Do you need a Realtor®?

The real estate market is speeding along, homes are flying off the shelves and people sometimes ask "why do I need a real estate agent?"  So, why do you?  Why not just try and sell the home yourself?

 

There are all sorts of boring stats that I can throw at you (some of which I've thrown at you before), but I actually want you to read this article and I fear that stats will just make you skip right over this and on to something more exciting.  The nuts and bolts of it is, do you know HOW to sell your home?  Do you know all the steps that are necessary to keep yourself out of trouble?  A Realtor® does more than just putting up a for sale sign in your yard.  

It's a Realtor's®  job watch out for you and make sure that you cross all your T's and dot all your I's.  I know all the forms and documents that you need to deliver to the buyer's agent.  I know each and every deadline that is important to both send and receive things by.  It's my job to watch your back and make sure that if the buyer doesn't get their repair addendum in on time, that you don't have to pay for any unnecessary repairs.  
 
A Realtor® not only does research on what your home can sell for, by looking up details on past comparable sale prices but also weighs out condition, location and amenities that can sway the flat numbers.  Trying to determine the value of your home by going it alone, or using Zillow, can be a huge mistake.  Huge.  Did you know that Zillow admits that they are off by more than 6.8% on half of their estimates in the Portland area?  That means that if you have a $400,000 home, Zillow's estimate of value could be off by more than $27,000!  That's a pretty big margin of error.  I hope you aren't using Zillow to estimate the price of your home.  I use real world variables to find the value of your home, verses a computer that is just calculating hard numbers and not taking into account any of the variables that can greatly move those numbers around.  As a real estate professional it's my job to help you look at what your needs are and how different pricing strategies can get your needs met.
 
Besides the paperwork, the pricing strategies and the research that a Realtor® does for you, what else do they do?  A Realtor® puts your home in the RMLS, making sure that any and all buyers see your home.  What good does it do to price your home right, if no buyers can find it?  You don't want to rely on Craig's List and having people drive by your home to see the for sale sign in order to know your home's for sale, right?  Of course not.  You're not selling a toaster, a VCR or an old Elliptical that you don't use anymore.  You're selling your home.  This entails a whole different marketing strategy.  And a Realtor® is just the person to make sure you get it right, the first time.
 
I hope that I've helped you brush away any thoughts of giving it a go by your lonesome first, because let me tell you, in real estate, first impressions count and count big.  Putting a house up For Sale By Owner and then realizing a month or two later that you're out of your league and need a Realtor's® help, well shoot, you've just given the public two months of a wrong impression of your house and there's no erasing that!
 
Going back to the beginning, if you're the type that needs stats and lists to recognize the benefits of a Realtor®, well I've got you covered too! Give me a call or drop me an email and I'll get you all squared away! 
       

2016 Market Trends - Oregon is HOT HOT

Ever wonder how Oregon's real estate market compares with the rest of the country?  Sure you do!  We all know that the local real estate market is hot right now, but so is it nationally.  Almost the entire country is expecting good growth within the year for home prices.  Some states are better than others, but Oregon is killing it! 

According to the Realtors Confidence Index, Washington, Oregon and Colorado are expecting 5% to 7% growth in home prices in the next 12 months!  Just look at that map, wow!  Anyone else thinking what I'm thinking about what those three states have in common?  Haha, who knows if that has anything to do with it or not, but it's great to see strength in Oregon!

Realtors Confidence Index, March 2016 Survey of Realtors.

Not only is excellent growth still expected for the year, but Oregon is among the top of the USA for speed of home sales.  Oregon, Washington, Colorado, Kansas, Minnesota, and Alaska are all at 30 days or less for median days on the market.  Interestingly enough, most of the east coast is sitting longer on the market, median time period is 60-90 days.  What does this mean for you?  Be confident in Oregon's real estate market!

Read the full article from the National Association of Realtors here.

Is Oregon in a Real Estate Bubble?

© Judy Ben Joud | Dreamstime Photos

Have you been wondering if we are in a housing "bubble" and will that bubble pop?  As home prices keep rising, it's a question that has been raised often. 

Here's a simplified look:  In the pre-2008 era, home prices were going up and up as more people got into the game and loans were being given out like candy.  Then towards the later part of 2008, when home prices started declining, those that needed to refinance to avoid the higher interest rates of their adjustable-rate mortgages, found they couldn't.  What came next was people starting to default on their loans. 

So are we in that same pre-2008 zone again and is another crash coming?  First let me say that I am not a mystic, not into parrot astrology, nor do I consult the spirit world.  I do not know what the future holds.  That being said, I think there are some differences between now and 2006.  First, lenders aren't giving out loans to anyone with a pulse.  Are there some loans types out there that are a bit risky, yes.  But are the majority of loans being given out sound?  I think they are doing a much better job now of keeping stronger lending practices then they were doing pre-2008.

The second different between then and now is the pre-2008 demand was due to the whole loans-being-given-out-like-candy thing.  Whereas now we have a huge demand because the supply simply isn't there.  Builders aren't keeping up with the pace that buyers are purchasing properties.  They are struggling to find buildable land that is profitable to build on.  Without enough new construction homes, buyers are left to spar over the resale homes.  Sellers just aren't jumping into the market fast enough to keep up with all the demand that's coming from home buyers who are chomping at the bit to buy! 

Another factor that makes some think that the real estate market is going to stay strong is the fact that the job market is super.  Unemployment in Oregon is at all time lows.  Then you've got the rental market.  Rents are skyrocketing, leading many renters to wonder why they should be paying their landlord's mortgage, when they could be paying their own.

As people keep moving to Oregon in droves (because it's amazing and who wouldn't want to live here), as long as interest rates stay at lower levels and until new construction can catch up, I think you'll continue to see this strong sellers market.

