The Portland Business Journal published their annual rankings of residential real estate companies based on gross sales, but by taking a closer look and dividing gross sales by the number of brokers at each company, it becomes crystal clear as to which company has the most productive sales staff. 

As you can see in the chart above, our brokers ranked number one and it is not an accident.  Unlike other residential real estate firms, we are unique.  At Lee Davies Real Estate our brokers do not act autonomously; we conduct business as a company with proven systems and protocols.  Each of our client teams is led by one of our Senior Brokers, along with one of our highly trained Corporate Team Brokers who ensures that our company standards are executed consistently for every client.  Additionally, we have a “backup” broker assigned to every client in the event that the Lead Broker is not available.  The net result is that every client at Lee Davies Real Estate receives the services of three licensed brokers and the complete services of our corporate marketing engine. 

The results are clear, while other companies continue to allow their brokers to run their independent businesses, our brokers are collectively ensuring that our clients receive exceptional representation along with around the clock service.

By Lee Davies

Yes, there are fabulous opportunities in the market today and many buyers have landed some incredible homes by buying a distressed property through the short sale process.  A “Short Sale” occurs when the mortgage owed to the bank is larger than the actual value of the home.  In these events, sellers are telling the bank that the only way they can get out from underneath the burden of the home is by selling it for less than the existing mortgage.  Thus they would like the bank to “forgive” that shortfall in order to make the sale happen. 
 
Several items typically need to happen for a short sale to occur.  First, the homeowner, most likely, is or will need to be in default on their mortgage payments for the bank to treat the property as a distressed situation.  Once an owner is in default, they are likely eliminating their possibility of getting a new mortgage on a future home for many years to come.  At this time, the bank will typically want verification of the owner’s income and assets to determine if they are truly financially distressed.  Once confirmed, the bank will entertain the possibility of accommodating a short sale.  
 
Now while all this is going on, most homeowners have already listed the property for sale as a short sale.   Buyers will usually race to the property which may receive several offers.  All of the offers will be “contingent” upon the bank approving the sale.  This essentially means that the seller may accept all of the offers, in hopes the bank will accept one.  It is at this time that everything seems to come to a standing halt and nothing seems to happen for, in many cases, 3-9 months.  
 
There are five things that typically slow the process down at this time.  

1. The bank is getting an appraisal and trying to determine what the real shortfall should be. 
2. The bank is determining if the homeowner, Realtor, and buyer are all legitimate.
3. The bank is hoping there will be a better offer as the bank is often “open” for more offers.
4. The work load is overwhelming and processing file after file  is a “loss” for the bank.
5. The work on the 2^nd Mortgage cannot begin until the 1^st Mortgage is settled.  At that time the process starts again with the new lender.   

Once an offer is accepted by the bank, then the sale enters the typical transaction cycle where the home is contingent upon a home inspection, appraisal, and financing.  So the process is still far from over.  In many cases, the seller and/or their Realtor prefer to submit only one offer to the bank for approval. It is for this reason that it is critical that the seller select a buyer who is not only excited about the great financial opportunity of the purchase, but is also truly passionate about owning the home.  The chances are then much better that the buyer will stick with the short sale process and ultimately close the deal.

Due to the time involved and the lack of communication, many buyers tire and choose to terminate and move on to another property.  This is why many homes today are selling as the buyers get excited about a “great deal” with a short sale, only to get burnt out and eventually just buy a nice home to move forward at today’s historically low rates.

By Wendy Culverwell

Business Journal staff writer – Portland Business Journal

“Foreclosure rates in the Portland area hit a new high in July.

CoreLogic (NYSE: CLGX) on Tuesday said Portland foreclosure rates reached 3.73 percent, a 32.5 percent increase from one year ago, when the rate was 2.06 percent.

The foreclosure rate has been rising since January 2009, when it was 1.07 percent, according to CoreLogic, a Santa Ana, Calif.-based firm that tracks real estate statistics.

The increase in foreclosure rates is accompanied by a rise in mortgages that are more than 90 days past due. CoreLogic said 5.68 percent of Portland area mortgages were delinquent in July. The delinquency rate has been above 5 percent since October 2009.

Statewide, the Oregon foreclosure rate was 3.01 percent, up 34.9 percent from one year ago when it was 2.23 percent.

The national foreclosure rate in July was 3.44 percent, up 7.5 percent from a year ago, when it was 3.2 percent.

The CoreLogic report echoes a similar report from Truckee, Calif.-based Clear Capital, which said Friday that local home prices fell 6.1 percent in July compared to a year ago.

The foreclosure and delinquency rates lag behind other economic indicators. The Portland area unemployment rate for July was 9 percent, compared to 10.5 percent the prior year.”

