Posts Tagged ‘Short Sales’

Portland Real Estate Market Update: Inventory Down, Distressed Homes Up

Friday, October 31st, 2014

Normally during this time of year we do see inventory shrinking and indeed this year is no different. Down from roughly 6,400 homes on the market back in late August to 5,640 as of today as this graph shows:

 

 

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Inventory shrinking quickly and steadily; semi-normal for this time of year

Tuesday, November 6th, 2012

Normally in the fall we see a decline in new listings and inventory in general and this fall is no different, however this time around we’re seeing a more significant drop due to sales activity. Below is the current chart for inventory from October 10th through November 5th where we’ve dropped just over 10% of inventory:

Driving this drop of course is in large part due to the season, a number of sellers take their homes off the market in the fall, or give up trying to sell, so inventory does drop some, however this time around sales have been increasing which has amplified the seasonal inventory shrinkage.

Pending sales however are declining slightly heading into November but I suspect a good deal of this can be attributed to buyers that aren’t finding what they’re looking for in the current inventory; I myself have a number of buyers that have seen everything out there that meets their criteria but just hasn’t interested them so they are watching new listings that come onto the market from the reports I send them.

Bank owned listings are on the decline in terms of the number of REO listings however as a percent of all new listing they remain relatively flat at around 7% which the number of sold bank owned homes remains completely flat and the percent of homes sold that are bank owned is dipping slightly from just over 10% in early October to just above 8% in early November.

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NAR to Lenders: Stop foreclosing, keep people in their homes or go short sale instead

Thursday, October 14th, 2010

Short sales are notoriously risky, unreliable and frustrating primarily because of how the banks are processing them; at a snails pace and often void of logic and reason. As Realtors in the Portland market we’ve seen more than our share of short sale transactions and we’ve seen a number of them go to foreclosure, list and sell for a price very close to a short sale offer that was on the property before it foreclosed, occasionally for more than the REO list price. This is doing a dis-service to everyone involved including the bank itself as it’s not cheap to foreclose on a home. The National Association of Realtors yesterday aired some grievances about the foreclosure, loan modification and short sale processes and have apparently been meeting with some of the largest banks to discuss these issues, like Bank of America, Wells Fargo and they have meetings scheduled with JP Morgan Chase and Citi. Read more about it here if you’re an Inman subscriber or here if you are not (yes, the latter is a blog, but it posted the article subscription free).

NAR would like to see more loan modification efforts on the part of the banks and if that cannot lead to resolution, a streamlined predictable and rational short sale process rather than resorting to foreclosure. One of the problems cited that we see often ourselves is that banks will not currently approve a short sale without a current offer on the property; this is primarily what takes so much time. As a result we are hearing about agents “ghosting offers” on short sales to find out what the bank will actually accept then advertising “bank approved at X price!” and these are indeed more desirable short sales to go after but it’s problematic at best that it’s come down to this. With NAR, we agree some sanity in these processes is needed and it’s good to see NAR and the mega banks out there meeting and discussing the issues.

Scott ~Your Portland Real Estate Agent

New Construction & Custom Built Homes in Happy Valley, Oregon is a win-win!

Monday, October 4th, 2010

Scott and I have sold alot of homes in Happy Valley, in fact we think it’s a fantastic place to invest right now as you can buy an amazing grand home with a view, level lot, great school and a great neighborhood all within in a few minute drive to the freeway.  We’ve watched Happy Valley’s housing market go through several changes, short sales, bank owned…. but what we are seeing as the current and growing trend is new construction homes for sale and they are selling fast.  New construction homes are not only competitively priced they are amazingly priced. Smart builders are picking up lots at great prices and passing the savings on to the home buyer. Not only does the home buyer get a new home, they get to chose finishes, make changes to the plans or even design their own.  What we are seeing in the way of resale homes is that the good ones are picked over and the ones left are beat up, distressed , on impossible lots, poorly constructed or attracting multiple offers. When going with a new constructed home you can move into the home you envisioned and not spend an abundance of time waiting for the right one to hit the market. Another advantage is that the home is taxed at today’s value, not a tax assessed value from 2005.

