As an active Real Estate Broker licensed in Portland Oregon I get all kinds of questions about Real Estate in Portland and in general. One question that I have been getting quite a bit lately is ” How’s the Portland Market doing now?, I hear it’s kind of slow! “.
I just love this one. I am always kind when I answer matter of factly that ” you know of course all Real Estate is Local”. I then go on to ask the key question. Are you currently trying to sell your home? If not, are you considering it in the near future.
No matter what the response, Yes, NO or Not Sure I answer back ” The kind of market you encounter will be dependent upon rather you are a Proactive, Reactive or Passive Seller.” Have you given any consideration to that?
The statment is a pretty big mouth full and not easy to swallow in one quick setting. Which gives me the perfect opportunity to explain just what I mean.
A Passive Seller is often a person who has come into the market with a attitude ” I’ll Sell if I can get my price!” From a Real Estate Broker’s stand point this type of Seller is one of the most difficult people to help. Their motivation is often low and more often than not they are unhappy with the results that they are recieving. Heaven help you when the Listing contract comes to the end as the Seller will almost always unload on you. Truth of the matter they are mostly right. If the agent had been stronger and or more informative or even to step away they may have been able to secure a listing with a Proactive Seller the most desireable kind.
A Reactive Seller is often the kind of person who reacts to stimulii but not before. Let me give you an example : Bob puts his home on the market a little bit to high of a price. His agent is thinking that as time goes on he will work on the Seller to get that price down. Meanwhile Sam a neighbor of Bob’s just down the steet decides to put his home on the market thinking that ” If Bob can get that price, then I can certainly get that kind of price given that I have so much more to offer.”
Sam’s house comes on the market and Bob wanders through a few weeks later during an open house. Bob is astonished at what he sees. Sams house is fabulous. Sam must be delirious, why would he put his house on the market at such a low price when it is much better than mine. Bob calls his agent. Bob’s agent reminds Bob of the conversation at the time they listed. Rember Bob how I told you that price was to high? Bob says he will think it over. Instead of being Proactive and making the imediate desicion to adjust his price, Bob waits for the following weekend to try and catch Sam at home. No luck Sam and familly have gone away for the weekend. Finally by the following weekend Bob is able to talk to Sam. He quickly asks Sam about the choice of his price and finally gets around to asking Sam if he would consider raising it up a little. Sam’s response floors Bob, ” can’t do it old buddy, I’ve already sold her to that couple that came through the same day you were over.” Are you kidding Bob exclaims! Don’t you know that you sold it to cheap? Not according to all of the comps I have seen, fact is I was going to come down and talk to you Bob, don’t you know that your price is to high? Bob the Reactive Seller calls his agent and requests a price reduction.
Now the Gold Standard when it comes to Real Estate Sellers is the Proactive Seller. This is the type of Seller I am always looking for. They are curious and realistic. They understand that selling your home is marketing. Truth is that if there are 3 bottles of Milk at the store and two of them are $3.05 that most Buyer’s will pick up the one bottle for $2.75 every time. A proactive Seller will read over the Comps with their agent. Together they will look through the home and take suggestions and critisims to heart. Once the house is ready to put on the market, I will set my Seller’s up on mys Portland Oregon Real Estate Neighborhood monitoring site where they can see all the homes on the market, Save them to their favorites list where they can keep track of their neighbors status for price reductions and or offers. At the same time my Seller is ready to adjust so am I. You see the Proactive Seller fully understands that hiring an Agent is two fold, Looking for the expierience and knowledge that will enable them to represent them and for an agent that is on the same page. Yes there are Proactive, Reactive and Passive agents as well. Who do you want working for you!
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I am a little bit of an “Old School” Agent. I still believe in the personal touch. I rarely show a home for sale that I have not personally viewed first.
To do this means that I am out daily viewing homes. I not only preview homes that meet my clients needs I also am looking for homes that are ” Hot Buys ” and ” Fixer Uppers “.
