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Love it or List it?

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I’m sure you’ve seen Love it or List it- where a family has totally outgrown their space but one of the partners just doesn’t want to leave, so they decide to renovate. 

And if the renovations aren’t fixing the issue, then, and only then, do they move…

While reality TV is fun to watch, the reality of living in a construction zone while shopping for a new house, isn’t.

That’s why I recommend doing one or the other. Let’s break it down.

A lot of times, people get frustrated with their space. They’ve had another baby, fallen out of love with their condo, or started dreaming of retiring in a smaller space near the beach. 

Whatever the reason, it’s very important to first identify WHY you are considering a move, and then go from there. 

Here’s five things to think about…

#1 Can it be fixed easily? 

If you want an updated kitchen, swapping out fixtures, painting cabinets, and buying new appliances is a pretty easy fix. But if you want a bigger kitchen, you’re going to have to move.

#2 Can you deal with contractors?

Hiring an interior designer or general contractor to manage your project will help, but renovations require you to work with multiple companies and contractors on a daily basis. And you’ll be totally dependent on their timeline, expertise, and quality of work. If you don’t want people coming in and out of your home for weeks on end, it may be time to move into a turn key home.

#3 Can you live with the mess? 

Renovations can be dusty and dirty and shrink an already hard-to-navigate environment. Tools will be everywhere, equipment will be everywhere, and people will be everywhere. Is a renovation going to get in the way of school, work, or travel? If so, something turnkey may be more appealing.

#4 Can you tolerate a move? 

You may dread the thought of having to pack up your entire home while paying a moving company thousands of dollars to pick up your heirloom armoire and try and make it through the front door. If this sounds unbearable to you, it may be cause to stay.

#5 Do you love your location? 

If the view, zoning, corner lot, or amazing neighbors are the reason why you moved to your current house to begin with, then moving may not be the answer. In this case, it would be better to renovate the inside of the home to match the amazing benefits of the outside of the home. 

No matter whether you decide to love it or list it, it’s important to have a good Realtor to help you understand how renovations will affect your home value and help you decide if you’re better off packing up or staying put. That’s where I can help.

If you’re thinking about making a move (or know someone who is), Please reach out! No pressure, no sales tactics, just helpful advice and the guidance you need!

And finally, if you’re not thinking about making a move just yet, feel free to save this page for future reference, so you can come back to it! 

If you want to get to know either of us better you can go to our pages Jessica or Tekela

Year End Market Update

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The year end numbers are out for the Portland market for 2021. The year was absolutely insane in many ways, so lets dive into the numbers!

year end review
Appreciation

Firstly, if you bought a house more than a year ago, you averaged a 15.8% appreciation. To put that into perspective a $500,000 house is now worth, on average, $580,000. Some areas are even seeing much higher numbers. For example, Oregon City and Troutdale both saw an average appreciation of over 19%. The rural areas around Mt. Hood are up over 30%. If Covid has taught us anything, it’s that people wanted more space. So rural areas had really aggressive bidding wars and some serious price jumps.

Average Home Price

The average home price in the Portland metro is now at $582,000. I know many people are waiting on the market to drop and this simply isn’t going to happen. It will cool down, especially as climbing interest rates push people out of the market, but prices will continue to climb and affordability will continue to be an issue. We predict that 2022 will be just as competitive as 2021 was. We are still seeing houses get bid up to 100k over list price in many instances, and almost everything is still getting multiple offers. If you are on the fence, now would be a good time to get off of it.

Average Days on Market

The average days on market dropped yet again to the lowest numbers on record. We had just over 2 weeks of inventory for the month of December. This isn’t surprising because it’s December, there are a lot of holidays, and not many people want to move during this time. We have seen a lot of houses coming on the market in the last couple weeks and that number will start to tick back up.

We hope these numbers help you to get a pulse on what is going on in and around Portland! If you want specific numbers for your neighborhood, let us know and we will happily send them over. If you need anything else real estate related, feel free to submit the form below and we will get right back to you!

Ready to jump in but want to know more about us? You can read about Jessica or Tekela! Also, if you need a lender, you can find some that we love HERE

Is this a good HOA?

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Buying a home could mean dealing with a homeowners’ association. This begs the question, how can you tell if the HOA is doing a good job? Watch to find out!

