The Portland Condo Blog

Latest

A Classic Overpricing!

Back in March I wrote about a luxury condo that came on the market that I said was “way” overpriced. In fact. I took a little heat for my comments about that listing! This particular condo at The Casey came on the market for $1,699,901. When I ran my comps on that unit at the time the market value I had was $1,350,000. In my article I wrote about the potential problems with overpricing a unit so much. What I said what would probably happen is that the condo would stay on the market for awhile with little to no showings and then the agent would have the owner drop it $100,000. That would still not be enough so they would again drop it another $100,000. Then what would probably happen is it will get “Stale” on the market and when it does get an offer it will be a lowball offer!

Here is what actually happened with that condo:

It was originally priced at $1,699,901. After a month of no interest, the owner dropped the price $100,000. After another month had passed, and no interest, the agent had the owner drop the price another $100,000…now down to $1,499,000. After another couple months they finally got an offer ( yes a lowball offer) and it closed finally after 6 months on the market at $1,315,000, or another $184,000 off of the most recent list price!
The Casey Condominiums

Now I didn’t have a crystal ball that told me exactly what was going to happen, but I have been in business long enough to know that this was a classic overpricing and you could just feel what was going to happen. At the time it originally came on the market, inventory was low. While I said the market value was $1,350,000, the owner probably could have pushed the price to $1,400,000 and ended somewhere between that number and $1,350,000. While the owner, at the end accepted an offer for $1,315,000, his end number was actually worse because of his cost to carry. While it was on the market for 6 months, he still had to pay property taxes ($916/mo.) HOA fees ( $1,067/mo.) and mortgage payments ($5,000/mo.) total additional cost of $41,900 netting him an actual number of $1,273,100 before actual closing costs.

As a good listing agent, I always want to maximize the total return to the seller and I will always try to push the price for my clients. I am not an agent that promotes “SOLD in 2 days!” because that in my eyes is not always a positive! There is a fine line between pushing the price a little and overpricing a unit. In pushing the price a little, this is almost always a case by case situation depending on the listing and the timing of the market. More often than not, an excessive overpricing usually leads to a number well below the market value of where it should have sold!

The other comment I would like to make in regards to overpricing, if you are going to push the price a little, make sure that you have GREAT marketing. This starts with great professional photos and much, much more. Nothing is more frustrating then seeing a condo that is overpriced and has lousy marketing. At least with really good marketing you will increase the traffic to your listing and increase the probability of getting a better offer.

If you would like to know what the value of you condo is in today’s market CLICK HERE. Or give a call today to Brad Golik, Portland’s condo specialist! 503-896-8856

Professional Realtor?

Professional Realtor?

The other day I was at meeting with many other fellow real estate agents and overheard one of the agents talking to a group of other agents. Here is what she said: “I am so tired of people not considering us as professionals and viewing us 1 step above a car salesman!” I found this to be very interesting and only supported a belief that I have, and that is the fact that many agents are not very professional! As I looked at this person, one thing instantly came to my mind. Here she was at a “professionals” meeting and she was wearing jeans and looking anything but professional, as were about 3/4 of the agents there.. ( Have you ever watched House Hunters on HGTV? Many times you will see the same thing!) The second thing that came to my mind was the fact that I had just taken my car for an oil change at the Cadillac dealership. While there, I noticed the salesman. Every one of them had a suit and tie on!

The point I want to touch on here is if you want to be considered a professional, then act like one. No, wearing a suit does not make you a professional, but it is certainly a step in the right direction. The funny thing about the real estate business is that you have many different types and quality of real estate agents. The true professionals (usually dress everyday like they may meet a potential client that day) make a point to learn the business. They understand contracts, learn strong negotiation skills, have strong marketing skills. In other words, they take the time and make the effort to become a true “Professional”. Last week I went to view a million dollar condo for a client. I was pretty shocked when I showed up to see the listing agent in jeans who was trying to sell a million dollar condo. Again…a suit does not make you a professional but come on people. You want people to consider our profession as professional, start acting like it. You do have cultures within companies like Nike and Intel where it is appropriate to dress more casual, but we are not Nike and Intel.

