August Market Stats

The statistics for the last month are out and we can break down the numbers. The market is continuing to slow down and steady out through the entire Portland Metro. We are still seeing multiple offers in certain area, but for the most part things are selling for about asking price after sitting on the market for a week or more. If you want the full break down, read below!

Overall we saw our numbers drop slightly across the board. Less homes came on the market than in July, less homes sold, and the average sale price fell from $466K to $462K for the metro area. However, the average sales price is still up from last august, so we are still appreciating, just very slowly.

We see less and less inventory come onto the market every year, but the drop off happened sooner this year than it did in previous years, we usually expect a strong market through September with new listings dropping off for the holidays. I think a large reason that we are seeing less and less homes on the market is due to the huge inventory we had at the beginning of the year. The media has been speculating about a recession for quite some time and that spooked sellers into selling early on in the year.

There are still lots of people buying and selling homes so make sure you choose a professional that can help you easily navigate the changing market. Please leave us a comment or send us a message if you have any questions!

If you are thinking of buying, we would love to talk you though how these numbers specifically can affect you. If you think you might want to sell, we would love to come chat with you! If you want an instant home evaluation you can click here!

Talk to you again soon.


The cost of Instant offers

No doubt you have heard about open door at this point, but Zillow and Amazon also have programs that allow you as a home seller to get an offer without any showings or contingencies. Check out the full video for all the details!

It is terribly convenient to just sell your home to an internet company. As they say on their commercials, there are no showings, no contingencies, and you get to look over the pricing details before you make a decision. If this all sounds too good to be true, it’s because it usually is.

These companies are in the market of buying homes to make a profit when they re-sell them. This means you are selling your home for less than you would get if you listed it with a realtor almost every time. They want to pay wholesale for your home, do a couple repairs, which likely means paint, and then they re-list it at the price it was worth in the first place.

We have a great example of this. this offer below was presented to the client of an associate of mine. He needed to sell quickly but also wanted to be sure he was getting what his home was worth. He called his realtor to discuss what his opinion was and they needed up selling the home after 3 days on the market, for 6% commission at $550,000.

Had the seller chosen to go with this Zillow offer he would have left more than $100,000 on the table. Most the examples that we see aren’t this extreme, but in almost every case the seller could have received thousands more dollars if they had listed with a Realtor.

This model will of course work for some people, if you need to just sell and timing is more important than price, this is a great option. Just make sure you discuss everything in detail with a Realtor so you know all of your options.

Another issue we see with Open Door specifically is the way they send over offers can be very misleading. They don’t charge a real estate commission but they do charge a 7% service fee (also known as commission). They also over-estimate the time on market and time for closing, and lastly, they assume you will be paying 3.5% in seller concessions. You may have to pay some concessions for a buyer but this is rare, negotiable, and should not be thought of as a guarantee.

For this example the seller should have $18,000 more selling through a Realtor, but we don’t know what the home is actually worth either so they could have received even more. Again, it is very important to talk to a realtor about your home before you make any decisions.

If you have specific questions about your home and what it is worth, please reach out to us directly. Or if you want an instant valuation click here

We will talk to you again soon!