Instant offers! The easy button has a price.

You may have seen some buzz around a few real estate "disruptors", offering instant, or easy sales.  There are a few different business models out there.  But basically, they are offering to save you the hassles (and expense) of marketing your home.  Instead, they'll "bring" you an offer to purchase.

Some companies will actually buy your house, and then take on the hassle of preparing and marketing the home. And they'll pocket the difference.  Others have a posse of investors set to buy houses.  Or, maybe you're getting the old fashioned letters in the mail from folks who either have a buyer, or offering to buy your home, in an easy, quick, no hassles transaction.

There are times, and situations, where prepping and marketing a property is indeed too much of a hassle, and for extenuating reasons, owners just need to get the house sold and move on.  I had a client a few years back, who, through a job transfer, had two weeks to show up in another state, at work.  They'd found a place to buy in their destination city.  But here in Portland, had a VERY busy household, with a few boys, several pets and lots of unfinished projects.   Getting the place sold quickly was the goal.  Once I educated them to how much they might be leaving on the table, and was sure they wanted to for go the hassle, I was able to connect them to a cash buyer, and get their home sold, as is (without all that prep work) and quickly.  You don't have to forgo representation to have a quick, easy transaction.

Of course most sellers want top dollar for their property,  but that does come at a cost.  Getting and keeping your home show ready, scheduling showings around your family coming and goings, and not having a date certain, nor an amount certain for an offer can be stressful.  There is nothing wrong with prioritizing quick, easy and known dollar amounts and timeliness over the most money...as long as you have an idea of how much money you are forgoing.  And as long as the "easy button" really is as easy as it sounds.

In general, folks making these instant offers are very astute buyers.  Many have access to lots of capital, and big data to help them make their buying decisions.  No offense, but most certainly, they know way more than you do.  And, most of these instant offers don't provide for you, the homeowner, having your own representation in the transaction.  Don't worry your pretty little head, they'll take care of everything.

But sometimes, these offers are crazy low, as in criminally low.  We just got one on our house.  The sender obviously doesn't know I am a real estate agent.  The offer to buy is for $300,000, all cash at closing or the proceeds from private financing.  Note.  This is not an actual cash offer. They don't have the cash on hand, and will be getting some kind of financing, it just may not involve an appraisal on the property.  But back to the price.  Zillow thinks our house is worth $655,998, and Multnomah County shows the market value at $609,440.  This offer is WAY off.  Other terms of the offer include a 60 day closing, and no realtor fees.  No realtor fees also means the seller would be selling to very astute buyers, with no representation themselves.

This "offer" came with a letter of intent, which if signed, commits the seller to working with these folks for 60 days.  That is that the seller, " will not directly or indirectly, solicit, entertain, discuss or accept any offers in connection with or enter into any agreements with respect to the sale, or other conveyance of any interest in the Property with any person or entity other than buyer".  Wow.  So if I got all excited and signed this letter, to "see where it goes", I'd be stuck with these folks for 60 days.  Oh, and the paperwork also says..."we hope you consider us as a trustworthy resource to obtain fair and flexible terms for a clean and straightforward transaction,"  I'm not sure offering 50% of value is fair or trustworthy.

Please please please, if you are wanting to avoid the hassle of selling and just want a quick easy deal, don't sign this stuff right away.  Take time to do some research, ask a realtor.  For heavens sake, at least look at County's opinion of market value and zillow.  I don't love zillow, but they're at least an independent data point!

Yes, I get the attraction of an easy sale, but sure don't think its worth $300,000!  I worry about less astute owners, especially the elderly, who could really lose out.  Oh, and when I do some digging on with the Construction Contractor's Board of the underlying developer, I do find some complaints filed.  hmm

If you are approached about an instant offer, and want a reality check, please get in touch.  I'd be glad to give you a market analysis so you can compare.  But, get in touch before signing anything!  leslievjones@gmail.com  503-312-8038

Portland's Ladd's Addition

Way back when, Portland was actually three separate cities; Portland, East Portland and Albina.  In 1891 the three cities aware combined into a single city, and that same year, the Madison Street Bridge (now Hawthorne Bridge) opened.  These two events led to an eastside boom.

Also in 1891 , William Ladd and his wife Caroline Ladd filed the plat of Ladd's Addition, dividing the land into 32 blocks with 716 lots.    Bounded by SE Hawthorne and SE Division, SE 20th and SE 12th, Ladd's Addition remains one of Portland's closest neighborhoods to downtown and the central east side.

Photo courtesy of Oregon Historical Society.
Circa 1915

The neighborhood is distinct for its street layout, which was Ladd's own idea (against the advice of his surveyor).  Some say it was based on the layout of Washington DC, though there is no real evidence of that.  Aside from the layout, Ladd's Addition is unique for its five parks that interrupt the street layout, and for the service alleys.  The neighborhood is considered a monument to the City Beautiful movement.