Portland_Professional_RealEstate_Agent

There are over 8,000 real estate agents in the Portland area. Many more are becoming agents because they think it is an easy profession to make money in. (and they will soon learn how wrong they are.) Many of these agents are part time agents ( though you will NEVER hear that from their mouths!) It is very difficult to be a professional at anything unless you are giving it a majority of your time and you are spending that time to improve your skills.

If you are a seller or a buyer of a new home… hire a professional! If you are looking to buy or sell a condo, I would love the opportunity to interview for the job! If you are in the suburbs and looking for a “Professional” agent, give me a call and I will gladly direct you to a true professional.

Here is my take on professionalism in the real estate business. Professionals are good at what they do and they are worth every penny they charge! The ones who are not, and I believe that is a majority, can cost you plenty in a transaction.

It pays to hire a true professional!

Brad Golik
Portland Condominium Specialist
503-896-8856
pdxluxcondos@gmail.com

http://www.LuxuryCondosofPortland.com
http://www.BradGolik.com

 

 

 

The Cosmopolitan on the Park

The Cosmopolitan Rises!

At last… a new condominium is rising in Portland!. Let’s say a big welcome to The Cosmopolitan on the Park in the Pearl District. This 28 story condominium tower located on Block 15 of Portland’s Pearl District is set to be the crowning jewel of the Portland high rise condominium projects. Developed by the Hoyt Street development team, who’s last projects included Encore and the stunning Metropolitan, this project is sure to please those looking to live in one of the finest condo projects in town.

Cosmopolitan_on_the_park

There is a lot going on in the Pearl District in terms of construction. 3 buildings, all being constructed by Anderson Construction are being built next to each other. First you have the Cosmopolitan. It will be a condominium project with 343,000 square feet of space. It will have 3 levels of above grade parking ( 169 spaces) It will have a retail level and a common area with outdoor spaces to enjoy. See renderings here

 

Next you have a new high rise apartment building The Overton. Rising 26 stories and offering 284 units. What will be interesting about this building is that it will situated on its base and rotated 45 degrees to the common city grade…a look I think will be very interesting! Finally you have Block 17. A 16 story apartment building ( yes another apartment building!) With 281 units and 211 parking stalls this project by architect Boora Architects will be the first to be completed in 2015.

 

This brings up a question…has Portland overbuilt in the apartment arena? This actually bodes well for current condo owners as the lack of supply will continue. The other thing to think about, now with very low interest rates and high rental rates is that it is currently better to buy than rent!

North-Pearl-District-MasterIf you are in the market for a new Portland condominium, or maybe you are just starting the process of thinking about it, we can help! Let me take you on a tour of available condo units to see if it might be the lifestyle for you. If you are thinking about selling your condo, keep Brad in mind to list your condo. Brad has the most complete and extensive marketing program for condominium owners in Portland. Please visit us at http://www.LuxuryCondosofPortland.com or http://www.BradGolik.com.

 

 

What’s going on in the condo markets?

If there is one thing I have learned from writing a blog, it’s that you can’t please everybody! When I started writing my blog originally, the purpose was to give good, objective advice so that potential buyers and sellers could be assisted in making solid decisions when it came time for them to buy or to sell their Portland condominium. Over the last couple years I have gotten tremendous positive feedback and at times, not so positive feedback. Most of the negative feedback will come from someone in a building in which I made a comment that does not support a price of a listed unit in that building. ( after all, everybody would love for any unit to sell above it’s market price in their building) Earlier this year I wrote about a unit in the Casey that I thought was way overpriced. (and I am not going to mention the unit #) In my blog I mentioned that when a unit like this gets overpriced it will sit on the market with no traffic or offers. After some time the owners will drop the price $100,000 to try and get traffic. After dropping the price and still not getting traffic, the owners will drop it another $100,000. Well guess what has happened to this unit? The unit has had 2 price reductions of $100,000 each and still no sale. What has happened though is another unit in the building came onto the market that was correctly priced at $1,375,000 and it received an offer in 42 days and is currently pending. While this unit was 230 square feet smaller, and $124,000 less, it was also on the 15th floor looking due East…fantastic views! It was very fortunate for the listing agent of this unit that he was able to use the other unit on a lower floor to help sell his Casey listing!