Culver, Wendy. “Portland Foreclosure Rate Hits New High” Portland Business Journal. 11 Oct. 2011. <http://www.bizjournals.com/portland/news/2011/10/11/portland-foreclosure-rate-hits-new-high.html?ed=2011-10-11&s=article_du&ana=e_du_pub>

By Wendy Culverwell Business Journal Staff Writer – as published in the Portland Business Journal

Portland area home sales surged in August as prices continued their ongoing decline.

The Regional Multiple Listing Service on Thursday said both pending and closed sales rose about 30 percent compared to a year ago as the summer buying season wrapped up.

August inventory levels dropped to 6.2 months, the lowest levels in at least two years. The market is considered balanced between buyers and sellers when there is a six month inventory.

RMLS reported 2,187 pending sales and 1,805 closed sales in August, increases of 29.6 percent and 30.7 percent, respectively.

There were 2,897 new listings, down 24.8 percent from a year ago. The average price fell 9.2 percent to $271,800 and the median price fell 10 percent, to $225,000.

For the year to date, new listings were down 26 percent, pending sales were up 2.8 percent, closed sales were down 0.5 percent, the average price was down 7.2 percent and the median price was down 8.7 percent. It took an average of 146 days to sell a house, up 12.5 percent from the same period in 2010.

The average August price, by market:

• North Portland, $246,100
• Northeast Portland, $282,900
• Southeast Portland, $232,600
• Gresham/Troutdale, $199,200
• Milwaukie/Clackamas, $251,000
• Oregon City/Canby, $238,600
• West Portland, $394,900
• Northwest Washington County, $355,000
• Beaverton/Aloha, $217,600
• Tigard/Wilsonville, $274,500
• Hillsboro/Forest Grove, $215,300

by Elliot Njus, The Oregonian

“Apartments are getting harder to come by in the Portland area, already known for its tight rental market.

Renters are snapping up places at rates not seen since 2007, when vacancy rates last dipped into the 3 percent range. The region’s residential real estate collapse has left some former homeowners looking for cheaper accommodations, and those with spotty credit are now largely personae non gratae to mortgage lenders.

That’s mostly good news for property investors, who have been looking to increase rents to meet rising costs. Not so much for renters, who will have to work harder to find a place to live — and maybe pay a little more for it, too.” For the full article, visit OregonLive…

by Lee Davies 

Here is why:
Sales:  Increased 21% from 1412 in July 2010 to 1709 in July 2011.
Pending Sales:  Increased 18.4% from 1629 in July 2010 to 1928 in July 2011.
New Listings:  Decreased 27% from4029 last July to 2942 in July 2011.
Average Price:  Decreased 7.4% from 297,000 last July to $275,100 in July 2011.
Interest Rates:  Lowered and one can get a 4% fixed rate mortgage for 30 years

Case Schiller Report States:  “ Portland residential real estate continues to become dramatically more affordable. From the high point in August 2007 (187) to current (134) Portland residential Real Estate has become 28% more affordable.”

Under the current economic conditions, it would seem apparent that at least the starter home market will stabilize here in Portland and one can lock into a fabulous rate while buying a greatly depreciated property.  If this July over July trend is to continue, inventories will continue to shrink and thus stabilize if not begin to put upward pressure on the market.  While this all may be premature, as many experts still feel that there is a “double dip” in our future, the fact is that if you are going to own your next home for five years or more, it will be tough to lose by locking into today’s pricing and interest rates and the upside possibilities are more probable.

We have compiled seven of our current lower priced listings for those of you looking to guide your child into their first home, or perhaps are considering “downsizing”.  While our average sales price at Lee Davies Real Estate was $513,000 last year, the fact is we proudly enjoy working with first time buyers and take great pride in helping families re-position themselves into the ideal long term downsizing home.  Below are the homes along with some possible financing options (click each title to see property details):

All financial projections are approximate and based on the buyer paying the full asking price; however, it can be anticipated that most sellers will be negotiable. 
 
Claremont Townhome $299,900:
With a 20% down payment on a 15 year fixed rate mortgage, current reasonable rate available would be 3.25% (0% Loan Fee)
Cash to close this transaction would be $66,800; however, if negotiated, the seller may pay up to 6% of the buyer’s closing costs which would lower the buyer’s cash out of pocket to $60,800.  
The monthly principal and interest payment would be $1686 plus taxes and insurance.
 
