The market has noticeably slowed down, especially in the condo market. Are there deals to be had moving forward? Yes!
Everyone always wants the best value when they are buying a home and in this market, here is the best way to purchase a home/condo at a discount to the market. Now keep in mind this is only my opinion, but moving forward, I believe you will see some clarity in what I am saying.
When something is priced right, you will most likely not get a “deal” on that home as it will most likely sell in a reasonable timeframe. Where will you get a deal? You will find your best deals in homes or condos that were originally overpriced. In the condo market this usually happens for one of two reasons. First, there are some agents who “Buy” listings. In other words, they tell the seller a higher price than the true value in order to get a listing over a competing agent. You have heard me say it before and I will say it again… this is a bad way of doing business that certain agents use and in the end, it hurts sellers. After sitting on the market with no offers and no showings, the listing agent tells the seller they need to drop the price. ( Usually down to where it should have been priced!) Usually, and unfortunately, the seller will keep that agent even though he or she told them they would sell it at the higher price.
The second reason they are overpriced is the agent is not experienced in an area or type of sale. I see it often in the condo markets where an agent just does not understand condo pricing.
Now, back to finding deals in the market! What happens often in this type of market is an overpriced home will sit on the market and go through several price reductions, often blowing right through the floor of where it should have been priced originally. A couple examples of this in the upper end of the condo market:
A unit that I like very much is a penthouse in the Pearl District that is listed at The Elizabeth at $2,950,000. A different agent had this listed previously at $3,650,000, a number I thought was way high! ( and I know this because I sold another penthouse in the building a year earlier for $2,350,000.) My original thought was what could I sell my previous listing for if I put it back on the market. I was thinking $2,700,000 to $2,900,000. Mine was slightly bigger and all on one level, a positive in my book! This is about where I thought the other unit should have come on the market. I believe that if it would have come on the market at the correct pricing, it would probably have sold by now. Now, after months on the market, and multiple price reductions, it will start to get some lower offers… again, this is where you can get some deals in this market! If I am representing a buyer on this property, I truly believe they will now be able to get the property for well under what should have been the true value at around $2,900,000. The best part is you can find these deals in all price ranges, not just the upper end of the market. A buyer with some patience, and that keeps his or her eye on overpriced units will be rewarded in the end. Overpriced units will go through several price reductions and sell for less than they should have!
Oh, I said a couple examples above didn’t I? If you are a penthouse buyer l looking for a deal… here is one I have talked about before, several times actually.
If you read my last blog post, you may recall me talking about a penthouse at The Strand that had reduced it’s price to $2,995,000. In my post, I mentioned they would probably start seeing the sharks circling and offer $2.6. Well since that posting, the listing has been reduced once again, this time down to $2,699,900. Now don’t get me wrong, this is a nice penthouse unit with some really nice views but it is at a point where someone is going to get a good deal on this beautiful penthouse! Had this penthouse been priced even close to reality when it was originally listed, it would have sold at a much higher price ( remember, the market was much stronger a year and a half ago)
No matter what your price point is, remember, there are condos out there that are overpriced! Keep an eye on these units and when the time is right…go in and make a low offer and you just might get a great deal!
For those of you who already own a condo and are thinking about selling…please use this as an education to the negative effects of overpricing!
Brad Golik is a condo specialist with Total Property Resources and LuxuryCondosofPortland.com you can reach him at 503-896-8856 or at email@example.com
Yesterday I viewed a penthouse that just came on the market. The unit, #1102 at The Gregory, is listed at $2,350,000. This unit is 2400 square feet and includes a wrap-around terrace that adds living space. With two bedrooms and a spacious den, this unit is very open and great for entertaining. The kitchen has been remodeled and the light gray palette throughout this unit makes it very inviting. I think the price, at $2,350,000 is right about where it should be because unit #1202, directly above, sold last October for $2,400,000. At the time, I thought the buyer paid a little too much for that property. Given the cost of the remodel in unit #1102, and the square footage being just slightly less, I think the $2,350,000 asking price is reasonable.
In the $3,000,000 and up market, two units stand out. The penthouse at The Strand, Unit #1301, is $3,550,000. You can check out this unit at www.PortlandPenthouse.com. (Click on the feature penthouse button) I believe the price is still a little high. It was just re-listed with a new agent and unfortunately, the previous agent had it priced ridiculously high in August of 2017 at $4,200,000. I believe this will be one of those times when an overpricing will eventually hurt the seller in the long run… and is no fault of the current agent. While I believe it should be priced closer to $3,250,000, the listing is at least in the ballpark. In the end, I am guessing this one should sell closer to $2,600,000 to $2,800,000. This unit features a huge rooftop deck, but because of the nearby freeway noise, the future owners will probably use the lower decks more often.
The third penthouse to compare is one I had briefly mentioned when it came on the market back in February. It is #1502 at The Elizabeth. I really like this penthouse unit. With two levels and a very open floor plan it has a lot to offer, and it better at $3,300,000…down from its original price of $3,650,000. This unit scores high in style and while the listing agent is a little generous in saying it has a “chef’s” kitchen, it does have the potential to be even more stunning than it is already. This is a building that I like and know very well. I thought the $3,650,000 was very high but I believe that the buyer who buys this beautiful Portland penthouse, somewhere between $2,800,000 to $3,000,000, will be getting a truly beautiful penthouse at a reasonable price!
If you are a buyer that is in the market for one of Portland’s beautiful luxury condominiums, please give me a call and we can set up a tour to go and view some of the stunning units that are on the market right now.
Brad Golik is a condominium specialist with LuxuryCondosofPortland.com and Total Property Resources. You can best reach him at 503-896-8856 or at firstname.lastname@example.org