We're pleased to announce the launch of Lake Oswego Living ... the sister website to Portland Waterfront Living Check them both out!

Offered at $500,000.  Seller financing available.  Everything about this Lake Oswego townhouse-style home speaks to those discerning individuals who demand a care-free lifestyle and accept only quality:  a tile roof, an open floor plan with 11 foot ceilings and views of Mt St Helens. This Mt Park townhome backs to a greenspace and has two decks for entertaining -- both with gas hookups. Central vac, security, intercom, surround sound.  Dual walk-in-closets.  Media room. Even a kitchenette in family room.  Lower level could be separate living quarters or workspace. 3,175 SF, 4 Bedrooms, 3.1 Baths, Taxes $6,060, HOA $467 twice yearly.

Click here for Property Photos, Walk Score, School and Neighborhood Information, Zillow Zestimates, Google Street View, Printable Flyer and more...

We're starting a new weekly feature: links to must read articles that relate to the real estate market, including the economy.  There are this week's links (sorry they're so bleak):

CNBC:  New Rules on Home Appraisals End Up Thwarting Many Sales

CNBC:  CEOs See Recession Easing But Still Cutting Jobs, Spending

CNBC:  Mortgage Brokers Slash 2009 Forecasts

CNBC:  Echo Boomers To Resuscitate US Housing Market?

CNBC:  Spring Selling Season Lackluster, Move Up Buyers Absent

KGW:  Portland Unemployment Rate 12.3%, Oregon 12.4%

Click here to download PDF for Portland Metro Area report

I have two listings in which the owners are in a position to offer short term financing:

6 Northview Court, Lake Oswego 97035

5858 SW Riveridge #9, Portland, Oregon 97239

Both are beautiful homes and each owner is motivated to sell.  Please click on the addresses above to view their photos.

Price Dominates, But It's Not The Only Factor

First, I have to say that we have some of the best clients anyone could ever hope for.  Despite the ugly real estate market, each and every one of our clients is taking a reasoned, pro-active approach to getting to sold.

In our Spring Newsletter, I outlined six critical success factors for selling in a buyer's market (click here to read). 

The proof is in the results:  two back-to-back full price offers for one of our clients immediately after they implemented the plan. We repainted the entire condo (we actually did the painting, they bought the materials), installed brand new carpeting (which was graciously donated from another of our clients), and staged the entire main floor.

While pricing the home aggressively was certainly a key driver, it wasn't  the only factor... so said the buyers. Making your home move-in ready and staging to the nines really does work.

And Enhances Commissions for Buyer's Agents**

Another confirming data point came in an email that I just received from The Strand.  Arguably one of the waterfront's best selling new condo developments, the swanky three tower development next to Riverplace just announced a major price reduction and an increase of the commission to buyer's agent.

For example, a 2151 SF Townhouse that had recently been listed at $749,000 has now been reduced by $100K to $649,000.  The commissions have been increased from the standard 2.7% to 3.5% as an incentive to help drive sales.

Despite The Strand's relative success, the downward price adjustment is most likely in response to high condo inventories in Portland generally, and along the waterfront specifically.  Also likely adding to the price pressure is  the moribund luxury home market -- of which makes up a goodly portion of The Strand's inventory (click here to read more).

**The increase in buyer's agent commissions brings up an interesting question that I get asked time and again by prospective waterfront condo buyers: "Can't I get a better deal by 'going direct'?" 

To wit, my reply is always the same: the value of a buyer's agent doesn't change - whether it's new construction or existing homes... condos or a single family residence.  I can't count how many times I've seen unrepresented buyers pay too much for  properties simply because they don't do in-depth analysis on the property/area.

Not This Time.  Four Recent Closed Sales Concur.

I count myself as blessed to be one of the Portland Realtors closing transactions.  During the past three months, I've represented four buyers; and in each case, the statistics and trends cited above held true.  Here's a thumbnail of each of the transactions:

Original Price/List Date vs. Sale Price/Close Date

1. $350K in 03/2008 vs. $292K in 02/2009

2. $493K in 04/2008 vs. $407K in 04/2009

3. $580K in 07/2008 vs. $465K in 05/2009

4. $365K in 04/2009 vs. $365K in 05/2009**

**2008 Market Value per City of Portland = $497K

Each of the sellers ended up taking significantly less than their original asking price.  And in the case of the fourth transaction, the full sales price belies the fact that the property was listed significantly below market value to begin with (and look how quickly the property sold!).

