Congratulations to my clients Saidullah, Solimah, and their three children on the purchase of their first home!
Saidullah and Solimah were introduced to me by my past clients, Yusuf and Misrah. They are all refugees from Myanmar and have worked tirelessly to save up to purchase homes for their families.
Saidullah, Solimah, and their three children needed a place with enough bedrooms, a backyard for the kids to play in, and somewhere close enough to public transit and their Mosque. We found it (and well below their max budget, too) on SE 142nd Ave.
We beat out 4 other offers with creative terms and a competitive price. Another win came when we were able to negotiate a full credit for roof and sewer repairs. The whole family is so excited to be moving in before the new year.
Cheers to Saidullah and Solimah, and their faithful advocates, Yusuf and Misrah, who were with them at every step of the way. Here’s to many more years of love and laughter in your new family home!
In a seller’s market, buyers have to weigh every decision when making an offer to buy a home. Being competitive means trying everything you can to sweeten the deal. Promising to release earnest money just for getting acceptance, making up a cash shortfall in the event of a low appraisal, limiting repair negotiations, forgoing inspections, or even committing to an as-is purchase are all terms that are on the table to entice the seller and have the winning offer on a hot property. A buyer purchasing a property in as-is condition can certainly be to the seller’s advantage, so long as the sale closes. Is the risk worth the reward?
Should you make an as-is offer?
Committing to purchase property in as-is condition in advance of having it inspected is high risk. You cannot tell what the condition of the sewer line is, what is hiding in the crawlspace or behind the face of the electrical panel, or possibly even the condition of the roof or chimney on a tall home. While an as-is purchase may sound appealing to the seller, the agreement can backfire. Buyers still may have the right to terminate the purchase if they aren’t satisfied with what they learn about the property during inspections. That risk may be higher if the buyer feels they have no wiggle room to negotiate solutions to big problems. I always counsel sellers that if there is an inspection contingency alongside as-is terms, the offer may not really end up as-is. I encourage cooperating agents to have conversations with their clients, as I do with mine, to consider negotiations if it will save a transaction that is otherwise falling apart. It is fabulous when it all plays out as planned and buyers can honor their as-is terms and still afford to buy the property, but sometimes flexibility is needed to get to the finish line!
A compromise?
An alternative to a totally as-is offer is to write in some seller protections regarding repairs. For example, a buyer might state that they will not negotiate any single repair item that costs less than a specific dollar amount to correct, perhaps $1,000 or $5,000, etc.. This provides the seller assurance that they will not be presented with an irritating laundry list of little to-do’s, but provides a path to negotiate big ticket fixes. The buyer risks the possibility of multiple items that come in under their threshold, but that together add up to more than the buyer’s budget can handle. As with as-is terms, it may require some flexibility to seal the deal.
Tough choices!
Further complicating all of this is that there is pressure to have shortened inspection contingency timeframes; yet inspectors are frequently quite booked up. This means that the home inspection appointments may occur with little to no time left in the buyer’s inspection contingency to get estimates for needed repairs. The buyer’s earnest money deposit is protected by that contingency and they may not be able to negotiate an extension for more discovery. Buyers often find themselves at the precipice of a cliff: either blindly accepting the unknown cost of making needed repairs or letting go of the house they finally managed to get an offer accepted on.
In 2018, Tasa, reached out to me because she wanted to flip a house. I didn’t know it would lead to this, but since then, we have spent many hours talking about house remodeling, key improvements, and how to ensure a profitable investment. Just finishing up her third successful home remodel, I wanted to share some of her work with Kara Mack on Afternoon Live. Below are a few before and after photos. For the full 8 minute segment, and more of the work she did to the house, check out the link below.
Today I talked with Kara from Afternoon Live about multifamily houses in Portland. To see the full 7 minute video, click here
Multifamily Duplex In Portland
Here’s an example of a duplex that was for sale in Portland that I thought was a great long term investment.
1950s side by side 2 BR/1 BA multifamily (duplex) with Tuck-under garages.
It was already vacant and in extreme disrepair when we bought it.
NE Portland- Alberta Arts area.
Current 2 Bedroom rentals are roughly $1600-$2200
Current 3 Bedroom rentals are roughly $2500-$3000/month.
We decided to finish the lower level, adding additional bath, bedroom, and bonus living space. Each unit will now be 3 BR/ 2 BA.
Better use of space (more people can live in the property)
By adding this additional finished space, it will bring in more rental income to cover the cost of the renovation work
That extra monthly income will pay for the additional renovation work over 8-10 years.
By updating everything, there will be few if any large maintenance expenses within the first 7 years. This makes profit and loss a little more predictable.