Happy Valley is hot right now, new construction is even hotter.  New home sales is our forte, call me for pricing, lots & plans! -Kristie McDonald, Your Happy Valley Realtor!

McDonald Group Real Estate Trends: It’s Still a Buyer’s Market in Portland

Wednesday, September 15th, 2010

The latest market report for the Portland Real Estate market shows a steady level of continued price reductions on homes for sale around the Portland Metro area. Back in August we talked here on the McDonald Group Real Estate blog about the Portland Business Journal article stating that thirty-two percent of Portland homes for sale in early summer experienced at least one price reduction, ranking  Portland No. 16 on Trulia’s list of price reductions in America’s 50 largest cities. Those numbers are sticking around.

A buyers market is one in which there are more homes available that there are people ready and willing to purchase them. With so many options to choose from in the Portland Real Estate market, buyers have the opportunity to pick up ridiculous deals on homes for sale in Portland that would otherwise be snapped up for much more. The buyers market means more options, lower prices, and higher competition amongst sellers, which makes homeowners and Portland real estate agents more willing to compromise and negotiate price reductions on all types of homes.

Signs of a buyers market in Portland are everywhere – this is the time to upsize or move into a more desirable area, as there are literally hundreds of gorgeous homes at rock bottom prices, including luxury foreclosures, high-end short-sales, bank-owned homes, and affordable listing prices on homes priced well below their previous market value. A balanced buyer/seller market has around 5 or 6 months of inventory. The Portland Real Estate market is currently just below 11 months. If you’re trying to sell a home in Portland, you’re going to need to price competitively and think about upgrades to make your house more attractive to the increasingly savvy buyers. The average sale price in the Portland Real Estate market is around $297,000 and homes for sale in Portland typically stay on the market for around 121 days. There’s really no good way to tell how long this buyers market will last, so be sure to take advantage of these record low prices, record low interest rates, and the amazing supply of affordable dream homes out there on the Portland Real Estate Market.

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Portland Real Estate Trends: Homeowners Slashing Prices

Thursday, August 12th, 2010

In a report published in the Portland Business Journal yesterday, we learned that thirty-two percent of Portland homes for sale, listed since the beginning of this month, experienced at least one price reduction. That ranked Portland No. 16 on the website Trulia’s list of price reductions in America’s 50 largest cities.

The average reduction for Portland homes was 9 percent, just under the national average of a 10 percent reduction on 25 percent of newly listed homes. With historically low interest rates, cutting-edge sustainability renovation rebates and low remodeling costs, and a high supply of beautiful homes for sale with great Walk Scores, this is a perfect time to grab a great deal.

As Scott McDonald of the McDonald Group said back in June, “We all know mortgage rates are low right now, but Freddie Mac really put a light on it by saying they are currently lower than they have been since they began tracking this data in 1971 and MSNBC.com states the last time they were this low was in the 1950′s. Yup, the economy stinks right now, but if you’re in a position that’s somewhat insulated from economic trends and are thinking of buying a home, now really is the time.”

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Wow! Short Sales are FINALLY breaking Loose!

Saturday, June 12th, 2010

Scott and I  have written alot of offers on short sales, few of them result in a happy ending….. HOWEVER, I’ve had 3 of them break loose in the last 4 weeks. What exactly does that mean? It means that you can write an offer on a short sale and with some patience you have a better than 25% chance of getting the home! (with a reasonable offer of course).

SHORT SALE CASE ONE:  We wrote an offer several months ago, there was already one at the bank and two in back up. The bank finally came back with a pre-approved amount and all offers before ours had either found another home and never withdrew their offer (until now) or had changed their mind.. leaving us in first position. So far we are moving forward fluently!

