Real Estate Websites & Actual Market Value

How accurate are websites in determining actual market value?

Websites, such as Zillow & Trulia, search tax records to determine the homes sq./ft. and input the sq./ft. into an algorithm to determine a value based upon the average price per sq./ft. Unfortunately, they don’t take into consideration, location, condition, upgrades etc.

Zillow and Trulia are a great place to look for real estate trends but as a specific evaluation tool, it’s unreliable.

Condition is a big portion of value and websites are unable to peer into a house and adjust the value based upon the condition.

The Birmingham Alabama Business Journal stated home value evaluation websites accuracy is within 5% of true value only 50% the time.

The best way to find out the true market value of your home is having an actual human determine the value. A real estate agent is able to provide you with a market analysis and take everything into consideration. Besides, a professional market analysis is complimentary.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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Seller Strategies For Buying & Selling

Seller’s Strategies For Buying & Selling

Some sellers who want to sell their home are feeling stuck. They are worried about finding a new home in this market.

I spoke with a seller yesterday with that exact fear. She wants to sell but she’s worried that she won’t be able to purchase a replacement property.

For example, let’s say a seller accepts an offer that they cannot refuse, what would happen if they cannot find a new home?

Planning in advance is essential.

A couple of options is to negotiate a long closing or a rent back period. A seller could rent their property from the new homeowner for a specific period of time after closing.

If you don’t plan in advance, you could have a problem. If the seller fails to follow through with the agreement to sell their home, they can be sued for specific performance.

For example, we had a seller who quit his job and decided to move out of state. We put his home on the market, he accepted an offer, inspections and an appraisal was completed etc. Toward the end of closing, he was offered a new job in Portland and accepted. We asked the buyer if they would let our seller out of the transaction. They wouldn’t as they wanted to proceed with the purchase per the agreement. My seller was forced to choose between being sued or proceed with the sale. He close to sell and purchase another home in the neighborhood.

In an effort to make the sale & purchase as easy as possible, plan in advance.

Tune in to KXL’s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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The Current Real Estate Market & Cash Buyers

The Current Real Estate Market & Cash Buyers

CNN has reported that the number of cash real estate transactions in the first quarter of 2014 more than doubled compared with last year. What’s causing this?

I think it’s the shortage in inventory. It’s causing multiple offers on properties. If you want to make your offer as strong as possible, it’s best to offer cash or a large cash downpayment.

Sellers are selecting the strongest offer and sellers are specifically looking for buyers that are able to pay cash and close quickly. When a buyer pays cash, the seller doesn’t need to be concerned about an appraisal and the strict underwriting guidelines.

According to CNN, Miami, New York, Boston, and the California Coast are attracting foreign cash buyers. Is it the same in Portland?

Yes. If you come over from a foreign country to buy a real estate in the United States, it’s likely that you do not have a credit score or credit history. Therefore, it’s likely that you will need to pay cash to purchase a property in the United States.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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