New Perspective on Neighborhood Walking Tours

Are you interested in learning about a Portland neighborhood from the perspective and voice of a young black man who lives there?

The organization Word is Bond is working on rewriting the narrative between young Black men and law enforcement through leadership development, critical dialogue, and engagement. Their most recent project, In My Shoesamplifies the voices and stories of rising black men that are not often heard.

Although tours scheduled throughout February are fully booked, private (paid) tours for groups and organizations can be arranged. And, Word is Bond may plan additional tours after the initial run is complete.

If you're interested in a private group tour, reach out directly to Word is Bond here>>

It's Time to "Open the Books"

In late 2019 we shared news of a class-action antitrust lawsuit filed against the National Association of Realtors (NAR) and four of the largest brokerage firms in the country. The chief complaint centered around the fees (commissions) that sellers pay to the buyer's broker being fixed rather than open to negotiation. We agree that real estate commissions, specifically how buyers' agents are paid, should be transparent and negotiable.

Last summer, the Department of Justice withdrew from the proposed settlement with the NAR and announced their intention to investigate NAR's rules of conduct more broadly. We welcome this examination into our industry.

Buyers and sellers deserve to know who is earning what from their transaction and have the option to negotiate those fees. This kind of change would mean an additional learning curve for consumers, but it would also offer them choice. In the current situation, buyer-broker commissions are rarely discussed, let alone negotiated.

Some consumer experts argue that listing and buyer agent commissions should be uncoupled. This option could be viable as long as we put market-approved proposals in place that would allow buyers to pay the fees in a way that doesn't further disenfranchise those without the cash to do so upfront.

Consumers are not all the same; there will always be people who hold price as a primary driver in every interaction (in both directions). Although price is not a universal marker of quality, that doesn't mean that consumers don't want to know the price. For every person who wouldn't opt to discuss the fees, there is another who would relish the opportunity to ask for a better deal. A fair and competitive market would allow consumers to choose for themselves rather than choosing for them.

We fully understand that more information can be overwhelming and that not everyone will take a DIY approach to their homeownership transaction, but we are firm believers in choice.

If you have questions about commissions and fees, we'd love to address them>>

It's Not Your Fault...and, Can You Help?

Federal support–money for small businesses and unemployment benefits for workers–has dried up. While we don't believe individuals can fill the void left by government institutions, one of the most tangible ways that we can influence our local communities is through our spending. Not all of our remaining small businesses will make it through the winter, let alone the pandemic.

If you have the capacity right now, which is a big if, call to mind your favorite shops, restaurants, cafes, spas, cultural institutions, and consider making purchases from them. Buy a gift card for your cousin, make a donation in the name of your coworker, order takeout (direct please! delivery apps take a huge percentage), or sign up for that bread, coffee, chocolate, beer, flower, pickle, or pen of the month club. You get the idea- spend locally wherever you can.

If you need help remembering all of those places that you've missed going to since March of 2020, this directory might help>>.

RMLS Market Action Report

Lots of drama in the market as listings shrink and buyers duke it out for the chance to buy. At .6 months of inventory, if we stopped listing new homes and continued at this pace of sales, we would be totally out of houses to sell in about two weeks! It is mind-boggling.

As always, where there is a will, there's a way, and we will continue to use creative and out-of-the-box thinking to get our buyers a foot in the door. Suffice it to say if you are thinking that selling your house is in your future, give us a call. We are in one of the strongest seller's markets we have ever seen. And according to many of the local and national economic forecasters, the days of double-digit appreciation numbers are not here to stay.

View the most recent report here>>

Is There Any Opportunity Left in This Market?

Clients, especially first-time buyers, often ask us if there's any way they can compete in this bonkers market. Yes, there is hope! Here are a few strategies that are helping our clients right now:

1. Buy a cosmetic fixer. Cosmetic fixers–properties with dingy carpets, outdated fixtures, chipped paint, quick fixes made with cheap materials, or generally been lived in harder than they've been loved are where there is still a clear opportunity for buyers in the current market. These properties are less competitive because today's buyers expect "move-in ready" properties. Between labor shortages, supply chain issues, and the desire to socially distance, remodeling is the last thing some folks want to do. But if you are looking for value, pursuing such properties could mean less competition and a better price. It's not for everyone, but it can be a winning strategy for those looking to "earn their way" into their first home.
   Sellers should note that putting a property on the market without doing a refresh shrinks your buying pool. In addition, there is a general feeling out there that folks want to spend their time doing things they love and not working on a house, so that translates to less interest in cleaning up even a moderately neglected property.

2. Look at homes that are slightly over your price range that are lingering on the market. As counterintuitive as this may sound, buyers are not psychologically prepared to make offers for less than full price, so if they see a property that seems overpriced, they will move on to the next one. If a home has been on the market for 2-3 weeks, this is a clear sign that something is wrong, and if it is just the price, well, that can be fixed! It does take a steely heart to do so, as it is not always successful, depending on how realistic the seller is, but it has won the day for a few of my buyers lately.
   

3. Make your offer "as good as cash." This method takes some risk tolerance and financial wherewithal. But, if you have the desire and ability, doing things like waiving the appraisal (or even the entire loan contingency) can help you compete with a cash offer. If you are confident you will get your mortgage and can cover the price even if the appraisal comes in under your offer price and are willing to take on some risk, including losing your earnest money (1-3% of your offer price), this plan can work. This is not our favorite option, but our job is to present the options so you can make an informed decision.

With all of these methods, there are pluses and minuses more than right or wrong answers. Our goal is to familiarize you with the tools that have helped our clients succeed in today's market.

Please reach out if you'd like to talk through your options. We are here to help>>

Lending Programs and Practices Are Changing

Yes, interest rates are rising, but that's not the only thing shifting in the lending landscape. For example, we are seeing changes in the VA lending program, the FHFA's fee structure for second homes, and conforming loan limits.
These changes are program-specific, but they also have a ripple effect in the market. Although the Biden administration cannot influence the Fed (interest rates), changes to these lending programs are undoubtedly part of their intervention strategy to tamp down the market.

If you are in the market for a mortgage and have not been in recent contact with a mortgage broker, we strongly recommend that you consult a lending expert.

Let us know if you need a referral>>