Recently, in my blog post you have read about my comments on the Cosmopolitan. You have heard me say that it is overpriced and that it has raised prices on many resale units that are hitting the market. One of those is the richly priced penthouse at the Elizabeth selling for a whopping $1000 a square foot ( and yet only 14 floors above the ground!. At least for $1000 a foot at the Cosmopolitan you are getting a 26th floor view that helps jusify it’s pricing in comparison…sort of! In the land of overpriced units, I wanted to touch on one listing that I think is underpriced! That’s right, I said underpriced in this market. This unit is one of the iconic brownstone like townhomes on 11th. The one that I like is the double unit #633 and #637 priced at only…$2,975,000! Now I know this is still a pretty big number but lets look at the numbers.
#633 Is a double unit offering 3,888 sq. ft. ( and for you Asian buyers, that 888 is a pretty good sign, right!) With this much square feet and priced at $2,975,000, the price per square feet is only $765! This is $304 a sq. ft less than the Casey penthouse priced at $3,499,000 and $235 a sq. ft less than the Elizabeth penthouse priced at $3,299,000. Add the Cosmopolitan into the mix and you have an absolute steal! The one thing I will say about the double unit townhome priced at $2,975,000 is that none of the other units mentioned, Cosmopolitan included will have better finishes! Hands down, this Jeffrey Lamb designed unit is far superior with substantial custom work throughout! The money spent on the unique and high quality custom finishes, including iron, stone, glass, stainless steel and a 2.5 ton travertine clad swinging door is something you are not likely to see anywhere else. Now some of you may be saying that the other units are higher up and have views. Well let me tell you this, I get a fair amount of buyers that do not like being high up in a high rise and do not put value on that. Some of these same people put more value on space. I also tend to put much value on quality, something your not going to get in a new high rise unless you do your own custom finishes. If you were to do that at the Cosmopolitan, you will be talking $1500 a sq. ft.
In this market you will not hear me make many comments about a unit being underpriced but in my opinion, this one is! When it first came on the market it got an offer in several days and that offer fell through. I don’t believe this unit should stay on the market long at this price. If you are a person that is not interested in a view and prefers a more neighborhood feel, this may be the right place for you. If you are in the market for one of the Pearl Districts finest homes with some of the finest finishes, give me a call today and we can set up a tour of this unique place.
The answer is YES! Many times throughout the year I will see condos come on the market that may not be priced correctly. Most of the times it is because the agent does not know the condominium markets well and do not know how to price them correctly. Sometimes they over price them, sometimes they under price them…and create good buys for a buyer! This weekend. An example of this happened. It was at a very high price point, but still a good buy for the new owners! Last week I wrote about a couple of new listings that were coming to market. One was one of the beautiful townhomes on 11th. It was the combined unit that I thought would be priced at about $3,200,000 to $3,500,000 ( I believe I said low to mid 3 Million range). The agent that got the listing is a well known luxury agent that is known for high end homes, not condos. The listing came on the market at a surprising sub $3,000,000 price ( $2,975,000). As I said, YES, buyer’s can find deals in this market! To me, this shows a good example of working with a specialist. While the above…not mentioned agent, has a decent reputation for higher end homes in the west hills, this agents expertise is not in the condo market. I am not sure why the owners selected the agent but I have my suspicions! Some agents will try to sell their companies “wide global reach” in a sales pitch to get a listing in the high end of the market. To me, this is a little bit of smoke and mirrors because of the internet. With the internet, an agent with a good bit of knowledge of marketing on the internet, can easily get their listing “worldwide”. Keep in mind, condo specialist market to condo buyer’s everyday and maintain a pipeline of qualified buyer’s. Sometimes local, sometimes international. The point I want to make here gets back to today’s topic: Finding deals in this market. As long as you have agents that do not fully understand the condo market, you will always be able to find a deal because those agents will not always understand how to price a unit. Many don’t understand the difference between being on the west side 3rd floor vs 13th floor on the east side. Some don’t understand the difference from having a protected view vs an unprotected view and many of the other issues that come into play when pricing condos. Bottom line if you don’t want to be one of those seller’s that is creating a great buying opportunity for a buyer, make sure you interview a condo specialist!
