Portland Homes Sales Grow Stronger and Prices are Up!

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A look at the year-over-year sales data for Portland neighborhoods reveals a story for Portland real estate that is consistent with the national trends. We have passed the bottom and are now in recovery with some neighborhoods showing noticeable strength.

For example, Portland’s eastside neighborhoods show significantly higher prices and more units sold for 2012 – more than any prior year. Average prices in close-in zip codes are back to the highs of 2007 and multiple offers are common on any property in reasonable condition up to $500,000. Here are two homes that we had offers on recently that had buyers competing against each other to acquire.

Northeast Portland Bungalow sold over asking price even before it was listed for sale!


This Southeast Portland Bungalow in Ladd's Addition attracted 14 offers!

In Lake Oswego the area downtown is moving up dramatically. We attribute this to the strong popularity of the First Addition area for the walkable lifestyle so popular all over the Portland area. We sold this property a year ago and homes like it today are going for $100,000 more.

Lake Oswego new construction in-fill in First Addition

This market is not just a single family situation – condos have recovered too! Downtown, Pearl and South Waterfront condo markets are all up – especially the Pearl. Average sales prices in the Pearl are now higher than the peak years of mid-2000’s while the number of condos sold is down about 25% from the peak. This makes sense because we no longer have new construction adding hundreds of condos at a time to the available homes. We recently sold homes in The Civic and The Metropolitan that generated 3 offers each and sold for $16,000 over the asking price. We are offering advice for multiple offer negotiations on a regular basis to all our clients.

For 6 years we have tracked the sales and sales prices of homes in Portland by zip code. Home values are a very local fact and we know you appreciate knowing the market for your home, or the home you want own, so you can make confident plans for your future. So here it is – have a look!

8 Tips for Buyers to Win in a Multiple Offer Situation

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The world of real estate has changed again.  In January of 2009 Portland so many homes for sale it would take 29 months at the rate of sale of that time for them to be absorbed.  Now the tables have turned.  We have enough listings to last only 3-4 months.  We are back in a seller’s market and that means more and more multiple offers on properties.  The Jackson Group had multiple offer conditions on 48% of the homes we sold in 2012 and so far this year that ratio is up to 60%!  It’s a huge reversal in the market trend from a year ago.  As a result, we now help our clients prepare for the multiple offer probability up front so they can win, whether buying or selling!  Are you shopping for a home?  If so, here are some tips for how you can be ready when the competing offer situation happens to you.

1.  Get Prepared

Get good professional help and get ready.  Would you go to a live auction as a lone ranger?  No way.  You’ll need a savvy real estate broker to guide you, step by step, and hold the role of the central process point for all activities.  This person will help you search for and select and value homes, advise on offer terms, recommend a team of inspectors and what kind of inspections are needed, coordinate the inspection and due diligence process, recommend and coordinate docs with a lender, the appraiser and title officer, provide referrals for repair companies, movers, cleaners and a million other resources.  You will want a trustworthy counselor to take you through all this.  Someone you will get to know well and with whom you can talk through the all the choices and decisions that you confront along the way. 

2.  Learn the market 

Sometimes people walk into an open house, fall in love with a house and buy it even when they never planned to move.  It happens, but rarely.

Here’s how it really works.  You plan a move for a reason and get prepared by learning the neighborhoods, home styles, features and communities you like and why.  You look at a lot of homes to “try them on” and doing so helps you find the one with just the right fit and features you want.  You must do your legwork, touring homes and learning about neighborhoods.  Make it a project and have fun doing it!  There’s enough potential stress in moving already; doing your homework helps minimize the anxiety.  When you find the right place, you’ll know it and you’ll trust your judgment.

Get Ready and Win!

3.  Be early and decisive

Odds are it pays to start early, act quickly and persist!  Practice making decisions as you look at homes.  When you tour a group of homes, always pick the best.  Notice why it is the best and learn what matters to you most.  Preview property online and in person and watch to see what they sell for so you learn what sells, how much it sells for and what attracts more offers – is it style, condition, location, etc.?  Assess the pluses and minuses of properties and ask yourself how many times since you started looking you have had an equal or better opportunity.  As you get more informed, go see houses as soon as they come on the market.  The good homes sell quickly!

