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.
The current market is an interesting one.We continue you see many price reductions on properties. With that said, condos in desirable buildings like The Cosmopolitan, if priced right, will sell in a short time. There are many units in the market, but special units, units that are not so typical can go quickly.
In a previous post I mentioned that buyers who have patience will be rewarded. We have seen many properties that have gone through 5-6 price reductions. Condos that were way overpriced are getting pummeled , especially those that have had that many reductions. A good example of this is a condo I have talked about before is the penthouse #1502 at the Elizabeth. That penthouse was originally priced at $3,650,000… a number that was incredibly high from the start. Now, after another price reduction, it is now priced at $2,695,000. If you may recall, when I previously mentioned this unit it was at $2,995,000 and I said I really liked it but that you will be able to pick it up at a better price later. That time is here! And now that it has struggled for a year on the market and gone through 5 price reductions, the sharks are circling and will eventually get an even better deal on this on. If you can pick up this one for $2,400,000 to $2,500,000 and add $100,000 for a new kitchen…you will have one stunning unit for a price much less than you will find in new buildings like Vista and The Cosmopolitan. In 2016 I sold a similar penthouse (#1406) in the same building. This would have been the ideal comp when listing #1502 and if it would have been priced correctly, maybe $2,850,000 to $2,950,000, it probably would have sold. Now, because it was so overpriced, it will probably sell for $300,000 to $400,000 less than it should have.
While I am talking about penthouses, I would like to revisit the new Vista condominiums. This seems to be a subject that my clients keep bringing up. When I wrote about the Vista penthouses in a previous posting: https://luxurycondosofportland.wordpress.com/2018/10/12/why-are-the-vista-penthouses-not-selling/ I believe at the time they had 1 penthouse sold and 2 were pending. (out of a total of 6) Now it looks like the two pending units fell out of escrow and only #2012 has sold at a price of $3,075,000. There are still 5 of the 6 penthouse units on the market.
Portland is soon to see two of its most expensive condos hit the market! Both of these penthouse condos will be in the $6,000,000 range. Based on their square footage they will be priced at $1192 to $1370 a square foot. Keep in mind, Vista #2112 is $1228 a foot. The difference is that both of the new penthouse listings are 7 to 10 floors higher. They are also totally custom with very high end finishes. If you are in the market for a large, stunning $6,000,000 condo, give me a call and I can give you a heads up as to where these penthouses are and to get more information, give me a call.
Are you looking for something a little more affordable? You will begin to see more condos coming on the market. Many will stay on the market for awhile and others will not. The ones that won’t are ones that are more unique like a special corner unit in a building or something like a 1 bedroom penthouse unit. When you have a condo that is unique, the urgency to not miss out is much higher. When you have 10 to 15 condos that are very similar like interior units at the Edge, Elizabeth, Gregory and the Elliot, there is no urgency or fear of loss. As you move forward in your search for a condo, work with a specialist, someone that understands the condo market and understands why one unit at $600 a ft make sense while another one does not. Just as a $6,000,000 penthouse at $1190 to $1370 a foot can make more sense than the very linear penthouse units at Vista priced at $1050 to $1228 a foot or why the 04 units at Vista were priced correctly and made sense at $922 a foot.
In my post about the Vista penthouses (see link above) I mentioned that the views from The Cosmopolitan were much better in the floors 19, 20 and 21st than those same floors at Vista. A 20th floor unit at Cosmo just went pending at $1122 a foot. Compare that to one of the 20th floor penthouses at Vista and there is no question…the views from the Cosmopolitan unit is far better and the amount of windows and natural light make it hands down a better value!
Brad Golik is a 15 year real estate veteran and is a condominium specialist with the market leader…Christie’s International Real Estate. You can reach him at 503-896-8856 or at his website http://www.LuxuryCondosofPortland.com
Now, more than ever, quality marketing matters in the sale of your Portland luxury condominium. Christie’s International Real Estate is the market leader… worldwide!
Every condo may or may not have the best location… in the building or within a neighborhood. So when you go to sell, what are you going to do? Watch this video if you want to see what I think are the three most important words in real estate!
Brad Golik is a condo specialist in Portland, OR. with a focus on the Pearl District, South Waterfront and downtown. You can reach him at 503-896-8856.
This beautiful 28 story tower is the tallest condominium building in Portland’s Pearl District. To see available units in this building, call Brad Golik at 503-896-8856 or contact him at firstname.lastname@example.org.
Yesterday I attended a Mastermind meeting that was an invite only meeting for some of Portland’s top agents. The speaker was very good and covered many good real estate topics. One thing that stood out to me though was something very simple and something we, as agents, hear every year. The National Association of Realtors does a survey every year with real estate customers asking them what is the most important thing to them in working with an agent. You might be thinking it should be a “Knowledgable” agent or something about commissions. Once again the #1 answer was honesty! Buyers and sellers want an honest agent, someone they can trust to have their backs.