When people think of the Pearl District, often they think about living in one of the iconic town homes on 11th ( see last week’s blog post). Others think about a new shiny high rise like the new Cosmopolitan while others think about a cozy loft style condo in a building like Marshall Wells, Irving Street Lofts or Avenue Lofts. If you have been thinking about one of these loft style condos in the heart of the Pearl, now is your chance!
Coming to the market tomorrow will be a beautifully done penthouse loft at Marshall Wells. The owner of this spacious loft (2771 square feet) spared no expense in creating a wonderful living space in this historical building. From it’s designer kitchen to the beautiful chandeliers, this one is a “Must See”!
Priced at $1,399,000, it is reasonably priced in the low $500 sq. ft. area. (remember, this is entry level at the new Cosmopolitan). For those looking to downsize from a larger house, the 2771 square feet makes for an easier transition.
If you would like to see photos of this beautiful loft, please visit http://www.MarshallWellsLoft.com and click on the photo gallery button. When you are ready to take a look, give me a call at 503-896-8856
Brad Golik is a certified condominium specialist in Portland and works primarily in Portland’s Pearl District, South Waterfront and Downtown. If you are thinking about selling, Brad has simply one of the best condo marketing programs in Portland.
Brad is a founding member of http://www.Condo10.com
Last week I mentioned what I called the “Cosmopolitan Effect” and how it was raising the bar for resale properties around the Pearl. In that blog post I mentioned that one of the signature town homes on 11th, priced at $1,899,000, came onto the market…and went pending in 3 days! Well, the seller’s are not carrying their bags of money to the bank just yet! The deal fell out of escrow and it is now back on the market.
A little about the property… #617 11th is a spectacular property featuring 2,698 square feet of upscale living right in the heart of the Pearl. This home features 2 bedrooms, 2 and a half baths, a library ( large enough to be 3rd bedroom) a spacious family/TV on the Mezzanine level, a large rooftop deck and a 2 car garage.
For those who might be selling their large suburban home, this could be the perfect transition to downsizing without giving up some of the space that is needed.
If you would like to tour this beautiful Pearl District town home, give me a call today and we can set up a tour of this amazing space!
As for the market in general, we are still battling with the lack of inventory. We have buyers in many upper end levels so if you own a condo in the Pearl, and are thinking in any way of selling, please give us a call today. For an instant assessment of your condo’s value, please visit http://www.PearlDistrictPrices.com
Condo Sales for March
Portland Condo sales for March were strong considering how low our inventory is. In the month of March there were 63 sales in the area that I cover, which is from Pearl District, Uptown, Downtown to South Waterfront. This includes all condos and town homes priced above $200,000. To compare, February had sales of 37 in that same area. What is very interesting though is not the increase in sales of 70%, which is not unusual for this time of year, it is that there are currently 122 pending sales. Now 122 pending sales is nothing unusual, however, what is unusual is that this is the first time since I started writing in my blog that the pending sales actually exceeded the Active listings! Currently there are only 110 Active listings in my designated coverage area.
With numbers like this it could increase the numbers for appreciation in our area. While it was expected to see growth slow down some, the numbers may be higher than expected. It is certainly a sellers market with the low levels of inventory we are seeing. What will be important is the number of units that normally hit the market this time of year. As I mentioned, being a sellers market, this has been a huge windfall for the developers of The Cosmopolitan as they are getting buyers to plunk down a non refundable deposit for high priced units because of the fear of not being able to buy resale units at other buildings. If we were in a normal inventory market, I guarantee we would not see buyer’s overpaying for units.
If you are one of those buyers who may be looking for an upscale, high floor unit and looking to pay above $1,500,000… be patient! Next week I will be listing a unit that will be priced in the ballpark of $560 a square foot. A comparable unit in the
Cosmopolitan will cost you upwards of $1,000 a square foot! In my listing you could do a $250,000 remodel and still come in under $615 a square foot. Yes, sometimes patience does pay!
Brad Golik is a condominium specialist with Pearl District Properties.
Specializing in Portland Condos , Portland Penthouse, Portland Town Homes, Portland Highrises, upscale buildings including The Casey, The Metropolitan, Park Place, The Henry, The Westerly and many more!