HOA’s manage, maintain, and regulate everything that is outside of the home — Such as the structure of the building, the common areas, the landscaping, and the recreation areas, if they have them. But unlike the membership of other community organizations, you can’t resign if you’re unhappy with the way the organization is run.

If the community you are searching in passes these 4 checks, you are probably in good hands!

#1 – Community looks nice

If the community looks good, it usually means that something positive has impacted the community. Of course, the opposite is also true. If you’re thinking about buying into a community, take an objective look at its appearance. Is the structure of the building in good repair? Are the trees pruned, the beds weeded and the landscaping well maintained? Is the pool clean? Are any of the homes in the community eyesores? Your answers to these questions reflect on whether the HOA is performing its duties properly and requiring homeowners to do the same. The proof, as they say, is in the pudding.

#2 – Strong Communication

This is your community and you have every right to know what’s going on in it. Do your research. Figure out how the HOA board communicates with homeowners. The options are numerous and include newsletters, websites, annual reports and emails. Check for flyers advertising community meetings. If homeowners are invited to attend committee meetings, it’s a good sign that their input is heard and valued.

#3 – Strong Money Management

The best HOA’s put checks and balances in place to safeguard against the risk of financial mismanagement. They employ a second set of eyes – someone not on the board – to collect the dues, pay the bills, and review checks and invoices to make sure the HOAs financial affairs are in good order. Often the second pair of eyes is a professional property manager, a lawyer, or an accountant on staff. We also want to be sure that they have a clear budget for addressing repairs, whether it is unforeseen circumstances or scheduled maintenance.

#4 – Clear HOA Rules

HOA’s tend to have a set of rules called Covenants, Conditions, and Restrictions. CC&R’s supercede city, county, and state laws and come with hefty fines if they are violated. So it’s really important to know if you’re moving into a community with a strict HOA. CC&R’s are meant to be applied objectively and fairly throughout the community – but sometimes they’re only enforced if a neighbor complains. The best way to tell if CC&R’s are applied consistently (or not) is to take a tour around the community. If everyone’s landscaping is immaculate, the HOA is probably very strict. But if some homes look run-down, and others don’t, it’s a good sign that the HOA is pretty lax on enforcing their rules.

Now that you know what to look for, let us help guide you into the perfect community! Even if that means avoiding HOAs all together! Contact us below!

Ready to get started? You can chat with us, or our lenders! Learn more about them over on our preferred lenders page

June 2021

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The latest market update is out for June of 2021. Inventory is starting to creep back up and the buying frenzy is starting to calm down. This is really good news for buyers that are still in the market. We are seeing homes get a couple of offers instead of 20 and houses selling for 100K over list price are becoming increasingly rare. If you are a seller, there is still a good market out there and plenty of buyers, it just isn’t the feeding frenzy it was back in March. If you want to get into the details, continue on below!

The first things we notice is the average sales price. We haven’t quite hit 600k as our average to live in Portland proper, but we will by next month. This is over a 20% increase from last year and a 2% increase from just last month. I know we say this a lot, but if you are on the fence about buying, get off of it. Things are going to continue to climb and gain equity, so waiting is only making it harder to buy.

The other big stat that jumps out is the amount that things are selling over the list price. Earlier I mentioned that things were starting to cool off. That is true though this number doesn’t show it. The thing to remember is that 13% average is from homes that went pending in May and closed in June. May was one of our busiest months. Things have settled back down between 8-10% over as of recently.

The other bit of good news for buyers is that listings are finally starting to climb up above the closed sales. Things are still selling quickly, but at least everyone has multiple options when they are deciding what to buy. If you are a seller, make sure you are situating yourself with the right listing agent, the right price, and the right marketing so you can stand out among the crowd.

If you want to chat about specifics whether it is buying or selling, we are happy to do so! Just call or email us and we would love to talk with you about your unique situation! You can also look for homes HERE if you are ready to get started.

Pro Tips:

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How to Buy a Home when you need to Sell

So you are ready to move? Whether it is downsizing, upsizing, or just getting into a different area, needing to sell first can feel like a huge obstacle. Luckily we have 11 awesome tips to help you buy before you sell so this transition is as smooth as possible!

You can download our full guide, or continue below to read the highlights!