SHORT SALE CASE TWO: We wrote an offer on two different units in the same townhome complex….  one looked like it was going somewhere- could be promising and about a month later the other unit got it’s approval!  In this case there is a 3rd party mitigation that brought this was out of darkness; we expect to close in a week!

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Typical Short Sale Story- Limbo for Buyer & Seller

Monday, February 1st, 2010

Yep, this is a typical story. It’s amazing! I am always explaining these types of stories to buyers but it’s so hard to believe that the process is this awful!  There are “some” circumstances that will allow for a smoother process but in most cases your chances of pulling off a short sale are minimal. To make the short sale process worse, I frequently see listing agents that don’t know what they’re doing in a normal transaction let alone a short sale. IF YOU ARE SELLING SHORT, MAKE SURE YOUR LISTING AGENT IS A SEASONED SHORT SALE AGENT!  Anyhow, take a read at the Oregonian’s “Short Sale Leaves Homebuyers, Sellers in Limbo” .  -Kristie McD. Your Portland, Oregon Realtor!

Look at the price on that SHORT SALE! It’s too good to be true!

Sunday, December 13th, 2009

dealYep! It probably is.  Until an offer is received, the short sale process between the homeowner and the lender(s) cannot begin. In other words, the seller & listing agent need an offer, any offer, before they can turn in the initial packet required to get the process started.  You are likely being used; they just want your offer.

Let’s look at pricing. Firstly, agents and buyers know that short sales are a long shot regardless, so there must be a price incentive for the short sale to look better than the bank owned properties that can close in 30 days.  With this in mind, if a short sale were to be priced at a fair market value it would likely never generate that first offer, if a short sale home were “priced to sell” it may get an offer, if a short sale home was priced at a ridiculously low price (it doesn’t matter if the bank would even consider it or not) then you are certain to generate atleast one offer to get the short sale process started and likely even multiple ones!

So if you see a short sale in your price range that looks too good to be true, remember that the listed price may be the equivalent of an Ebay minimum bid, and the reserve price (what the bank will accept -if they accept anything at all) may be closer to that fair market value price. 

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Hey Short Sale Listing Agents Out There! HELP ME OUT would ya?

Tuesday, November 3rd, 2009

Short SaleI find myself having to call the listing agents of short sales all the time with the same questions, over and over and over. Even the “famous” ones (well they are the worst actually) do little in their listings to help me out (or other real estate agents for that matter). Please short sale listing agents, note answers to the following in the agent remarks of your listings so I don’t have to bug you!!!!! Every short sale is different!

  1. How many lenders are involved? (of course I would prefer to know that Countrywide isn’t one of them)
  2. How many offers do you currently have on the home?
  3. Has the seller already accepted an offer and sent it to the bank? If so will they send additional offers through or will they only allow one through at a time making additional offers backup only?
  4. Has your seller given you permission to disclose what the highest offer is?
  5. What is your rough guess for a bank response time? About 3 months or possibly more than 6?
  6. Has the seller already turned in the hardship package to the bank(s) yet?
  7. Do you think the bank will accept your list price or did you underprice it to generate offers? (okay, I don’t expect you to answer that one)

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Oregon Senate Bill To Help Homeowners Facing Foreclosure…. okay….

Thursday, October 1st, 2009

senateSenate Bill 628 is congested with too many words for me to read thoroughly but it “sounds” like all it is is a law that says that lenders must send homeowners a notice of clear instructions on who and how to can contact someone via phone or in person to discuss whether they would qualify for a loan modification. (We know that few homeowners will have the opportunity to meet with someone in person)

I know people that have started the process months ago with still no status… it’s a mess.  -Kristie McD. Your Realtor. :)

To read more about it check out the article on Koin News:  CLICK HERE

First time home buyers; time is running out to get your tax credit!

