The Search becomes a Quest!

As many of you may know I have been on the hunt for a good multi-family property now for a few weeks in the greater Portland Oregon area for a few different Real Estate investors. As a licensed Broker in Oregon now for some 28 years I have made working with Real Estate Investors the backbone of my business. I am constantly on the search for all types of investment properties. From the larger multi-family projects to the smaller duplex properties. I also look for fixer uppers vacant lots and or just plain old ordinary single family homes that may work as decent rentals. But my recent focus has been on the multi family properties.

This last weeks mailings netted me another potential prospect. An owner who last year had his 4-plex on the market without success. After a brief consultation over the phone the owner invited me to come take a look.

We set a mutual time and as usual I showed up a few minutes early and did the drive through around the neighborhood. So far so good! I met with the owner as we walked through the units I noticed that 3 have the units had been recently remodeled the 4th not yet as it was a long term tenant. We agreed to a price and a fair compensation for my work as this Owner preferred to represent himself.

I made my calls to my investors and Carl was ready to step up to the plate. Two days later after Carl had done his drive by I was ready to write the offer.

I called the owner. The owner said that after conferring with his property management company he decided not to sell as rental rates were going up and it was too good of money to turn down.

Ah the life of an agent is often filled with disappointment. The Quest continues. Surely there must be one person who is willing to stand by their commitments?

Herb Hamilton is a licensed Real Estate Broker with RE/MAX Preferred Inc. Realtors

Cell phone 503-515-8889

Best web site ever http://www.househuntportland.com

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

Portland Real Estate Buyer’s Wait or Buy ?

There has certainly been a lot written about the housing industry in the last year or two. So much so it is difficult for the consumer to make a rational choice. The fear of making the wrong decision is such a great burden that most will choose to do nothing.

Is this however the right choice for you? In Portland Oregon we have enjoyed over the many years a strong real estate market that supports a modest yearly increase in home values. Generally it runs around 6 %. The last couple of years however have ran at about 14%. For some area of the country these numbers would be considered very low. In some markets they have seen appreciation rates rise as high as 50% in as little as 6 months.

The pitfalls of an expanding market in the double digits is that it tends to produce wild speculation. Often times a feeding frenzy much like Auction Fever will follow causing buyer’s to bite off more than they can chew based on the anticipation that the market will continue to expand and that they will all look like geniuses down the road.

Of course we all know that nothing can go up forever as is now being born out in today’s real estate market. In those markets that experienced the high double digit moves, many are now in decline. Some in a severe decline. For those that experienced modest improvements much like Portland the decline is not one of value but one of speculation.

In the past if a Portland property’s market value was determined to be $300,000, Seller’s and their Real Estate agents might speculate that they could get as high as $365,000 as the market was expanding at a rapid rise. Today’s agents know that in this market place following that strategy is a formula for disaster. Today’s properties must be offered at value. If you want to give yourself an edge you should strongly consider a market price lower than market value.

Other wise you may wind up as one of the many owners whose properties sit and sit taking price reduction after price reduction and finally end up as an expired listing.

Does this then make it a good time to buy or not? It is the perfect time to buy. What better time is there when the market is not expanding at double digits and there is a lot of product on the market to choose from. Currently we are running at about 7% increase in the median homes sales price over the last 12 months. That is a slight improvement over the last two months. Is this a signal that we are beginning to make that push back up the ladder to the double digits. Perhaps not right away but one thing is certain, much like nothing goes up for ever similarly nothing goes down for ever.

To find out what the market is like in your favorite neighborhood be sure to sign up for  House_Hunt_Portland where your next home finds you. Your free daily emails will arive at around 5:30 am every morning. Property matches will include Full Listing details with Photo’s and the Address.

Come read about Dawn_and_Andy’s_Home_Buying_Success_Story_Using_House_Hunt_Portland 

The Greatest Market Ever

Ahh the great American life. Where everyone has the opportunity to set and reach their Goals. One of the true blessings of this country and certainly a very real and obtainable goal is one of Home Ownership. But wait isn’t this a horrible time to buy? Every where you look in newspapers, magazines, and on Television and Radio the overwhelming cry is one of despair.

Certainly I am not going to try to tell you that in some markets that it is a fabulous time to Sell your home. I have many friends across this nation that are truly suffering and are faced with some hard decisions specifically when it comes to selling their home. And as hard as it is to see them faced with those tough decisions their plight opens up opportunities for Buyer’s.

For the past several years the escalating real estate market that we were in, I witnessed many people who wanted to buy a home but were unable to as they had been priced out of the market. The lowest prices available were above what they could afford to buy. But today we are in a more Normal Market, and it seems to me that there should be a lot of opportunities for a good deal more buyer’s than there have been in the recent past.

If you believe in all the hype and wait til the market turns around, and believe me it will just as it has for ever and ever, you will miss your opportunity to buy in what should be this decades Greatest Market Ever for Buyer’s.