One of the smartest people I know often notes that people make purchases emotionally and justify logically. And, I am realizing that this applies to screwdrivers as much as it applies to real estate.
We buy what we want or need. But HOW we buy it says a lot about us. For instance, say you need a screwdriver. Do you just go to the store and buy the one that will work and get on with your day or do you compare prices at 5 different stores before making the right decision?
This is not a matter of frugality, as even frugality is a choice. I am a very frugal person, even when I don't need to be, because it gives me deep satisfaction that I am not getting ripped off. Another frugal guy I know feels like he is using a trick to get one over on the man when he uses coupons (And, he doesn't really need to use coupons). But, us frugal people justify our purchases as smart money-saving moves.
On the flip side, others might buy whatever they want without giving a second thought to price. They justify it by saying they are buying the top quality or living in the moment.
And, when it comes to real estate, it isn't much different. We tell ourselves and others that we want a solid house in a certain price range that will increase in value. We make it sound like we are making a very rational decision after days and weeks of deliberation.
But, when it comes right down to it, most people buy the house that they respond to emotionally. I often hear from buyers, "This one just feels like home," and not "Well, this house meets 93% of our criteria, so let's make an offer."
What prompted this blog entry is an article at SmartMoney.com making the rounds this week about the psychology of real estate purchases, which I found very fascinating. It is not something people talk about very much.
For instance, buyers often respond negatively at some level to homes that are marketed as having a lot of new features (new flooring, new roof, etc) as it leads them to worry about why the house needed new things and what else might be wrong. I also think that people want to put their own imprint on their new home and might feel guilty about getting rid of new stuff to replace it with their own.
On the flip side, houses that required simple affordable upgrades (like new paint) often turned off buyers, making them think that the house was too much work.
These two facts are somewhat contradictory, but there they are in this academic study. Which reminded me all the more that people buy emotionally and justify logically. Even when they are buying something that costs hundreds of thousands of dollars.
I highly recommend the article, which you can read by clicking RIGHT HERE.
What do you think? How much does psychology and emotion play into your big purchases?
Friday, July 30, 2010
Monday, July 26, 2010
Neighborhood Focus: Irvington
My first Neighborhood Focus was about my own 'hood, Sullivan's Gulch. Of course, when I tell people I live in The Gulch, I am met with blank stares. So, then I say that Sullivan's Gulch is just southeast of Irvington. Then they smile and nod and usually say, "Oh, I love Irvington!"
Everyone loves Irvington, including me. It is historic, has incredible homes, and is filled with trees, trees, and more trees. A nightly walk through the Irvington district does my soul good.
It is very historic. It was founded in the late 1800s as one of the first upper middle class neighborhoods in Portland, thanks to the burgeoning trolley car system that cost only a nickel (which is five cents more than riding the MAX from Irvington into downtown these days in the fare free zone!)
Walking around Irvington today, you will see many homes with signs marking them as "Century Homes," meaning they have been in the neighborhood for 100 years. And, a few select abodes have been added to the National Register of Historic Places. Thanks to the diverse collection of well-maintained arts-and-crafts, craftsman and colonial revival homes, the entire Irvington district itself has been nominated this year to be one of the few neighborhoods included in the National Register.
Each May, you can get an inside look at some of the homes if you come for a stroll through the Irvington Home Tour.
But it is not just the homes and impressive tree-lined streets....there is a lot to love in Irvington. The Irvington Club has been around since 1898, providing tennis courts and more to local residents. Irving Park, which used to be a racetrack, offers field for nearly every sport and an off-leash dog run. And, you can keep up to date on the goings-on around Irvington via the Irvington Community Association.
Time for basic goodness. Irvington is very convenient to shopping and restaurants on Alberta, Fremont and Broadway. The MAX is located close-by at Lloyd Center. Property values are strong, but affordable deals can still be found on the outskirts of the neighborhood (buy low in a good neighborhood, is what I always say).