While previewing a series of listings in North Portland for a few of my clients who are constantly looking for that next great College Rental property I came across this gem.
No listings found
At first blush I was prepared to discount it as just an OK house given that it was listed as a 2 bedroom even though at this price it still would be an Ok deal given the high rental rates of properties close to the University of Portland on the Bluff.
But I was intrigued and had to take a look. This home is a split entry and split entries tend to have bedrooms in the basement. As a College rental it also makes sense as the split entries often have a family room as well.
Sure as can be it did have that family room in the basement. It also has an attached room with a closet but no door. Ah that’s the reason for no door, it does not have a Window for that all important Ingress Egress for fire safety.
Wow oh wow, after a quick check I see that this place has been reduced a couple of three times at $20k each. Not only that it looks as if they have just upgraded the appliances in the kitchen. They obviously didn’t realize that for a very modest amount they could easily add the window and the privacy door for mere fractions of pennies on the dollar over what they have discounted from. A pretty simple upgrade may make this into a nice 3 bedroom and today’s HOT BUY!
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Lately I have seen something you never seen before. That’s right a Seller who accepts not one not even two but several offers on the same piece of property. This just does not seem possible.
After all they only have one home to sell yet Seller’s are accepting offer after offer. Not only that but their Real Estate agents and Brokers in Portland Oregon are encouraging them to do so. How can this be? Someone is bound to be upset.
Yet the Buyer’s do not seem to mind. They go about there way sometimes spending money on several inspections with a hope that they will not have spent the money for naught.
What kind of State is Oregon you wonder? Why its the State of Short Sales of course. In Oregon the Seller is allowed with disclosure to accept multiple offers on the same piece of property. The two page short sale addendum which accompanies the offer sheet spells it all out for all parties.
Short sales as we all know comes about when there is not enough equity in the property for the Seller to pay off the lean against it. Hence he must sell it Short of the full amount owing. The acceptance of this offer by the Seller then must be sent to the Lender for their acceptance.
No seller likes to sell short and walk out of closing without some sort of profit nor do Lenders. For lenders they are often asked to take significant losses to accommodate the sale. Hence they are not always in that big of a hurry to do so. In fact in some cases if an offer is submitted to quickly the immediate thing that pops into both Seller and Lenders minds is ” I wonder if we could get more? “
In regards to Oregon Law and Short Sales the Seller is allowed to take as many offers on one piece of property as they can get. For Agents representing Seller’s of Short Sales it is our responsibility to treat all parties fairly and honestly and to notify all interested parties in the Short Sale it’s true status.
This means that if you get an offer or even if you get multiple offers, you are to update the status as offers accepted and submitted to the Lender. The Property is to remain as an Active Listingthroughout the process until the Lender or whomever is being asked to sale short be it First Second or even a Third lean or more has accepted the offer.
” A Real Estate Transaction with Herb is one YOU will Profit from
Although multiple offers can make it confusing, when it comes to short sales the reality is that it is the agents job to present all offers to the Seller for his or her consideration and then forward on any that are accepted to the third party. Untill the Lender has signed off or on as the case may be you do not have a contract as long as it is accompanied by the short sales addendum that clearly states the Buyers tenative position based on a third party decision.
In short the offer is not binding untill all parties to the agreement have accepted, this includes the lender or lenders.
The difference with short sales is that the third party often will not execute acceptance until the very last moment. There is no Back up offer position to be offered because there has been no acceptance so all offers remain in limbo until then. In fact there could be a valid argument that by accepting an offer and placing others in back-up prior to Lenders aproval that you have not properly represented you client. Why? The short sale is just that, moneys that your client is short and may be responsible for especially if the back ups are for more money. Period, done and done.
Been looking for that perfect home in Portland Oregon but don’t quite have enough money to swing it? Perhaps you do have a bit of money for the down but there are just too many repairs to make it work?
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While your there be sure to check out all of the links. This truly is one stop shopping. Got a link idea you don’t see covered on my site? Drop me a line and tell me all about it. email@example.com