As the buyer of a condo, you want your purchase to be the very best possible deal that you can get. More often than not, going in with a super low ball offer is not the best suggestion. In a recent transaction I had, in which I was the listing agent, the condo sat on the market for some time as the seller just did not want to drop their price. After awhile, the rising market did catch up with our price and not only did we finally get an offer, we got 3 in the same weekend. For an example, we will use fictitious numbers.
The condo was listed for $575,000. The first offer came in at $510,000. This was a ridicules number based on recent comps available to us. We sat on the offer with no real intention of giving a counter offer as it was just not a serious offer. We told this to the other agent and just as we did, we got another offer that came in at $550,000. We told the first agent that his buyer needed to step up with a serious offer if interested. He came back with an offer also at $550,000. In these situations, we often go back to the buyers and let them know we had identical offers and if they wanted the home then they needed to put their best foot forward. As this was taking place, a third offer came in. As it played out, the second offer that came in at $550,000 came back with an offer of $557,000. This was very close to the number where the sellers were willing to sell at. The final offer that came in made their offer at $559,000. The first offer that came in…the one that was originally the $510,000 offer came in at $560,000, the highest of the three.
After reviewing the offers, my sellers choose to go with the offer of $559,000. Mostly, they did not want to deal with the person that gave them such a low offer originally, even though they came in at the highest price. In the end, my buyers choose the middle offer because they thought the buyers were nice people, they were expecting a new child and they had fantastic credit!…and the guy that offered them $510,000 originally, made them mad!
A lesson to learn: If you are going to give somebody a lowball offer, make sure you understand the possible consequences. Also, know your numbers! If you are going to make any low offers, make sure you have comps in your hand that justify a low offer! The comps can at times provide an upside potential for you the buyer if you can buy it right! That happens when a buyer is prepared by knowing the comps or if there is a situation involved that forces a sale at a low price.
When looking to buy a new condo, it pays to work with a specialist that knows the market! In my next blog posting we will discuss if there still any deals in the Portland condo market. Hint: Yes!
As we begin to head into the holidays, real estate sales typically begin to drop off. Does this mean it’s a bad time to try and sell a home or a condominium. Absolutely not! While the traffic numbers will drop off substantially, the quality of the buyers that are out looking is generally much better. In other words, the buyers that are out looking during the holidays tend to be more serious. If you are currently thinking about putting your home on the market, here are a few important things to think about. First, always, always, always make sure that your agent will make your place shine! In other words, that agent will make it stand out over the other hundreds of homes or condos in the market. How do you do that? First, and we have talked about this MANY times, get great photos. Don’t go out and hire an agent that will use a point and shoot camera. The agent is getting paid good money to “Market” the home. They need to spend the money to do it right!
Next, make sure that the agent you hire has a proactive marketing plan! In other words, skip the “Put it in the MLS and wait” agent and hire someone that will be proactive in their marketing. I believe when you market a home, you need to sell it twice. Once to the general public and second, to the agents that will help you get it sold. Here is an example of what not to do. Awhile back a penthouse came on the market and was listed by an agent that, in my opinion, does not know how to market a listing. In a years time I have never received a postcard or an email about this listing… and I SPECIALIZE with Portland condos and condo buyers. You would think I would be one of the agents she sends out info to on a monthly basis… but not one thing so far?
When times get slow, agents need to step up the marketing even more. You cannot just sit and wait for a buyer to come along. You need to have a proactive agent that is aggressive in getting your home in front of the right buyers and that in turn will increase your odds of selling your condo during the slow times.
Please visit our newest listing at www.PacificaTowerCondo.com
Can you guess the penthouse?
Which of these units looks more luxurious to you? Which one would you like to live in? Most important, which one would you be willing to spend about $1,000,000 more for?
The photos below are both taken from units at Pacifica Tower, just north of the Pearl District. On my blog, you have often heard me preach about the importance of good photos to sell real estate for top dollar. You have also probably heard me talk a lot about the wow factor. In looking at the 2 sets of photos below, does one set give a sense of “WOW” over the other? Does one set of photos make you want to see the unit in person?
If the unit you picked is the unit with more color with twilight shots, You picked the unit that is priced about 1/3 of the price of the other one. Unit 503 at Pacifica Tower just came on the market on Friday priced at $575,000. This 2 bedroom, 2.5 bath unit also comes with 2 parking spots…which is very rare in this price point. Even better yet, these parking spots are not tandem and they are also two of the best spots in the building! You can see more great photos of this unit at www.PacificaTowerCondo.com .
What about the other one? While the pictures don’t do it justice at all, this Portland penthouse has some of the best views in all of downtown! Stunning sunrise views of the Freemont Bridge that take your breath away are what you will get when you own this beautiful Pacifica Tower penthouse! With plenty of space, and wide open living, the views are what steal the show here…. Makes you wonder why you don’t see more of those views in the pictures? If you would like to schedule a time to see this fantastic penthouse, Brad Golik will gladly represent you as the buyers agent on this unique Portland penthouse. Give him a call at 503-896-8856
Metropolitan penthouse is on the market!