I bring this up in my blog because of some recent things I have seen in the market. One of those things is the recent bombardment of ads from Redfin and their new 1% listing fee. Right out of the gate, they are missing the #1 thing people want from their broker, honesty! That 1% listing fee is very misleading because the actual cost to the seller is 3.5% ( On top of the 1% they still have to pay the buyer’s agent 2.5%) One of the reasons that the Redfins and Zillows of the world are not doing great is because they are corporations that care about the bottom line…and not the client! Starting off with a lie, in any business, is not your best way to build trust! Unlike the corporations, agents are independent contractors ( even if they work for a larger chain brokerage firm) These independent contractors care about their clients more …it is their livelihood at stake.
I see many ads that are misleading or just plain wrong. I recently saw a website of a new agent. On their website and Instagram site, they state that they are a “Luxury Home” specialist! It is very funny to me, and not exactly honest, that someone who has not been in the market but a few months and not sold a home over $700,000 claims to be a “Luxury Home” specialist? The worst thing is that I know this person. I really wanted to call her and say to her that the #1 thing people want is honesty and you are starting off with something that is not true. I did not call her because I feel it is not my place to do so, but I wish somebody would because it would do her more good in the long run.
Honesty comes in many different forms. I very much appreciate agents that are trying to get a new listing that are honest in their pricing! I see so often agents that overpromise the pricing to get a listing over another agent. What happens in the end is VERY familiar, the home sits on the market forever with no offers, the agent then starts doing multiple price reductions and then finally the home sells well below where it should have if it were priced correctly. Unfortunately that agent still gets rewarded and the agent that was honest in their pricing, the one that might have sold it for a higher price , gets nothing!
There are many really good agents out there. There are many that give you all that they have to do the job right…and that means putting their needs aside and working for the clients best interest to capture the best price for their clients and take care of all of their needs.
In years to come, you may have multiple options in selling your home. We have begun to see programs that are trying to disrupt the way homes are sold. The interesting thing here is that none of these new programs care about getting you a premium when you sell. It is just about selling the home and collecting a fee. I know, as a person that has been in real estate for 15 years, if I had someone sell a house for me it would be someone that I know has my back and truly cares about me and my finances. It would be someone that I know would spend money to market my home in many different avenues to give it the most exposure ( the big corporate discounters will NOT be doing this!) When an agent does this, more times than not, they will sell that home for a premium price…a price that far exceeds the amount of discount that the corporation says they will be “Saving” you.
Please visit my page on marketing: http://www.luxurycondosofportland.com/marketing
In the end it all gets back to what clients are looking for…honesty! The client can be reassured that the person they hired really does care about them and their finances. The agent is upfront from the beginning ( no bate and switch) They can be comfortable in knowing that that the price they are suggesting is accurate and in the end, that agent will do everything that they said they would do!
Brad Golik is a condominium specialist with Total Property Resources and LuxuryCondosofPortland.com You can reach him at 503-896-8856 or at email@example.com
Any agent can continuously reduce pricing of a condo…and at some point, it will sell! Our goal is not to just sell a condo but to maximize the price for the seller and still sell in a reasonable amount of time. There are many agents out there that do little to no marketing for their listings because they believe it will sell on it’s own by just being in the MLS (see Redfin) Some think they can get away with only point and shoot photos and that is the extent of their “Marketing”. I am here to say that as things slow down an agent must get that listing in front of buyer’s and buyer’s agents as often as possible. I have seen many agents get fired because of their lack of advertising a listing… I have yet to see an agent fired because they did too much advertising! Now, doing a lot of advertising does not mean that is the best route. But when you combine a good quality campaign around a listing, feature it often in a classy, professional way, I believe the quality of the offers, not just the quantity of offers that come in will also be better!
Brad Golik is a condominium specialist with Total Property Resources and LuxuryCondosofPortland.com You can reach Brad at 503-896-8856 or by email at firstname.lastname@example.org
Brad Golik is a condo specialist with LuxuryCondosofPortland.com and Total Property Resources in the Pearl District. You can reach Brad at 503-896-8856 or at email@example.com
Yesterday morning I was at a coffee shop reviewing new condo listings that just came on the market. I noticed that the lady next to me was looking at my laptop watching what I was doing. After not too long, she asked me if I was a real estate agent. I said that I was…and then she unloaded with a recent experience she had had in buying a condo. The woman, whom I will call Jan, told me she had such a frustrating experience with the agent she had used. To make matters even worse, this agent also happened to be an agent that was referred to her by a friend of hers. As I dug a little deeper to how this agent was referred, it turns out the friend referred her because she was a very nice person! Now I have been in this business for almost 15 years and the one thing I can say is there are MANY nice people in the business. But, I can also say that many of these same people are not agents that I would hire knowing what I know! Jan told me that it was very frustrating during the searching period because this agent knew very little about the condominium market. She said she spent so much time walking around buildings looking for lockboxes…and this was her first clue that she did not deal with condominiums very often. The second thing that she said was frustrating was that whenever she asked her about the pricing of a condo they looked at, the standard answer was “It seems fairly priced!”
