Sizzling Summer is Tricky for Buyers

Things are really starting to get healthy for this real estate market. For the last 18 months I have been talking about how the bottom has really gained traction. The entry level market transitioned to a seller's market a little over a year ago locally. I have said that a healthy bottom will feed growth to the middle and then up to the top. Thus, summer 2014 looks strong for the middle market as well. Even the lower part of the top of the market $500k-$750k is seeing much needed activity. High end homes are still a buyer's market but things are starting to equalize. Under $300k is a solid seller's market.

I have noticed that many buyers have not quite made the transition with the market. Some buyers are still out there making low ball offers on well priced entry level homes. From late 2009 till mid 2012 buyers could really beat up a seller on price. That ship has sailed my friends. Buyer's in the under $300k market, (notice how I am saying under $300k now instead of under $200k like I said last year), will need come in strong with offers on well priced properties. It is imperative that buyers find an agent they like and trust.

There are some overpriced listings in the market. Some sellers are trying to squeeze a little extra out of the hectic environment in the entry level to low-middle market. A good Realtor® will be able to identify an overpriced listing and convey an opportunity to go soft on price. That same agent will caution a buyer to come in strong when the property is well priced.

I have worked with buyers recently that failed to follow my advice and lost out on great opportunities. These were buyers that were either referred to me or ad calls. They didn't know me yet, so they had not built up a high trust level yet. There was one particular instance in which the buyer refused to pay full price. The home was listed well under 200k. There was literally a conga line of buyers walking through this house. We had to wait in line to view it and others were waiting behind us. That my friends should be your first clue! The buyers loved it. They even brought the whole family to check it out. They needed help with closing costs so I advised them to come in $5k over asking and then ask for a seller paid closing cost credit back to full price.  They could not bring themselves to pay full price. They offered $3,000 over with $5,000 back. There were four offers and none of them netted the seller the full price (all were close) and the listing agent told me they were steadfast on getting net full price. An opportunity for highest and best went out to all bidders. I told my buyers they have a rare second chance but now they would need to come in even stronger. $7k over with $5k back. They held firm with their original offer. They did not get the house. Had they offered the $5k over with $5k back the first time around, they would have got the house. The seller would have taken it because it netted the full priced and the other four offers did not. Once it went out to highest and best the seller ended up getting more than full price. Some buyers need to get kicked in the teeth a few times before they realize that the market is brutal and there are more buyers than sellers in the under $200k price range.

As I mentioned above, their are some overpriced listings even in that coveted sub $200k range. I have another buyer that is in contract on the townhouse I listed for him. I know this young man well and we have a strong trust among us. I sold him that town house a few years ago. He has been struggling to find an ideal home. There was this one house that we looked at that was just a bit overpriced $198k. Great little house, nice location but operative word is "little". After beating the streets for several weeks we came back to the overpriced listing. The buyer really liked the house it had everything he wanted and needed but at $198k it was just too spendy. I told my client we have an opportunity to squeeze the seller on this one. We came in net $10k under with an offer of $192k with $4k in seller paid closing costs. Seller countered two grand higher and we are in contract!

There are many fine real estate agents out there that understand the market. Buyers are well advised to talk to several potential agents and choose the one they feel is looking after their best interests. There are also a lot of lazy agents that don't want to take time to show homes. Buyer's should not hire a pushy or lazy agent. When they find an agent that will show properties and identify the overpriced properties from the well priced properties, they should stick with that agent. The biggest takeaway should be this; when a buyer finds a house they really love...their dream house, if you will, they ought not take a risk with a soft offer, come in strong and get that house!

Take a Look at Washougal

Sometimes I like to focus on a neighborhood in the area and since I just wrote a piece on Washougal on my "View" blog I figured that would be a nice neighborhood to address today. Washougal is immediately adjacent to Camas and shares with that community many shopping areas and services. The two cities are symbiotic and yet rivals at the same time. Camas has become rather affluent over the last 15 years and prices in that city have gotten out of reach for many middle income people. Washougal however remains a relative value.

A common perception about Washougal is that it is far away. It isn't; and I talk about its proximity in the blog post below. Washougal offers some amazing view properties and a great variety of upscale homes that are generally priced 15-25% less than rival Camas. Washougal also offers a nice selection of vintage homes and smaller starter homes and with prices that remain affordable in this increasingly more expensive housing market.

Washougal is a classic small town that is big enough to offer the daily services of a larger city without losing the charm of rural America. Washougal is also very close in to all the "big-city" services of Vancouver and Portland.