4.  Use technology

There are great tools today to help you learn about real estate, search for and find properties for sale, communicate with brokers, lenders, inspectors and other professional helpers in the process and share your discoveries and new knowledge with your friends.  Use that smart phone to your advantage for speedy notification of listings, ready online property information, getting questions answered from your team, producing/signing/delivering documents and sharing your progress with friends.

5.   Know your limits and your priorities

The process of learning about homes, neighborhoods, schools and other issues important to you is all done in the context of your budget, your timing and your list of “must have” vs “preferred but not essential” features.  As you study homes and the market you’ll see what sells and you’ll be honing in on what matters most to you.  Discuss this with your broker, especially if you are having trouble coming to decisions or finding good opportunities.  Choosing a home is, in the end, choosing your compromises.  To be prepared to make confident decisions in a competitive situation you must have tested your priorities in advance.

6.  Become an expert at assessing value

Learn to “value” a home, not price it.  Cheap homes are cheap for a reason, one that you want to avoid, unless they have been purposely under-priced to create the auction.  You wont’ recognize this situation unless you learn to discern value.  What makes a good house a good one?

When you see a good home, decide what price you would regret not having paid to own it if you had to compete.  Ask yourself that question as you tour homes and learn values.  Watch how fast they sell and ask yourself, would you have jumped on that one, or let it go.  Why?  You will begin to notice what distinguishes the good homes from the ordinary.  For more on this check out our post on “What Makes a First Class Home?”

7.  Write a winning offer

Begin with a personal note, preferably hand-written, to introduce yourself.  Sellers like to know who they are working with and selling to.  In our fast-paced, high-tech market today, with social media, DocuSign, email delivery and text messages to communicate, the process can seem impersonal.  So, build in a personal touch that can set you apart from other offers.  Use this letter to tell the seller why you love the home, how you have prepared for just this moment and how you are committed to working with them for a smooth transaction.  Your goal here is to build trust and develop a personal connection.  This may be just what sets your offer apart and it will surely be worthwhile for maintaining good will and cooperation as you go through the process.

You’ve been preparing for this moment, so write a clean offer showing you are confident and ready to buy.  Have your inspection team lined up including having a clear plan for what issues you want to check out.  Have your loan pre-approved, and that means not just a conditional letter but a full credit approval signed off by the underwriter.  Be prepared to move quickly and decisively with conditions to give the seller security, then be flexible with the dates for moving and possession to offer the seller greater convenience.  Discuss the merits and pitfalls of  “Escalation Clauses” with your broker in advance so you know where you stand on this strategy.

8.  Get good professional help

Did I say this already?  Well, here it is again!  Find a good broker and plan together what the home shopping process will look like for you.  Look for a broker with proven accomplishments with other clients.  How many homes do they sell per year?  What neighborhoods and property types do the specialize in or know best?  What resources do they have for special situations?  What communication skills do they demonstrate?

With your broker, put together a team of professionals who will fill different roles in the process.  This includes, at a minimum, an experienced lender and various inspectors who your broker knows to be knowledgeable, competent and reliable. It means meeting a few brokers and looking for the right “fit”, seeking recommendations from friends and family and looking at reviews or testimonials online.

When the multiple offer situation occurs you want a broker who is seasoned in the market and has been through the process many times.  Someone who can advise you on the competitive situation and recommend strategies for success.  Someone who can speak your story and present your offer to your advantage.  And someone who can establish and build rapport with the seller and the seller’s broker.  A strong identity of trustworthiness is key!

When you find the home that you love, the one that has your name on it, we hope it is there just for you and no one else.  But to find and purchase a first class property in today’s market of low inventory just may mean you must compete to get it.  Use these tips to give you guidance, confidence and peace-of-mind in a competitive situation.

How to choose the Right Realtor for You!

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Are you ready to buy or sell a home?  Being purposeful about choosing a broker is an important first step.  Here are a few ideas for how to think about that selection and a process for finding the person with the right skills and fit for you.

First, real estate agents, or brokers, have legal requirements.  They must be licensed and in Oregon all licensees are either ‘principal brokers’ or ‘brokers’.  Principal brokers are those with a higher level of experience and education.  It is the name the State of Oregon gives to brokers who are qualified to manage other brokers and operate their own brokerage office.  “Brokers’ are everybody else and they are qualified to sell homes as an individual under the supervision of a principal broker.  “Realtor” is a trademark that refers to someone who is a member local Board of Realtors and the National Association of Realtors.  “Agent” is an expression often used around the country to describe brokers.