This is a very typical situation that I see all of the time in the Pearl District, South Waterfront and Downtown. Many buyers may get referred to an agent that a friend suggest…maybe an agent they had used or heard about out in the suburbs. The condo market is very different than dealing with homes out in Lake Oswego or Tigard. I have often written on the importance of working with a specialist. If I were selling a home in Lake Oswego, you can bet that I would want to use an agent that sells there often and knows the pricing and other aspects of selling in that area or at the very least, someone that is VERY good with marketing! Same goes with condos and lofts. I have often said to sellers that a typical agent cannot just flip on a switch and be great at marketing to condo buyers when 99.5% of their time they are marketing to buyers of suburban homes…in several different areas!
One of the reasons you hire an agent is for their expertise and knowledge, or at least it should be! An agent can be nice, but they also need to know what they are doing. Being nice is fine but when it comes to negotiating, that agent needs to be tough and always put their clients best interest first and not “cave” with another agent that is tougher with negotiating! When the time comes for a person to sell their condo, a condo specialist is even more important! Having an agent that is constantly marketing to condo buyers is important. Hiring an agent that spends most of their time marketing to buyers looking in Tigard, Gresham or Wilsonville may not be the best way to go…even if that agent is a very nice person!
Jan said the last straw was when she got to closing she was surprised that she had to pay a Move-in/Move-Out fee that was close to $400 and also was shocked to find out she had to pay a 1 time capital contribution fee equal to 2 months HOA fees… 2 things her agent never mentioned because she did not know about. (this is disclosed in the HOA documents) I felt bad for Jan but it is something I see all of the time.
Every week as I look at new listings, as I was doing in the coffee shop, I am amazed at the number of new listings that come on the market that are listed by agents that don’t deal with condominiums. The one thing that always amazes me is I never get a postcard or an email about their condo listing! As a condo specialist, I make sure that every agent that deals with condos and lofts gets a video about my new condo listing. Why? Because I know that the other agents that deal with condos often have their pipelines filled with CONDO buyers!
I enjoyed my conversation with Jan and in the process met a new friend over a cup of coffee! In time, hopefully Jan will refer me to a friend. But hopefully, it will not be because I am nice. Hopefully it will be because I am nice…with knowledge!
Brad Golik is a condominium specialist with http://www.LuxuryCondosofPortland.com and Total Property Resources in the Pearl District. You can reach Brad at 503-896-8856
Follow us on either Instagram ( #pearlcondos ) or on our condo blog ( TheCondoPulse.com ) and get your chance to win a $100 gift card to Brix Tavern in the Pearl District! Winner will be drawn the end of April…don’t miss out on a chance to dine at one of the Pearl Districts “Favorite” places to eat!
Yesterday I listed a condo at KOIN Towers Fountain Plaza. With the “New and Shiny” buildings we have recently seen, like The Cosmopolitan, it’s nice to be able to go back in time a bit and revisit buildings like KOIN Tower. At the end of last year I sold a unit at KOIN/Fountain Plaza on the 27th floor for $1,750,000. It was a large unit with spectacular views. My new listing, just one floor below, and again, it provides some of the best views in the city! This northwest corner unit offers sensational sunset views to the west, amazing Mt. St. Helens and Mt Adams views to the north and Willamette River views to the northwest. This 1950 square foot unit has wonderful open spaces…and those amazing views! The best part of all, at $929,000, you are getting this for under $500 a square foot! Now remember, 26th floor views at The Cosmopolitan went for over $1,100 a square foot! OK, now the KOIN Tower is NOT The Cosmopolitan, but it represents luxury at a good value!
I believe we are at the beginning of a major transition in the KOIN building. Many of the original owners are gone and a newer, more thrifty demographic is buying in. There are not many condo buildings being built right now (The Vista) and I can see moving forward, many buyers recognizing the potential and value in a building like KOIN Tower/Fountain Plaza.
While current owners at the KOIN have not really participated in the run up of prices the last 10 years, buyers today will find a high quality building with unmatched views and will benefit tremendously moving forward. The area around KOIN Tower is also improving with several hotels with new restaurants, and a high- end grocery store. I cannot really think of a better time to buy at KOIN/Fountain Plaza than right now. To set up a time to see unit #2604, give me a call and be ready to be wowed by some awesome views! If you would like to tour this fantastic unit, give me a call today!
Video at: Aerial KOIN Tower
Brad Golik is a condo specialist at LuxuryCondosofPortland.com and Total Property Resources, LLC. You can contact Brad at 503-896-8856 or at firstname.lastname@example.org
One debate I often hear is whether a real estate agent should represent both sides of a transaction. The question lies on whom you represent. I have been in real estate for 13 years and have done transactions where I represented both sides. I have guidelines that I personally use when deciding whether or not I would feel comfortable in doing so. Here are the things I consider:
1) Is it a win-win situation for both parties? In other words, is the seller getting what they wanted or maybe a little bit more? Is the buyer happy with the price and it is reasonable?
