Every so often I like to let readers know when a unit that comes on the market that I believe is priced too low…today is one of those days! If you are in the market for luxury condos in Portland in the $1,200,000 to $1,700,000 range, here is one you should know about. Today, unit #2805 at the John Ross came on the market for $1,450,000. I believe this unit is priced far below it’s value. This unit, on the 28th floor, is selling for $265,000 less than the best possible comp …the unit directly above it. Unit #2905 sold in February of 2018 for $1,715,000. Now that unit had many upgrades in terms of the extensive remodel. With that said, that unit originally was on the market for $2,350,000. That price was certainly overpriced, and in my opinion, affected the final sales price to be lower than what it probably should have sold for. In the end, it sold for $635,000 less than it’s original asking price. WOW! With this said, the true value of that unit was probably closer to the $1,800,000 to $1,900,000 range. (You have often read on my blog the dangers of overpricing…this was a great example.)
Unit #2805 is priced $265,000 lower than what #2905 sold for…and in reality, when you look at what #2905 should have sold for you start to understand the value in #2805 being priced at $1,450,000. You are getting almost 2,700 square feet of open living space for a price you won’t find anywhere in the market. ( and don’t forget to compare these prices to those in the new Vista. For 2,700 square feet in the Vista it will cost you between $2,821,000 to $$3,335,000) Vista North Pearl
Now the biggest negative to this unit is the small deck space ( but this is the same deck space as #2905) not everybody cares about a deck…but MANY do! Another possible negative that I consider in units in South Waterfront is that it faces upriver. Why is this a negative you ask? Many people that buy condos buy them for views. While the daytime river view is nice, the nighttime view is mostly darkness. Another condo in the market that I think is reasonably priced is The Strand #901. This is a good example of the preferred views buyers like to have, which is a great river view during the day but at night you get the magical twinkling lights of the city. And at $1,375,000, it is a lot of view for the money!
If you are wanting to be at the bottom of the range in the above mentioned pricing ($1,200,000 to $1,700,000) another great view property to consider is a penthouse unit at Benson Tower, #2601. Priced at $1,199,000 this unit consist of the entire south side of the 26th floor. It has panoramic views that go from Mt. St. Helens, Mt. Hood, South to the Tilikum Crossing bridge, west to the sunsets over the west hills all the way back around to the St. Johns Bridge…wow that is some view! ( Check out those views at: www.PortlandPenthouse.com )
It is a buyer’s market out there and there are some values to be found. If you are in need of a condo with over 2,000 square feet, The John Ross #2805 is a value! With that said, if you want to consider looking at that unit, give me a call as I have a pocket listing coming on that is also near 2700 square feet that has great daytime views but better night time views than 2805. It was going to be priced near $1,695,000 but now with the low pricing of #2805, the sellers now realize they will be forced to go lower. Please give me a call if you want to see this unit or any of the units I have mentioned. 503-896-8856
Brad Golik is a 15 year veteran of the real estate markets and is a luxury condominium specialist. You can find him at his popular website www.LuxuryCondosofPortland.com
Now is the time of year that buyers begin to hunt for condos and lofts in Portland’s Pearl District, Downtown and South Waterfront. When looking at these properties, please be aware of the importance of price per square foot. Most important, and I have said this before, the price per square foot can vary dramatically based on where the unit is located in the building! I often deal with agents who mostly work in the suburbs, presenting offers on listings based on price per square foot. Trouble is these units were far inferior to the one I had listed. You cannot compare a 12th floor unit with views of Mt. Hood or the West Hills to a 3rd floor unit that is looking into an apartment building. It is also difficult to compare a unit with a deck with city views to a unit that is ground floor with no outdoor living space and less security.
I specialize in condos because I want to be an expert in what I do. Today, too many agents try to be all things to all people. In the end, they become experts at nothing because you cannot understand every part of the city and the nuances of every area. If you are looking for a home in Alameda, I am not your guy! There are agents in that area who know the market very well. Why as a buyer, would you use an agent from who does not understand the delicate balance of pricing based on the difference of just a couple of blocks?
