same fascination as does a Tornado ripping through the midwest.

Given the fact that many of the larger real estate markets across the country are experiencing a down market one would have to conclude that the consensus is that it is  a Buyer’s Market. In fact many articles currently being written about the market often lead out with ” In this Buyer’s Market ” or ” Sound Strategies in a Buyer’s Market”. The perception of the real estate market having a Buyer’s market and a Seller’s Market though I feel is false.

What no Buyer’s Market you ask? Here is what I mean. Following sound business strategies in investing in Real Estate ( and we are all investors rather we buy to live in or not ) would say to buy low and sell high. Yet in Real Estate the opposite is usally true. In the last several years arguably one of the best long term expanding markets we have seen at least in the 19 + years that I have been in business. Buyer’s were flooding the market competing against each other and further driving up the Sales price even beyond the often over speculated price. All of this in what was known as a Seller’s Market.

The only way you could convince me that there is such a thing as a Buyer’s market would be to show me the imperical evidence. Such as the number of Buyer’s far out distancing the amount of buyers purchasing in a Seller’s Market. So if there is no Buyer’s Market then there is only a Seller’s Market. It is just that in an expanding market it is a better Seller’s Market than in a Down Market.

What say you?

Portland_Or_Information_and_MLS_Home_Search 

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Why Buy a Portland Oregon Home Now

As much as we would all love to believe in the ability to read the future I suspect that most of us do not have that uncanny ability. If we did then there would be no point in the lottery. So how is it that we make our present decisions for future purchases. Often times it is based on the Media, friends, family, gut feelings and the almighty did it on a whim.

When it comes to major purchases like automobiles and homes, the process most often takes into consideration ones ability to make the payments. Certainly when it comes to buying a new car the emotion of getting into something new plays a big role. Most of us need transportation but we also would like something for our ego’s. Perception is often reality. What are others perception of you should you be driving that old clunker or the new shiny sports model that is all the rave.

Home purchasing is another matter all together. Media certainly plays a big emotional part as well as the ability to make the payment. Ego as well comes into play as we all would want to show others how successful we are. I own a House vs I Rent. So when is it the right time to buy?

Should you buy in a Buyer’s market ( as many people say it is now ) or in a Seller’s market ( as we clearly have been in over the last several years )? I submit to you that the right time to buy a home is NOW. If you are capable of financing you should be owning. Look at real estate from a historical perspective. Do real estate prices go up and down? Yes they do in some areas of the country. It is often a product of wild price escalations in a short period of time. Something akin to 25% or more increase per year. This kind of price increase has no hope of being sustained.

Price ranges in Portland Oregon have had a steady increase of somewhere between 6 % to 9 %. This has been since statistical information on the Portland Oregon Housing Market has been kept. When looking at a snapshot in time the steady increase of property values in Portland have remained constant. Given the fact that prices continue there slow methodical rise, waiting to purchase a home only erodes your buying power.

A home selling for $200,000 today with a 9% a year increase could be worth $218,000 at the end of the year. Is your income increasing at that rate? If not then you will have to buy a lesser home. A few years ago many 2 bedroom homes in Portland could be purchased for less than $150,000. Try to find a listing for one now.

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Why is This the Time to Buy Real Estate

Yesterday I posted an article about the real estate market in Portland Oregon . I expressed my oppinion that it was A_Good_Time_TO_Buy_Real_Estate . A reader challenges that oppinion with a resounding ” are you kidding me ” referrencing an article of the rise in foreclosure rates in Portland and around the country.

It is a good question and one that deserves a good answer. Throughout the entire history of mankind, there has never been a moment where man has bitten off more than he could chew. In todays fast paced society and an eagerness of most everyone to have instant gratification to there life styles, prudent purchases are often over looked. It is quite easy to get caught up in the ” everyone is doing it ” menatlity. That does not mean that it shows fiscal responsibility.

In short there is nothing that can be done to those who have walked to the end of the plank only to see it sawed off behind them.

The percentage of those that have done so is a substantial amount. However the larger percentage of consumers have not and there should be no reason at all for anyone who wants to purchase a home to delay that purchase. Interest rates are still very low, Tammy_Wittren_of_Northwest_Mortgage  a mortgage Broker/Banker specializes in loans taylor made to the Portland Market would be happy to update you with the current rates.

The reasons to purchase now and why this is a great time to buy are for the following reasons :

• The past two years real estate across most of the country has been depressed and in some cases a major decline.
• Real Estate is now begining to show a comeback and a rise in prices in many locations
• For those Sellers who have had there home on the market for a while without an offer , they may be willing to look at strong buyer more than there asking price.
• With the market improving real estate sales prices will soon begin to go up.
• Seeings how the real estate market in Portland has not been affected as the rest of the country, the rise in prices here will most likely be more severe than other parts of the nation.

