Many Buyers are asking about bank owned or REO properties.  We do have them in small numbers as is shown by last months sales with 7 closings of bank owned homes.

There are persistent rumors floating around the industry that the banks are ready to begin liquidating a large inventory of foreclosed homes.  This is not likely to happen as the economists predict that any large number of distressed properties entering the market suddenly would devalue the entire market and create a severe economic downturn.

Stay in touch with your broker as new listings are coming on everyday and with interest rates remaining low this is a terrific time to invest in Coastal real estate.

This Toledo area mini-farm on a creek sold in March.

March was very active in most categories of Coastal Real Estate.  Average sale prices are going in an upward direction which is good news for Sellers.  At the same time Buyers are finding a wider selection of homes and land in most price ranges.  Our market reflects the trends we see in other areas as more Buyer traffic is attracted to our market when homes are sold in areas such as the I-5 corridor.  An interesting trend is beginning to show here as investors are active in the rental investment market.  Single family homes are attractive to Buyers as the demand for rental properties by tenants  is ahead of the supply.  This is a great time to be looking at Coastal Real Estate. So come on over.

Site built single family residences are staying on the market for an average of 7.26 months or 218 days.  This relates in part to more accurate pricing and better preparation before listing as Sellers become more convinced of the need to have a home in market ready condition at listing time.

As previously stated in this blog, accurate pricing is the key to attracting Buyers. The days of over pricing in hopes of negotiating a true value offer are pretty much over.  With Internet marketing at our fingertips, Buyers are able to complete wide searches prior to actually setting foot in any properties.  The overpriced or poorly presented homes are eliminated from the Buyers search early on.

One additional factor is in play here and that is distressed properties such as bank owned, short sale and bankruptcy.  They are tending to move faster than standard properties and are selling for a slightly higher percentage of list to sale prices.  Probably due to more accurate pricing as lenders are starting to improve the approval process and are willing to do  a better job of pricing up front.

Now is a great time to check out real estate on the Oregon Coast.

Good time to be in touch with your real estate broker if you have the means and desire to go after bargain priced properties.

Investors from the US and Canada are beginning to let their presence be known in our market. They are searching for properties that make sense as month to month rentals. These will probably be “flipped” after two to three years.

Now is a great time to be shopping for real estate on the Oregon Coast.

• pricing is accurate
• corners are clearly marked
• utilities are either installed or readily available

Land sales are usually cash transactions as lenders are very reluctant to loan on vacant land. Overall the best buys are appearing in the ocean front and good ocean view segments. Now may be a great time to find the perfect buy here on the coast.

An prime example of a site built home which sold in October.

Toledo Oregon home sold in September 2011

The Coastal real estate market remains steady if not exactly vibrant with homes that are priced for the current market getting plenty of activity and offers. As always there is a vast difference between the price the Seller would like to have and the price a qualified Buyer is willing to pay. The average 9 month list to sale ratio is at 93%. This indicates a movement toward more realistic pricing than in the past. Days on market has increased to an average of 214 days or just over 7 months.

The selection of properties continues to increase on a daily basis with homes and land showing up in all price ranges and locations. This would indicate a strong market for qualified Buyers. The home pictured is one located 9 miles inland in Toledo and represents a segment of the market that appeals to people who wish to enjoy a little warmer climate for gardening and yet be within 10 minutes to the beach. If you are looking for a primary residence or second home just send me an email or call. I would be delighted to assist in your search.

Home sold in August.

Activity on the Coast maintained well in August.  Selling prices appear to be holding at a ratio of 95% of list to sale price for site built homes. This reflects a serious adjustment on the part of Sellers who have decided to have their homes marketed rather than have them on the market.  Average sale prices hovering around $220,000 are representative of the highly sought after vacation and retirement home Buyers.   Sales of bank owned and short sale properties have dropped off significantly.  This appears to be more a matter of lenders holding properties off the market rather than any shortage of inventory.  As the lending industry remains in a state of flux it could be years before distressed properties, at least in this area become a major part of the sales process.

As always, a Buyer who wants to fufill their dream of living on the Oregon Coast, is well advised to connect with a local broker who is seasoned and experienced to act in their behalf.  If you would like to examine the options please give me a call or send an e-mail. You will be pleasantly surprised.

This luxury oceanfront property can be yours for the low, low price of $900,000! (Ok... so this is a bit of an exaggeration, but you get the point.)

Most real estate professionals agree that the most costly mistake a Seller can make is to over value their property whether it is a home, land or business.  Many Sellers are still tempted to overprice the property by several percentage points in order to “have room to negotiate”.  This thinking has several serious flaws that will, if the property eventually sells, result in lower selling prices and added stress.  Following are the most obvious reasons to avoid inflated pricing:

1. Appraisal Problems.  Even if a Buyer shows up who is willing to pay an inflated price, the fact is that 90% of Buyers use financing.  If the home does not appraise for the purchase price the sale will most likely fail.
2. Reduced Showings.  Today’s Buyers are usually well informed about the local real estate market.  If a property is overpriced, they won’t bother looking at it much less make an offer.
3. Price Point Identification.  When a new listing hits the market, every broker will check out the property to see if it’s a good fit for their clients.  If the property is noticeably overpriced, gaining the interest of brokers and Buyers will be very difficult.
4. Why Help the Competition?  Lower priced competing homes will be much more attractive and result in the very discouraging appearance of SOLD signs on your neighbors properties.
5. Time on Market.  A property that sits on the market raises the question of “what’s wrong with it?”
6. More Difficult Negotiations.  Buyers commonly ask how long a property has been on the market and use this as a negotiation tool to gain a better price especially if the price is inflated to begin with.
7. Opportunities Lost.  Most Buyers begin their search with a budget, usually in the form of a pre-approval letter from a lender. Working within this price range will see only those properties that fall within the range of their budgets.

The average number if properties viewed prior to making a buying decision is 10-15.  A competitive price relative to the competition is an essential component of any marketing plan.

If you have a property you would like to sell or are interested in buying please contact me so that we can work out a personalized plan that works for you.