With tougher markets come opportunities. The condo market has slowed down and we have seen many, many price reductions…and not just one or two reductions, but four, five and six price reductions! There are a few that stand out for me right now that I think represent good buying opportunities. And because some of these have been on the market for so long, the chance to buy lower than it’s current listing price could be very high. In the higher end of the market, a penthouse that I have discussed multiple times is unit #1301 at The Strand. This is a beautiful waterfront unit that has great river, mountain and city views! The downside of this unit… many agents have tried to sell the large rooftop deck as a selling feature. Truth is you are almost level with the nearby bridge traffic and the noise is pretty loud. With that said, put a water feature and some music on the deck and I believe it becomes usable. The current price on this penthouse is down to $1,995,000 , reduced from last month where it was at $2,350,000. ( if you remember, this penthouse was originally priced over $4,000,000) At $1,995,000 you are at $615 a square foot. This is getting pretty low for any penthouse unit. I recently mentioned a penthouse sale at The Elizabeth…it sold for $551 a foot, an extremely low price for a penthouse of it’s caliber. If you are looking for a large unit (3242 sq. ft.) The Strand is one worth looking at.
In the lower price points there are also some good opportunities for buying opportunities. One example is unit #515 at The Elizabeth priced at $750,000 for a 2bed/2 Bath with 1562 sq. ft. A similar unit just went pending at $765,000 and an identical unit ( just four floors higher) went on the market $115,000 higher at $865,000!
In the sub $500,000 market you will see more turnover but you can still find some good values in the lower price points. If you would like to get out and view some condos, give me a call.
Brad Golik is a condominium specialist with LUXE Christie’s International Real Estate You can reach him at 503-896-8856 or at email@example.com.
Opportunities… PART 2
As I finished up my blog post earlier today, a new listing came on the market in South Waterfront for $2,500,000. This 22nd floor unit has 2349 square feet and has had a few new very nice touches added…new kitchen, wine room and general updates. What do I think of the $2,500,000 price tag? Well, it’s next door neighbor is on the market for $1,000,000 less at $1,495,000 and it is only 160 square feet smaller. If you want an opportunity, you could buy that one for $1,495,000…or a little less, add a brand new high end kitchen, add a very nice wine room and make some additional updates and you would still be under $2,000,000! What is the only advantage of the 2.5M unit? I would say having the St. Helens and city view are more desirable. So are those views important to you?
Here is an alternative ( shameless plug here) I have a penthouse listing at The John Ross next door. It is in the NE corner…most preferred. It is 2699 square feet, so larger. It is 359 sq. ft. larger (equivalent to a 14×25 room) It is on the 27th floor so 5 stories higher. This is important because if something were built on the nearby OHSU property, your chance of loosing views of the Tillicum Crossing Bridge are less if you are 5 stories higher. Not only does it have an amazing Mt. St. Helens view, it also has an awesome Mt. Hood View! To add even more value to John Ross #2703… it has been in litigation for some time now (cash only buyers) and litigation has ended. What have we seen time and time again when this happens? Prices jump up in these buildings when litigation is resolved.
So you could also do an amazing kitchen in this unit ( there is a huge open area to make a much larger kitchen than the other two units) And do all of this and still be well under $2,000,000. The other option, you buy it and move in because you don’t need to do much because it is very nice and move in ready!
If you would like to tour Atwater Place 2206 and 2200 as well as John Ross #2703, give me a call today! 503-896-8856
If you want to capture top dollar on the sale of your condo, why not hire an agent who cares enough to do everything he or she can to get your place seen by as many buyer’s as possible. I simply refuse to cut corners when it comes to marketing your condo or loft. I often tell people “Any agent can sell your condo…but at what price?”
Whether it’s soda, beer or tennis shoes…marketing is so important. But, it’s not just selling these products, it’s selling them at a premium to other similar products by giving them a perceived higher value. Real Estate is no different! With real estate marketing it’s so important to start with great professional photos, after all, photos are the foundation for most of your other marketing such as print media, listing websites and video. And great photos should be something that teases the buyer’s and makes them say “I HAVE to see this property, it’s beautiful!” And when buyers see high quality marketing, they will often associate the listing as being a higher quality property.
