By Jessica LeDoux, March 30, 2022
The reputation of Portland’s real estate market often precedes itself. In many ways, the market is as it appears – we have historically low inventory (if no new homes were listed, our inventory would be depleted within two weeks), housing prices are rising, and there is a large buyer pool fueling an overall competitive environment. All of this can land as fear in the heart of a hopeful buyer and spur reasonable questions:
Will I be forced to take uncomfortable risks in order to have my offer accepted?
If I buy in this market am I at risk of paying over market value?
Will I be able to compete?
Is now still a good time to buy?
What should I expect from real estate representation?
The answers can be nuanced and unique to each individual person, but one thing we aim to inspire in all buyers is empowerment around choice, rather than a “when the competition says jump, you say how high,” mentality.
Will I be forced to take uncomfortable risks in order to have my offer accepted?
It’s true that there will likely be scenarios where competition is fierce and what it takes to win a home may stretch a buyer’s comfort. But this should always be viewed as a question mark (Is this the home to fight for?), rather than a demand. We want to nurture a foundation of security by way of education, supporting buyers in honing in on and prioritizing goals, and setting clear expectations so when “the one to fight for” does come around, buyers can respond with less reactivity and instead can feel rooted in their well-rounded understanding of the market and commitment to their own individual needs. Our ultimate goal is aiding buyers in honoring the right decision for them.
If I buy in this market am I at risk of paying over market value?
Often market value is conflated with appraised value. In short, market value is determined by how the market responds to a home. This is the amount buyers in the market are willing to pay. Appraised value is a bank’s assessment of risk. There are times when these two numbers are farther apart, which is often the case coming out of winter when early spring sales have not yet closed and the less fervent winter market is providing the bulk of the comparable sale stats for appraisers. This can also be the state of things when an influx of buyers outpaces rising home values – or in other words, population growth and demand are moving at such a clip that appraised values seem to be one step behind. Consequently, we are seeing appraisal gap coverage (the willingness to pay the difference between the appraised value and offered price) become increasingly commonplace within offer terms. When a buyer is bridging an appraisal gap, they are paying the same price they offered for the home, but are taking out a lower principal loan. In essence, the cash to close is higher and the loan amount is less.
Will I be able to compete?
We never want to squash dreams, but we try to arm buyers with realistic expectations. The fact is that aggressive offer terms do exist in the marketplace: variations on partial or full appraisal waivers, inspection waivers or limitations, earnest money releases, etc. These decisions are at each buyer’s discretion and if one or all of these terms do not feel comfortable, it is still important to know what you could be up against. It is also important to keep in mind that even in a highly competitive market, there is still opportunity and often buyers end up purchasing homes in scenarios that are compatible with their level of willingness to compete.
Is now a good time to buy?
It can be heartbreaking when a buyer feels as though they are chasing the market. The reality is that rising housing costs have priced some first time homebuyers out. Often, buyers that have stepped away and are now returning to the market are faced with the question: Do I adjust my expectations around what kind of house I can buy with the money I have or do I no longer want to be a buyer in this market? We want to counsel buyers away from the experience of chasing a unicorn only to emerge disappointed months later. For many buyers, kicking the door down, getting into their first home, and beginning to build equity will take precedence and expectations will adjust. Others will determine that stepping away from the market serves them more. Both are valid choices and both decisions come with their own risks. Investing in real estate has always carried some uncertainty and although many signs point to continued value increases for Portland’s homes, the bottom line is we cannot predict the future and the weight of investment risk is not one size fits all.
What should I expect from real estate representation?
Counsel – No matter the archetype of the buyer, this is an important and emotional process. Finding an agent that hears your needs and adds value to your process is imperative.
Honesty – Your agent cannot pick your home for you, but they can frame realistic expectations on what type of home you should be targeting for success. This process should be educational and interactive. No matter what we hear at the water cooler or from trusted sources, there is NO better way to understand than to be directly and actively involved in a process focused on your needs.