If a buyer is out looking at condos and is a frequent reader of my blog, I feel they will be able to pick up some very valuable advice and be able to make a better informed purchase when the time is right. Again, my comments in my blog will not always make everyone happy but I think the majority will get much more of a positive experience than negative.

What looks good out there right now? Well it depends on your price point. There are still some pretty good deals being had over at Waterfront Pearl, in fact, last month they sold a considerable number of units in the higher price points. What about Penthouses? My favorite listing on the market right now is the penthouse unit #1405 at The Elizabeth…this is a fantastic unit! (and no…this is not one of my listings! ) With a recent price reduction of $100,000, I will say I was a little surprised that the penthouse unit over at Park Place sold first! That unit, originally priced at $1769,000, dropped it’s price to $1,650,000 and received an offer a month later. If you would like to schedule a time to view the beautiful penthouse unit at The Elizabeth, give me a call today and we can get it arranged.

How about in the under $600,000 market?Pacifica Tower

If you are looking for a value in a luxury condo with great river views, you might want to check out unit #209 at Pacifica Tower. Because of the surrounding construction going on, this unit is priced under $600,000. You will not find anything like this unit in the Pearl for under $600,000. Not only does this unit have a spacious deck that looks out onto the Willamette River and has amazing bridge views, it also has a huge master suite…something very rare in condo living!

There are more units that are now starting to hit the market. If you are in the market for a new condo, give me a call and we can set up a tour of available units. If you are thinking about selling your condo, we truly believe we have some of the best, if not the best, condo marketing around and we would love to sit down and share with you how we are very different than the typical real estate agent out there!

 

Brad Golik is a Portland Condo Specialist!

Please visit: http://www.LuxuryCondosofPortland.com

Portland Penthouse…Portland’s top 5!

Portland Penthouse Watch

 

What is happening in the upper end of Portland’s condo market? Let’s start by looking at the top 5 most expensive condos in Portland that are currently listed. The most expensive, at $2,495,000, The Envoy penthouse. This beautiful penthouse has become like an old friend…because it has been on the market for so long now we have come to know it well. While certainly a unique property, this condo seems to be cursed or it is just the fact that it seems to always be priced just above the market as it has consistently chased the market down.

In the number 2 spot, is one of my favorites and priced at $1,995,000, unit #1405 at the Elizabeth. Listed in late April, this special unit features killer views to the East as well as north to Mt St. Helens. If you are in the market for a luxury condo in Portland, this one deserves a look! Give me a call and we can set up a showing as soon as possible.

Portland Penthouses

In the number 3 position is a penthouse we wrote about in mid April when it came on the market. With it’s price reduced $250,000 since that time, now priced at $1,950,000, this penthouse located on 14th street still seems to be priced high in my opinion. With about 300 square feet less than our number 2 penthouse, this unit just seems to live much smaller. And while boasting an 800 square foot terrace, the noise levels next to the freeway prohibit any relaxing times with peace and quiet. Also, when paying over $1,900,000, most buyers will not like the fact that owners at the two buildings next door look down on this property!

In the number 4 spot, Unit #1001 at Waterfront Pearl. Earlier this year, I had written about the unit directly below this unit, #901, it recently sold for $1,650,000. Unit #1001 is now on the market and listed for $1,759,000. While a spacious unit with over 3100 square feet, it does have one slight negative for this price point and that is the privacy could be a bit of an issue for some as the building next door does look directly into this unit. With that said, it does have fantastic river views, in addition, when you stand at the windows of this unit you feel that you are standing right on top of the river!  In addition to the 3 bedrooms a den and 3.5 baths, this unit has a large room that would be perfect for a large media room!

At #5, this penthouse unit at Park Place, offered at $1,650,000 offers a wonderful outdoor living area. While the living area itself is nice, it does not come with a ton of the “Wow” factor.