Inventory in Washington County is Ridiculously Low

One of the hardest things as a Realtor right now is getting buyers in to see homes before they go pending.  This is because as soon as a home comes up for sale, it's getting massive interest and has buyers putting in offers as quickly as they can.  It is not uncommon for homes to go pending within the first three or four days.  For buyers, this gets real frustrating, real fast.  For sellers, it's the dream!  Sellers are getting their homes sold fast and often times, above list price.

Washington County, as well as the rest of the Portland metro area, is crazy right now.  Take North Plains, there are only eight active listings for homes under $350,000 (the hottest price range).  Of those eight listings, four are resale homes and the other four are new construction.  In all of Hillsboro, there are only 17 detached homes for sale right now under $350,000.  Seventy percent of those homes have been put on the market in the last month, many within the last week.  That's how quick the market is moving. 

What does this tell you?  If you have been thinking about selling your home, now is the time!  There is very little competition and you have the potential to get multiple offers on your home.

Why NOW is the Right Time to Sell

Okay, the holidays are finally behind us.  We were so busy with holiday get-togethers, shopping and end of the year activities that December just flew by!  Now that 2016 is here, let's get our act in gear. 

Why should you think about selling?  Because there is nothing out there in the inventory!  Well, "nothing" is an overreach.  There are some homes out there, but they are flying off the shelves and are pending before you know it!  Right now in Washington and Columbia counties, the average months supply of listings is one month for anything under $500,000!  That is incredible!  It means that if no new homes came on the market we would be out of any homes under $500,000 in a month!  Crazy!

 

What we are seeing in the market is that buyers simply don't have enough homes to choose from.  Often times sellers that price their home at market value are having multiple offers submitted on their home.  A single buyer can put in anywhere from two to five or even more offers on different homes before they finally get one accepted.  Only one offer on a house can be accepted; so buyers are getting rejection after rejection when another buyer offers more. 

This leads to frustration and why is buyer frustration a good thing for sellers?  Because when a buyer keeps missing out on the "perfect" home, their next offer goes even more over asking price, because they don't want to miss out on yet another perfect home. 

To sellers, this means that offers received are going up.  If a buyer learns that there are already five offers on a home, if they want to submit an offer, they know that in order to win they are going to have to go much over asking price.

Simply put, now is the time to sell.  Get your act together for 2016 and you just might be able to capitalize on the crazy market that is the Portland area!

Yurts, School Buses, Treehouses, Oh My!!

One of my favorite things to do as a Realtor is previewing homes.  I love seeing different ways of living, unique floor plans, fantastic views and all the different types of character that homes can have.  The fun side of real estate is trying to picture life in all of these various types of homes, and boy do I have some fun ways of living to show you!

Yurts on Pinterest

Ever thought of living in a teepee (also spelled tipi or tepee)?  Probably, when you were young, but there are actually people who live in them as adults.  More popular than real life teepee living is living in a yurt!  A yurt is a round structure with a simple post and beam construction that is usually fairly easy to set up and take down.  They tend not to impact the environment much, are relatively inexpensive and can be constructed in places where it wouldn't be feasible to build a more typical home.  Pacific Yurts Inc. sells a 706 square foot yurt for $10,785.  That's about $15 per square foot! 

Skoolies on Pinterest

Probably when reading the title of this blog entry you did a double take on the words "school buses" - but sure enough, there are people that remodel school buses and turn them into living quarters!  They are called "Skoolies" and are becoming quite the conversation topic!  Even the Oregonian has written an article on them.  You can find everything on-line from how-to-plans to already completed Skoolies.  The price range to build a Skoolie runs from $10,000 to $30,000 and up.  I'd say these yellow buses certainly qualify as alternative living! 



Photo from Ladyinterior.com

Finally, if a yurt or a school bus doesn't inspire you, then maybe a tree house will.  Popular on TV are shows about tree house living.  If you've ever had a dream as a kid (or an adult) to live in a fancy tree house, I highly recommend checking your local listings to find Tree House Masters.  The cost to build a residence in a tree is about $65,000-$85,000.  Read more about a real life tree house experience.

Everyone should be able to find the home of their dreams.  For some people, that may be a home with a white picket fence in the suburbs, for others it may be a condo in the big city.  Don't be afraid to look for something a little different, maybe some land in the country where you can put up a yurt!  Find your home, wherever your dreams may take you!  

Rental Prices Going Up, Up, Up!

© Peter Gustafson | Dreamstime Stock Photos

Are you currently renting?  If you are, I'm sure you've noticed rental prices increasing.  If you've tried to find new housing to rent, you've likely had trouble finding places currently taking applications, let alone finding a vacancy in a decent place that you would actually like to live.

As of August 2015, average apartment rent within 10 miles of Portland was $1516.  According to Rentjungle.com, the average apartment rent over the last 6 months in Portland has increased by $198 (15%).  If you're like most people and are on a budget, that 15% increase can really cramp your style.  We've seen evictions coming left and right because landlords are realizing that they can get high rents for the same properties.

When we are talking about high rent prices and a shortage of available rentals, the obvious next step is to think about buying instead of renting.  If you're paying $1500 a month in rent, in one year you will have paid $18,000 towards your landlord's mortgage; in 5 years you will have paid $90,000!  If you've read my previous posts, you know that an average home's value doubles in about 18 years.  Instead of paying off your landlord's mortgage, you could be paying off your own. 

Get it out of your mindset that you need a huge amount of money saved up for a down payment.  There are lots of options out there, even options where you don't have to put anything down.  Now is the time to stop paying your landlord's mortgage and to start paying your own, building equity in your own future!

Want to read more about the rental crisis?
NAR Study
Portland Housing Bureau