The same can be said of the condominium market. Why work with a buyer’s agent that does not understand the nuances of the condominium market or the pricing of this market? As a buyer, it does not cost you more to work with a specialist. The truth is, it pays! As for someone who is selling their condo, it becomes even more important to work with a specialist. Last year, I spoke to a seller who was told by a competing agent ( who works for a company that does a ton of marketing on TV, stating they can save their clients thousands of dollars) that they could sell their condo for 5% higher than the Zillow “Zestimate”. Problem was that the Zestimate was extremely low for this property, which is not unusual. ( Zillow has an even tougher time with comparables in the condo market than Redfin or agents from the suburbs.) Had that person only priced their condo 5% higher than Zillow’s Zestimate, it would have cost them many thousands of dollars. In addition, the same agent, whose company says it can save you money on commissions, could have cost that same client thousands of dollars because of the lack of experience.
In addition to correctly pricing a unit, sellers should consider this one thing: I am in the condo market EVERYDAY marketing to condo buyers EVERYDAY. Every week I speak with folks walking by my office on 11th Avenue who are up from the Bay area looking for a place to buy. This presents a huge marketing advantage. I have said this before, a typical agent cannot go from marketing homes in Lake Oswego one day and then flip a switch and fill up their pipeline with condo buyers overnight. It just does not work this way.
And for that same agent to understand condo pricing overnight? It does not happen.
Please visit my new website at LuxuryCondosofPortland.com. See some great aerial drone photography of many of downtown condo buildings! Just click on the Buildings page.
Sometime ago, in one of my blog post, I wrote about the fact that I will always deliver my honest opinion. Sometimes that does not make everyone happy. Sometime it might be a seller in a building with an overpriced unit in a building in which I might have made comments about. Others include developers such as those who are selling The Cosmopolitan. As we speak, The Cosmopolitan continues to sell units at prices I have said to be very inflated. I have gotten my fair share of nasty emails for some of my comments and that is ok…because, as I stated earlier, you will ALWAYS get my honest opinion and I will not buckle because of what others ( or their lawyers) have to say. I believe the reason the sales continue (about 60% sold) over there are simple, a lack of inventory in the market has made people nervous about being able to buy something so they jump in with both feet. When I work with buyer’s the one thing I will always tell them is to think about the resale of that unit in the future. For those buying at The Cosmopolitan, and are buying there because that is where they want to be and don’t care about the price, or resale. I would say to enjoy your unit and the building. It will be a great place to live! For those that have concerns about resale, especially in a changing market, hear me out! In previous blog post I have made comparisons to the Seattle market because I feel it is the most like ours, except more expensive. Inventory levels in Seattle are even worse than ours currently. For those of you who may have not been onboard with comparisons I have made in the past, let me SHOW you! For comparison sake, I will be comparing to Bellevue Towers. In my opinion, a slightly higher quality building in terms of amenities and views with quality of each being pretty close. Let’s compare: Now, for those of you that know The Cosmopolitan will be a nice building with nice amenities, here is what you get at Bellevue Towers. To me, these comparisons are pretty alarming. If the market turns ever so slightly in a downward trend, it will not be a good situation for owners. The reality of the Bellevue Towers pricing is that it is market pricing… not hype adjusted! And if you need more convincing on the higher end. Compare the Penthouse at The Cosmopolitan. 3236 Squre Feet , 28th Floor priced at $3,883,000. Now compare it to a PH on the 41st Floor of Bellevue Towers…click here to see what you get! http://www.realtor.com/realestateandhomes-detail/500-106th-Ave-NE-Unit-4105_Bellevue_WA_98004_M15387-66117?row=4 Wow! So let’s review. The penthouse in Portland is smaller (167 sq. ft.) has nice views but not the spectacular views that the Seattle penthouse has and…. it is priced $533,000 MORE! This is why I am concerned! Brad Golik of Pearl District Properties is a condominium specialist in the Pearl District, South Waterfront and Downtown. If you own a Pearl District condominium and would like to know the value of your condo in todays market, get a FREE market valuation at http://www.PearlDistrictCondominiums.com