Another point to consider... in the case of the third transaction, which closed for $465K... we culled through hundreds of listings that fit this family's search criteria and previewed nearly 50 homes over the course of three days before writing the offer.  What sealed the deal?  Price, accessibility to preview, showing condition and neighborhood. 

Portland Market Improves. But Only Marginally.

April's Market Action Report published by Regional Multiple Listing Service showed modest improvement over March and substantial improvement over January of this year when inventories shot up over 16 months (click here to download the report). 

But a year-over-year comparison of April 2009 to April 2008 showed pending sales down 10.1% and closed sales decreasing by 17.7%.  New listings dropped by 28.1% to help bring down inventory levels to 11 months - almost twice the inventory level of a so-called healthy market. And taking an even deeper dive into the health of the market provides little comfort for Portland area sellers:

1.  Record Price Declines According to Standard & Poor's Case-Shiller Index, Portland area home prices fell 15% in March 2009 when compared to March 2008 -- the 15th straight month of decline.  On average, home values in Portland have fallen 21% since their peak in 2007.  The Oregonian says we're back to 2005 levels (click here and here to read more).

2.  Distressed Listings Now Over 18% Ryan Frank at the Oregonian reports that nearly 1 in 5 homes listed for sale in the Portland Metro Area are either in foreclosure or are short sales (click here to read more). 

3.  Oregon Foreclosures at 30-Year High The Mortgage Banker Association reported that 2.21% of Oregon's mortgages were in some stage of foreclosure in the first quarter of 2009 -- a level not seen since the 1980s. And, an additional 7.5% of 636,000 outstanding mortgages in Oregon were at least one month late, but had not yet entered into foreclosure status.  With Oregon's unemployment rate at 12 percent, foreclosure and delinquency rates are expected to worsen and possibly extend into 2011 (click here to read more). 

Treasury Secretary Tim Geithner announces new steps by the Obama Administration aimed at helping troubled homeowners, reports CNBC's Diana Olick; with Tanya Acker, attorney/Democratic strategist.

Click here to download PDF Portland Metro Area report.

5858 SW Riveridge #3

NEW PRICE. NEW CARPET. NEW PAINT. NEW STAGING.  The best value on the Willamette just got better! Offered at $250,000. 1,222SF, 2 Bed, 2 Bath light-filled townhome is move-in ready. Open beam ceilings add to the charm. Secured parking. Watch boats sail by from two decks. Taxes $3,875.  HOA $384.

John’s Landing waterfront community is close to shopping, restaurants, pubs, transit, bike trails and parks. Ask about private boat moorage and additional storage.  Click here for more photos.

Price Reduced to $500,000.  3,175 SF, 4 Bedrooms, 3.1 Baths, Taxes $6,060, HOA $467 twice yearly.  

Tile roof, open floor plan with 11 foot ceilings, views of Mt Hood. Backs to greenspace.  Two decks both with gas hookups. Great entertaining spaces throughout. Central vac, security, intercom.  Kitchenette in family room.

Call 503-730-0702 to schedule showing. 

Click here to download flyer.  Click here for more photos.

Google Map of 6 Northview Court, Lake Oswego 97035 

188 SE Spokane #3

New Price! Price reduced to $425,000. 1,762SF, 2BD, 2.1BA + Loft and 1 Car Garage. Unobstructed river views. All the amenities you expect to find in a luxury home: a gourmet kitchen, stainless appliances, built-in refrigerator, granite counters, hardwood floors; gas fireplace; gorgeous built-ins and millwork throughout. The master suite has its own private balcony overlooking the river. The loft is perfect for a home office or den. The second bedroom suite is complete with its own private bath.  Click here for photos.

5858 SW Riveridge #9Price Reduced to $350,000. 1,182SF, 2BD, 2BA. Paid $389,500 in January 2008. Views of Willamette River & Mt. Hood. No stairs from secured parked to the unit. Spectacular remodel. Gourmet kitchen, slab granite, large pantry, Thermador, Asko and Sub Zero appliances. Heated travertine tile floors in entry and kitchen. 2nd bedroom with WIC and slider to patio. Custom tile in guest bath, custom blinds. Gas Fireplace. Plenty of storage. In the heart of John's Landing. Close to transportation, restaurants, shopping and recreation. Minutes to downtown. Click here for more photos.

5858 SW Riveridge #32, offered at $440,000. 1,288SF, 2 bed, 2 bath.

Not in RMLS and too new for photos.