In closing, I have to share one of my favorite Irvington moments that I think represents the neighborhood. We were walking home and saw a cat sleeping in the middle of the cobblestoned street. That is how calm and quiet it is. We walked by, scratched its head for a little purr, and finished the stroll thinking how nice it would be to buy a home in Irvington one day.
Everyone loves Irvington, including me. It is historic, has incredible homes, and is filled with trees, trees, and more trees. A nightly walk through the Irvington district does my soul good.
It is very historic. It was founded in the late 1800s as one of the first upper middle class neighborhoods in Portland, thanks to the burgeoning trolley car system that cost only a nickel (which is five cents more than riding the MAX from Irvington into downtown these days in the fare free zone!)
Walking around Irvington today, you will see many homes with signs marking them as "Century Homes," meaning they have been in the neighborhood for 100 years. And, a few select abodes have been added to the National Register of Historic Places. Thanks to the diverse collection of well-maintained arts-and-crafts, craftsman and colonial revival homes, the entire Irvington district itself has been nominated this year to be one of the few neighborhoods included in the National Register.
Each May, you can get an inside look at some of the homes if you come for a stroll through the Irvington Home Tour.
But it is not just the homes and impressive tree-lined streets....there is a lot to love in Irvington. The Irvington Club has been around since 1898, providing tennis courts and more to local residents. Irving Park, which used to be a racetrack, offers field for nearly every sport and an off-leash dog run. And, you can keep up to date on the goings-on around Irvington via the Irvington Community Association.
Time for basic goodness. Irvington is very convenient to shopping and restaurants on Alberta, Fremont and Broadway. The MAX is located close-by at Lloyd Center. Property values are strong, but affordable deals can still be found on the outskirts of the neighborhood (buy low in a good neighborhood, is what I always say).
In closing, I have to share one of my favorite Irvington moments that I think represents the neighborhood. We were walking home and saw a cat sleeping in the middle of the cobblestoned street. That is how calm and quiet it is. We walked by, scratched its head for a little purr, and finished the stroll thinking how nice it would be to buy a home in Irvington one day.
Tuesday, July 20, 2010
Moving Day Tips
OK...let's cut to the chase. Buying a house is all about moving in and making it a home. The searching is done, the inspections are in, the papers are signed, and the keys are in hand. But there is one more hurdle, the one you might have been dreading the most all along--moving day!
Moving is one of the most stressful things a person can endure. But, some planning ahead can help make things go smoother. I hope these tips will help make a stressful event into the first day of great memories in your new home.
•Before the big day, set up your utility accounts, notify your banks, and submit the address change to the post office. As your Realtor, I can help you out with this.
•Have cash on hand, and make sure to have more than you expect to spend. You will need to pay for a moving van, gas along the way, food for all of your helpers, and those unexpected costs that pop up (I always hear about people moving into a new home and realizing they need a shower curtain!).
•Make sure your pets are happy. Limit them to one empty room and move them out last. And, make sure to "unpack" them first in a safe spot where they won't be in the way. If you have cats, my vet recommends Felaway, a synthetic pheromone that calms the kitties. We used it and it worked like a charm.
•Plan your route. Think about traffic patterns. If you are moving to an area with a lot of traffic, it might be best to avoid rush hour. And, if you have a big huge long moving truck, think about where it will be parked. Some cities will issue you a special parking permit so you cna block off the sidewalk with your truck, if necessary.
•If it is a long drive, check in with a friend or relative along the way, and select someone who might be able to help you out of a jam should one arise.
•Don't rush the unpacking. Take care of your family and pets so you can enjoy the first night in your new home.
As your Realtor, I'm always happy to help with the move. Let me know what I can do. And, don't forget...lift with your legs, not with your back!
Moving is one of the most stressful things a person can endure. But, some planning ahead can help make things go smoother. I hope these tips will help make a stressful event into the first day of great memories in your new home.