Not in the buying market or interested in multifamily, but thinking of selling your home? Check out my tips here.
Distinguished Laurelhurst Dutch Colonial with grand spaces and period charm on a double lot. This brilliant 2017 renovation by Remodeler of the Year was thoughtfully remastered with entertaining and the entire family in mind.
Laurelhurst Home
Laurelhurst Backyard Patio
Main Floor
1,917 SF of main floor living. Magazine worthy chef’s kitchen with honed marble island, custom cabinets, wet bar and walk-out to the private backyard. Living room with woodburning fireplace, family media room and office with built-ins and formal dining room with hardwood floors.
Laurelhurst Dine in Kitchen
Laurelhurst Kitchen Island
Upper & Lower Floor
South wing Master-suite with sitting room and dreamy masterbath. North wing with 3 additional bedrooms with double closets and full bath. Mother-in-law suite on the lower level with kitchenette, full bath & separate washer & dryer. Undeniably an exceptional home in Laurelhurst.
5 bed | 3.1 bath | 4504 sq. ft. | 2 Car Garage MLS# 20399469 | Taxes: $14,632 | Lot Size: .21 Acre
Professional House Flipper and Real Estate Agent, Bobby Curtis gave tips on how to sell your house faster in this “neutral” market. See tips below or click here to see the full interview on KATU’s Afternoon Live with Tra’Renee.
Price it Right- Sell Your Home Quickly
1.Price it right- don’t hold out waiting for your buyer. It may work on occasion if you have a very unique property- but let someone in the real estate business be the judge of that.
Effective Staging- Sell Your Home Quickly
2.Effective staging. Of the homes that sell within the first week on the market with multiple offers, most of them are staged or appear staged.
Stay In Contract- Sell Your Home Quickly
3.Once in contract to sell your house, stay in contract. Negotiate after they do their inspections.
Hire a Great Agent- Sell Your Home Quickly
4.All of this will be made easier if you are working with a great real estate agent.
For more from Bobby, and some great contractor tips for your next home remodel, click here
Negotiations are a delicate dance, and it’s not about simply ‘splitting the difference’. In fact, I advocate for and employ strategies that ensure all parties get what they need. The baseline for any successful negotiation begins with establishing trust among all parties – your own clients, as well as the other parties in the transaction. It’s important to me that all my relationships are built on trust and clear, responsive communications. I believe that if I can provide these two things to my clients and the other parties in the transaction, I will be able to negotiate for my clients and influence the transaction in their favor, while also maintaining trust and integrity as a fair partner to the other parties involved.
While many aspects of the real estate business are becoming simpler and more consumer-friendly, most often due to technology developments (searching for homes online, signing documents electronically, the speed and ease of texts, .pdf files and emails, simple photo/video sharing, etc.), it’s still overall a complex and lengthy process involving large financial commitments and obligations, high levels of liability and exposure, timelines and milestones that must be adhered to rigorously, and, perhaps most importantly, human beings and their emotions, logic and passions.
While at first glance the human aspect may seem to be the most familiar of all of the pieces of the puzzle – after all, we live, work, negotiate and play with one another every day – dealing with the human emotions on both sides of a transaction can often be the single most challenging aspect for all parties: buyers, sellers, real estate brokers, mortgage brokers, and escrow officers. There’s no way around it: we’re a complicated species, with emotions that are dramatically heightened when we’re in the midst of high stakes transactions. Most buyers and sellers are dealing with the single biggest transaction in their lives, and that makes it very stressful and more difficult to manage expectations and emotions, and retain the ability to think through problems logically and reasonably.
And I love this aspect of the process! Not because people around me are stressed and worried, but because I’m able to bring forth a wealth of experience, skills and strategies for helping calm my clients, and the other parties involved, while at the same time consistently positioning my client for their ultimate success. I’m a passionate advocate and a skilled communicator. My law school training, and experiences as a practicing attorney, have prepared me especially well to negotiate for my clients in a powerful, effective manner. [Note: I am licensed in Massachusetts only, and do not represent my clients in any legal capacity…this is a bright line I cannot and will not cross.]
There are many ways to split a pie.
Take for example one of the most delicate and important milestones in a transaction: the inspection contingency and repair addendum process. This is the moment when the sales agreement is essentially renegotiated to account for the findings from the home inspection, sewer scope, radon test and underground storage tank locates, as well as specialized contractors like plumbers, electricians, roofers and foundation specialists (to name but a few). There are always things that get called out even for the most scrupulous homeowner. Sometimes these things are minor, but often there are hidden deficiencies and defects that must be addressed – and will be requested by most reasonable buyers.