Buy when you need to sellDownload

Tip 1:

Get a Bridge Loan

If downpayment and closing cost funds are keeping you out of your dream home, consider a short term loan. A bridge loan will give you cash to use towards your next purchase.  This allows you to purchase a home with no additional contingencies!  After you move, you use the funds from the sale of your current home to pay the loan back.

Tip 2:

Use a HELOC – Home Equity Line of Credit

This is one of the most common strategies that we are seeing.  Use the equity in your home to get a line of credit to pay for your new home.  This also allows you to purchase first with no additional contingencies.

Tip 3:

Buy New Construction

Builders commonly have additional inventory allowing you to plan out your move date in advance.  This allows you to line up the closing of your current home and the closing of your new home with some overlap to ensure you only move once.

Tip 4:

Custom Build a Home

Similar to buying new construction, this allows you to line up your closing dates and your moving dates. Most custom home builders have in-house financing that will allow you to sell your home and build simultaneously.

Tip 5:

Borrow from your 401K

This allows you to temporarily pull a “loan” from your 401k.  Having this loan allows you to have the cash on hand to make strong offers with no additional contingencies. There are some special circumstances so be sure to discuss this option with your financial planner and/or CPA.

Tip 6:

Seller Carried Financing

This isnt a very common option, but if the seller owns the home outright, they will sometimes carry a short term loan for you while you wait for your home to sell.  This option requires an attorney and usually has higher interest rates associated with it.

Tip 7:

Negotiate a Lease Back

With a strong sellers market, we can list your home and ask the new buyers to give us time in the home after it has sold.This can give us an additional 60 days to find and close on your new home.

Tip 8:

Use Sale Subject To

With a strong sellers market, most buyers just want to “win” a home.  We can ask to have a close date that is subject to you finding a replacement property.  Most people want to have some idea of how long that will take, so we often see in contract within 60 days.  This is a great option especially when paired with a rent back.

Tip 9:

Look in Less Desirable Areas or Price Ranges

If you don’t have a strong preference for a certain area we can focus on locations that are not as competitive.  This allows us to have more control in our offer terms and closing dates. Also, if you have some pricing flexibility, we can find price ranges that don’t have as much competition.

Tip 10:

Write a Contingent Offer

We can write an offer that is contingent upon the sale of your current home.  This allows us to find the home you want before putting your home up for sale.  Depending on market conditions, it can be difficult to have this extra contingency accepted.

Tip 11:

Rent for a Bit

If you want to sell at the peak of the market and have additional time to look for a home, this can be a great option.  Find a short term rental to move into to remove the timeline crunches of finding a new home.

Now that you know your options, are you ready to see what your home might be worth? Or are you ready to see what options are on the market? You can do both right here!

Home Value
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Or, if you would rather chat with us before jumping right in, fill out the form below and we will get back to you right away!

March Market Update

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The real estate market in Portland is showing no signs of slowing down. As we head into spring we fully expect to see the same trends continue. If you are on the fence about buying, I’d jump off now even though it is competitive. Interest rates will keep climbing as we continue through the year and that will only lessen your buying power as home prices also continue to climb.

Breakdown

The average sales price jumped up to $542,000 from $514,000 in just a month. That also gives us a 14% increase from last year. Portland has been seeing a 10-14% increase in sales price since way back in 2018. Even if you are buying at these higher prices, you are still going to be gaining equity over the next couple years.

As we see the weather change we are also seeing more homes come onto the market. This is good news for buyers, but things are still very competitive out there. Homes are selling for an average of 8.5% over list price, in some neighborhoods this is close to 12%. Make sure you are taking to your realtor about specifics so you can be making informed decisions whether you are writing offers or planning on listing your home.

As we mentioned above, if you are waiting for the bubble to pop or the other shoe to drop, you may be waiting for a long time. The market is healthy and climbing and most economists agree this will continue for at least another year. Once inventory finally starts to stabilize we will see a slow down and plateau, but it shouldn’t cause prices to drop. If you have specific questions feel free to reach out and we would love to chat with you! Lastly, if you need some tips to get your offer accepted, head over to THIS POST to read all the things we are doing to win for our buyers.

December Market Update

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The market stats for December 2020 were recently released. It is time to dig into them and see what they mean. Almost every stat dropped last month, in some areas that is good news, in some it is bad news. The only number that rose last month is the number of sold listings. This lines up with what we know about the Portland market. There are tons of buyers out looking for homes.

