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?

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Portland_Oregon_Real_Estate_Investor’s_Web_Site   

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 is Your Real Estate Market Portland Oregon Remains Strong

For the last two years many of my friends in the real estate business did not have much to shout about. Prices were down and inventory was up. For many of my colleagues life was pretty bleak. Recently however signs of improvement have begun to show up in these long depressed markets. A strong Real Estate Market is not only good for agents it is good for the country.

One of the major index’s to this country’s economy is the housing industry. A healthy Real Estate industry points to a healthy economy and consumer confidence. People who feel secure tend to “put down roots” with the purchase of a home. 

Portland Oregon for the past two years has remained virtually unscathed feeling little of the effects of the rest of the country. Although not totally oblivious of the rest of the country’s real estate woes , for the most part our market has continued to grow with only a small curtailment.

The_Portland_Oregon_Metro_Real_Estate_Market_Report_for_April.  shows a dampened trend. Yet the market still is a good market and well priced homes are selling relatively fast with and average market time of 44 to 46 days for many areas. It would be hard to define this as a Buyer’s market yet there are many good buys for the discerning eye. As the market improves in the rest of the country the trend is that Portland Oregon will follow its lead. This may be the perfect time for the first time home buyer or investor in Portland to make their move.

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The Short Sale Nightmare Caught by Suprise

Just about the time that Dan my Investor was trying to figure out how he was going to manage all of the repairs that had shown up in the Home Inspection report for the Older Victorian home on Mt. Tabor in Portland Oregon the Title report arrived with some alarming news. It seems as if the Seller of this fixer upper had created several liens against the property in excess of the amount of the property’s equity.

As a real estate Broker with 19 years of expierience in selling  portland oregon real estate to investors, I know that often times liens that are on a title report are not always relevant. A further search of the liens status and amounts owed would tell the tale. Meanwhile I put a call into the listing agent to see what they knew of the property.

Nothing was the response that I got back. Nothing accept a letter the Seller had recieved from the Lender this morning in regards to default and foreclosure.  I told Dan not to stress that I would call him as soon as the clarification came from the title report. The following morning the title company called and sent me the lien search with amounts owed. The total amount was $60,000 more than the accepted offer of the home. The Lender had issued the pre-foreclosure letter just three days earlier. This is good news as we are in the early stages.

So this leaves us with basically 3 choices. :

1. The Buyer could choose to pay the additional $60,000. (not realistic but an option)
2. The Seller could pay the default amount at closing. ( could but had no money to do so)
3. The lender could be involved and reduce there amount they are owed.

This is what is known as a short sale. Certainly the listing agent should have done his due diligence and known of this potential problem before listing the home for sale. Obviously he did not and we were left to solve the problem now at hand if it could be solved rather than just to point the finger in a blame game.

Solving the short sale problem is different from lender to lender. Reason and rationality are not always part of the equation. Typically the solution will be written down in the lender’s own guidelines and they will often adhere to those policies even if it is to their detriment.

Some of the keys to working with short sales :

• Maintain a positive productive attitude.
• Do not show frustration or try to lecture the Lender as to how you think it should work.
• Suggest solutions and then wait for approval from the Lender before implementing them.
• Find out what the Lender’s policy for short sales is and follow them.
• Make sure you are in direct communication with those that make the decisions. Not just someone who answers the phone.
• Provide all pertinent information about your buyer that will help the Lender view you as credible.
• Make sure you have the complete understanding and approval from your buyer as to the length of time and complexity of this sale.

Next time in Part 2 Dan works towards the prize.

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.

TOP TEN MUST ASK QUESTIONS Before Listing Your Home

The one thing that most Attorneys , Medical Dr.’s and Real Estate Brokers have in common is expertise in their fields with very little Star Power.  I am talking about the type of Star Power that gives you instant recognition and authority. Certainly yourTitle presumes you have the knowledge and ability to carry out the work. How many of us though have been terribly disappointed in the performance of someone we had hired and presumed that they would perform the way we anticipated?

Of the many questions you could ask while interviewing a Real Estate Agent to List and Sell your home, these TOP TEN are a must have for your list.

1. How long have you been in the business? This speaks to experience. Although everyone needs to get their start and experience some where. Do you really want someone practicing on you?
2. Do you work with Buyer’s and Seller’s or both, what percentage? Showing property to Buyer’s is very time consuming. I want to know my Agent will have the time to market my home.
3.  How many Listings do you have. Having other listings can be a good thing as it allows the agent to rotate advertisements from listing to listing so as to not give your home that over advertised feel. Buyer’s can recognize ads that they have called on before. An Agent having to  many listings can cause the Agent to become lazy and concentrate marketing only the easiest of the listings. ( Tip : be sure to call the Agent about a listing they are currently marketing. The length of time and how they respond will tell you allot about how they will market your home ).
4. Will you reduce your commission. Beware of a yes response. An Agent that is willing to reduce commission may be saying to you that they do not believe in the value of their service. How well do you think this Agent will fight for you when negotiating any offers made on your home, especially low-ball offers or those with special conditions attached.
5. What methods will you use to market my home? What is the track record of success for each of those methods? Putting 1 ad in a paper that gets 50 calls and 10 showings is far better than 100 ads in a publication that gets no results. It is definitely not the Cost of advertising but the Results of advertising that matters.
6. Do you have a Web Site and or a Blog Site ? A personal Blog or Web Site is not the same as a generic Web Site owned by the company where the agent works. With 75 to 85 % of all Buyer’s begining their home search on the Web today it is imperative the Agent has a strong web site with the ability to capture Buyer prospects. ( Tip : Log on to the Agent’s site and try it out. How many clicks until you can see a property for sale. Are there lead capture forms on the site asking you to leave your information. Or is the site just a brag sheet and personal promo for the Agent? )
7. What is the Agent’s Sale to Fail ratio, also known as expired listings. Just because the Agent is capable of filling out a form to list the property, does not mean they have done their job. One of the most important factors governing the potential marketing of your home is to get the Listing/offered sales price right.
8. What is the Agent’s Sale to List price ratio? Did they ask you to reduce the sales price during the term of the listing? A good Agent will stick with their convictions and not take over priced listings ( called buying the listing ). That technique ( Tell the Seller anything to get the Listing ) is still taught throughout the industry. It does not stay true to the agents obligations to you their future potential client that of telling you the truth.  Remember this, Buyer’s are not stupid, they are willing to pay a fair price and they have the tools to verify it.
9. How far do you Live from my Home. It is important to get a sense of the Agent’s ability to show your property on a moments notice should the occasion arise. An Agent having to drive over 45 minutes to your home may be less inclined than an Agent living within 20 minutes or so. ( Tip : It is not however, important at all where the Agent’s office is located. Buyer’s are concerned about the location of the house not the Agent’s office. Most of the Top Producers today will not be spending significant amounts of time in their Principal Broker’s office.  Many Agent’s today work from a home office. )
10. Herb, what time can you come out today to list my home? If you are going to choose to work with the best you should check my schedule first for I am always out marketing my listings for Sold.