So just like the stock market the time to buy is when it is at its lowest or close to its lowest. Not after it has already made the turn and you have missed out. For those that have been in the real estate market in the Portland Oregon area for any time can testify to. Once the market begins that upward surge it can make leaps and bounds in the tens of thousands very quickly. Unlike reductions that are done in smaller amounts and reluctanly by sellers.

Is this the right time to buy? The answer is a resounding YES! For as you have seen in my previous post the last 12 months ending in April showed an appreciation rate above 11% in Portland. Using that number only and not any additional percentage that might happen should the market take off again, 11% a year on a $300,000 home is $33,000. Or $16,500 for 6 months or $8,250 for 3 months. So every 90 days you wait you are in effect losing $8,250 worth of buying power.

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How Can IPA Cure the Expired Listing Blues

In the beginning the courtship was short but Sweet. Each and every question was answered  swift and confidently. After a while I stopped looking for excuses or flaws. In fact I could not wait for the punch line.

I was almost to the point of begging ” Please List MY House ” ! Then finally the sweet bliss of the signing of the forms. The firm handshake and that wonderful eye contact that was made at the conclusion.

The memory lingers like the fragrance of wild Honey on a Summers day even though it had been well past 6 months since that first night. What a wonderful night that had been. The anticipation of  first time buyers  viewing my home, a quick sale, the feedback and followup that had been promised.

I suppose it made some sense, that of no activity would make feedback difficult if not outright impossible. Yet as the days began to turn in to weeks I found that more often than not it was I who had to initiate the conversation. I thought it was a Seller’s Market, but then I hear it’s a Buyer’s Market. I don’t know for sure I just want to sell my home.

Indeed as weeks turned to months I could sense the reluctance to take my call. The hurried conversation. I tried to keep up beat sometimes closing my eyes to recapture those early moments of our conversation on the night I signed the Listing Contract.

Is this YOU? Has your listing expired ( gone full term without a sale )? Feeling neglected? Unsure of what to do or who to turn to next in your quest to sell your home in Portland Oregon? How was it you found your agent to begin with? Who should you choose now?

Google me. Just log on to Google and type in Herb Hamilton Broker.

Then Call Herb and Start Packing ! As a Broker with RE/MAX Preferred Inc. Realtors I can show you what went wrong and where to go. I have over 19 years of experience Selling Homes.  Most of which have been right here in the Portland Metropolitan area.

Herb Hamilton is a Real Estate Broker with RE/MAX Preferred Inc. Realtors working in Portland Oregon

                  Home Buyers and Investors Buy A Home or Buy an Investment in Portland Oregon !

                              ” A Real Estate Transaction with Herb is one YOU will Profit from “

http://www.portlandrealproperty.com/ or http://www.hotpdxhome.com/  A Web Site for the consumer full of Local Content as well as Portland Oregon real estate mls Home searches . You’ll also find Portland area school information as well. New Content and Photo’s are constantly being added.

http://www.househuntportland.com/  A Web Site for the home buyer of Portland Oregon Real Estate. Receive updated real estate listings daily or hourly 24/7. Sent by email on a street map with a Photo a Description and an Address.

http://www.portlandflips.com/ An Investors Web Site. Spend your time analyzing the results that will be sped your way within minutes of becoming active in the local RMLS.If your an Investor and You Want Portland Oregon Real Estate Investment Properties then this is your site.

http://www.portlandrealproperty.com/rosecityblog  My Portland Real Property web site Blog. Full of articles reflecting real estate issues, event and more in Portland Oregon and beyond.

http://www.portlandonline.com/ City of Portland On-line. From Parks to Jobs find out about our beautiful City of Roses on Portland Oregon’s Web Site.

Portland_Maps Enter a Portland Oregon address and get a ton of information on the home including maps zoning Sewer etc. Aerial maps included.

Portland_Or._Mt._Tabor_Neighborhood  One of Portland Oregon’s Premier Tree Lined Street Neighborhoods built Around the extinct Mt. Tabor Volcano.

