Me This week we’re changing up the style a bit and answering some of the questions we’ve received over the past few weeks.
Q: I would like to know what percentage of residential property sales in Deschutes County are cash buyers (no financing or mortgage required). Also, has this percentage changed in the last few years? – Jim G
A: Thanks for contacting us, Jim, our friends at the Central Oregon Real Estate Association®, we were able to get that information for you! In the quarter, 25% of single-family homes were purchased with cash. In Q2, this number increased slightly, with 27% of SFR purchasers cash. One thing I would like to point out is that interest rates were very low in the first quarter of this year and they actually started to rise as the second quarter ended. So you may need to update this when there is more data for Q3 and Q4 of this year (will update).
Q: What are real estate ibuyers? how does that work? – Sarah H.
A: Thanks for asking the question, Sarah! Essentially, ibuyers use technology to assess and analyze the real estate market and use large amounts of capital to make housing offers and close them quickly. In many cases, they will do simple repair work on the house and put the property up for sale in hopes of making a profit. The benefit for sellers is a stress-free, “easy” and “smooth” transaction as the buying process is streamlined. This is a simplified summary of a complex business plan. Results are mixed, to say the least. Earlier this week, the Federal Trade Commission fined Opendoor her $62 million for fraud. The FTC found that Opendoor told agents it could sell them for more money compared to the traditional method of listing and selling homes to agents. Realtor. Opendoor bought just 37,000 homes last year, while one of his biggest competitors, Zillow, lost nearly $500 million from his ibuyer program last year after losing nearly $500 million in the third quarter of 2021. has been closed. This is my opportunity, as a real estate professional, to point out that “these groups of ‘competitors’ are not in the business where these ibuyers pay the highest.” Just as someone looking to ‘flip’ a house doesn’t pay top dollar. It is achieved by purchasing at a price lower than the price.
Q: What’s the best neighborhood in Bend? – Lenny U.
A: it depends. Honestly, just like asking your favorite brewery in town, everyone will have a different answer. Some want a large piece of land outside of town. Others want to go to their favorite restaurant or coffee shop. Still others simply want a place to call their own. We encourage you to take a walk or bike ride around your neighborhood at different times of the year to get a feel for what’s really going on. May you find what you are looking for!