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If you have ever listened to the sports show The Herd hosted by Colin Cowherd you might know that on his show on Mondays he talks about sporting events over the weekend. He then goes on to discuss where he was right and where he was wrong in some of his predictions. I want to do a little of the same here and discuss one of my previous posts. In that post I mentioned a few penthouse units that were on the market, Pinnacle #1403 and Elizabeth #1502. I mentioned that I really liked #1502 at the Elizabeth.
Where I was right: I said that with patience, a buyer was going to really be able to pick up a good buy on this one!
Where I was wrong: I said a buyer might be able to pick it up for $300,000 to $400,000 off of its value at The Elizabeth! Boy….was I wrong!
The other unit, #1403 at Pinnacle sold on 5/3/2019 for $2,200,000 or $99,000 off of it’s recently reduced price. Now the buyer was probably thinking “ya, I got an ok buy, not a great buy, but ok!” (now to remind you, this penthouse was just 2600 sq. ft.)
On 5/8/2019…3 days later, the buyer of 1403 was probably saying… “Oh no!” because on that day Elizabeth #1502 just closed for …. Drum roll please…. $1,900,000! Ouch!
This penthouse was much larger and had less obstructed views. Now is the buyer of #1403 thinking they grossly overpaid? Now here is the Where I was wrong part comes into play. This unit had it’s priced reduced from $2,995,000 to $2,695,000. I was thinking $300,000 to $400,000 off of that price is where it was going to sell for. Normally, I would be saying “Awesome job” by the buyers agent that got his client such a great deal….however, not this time because buyers agent was also the listing agent! Who was the agent really working for here? You have heard me say before there are times when I will handle both sides of the transaction and other times when I would not touch it with a 10 foot pole. Well, this was one of those ten foot pole times! How does the buyer pick up this penthouse for $795,000 off of the “reduced” list price? The other consideration to look at is the fact that I also had a penthouse listing in that same building ( it was smaller 1 bedroom penthouse) and it sold for full price in 6 days! It closed two weeks before #1502.
When you are an agent handling both sides, it can be a tricky situation. In the situation of #1502, the listing agent took over the listing from another agent who had last priced it at $3,199,000. The new (current) agent took over the listing and convinced the seller that the price should be reduced to $2,995,000 ( I am gussing that agent said ”this is where I think I can get it sold!”) Now, 9 months later, this agent allows his client to sell it for One Million Dollars less? Wow. This is really a total head scratcher to me, especially after just selling the other penthouse in the building at full price. Did the buyer get a good price? I think a VERY good price! And while this is great for the buyer, I am not totally happy because I worked with some buyers who bought another penthouse at The Elizabeth 3 years ago… and it affects their value now. The market has not been going down the last 3 years!
What is the reason that this unit sold for $1,000,000 less that what the agent originally said it was worth? I don’t have the answer to this. This will end up being a tremendous purchase for the buyer. Not so good for the seller!
I mentioned how, with patience, you can get good values. I really did not see this one coming though. Now, the new buyer will pick up a stunning penthouse and put some money into it ( total kitchen remodel) and have an amazing unit. Let’s say this buyer invest $400,000 into this unit. At $2,300,000, you will have one of the nicest penthouse condos in town for $668 a sq. ft.! Compare this to the smaller penthouse units being offered at Vista for $1044 to $1228 a sq. ft. You have heard me talking about the benefits of buying some of the older penthouse units and putting some money into them… this is a prime example, and you will get to choose all of your finishes to your taste and chances are they will be even a little more higher end than what you will get at Vista …and for almost half the price per square foot! This new penthouse comp in the market will certainly NOT help to sell those remaining penthouses at Vista.
You want to capture top dollar in the sale of your luxury condominium? Any agent can sell your condo, but at what price. Brad Golik, a condominium specialist at LUXE Christie’s International Real Estate, gives you the best in condominium marketing. To see more on Brad’s philosophy on real estate marketing, please visit: https://www.luxurycondosofportland.com/marketing
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Brad Golik – Broker – email@example.com 503-896-8856
There is a new 27th floor listing on the market and get this… it’s not selling above $1,100 a square foot! If you may recall, when the Cosmopolitan had two of its 27th floor penthouses on the market they were priced at $1,059 and $1,192 a ft. There are not many 27th floor properties that come on the market, because there are not that many taller buildings, but when they do come on the market… the views are spectacular!