Today, 2 new Portland penthouses came on the market! The first is a penthouse at The Waterfront Pearl. The second is a beautiful penthouse at The Metropolitan! Two very different units…and 2 very different prices! First, the penthouse at Waterfront Pearl. This is the second penthouse at Waterfront Pearl to come on the market recently. The other one was unit 1001A that came on the market in January and is listed at $1,049,000. The new listing is penthouse #1002 priced at $1,099,000 and features 1703 square feet of living space. Between the two listings it really comes down to the views. 1001A has river views mostly to the East and North. Unit 1002 has a little more panoramic river views looking Northeast, East, South and then city views toward the Southwest. If you are in the market for a penthouse condo, I would suggest adding them both to your “must see” list.
The other penthouse that is now on the market is unit PH3, one of the penthouse condominiums at The Metropolitan. PH3 at the Metropolitan is an exceptional penthouse property, in fact, I would list it in my top 2 of luxury condos on the market right now…. The other is the penthouse at The Westerly that we had written earlier about. PH3 offers sensational city views and is located in the heart of the Pearl District. Enjoy all that the Pearl District has to offer while living at the top of the world… at least this is what it feels like as you tower over surrounding buildings and enjoy the panoramic views.
This penthouse unit is very spacious with 3245 square feet, 4 bedrooms, 3 and a half baths. The floor plan is very open and livable. The finishes are some of the best in the city. The only downside, if you even consider this a downside, is that it comes with only 2 parking spaces. If you are a big car buff/ collector, you may be more excited by the 4 parking spaces offered by the penthouse at The Westerly. If you like elegant living in a spectacular building in the middle of everything that the Pearl District has to offer, the penthouse at The Metropolitan is calling your name!
If you would like to tour the above mentioned Portland penthouse condominiums, call Brad Golik at 503-896-8856. Brad is a condominium specialist at Windermere and owner of http://www.LuxuryCondosofPortland.com
** The Penthouse #1115 at The Edge in the Pearl District just reduced the price $50,000… now listed at $979,00 **
** The Penthouse #802 at Pacifica has sold. After several price reductions from it’s original pricing, it sold for $700,000**
** The Penthouse #708 at Bridgeport is now Pending after 255 days on market. After it’s second substantial price reduction (this time $50,000) it went pending at the listing price of $799,00, down $100,000 from it’s original listing! Stay tuned for final sales price**
We encourage you to work with us, someone who is “In” the condo markets everyday!
Economics 101: Supply and Demand
How’s the Portland condominium market? If you are waiting for lower prices in the condo market… that train has left the station! A year ago would have been the best time to purchase. But, like picking the bottom in any market, timing is difficult. Let’s look at where we are now and where I think we are going… again, these are my opinions only but they are based on the research of many others.
Like many parts of the country, we are now in a situation of low inventory and buyer demand has picked up tremendously. Again, getting back to the basics of supply and demand. When you have limited inventory being chased by multiple buyers in the marketplace, prices will go up and they have already started! Will we see the huge appreciation of past years? I don’t believe so. I believe we will see steady, healthy growth moving forward. National levels are expected to see growth of 3-5% a year for the next several years. I believe Portland will be just slightly higher in the 5-7% range.
What’s happening in our markets. For Portland’s condo markets, same thing… no inventory! Why is this? Well, I think it is a couple of things. Many people are still underwater on their condo and waiting for a little appreciation before they can sell. With no inventory this is what will happen. Prices will begin to start going up and as they do, more condo owners will be able to sell. The other issue in the condo market that I am seeing is that the rental market has been so strong and rentals are at a premium, thus keeping more condos out of the market place.
With that said, many condo owners live in buildings where there is a 30% rental cap… and guess what? They are all at the cap! In fact, some buildings like Streetcar Lofts have a long waiting list (Streetcar has 21 people on the waiting list!). These are the owners who are waiting for some appreciation so that they can sell, because they can’t rent their condo.
If you are a condo owner who is thinking about selling, give us a call and we will be happy to do a market analysis for you to see where you might be and to see what other units like yours are selling for. We have put together what we believe is the best condo marketing program in the city and we would love to share this with you. It is remarkable how much mediocrity we live with when it comes to selecting an agent to help sell your condo. If you want top dollar for you condo, average should not be acceptable, you deserve more for your hard earned money…and this is something we truly believe!
The Waterfront Pearl in Portland’s Pearl District is truly a gem sitting on the shores of the Willamette River. In recent years, the Waterfront Peal has gone through a few changes. Originally designed to sell as luxury condos, The Waterfront Pearl was a victim of the times and did not go as planned by the developers. For the last several years the Waterfront Pearl units have been in the luxury rental market. Now, as the market is improving, the Waterfront Pearl is going back to selling condominiums! It will start in the South building as the management group will need to reach FHA guidelines for financing. Currently, Waterfront Pearl is Non Warrantable. What this means is that a non warrantable condo cannot be sold to Fannie Mae or Freddie Mac. What does this mean to a buyer? Currently there are only two lenders who will finance on this project, Premier Mortgage Resources and CalCon Mutual. They will require 15-20% down and they will be higher rates than you would normally receive. Cash buyers will have no problems, in fact, this is what the majority of recent sales have been.
