The year end and December statistics have just been released by our multiple listing service.  Boy are these numbers telling.

First a look at the December numbers:

 At our current rate of sales, it will take 2.3 months to sell all the properties on the market.  This is a decrease from November, and close to the lowest our inventory has been since we've been keeping track.  Frustrated buyers, you are right, there isn't much out there.

Pending sales were down a bit from November, by 20.3%  but were up 12.3% from December 2013. Closed sales also rose 25.6%  from November 2013 , and 15.6% from December 2014.

Our market time got a tad longer, 76 days in December 2014 vs. 69 days in November 2014.  December 2013 had a market time of 87 days.   We expect a slowing in the market between Thanksgiving and New Year's, so this is no surprise.

The median year to date sales price for the year 2014 ended at $285,500 up 7.7% from the median year to date sales price in 2013 of  $265,000.

Portland's real estate market typically picks up in January, and not the spring as many people believe.  This is holding true for this year.  Buyers are out in force. Many sellers intend to put their properties on the market, but are behind in the prep work necessary to put a home on the market. 

Yes, lots of houses are selling right now.  But yes, you still need to put a house in decent order, and I still need to get professional photos before we start marketing.  So sellers, get that to-do list done, there are buyers out there waiting!

Call me if you want to jump in.  503-312-8038

See the full report here.

Buyers: why I care about your loan pre-approval Part 1

One of the first steps in a shopping for a home is for buyers to get pre-approved for a loan.  This pre-approval starts the lending process, lets the buyer know how much they can afford and helps buyers decide about the price range in which they want to shop. Make note, many buyers are pre-approved for more than they are comfortable spending.  Often buyers, once they get a pre-approval, figure they'll actually shop for a loan and commit to a lender once they find a house, using the first pre-approval to submit with an offer.

Ack!  Equipped with that pre-approval letter, we, as buyers' agents, write an offer to purchase based on that pre-approval.   In the offer, it states the buyer will get financing, and if there are changes ; new lender or switching to a different program, the seller must be told promptly. In certain cases, the seller must agree to the changes (to a new loan program).  In any case, failure to tell the seller of the change can be seen as a breach of the contract, which could in turn lose the buyer the house and their earnest money.  It really does matter and I really do care.

New, stringent loan processes make a 30 day close difficult.  Part of the purpose of the pre-approval is,  the loan process is actually started BEFORE the offer is accepted.  Credit reports are run, employment  verified, assets and liabilities verified.

Changing lenders after the offer is accepted makes for a longer closing, makes the buyer look flakey for not having completed their research before making an offer, and can look as though the buyers agent is not doing a good job of managing the transaction.

So, dear buyers, the time to shop around is BEFORE you make an offer. If I seem less than thrilled when you switch lenders part way through a transaction without asking me, its because you have just jeopardized your ability to buy the house.

I care where you get your loan because the success of your purchase, which is seen as my responsibility, rests largely on your lender.  Many real estate companies, RE/MAX equity group included, have in house lenders.  This is not some nefarious scheme to somehow trick you, and my commission on your purchase is the same no matter what lender you use.  But, I know how our in house lender works.  I know when a pre-approval letter is written that the file has actually been through underwriting.  That pre-approval letter you get after talking on the phone to a lender, and submitting zero paperwork,  has definitely not been through underwriting and isn't worth the email it is sent in.  I know the rhythm of our in house lender's loan processing and best of all, if push comes to shove, we may have the ability to get certain conditions waived, or fulfilled in a more expedient way.

There are several lenders in town, either in house lenders in other companies, or merely reputable lenders who do a high quality of business, with whom I am happy to work, know they'll do a good job and have confidence in the process.  If it feels like I'm steering you to certain lenders, its because I am.  No, all lenders are not the same.  The  benefits I get when you work with a lender I suggest are same benefits you enjoy; a smooth escrow period and  the successful purchase of your new home.

I maintain a list of several lenders in the area with whom I have had successful transactions.  I'm more than glad to provide this list to you before you start shopping.  Just ask :)

In the next post, I'll tell a few stories of lenders and transactions gone bad.

October 2014 Portland Market Statistics

Statistics are out, showing Portland area real estate activity for October.  We're still in that active, but kind of flat market in which we have been.  Yes, the increase in closed sales reflects the predicted increase in activity in September, (once kids went back to school and folks got back to conducting real estate business).

 At our current rate of sales, it will take 2.8 months to sell all the properties on the market.  This is a slight decrease from September (3.1 months), and a drop from October 2013's  3.4 months.  So yes, the market is still moving quickly, with not many properties to sell.   Make note, 2.8 months of inventory has been, here and there our low.  We haven't seen less in recent memory.

