I’ve had multiple requests in the last couple of days on the topic of the reservation process for new construction. There is no uniform policy so the answers here mostly use The Strand as an example. Keep in mind that we are not the listing agents for any of the new construction developments, this post outlines my experience to date.
RMLS’s Market Action confirms what we already know. The market is tight. Inventory is down to 1.8 months. The report continues:
Appreciation
To calculate sale price appreciation, prices for the twelve months that ended with March 2005 are compared to prices for the twelve months ending in March 2004. Using those time periods, the average
sale price appreciated 10.7% ($251,400 v. $227,200). Using the same date range to compare median
sale price we see a 10.8% appreciation rate ($209,900 v. $189,500).
These numbers are great for this market but we probably need to consider the high quanity of new construction that has been added to the existing condo pool. These new constructions are continually pushing the envelope in price per square foot. The obvious side effect is that it pulls the existing units up wit it.
Market Action is published towards the end of each month for the previous month by RMLS of Portland.
The Portland Market is hot so when it’s time to get in the car and actually view homes, it helps to be prepared.
1) Wear comfortable clothes. Shoes that are easy to remove will make life much easier.
2) Consider bringing your checkbook if you are going to write an offer. We can use a promissory note but there is less paperwork if you can write a check that we hold until your offer is accepted. Sellers view evidence of the actual check a little stronger than a note when comparing offers.
The Internet and the Multiple Listing Service (MLS) has changed the way we look at homes. Buyers can often select or eliminate homes based on what they see on the Internet. Virtual tours takes Internet viewing one step further. As part of our marketing for any listing we take, we offer to do a virtual tour of the property. This one is of our listing on the Claremont Golf Course for $429,900. The tour helps buyers select homes and reduces unnecessary showings, a benefit for both the buyer and seller.
The virtual tour is a two dimensional open house. The seller needs to consider what is shown in the tour. Valuables should be put away prior to the tour being shot and the home needs to be in showing condition. The tour is not effective in homes with small rooms. The camera rotates from a center point in the room and it is not always possible to get an angle that showcases the room. Most virtual tours include up to eight shots and should be included as part of your agent’s marketing.
Question from Buyer:
Is it safe to assume that you will show us all For Sale By Owner properties that meet our requirements?
Short Answer:
No.
Explantion:
There is no way to know how a FSBO is marketing their home. If it is not in the MLS system, we would probably be unaware of it. Some FSBOs pay a service to list themselves in the MLS. The FSBO portion of the market is small but very important to the overall picture.
News Flash: Bert Waugh Jr, President of Prudential NW Properties, is the recipient of PMAR’s 2005 Realtor Good Neighbor Award!
From the PMAR (Portland Metropolitan Association Of Realtors) website: Realtors work hard to improve the quality of life in their communities. As a result, the National Association of Realtors has established the Good Neighbor Award. The award, in its fourth year, recognizes the ongoing efforts of Realtors who make exceptional contributions to improving the quality of life in their communities. Nominations reached an all-time high in 2003, with nearly 300 entries. Winners receive a grant for their charitable organization.
Bert was selected based on his service and dedication to homeless youth. Twelve years ago, he founded Transitional Youth, a non-profit group that works closely with local youth assistance centers such as the Salvation Army Greenhouse and New Avenues For Youth. The group’s mission is to improve the lives of homeless youth by providing food, clothing, education, positive recreational outlets and related experiences. Fully 100 percent of each donation goes to help homeless youth—Bert sees to it that Prudential Northwest Properties absorbs all overhead expenses.
Congratulations, Bert, on this well-deserved award. We’re very proud of you!
Bert will be honored at the 2005 Portland First Citizen Luncheon on May 5 at the Governor Hotel. This year’s First Citizen Award recipient is Gert Boyle, of Columbia Sportswear.
The second round of pricing and availablity came out today. Yes, prices did increase from the first round. Reservations will begin tomorrow at 9:00 AM, first come, first served. Priority will be given to those that put a reservation request in on the first round but did not get a unit.
Yesterday’s front page Oregonian article is titled, “Want to buy a home? Good Luck.” Current inventory is just 1.8 months. That means that if no more homes were put on the market, the current active listings would all be sold in 1.8 months. That translates to Portland being a seller’s market. When inventory is under 6 months, sellers have to make fewer concessions and are able to get higher sales prices.
This leads us towards escalation clauses, an offer where a buyer is willing to beat another buyer’s offer of similar terms and conditions by a set amount of money. Seems simple but this is not territory not to be entered into lightly. Make sure that your offer is worded properly and that your agent has fully explained the process.
A partial list of things to consider:
1) What if there is another offer with an escalation clause? Have you capped your offer or is the sky really the limit?
From May 13th to May 22nd, seven Pearl District units will open to the public. The Pearl CitySpaces project will show units in the Pinnacle, the Lexus and Louisa and will be decorated to showcase seven different demographics.
Tickets Monday-Thursday are $10 and $15 for Friday-Sunday. Tickets are available at Powell’s, Whole Foods, Umpqua Bank and other retailiers throughtout the Pearl. Tickets can also be bought online.
Expect a sellout and SmartPark will provide three hours of parking with your event ticket.
The second round of pricing and newly released units will be announced tommorow and reservations will begin on Wednesday. Priority will be given to buyers that had requested a unit in the first round and did not get them.
We are not the listing office for the property (or any of the other new complexes around town). We are buyer’s agents and work on your behalf. The listing agent works on the developer’s behalf. We are already working with one buyer with an accepted reservation. Our commission is paid as part of the current asking sales price and is not added to your purchase costs.
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