2) Did the listing stay on the market long enough to give the sellers an indication of demand, or lack of?
3) Are there good comps that support the price that the buyer is paying? If not, and I am selling for a record price in the building, I would not touch dual agency with a 10-foot pole! This is where it gets very tricky. If I am a listing agent, and I am selling for a record price, and there are no comps that justify my pricing…I just hit a grand slam for my selling clients! If the buyer’s agent allowed their client to pay that amount, well let’s just say I don’t want to be THAT agent! Especially as a dual agent! NEVER! Now I will say there have been times where I represented clients that had so much money they just did not care about the price, they just wanted the condo. In that situation, you make sure that you document that conversation.
Regarding #3, this is where representation comes into play. As a dual agent whom do you represent? You should be representing buyer and seller equally. But how is this possible when you have a situation like above? If you are getting a record price for your sellers, and there are NO COMPS to support the price, how can you be the buyer’s agent and say “I did a good job for my clients”? The answer: You can’t!
If this same agent acted only as the buyer’s agent, you can bet that he would be hammering on the seller’s agent that the unit is at a record price and might be overpriced? Now, records are meant to be broken. So how much of a record price is it? Is it $10 to $30 a square foot more? That is reasonable. Is it $50 to $100 a sq. foot more? This is when you have real problems. For one, the property would most likely not appraise. But what if the buyer is paying cash and an appraisal is not required? Well then the buyer is really at risk. This is when they REALLY should have a separate agent. ( and for peace of mind, the cash buyer might still consider getting the property appraised).
In multiple-offer situations, if an agent is representing both sides, he or she better make sure that their buyer’s client is the best offer! If it is, the listing agent and the seller are making the final decision as to which offer to select. In this situation, there is no problems in representing both.
So bottom line: If both parties are happy and well educated on pricing, and there are good comps to support the purchase and sale, there are no problems.
On the flip side. If there is a big difference in price from the comps, especially if it is a record price in the building for the seller or huge discount for a buyer. This is when you need two agents fighting it out for their client’s best interest. I would never do dual agency in this situation!
Brad Golik is a luxury condo specialist with LuxuryCondosofPortland.com and Pearl District Properties in Portland, OR. You can reach him at one of his websites including http://www.LuxuryCondosofPortland.com and www.PortlandPenthouse.com or by calling him at 503-896-8856
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 email@example.com or by phone at 503-896-8856.
Because I was short of time this week, I thought I would do a video post!
Recently a friend came by my office and we began discussing real estate. This friend often reads my blog post, and in our conversation, he mentioned that I hammer on the issue of agents not using professional photos. He also said that he could not believe that there were that many agents who don’t use professional photos, knowing that it has been shown that great photos help sell homes faster and for more money. So, why not hire a professional photographer? It is hard to explain.
To prove my point, I asked my friend to pick any condo building in Portland. He looked at our inventory sheet and saw that Waterfront Pearl had more listings than other buildings, so I used that building as an example. In my opinion, EVERY listing should have great photos, especially higher-end listings. In this example I will use listings priced at $750,000 or higher. Currently at Waterfront Pearl there are 6 listings above $750,000 (they are priced from $798,000 to $1,049,000) Of these 6, only 2 of the 6 listings have used professional photography! Again people, these are $800,000+ condos for sale!
To say that my friend was shocked is a huge understatement. His comment: “Why would someone hire an agent who does not care enough to do their best for their client?” Hmmm… where have I heard this before? Why would an agent not spend a few hundred dollars in an attempt to gain thousands more for the client? And if that agent is not spending money to do a nice job on the photos do you think they are going to spend money on doing a nice video, expensive print material or internet marketing? Probably not.
The National Association of Realtors has shown time and time again that homes listed with high-quality photos sell for more money. If you are an agent who doesn’t spend on professional photos, you might as well be telling your clients upfront that you just don’t care what their home sells for! Harsh? Maybe. True? You be the judge.
Brad Golik is a condominium specialist at LuxuryCondosofPortland.com and Pearl District Properties. If you would like to see any listed condo or loft, call Brad today at 503-896-8856.
Design approval for Block 20 recently happened. For more information on this project, click Block 20 http://www.nextportland.com/2016/07/13/block-20-approved/#more-8144
Also, notice of pile driving went out recently!
So how will the timing be for the release of new condos at Block 20? I do not believe they will be as favorable as they were for the developers on The Cosmopolitan. If you remember reading on my blog, Hoyt Development had the perfect storm happen for them when they released their highly priced (a majority in the $600 to $1200 sq. ft. range) units. When the Cosmopolitan was released, inventory levels were at extremely low levels…non- existent almost! They were able to capture crazy pricing because buyers had no other options. That is not the case right now in our market. Today, like everyday, I brought up new condo listings. What was most interesting to see was that there were 11 price reductions! This is something we are starting to see everyday as things have slowed dramatically. So , moving forward, it will be a different environment for the developer.