Beaverton Home Backing Greenspace $209,900:
With 3.5% down payment on a 30 year fixed rate FHA mortgage, current rate available would be 4.125% (zero points)
Cash to close this transaction would be $13,400; however, if negotiated, the seller may pay up to 6% of the buyer’s closing costs which would lower the buyer’s cash out of pocket to $7,350.
The monthly principal, interest and MIP payment would be $1186 plus taxes and insurance.
 
Luxury Tigard Townhome $210,000:
With 5% down payment on a 30 year fixed rate FHA mortgage, current rate available would be 4.25% (zero points)
Cash to close this transaction would be $16,376; however, if negotiated, the seller may pay up to 6% of the buyers closing costs which would lower the buyer’s cash out of pocket to $10,500.
The monthly principal, interest and MIP payment would be $1175 plus taxes and insurance.
 
Pearl Dist. Condo $459,000:
With 30% down payment on a 5 year adjustable rate mortgage, current reasonable rate available would be 2.875% (1% loan fee)
Cash to close this transaction would be $147,888; however, if negotiated, the seller may pay up to 6% of the buyer’s closing costs which would lower the buyer’s cash out of pocket to $137,700.
The monthly principal and interest payment would be $1333 plus taxes, insurance and HOA fees.
 
Sherwood Condo $99,900:
With 3.5% down payment on a 30 year fixed rate FHA mortgage, current rate available would be 4.125% (zero points)
Cash to close this transaction would be $8,630; however, if negotiated, the seller may pay up to 6% of the buyer’s closing costs which would lower the buyer’s cash out of pocket to $3,500.
The monthly principal, interest and MIP payment would be $564  plus taxes and insurance.
 
Oregon City One Level $225,000:
With 5% down payment on a 30 year fixed rate mortgage, current reasonable rate available would be 4.25% (zero points)
Cash to close this transaction would be $16,700; however, if negotiated, the seller may pay up to 3% of the buyer’s closing costs which would lower the buyer’s cash out of pocket to $9,943
The monthly principal and interest payment would be $1190 plus taxes and insurance.
 
Lincoln City Luxury Home with View $278,500:
With 20% down payment on a 30 year fixed rate mortgage, current reasonable rate available would be 4% (1% loan fee)
Cash to close this transaction would be $63,300; however, if negotiated, the seller may pay up to 6% of buyer’s closing costs which would lower the buyer’s cash out of pocket to $55,700.
The monthly principal and interest payment would be $1064 plus taxes and insurance.

If you would like to see any of these homes or would like to really get out there and investigate the current market, please call your LDRE broker today or call Lee Davies directly and he will get you aligned with the best broker in our company to help you with your next move.

from The Cedar Mill News

People have been asking about the progress on the sidewalk planned for the west side of 119th from Cornell to McDaniel. Because it will be a full concrete sidewalk, with buried culverts, curbs and other engineering challenges, the project is on schedule, but will not be completed until late summer 2012.

Matt Costigan, Senior Project Manager for Washington County Land Use and Transportation, says the project is nearing “60% design, which is the first of several design reviews. “We have the preferred layout with new storm pipe, structures, and sidewalk locations identified, as well as right-of-way (ROW) needs.  From here we continue to move forward refining the design toward a complete set of construction documents.”

The county already owns some of the ROW needed for the sidewalk, but not all of it. Once those additional ROW needs are determined, independent appraisers will be hired to set the value of the land so that offers can be made to the affected landowners. The Board of Commissioners approved a “Declaration of Necessit”” on August 2, which gives staff the authority to begin the process.

The project will go out for construction bidding early next year, with construction next spring through summer.
The roadside ditches currently carry stormwater, so Clean Water Services has to approve plans for storm water culverts. Costigan says they are working through some issues as is usual with this type of project.

The estimated $1.5 million needed to complete the project comes from the general Major Streets Transportation Improvement Project (MSTIP) funds allocated for bike and pedestrian projects.

For more information about the project, and to keep up with the schedule and updates, visit the county’s project website.
http://www.co.washington.or.us/UTsportationProjects/119th-avenue-sidewalk.cfm?page=About

For more Cedar Mills News visit their website at: http://cedarmill.org/news/index.html

By Lee Davies

Deferred Maintenance on homes reminds me of the old Fram Oil Filter TV commercials where the mechanic says, “You can pay me now or you can pay me later”, as he holds up a $5 filter and then begins to replace an engine.  Deferred home maintenance is no different. 
 