The five parks were part of Portland's 1903 Olmstead Parks Plan (Olmstead, of New York's Central Park fame).  These parks are lushly gardened with roses (Portland is the Rose City after all), rhododendrons and azaleas.

As the neighborhood was built out, street tress were planted, (mostly elms, maples and lindens), making Ladd's Addition one of America's most treed neighborhoods.  Dutch elm disease has hit Ladd's Addition hard.  There is a community based tree inoculation program, and volunteers regularly plant trees to maintain the neighborhood's lush tree canopy.

It was thought the alleys of Ladd's Addition would lend it a tone of affluence.  There are few curb cuts on the main streets of Ladd's Addition, and many houses have garages accessed from the alley.  In addition, most utilities were run down the alleys, giving the streets a clean look.  Today, most residents park their cars in front of their houses, on the street.  The garages are most often used for storage.

As with many neighborhoods in Portland, Ladd's Addition originally had deed restrictions, excluding racial minorities (except as servants).  As those restrictions expired, some Asian American families moved in to the neighborhood, and in 1939 the Portland Realty Board informally designated Ladd's Addition as suitable for "oriental" families.  Seemingly African Americans and other minorities continued to be excluded by zoning or deed restrictions until the Fair Housing Act of 1968.  Other tactics continued racial discrimination in housing well past 1968.

Referenced above, the City Beautiful movement was an effort to introduce beautification and monumental grandeur in cities.  It was thought such beauty would lead to civic and moral virtue, creating social order through beautification.  Read more about that movement here.

Ladd's Addition was Portland's first residential historic district (1977), and in 1988 the Ladd's Addition Conservation District Guidelines were adopted, with rules and restrictions on changes to the street/garden system, new buildings and exterior rehabilitation of existing buildings.  These guidelines address preservation of sidewalk details and horse rings, park use, front and side yard visibility, parking strips, trees, and many restrictions on remodeling and new construction to keep properties consistent with the historic character of the neighborhood.

Horse ring in a Portland curb

Today, Ladd's Addition remains a very sought after neighborhood.  The combination of architecture, close-in proximity, superior access to public transportation and bike routes, and nearby amenities of the surrounding neighborhoods have Ladd's Addition at the top of many lists.

I'll soon have a listing in this fab neighborhood.  The house I'm listing is shown in the photograph above! Check back in about a week.

Thanks to the Oregon Encyclopedia ( a Project of the Oregon Historical Society) and the American Planning Association for their excellent information).

Thirty Years?!

Wow.  2019 marks my thirtieth year helping clients buy and sell real estate in Portland's varied and unique neighborhoods.  Throughout the year, I'll be looking at how the real estate industry, Portland, and I have evolved over those thirty years.

So, in 1989, I was living in a duplex at SE 14th and Yamhill.  That neighborhood was a bit "different" than it is today. The Kienow's grocery store was where Nostrana now sits.  And there was a video store where Crush Bar is.  We'd walk over to the video store and rent a movie AND a vcr.   Zell's Cafe was, and still is at 1300 SE Morrison.   The Monte Carlo and Lido restaurants were at SE 10th and Belmont.  Closed in 2000, a fire in 2002 left the property in limbo.  The Belmont goats lived there, until construction of the Goat Blocks began.

I was dating my now husband, Don.  We had cats.  Lots of cats.  I drove a Toyota 4x4 pick up truck. I loved camping.  Today, I'm married to Don, we have cats and a dog. I drive an electric car, and I still  love camping. 

Questions about 2019 real estate?  Give me a call.

The thing about using price per square foot

When looking at pricing of houses, many of us revert to the price per square foot to compare homes.  Sites and apps such as zillow and realtor.com prominently display the price per square foot, and it sure feels like an easy way to gauge pricing.

But here is the thing.  What square footage is being used in the calculation?  Our local RMLS requires we use all square footage, finished or unfinished.  Garages, even attached or tuck under, are not included.

Most likely, we've all seen a HUGE swing in the level of finish in basements and attics.  There are plenty of old houses with funky, slightly damp basements; best for storage, work shop and messy projects.  We've also seen lovely basements with nice stairways, egress windows, waterproofing has been done, concrete floors polished and so on.  Both these basements will show up as basement square footage.

If I'm comparing a home on a crawl space, only the living space shows in the square footage.  A house with the same above ground living space, on a funky basement, will show as much as twice the square footage, and a MUCH lower price per square foot.  Is there value to the basement?  Yes, some.  But that funky basement square footage is not worth anything near what the above ground living space is worth.

What if that house on the crawl space had a nice, attached garage; drive right in.  Laundry in the garage (instead of down those steep basement stairs), and an entry to the kitchen from the garage.  One might argue that garage space is worth more than the funky basement.  Oops.  The garage isn't included in the square footage calculation   The crawl space/garage house still looks smaller and has a higher price per square foot than the house with the funky basement.