I for one am glad to see this project come back to life as it is a really nice building in an awesome location within the Pearl District. Other than Pacifica Tower just north of this project, this building offers stunning water views that other Pearl district properties just don’t have. Watch the sunrise behind Mt. Hood with a nice cup of coffee. Relax on your deck and watch the boats go by! I recently wrote about a penthouse unit at the Waterfront Pearl that came on the market. This unit is still available for those of you who may have an interest in a top floor condo with sensational views. If a peaceful setting is what you are searching for… welcome to Waterfront Pearl!
To view units in this building or other condominiums in the Pearl District, South Waterfront or Downtown call Brad Golik at 503-896-8856
Once again, condo sales are up over the previous months sales. September sales for the downtown, Pearl District and South Waterfront areas were at 61 sales for the month, nearly an 11% gain for the month! Leading the way once again for total sales for the month was Atwater Place, representing 10% of total sales. The lower end of the market was very active this month with 67% of sales being sold for under $400,000. We saw only 2 condos sold this month in the $1,000,000 and up price range. One was a townhome in The Pearl and the other a condo in Uptown.
Are you looking to buy a condo or loft?
If you have been watching our blog, you probably saw the post about the accuracy of websites. If you want to find the most accurate search results, you will be best served if you stick to using a brokerage website. As an advertiser on Trulia, I get a majority of calls from this website from people looking to buy something that is no longer active. Remember, on Trulia and Zillow that 37% of the condos shown on these websites are not even on the market any longer!
The best path to take is to work with someone who specializes in the condo and loft markets. I will not only send you listings that are active, but I can also point out to you, homes that I feel may be undervalued and not stay on the market very long.
Do you know someone that is thinking about selling their condominium or loft?
If you do, please let them know about us and our unique marketing program. We truly believe we have the best condo marketing program in town and we would love to sit down and share with them what makes us different!
A new waterfront listing has just hit the market! This 1 Bedroom, 1 Bath unit has views that will take your breath away.
To see this beautiful Portland waterfront condo go to www.PacificaTowerCondo.com or go on a video tour:
August was a very good month in the Portland condo and loft market with sales up 34% over July sales. Once again leading the pack was Encore in the Pearl District and Atwater Place in South Waterfront, both with 5 sales for the month. Two of the Atwater Place sales were resale units. The most remarkable thing about the 55 sales for the month was that only 2 of these sales were bank owned properties and just one was a short sale! With that said, there are currently 24 condos and lofts in the Pearl, Downtown and South Waterfront areas that are in a short sale pending status.
Buyers continue to find decent deals in the Portland condo market. An example of this can be found in the recent sale of unit at City Lofts. After being way overpriced at $1,100,000, and being on the market well in excess of 400 days, buyers were able to pick up this 2,456 sq. ft. unit for $760,000, more than 30% off its original list price. This shows us two things: 1)There are good buys to be had in the market and… 2) Sellers, don’t overprice your unit when you go to sell it. It will end up costing you more money in the long run!
At LuxuryCondosofPortland.com we are excited about the market! If you are in the market for a new Portland condominium, give us a call and we will get you out to see everything that Portland has to offer. If you are thinking about selling your condo or loft, again we encourage you to work with a condominium specialist. We don’t believe that an agent can’t just flip on a switch and become an expert in marketing to condo buyers overnight! We have worked hard to create a marketing program that targets serious condo buyers everyday. And, like marketing for any product, the more exposure it gets, the better your chances of getting a higher price!
Condo and loft sales for the Portland area from The Pearl District down to South Waterfront decreased slightly over last month with 41 sales in the +$200,000 market. In July we were expecting more closed sales as there were over 90 that were in a pending status last month. Delays in short sale and bank owned closings are most likely the reason we did not see more. In the upper end market, last month there were no sales in the $1,000,000+ market, this month we had 4!
Leading the way in condo sales for the month of July was Encore with 6 sales priced from $305,000 to $1,234,500. August should be another good month for Encore Condominiums as they currently have 8 units in a Pending status. Following Encore in number of sales for the month is Atwater Place in South Waterfront with 3 sales and Marshall Wells Lofts also with 3 sales in the month of July.
The sales of $1,000,000+ condos this month took place at The Casey, The Metropolitan, Encore and the townhomes on Riverscape near Pacifica Tower. 21% of sales this month were in the $750,000 and up market
If you are looking to buy a condo or loft in the near future we suggest using a condo specialist!
If you have plans on selling your Portland condo or loft or know someone who is, we feel our condo and loft marketing program is second to none and we would like to sit down with you and show you our program. After all, condo buyers are smarter than ever and you can no longer afford to have an agent who will just put your condo in the MLS and wait!