Jackson Group Broker, Sarah Norton, preparing an offer with an investor client.

In Oregon a broker is a fiduciary with specific legal obligations to clients.  Oregon requires all brokers to provide buyers and sellers with a copy of Oregon’s brochure about “Agency” which specifies the obligations of a broker.

Now, having said all that, know that there are more than 5000 brokers and principal brokers in the Portland Metropolitan area, and finding the right one for you is a process to consider carefully.  The possibility of ending up with a less than stellar broker is very real and the consequences could be costly.  Our approach is to consider three categories of skill and professionalism in addition to personal characteristics that make someone the right fit.  These categories are a good place to start in selecting a broker:  Knowledge, Accomplishments and Trustworthiness.

Knowledge

It may seem obvious but I’ll say it anyway, you want a smart real estate broker who has deep knowledge of the process and the marketplace, and that means particularly in your area of interest.  Look for someone with knowledge of property and neighborhoods in your price range and preferred location.  If you are looking for a specific property type – new homes vs old ones, urban condominiums to rural farms – there may be a specific knowledge your broker needs.  Or, look for someone with good fundamental knowledge of the real estate business and local market, a network of resources for special services and the personal style and character that you appreciate.  Then, work with that broker in partnership to get up to speed on your specific property needs.

Another aspect of knowledge is transaction experience.  We have a saying in the business:  “you learn something new with every sale.”  And it’s true!  So, find someone who has done a high volume of transactions over time, or who is part of a team with a pool of experience to check in with when the transaction gets tricky.

Accomplishments

Accomplishments are the “proof” of someone’s ability and a record of their level of care in the practice of real estate.  Has your broker sold a long list of homes, representing buyers and sellers?  Do they have a special designation or identity based on their record of sales.  Is their practice based on referrals or advertising?  One indicates a loyal and satisfied following, the other a budget for attracting strangers.  Ask your broker where his/her business comes from; how many people are repeat customers or referred clients, how many are buyers verses sellers.  That leads to trust.

Trustworthiness

Ask your broker for the names of some of those past clients and call them.  Ask a couple of simple questions:  What did “Broker” do that made a difference with your home purchase?  How was “Broker” best suited to help you?  Did “Broker” communicate with you and explain the process and the issues effectively?  Would you hire this broker again, or recommend him/her to others without doubts?  All these questions when answered by another user will reveal the competence and reliability of your candidate.

Finally, is the person well spoken, friendly and easy at establishing rapport?  This matters for the sake of your ease and enjoyment working together, and also for the important quality that your broker is an attractive person and will foster good will and cooperation from others during your process.  Is he/she energetic enough to match your pace and organized with tools, business practices and resources to help get the job done?  You want to have a good vibe with your broker and at the same time a professional relationship – one in which you can both set criteria, have clear expectations and talk the issues out as adults. Oh, and have fun while doing it!

Here’s a Checklist:

Do:

  • Seek referrals from trusted sources, then vet the candidates with an interview, check online reviews and ask for personal recommendations.
  • Determine minimum requirements for an interview:  licensed with no black marks, full-time practicing broker, relevant skill to your area of search and other concerns specific to you.
  • Interview candidates to get to know them and get answers to your questions about Knowledge, Accomplishments and Trust.
  • Know your needs and expectations for how you will work together, how you will mesh schedules, by what method and how often you want to communicate.  Clear these with your candidates.
  • Ask candidates about their resources for the other professionals needed and subjects of concern that may come up.
  • Ask about their process, tools, support, team and technologies.  Also, how many homes they sell in a year.  Ask to speak with a few recent clients.

Don’t:

  • Hire family or friends without making your own assessment after doing the “Do’s.
  • Hire the broker you met at a listing or open house unless they pass the “Do’s” list.

The Jackson Group has 3 highly-qualified brokers – Becky, Matt and Sarah.  We’d love to have that interview with you when you’re ready to get started.  Call us at 503-465-5100 or email us at team@thejacksongroup.net.  

 

Color trends for interiors in 2013!

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Interior Design expert and friend of mine, Kimberlee Jaynes, is up to date on all the latest design trends, including the hot color schemes.  When we had ‘coffee’ to talk shop recently and she brought up the topic of color trends for 2013.  I asked if I could share this with all of you.

Here is her story!  Check it out!