I took a fair amount of abuse from the developers about my many comments about the Cosmopolitan, most were about pricing. Did they sell out the building at those high prices? Yes! (98%) sold. Good for them and their and their profits! (maybe not so good for the owners) If you recall, my biggest fear of selling a unit at The Cosmopolitan was worry for my clients that the market could slow down or turn around and what would happen to buyers who paid such a big premium when or if that happened… Guess what? That time is here! The market has slowed dramatically. (again, look at price reductions in the market) What will happen when Cosmopolitan buyers need to sell ( job relocation etc.)? Stay tuned. I do not believe it will be a good thing for the seller’s. Another consideration is the high number of apartments that have been built in the downtown area. I feel we must be reaching a point of saturation in the rental market. When this happens, rental rates go down. For the last several years, it has been cheaper to buy instead of renting with rental prices at $2.25 to $2.75 a sq. ft. When rental rates start dropping, you will have more potential buyers going the rental route than we had before. They will be happy to sit on the sideline and let the slowdown happen and be patient before buying.
What about the pricing at the new Block 20 development? One thing I know, construction prices ( concrete, steel, sheet rock) have continued to rise. Will we see prices touching $1000 to $1200 again? I don’t believe so. Much will also depend on the finishes of the building though. Will they compare to that of the Cosmopolitan and The Metropolitan or will they be a notch or two lower?
If you have questions about Block 20 or wish to be on a waiting list for info, please give me a call. If you think there may be some interest in the new project, keep this in mind. It will be important to work with a buyers agent not associated with the developer…remember, the buyers agent works for your benefit, not the developers!
Brad Golik is a condominium specialist with Pearl District Properties.
If you would like see any of Portland’s beautiful available condominiums, give Brad a call to set up a viewing tour.
503-896-8856 – firstname.lastname@example.org
What about Redfin?
Redfin in truth is nothing new! Limited service companies are nothing new, and like many before them…you get what you pay for!
Before I give my 2 cents, here is a little blurb I thought I would show because it sums things up pretty good:
Ok, now my 2 cents!
One thing I do not care for is misleading advertising. When you bring up the Redfin homepage you will read text that states: “Redfin Agents sell homes for $4,300 more and charge only a 1.5% listing fee.” For one thing, the total listing fee is not 1.5% it is 4% (2.5 %to buyers agent + 1.5% listing agent) The next thing really burns me…$4,300 more. Are you kidding me? When I go against a Redfin agent, its like a shark in a busy public swimming area…you start licking your chops! Why? Because I know that usually the Redfin agent is not experienced, and usually VERY weak at negotiating. I believe you can ask the top 500 producing agents in town and you will get the same answer! They are NOT getting their clients more…but less!
Let me share a little with you about the Redfin system. Redfin corporate works their agents 60 to 70 hours a week. All of their agents are inexperienced agents when they hire them. The mid management of this company is weak at best as the redfin agents are not trained to be valuable assets to their clients. They underpay them and then as agents are with Redfin long enough, and gain experience, they leave to become a full service agent because they just don’t make the money to justify their time. I SEE IT ALL OF THE TIME!
Redfin agents are essentially order takers and are NOT hands on agents. The comments above are very typical. The facts about Redfin is that it is still a very large company that is still bleeding money to survive. I do not worry about them because real estate will always be a very hands on business that takes an agent that cares about his clients best interest. How can an agent negotiate for a buyer when he has not even seen the home ( and for that matter…any of the comps!) The answer…they don’t. So it is pretty crazy to state that you are getting your clients $4300 more!
Brad Golik is top producing condo specialist in Portland, Or. He is a co- founding member of Condo10.com . You can reach him at http://www.LuxuryCondosofPortland.com or by calling 503-896-8856. ( email@example.com)
Last night I listed a penthouse unit at The Elizabeth. If you are in the market for an amazing place in the heart of the Pearl District…check out the video: http://video214.com/play/7vdRuUinppTpWTplmLajfg/s/dark
For a private showing, please call Brad Golik at 503-896-8856
Everyday I bring up the Portland condo list to see any new listings, see if anything has gone pending and to see if old listings have expired or were canceled. Sometimes what I see just makes me shake my head in disbelief. No question, this is a pretty hot market and I do see people paying more than they might normally do. And, while I do not believe we are at a peak yet, it is certainly not a time to let my buyer’s grossly overpay for a property either. Today, a new penthouse came on the market. This is a penthouse at Atwater Place in South Waterfront. The price is $2,700,000 and it is priced at $1000 a sq. ft., the same as what you are seeing at the brand new Cosmopolitan on the Park. Except that at the Cosmo, $1000 gets you up to the 27th floor in a brand new building!
Awhile back I wrote about three penthouse units that were priced in the $3,000,000 range. The first was the 3.8M penthouse at the Cosmo, which I thought would be the first to sell ( it just went Pending again this week). The first one to sell was actually the penthouse at The Elizabeth that was priced at $2,995,000. I represented the buyer on the purchase. You might have read in my blog “Who says it’s a seller’s market?” about the great price my buyer got for that unit… $2,200,000 fully furnished. The third one, and it’s still on the market, is at The Casey and still priced at $3,249,000.