•Before the big day, set up your utility accounts, notify your banks, and submit the address change to the post office. As your Realtor, I can help you out with this.
•Have cash on hand, and make sure to have more than you expect to spend. You will need to pay for a moving van, gas along the way, food for all of your helpers, and those unexpected costs that pop up (I always hear about people moving into a new home and realizing they need a shower curtain!).
•Make sure your pets are happy. Limit them to one empty room and move them out last. And, make sure to "unpack" them first in a safe spot where they won't be in the way. If you have cats, my vet recommends Felaway, a synthetic pheromone that calms the kitties. We used it and it worked like a charm.
•Plan your route. Think about traffic patterns. If you are moving to an area with a lot of traffic, it might be best to avoid rush hour. And, if you have a big huge long moving truck, think about where it will be parked. Some cities will issue you a special parking permit so you cna block off the sidewalk with your truck, if necessary.
•If it is a long drive, check in with a friend or relative along the way, and select someone who might be able to help you out of a jam should one arise.
•Don't rush the unpacking. Take care of your family and pets so you can enjoy the first night in your new home.
As your Realtor, I'm always happy to help with the move. Let me know what I can do. And, don't forget...lift with your legs, not with your back!
Friday, July 16, 2010
Sunday Open House--July 18--1pm to 3pm
I will be holding an open house this Sunday, July 18 from 1pm to 3pm for my colleague Ron Holbrook.
The address is 3322 SE 164th Ave between Division and Powell.
This listing is a 4 bedroom, 2 bath home close to Powell Butte, and the price is $169,900. This home is move-in ready with a large family room and kitchen area with a fireplace. The yard is so big it provides for RV parking. This is an FHA short sale and the bank has issued an approval to participate. All that is a needed is a solid offer to get final approval, so the closing should be very quick.
Swing by this Sunday to see this great home. If you have any questions or need anything, do not hesitate to ask. I'm always happy to help!
Swing by this Sunday to see this great home. If you have any questions or need anything, do not hesitate to ask. I'm always happy to help!
Thursday, July 15, 2010
The FHA 203k Fixer Loan is Not an Urban Legend
The FHA 203k “fixer loan” is not an urban legend. It exists right here in Portland.
For years, buyers have been asking me about the possibly mythical FHA fixer loan they had heard about. Like a classic urban legend, everyone seemed to know someone who knew someone who they thought might have used it. I called around and asked, but no one would go on record. No proof of its existence popped up. Until now.
The Pacific Northwest’s own HomeStreet Bank is doing the FHA 203k loan. And they are closing them in approximately 45 days. And, they are not difficult.
In short, buyers who qualify for an FHA loan can get the FHA 203k loan to make improvements to the property they are buying. The loan covers the purchase price amount and the improvement amounts, all with the same great rates and guarantees of a standard FHA loan.
The 203k isn’t limited to major fixers, either. You can use them for new appliances, countertops and cabinets. You can use the 203k for new floors or carpets. New decks and landscaping. New windows and doors.
Of course, you can also use the 203k for major rehab projects, too. And, that is why there are two forms of the 203k loan. There is the “streamline” version, which is limited to projects under $35,000 that do not include structural rehab that would require non-trade permits or plan review. The “standard” 203k is for major structural repairs or any projects totaling over $35,000.
The upside is that you are still getting a low fixed rate FHA loan with just 3.5% down. The seller can still contribute up to 6% for closing costs. You can even refinance your existing mortgage using a 203k loan, which provides a great alternative to home equity lines of credit, which are nearly impossible to get in this market.
The downsides are minimal yet realistic. Your down payment will be a little bit higher since you are getting a bigger loan, but you are financing the work at a low fixed rate. Mortgage insurance is required. Permits must be issued and paid for before close of escrow, but that can be reimbursed out of the loan draw. And, the home must meet FHA basic health and safety standards, like any FHA loan. That means you have to fix the leaky roof if you are putting in the nice new granite countertops.