 

 

 

In Honor of Zig Ziglar

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Every person in the business of sales had a relationship with Zig Ziglar.  Many of us in real estate have listened to his talks and programs for years.  Here is our favorite quote from an icon of business who was appreciated and will be missed:

“You will get all you want in life if you help enough other people get what they want!” 

Zig Ziglar, 1926-2012

Zig Ziglar 1926-2012

Design it Yourself! A Great e-Book for Your Gift List!

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The holidays are fast approaching and I have a gift suggestion for the person on your list who is either buying or selling a home, or thinking about re-modelling.

My friend Kimberlee Jaynes is an interior designer and she has just published a gorgeous and informative e-book titled Design It Yourself!  A Step-by-Step Workbook for Interior Design.  When Kimberlee showed it to me I was blown away!  It is a luscious visual experience and packed with useful insights into how to solve problems and make meaningful improvements to interiors.  I found it a wonderful and easy read (on my iPad it is a beautiful experience) and it was interesting and relevant to me even though I’m not in a remodel mode.  I recommend it highly!

Design it Yourself! A Step-by-Step Workbook for Interior Desgin

Design it Yourself! by Kimberlee Jaynes

Here’s the review I posted on Amazon:

5.0 out of 5 stars Read this to learn and appreciate the creative process!,October 27, 2012

This book is a remarkable ‘how to’ for homeowners and designers seeking a special effect from their interior design projects. And, it is so much more.

The book offers a systematic checklist on design with illustrated tips and examples. The best part is the stunning photography of both before and after situations supported by a rich narrative about how and why it all works. You will learn from this book, and you can also read it to simply enjoy the lush visual experience interpreted with a descriptive story. I’d love to have this as a “coffee-table” book to put on the conference table at work and let the design lessons unfold on all kinds of problems.

Portland Area Real Estate Continues to Improve!

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New sales statistics are out from the Regional Multiple Listing Service (RMLS) indicating a continuing improvement in home sales for September and for the year overall.  September homes sales were 19.4% higher than September of 2011 and the best September since 2006.  New pending sales were up 10.6% over September 2011.

The year-to-date numbers are also trending up with 19,015 accepted offers so far this year compared to 16,275 at this time last year.  Prices continue to rise, albeit slowly with a year-to-date increase in the average home price of of 2.9% and an increase in the median price of 3.8%.

The final bit of good news is that the time it takes to sell a home now has dropped from 145 days to 115 day, a 20.7% decline.  All these statistics confirm a continuation in the slow, but steady, improvement in the market for homes.  This is a positive sign for the economy and for the community in general.Portland Metro Residential Hightlights - September 2012

Switch Your View and Get a New Look at Portland!

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Summer lingered with us into September and early October, and because it has been so wonderfully warm and calm my friend Cindy and I decided to treat ourselves to a cruise on the Willamette with the Willamette Jet-Boat Tour Company.  What a blast!

View of South Waterfront from The Willamette River

Cindy lives in the Meriwether.  The Jackson Group helped Cindy and her husband, Jeff, downsize to their condo late last year, and they love it!  They have been watching these tour boats pass by in front of their condo all summer.  They noticed a few regular stopping places  - and wave-riding spinning places – in front of Ross Island and under the Ross Island Bridge.  Cindy and I and another friend decided to turn the tables on her regular view of the river from the Meriwether condos to go see the view of the condos from the river!  Off we went on a hot and still afternoon.

We departed from the submarine landing at OMSI with a group of about 30 people and a guide (with a wry sense of humor) for a trip that would take us down river almost to Swan Island, then back up the river to the Oregon City Falls before returning to the dock at OMSI.  It is about a 2-hour tour.  “Captain Doug” kept us entertained with interesting insights and statistics about all the bridges and some of the landmarks along the way -  colorful and interesting stories offered with a heavy dose of good humor and a sprinkling of bad jokes.  More importantly, he gave us a wonderfully fast and fun ride on the river from Portland to the falls and back again.

A Willamette River 'resident' napping on a neighbor's dock!

We had a wonderful view of the river-front property of Lake Oswego on the western shore, Milwaukie’s big home sites on the east shore and downtown commercial waterfront icons of Portland from both sides.  While we didn’t take a step inside any of these properties, it was a first rate tour of fine homes just the same.  If you’re looking for another way to enjoy our great city and experience the river up front, don’t miss this excursion!  Willamette Jet-Boat Tours at 503) 231-1532.