The blog post below was re-posted from my blog, "Enjoy the View" take a look at it below and see that Washougal has much to offer.

Washougal offers some fantastic view properties and some of them are surprisingly affordable. Washougal is also one of those places that some people "think" is far away. The reality of it is this; it isn't. In fact, according to Mapquest, at 10:15am this morning a trip to PDX from downtown Washougal is 17 minutes. The drive is less than 15 miles! How in the world is that, "Far Away"? The answer is; it isn't.

In all fairness Washougal actually covers an enormous area once you get out of "town". There are places up in the mountains with a Washougal address that are easily 20 minutes to town. Even still, any location in the "country" is likely to require a bit of extra driving, it is the price one pays for the seclusion afforded to country living.

There are two Washougals. The city of Washougal which offers up some fantastic Columbia River view properties that rival the much more expensive Prune Hill in Camas. These homes are less than 20 minutes to the airport. Then there is rural Washougal. Here you will find a virtual cornucopia of small acreage properties across a variety of price ranges. many of these properties feature a fantastic view. The views range from Columbia River Gorge, Mount Hood, to Portland city, and across to the Coastal Mountains.

Washougal offers opportunity at many elevations as well. The city properties are typically under 600 feet so the winter conditions are mild. Some of the rural areas approach 2000 feet where Christmas is truly a winter wonderland. It is hard to find an area that offers as much diversity in view property as Washougal.

Washougal and Camas are immediately adjacent to each other. They share a common business corridor along 3rd Street / E Street. Washougal however offers generally lower property taxes and lower housing prices overall. This can spell value for the savvy shopper.

As a note of caution for buyers looking in the area, be sure to pay attention to just how far out a property is. I know I just spent a paragraph explaining that Washougal is not far away, but I also noted that the rural portion of Washougal is very large. If the property is located along Washougal River Road mile marker nine is the approximate point at which you enter Skamania County. It is a fifteen minute ride back into the heart of Washougal from that point. Belle Center Road along SR 14 in the Gorge is about eight minutes out of the center of town (Washougal). Even if you head all the way out to the Mercantile Store at mile marker ten Mapquest says it's 25 miles and 35 minutes to PDX :)

We are so spoiled here in Clark County Washington. Our out of the way destinations are still only half an hour out!

So come out and visit Washougal and when you do, be sure to Enjoy the View.

The Modern Hipsters Dig those Oldies

The hipster movement has become its own antithesis lately. Those counter-culture, thrift store shopping people in our community tend to reject the mainstream view of what is "popular". These people have sophisticated views about the world that often run counter to the force fed ideas of the commercial side of America. That said they have become such of force that some of their ideas have seeped into the mainstream. It is a bit ironic that some of the hipster culture has become the very thing they shun. Hipsters therefore are difficult to gauge. What is trending in that sub-culture now may become too trendy for them to continue their support.

So what do we call the mainstream hipster copycats? BUYERS! Hipsters were running around in places like Williamsburg, New York, San Francisco and yes Portland too, buying up old houses. They found an appeal in homes that were functionally obsolete but offered amazing detail and craftsmanship not seen in mainstream modern homes. These older homes were often bordering on dilapidation, but the hipsters came in and fixed them up.

Now the older homes are beginning to see a turn around in popularity and we have the hipsters to thank for it. I have always enjoyed the charm and attention to detail in pre-war housing. Every home built back in those days was trimmed out by a local carpenter. So no two homes are quite alike. Even homes that were modest in size had detail that rivals expensive mansions of today.

The downside to all this hipstermania is that these older homes are now priced out of reach for most people. Over in Portland prices on the modest older pre-war homes have skyrocketed to more than $300,000. Here in America's Vancouver the same has happened in the Arnada and Shumway neighborhoods of Downtown and Uptown. But fear not buyers, there is still hope. This renovation craze has spilled into neighborhoods that were once in disrepair. These areas are becoming or have become quite nice and remain a value in the marketplace.

One such area locally is Rose Village. Rose Village is filled with pre-war masterpiece homes varying in size from a tiny 600 square feet to larger plans approaching 2000 squares. Rose Village neighborhood is part of the larger Rosemere district. The section now called Rose Village was under a renaissance or sorts in the mid 2000s that stalled out when the market crashed in 2009. Now the revival is back. This neighborhood is an eclectic mix of these fasinating older pre-war homes. I listed a centennial home on 33rd and V street that is spectacular and priced at just $208,000. Don't give up on your dream, it is still out there waiting for you. You just have to widen the horizon a bit :)