December market update
Stat Breakdown

The average sale price dipped a bit, this almost always happens at the end of the year, a lot of people take a break for the holidays, so with less offers driving prices up, we saw the number drop down a bit. The days a home sits on the market are still continuing to drop along with the inventory levels. If we remove the outliers, the average days on market is actually just 7 days. So houses are flying off the market. In general we will see them listed mid week, open all weekend, and pending by early the next week. Because of this, Inventory has dropped all the way down to .8 months. As a reminder, this means if we don’t list any new homes, everything on the market will be sold before the end of the month. It’s lower than it has ever been, so if you have any thoughts of selling, now is the time!

For the whole Portland metro, homes are selling at an average of 6.7% over asking price. For a $500,000 house, that is $30,000 over asking price. As a buyer it is more important than ever that you pay close attention to your budget. If you only want to spend $500,000 we need to be shopping in the $450,000 range.

It is tough out there right now for buyers, but with a savvy agent, and a little luck, people are finding homes that are a great fit. We are helping our clients get into homes that they love right now, so if you want help with your home search, fill out the form below and we can’t wait to talk with you! If you want to see our other market updates, you can head HERE.

How to Compete in this Market

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The best words to hear after you have been out house hunting are, “Your offer has been accepted!” You did the hard work of finding your dream home, putting together a thoughtful offer, and waited patiently for what seemed like days to get the news back. Unfortunately, in our current market of high demand and low inventory, it’s becoming more and more rare to hear those fantastic words. Luckily, we have tools in place to help you get your offer accepted and to stand out against the competition, even if that competition is paying all cash.

Portland bungalow

It seems like every offer is competing these days. In the close-in neighborhoods with ‘Pinterest perfect’ homes, you could be competing with 12 or more other people. We know it is tough out there, but before you get discouraged, know that we have quite a few tricks up our sleeves to help make your offer stand out. Here are our top 4 recommendations to help get you that accepted offer phone call.

#1 Make a stronger offer

There is no way to know exactly what the competition is offering, but we can still make our strongest possible offer up front. In most cases, money talks, so offer over the list price and don’t ask for any concessions. Going in with a strong offer up front shows you are serious and that you don’t want to play any games. We can also write in an escalation clause. That allows you to set a cap and offer a set amount over the next best offer.

#2 Write a love letter

I know, its cheesy. But for most people, a home is a sentimental place. They want to know the home is going to someone that will love it just as much as they did. Tell them earnestly why you love the home and how you imagine yourself living there. A sweet case of serendipity may just win over their hearts.

#3 Waive or shorten some contingencies

The contract is written to strongly favor the buyers in the transaction. There are multiple opportunities that allow you back out of buying the house but there are none for the sellers. You can sway the contract a bit more in their favor by shortening or removing some of the contingencies. You can remove the contingency for the seller property disclosures, shorten the inspection period, and waive the right to re-negotiate price based on the appraisal. Discuss each of these options in detail with your agent. There are varying levels of risk with each contingency, so it’s important to know all the options before removing them.

#4 – Pay their closing costs

This isn’t something we see very often which means it could really sway your offer to be more favorable. Sellers have to pay title and escrow fees just like buyers do. We can offer to cover those costs to help bring the sellers net proceeds up just a bit. You could also offer to pay the commission which typically come out of the seller proceeds, but that is a much larger monetary commitment.

#5 – Surprise them

Do you have a special talent? A huge wine collection? Access to lots and lots of pizza? You can offer anything that you would like to get the sellers to accept your offer. I have had clients offer to brew the seller any type of beer that they would like (only in Portland right?). I have had clients offer free pizza for a year, a weekend get away at a beach cabin, the sky is truly the limit! The trick here is that you cannot attach any monetary value to it. We are giving it to them in exchange for the home, but it needs to be as a gift.

Even after doing all of these things, we may still have been beat out by a higher offer but it is important not to give up. The right home is out there, and when it is meant to be, it will be. Though it’s not on this list, having a great real estate agent on your side is crucial. Having positive working relationships with other brokers in the city has gotten our offers chosen over other (higher!) offers on many occasions. IF you want to get to know either or both of us a little better head over to our about us pages. You can read about Jessica here and Tekela here. Also, you can read our quick guide and meet our favorite lenders here. Lastly, if you want to look at the homes available on the market, you can find those here!