Sales are moving at a snail’s pace and frustrated sellers may weather the storm easier by taking their home off the market and doing that temporary fix.  Remodeling.

Updating an existing home may curb the sale for a year or two while our economy corrects and stabilizes.  Home sales will pick back up and what owners need to keep in mind is that prices are all relative.  When sale volume picks up, so will price of both the existing residence and the next purchase.  Remodeling can be one of the best ways to protect your Portland real estate investment and get you through a bumpy economy, provided it’s done correctly.

Follow a few simple guidelines and recapture of costs will be there.  Check out the following:

• What are the Joneses doing?  Consider the neighborhood.  Has everyone else already updated or are you going to be the first?  Add square footage that matches the neighborhood.  Small houses carry higher $/ft, larger ones mean lower $/ft.  If yours is big for the area don’t add on.

• Kitchens and bathrooms are the big hitters.  Don’t neglect the rest of the house completely.  Eliminating the textured 80′s blue carpet in bedrooms is a given…

• Square peg, round hole. When renovating or adding on, avoid too much customization of space so potential buyers can envision the home suiting their needs. A well-designed fourth bedroom to you could be an office, workout room or home theater for someone else.

• Put a Band Aid on it and paint.  No cheaper way to update.  If you’re not sure what colors to use check out builder’s model homes.  They are cutting edge in design and finish!

• Don’t put a $30,000 kitchen in a $200,000 home.  Going overboard is not the goal and if there’s an awesome kitchen it better be attached to an awesome house for best recapture of cost.

• How’s the curb appeal?  Neighboring houses are dragging down the top dog.  Top dog brings up value of the one with a weedy front yard.  Curb appeal is easily accomplished by manicuring the front to look inviting but you don’t need to hire a landscape architect in most cases.

There are no guarantees that you’ll recapture 100% of every dollar spent.  Furthermore, how would you ever gauge it?!  Careful planning will take your remodel dollar the furthest and help you sell much quicker!  For more Portland real estate investment tips check out the website.  www.maxwellsinclair.com

Metro Portland Area	Yr to date Avg Price	Avg Mkt Days	Avg Appreciation
North Portland	$266100	120	0.1%
NE Portland	$322000	98	0.5%
SE Portland	$276800	109	-3.1%
Gresham / Troutdale	$260700	128	-6.4%
Milwaukie / Clackamas	$322200	155	-4.6%
Oregon City / Canby	$316300	172	-5.6%
Lake Oswego / West Linn	$543300	182	0.4%
West Portland	$480700	145	4.2%
NW Portland / Washington County	$404900	152	-1.7%
Beaverton / Aloha	$274900	155	-4.8%
Tigard / Wilsonville	$354200	144	-4.8%
Hillsboro / Forest Grove	$280300	124	-5.9%

Data: December 18, 2008

Source: RMLS Area Report Metro Portland & Adjacent Regions

Dave’s Commentary on the Portland Real Estate Market:

Portland’s real estate has seen a dramatic change over the last few months. RMLS numbers now reflect a 15 month supply of available homes for sale throughout the metro area. Sellers are averaging 135 days to get their homes sold. Buyers are loving this!

Sellers who are not upside down in their house have a tough battle, competing against neighboring short sales and a relatively small percentage of foreclosures. Entry priced homes are commonly selling short of what’s owed and this affect trickles uphill into higher end properties. Luxury homes in areas like Lake Oswego are deeply discounted and not immune to similar circumstances. Bank owned properties can be picked up cheap!

What does this mean for the average homeowner in Portland? Don’t sell unless it’s absolutely necessary. If you do have to sell price it 5% lower than the competition and it’ll move. Currently homes are selling at a rate of about 40 per day. Sellers must be aggressive!

Buyers are able to reap benefits of today’s incredibly low interest rates. FHA borrowers can get a historical low of 4.5%. Conventional mortgage rates are the same as of this writing. If loan-to-value (LTV) is 60% or less it’s possible to lock in 4.375%. Wow!!

Interestingly enough guidelines have changed for investors. Fannie and Freddie underwriting requirements only allow a total of 4 mortgages, 3 investments. Makes it tougher for those who would love to take advantage of the buyer’s market and already own several properties. Good news is that there’s no shortage of Portland investment property with upside potential and cash flow is better than ever.

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home in anywhere in the Metro Portland area, use our FREE Portland Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

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If you work with buyers and sellers year after year you’ll see patterns develop.  Similar phrases come from each party repeatedly.  Some of my favorites come from sellers.  Recently I dealt with another Beaverton Oregon home for sale where I was representing the buyer.  The listing agent and myself had several conversations, many of which entailed hearing about seller perspectives.

Sellers are usually after just one thing; Making the most money possible from their sale.  There are several points to keep in mind considering the condition of Beaverton’s real estate market (and Portland’s).  First off, look at what’s available for the money in similar neighborhoods close by.  Buyers will compare pricing in several locations.  Rarely do I find a buyer that says “I must live on Primrose Street.”  Just doesn’t happen.  Second, sellers, buyers don’t care what price a seller “needs” to get out of his house!  Can’t emphasize that enough.

The particular house my buyers and I looked at was in the Aloha section of Beaverton and priced fairly reasonably by comparison to what else was available on that particular street.  However, a quick look just a few blocks away revealed similar homes available for a lower price/ft.  Pricing of homes around Portland Oregon is more competitive than ever.  When evaluating price we took into consideration these factors:

• School performance
• Exterior and Yard condition
• Neighboring property conditions
• Interior options/finishes
• Road noise
• Tax data
• Future development
• Appreciation/depreciation of Portland Real Estate Values

Pretty common evaluation approach.  After reviewing such we came to the conclusion that this particular Beaverton house was overpriced by about 10%.  One year ago it would have been right on target but with today’s economy and what’s happened in Portland’s real estate market adjustments need to be made.

The seller came back with a counter offer that closely split the difference between what he listed it for and where the buyer’s offer came in.  Buyers chose to walk away.  My forecast is that Beaverton’s prices will slide another nearly 10% before all is said and done.  That seller is going to end up really close to our original offer (seen as market value, not a lowball price), if he sells at all.

Sellers, when you get a bite don’t let the fish get away in this market!  For more Portland real estate tips check out the website www.maxwellsinclair.com