Quality vs Quantity – More marketing is not always better marketing. 360 degree photos are something a lot of agents use today. To me, this is giving away too much information to the buyer. A potential buyer may see 1 or 2 little things that turn them away from visiting the property, one they may actually have loved had they seen it. Marketing is all about getting the buyers to a property. It is also about giving the property a higher perceived value so that they are more comfortable in paying a higher price.
You have many choices when looking to hire an agent. Why not hire an agent who gives you great marketing for your listing. After all, you are paying an agent to market and sell your listing! Why not hire an agent that cares enough to spend the money it takes to do the job right?
Brad Golik is a 15 year real estate veteran with a specialty in the Portland condominium markets. You can reach him at http://www.LuxuryCondosofPortland.com or at 503-896-8856
Check out this beautiful waterfront condo!
Brad Golik is a condo specialist with Total Property Resources and LuxuryCondosofPortland.com . You can reach Brad to arrange showings at 503-896-8856 or email at firstname.lastname@example.org
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
The market is slowing down…and not just a little! This is not a bad thing. In fact, I think it is very healthy for the market and helps us avoid a big tumble in the market.
Here are a few interesting numbers that support what was just said….
Inventory: Inventory in the area I focus on, from Pacifica Tower just north of the Freemont Bridge to South of South Waterfront, inventory levels are up 21% since June 1st! That is a pretty big jump in such a short period.
Price reductions: Since July 1st, in the Pearl District, 40% of the listed condos reduced their price.
Days on Market: This one is a bit tricky. Days on market has gone up but one must look at this stat carefully. There is a recent trend that is happening more and more. In a practice that I do not believe in, agents will cancel a listing and then re-list it. It is an attempt to make a listing look “fresh” and show less days on the market to buyers. This is why we must look at Cumulative Days on Market. Now if an agent has it on the market for a month and then cancels and re-list it, the number will reflect those 30 days prior.
What this means in the marketplace? For buyer’s, there is not such an urgency to make a quick offer. Buyer’s are able to look around for the perfect place and have a much better foot to stand on at the negotiating table. For sellers, trying for a premium price may hurt you as your condo may stay on the market longer than it should and in the end it may sell for a lower amount than it would have if priced correctly.
An example of this is one I believe I have discussed on my blog. A little over 4 months ago I went to a Broker’s open house on a beautiful penthouse unit. At that time, the agent listed it for $3,550,000. The agent, knowing that I specialize with condos, asked for my opinion on price. I clearly remember my answer: “ I think it needs to be at $2,999,000 and I think it will sell a little below that.” Well today, after 2 price reductions, it is now priced at $2,995,000. But now, after 4.5 months on the market, you will probably get the sharks swimming around it ready to offer $2,600,000. (It has actually been on the market much longer with another agent that was priced even higher!) … again, this is where you need to look at cumulative days on the market!
Moving forward in this new market, correct pricing will be very important in the sale of your condo or loft!
The tallest condo building in the Pearl! Welcome to The Cosmopolitan. Breathtaking views are the highlight of the Pearl Districts newest condominium in the North end of the Pearl Distict.
Upcoming Penthouse listings
A short time ago I wrote about the possibility of a $6 million penthouse listing that might be coming on the market. The owner loves the unit and is waffling a little whether he should sell it or not. As of this time, the owner is still undecided so I will post more as I hear. If you are looking for a full-floor penthouse in this price range, contact me and I can fill you in on the details.
Today I am writing about another penthouse that will be coming on the market soon. I was originally interviewed to list the property but unfortunately, the owners did not like the numbers I explained to them . I will say, I am usually right more often than wrong on pricing a condo and for this unit, I feel my numbers were very accurate as I have sold 7 of the last 14 units in the building. Of more importance, I sold the unit directly below this unit less than a year ago. The floor plans are identical! The one coming to market is a penthouse unit, so you would pick up about 12 inches of ceiling height. The unit I listed sold was for $1.1 million, and sold for over asking price. The $525 per square foot sales price tied a record of another unit in the building I had sold. For the penthouse listing, I told the owners I was going to push for another record price for the building and gave them my number. They were not satisfied with the number and thought the number should be MUCH higher! Their reasoning was not unusual from what I hear from others…they thought their unit was much better than the unit I sold below theirs and they also thought their unit was way better than another unit that sold in the building for $1.35 million.