I mention these three units because all three tried to push the $1000 ft barrier. I mentioned I thought the Cosmo would be the first to sell for a few reasons. First, it is a brand new building and brand new buildings always get a premium. Also, at 3.8M this is a property where the buyer can afford to “overpay” and are ok in doing so in order to have “The Best”. The penthouse at the Elizabeth was actually the first to sell and it sold for under $700 a ft.
In mentioning these three units, it helps clarify the pricing on the new Atwater Place penthouse. For one, it is not a new building…so no premium here. 2nd, it is not in The Pearl District…again, no premium here! (While I do like South Waterfront, the Pearl always gets a premium!) Also, keep this in mind, Unit #2403, a NE corner penthouse at Meriwether just went pending at $1,675,000 (598 sq. ft.). It was slightly larger and on a higher floor! At $1000 a sq. ft. the Atwater penthouse is just priced high. Sure, being a penthouse with great river views does justify a high price. (It does have outstanding outdoor living space) Will it sell? Sometimes there will be just the right buyer that loves the place, and the buyers agent usually sells homes in the suburbs and does not understand if a unit is priced high or not. The answer… you never know!
Another listing that was recently brought to me that is not in the MLS is one of the iconic townhomes on 11th in The Pearl. Before I mention this one…I want to show you a few of the comps first. Two units, with 2698 sq. ft. recently sold. One for $1,850,000 the other for $1,900,000. A third sold ( 2 units combined with 3888 sq. ft) for $2,425,000 , or $623 a sq. ft. The third had many high end custom finishes and was designed by the exceptional designer, Jefferey Lamb. Ok, drum roll please…. The new listing , #621 which is 2698 sq. ft… is priced at $2,600,000! Are you kidding me? When I questioned the agents pricing, he mentioned that all three of the comps were going through substantial remodeling. Ok, lets use the combined unit that sold for $2,425,000. Let’s say the new buyer decides he wants to put in an additional $400,000 in remodeling. This would still put this unit at $726 a sq. ft. , or $237 a sq. ft. less than #621 which is at an absurd $963 a ft!
Now you know why I just have to shake my head sometimes in the mornings while looking at new listings!
My purpose of writing about some of these overpriced units is not to beat up on them, but only to help educate buyers so that they don’t overpay for a unit. If you are a buyer in the market for a Portland condo, I know this market inside and out, especially the high end of the market. I would love to help you find your next dream condo so please, give me a call and we can begin to turn your dream of owning a luxury Portland condominium, into a reality…for the right price!
Brad Golik is a condominium specialist with Pearl District Properties. His area of focus is The Pearl District, South Waterfront and Downtown Portland. Brad is a founding member of Condo10 and an expert in internet marketing. You can reach him at 503-896-8856 or at firstname.lastname@example.org , www.LuxuryCondosofPortland.com
As The Cosmopolitan nears completion, the feedback is…?
As the Cosmopolitan nears completion, it reminds me of the night when the developer invited many top agents to get their input on what their condo buyer’s wanted in a new “Luxury” condo development. Here were some of the suggestions from agents that night: Bigger decks, high end finishes, spacious master suites, spacious feeling units, fireplaces, and my input…a small artificial grass “potty” area for pets on the mezzanine level so that owners did not have to go down to street level late at night. Now, lets take a look at how they did in these areas: High end finishes. Well this was a given considering the prices charged. But is everyone happy? The truth is, Pedini cabinets are very nice, but they are a little over contemporary for some. All in all, a decent job here! Bigger decks? Well, apparently after the meeting, the developers ran to the architects…and told them to do the total opposite! The deck space on a majority of these units is terrible! Add the exterior door swing and they become even smaller!
Spacious master suites. A majority of the master suites remind me of Waterfront Pearl. (and this is not a compliment!) Most masters at The Cosmopolitan have a width of 10 feet (and only one place the bed can go) So with a King bed and headboard/footboard you are looking at about 2.6 feet or less of space to walk around your bed! And remember people, as an example, the SW corner units (E4 Plans) are $1,000,000+ condos! Fireplaces…we are good here! Pet area on the Mezzanine level…not happening! And not saying it was a great idea just because it was my idea…but? And finally…and I want to spend some time here, spacious units. This is where I think there will be the biggest amount of disappointment amongst buyers when they move into their new units. (and from people I have spoken with that have seen the units, it seems to be pretty accurate.) The problem in a number of floor plans is the actual usable living space. In a number of units there is an excessive amount of hall space. To use an example, let’s go back to the E4 plan in the SW corner…or the 14 stack (1314,1214,etc..) This unit is a 2 bedroom unit with 1,592 square feet. If you calculate in the amount of hallway space in this unit, it equals about 225 sq. feet or approx. 14% of the total square footage… this is a lot! ( if you take away that amount it makes the actual living areas closer to 1,367 sq. ft.) At 14% it comes in a close second to the worst unit which is the 2 bedroom units on the NE corner (the D6 Plans or the 17 stack…1817,1717 etc.) these have approx. 14.5% of the square footage in hallways. Others in the building are the 15 stack in the SE corner below the 14th floor at 13.5%, the 12 Stack in the NW corner at 12%, and the best in terms of actual usable space is the 15 stack in the SE corner above the 13th floor as the number there represents only 7.3% (and remember, these are approximate numbers, not exact!) For a little perspective here, let’s look at the D6 plan (NE corner below 19th floor) At 1,350 square feet, if you loose about 200 square feet that puts you at 1,150 square feet. In the world a spaciousness in condos, 200 square feet of space is a lot of space.
