CURRENT PORTLAND METRO REAL ESTATE STATISTICS - by EVAN
Average price per square foot for Portland OR was $243, an increase of 11% compared to the same period last year. The median sales price for homes in Portland OR for Aug 15 to Nov 15 was $332,000 based on 3,391 home sales. Compared to the same period one year ago, the median home sales price increased 4.7%, or $15,000, and the number of home sales increased 10.1%. There are currently 1,930 resale and new homes in Portland on Trulia, including 151 open houses, as well as 415 homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The average listing price for homes for sale in Portland OR was $465,167 for the week ending Nov 04, which represents an increase of 2.4%, or $10,940, compared to the prior week. Popular neighborhoods include Northwest District and Powellhurst - Gilbert, with average listing prices of $635,600 and $235,453.
THE "FSBO" OPTION AND WHY IT IS A POOR OPTION FOR BOTH SELLERS AND BUYERS...
...AND EVEN A "FSBO" COMPANY CEO USED A TRADITIONAL REAL ESTATE COMPANY - by Mick
...AND EVEN A "FSBO" COMPANY CEO USED A TRADITIONAL REAL ESTATE COMPANY - by Mick
Are you a fan of any of the realty TV shows featuring million dollar listings? Do you wonder why the owners of those expensive homes would pay to have a professional sell their home instead of selling it themselves, even though many of those people are high level businesspersons, property developers, and even attorneys. It's because they understand the value of paying a professional to negotiate for them, either as a buyer or seller. Even though the commissions on these multi-million dollar homes is very high the owners feel that the value a professional realtor brings to the transaction is money well spent and here is why they feel that way:
* The main motive for trying FSBO is that there is the idea that you will sell your home for the same price or to be really competitive and sell under market value and keep the money that would have been paid out as commission. What they do not realize is that the main reason buyers look at FSBO properties is that they also think they can get a better deal because the first thing they will do is take your price and deduct the amount you would have paid out in commission when making an offer! I know this is true because I purchased a FSBO home myself several years ago and I paid way under market value, in fact I got such a good deal I literally could not pass it up and I still own that home today. If you have already priced your home below market value to compete with the marketing of a professional realtor and then you deduct some portion of the savings on commission fees during negotiations you can very easily end up less less net proceeds and you also will have to deal with all the transaction requirements as well.
* Sellers beware: you are at risk of being sued if there is a problem with the transaction or the property. Are you aware of all the disclosures you must provide to a buyer? Are you aware of all the laws associated with real estate transactions? What if a problem with the property is discovered after the sale, do you understand your liability in this situation? Do you know the possible legal consequences you could face? And also remember ignorance of these laws will not excuse you in a lawsuit. And if the [smart] FSBO buyer has an attorney representing their interests you will likely want to secure an attorney as well and this of course will be a fee to you. The combination of the proceeding situations could easily bring your net sales proceeds well under what you may have gotten using the services of a realtor and you have to do all the work yourself.
* Buyers beware: If you are not experienced in evaluating the actual condition of the property and the seller does not provide full disclosure you may have to seek legal counsel to recover your losses. If you are not familiar with the contractual documents required in a home sale you may get yourself into a situation where you have to forfeit your earnest money or have to sue to recover it. This could tie up your money and prevent you from purchasing a home until it is cleared up. My advice to a FSBO buyer is to hire an attorney to protect your interests, and those services will be an out of pocket cost to you. Actually my best advice is to use a Realtor.
* Sellers - do you understand that you will not have the support of the real estate community to sell your home? Since a FSBO property does not pay commission there is absolutely no incentive for a realtor to bring a buyer to your home. You will be on your own to find and negotiate with a buyer.
* FSBO sellers usually decide to go this route after reading claims of FSBO companies online and then purchasing services offered by them to assist in this endeavor. After you have paid for their services and you later decide to use a realtor you have spent money and personal effort [and remember your time has real monetary value] that you will not recover.
*In my opening paragraph I make the statement that business savvy people understand the value of the real estate professional and have no issue paying for that service, and here is a real life example of that fact: A national FSBO company CEO contracted with a traditional real estate company to sell his own home. Below is a snip of the original article that appeared on the www.heraldtribune.com website:
* The main motive for trying FSBO is that there is the idea that you will sell your home for the same price or to be really competitive and sell under market value and keep the money that would have been paid out as commission. What they do not realize is that the main reason buyers look at FSBO properties is that they also think they can get a better deal because the first thing they will do is take your price and deduct the amount you would have paid out in commission when making an offer! I know this is true because I purchased a FSBO home myself several years ago and I paid way under market value, in fact I got such a good deal I literally could not pass it up and I still own that home today. If you have already priced your home below market value to compete with the marketing of a professional realtor and then you deduct some portion of the savings on commission fees during negotiations you can very easily end up less less net proceeds and you also will have to deal with all the transaction requirements as well.
* Sellers beware: you are at risk of being sued if there is a problem with the transaction or the property. Are you aware of all the disclosures you must provide to a buyer? Are you aware of all the laws associated with real estate transactions? What if a problem with the property is discovered after the sale, do you understand your liability in this situation? Do you know the possible legal consequences you could face? And also remember ignorance of these laws will not excuse you in a lawsuit. And if the [smart] FSBO buyer has an attorney representing their interests you will likely want to secure an attorney as well and this of course will be a fee to you. The combination of the proceeding situations could easily bring your net sales proceeds well under what you may have gotten using the services of a realtor and you have to do all the work yourself.
* Buyers beware: If you are not experienced in evaluating the actual condition of the property and the seller does not provide full disclosure you may have to seek legal counsel to recover your losses. If you are not familiar with the contractual documents required in a home sale you may get yourself into a situation where you have to forfeit your earnest money or have to sue to recover it. This could tie up your money and prevent you from purchasing a home until it is cleared up. My advice to a FSBO buyer is to hire an attorney to protect your interests, and those services will be an out of pocket cost to you. Actually my best advice is to use a Realtor.
* Sellers - do you understand that you will not have the support of the real estate community to sell your home? Since a FSBO property does not pay commission there is absolutely no incentive for a realtor to bring a buyer to your home. You will be on your own to find and negotiate with a buyer.
* FSBO sellers usually decide to go this route after reading claims of FSBO companies online and then purchasing services offered by them to assist in this endeavor. After you have paid for their services and you later decide to use a realtor you have spent money and personal effort [and remember your time has real monetary value] that you will not recover.
*In my opening paragraph I make the statement that business savvy people understand the value of the real estate professional and have no issue paying for that service, and here is a real life example of that fact: A national FSBO company CEO contracted with a traditional real estate company to sell his own home. Below is a snip of the original article that appeared on the www.heraldtribune.com website:
By using the services provided by his FSBO business he could have given credibility to the claims made about the FSBO process. Instead he has given credibility to the traditional professional real estate industry. And even more amazing is that Al now works as a traditional real estate agent for a national real estate brokerage company! His website is http://www.bennatisbest.com/