This is just a summary, and I would happy to talk to any homebuyers who are interested in learning more about how to use this simple and affordable approach to buying homes that need a little work. Give me a call if you would like to know more. I’m always happy to help.
For years, buyers have been asking me about the possibly mythical FHA fixer loan they had heard about. Like a classic urban legend, everyone seemed to know someone who knew someone who they thought might have used it. I called around and asked, but no one would go on record. No proof of its existence popped up. Until now.
The Pacific Northwest’s own HomeStreet Bank is doing the FHA 203k loan. And they are closing them in approximately 45 days. And, they are not difficult.
In short, buyers who qualify for an FHA loan can get the FHA 203k loan to make improvements to the property they are buying. The loan covers the purchase price amount and the improvement amounts, all with the same great rates and guarantees of a standard FHA loan.
The 203k isn’t limited to major fixers, either. You can use them for new appliances, countertops and cabinets. You can use the 203k for new floors or carpets. New decks and landscaping. New windows and doors.
Of course, you can also use the 203k for major rehab projects, too. And, that is why there are two forms of the 203k loan. There is the “streamline” version, which is limited to projects under $35,000 that do not include structural rehab that would require non-trade permits or plan review. The “standard” 203k is for major structural repairs or any projects totaling over $35,000.
The upside is that you are still getting a low fixed rate FHA loan with just 3.5% down. The seller can still contribute up to 6% for closing costs. You can even refinance your existing mortgage using a 203k loan, which provides a great alternative to home equity lines of credit, which are nearly impossible to get in this market.
The downsides are minimal yet realistic. Your down payment will be a little bit higher since you are getting a bigger loan, but you are financing the work at a low fixed rate. Mortgage insurance is required. Permits must be issued and paid for before close of escrow, but that can be reimbursed out of the loan draw. And, the home must meet FHA basic health and safety standards, like any FHA loan. That means you have to fix the leaky roof if you are putting in the nice new granite countertops.
This is just a summary, and I would happy to talk to any homebuyers who are interested in learning more about how to use this simple and affordable approach to buying homes that need a little work. Give me a call if you would like to know more. I’m always happy to help.
Wednesday, July 14, 2010
Oregon's New Carbon Monoxide Rules for Homes and Rentals
As you may have heard, the State of Oregon implemented some strict new rules this year regarding carbon monoxide detectors. This affects both homesellers and landlords with rental properties. Here is a quick summary of the new laws. And, here is the official Carbon Monoxide Q&A on the state website.
People who are selling homes that include carbon monoxide sources must have one or more properly functioning carbon monoxode detector alarms before transfering the title. These detectors are also required in new construction homes and homes undergoing major renovation. Landlords must install detector alarms in any rental that includes a carbon monoxide source.
These include properties with attached garages, as cars can be a source of carbon monoxide. Other sources include appliances and heaters powered by petroleum, coal or wood and equipment powered by gasoline or internal combustion engines. The only real exception to this law is a property that is completely electric that does not have an enclosed garage.
The alarms should be placed in an electrical outlet close to the floor within 15 feet of any bedroom or sleeping area. Usually one per level will suffice, but larger floor plans may need more. In my opinion, a combination carbon monoxide/smoke alarm may not be very effective, as carbon monoxide tends to stay close to the floor and smoke rises.
Carbon monoxide alarms are easily available at most hardware stores and major retailers, like Fred Meyers. One unit will cost about $30, but you might get a discount if buying in bulk.
I also recommend testing your alarm regularly to make sure the back up battery works and so you know what it sounds like. One time, in a new home I was living in, we didn't even know we had one and the alarm went off when the battery died. We didn't know where the sound was coming from, and had we known we could have solved the problem more quickly.
If the alarm does go off, get everyone inside the home outside. Call either the gas company or 911, depending on the circumstnces.
If you have questions about this or any other Oregon state housing law or rule, please let me know. I'm always happy to help.