In addition to Portland’s most expensive penthouse condos, I did want to mention a unit that I think represents value and is also a very nice unit. This is the new listing at the Casey, unit #1501. If spectacular views are what you are after, look no further! If you are in the market, give me a call soon and we can set up a showing of this beautiful unit. This is a unit that I think will sell reasonably quickly and one of the reasons I think this will happen, other than the great views, another unit in this building is priced a quarter of a million higher than this unit, and while the other unit is slightly bigger, the 15th floor views will win people over! I also believe the pricing of the other unit will actually help the sale of unit #1501.

 

So there you have it. Some of Portland’s best penthouse condominiums on the market today! Again, if you are in the market to buy one of Portland’s finest penthouse condominiums or one the fits more into your budget, call Brad Golik today. It does not cost you anything more to work with a condo specialist!
Brad Golik, Condo Specialist

Portland Condo Sales for May

Portland Luxury Condominiuns

Sales for the month of May continued in an upward trend from the previous month by 16% for condo sales in our covered area which includes Pearl District, Downtown and NW and the South Waterfront area. In this area ( $200,000 and above) 71 sales were recorded with the highest being a Penthouse unit at Waterfront Pearl that sold for $1,650,000. Speaking of Waterfront Pearl, it recorded the most sales for the month with 9 sales brought on, I believe by their new spring pricing that was released (as well as the extra 1% that was being paid out to Realtors for selling this property over other properties!). Of those 9 sales, 8 were priced above the $600,000 price point. So if you are wondering if condos in the upper price range are selling… the answer is yes! For the month, there were 3 condos that closed for over a $1,000,000 including a purchase by my clients of a beautiful waterfront condo at The Strand. One of the others was the one I mentioned above, the penthouse unit at Waterfront Pearl. This is a unit that I had mentioned before in my blog. With 3185 square feet, this unit sold for $200,000 off of the list price. While from the outside this may appear to be a decent bargain, only the future will tell. This was a fantastic floor plan with a ton of space but the downside is the lack of privacy with the north building looking right into your unit! Typically, when prices start getting over the $1,500,000 range, buyers want more privacy for their money!

Portland Condos

Other buildings that recorded multiple sales include The Meriwether with 3 sales, Atwater Place with 2 sales, The John Ross with 2 sales, and also with 2 sales was 937. While inventory levels still remain low, we are starting to see more units come on the market that last few weeks. For buyers, this will be a good thing to give you more options in your search for a new condo. For sellers, the lack of inventory has been a good thing and while more units are starting to come on the market, inventory still remains below the norm.

 

Yesterday, while picking up my open house signs that I had in front of Encore, a person came up and asked me if it was a good time to be selling. My answer was yes but I also went on to explain to him that for patient sellers, it was a good time to push the price a bit if they were not urgently trying to sell. When the market lacks inventory, especially in similar price points, you can get away with pushing the price a little. This can change quickly however when several new units come on the market in your same price range.

 

If you are thinking about selling your condo in the near future, give me a call at 503-896-8856 to discuss pricing, and also, options available to you from a condo specialist that you won’t get with a typical real estate agent.

Negative Equity = Low Inventory!

Portland Condos underwater

The condo market is still experiencing low inventory levels even as spring arrives. While we are beginning to see more condos come on the market, it is still well below what we normally see in this time of the year.  Part of the problem… negative equity is still a problem for many owners, even after the nice appreciation we had in 2013. Please click on the link below for more information!

http://t.money.msn.com/business-news/newsarticle?feed=AP&date=20140520&id=17635723

 

If you are in the market to buy a condo, call Brad Golik, the Portland condominium specialist!

503-896-8856

It’s not always roses here at The Condo Pulse!

One of the things that I do appreciate when writing in a blog is the feedback that I get. Some of it good and sometimes bad. I don’t really mind when I get negative comments because it is expected whenever you are giving your opinion on something. I do realize my opinion will not always line up with others. Today was one of those days where I got, not really a negative comment, but one where they did not agree with me…and that is ok! Recently in my blog, I mentioned that agents that don’t use professional photos don’t deserve to list higher end listings. This is something I strongly believe. What I believe I said was that someone who was going to make $20,000 to $30,000 to “market” a Portland penthouse listing priced at $1,000,000+ and did not spend $200- $300 for professional photos, did not deserve to have that listing. I STILL think this is true!

