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Because I was short of time this week, I thought I would do a video post!
If you have not noticed…the market has slowed down!
What is the one thing I see happening everyday? Price reductions. Yes we are seeing a huge number of listed properties being adjusted. Usually, we see a slow down this time of year as we go into the holidays. What is a little more unusual is to see the amount of slowdown that we have seen in the number of showings the last several weeks. What is to blame for this? It could be all of the attention that was being put on the presidential election. With this were the fears of what would happen to the markets if either candidate won. The good news in this area was the stock market. On election night when it looked as though Trump would be the winner, stock market futures were down in a big way, over 800 points. But, in the morning after the dust had settled, the market was very strong and it has remained that way. What does this have to do with the housing market? Well, when the stock market is strong, peoples confidence increases and the comfort level of making a big purchase becomes improved. The new thing we need to look at now are interest rates…they are up. Will this force people to get off the fence and make a move?
With that said… let’s talk real estate! As mentioned, there have been a number of price reductions In the market. Two of these are a couple of very nice units in the mid $600,000 range. One is a loft in the heart of the Pearl. The other is a condo along the waterfront.
The loft, priced at $629,900, is unit #306 at McKenzie Lofts. With a beautifully updated kitchen, this 1 bedroom plus den unit is open and spacious. Walk to restaurants or walk outside your door for your morning cup of coffee at Starbucks. You can’t go wrong with this awesome loft in the Pearl! See Video: https://video214.com/play/11vHJkeJI8ypsdUHe0400g/s/dark
The condo, a 2 bedroom ground floor unit at Pacifica Tower, is a well appointed unit along the shores of the Willamette. Are you a pet owner? The massive patio is perfect for those who own a dog or two. Not a pet owner? Well you will love the outdoor “Extended Living Area” for lounging or enjoying BBQ’s where space is not a problem! See Video: https://video214.com/play/1HJOmmsY6EHdrbCx993hwA/s/dark
If you would like to view either of these units, give me a call today at 503-896-8856.
I don’t get political on my blog… because you will always offend half of readers. I will say this. The election is over. Let’s get back to work and come together. If you are a person that is comfortable financially, next time you walk by a homeless person that is down on their luck, buy them a cup of coffee or a breakfast. Let’s get back to being kind to one another. Do something nice for someone today!
Brad Golik is a condominium specialist at Pearl District Properties. You can view his website at http://www.LuxuryCondosofPortland.com
Contact Brad at firstname.lastname@example.org
Buying a listing?
Have you ever heard the term in real estate “Buying a listing”? What does that mean? Does it mean a a buyer is making the purchase of a listed home? The answer is no! In simple terms buying a listing means that a real estate agent, knowing that he or she are in competition with another agent, tells a seller that the price they should sell their home for is much higher than the supporting comps. It is almost always higher than the price of the agent they are in competition with. For example, agent #1 comes into a listing appointment and presents a sales price that is supported by the comps and the current conditions of the market (ie. Low inventory, high inventory). This agent , for example, tells the sellers that the price should be $900,000. And this agent is pushing the price a little high thinking he can net the sellers a little more because of the current low inventory. Agent #2 comes in, knowing they are competing with another agent, and prices the home at $1,000,000. Now this agent knows the supporting comps show that this home should be priced at $900,000. But this agent also knows that if they come in with a price that is $50,000 to $100,000 over what the other agent said it will sell for, the sellers will be very tempted to go with the second agent. After all, who would not want to make an extra $50,000 to $100,000! What then happens? Well typically, the sellers will get less traffic because most agents know it is overpriced and they will take their chances that the price will be reduced at a later time. When this happens, in this market usually 1 to 3 months later, the listing agent tells the seller that they need to drop their price! And when they do drop the price, the listing has become stale at that point, and regardless of the price drop, the low ball offers start to come in! When this happens, units usually sell at a lower price ( most times lower than the original sales price mentioned by agent #1)
Why do some agents practice this way to solicit listings? Because they KNOW they will get the listing! And during the time the home is on the market, they will have built a relationship with the sellers and at some point, they will have the seller dramatically reduce the price and the home will sell and those agents will get their commission.
So how do you avoid this type of practice? Well start off with the old saying that if something is too good to be true… it usually is. While we all want the most in the sale of our homes, you also want to be realistic in your expectations. And how do we know if an agent practices this habit? Well I often tell sellers to look at the agents current listings because an agent that practices this method of acquiring listings will almost always have a couple of listings that have been on the market for 2 to 3 months (because they were way overpriced!) If it priced right in this low inventory market, It will sell. Anything much over a month to a month and a half is way overpriced. Usually under a month is the norm in this current market.
What do you do if this situation happens to you? I tell sellers to hold their agents feet to the fire! If they say they can sell it for $1,000,000, when another agent says the value is $900,000, hold them to it. $975,000 would be within reason. If they can’t, thank them for their efforts and hire the agent that told you the correct price all along. But when you do, be aware that the original $900,000 may now be difficult to get because of the time spent on the market.
Brad Golik is a condominium specialist with Pearl District Properties. Brad was the first agent in the country to use QR codes for his listings and is an internet marketing expert. Brad was a co-founding partner in Condo10.com , a group of condo specialist from around the country working together to provide the best marketing practices for their clients.