Saturday, September 12th, 2009

timeSo I was discussing with a client today when she should have a home picked out, negotiated and in escrow to ensure she gets the tax credit when I realized, we’re less than 3 weeks away from what I consider a safe bet, September 30th.

You may be thinking “wait, I thought November 30th was the deadline?”…It is, but in case you didn’t know you have to be closed on the transaction and have keys in hand by that date. Additionally lending / escrow usually takes about 30 days from the time that you make an offer, go through negotiations, inspections, lending requirements etc to close. Because of the expiration of the tax credit though we’re anticipating a last minute rush from first time home buyers and we’re seeing it starting now. What this means is it’s not just possible, but likely (and again, we’re seeing it already) that lending time frames are going to go from 30 days, to 45+ days and possibly even up to 60 days. So if you think you’re safe getting something in escrow by say October 25th; think again – the deadline would more than likely come and go while you’re in escrow and POOF, no tax credit.

What I see as a safe date is September 30th and the reason is that if lending time frames do increase significantly over the next few weeks being in escrow by September 30th would ensure you have a full 60 days to close…Now, obviously there’s a good chance you would close earlier than that, but there’s an equally good chance you may just barely close in time for the deadline too and wouldn’t you rather be closed with time to spare than find yourself having paid the $300-400 for an inspection and $400 for an appraisal just to find out that you are going to lose the $8,000 Uncle Sam would have given you?

Also, there is talk of extending the tax credit and speaking strictly in the realm of real estate (political views aside), we would like to see it extended; it’s moved homes for sure! BUT, we’re also hearing that since the economy seems to be recovering, slowly but surely, and the folks in Washington apparently have other things on their mind, they may not extend it; so this could be it.

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What we’re seeing: Market activity picking up, homes priced right are moving

Friday, May 29th, 2009

We’re seeing lots of new activity in the market and RMLS’ posting of Oregon and Washington lockbox activity numbers shows the increased activity:

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Heading into summer we normally see an uptick in activity, but we didn’t see such a significant uptick as we are seeing now last summer.

Competition is gaining in the market and while it’s still primarily bank owned homes and short sales priced to attract multiple offers getting the buyers, from what we’re seeing it doesn’t appear to be limited to the rock-bottom-jaw-dropping priced homes any longer; we’re seeing homes priced a bit closer to market asking prices getting multiple offers now too. To give you an idea of what I mean, when asking prices are around say $130 per square foot in a given area, listings that are priced around or under $100/psf have been moving fast for months and are usually bank owned or an occassional short sale. Now however, we’re seeing $115-$120/PSF getting multiple offers as well; it’s not a massive increase but we’re seeing it regularly now. Buyers a year ago weren’t across the board savvy in terms of going after short sales and bank owned homes, but they are now. The demand for “bank owned” and “short sales” (in quotes as they are obivously buzz words at this point) seems to be generating a lot more competition out there, at least from what we’re seeing.

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Short sales going away due to increased risk to seller?

Wednesday, May 27th, 2009

With short sales the seller is already risking getting a 1099 for the difference of what they owed ss-for1on the home and what it sold for after their “bank” approved the sale, this is known as phantom income. As such it’s standard practice for Realtors talking to a seller about selling short to advise them to speak to a CPA and/or real estate / tax attorney about the tax consequences before doing it…Well, it’s getting even more complicated now, apparently there’s a new trend of lenders beginning to require sellers to sign a note to repay that difference or they will not allow the sale; this is on top of the 1099.

With this double ding in mind it’s extremely likely that once sellers figure this out they are going to be more likely to do a deed in lieu of foreclosure or let the bank force them out on a standard foreclosure possibly resulting in, you guessed it, more bank owned listings. Of course this would not result in a surge of distressed properties on the market as it would just move from lots of short sales and bank owned to lots of bank owned and very few if any short sales and considering bank owned properties tend to sell a lot faster than short sales it could potentially soak up all that extra inventory faster? We’ll just have to wait and see what happens here but at the very least sellers considering selling short should consider the possibility of this happening before putting that for sale sign up.

