As the snow and ice melt away… so do the distressed sales

Posted on February 10, 2014June 7, 2019 by Eric Hagstette

New research from RMLS shows that the percentage “distressed” property sales & listings in our local and regional market continues to dwindle, making up just a small portion of our sales. “Distressed” properties, often referred to as “foreclosures” (technically named REO or bank owned) and short sales (when debt on a property exceeds market value) were certainly a factor in the market a couple years ago. However, in the Portland metropolitan area, urban planning from years past and lack of sprawl have somewhat insulated our property owners from the total devastation that other over built markets experienced as a result of the housing meltdown.

With that said, we continue to hear rumors and rumblings of “the shadow inventory” (the stock piles of foreclosed properties that the banks might be sitting on). Does this shadow exist? Who knows??? But with barely 3 months of housing inventory and the voracious appetite of the buyers shopping the market, we feel pretty good about the stability of our market. At Inhabit, we coach our clients to play by the #1 rule of real estate: LOCATION, LOCATION, LOCATION! Purchasing property in the right location should keep you liquid and “in demand” in good markets and bad.

Portland metro when comparing percentage share of the market 2012 to 2013:

Comparing ’12 to ’13, distressed sales as a percentage of closed sales decreased from 28.2% to 13.2%.
New listings rose from 32,011 to 35,524 which is a 11.0% increase.
Short sales comprised 6.4% of new listings and 8.0% of sold listings in 2013, down 5.7% and 4.3% from 2012 respectively as a percentage of the market.
Bank owned/REO properties comprised 3.3% of new listings and 5.2% of sales in 2013, decreasing from 10.4% and 15.9% respectively in 2012.

Below is a chart showing the number of bank owned/REO and short sales in all areas of the RMLS system during 2013.

For more numbers and information, visit http://rmlscentral.com

To Airbnb or Not to Airbnb?

Posted on February 7, 2014June 7, 2019 by Eric Hagstette

Portland’s close-in pocket neighborhoods are a perfect market for the AirBnb concept. Many of our clients are taking advantage of this short term rental demand and converting underutilized space to create passive income. We’ve seen this trend grow stronger and stronger as Portland becomes a wildly popular urban, vacation destination.

Here is a recent article Dale came across on oregonlive.com that discusses the city of Portland’s willingness to ease some of it’s restrictions on the short-term rental market laws.

Eric’s clients’ transformation

Posted on January 28, 2014September 16, 2018 by Eric Hagstette

My sweet clients Jenn and Jenny hired me to find them a home. At first glance, I was facing a tall order with their needs and wants: $200k budget, good bones, nice lines, a comfortable space for their daughter, a place to operate their home based craft business, not too far away from amenities, etc. I was up for the challenge because my clients were serious, committed, prepared, dedicated, and ready to do what it takes to land a new home for their family.

We shopped high and low, wrote offers, and we got discouraged, but we kept getting back on the bike to ride. One day, after exercising significant patience, the right house came to us. It was rough but it was right. We competed for it, we secured the home under contract and got under way with our inspections and loan underwriting which created a whole new set of challenges: loads of deferred maintenance, elderly owner unable to make repairs, oil tank, dry rot, sketchy wiring,and several other mysteries. On top of this, the loan got shaky (both borrowers self employed). Our loan officer Vince Kingston of Eagle Home Mortgage was pacing at the title company they day we went in to sign…still on the phone, still pulling it together. But WE DID IT!!!

This weekend I received an email that made my day. Jenn and Jenny sent me before and after photos and a note that reminded me of why I am in this business. They purchased a home that even made me squeamish and turned it into a beautiful mid-century jewel. I am so happy for my clients. They faced the challenges and overcame the obstacles!

– Eric Hagstette

Navigating the Simultaneous sell-buy/buy-sell

Posted on January 8, 2014January 17, 2019 by Eric Hagstette

Challenge: You want/need to “move up” but you need to sell your current home in order to buy (because you either need the equity for down payment, or your debt ratios are too tight to be approved for an additional mortgage).

Many of our clients are in this boat, and the current competitive market makes this pickle especially challenging. Right now it is difficult to compete in the buying process with a contingent offer. (In this case the contingency would be that your home must sell before you can close on the new purchase)

There are a few solutions or options for home owners in this predicament. None are perfect; however, with a great Realtor, the goal can be accomplished.