People who are selling homes that include carbon monoxide sources must have one or more properly functioning carbon monoxode detector alarms before transfering the title. These detectors are also required in new construction homes and homes undergoing major renovation. Landlords must install detector alarms in any rental that includes a carbon monoxide source.
These include properties with attached garages, as cars can be a source of carbon monoxide. Other sources include appliances and heaters powered by petroleum, coal or wood and equipment powered by gasoline or internal combustion engines. The only real exception to this law is a property that is completely electric that does not have an enclosed garage.
The alarms should be placed in an electrical outlet close to the floor within 15 feet of any bedroom or sleeping area. Usually one per level will suffice, but larger floor plans may need more. In my opinion, a combination carbon monoxide/smoke alarm may not be very effective, as carbon monoxide tends to stay close to the floor and smoke rises.
Carbon monoxide alarms are easily available at most hardware stores and major retailers, like Fred Meyers. One unit will cost about $30, but you might get a discount if buying in bulk.
I also recommend testing your alarm regularly to make sure the back up battery works and so you know what it sounds like. One time, in a new home I was living in, we didn't even know we had one and the alarm went off when the battery died. We didn't know where the sound was coming from, and had we known we could have solved the problem more quickly.
If the alarm does go off, get everyone inside the home outside. Call either the gas company or 911, depending on the circumstnces.
If you have questions about this or any other Oregon state housing law or rule, please let me know. I'm always happy to help.
Monday, July 12, 2010
My New House Needs a Title? But, I'm Not an Author!
The question running through many first time homebuyers minds when they get to escrow and title is, "I can't just own my home? I have to tell them HOW I will own it? What does that even mean?!?"
Time for a crash course in methods of holding title. When you own a house, there are many ways to own it, or, in other words, many ways to have the title in your name. If only it was as simple as owning an iPad or a puppy.
It is important to declare how title is held because a lot is at stake. One thing a title declaration does is make a pathway for what happens to ownership if something like a death or divorce happens. Holding title is a very complicated issue, so remember that this is a just a brief overview.
If a single person owns a home all alone, it is simple. Sort of. That is known as Tenancy in the Severalty. It is odd to think that one person leads to "severalty," which sounds like several, but legally severalty means separate and distinct. And, of course you are an owner and not a tenant, but Tenancy in the Severalty is the legal term what we use.
A married couple usually owns their home as a Tenancy in the Entirety. OK, again they aren't tenants, but lets move on the next big word. Entirety here means unity and totality. This requires both spouses to agree to a sale, so that one cannot sell their half without the other. It also provides some protections from creditors. When it comes to survivorship, the home will automatically become the sole property of the surviving spouse, aka Tenancy in the Severalty. If each spouse wants to leave their interest in the home to someone else, they should consider holding title as Tenancy in Common.
So, what is a Tenancy in Common, then? Again, not tenants the way we normally think of tenants. When a property is held as a Tenancy in Common, there can be multiple owners with different interests. For instance, four people could own a property, with one person owning 40% and the other three owning 20% each. Each person can sell or will their own interest as they please. TICs are tough to market and sell, so you don't see them to often.
Do you also want to know about Joint Tenancy? Forget about it! Joint Tenancy is not a legal manner to hold title in Oregon at this time.
This is a very complicated topic, and I often refer people to their own lawyer or at least the title company for guidance in choosing the right form of title. Choosing title is just one of the many many big decisions a homebuyer has to make on the road to getting those keys in hamd. If you have questions about holding title, please let me know. I am always happy to help.
Time for a crash course in methods of holding title. When you own a house, there are many ways to own it, or, in other words, many ways to have the title in your name. If only it was as simple as owning an iPad or a puppy.
It is important to declare how title is held because a lot is at stake. One thing a title declaration does is make a pathway for what happens to ownership if something like a death or divorce happens. Holding title is a very complicated issue, so remember that this is a just a brief overview.