The person who sent me the comment said he had just seen a condo priced at $970,000 that sold in a week and did not have professional photos… and yet it still sold quickly! Well, I believe I know what unit he was talking about, and yes the photos were terrible! Yes the unit did go pending in a short time even with bad photos. Sometimes that happens. Here is my point. Why would you not do everything possible to make your listing stunning and stand out from all of the others and try for a higher price. I also believe that someone that is so tight that they won’t spend money on photos will also cut back their marketing dollars in every area like staging, print ads, internet marketing, professional graphics etc. Even though this particular unit sold in a short time, how do we not know that if it could have gotten more people to look at it had it looked more attractive online? Could great photos have gotten 3 more buyers through the doors? Could it have gotten several offers that may have boosted the price some? Personally, I prefer to do professional photos for every listing whether it’s $400,000 or a $3,000,000 penthouse! ( a good example of this is a small studio listing I just brought on the market for $305,000… www.PacificaTowerCondo.com )

Portland Luxury Condominiums

The point here that I want to make is if you have the ability (and small amount of money) to make a listing beautiful and stand out from all of the others on the market, why would you not do it? I will say it again, it is a huge disservice to the sellers when an agent does not give his/her very best for the client. There are good agents out there that are professionals and truly try to do a good job for there clients. If I do happen to not get a listing over another agent, I hope it is to an agent that puts his clients first and does everything possible in terms of marketing, not only because it’s the right thing to do… it is what we are being paid to do!

Show me an agent that is not spending money for professional photos and I will show you an agent that does not care!

 

Brad Golik is a condo specialist working in the Downtown, Pearl Distict and South Waterfront areas of Portland.
If you are looking to buy or sell a luxury Portland condominium, call Brad at 503-896-8856 or email him at pdxluxcondos@gmail.com

You don’t know what you don’t know!

CondoSpecReally

Yesterday I was in a coffee shop waiting to meet some clients to show some condos.

While waiting, I got a call from someone who had received a packet of information from me about selling their Pearl District condo. While speaking on the phone, I noticed the lady sitting next to me was listening to my conversation about selling condos.

After I got off the phone she apologized to me but said she could not help over hearing my conversation. The reason she was listening was that she said she had recently sold a condo in one of San Francisco’s nice high rises and she was very unhappy with the agent that she used. She said that she was very surprised in listening to my conversation because she said her agent did almost none of what I was saying on the phone. One of the things she heard me say several times was about “Promoting their condo in the best light and really making it stand out from the others on the market!” She said that she selected the agent because he was referred to her from a co-worker. She said she also did not select an agent that was sending her information about the San Francisco condo market for some time and that in hindsight, she wish she had used that agent because she later found out that he was a very good agent in the San Francisco condo market.

A person once told me, “There are many people who don’t know what they don’t know.” When I first heard that phrase I think my first words were ”Huh?” But in truth, there are many people (condo owners) who don’t know that there are better ways out there. Like the lady selling her San Francisco condo, she did not know that there were agents that did such a better job in marketing condos than the typical agent. As I told her, doesn’t it make sense to use an agent who specializes with condos and an agent that has marketing already in place to target condo buyers everyday?

Many of you out there might select the agent that helped you buy the condo originally or the agent that was referred to you by someone else because we “Don’t know what we don’t know”. We may not know that the Lake Oswego agent that was referred to us has very little experience selling condos. We may not know that even though a particular agent has sold many new condos, she rarely has ever used professional photos and does not do a very good job in the marketing of resale condos. The reason they often get selected is that many sellers did not know that there was a better way.

Once a person is “in the know”, I believe they will never go back! In other words, when a condo owner knows that instead of hiring a typical put it in the MLS and wait agent, they could hire an agent that specializes in condos who always uses professional photos, always does a high quality video for their listings, is an expert in internet marketing ( which by the way , is where 95% of condo buyers start) always uses professional graphics and has a marketing program that targets condo buyers everyday… why would they NOT hire this agent?

Especially now that these condo owners now “know what they know”!

Follow

Get every new post delivered to your Inbox.