Angela Pernisco

The latest Market Action report, which is provided by PMAR (Portland Metro Association of Realtors), came out today with statistics for the month of September. According to this report, market activity continues to slide, however, not as significantly as it has over the past few months. Additionally, we are seeing a 15% decrease in new listings from last year which is an indicator of lack of market confidence. Based on the current rate of sales and number of homes to sell it would take 10.4 months to sell all of the inventory on the market.

We continue to see a decrease in price as well with the average Metro area price down 5.6% and the median home price down 5.8%. Fortunately, we are not looking at double digits as many other states have experienced. The average market time is 129 days.

There is positive news however, some areas are still appreciating in value according to the report. The following areas are up: North Portland 2.7%, Northeast Portland 2.1%, Lake Oswego/West Linn 5.4%, West Portland 6.8%, and Northwest Washington County 0.4%. Southeast Portland experienced the highest number of sales (32) in September depreciating 1.5% yet Northeast Portland was a close second with 23 sales and appreciated 2.1%.

As I have said many times over the past weeks, now is an excellent time to purchase! Interest rates have once again dropped below 6% and home prices are low!

Let me begin by apologizing. I have been in Real Estate for nearly 8 years now and when I sit down and talk with sellers about the sale of their home we talk about marketing, staging, curb appeal, etc. I have just realized that we have not said a word about what you are paying for! I know what you are thinking, "the marketing of my home of course," but you are wrong. Yes, marketing is important but any relatively savvy agent can find out where the best places to advertise your home are (and it is not the newspaper), any agent who has done more than a couple of transactions can give you a few lessons on advertising and wording, any agent who has been through more than 50 houses can tell you a little bit about staging...

"Well, if its not marketing, staging or curb appeal, then what am I paying you thousands of dollars for?"

To get your home sold of course! You see, someone is going to fall in love with your home regardless of who you choose to represent you. The question is: at what cost? You need a negotiator, not an "agent".

The definition of "agent" is: One empowered to act for or represent another. Or, a means by which something is caused. This is a very passive role.

The definition of "negotiator" is: to succeed in accomplishing or managing.

It is not my job to simply bring you the offer that another agent has written on behalf of their buyer and ask you to make a decision on whether or not you will accept that offer. I must know the market and any changes that have occurred in the past week (not just month) and educate you on these changes, I must be aware of any costs relating to known negotiable items (roof issues, carpet replacement, etc.) and discuss them with you prior to any negotiation has begun so that we have a plan of attack, and I must know how to ask the right questions of the other agent in order to determine the buyers motivation and reason for purchasing so that we have a strategy. Once I have this information it is my job to show the buyer why they should purchase for the price you are asking or close to it, help the buyer to understand why you will not make some or all of the repairs that they are requesting, ensure that you have enough time to move after close of escrow...

As Real Estate agents we spend so much time talking about the method of getting your home sold that we completely forget to tell you that you are actually paying for the process of getting your home sold.

The sale of your home is an emotional process and a negotiator is what you need, not an agent!

There are many Real Estate myths, common misnomers and unknown facts circulating about Real Estate. Some of these concepts go as far as contradicting themselves. How does an intelligent consumer sift through all that they are fed to get the real scoop? Many first time buyers are overwhelmed by the number of "knowledgeable" friends and family members who want to help them to make good decisions. Unfortunately, many times Aunt Ida's advice is contrary to Brother John's advice which is the complete opposite of co-worker Sally's advice.

Some of the concepts I would like feedback, questions and comments on are:

•· "You will save money by skipping the buyers agent"

•o Actually, commissions are typically negotiated when a home is initially listed whether a buyers agent is involved or not so not only is the listing agent getting paid more, you leave yourself without someone representing your needs and negotiating on your behalf.

•· "Mortgage Brokers are more expensive than going directly to the bank"

•o Actually, Mortgage Brokers have access to thousands of avenues of financing where the bank only has their in house packages. You may pay less in the short term on fees but you may pay much more in the long run.

•· "It is best to purchase when the market has hit bottom"

•o When does that actually occur? Typically, we know that market has hit bottom once prices begin to go up (meaning you have missed bottom). Interest rates will likely climb during this time as well so your savings, if any, will be minimal. In this market, the best time to buy is now!

There you have it, a few examples of what I am looking for. I would love to hear your thoughts and questions about circulating rumors!

Sometimes I wonder where the media comes up with its content. In case the general population is not anxious enough about our countries state of affairs we have people running around saying "the sky is falling, the sky is falling!"

The reality is: there are plenty of loans available. Yes, you do need to have a job in order to get a loan and chances are you are going to have to put some money down in order to purchase the home. FHA (First Time Home Buyer or anyone who has not owned a home in the past 3 years) is perhaps one of the best loans for buyers who fit the criteria. This loan offers low interest rates, 3% down payment and assistance with closing costs. There are also a good number of conventional options available for move up buyers and self employed!

Next time you hear a story that sounds a bit like Chicken Little, call me. I am happy to discuss any questions or concerns that you may have about the market... even if you don't plan on buying or selling in the near future!

I have to wonder where the belief began that the only great deal in Real Estate is a bank owned property. Granted, the bank does not want homes sitting on their books endlessly, however, they are not so desperate that they are going to sell it for pennies on the dollar. I often find that typically one of the first questions a new buyer will ask me is: "do you have any bank owned properties?" Do you know how I answer? "Why is that important to you?"

Interestingly, as I drive around previewing homes and showing clients I am seeing much better pricing in the private sector. I realize that the media purports the numerous people who are upside-down in their homes, many of which are handing their homes over to the bank. However, there are just as many people who simply want to move. They have lived in their homes for several years, have equity and have priced their homes to compete well on the market. As I see it, these are much better deals than arguing with a bank who is trying to minimize their losses. The other interesting point in this is that the sellers of homes with equity tend to be much more realistic with negotiations and show more willingness to make repairs if necessary.

The way I see it, with a high inventory of homes there are plenty of ready, willing and able sellers available that are much more negotiable than banks!