So are there other buildings in town with hallways taking up livable space? Of course (but none that you ever paid $600 to $1200 a square foot for!) The point I am trying to make here is that if you walk into your new unit at The Cosmopolitan, and it feels a lot smaller than you were thinking it was going to be… depending on which floor plan you bought, this could be part of the reason.
Some of the other feedback that I have heard has to do with customer service, or from what I have heard on a number of occasions, the lack of. Have spoken with several that have not gotten great service in working on the design aspects of their purchase…even one who paid over several million! Hopefully there will be more people with positive comments than negative ones as we move closer to closings!
The Design Commission has approved the newest 14 story tower in The Pearl District. The Dianne, will be 153′ tall and house 102 residential (apartment) units…Yes, ANOTHER apartment building! The positive here, the developer, John Carroll of Carroll Investments, whose previous projects in the neighborhood include The Gregory Condos, The Edge Lofts, The Chown Pella Lofts, The Elizabeth Lofts and the McKenzie Lofts. His buildings offer a great sense of character… unlike what we are seeing with The Cosmopolitan and other Hoyt properties. For more info go to: http://www.nextportland.com/2015/11/04/the-diane-2/
Today, like I do on most Tuesday’s, I went to a few brokers’ open houses to look at some new listings. After viewing a new penthouse on the market, I stopped in at a nearby coffee shop. In the coffee shop were a group of real estate agents who had also gone to the same open house. These agents were not condo agents, I know because I did not recognize any of them! What I heard come out of the mouth was not surprising because they just do not understand the urban market. The penthouse that these agents were talking about was the new listing at the Crane building priced at $1,850,000. I heard on of the agents say that she has not seen any of the other penthouses in the Pearl but she thought this one was “Exceptional and priced very well!” The others with her nodded their heads in agreement. The first thought that came to my had was…REALLY?…Is this what they would say to potential buyers that they would show the unit to?
For what it is worth, here are my thoughts on this penthouse unit priced at $1,850,000. This unit was on the market one and a half years ago priced at $1,950,000 and it did not sell then. While this unit has very nice finishes, here are my reasons why I think it is priced too high. First…and most important, anything priced above $1,500,000 should not be a total fishbowl…and this unit is! Before when it was listed, you had neighbors from Avenue lofts and Irving Street lofts looking down into your 7th floor unit. Now, directly across the street to the west is a brand new office tower that takes away your views of the west hills, takes away a lot of natural daylight and also adds hundreds of office workers that can now look directly into your unit! There MUST be a discount on price for the huge lack of privacy!
Some of the other negatives of this unit are that it has low ceiling height and it is a pretty choppy floor plan which gives you the feel that it is smaller than its 2239 square feet. At 836 a square foot, a buyer should get way more for their money than what is offered here. In one of my recent posts I discussed the great buy my client got on a penthouse purchase at The Elizabeth. This unit closed at $2,200,000 (fully furnished) or $667 a square foot. This unit is far superior than the penthouse at the Crane building in many, many ways. It is a much higher floor, 14 as opposed to 7 so you are above most surrounding buildings and don’t have neighbors looking down on you (something most penthouse buyers NEVER want!) The floor plan at the Elizabeth was much more desirable. In addition, both units had equal deck space for outdoor living but at the Crane penthouse, the outdoor space is almost unusable because of the freeway noise that is only a block away! Even if my client would have gotten the Elizabeth penthouse at a higher price, say $2,500,000, the price per square foot would still have been much lower at $757 a foot. There is a huge difference in why the buyers at The Cosmopolitan are paying above $800 a square foot…that is the privacy that comes with being 25 floors or higher. Your odds of having another building going up next to you and blocking your views are much less, this is why buyers were willing to pay a premium. But, the Crane penthouse being only 7 floors up, there is no way it deserves the premium of pricing that it is at, especially with all of those new office workers looking down at you!. If I am the listing agent of this penthouse, I am hoping that one of those agents at the coffee shop brings a buyer and makes an offer… because, based on their comments, they truly don’t know any better!
So you’ve decided that you are ready to sell your condominium. The next step is deciding what real estate agent you should use to help you sell it. One thing I see happen over and over again are the seller’s using the same agent that helped them buy the unit originally. Is this a good or bad idea? You are thinking that when you bought the unit, the transaction was reasonably smooth so you want to use the same agent. Again, is this a good idea or bad? The answer… it depends!