Frequently we will list homes and walk the property with the seller to conduct our LDRE “Priority Punch List Report”.  It is at this time that we, as a seller’s consultant, take off our “rose colored” glasses and speak the truth about what improvements should be made prior to introducing the home to the market.  Every seller responds differently depending on their own opinions and their access to cash to make the repairs.  But here is a list of items that we recommend you keep in exceptional condition so that, if and when, you go to sell your home, you are not caught by additional expenses relating to the sale:
 
1.  Roof
2.  Exterior Paint
3.  Exterior Caulking
4.  Landscaping
5.  Gutters
6.  Drainage
7.  Bathroom Grout and Caulking
8.  HVAC
9.  Kitchen Grout
10. Clean – Really Clean
 
It is not uncommon for sellers to feel that they can negotiate these items once a sale is consummated and they can.  However, the perceived lack of maintenance at the home will influence a buyer’s perception of value as well as the old theory “if we can see all of this deferred maintenance, then what is there that we cannot see”.  Additionally, buyers, if they take the home “as is”, will expect a hefty discount to take on the work.  If one negotiates  the repairs as part of the home inspection, you are now going to be expected to hire a licensed bonded contractor to do the work with the buyer supervising the quality of the work by having a re-inspection.  If the contractor does not do the work correctly, then there will be more stress and more expense involved in the process.  It is not a fun process to have anyone tell you what to do and how to do it.  That’s why we encourage our clients to do the work before anyone shows up to look at your home.  When approaching the work pro-actively you, as the seller, can do the work or hire a handyman without big brother. 
 
Often as we conduct our Priority Punch List Report on a home, sellers will want to know how much of a return they will get on their investment.  While there is no clear cut answer, the fact is it is not so much about what the repair will “make you”, but rather how much the deferred maintenance will hurt you.  Additionally, we will be looking at cosmetics like dated or personalized paint colors, carpet, hard surfaces, and decor; these too will add value and shorten the time on market (which translates to a higher selling price).  Ultimately, some sellers are unable or unwilling to complete all of our recommendations and they pick and choose with our input on what items to address.
 
In the end, if home owners maintain their home along the way (Pay Now), they will not need $10,000 to $20,000 (Pay Later) to bring their home up to snuff at the last minute. The home will be ready to go in the instant that they find their next dream home.  And the best part is that one can enjoy their meticulous property as they live in it rather than admire it on the day the “for sale” sign goes up.

From THPRD:

Bring your family, a lawn chair or blanket, and meet your neighbors and friends for a summer evening of fun and music from 6-8pm. Food and beverages are available or bring your own picnic. Alcohol is not allowed. Leashed dogs are welcome to attend with their owners.

HAPA, the Hawaiian music sensation, appeared on a recent HAWAII FIVE-0 episode will perform on Thursday, Aug. 4. Local residents are excited at the oppportunity to see Hapa in a beautiful setting at a local park. 

Parking: At Cedar Mill Elementary School, 10265 NW Cornell Rd, Portland, OR, additional parking and shuttle bus available at Cedar Mill Bible Church, 12208 Northwest Cornell Road, Portland, OR (shuttle runs every 15 minutes starting at 5:00 p.m.).

Concert entrance: Cedar Mill Park/Cedar Mill Elementary School, 10265 NW Cornell RD, Portland OR.

For information visit THPRD

 The City of Portland Bureau of Transportation advises the traveling public that weekend construction activity on NW Cornell Road will require closures and detours on Saturday and Sunday, July 30-31, from 7:00 a.m. to 7:00 p.m. both days. The closures are necessary for tunnel repair work and a speed bump construction project.

 The lower, east end tunnel on NW Cornell Road will be closed to motor vehicle traffic for ceiling repair at the crown of the tunnel. In addition, the city will remove four existing standard speed bumps and install six new “fire-friendly” speed cushions on NW Cornell between NW Lovejoy and the east tunnel to more effectively reduce speeding and to enhance response times for emergency vehicles.

 Motorists will be directed to use West Burnside Street. A signed detour beginning on Lovejoy at 25th Avenue will direct westbound traffic left onto 25th Ave., to Westover, to 24th Ave., to Burnside, to Skyline, to Cornell. A signed detour beginning on Cornell at Skyline will direct eastbound motor vehicle traffic right onto Skyline, to Burnside, to 23rd Pl., to Westover, to 25th Ave., to Lovejoy.

 Bicyclists and pedestrians will still have access to the trail to the north that by-passes the tunnel on NW Cornell. However, bicyclists will be detoured around the speed bump construction zone as follows:  Use the bikeway by-pass path on the north side of the tunnel to 30th Ave., to Quimby, to Raleigh, to 26th Ave., to Overton, to 25th Ave., to Lovejoy. Be cautious when approaching the construction site.

Click here for detour map. 

Future closures may be necessary later this summer if additional repair sites within the tunnel are identified during this project.

This work is dependent on weather, and the schedule may change. For updates, visit www.portlandonline.com/transportation.