Having to Sell Your Home Short? 7 Short Sale Legal Pitfalls

Saturday, April 11th, 2009
realtorFrequently I find myself at a listing appointment and find that the homeowner owes the bank far more than what their home will sell for. If they are needing to sell because they can no longer afford the home, need to move, etc. they will likely fall into a short sale scenario.  In many cases the homeowner will seek a second opinion, even a third or fourth. Unfortunately they may eventually find a Realtor that either doesn’t know better and takes an overpriced listing or “buys the listing” because they are hoping to generate new buyers/clients from the listing. Regardless, the homeowners can lose alot of time which is frequently the one thing they do not have.

EDUCATE YOURSELF:There are many things to be aware of if you are having to sell your home short and I was impressed with REALTOR’s recent article as it touches on many things a seller should be aware of and asking about. 

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Looking for Bank Owned Real Estate? Ask Me to HOOK YOU UP w/a Report!

Wednesday, April 8th, 2009

hookIf you are interested in seeing what bank owned properties are looking like out there, send me the area, zip code, school district, or whatever your area criteria is and I’ll shoot you off a report with pictures, addresses, etc…

I currently have myself set up to get a daily email of every bank owned (aka REO) home “just listed” in the Portland Metro and surrounding areas; I pay particular close attention to Happy Valley (Oregon) of course because it’s our Petri Dish and my stompin’ ground but it’s interesting to see what homes are popping up in all of the areas. It’s particularly interesting to see a short sale turn back up as a bank owned when you KNOW they had great offers that the bank should have worked with!

If you are interested in Short Sales I can do a report for those as well but the bank owned homes are usually priced REALLY well and they aren’t nearly as painful, time consuming and frusterating as the short sale.

Interested? Give me an area you’re curious about and I’ll set you up! -Kristie McD.  Your  “Everything. Portland. Real Estate”  Agent 

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Short Sales & Bank Owned -lenders requiring you apply for loan through THEM?

Thursday, March 5th, 2009

I have a link to an article below that is focused around this happening with short sales, but here in Portland I’m seeing it mostly with bank owned. What am I talking about? When a bank or lender (I’ll use Countrywide as an example as that’s the one I see the most often) lists a home with an agent it is not uncommon to see the words “buyer must be pre-qualified for purchase through Countrywide” in the listing. Many buyers (more…)

SHORT SALES Is there still room to negotiate? How do I write my offer?

Monday, November 24th, 2008

The climate of short sales in real estate is changing all the time.  You can usually count on a short sale home to be listed at a pretty great price, however many of our clients are asking “can I get an even better deal”?  My answer (more…)

Short Sales & Bank Owned in Happy Valley Oregon

Saturday, September 20th, 2008

Both my husband and I are realtors specializing in the Happy Valley area… short sales and bank owned is a way of life on the grand “Hill of Views”.  It’s no surprise the Happy Valley has established a reputation as Hill of McMansions, Short Sales and 1/2 built homes.  They over developed, the economy turned, and now there are an abundance of great deals for those who are able to invest. 

Good News?  GREAT deals to be had. Anything around (more…)

Happy Valley – What is Up With Those Short Sales and Bank Owned Homes Anyway?

Monday, August 18th, 2008

Happy Valley (Clackamas area just outside of Portland, Oregon) has created quite a stir for those buyers looking for a lot of square footage, new construction, a great deal, and maybe a view. It wasn’t long ago before our real estate debacle that builders were racing to build extravagant homes on the grand hillsides…. Now, they are desperate to sell them. Happy Valley is now overwhelmed with bank owned homes, short sales, and homeowners trying to sell at the same discount prices as their neighbors; quite frankly it’s a mess. For the home buyer it’s a super clearance sale at Macy’s. (more…)