Pending sales were down a bit from September, by 2.8%  but were up 16.7% from October 2013.  Closed sales also rose 13.6%  from October 2013, and 4.6% from September  2014.

Oddly, our market time got a tad longer, 65 days in October 2014 vs. 60 days in September 2014.  October 2013 had a market time of 76 days. .

The median year to date sales price is $285,000 up 7.5% from the median year to date sales price in October  2013 of  $265,000.

Typically, we see the market slow around Thanksgiving, until just after the first of the year.  I'm not sure how much slowing we'll see this year as the market still feels pretty brisk.  Our office, the NE Broadway branch of RE/MAX equity group, is on track to pass November 2013 in the dollar volume of sales, and in the number of transactions.

I have buyer clients in the market right now, and a listing (close in SE) hitting the market next week.  Fall is the time serious buyers and sellers get it done.

Call me if you want to jump in.  503-312-8038

Read the full Portland area report here.

Lipstick on a pig, or attention to detail?

In this continued market of high demand properties and multiple offers,  little things can play a large roll in the success or failure of a transaction.

Here are a few "little things":

When an agent arranges to show my listing, they are good communicators about when they'll be there.  They show up on time and leave the property as they found it; lights on or off, doors locked.  Extra points if something is out of place and they call to let me know.

When an agent says they are writing an offer, they do and send it to me when they say they will. The offer is complete., They have merged the various pdf's into one pdf. The offer is accompanied by a pre-approval letter, a letter from the buyers to the seller and a note from the agent about the buyer and their process.  If I have indicated a specific escrow company in the listing , that same company is named in the offer.  If we're looking at seven offers, and we often are, and they are similar, and they often are, the little things in the offer can make all the difference in its getting accepted. 

And once accepted; the promissory note for earnest money is redeemed within the required timeline, and I am provided a receipt or proof. I don't have to ask or go hunting for it.  Inspections are scheduled promptly and I am informed in a timely manner.  So when we get the repair addendum in which the buyer is making certain repair requests of the seller, we still feel good about the buyer and their agent.  If the inspection process has been a shitstorm of bad communication (and it can be), the seller isn't super pre-disposed to satisfying buyer requests.

And sellers; agents and home inspectors very quickly form an opinion if your house has been well cared for, or neglected.   We notice all sorts of things, but here are a few that jump out at me.  There is a bathroom fan that works and is used.  There is a service record of the furnace on, or by the furnace.  All the doors are opened with one key, and they do open. The swing of the screen/storm door is on the same side as the actual door, there are no burnt out light bulbs leaving us wondering if its a bad light bulb or a bad receptacle, and hand rails are solid.

Oh yes, staging, de-cluttering and judicious painting work wonders.  But those cosmetics can be lipstick on a poorly cared for pig.  If you're thinking of selling and want some tips on putting your house in shape.  I'll be glad to help.  503-312-8038

So, you're a landlord...

Some of us have intentionally set out to become landlords and consider rental property to be a hobby AND part of a retirement plan.  Others have ended up landlords through a variety of life changes and real estate market fluctuations.  What we share is the desire to keep our real estate investments in good shape, providing a return on our investment, and to avoid untoward catastrophes.

I suggest owners of rental property put some thought into why you have the property, what your goals are for the investment and think about if you have any values or personal priorities you want embodied in your management style.  For example:  One might say, I own a rental house because I couldn't sell it in the downturn, I'm doing okay now, so I want to keep the property with the goal of paying it off and having the rental income.  I'm an organic gardener and have had the property certified as a neighborhood wildlife habitat and want it kept that way.  Or I'm really just flipping it, so I want to maximize the value today and sell it now. and so on.  My husband and I believe in the value of companion animals and are active in animal rescue. We allow, or even encourage animals in our properties.

And then, its super important to be aware of the various local, state and federal laws effecting your ownership.   This includes fair housing laws, habitability standards and the like.  Oh, and don't forget the IRS.  I talked to a gal recently who had been renting her house out for a year (she's out of state for a few years for work).  She hadn't realized she was supposed to be reporting that rent as income.  There are also some good tax benefits of owning investment property, so the IRS isn't all bad.

A good place to start on all this is at the City of Portland's Landlord training class.  This class is a joint project between The Bureau of Development Services, Portland Police Bureau and the Portland Fire and Rescue.  Its a full day class, free unless you choose to purchase the $20 manual.  Per the city's brochure on the class, it aims to accomplish two important goals:

1) That effective property management and maintenance can have a positive impact on the health and safety of communities.