The factors you should consider when selling your unit are very important because buying is very different than selling. One of the most important factors is whether or not the agent is a condominium specialist or not. Should you hire an agent that is not a condo specialist? My answer is NO! And the reason is simple… these agents just do not know the condo market! Most important, and this is a big one, their day to day marketing does NOT cater to condo buyers. As a condo specialist, my marketing is targeted to condo buyers EVERY SINGLE DAY! This is IMPORTANT! A typical agent can not just flip a switch and fill their pipeline with condo buyers. Typically, they spend one day in Beaverton and the next in Lake Oswego. It is very hard to be an expert in the entire city. Actually, it is impossible! That is why I specialize. So I can be the best that I can be and truly understand my market.
Knowing your market is very important for a listing agent. What I see often from agents that do not spend time with condos, is a lack of understanding of pricing. I will be honest, if you were looking to sell a house in the Alameda area of Portland… I am not your guy! Why? Because I don’t understand the market as well as someone that works that area. Pricing can be substantially different in that area by being 1 to 2 blocks off of certain streets. Same goes with condos. I get calls all of the time from “suburb” agents trying to pick my brain on pricing because they know I have done a lot of condos and know the market. Do I like to get these calls? Absolutely not! It is very frustrating to see a seller put their trust into an agent that does not understand the market. To make it even worse, I go crazy when I see that same agent get the listing and don’t use professional photos to market the condo! It happens EVERYDAY, and it is usually because the seller was comfortable with the agent when they bought the place. So is this the right agent to list and sell your condo? Definitely not.
If you have read my blog for any length of time, you have probably heard me say “Any agent can sell your place…but at what price?” This is so true. I am a firm believer that good marketing makes a difference. It works for NIKE, Coca Cola, and Johnson & Johnson. Why do they continue marketing like they do? Because it works! Buyer’s are willing to pay more for something that is presented in a nicer way. Same can be done in real estate. If you can make a sub par listing look better than it is, you will get more people through the door. If a lazy or cheap agent does not pay for professional photos, the chances are the condo will not look as good as it could and it will lead to less people coming through the doors to look at it and in turn, the seller will get lower offers.
Now let’s say that original agent also does a fair amount of condos. All I need to say here is look at the previous paragraph! Marketing matters!
We have all heard recently how crazy the market is lately. We have heard that it is a Seller’s market and that there are no deals to be had. Wrong!
Yesterday, my client closed on the purchase of a beautiful new Penthouse condo at The Elizabeth. Originally priced at $3,299,000, my buyer closed on this unit at $2,200,000…FULLY FURNISHED, and the furnishings were stunning! After 10 months on the market, this penthouse was most recently priced at $2,995,000. I have been in this business a long time now and I must say, this has to be one of the best purchases I have seen… and this in a “Seller’s Market”!
One reason that I want to bring up this purchase is to talk about the importance of correct pricing when you put your home on the market. It is great to try and push the price a little in this market…but there is a very fine line! There are many penthouse units in the market that right now are becoming stale because they were priced way over the market price. The Penthouse at The Elizabeth was one of them and you may recall my blog posting when that unit originally came on the market. If you did not read about it “Luxury Condos and Portland Penthouses” in November when I wrote about it…here is what I said:
“Topping the list is the largest of the penthouse units at the Cosmopolitan priced at $3,883,000. If I had to guess, this will be the first one to sell of the three penthouses that are in the $3,000,000 price range. The other two, the penthouse at the Casey priced at $3,499,000 and the penthouse at the Elizabeth priced at $3,298,900 are very overpriced in my opinion. ( so is the one at the Cosmopolitan…but it will eventually sell very close to its asking price). The other two are priced in the $1000 a square foot vicinity. This is way too high, in my opinion!”
Now I am not patting myself on the back for being right about the pricing… (because I was VERY wrong saying the Cosmo would have difficulties selling) The reason I point this out is to let seller’s know that when you overprice a unit, it will cost you more in the end because the unit becomes stale and lowball offers will start to come…much like our offer on The Elizabeth penthouse after it had been on the market for 10 months! If you are a buyer that is looking for a luxury condo or penthouse and would like to hear our negotiation strategy for this purchase, give me a call as I would love to assist you in finding a great unit! If you are an owner that is thinking about selling, I would love to sit down with you and share my marketing program with you. I truly believe that I have the best marketing program for condos in the + $500,000 market!
If you are a buyer in the luxury end of the market and possibly looking for a penthouse, please give me a call because I believe with the sale price of $2,200,000 at The Elizabeth, ( the most recent comp) the other units in the market that are priced at $2,000,000 or higher will be getting a pretty big dose of reality and need to adjust pricing or at least be willing to accept a realistic offer!
Brad Golik is a condominium specialist with LuxuryCondosofPortland.com and Pearl District Properties. He is also a founding member of Condo10.