This week I listed unit #2701 at Fountain Plaza at KOIN Tower. The price for this spacious 3,834 square foot unit is $1,795,000. At this price we are talking about a price per square foot of $468. Less than half of the 27th floor units at the Cosmo! Now, it is true that the Cosmopolitan is the newest and shiniest condos on the market and people will pay a little bit of a premium for new. But to be able to pick up a 27th floor condo for a price per square foot less than a majority of the condos for sale in the Pearl is crazy!
While, as I mentioned, the Cosmopolitan is the new kid on the block, KOIN Tower was the grand dame! Fountain Plaza, which later gained the new name of KOIN Tower was built in 1984 and, at the time, was the “Cosmopolitan” of its generation. Many of the units have had extensive remodeling, and many units have not. I believe we are starting to see a transition in this building as many of the original buyers are no longer with us. Currently there are six units for sale at Fountain Plaza and several are being sold by the estates of the previous owners. With that said, I believe we will start seeing a younger generation move into Fountain Plaza.
Fountan Plaza / Koin Tower is building that gives you the feeling of being in an upscale building in New York. Its ziggurat –like profile and its attention getting blue crown are reminiscent of the Art Deco skyscrapers that were built on the east coast in the 1920’s. Dottie, the lead concierge of the building, in my opinion, is one of the best in the city! Much like the doorman you find in New York, Dottie and one of the other concierges on her team, Chuck, make it a point to get up and open the doors and greet the owners as they leave and arrive. She also makes a point to train all other concierges to do the same. She would never stand for just pushing a button to open the doors and not greeting guest at the door!
If you are in the market for a spectacular unit with amazing views…welcome to #2701 at Fountain Plaza! This 3,834 square foot unit features 4 bedrooms, 4 baths, a den and a spacious 19×10 foot gym. The kitchen can be expanded into the adjacent large 16 x 6 foot pantry. While this beautiful unit is “Move-in” ready, it also has a wonderful footprint and someone that wants to put their own stamp on it could easily do so. Think about this. If you bought this beautiful unit, did a $250,000 remodel to expand the kitchen, give it an open concept, and a luxurious master suite… you are still only into it for $533 a square foot, again, still less than half of the price at The Cosmopolitan!
As I said above, I believe this building will start to go through a transition. We are not seeing as many new condo towers being built like in years past. We very well may see more buyers who are cautious with their money, buy properties in buildings like Fountain Plaza, make them spectacular with all of the money they are saving and being at the forefront of a resurgence in some of the older buildings.
If you are in the market for a large unit with simply stunning views, give me a call!
Brad Golik is a condominium specialist at Pearl District Properties and LuxuryCondosofPortland.com
You can reach him at 503-896-8856 or by email at firstname.lastname@example.org
Just yesterday I was having a conversation with two other agents who do a fair number of condo sales. The topic of conversation was the market and the consensus was that it has definitely seen a slowdown in pricing. With the increase in inventory, we are noticing a slowdown in terms of appreciating prices. In some cases, the pricing could even be slightly less than what we have been experiencing for so long.
And then this happens! Just this morning, on the MLS, a penthouse unit at The Casey went from pending to sold. The unit never hit the market. The sold price, brace yourself, $4.5 million cash! Unit #1503, is a 3667 square foot condo that faces the West Hills. Consider these numbers for a moment. At $4.5 million, this is $1227 per square foot! Let’s compare this to the recent penthouse sales at The Cosmopolitan. Now keep in mind, for comparison sake I will use the penthouse units from the 27th and 28th floors at the Cosmo. The combined unit on the 27th floor sold for $5,441,294, or $1216 a square foot. The two top floor penthouses on the 28th floor sold for $1215 and $1225 a square foot. These units are 13 stories higher and have superior views of the Mt. Hood, Mt St. Helens, the city and the Willamette River.
I will say, The Casey has always been one of my favorite buildings… but really? Is this unit worth nearly a million more than a 28th floor, true penthouse that is 13 floors higher? While the Casey unit does have around 400 square feet more space, (which does not really mean that much once you get over 3,000 square feet) the potential for having views blocked are much higher for a unit that is only 15 stories compared to a unit that is 28 stories. After all, one of the reasons people paid such a premium for these Cosmo units is the fact that the views will be protected much more by being that high up.
What is even more interesting is when we compare the sale of this unit to one that just recently sold at the Casey, unit #1602. This true penthouse unit one floor above has similar views. It has 3273 square feet and sold for $2.75million or $840 a square foot….WOW!
Contact Brad Golik at 503-896-8856 or at email@example.com
Visit us at www.LuxuryCondosofPortland.com
See Cosmopolitan views here: http://www.luxurycondosofportland.com/thecosmopolitanportland
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.
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.