Attics play out similarly, though in general, folks value above ground square footage higher than basement square footage.  Attics can have plenty of challenges; steep, narrow staircase, low or limited ceiling height, little or no insulation, limited outlets etc.  Many of these attics weren't meant for occupancy.  But over the years, someone started using it for storage, and then project space, and then a den or study, and then a bedroom.  These attics may not have the necessary clearance for fire safety, and the added outlets, or even bathrooms, probably weren't done with permits, and may not be to code.

So, yes, using price per square foot is an easy, handy tool.  More important though, is how the space feels to you.  How will you and your family use the space?  For some, that funky basement is perfect! Others won't ever use it, and would value that attached garage over the basement.

In any case, buyers should be careful about excluding houses from their search because of what looks like small square footage or a high price per square foot.  You might pass by the right house because of the "easy button".

If price per square foot is really important to you, your real estate agent may be able to eke out a more accurate way to evaluate homes with different basement, attic and garage configurations.  If you have more questions on this, do get in touch, I'd be glad to help.

Have you had a chance to hang out in Montavilla?

I've got two listings coming up in the Montavilla neighborhood, and thought I'd start with a bit about the area.

In 2017, Lonely Planet named the Montavilla neighborhood one of the top neighborhoods in the country to visit.  The compact commercial district, including the Country Cat, Academy Theater and my favorite, Redwood, are just a few of the businesses and watering holes that benefit the area.  The farmer's market at SE 76th and Stark makes the place quite active in the summer.   The vibrant Montavilla Business District contributes to the thriving business community.

Officially, the neighborhood boundaries are I-84 to the north and SE Division to the south, I-205 to the east, and SE 76th (with a jog to SE/NE 68th) to the west. NE Glisan Street has a bit of a  commercial district too.

The area was originally farmland, producing vegetables and berries.  Many early settlers were of Japanese descent; farming the land and taking it to Portland to market.  The neighborhood also served as a stopping point for travelers going from Hood River to Portland.  Streetcar service started in 1892.  Originally named Mt. Tabor Village, the streetcar abbreviation was Mt.Ta. Villa, which over time became, Montavilla.  That streetcar service ended in 1948.

The current Milepost 5 artists' community pays homage to the stone milepost marker P5 marking a distance of five miles to the downtown courthouse.  It is a housing community for creative folks and hosts a variety of openings, shows and performances throughout the year.

In addition to the commercial districts, Montavilla also has a fabulous park and community center at  8219 SE Glisan.  The community center houses an outdoor pool, Portland Parks Pre-school, multi-use room rentals and kids party packages.  Its a busy place!

Click here for market details in Montavilla.   I'll be listing a sweet three bedroom, one bath ranch at the end of the week.  This house is graced by an incredible Sequoia tree, originally planted from seed.  The other listing is a newer two bedroom, one bath home that will hit the market in a month or so.

And I'll post details of the listings once they are on the market.  And as always, if you have questions or want real estate advice, please get in touch.

Government shutdown and home loans for government employees

Hmm.  First, some context; most low down payment loans (and other types) require the buyer have some savings, called reserves, in the bank when the loan and purchase close.  This assures the lender, who basically owns the house because of the low down payment, some security should the buyers' circumstances change.  No one wants the low down buyers to lose their home because of a few months of unemployment, or to be thrown into a tailspin if the hot water heater and furnace happen to break at the same time.

Ironically, the government affiliated Fannie Mae and Freddie Mac loans have added in, for loans to government employees, required two months of full mortgage payment reserves, or whatever the automated underwriting program requires ; which ever is greater.  The concern is that the lengthening shutdown may affect buyers' ability to make payments. 

Home buyers with government jobs used to be considered rock solid borrowers as their employment was considered quite secure.

If you are a government employee in the process of buying, or know someone who is, be sure to check in with your lender to see if this change will affect your loan eligibility or closing costs.

If you have questions give me a call. And a shout out to Eric Newman at Guaranteed Rate for this info.

2018 Year end market stats

Our multiple listing service just released the market information for 2018.  Here are a few highlights.

The year to date median sale price was $400,000;  a 5.3% increase over 2017.  December's median sale price was $390,000, so that $400,00 clearly had some lift from earlier in the year. 

While the year to date market time for a listing was 48 days, year to date market time for 2017 was 45 days, so not much of a difference.

2018 saw more new listings hit the market, and the number of closed sales decreased by 5.9%.  Consistent with this,  the inventory calculated in months was higher every month in 2018 than the corresponding months in 2017.

This means, buyers have more houses from which to choose.  Houses are staying on the market a bit longer, perhaps giving buyers more than a millisecond to make a buying decision.  Sellers have more competition, with more houses on the market.

Looking at the change in average sale price, there are some suburban areas seeing higher than average increase.  Gresham/Troutdale saw an increase in the average sale price for 2018 of 7.7%.  Oregon City/Canby increased at 7.1% in 2018, and Beaverton/Aloha increased at 8.6%.  Oh, and West Linn/Lake Oswego, increased by 0.6%. 

If you are thinking of making areal estate move, get in touch.  I'd love to help.