September Real Estate Data for Portland

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New statistics about Portland area home sales were published by the Regional Multiple Listing Service and the news is inspiring.  All aspects of real estate activity are positive now compared to both last year and last month.

Sales are at the highest level for a single month since 2007, the peak of the market.  Prices are stabilizing and improving nicely in some areas.  The average price of a home in the area is now $271,100 and the median price is $230,000.  The time required to sell a home, from list to pending date, is down 20.3% from last year to 117 days, and falling.

RMLS Market Action Report for September 2012

One statistic that I watch very closely is the “Inventory” of homes for sale.  This statistic calculates the time it would take, in months, to sell a home based on current supply and demand.  This rate of sale is how long it would take to sell your home, from listing to pending date, if it were on the market today.

The number for the Portland area at the end of September is 3.9 months, as low as I can ever remember since I’ve been watching this.  Economists consider 6 months to be a balanced market between buyers and sellers.  If this low inventory number continues, it can only mean that we can expect to see more and more upward pressure on prices and continuing multiple offer situations.  We are entering a new world from the post-bubble market we have had for five years.

 

New Homes for Sale and on Tour Today in Portland

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Autumn in PortlandNew vigor from the clear, crisp air . . . new resolutions for the balance of the year . . . new fall outfits . . . and, new listings – these are a Realtor’s signs of fall.  We return from vacations, get the household in order and the kids in school, then voila!, we are back at work, listing homes for the push into the end of the year and checking out all other other listings available for purchase.

Today was the opening tour day of the fall season for real estate.  The annual cycle of homes sales is a double hump pattern with a big bump in spring and the second, smaller version from post-Labor Day to Thanksgiving.  From then to the end of the year is a fade in the overall statistics, though our Jackson Group business tends to show uncommon activity in December.  I’ll save that for another post.

At the Jackson Group we believe firmly in the benefit of hosted brokers’ tours for our sellers.  It is a best practice for showing our listings and representing our sellers well, and it is an opportunity to network with other brokers . . . sharing news of the summer and stories of recent experiences selling homes.  We build our collegial relationships and get direct feedback on the properties we have for sale.  We have fun and get good work done at the same time.

Brokers in caravan is the old way.  It was great fun, good training for new agents and, frankly, the only way to see and know the homes for sale as recently as 10 years ago.  Today, with our high quality professional photography and instant distribution through online channels, the brokers’ tour is a shadow of its former self.  Just the way home buyers now preview homes online, brokers tour when prompted by an online message or client request.

About 20 agents came to the Brokers’ Open today at 4300 SW Fraser, a super solid family or empty nesters’ home in a central location of Raleigh Hills priced at $449,000.  Check out the new ‘ManCave’ nearby.  Some time ago this property would get 50+ visiting

Man Cave at 4300 SW Fraser, Portland OR 97225

agents.  It is a neighborhood, price range and home style that is popular and that many brokers would want to know so they could call their Raleigh Hills clients and have the scoop.  But that was then, when brokers really worked to find the good listings to show.  Today, home buyers do their own ‘home’ work – viewing properties online and choosing what they want to see.  From that they call their agent, or the listing agent, and request a showing.  This is efficient (for brokers).

While hosting this open house, Jackson Group Buyer Specialist, Sarah Norton, was on tour to see the best and most appropriate listings for our clients herself.  In 2 hours she saw homes between $200,000 and $2,000,000 and could describe the best and worst aspects of any that mattered.  Sarah shows homes all week long to different buyers with different criteria.  That means she has already seen more inventory than most brokers see in a month.  Yet, she is still out there to see the new listings because going into a property to see the floor plan, experience the space and know the location issues is a much higher level of knowledge about homes that you get by screening photographs.  Any buyer who picks the list and then tours it in person with their broker discovers they were way off base with what might work.  Knowing the listing from the aspect of being on the street and in the house is a whole different level than online previewing.

Don’t get me wrong.  We believe whole-heartedly in online.  We set up and pay for quality professional photography.  We work with our sellers to spend the time needed to get the property ready to show and photographed at its best so the online view is excellent and the real, personal visit happens.  We do this because we know the buyer will only come if they choose it from the pictures, and, they will only buy if they see it in person.  Both showings must shine.

We think this gives us and both our buyer and seller clients a competitive advantage – we prepare our listings, present them well, and we look for homes for our buyers the same way – online in the moment and in person for greater depth.  Both matter on both sides of a sale.  What does your broker do?