2) That there are accessible, legitimate techniques that can be used to stop the spread of illegal activity and property damage on rental property.

Upcoming classes are Monday November 3, Saturday November 15, Monday November 17 and Saturday, November 22.  Locations vary, but are all in central locations.  Classes run from 8:30 - 5:00 with an hour for lunch (on your own).  There is no free lunch ;)  You can register here.  This class won't give you everything, but sure is a good place to start.

There is also a private class coming up on December 18th, being put on by Sterling Education Services.  Also, a one day class, it focuses more on key elements of Landlord-Tenant law. the cost is $339, with some additional fees for optional materials.  visit http://store.sterlingeducation.com/pdf/1817.pdf  for more information, and to register.

 Another good tip; it is important to use good forms that are in line with the current Oregon statutes of landlord tenant law.  I see way too many self written leases.  The Metro Multi-Family Housing Council suggests using forms from Tenant Technologies.  There are on line versions, or real paper ones you can purchase.   If you do nothing else, using the right forms is a must. 

And one more tip.  We've been using SmartMove for our tenant screening. It is an online service with no cumbersome process for establishing an account.  The portal allows you to send an invitation to a prospective tenant, from which the tenant enters their identifying information ( social security number, date of birth etc).  Since you, the landlord, never see the personal information of the tenant, you are freed of the secure record keeping requirements necessary to safeguard such information.  The system can provide credit, criminal background and eviction reports.  And, the prospective tenant can easily pay they screening fee on line. 

If you've been thinking of buying rental property, or have a rental you'd like to sell, give me a call.  503-312-8038  I'd be glad to talk with you.  I am not a property manager and can't advise on property management issues.  I can suggest a few property managers if you'd like to go  that route.

That seasonal slowing, kinda

Statistics are out, showing Portland area real estate activity for September.

 At our current rate of sales, it will take 3.1 months to sell all the properties on the market.  This is a slight increase form August (3 months), but a drop from last September's 3.7 months.

Pending sales were up 15.0% from September 2013,  and fell 5.7% from August 2014.   Closed sales rose 10.2% from September 2013, but are down 8.0%  from  August  2014.

Our market time got a tad shorter; 60 days in September 2014 vs. 63 days in August 2014.  September 2013 had a market time of 72 days. .

The median year to date sales price is $281,000, up 9.8% from the median year to date sales price in September 2013 of  $256,000.

So, prices continue to increase, we've had a slight increase in the number of houses on the market, but the pace of sales and number of active buyers make for a busy real estate industry.  There is still a lot of cash in the market, making it harder for first time buyers, with low down payments, to compete.

We are seeing the predicted flurry in September and October as both buyers and sellers rush to finalize real estate transactions before the holidays.  While our market slows over the holidays, plenty of real estate business is conducted, primarily by serious buyers and sellers looking to get it done.

Call me if you want to jump in.  503-312-8038

read the full Portland area report here

Stagnant but mature?

In my last blog, I wrote about our flat, stagnant, but good market.  This is an extension of that blog.

Part of why this market feels good, is that we, as real estate agents have matured into how we work in such an active real estate arena.  We better prepare our buyer and seller clients for what to expect in this type of market. We know better how to handle multiple offers on a listing and understand why sometimes it can be hard. yes, hard, for a seller to receive  seven offers, above list price within 3 days of their house going on the market.

We counsel our buyer clients from the start on participating in a multiple offer situation, and are no longer incredulous, when a listing agent doesn't get our offer in front of the seller right away.

When our active market first hit back in the 2003 - 2006, the industry wasn't particularly well versed in handling the increased speed and intense emotions of a busy and appreciating market.  We often fed the pressure cooker of emotion and stress, rather than diffusing the situation and helping our clients focus on the matters at hand.

Today, we aren't surprised by multiple offers on a listing, but nor do we expect, or feel we deserve them.  As a listing agent receiving multiple offers on a listing, we have procedures and standards in place for communicating equally and fairly with all parties, methods for helping a seller consider multiple offers, and the experience to help our seller clients set expectations for the eventual closing of the transaction.

So stagnant and flat also speaks to the calm, mature approach today's real estate agents have toward such a busy market.

As we enter the fall, I expect a flurry of activity until Thanksgiving as both buyers and sellers make an effort to wrap up their real estate activity before the holidays or end of the tax year.  We're seeing a slight increase in new listings on the market as we all get re-engaged from the summer.  Give me a call, text or email if you have questions.  503-312-8038   leslievjones@gmail.com