I’ve helped my clients negotiate big, hairy, audacious repair addenda, including one the represented nearly 6% of the total sales price through a combination of seller credits, direct repairs, and sales price adjustments. That’s a big achievement – not only for my clients, but for all parties involved. Because ultimately everyone is getting what they want. Getting to that point of agreement is where the hard work really comes into play.
To me, the repair addenda process (and negotiations in general) can be distilled into a few simple principles:
Build trustthrough earnest and clear communications and convey commitment to the transaction to the other party. In other words, “We love this house, care about this transaction, and aren’t simply going to walk away. Let’s figure out how to make this happen.”
Provide facts and independent analysis — basically, show that you did your homework. Don’t simply ask for some random number — be able to make your case and show support for your claims.
Be reasonable and stay focused on key items. Ultimately, this comes back to building and maintaining trust. Focus on key needs. The framework I adhere to, and work with my clients to adopt, is credited to a wise colleague at Living Room Realty and is focused on three key things: healthy, safety and structural repairs. The key word here is ‘repairs.’ This isn’t an upgrade addendum, it’s a repair addendum. Staying focused on those three things isn’t excessively limiting to a buyer, but it does show that they are simply insisting on repairs or credits for items that most reasonable and diligent buyers will also be asking for.
Know when to flex, and know when to stand pat. This part is kind of like poker — know when to hold ’em and know when to fold ’em. Like poker, the crux is figuring out when the other party will budge and what their limits are. Not to say that any of this is a game, but similar psychology does come into play.
There are many more pieces to the real estate puzzle beyond the inspection contingency and repair addendum process. In fact, some of the most challenging transactions I’ve had are because of things that arose in the week or two prior to closing — something that had to be figured out among the parties, often with significant dollars involved, before the closing could occur. Those are more individualized in their nature, but the process for addressing them is the same. And by that point, hopefully the parties have built enough trust and are invested enough in the transaction that they become more willing to negotiate and make the compromises necessary to keep the deal together.
Simply, I love to negotiate and enjoy the challenges and rewards of the process. Helping my clients realize a positive outcome is deeply satisfying for me.
And I love to see my clients achieve all of their goals, whether they are buyers or sellers. It’s an honor to be a trusted teammate and partner in their process, and I don’t take that honor lightly. My training as an attorney was to be a zealous advocate for my clients. I approach my relationships with my real estate clients in exactly the same manner, and I feel like it’s the right approach. Please read my client reviews, and see what they have to say.
We humans are a complicated lot and negotiations in a real estate transaction can be difficult, but by focusing on some basic principles and sticking to them even when the going gets rough, the results can be consistently and overwhelmingly positive.
Robert & Koka are happy, the sellers are happy, the agents are happy! What more could you ask for? All happy in Albany also made possible by Steph Noble and her team at Guild Mortgage.
Buyers Robert and Koka have been renting a secluded estate in the hills of Washington county for over 10 years. When the owners decided to sell, they knew it was the time to dive back into home ownership.
Spanning their search from SW Washington all the way down to the Southern art scene in Ashland Oregon, they were looking for the right niche property to call their own.
Artisans by trade, their home needed to provide a serene energy.
When this secluded executive style property came on the market we quickly made the drive down to Albany, canceling other showings in the process. The moment Robert and Koka walked in the door you could see and feel their sense of connectedness to the home. A clean professional offer was packaged and presented to the sellers and we were in contract in no time.
Despite receiving another offer for a higher price,
the home owners had become attached to Robert and Koka because of the transparently heartfelt letter they wrote to accompany their offer. The Sellers in this case even wrote a heartfelt letter back to my clients and provided them a “how-to” home tour after closing.
All happy in Albany is exactly how the entire process went on this home purchase. When everyone involved comes from a place of gratitude like this it’s an experience dreams are made of.
Congratulations to my favorite artists and new Albany residents! Now onto plan our group kayaking trip to celebrate!
I’m incredibly proud to have earned the right to call my self a CNE- Certified Negotiation Expert. This educational program is modeled after the curriculum developed by Harvard Law School. Think of super popular books like The Art of Getting to Yes, Never Split the Difference, Give and Take, How to Win Friends and Influence People…
Ok, neat new letters after my name—but what does this actually mean? Well, it elevates my intelligence gathering capabilities. It provides me with scientifically proven methods for finding and leveraging positions of power??. In essence, it makes me so much more effective for my clients?.
Clients say that at least 40% of our time as Real Estate Agents is consumed by negotiating. While only 4% of Agents have any advanced education around Negotiation. ?
One of my favorite things about this industry is the amount of continued education required to maintain one’s license. I can’t wait to offer all of these new tools to my incredible clients.