Portland_Or._Laurelhurst_Neighborhood  Crown Jewel of Portland’s eastside, Laurelhurst Park and Neighborhood lies between Mt. Tabor and the Willamette River.

http://www.rebuildingcenter.org/ Link to Portland Oregon’s Nonprofit center for used building materials. If you need parts for that old house come to the Rebuilding center in North Portland’s Mississippi District.

http://www.rejuvenation.com/ Rejuvenation is Portland Oregon’s unique Period Authentic home for full reproduction fixtures and Architectural trim. Salvaged building materials are found here as well.

http://www.hippohardware.com/ Hippo Hardware is another very unique Store located in inner SE Portland Oregon with every kind of conceivable part for you old home. Truly an interesting experience.

http://www.ccb.state.or.us/ State of Oregon’s Contractors and Construction Board. Find out what new laws effect the construction industry. Check on Contractors Licenses and History.

http://www.oregon.gov/REA/index.shtml State of Oregon’s Real Estate Agency.

Oregon’s_Real_Estate_Agency_Pamphlet Learn about Agency . What are a Buyer’s Agent’s responsibilities, what are a Sellers Agent’s Responsibilities. Dual Agency.

Hot Fixer Market in Portland are You Ready

A little less than a month ago I was sitting in front of an Investor who had called me about putting his Rental Property on the Market. I had done all my homework and felt that the property a 1907 Fixer located in the Alberta Arts District of Portland Oregon should sell fairly quickly at the listed price of $259,000.

The prior three weeks leading up to this point in time had been spent in research for value. The property is somewhat nonconforming in a good way. Providing comps was the tough part. The Seller was to give notice to the tenants so that we could begin with a vacant property.

The key to selling Fixers is accessibility for Buyers. They frequently have very tight schedules and will like to see on the spur of the moment.

So as I sat there in front of the Seller I was totally surprised by the fact that no one in the last three weeks had begun the process of giving notice to the tenants. On top of it the Seller was now leaving to go out of town and would be gone for four or five days.

Setbacks like this are an inconvenience, and unfortunately just part of the business. I began the marketing by putting into the MLS and an add on Craig’s list. Within a few hours the phone began to ring from prospective buyers and real estate agents.

I set up the first showings for eight days later. It was all complicated as the tenants did not speak English and I was left to wait until the Seller returned home.

The first showings did not go all that well. I arrived about 15 minutes early to discover the tenants who were supposedly going to open the doors, were not at home. A quick call to the Seller and the twenty some buyers and agents were all left to wait as the Seller made his way to the property from a small community near by.

When he arrived finally he discovered that the tenants had changed the lock and he was not able to provide access. Disappointed several of the buyers and agents began to leave when the tenant showed up and gave access.

A rocky start to say the least. As the buyers began to filter through I had that one on one heart to heart talk with the seller about access. He quickly said that he would produce a set of keys for me as I had previously asked for admitting that he had thought that it would not be necessary even though I had previously warned him.

The first round produced nothing. Over the next few days I began to field calls and set another showing appointment for 4 days later. This time armed with the keys the showings went off without a hitch.

Some two hours later the call came in from a Buyers agent and her client. They had written an offer of approximately $20,000 shy of full price. I gathered up the paper work and made my way towards the office. I had just barely left her side when the phone rang again. It was another Buyers agent and there Buyer had written a full price offer. All cash to close in 15 days after inspections.

Feeling much better now and armed with two offers I made my way towards the office. Once again the phone began to ring. It was Chris one of my long term clients who I had told about the property right after I had listed it. Chris had been busy but wondered if I could meet him at the property within the hour to show him. I told him that I had 2 offers in hand all ready. He said that he still wanted to see the house. I called my sellers and they said that they would not be available until the following morning.

Chris loved the property and after walking outside asked how much it was listed for. I told him the listing price was $259,000. You have 2 offers in hand already he asked. Yes I do.

I will offer $269,000 cash a 10 day closing no inspections no contingencies. Fine I said and began the paperwork. The following morning the Sellers reviewed all of the offers and quickly accepted Chris’s offer.

The Property Closed 3 days ago. I asked Chris what compelled him to write an offer $10,000 above full price. He said that he new there were other offers and that in five years he probably would not remember the difference between $259,000 and $269,000. But he would instantly be angry if he lost a great property over a lousy $10,000 bucks.

When the Fixer Market Heats Up Will You be Ready ?

Herb Hamilton is a Real Estate Broker with RE/MAX Preferred Inc. Realtors working in Portland Oregon

                               ” A Real Estate Transaction with Herb is one YOU will Profit from “

http://www.hot-portland-oregon-real-estate.com/ or http://www.hotpdxhome.com/  A Web Site full of local Portland Oregon information and real estate searches for homes.

http://www.househuntportland.com/  A Web Site for the home buyer. Receive updated real estate listings daily or hourly 24/7. Sent by email on a street map with a Photo a Description and an Address.

http://www.portlandflips.com/ An Investors Web Site. Spend your time analyzing the results that will be sped your way within minutes of becoming active in the local RMLS.