Negotiation – Getting an offer accepted is not based on price alone. There are many components to an offer that add strength. Having an agent who understands this and can educate you is critical in this seller’s market. Our team spends a lot of time preparing and educating you on the process so that you are ready to act fast and have had time to evaluate what tools are safely at your disposal.
Presentation – Crafting the right offer is complex, but the presentation is just as critical as the terms offered. Our team has a stellar reputation in the Portland marketplace, and we have earned this by working at a high level of integrity and with respect for the co-brokers we get to work with. The presentation of your offer sets the tone for the entire process and we want the first impression of your team to be as leaders of the industry.
Jessica LeDoux
Broker | OR
She/Her
JESSICA LEDOUX
Licensed Broker
Lead Buyers Agent
Oregon is where Jessica’s heart lies. Born and raised in Portland, Jessica grew up in Concordia and bought her first home in North Portland in 1996. She was seduced by the front porch of a 1920’s bungalow and as a young 20 year old there were so many factors she did not know to take into consideration when choosing her home. After 5 years of restoring the home, it was time to move and the seed had been planted – her love of restoring homes was born. It took a few more projects and years for her to make the choice to enter Real Estate. In 2006 she got her license and set out to empower people with information and encourage inquiry beyond the basic needs in a home, which was something she wished was provided to her when she bought her first home. As her Real Estate career developed she found joy in helping buyers the most, which led her to specialize in buyer representation.
Jessica loves helping buyers consider all angles, future needs, and possible roadblocks in a home. Her goal is to empower a buyer with choices and to consider the unchangeable elements of a home to better ensure many years of happiness in their new home. Buying right is the most important factor to protecting your investment and she takes this very seriously, which is why helping buyers eliminate homes in order to get to the right one is her top priority. She believes wholeheartedly in the power of investing in real estate. She brings this wealth of technical housing knowledge, intimate familiarity with the city, and investment experience to her counsel for homebuyers, but it is her commitment to buyer advocacy (and seeing the impact this has on people's lives) that most inspires her and has kept her engaged and in love with her job after all these years.
Jenessa V.
Licensed Buyer Team Operations Manager
jenessa@livingroomre.com
When I first joined our team in 2019 I had been feeling dispirited about real estate. I'd been a realtor for several years and had a strong desire to find increased meaning within an industry that didn't always reflect my values. The thing that kept me returning to real estate despite this was the zing of happiness I felt when I helped clients through the home-buying process and witnessed them on the other end having accomplished a dream or otherwise empowered. To me, the role of a realtor is one of stewardship. I am proud to be on this team because the level of informed honesty, ethical counsel, and all-around excellence we offer is truly unparalleled in this industry.
Working as the Operations Manager on our buyer team means I get to focus on all my favorite parts of the job. I'm hyper-attentive to detail and delight in tending to nuance; transparency and communication are critical. If you are at ease knowing the train is running smoothly and if I answer your questions (maybe even before you've thought of them), then I've done my job well. I'm an introspective person and I view my sensitivity as a strength. I enjoy listening and taking the time to thoughtfully respond so we can move through the home buying process with intention together. I think searching for a home is about identifying your fundamental values and assessing how the decision you make about where you live can best support the life you want to lead.
On the more personal side, when I'm not working I'm probably writing or thinking about language. Give me a stack of good books and I'm happy. I'm a creative thinker and a maker - I love great design and discovering new outlets for expression. I don't ever want to stop learning. Putting my hands in dirt is just about the most invigorating thing I can think of and my little garden is my sanctuary. I like to dance at home so free that it makes other people laugh. I love to sing. I freaking love my family.
Karim Alaeddine | Operations | Principal Broker Licensed in OR | karim@livingroomre.com
Kim Parmon | Lead Listing Agent | Principal Broker Licensed in Oregon | kim@livingroomre.com
Andee Zeigler | Licensed Listing Team Operations Manager | andee@livingroomre.com
Jenessa VanZutphen | Buyer Operations Manager | Licensed in Oregon | jenessa@livingroomre.com
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- T: 503-310-5816
- Jessica@livingroomre.com