From an agents (and a buyers) standpoint, the $1.35 million unit had better river and bridge views. In addition, it had 650 square feet more, and it had a third bedroom. Yet the sellers of this penthouse thought theirs was better and the price should correspond to their thinking. Now the owners did have a couple upgrades in this unit that the others did not. Let’s look at these. The TV was hidden behind a mirror and appeared with the touch of a button…kind of cool in a James Bond kind of way. Another upgrade was a white wood-like tile floor that the sellers really liked. The problem here is that I believe that 90% of potential buyers would rip up the tile and replace with something else, so it’s not really an upgrade. So what are the true values of these “upgrades”? The James Bond hidden TV was probably $3,000 to $5,000. Other than these two things, the unit was essentially the same as the unit that I sold below for $1.1 million. What is the extra 12 inches of ceiling height worth to someone? $50,000? So now we have a premium of $55,000. I told the owners I could sell it for around $1,200,000, maybe a little more. That’s an additional 5% over the number of $1,1550,000. It was not enough!
Now, because I don’t have the listing, I would love to find the buyer because I do love the unit and it’s views, (the photo above is views from the unit) but, at the right price for my client! I am not sure what price the listing agent will come out with, but I know it will be high. As your buyers agent, I will fight to get you a good price on this unit. If you are looking for a beautiful penthouse with amazing views, (The above photos are the views from this unit!) this could be the one! But, only at the right price. I will work to negotiate a good price for you and I know this building better than anyone. If we can’t get you that price, walk away!
If you are looking for a great penthouse unit in Portland, give me a call at 503-896-8856
Brad Golik is a luxury condominium specialist at Pearl District Properties and LuxuryCondosofPortland.com. You can reach him at firstname.lastname@example.org or by phone at 503-896-8856.
Because I was short of time this week, I thought I would do a video post!
The Penthouse at Waterfront Pearl. Looking for a spacious condo with water views? Welcome to the newest Portland penthouse listing at Waterfront Pearl! Last night I went to an evening open house of this unit and was actually impressed with the floor plan of this unit. This penthouse condo is priced at $1,049,000 and features 2 bedrooms and a den that is currently set up as a media room. While not large in terms of media rooms, it is comfortable and makes for nice space to watch your favorite movie. The total size of this unit is 1927 square feet. What I like about this particular unit is the fact that the bedrooms are very separate from the main living spaces. The kitchen is large and features Viking appliances. While the views are pretty industrial, the positive is that this unit is fairly private and does not have an adjacent building peering in on it. The water views are great, looking to the East and downriver to the North. Traffic on the Freemont Bridge in the distance offers a moving light show of entertainment at night while the boat traffic during the day is always fun to watch.
How does this unit compare to other condos priced near the $1,000,000 range? I would say pretty favorably. Lets start with the penthouse unit #1601 at Encore. Priced at $1,196,000, the Encore unit is slightly smaller. While it does have a larger deck space, the views from the Waterfront Pearl unit are much nicer. Priced at $1,199,000, unit #1411 at The Henry, in my opinion, does not compete. The Henry condominium is essentially a 1 bedroom with den with only 1620 square feet of living space and is not a penthouse floor. Originally priced at an insane price of $1,350,000, its current price is still high especially compared to the Waterfront Pearl unit that has a superior floor plan. unit #2300 at Atwater Place, priced at $1,070,000, offers 1692 square feet but is a NW corner unit…no comparison to the direct water views offered by unit #1001 at Waterfront Pearl.
If you would like to view the penthouse at Waterfront Pearl, please give us a call. We are condo specialist with a focus on the upper end of the condo market. We will negotiate aggressively on your behalf to get you the best purchase price possible. If you would like to tour other Portland penthouse condos or other Portland luxury condominiums, call Brad Golik at 503-896-8856