Option 1: Prepare, list and sell your existing home. You would then obtain a short term rental or interim housing while you look for your new home to buy. This requires 2 moves, but puts you in a much better buying position with liquid down payment, your purchase not being contingent on the sale of of your house, potentially more flexible closing period, and no need to request a rentback period.

*We realize many people don’t want to move twice, so here are a few other options.

Option 2: List your home at fair market value, or slightly below. You will likely obtain more than one offer, be more in control the closing terms, and negotiate a longer closing period which would allow you time to shop for a replacement house. The sale would be “subject to finding a suitable replacement property” within a certain period of time. You can then write an offer “subject to the closing” (rather than the sale) of your existing home already in pending status.

Ideally in this situation you’d be through the inspection and appraisal contingency on the sale of your home when you write the offer to purchase your new home, while still contingent on closing. This is perceived as a stronger position, with no predictable obstacles in the way. The close of escrow of both the sale and purchase would be scheduled simultaneously.

Option 3: You prepare your property for sale, find a replacement home, and write an offer contingent on the sale and closing of your current home. If the offer gets accepted, the status of the sale agreement becomes “bumpable” meaning that the contingent offer can be bumped by another buyer under certain terms and conditions prior to closing.

Option 4: There’s got to be a rich Aunt or Uncle out there somewhere that will give you some “bridge” financing, right??

Happy Inhabiters – “Eric exceeded our expectations…”

Posted on January 6, 2014June 7, 2019 by Eric Hagstette

“There is a great need in the real estate market for your style and approach. You exceeded our expectations with Gloria’s house in every way. We will recommend you whenever we get the chance.” – Lance

Mt. Tabor house sold by Eric Hagstette, July 2013

Inhabit office art

Posted on January 6, 2014June 7, 2019 by Eric Hagstette

Local artist. Jerry Inscoe, created this amazing abstract map mural of Portland for our conference room wall.

Portland is the best, according to movoto.com

Posted on December 23, 2013June 7, 2019 by Eric Hagstette

Those of us living in Portland know how great it is. Motovo.com took a compilation of it’s Big Deal Scores from 15 of their national-level top 10 cities lists published in 2013 and averaged them out to produce an overall score for each city for the entire year. Portland ended up NUMBER 1 on the list.

Movoto’s 10 Best Cities in America 2013 By Movoto Real Estate

News & Events – Prices and rates expected to rise in ’14

Posted on December 17, 2013January 16, 2019 by Eric Hagstette

Rare, Double-Whammy

There’s a lot of excitement in the air in anticipation of a very strong 2014 nationally and locally. Check out this Portland Business Journal article ranking Portland in the top 10 of the countries hottest markets next year. Fasten your seatbelts and get ready. Prices up and rates too….this will be interesting.

If you’ve been on the fence to buy or sell, now may be the time.

Having fun with floor tiles

Posted on December 3, 2013June 7, 2019 by Eric Hagstette

Here’s another look into our office design and build-out process. Things are really starting to take shape.

5 Reasons to Sell in the Winter

Posted on November 20, 2013January 16, 2019 by Eric Hagstette

5 Great Reasons to Sell During the Winter

Many of our sellers ask us if they should sell now or wait until the spring market to sell. At Inhabit, we encourage our sellers to list their house during the winter as long as their house is market ready. Here are 5 great reasons to get on the market NOW instead of waiting for the Spring market:

1. Inventory is lowest from November through February. Take advantage of that! Fewer homes on the market means less competition.

2. Buyers out looking during these months are serious buyers. They’re out shopping in the rain and the dark because they need and want to find a house!

3. Interest rates are still historically low. The holidays seem to bring less volatility as well, making it less stressful to pick a time to lock your rate.

4. Home sales in the greater Portland/Vancouver area are now up 15% year-over year on average sales price. Who knows if that significant growth rate will be sustainable through next Spring?

5. The area rental market is very tight right now; such that even with just 5% down, a 30-year mortgage payment has become cheaper in most inner Portland neighborhoods for someone with good credit.

Here’s a great example of one of Chylese’s clients taking advantage of the winter selling market. 5 bedroom/2.5 bath Victorian in the Alphabet District – $795,000