Today I sat at Starbucks with my tablet to do a little work. As I took a few calls and reviewed listings online, I noticed the person next to me taking an interest in my work. We struck up a conversation as she enjoyed hearing about real estate and what was happening in the current Portland condo market. One of her comments was, after listening to 1 or 2 of my phone calls, how important marketing was to me when it came to listings. She mentioned to me that agents she had used in the past did very little marketing and pretty much just posted her listing in the local MLS and waited for a buyer. This is not unusual as this is exactly what many agents do!
As she became more engaged and interested, I explained to her my “Laws of Probability”. What I mean by this is that the more marketing you do, and if you do it in the highest quality fashion, you will attract more quality buyers. The laws of probability show that if you have more people interested in something…the price usually goes up!
This person, I feel, became very educated today on what a person needs to do to capture a top price in the sale of their condo or home. She was pretty shocked when I showed her some new listings that came on the market the previous 2 weeks. What I showed her was that with half of those new listings, the listing agent did not use a professional photographer. In fact, a couple had photos that were so bad she felt bad for the owners trying to sell. I explained my philosophy on this subject… If an agent cant spend a couple hundred dollars to “show off” your home the best they can, they should not be in real estate. Good agents work hard for their clients and spend the money to “Market” their home. This is part of what they are getting paid a commission to do. If that agent is not spending money on quality photos then they probably won’t spend money on a video, quality print materials or internet marketing! It was interesting when she asked me why owners would hire agents like this? I told her sometimes they just hire the agent that helped them purchase the unit and often don’t know any better. I also told her that unfortunately, many sellers think like those agents. In other words they think they can just put it in the MLS and get it sold. While this may be true, it will sell eventually…but at what price? There is a reason that many advertisers try to put their product in the consumers best light, because they know those consumers will pay a higher price if they perceive that product to be better.
If I get a listing and put it in the MLS with average photos and no additional marketing will it sell? Yes, eventually it will, but I don’t believe that I would have done everything possible to get my clients the highest price for their unit. I believe it is my job to spend the money necessary to promote that condo the very best that I can and make it stand out so that buyers perceive this to be the best unit available and are more comfortable in paying a higher price.
Brad Golik is a condominium specialist with Pearl District Properties.
Find him at http://www.LuxuryCondosofPortland.com 503-896-8856
Brad Golik of Windermere Northwest and LuxuryCondosofPortland.com has distinguished himself in the field of (luxury) condominiums and townhomes sales by earning the prestigious Certified Condominum Specialist® designation. This national designation is given to select real estate agents who have demonstrated the specialized education, market knowledge, competence and experience in successfully and effectively listing and selling condominiums, townhomes, and other forms of common interest developments (CID).
The certification and designation are offered by the Council of Condominium Specialists® which is the national, premier independent authority in assisting real estate professionals in providing high quality service and superior market expertise to the buyers and sellers of condominiums and townhomes (CIDs).
Brad Golik is the first real estate agent in Oregon to receive the Certified Condominum Specialist® designation!
The designation indicates the recipient real estate agent has worked diligently to complete essential real estate training and has met specific performance standards to demonstrate expertise in their local condominium/townhome (CID) market to provide the high quality real estate services his clients deserve. Real estate sales are a complex and challenging field to begin with,” said Candy Peak, Director of the Council of Condominium Specialists®, “but selling a property that is in a common interest development (CID), which involves both an individual and shared ownership in real estate, such as a condominium, townhome, planned development or any other property that is part of a homeowners association, requires an agent with the specialized real estate knowledge and expertise to professionally navigate a buyer or seller through the intricate path of common interest development ownership and sales.
“My commitment is to provide outstanding service to my clients,” said Golik, and “the Certified Condominium Specialist® designation ads additional benefits for my ability to meet the needs of condominium and townhouse buyers and sellers in my area. My membership in the Council of Condominum Specialists® Network also provides me with the marketing tools and networking capabilities that bring added benefits to my clients.”
For current information on condominium and townhome sales in your neighborhood and to receive a market evaluation on your property, contact Brad Golik at 503-896-8856 or through email at firstname.lastname@example.org . You can also visit http://www.LuxuryCondosofPortland.com