Truly awe inspiring, unobstructed 180 degree panoramic views of Willamette River (north, east and south), Downtown Portland as well as Mt St. Helens and Mt. Hood.

John’s Landing waterfront community is close to shopping, restaurants, pubs, transit, bike trails and parks. Minutes to downtown.  Ask about private boat moorage.

Call me at 503-730-0702 for appointment.

The annual real estate issue of Portland Monthly Magazine is out on news stands but also available online.

The cover article Buy, Sell, Rent, Keep? can be found here.  And click this link for an interactive map of Portland's neighborhoods.

Six Critical Success Factors in a Buyer's Market

All indicators point overwhelmingly in favor of the buyer in the Portland residential real estate market: soaring unemployment, rising foreclosure rates, slowing sales and inventories near historic highs.

But with these challenges come a few bright spots: an $8,000 first time buyer's tax credit, historically low interest rates below 5% for 30 year conforming loans and improving weather should all help stimulate activity.

Taking both the good and bad into consideration, there is hope for home sellers. Following are six critical success factors sellers must do to get to sold:

1. Price Aggressively From the Outset
According to the Regional Multiple Listing Service, average sales prices in Portland for February 2009 were down 13% compared to February 2008 ... and the pace of sales declined 38% year-over-year. With foreclosures, short sales and unemployment rising at an alarming rate, sellers will need to get ahead of the falling price curve to attract the attention of qualified buyers. In a seller's market, you could price a home slightly above comps. In this buyer's market, you'll typically need to set your price below comps.

2. Be Move-In Ready AND the Best on the Market
Economic challenges and tighter lending standards often leave little or no cash for buyers to remodel after a purchase... so your home needs to be move-in ready. But perhaps even more important is the need to improve your property's overall appeal. This is an absolute necessity in order to give your property a competitive advantage given the historically high inventory levels. Without eye-catching marketability that surpasses the competition, a property is unlikely to attract the attention of a buyer. So to that end, get all the fix-it projects done; put a fresh coat of paint on the areas that need it; and, professionally stage the house to the nines.

3. Be Flexible - Even After The Deal Is Struck
One other important note to keep in mind about pricing: with tightening lending standards comes more conservative appraisals. If you're not in a position to offer an owner-carried-contract (meaning you need to be cashed out) you'll need to be aware of how the banks new conservative lending practices can impact a deal -- even after mutual acceptance between the buyer and seller. Appraisals can come in lower than the agreed upon sales price, which in turn can impact Loan-To-Value ratios for the buyer.

4. Sell or Rent, But Not Both
No one can blame a homeowner for being tempted to rent a vacant property while its on the market. But to get straight to the point - it's a terrible idea. Typically, renters hurt your property's marketability simply because they will not keep your home in show-ready condition at all times (clean, depersonalized, staged)... and they typically impose restrictions on showings that dramatically reduce the probability of selling. Something else to keep in mind (disclosure: I'm not an expert in the Portland rental market) ... but I've heard the glut of condo projects that have converted to apartments - combined with other new high rise apartments coming online - are keeping rental rates relatively low.

5. Grant Unfettered Access
A buyer's market brings a heighten level of consumerism. With this in mind, buyers can have the expectation that house-hunting is like retail shopping -- it's done on their schedule and has a large emotional component to it. Granting buyers and their agents unfettered access to view your property is vitally important. It's another reason renters and "Listing Agent Accompaniment" are a bad idea. (Listing Agent Accompaniment is a seller imposed requirement where the listing agent must be present when a buyer's agent shows the property ... and more often than not, it is off-putting to the buyer and can impede their ability to connect with a property on an emotional level).

6. Hire a Market Specialist
This final point is self-serving, but that doesn't make it any less valid. We specialize in Portland's waterfront and Mt. Park in Lake Oswego. We've successfully represented dozens of buyers and sellers in both areas. Both require a deep appreciation of Home Owner Associations, special assessments, neighborhood resources, etc.... This type of specialized knowledge gives our clients a competitive advantage both in marketing and keeping a transaction together. Read some of our client testimonials here.

Portland residential inventory levels near 17 months
Click here

Oregon unemployment rate near 11%
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Foreclosures up Oregon due to unemployment
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Tax Credit for First Time Home Buyers
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Mortgage rates fall below 5% for 30 year fixed
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Spring Sale: Home Sellers May Flood the Market
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