If a single person owns a home all alone, it is simple. Sort of. That is known as Tenancy in the Severalty. It is odd to think that one person leads to "severalty," which sounds like several, but legally severalty means separate and distinct. And, of course you are an owner and not a tenant, but Tenancy in the Severalty is the legal term what we use.
A married couple usually owns their home as a Tenancy in the Entirety. OK, again they aren't tenants, but lets move on the next big word. Entirety here means unity and totality. This requires both spouses to agree to a sale, so that one cannot sell their half without the other. It also provides some protections from creditors. When it comes to survivorship, the home will automatically become the sole property of the surviving spouse, aka Tenancy in the Severalty. If each spouse wants to leave their interest in the home to someone else, they should consider holding title as Tenancy in Common.
So, what is a Tenancy in Common, then? Again, not tenants the way we normally think of tenants. When a property is held as a Tenancy in Common, there can be multiple owners with different interests. For instance, four people could own a property, with one person owning 40% and the other three owning 20% each. Each person can sell or will their own interest as they please. TICs are tough to market and sell, so you don't see them to often.
Do you also want to know about Joint Tenancy? Forget about it! Joint Tenancy is not a legal manner to hold title in Oregon at this time.
This is a very complicated topic, and I often refer people to their own lawyer or at least the title company for guidance in choosing the right form of title. Choosing title is just one of the many many big decisions a homebuyer has to make on the road to getting those keys in hamd. If you have questions about holding title, please let me know. I am always happy to help.
Friday, July 9, 2010
Neighborhood Focus--Buckman
Last weekend I was out wandering, as I am keen to do on a beautiful Portland morning, and I found my self looking around Buckman. And, my first thought was, "Buckman? I could live here!"
Buckman is located primarily between the Belmont/Hawthorne area and the Willamette River. Being on the outskirts of those hip neighborhoods, it has a more funky flair. There are beautiful old Portland homes with wicked character that looked lived in a comforting way. The owner's personality shines through and you can almost imagine who lives in each house just from the cars and flags and toys you can see at each home.
It is no surprise that such an expressive and unique neighborhood is also home to one of Portland's arts magnet schools, Buckman Arts Focus Elementary. That is even more fitting since the neighborhood is named after early school board member Cyrus Buckman, an orchardist from the late 1800s.
There is a lot to do in the immediate neighborhood, too, without even venturing into nearby Hawthorne or Belmont. The popular Doug Fir Lounge offers hip drinks and cool music, there is rockabilly at Duff's Garage, and bowling and fine food at Grand Central. And who wouldn't want to live walking distance from Voodoo Doughnuts?
Get involved with the Buckman community by checking in with the neighborhood association, or maybe hang out at one of the many local parks, like Buckman Field or Col. Summers Park.
And, if you love Buckman as much as many of its residents do, you never have to leave. Literally. You can eventually, umm, move your residence into the Lone Fir Cemetery.
If you want to find out more about Buckman or explore the streets with me sometime, get in touch.
Buckman is located primarily between the Belmont/Hawthorne area and the Willamette River. Being on the outskirts of those hip neighborhoods, it has a more funky flair. There are beautiful old Portland homes with wicked character that looked lived in a comforting way. The owner's personality shines through and you can almost imagine who lives in each house just from the cars and flags and toys you can see at each home.
It is no surprise that such an expressive and unique neighborhood is also home to one of Portland's arts magnet schools, Buckman Arts Focus Elementary. That is even more fitting since the neighborhood is named after early school board member Cyrus Buckman, an orchardist from the late 1800s.
There is a lot to do in the immediate neighborhood, too, without even venturing into nearby Hawthorne or Belmont. The popular Doug Fir Lounge offers hip drinks and cool music, there is rockabilly at Duff's Garage, and bowling and fine food at Grand Central. And who wouldn't want to live walking distance from Voodoo Doughnuts?
Get involved with the Buckman community by checking in with the neighborhood association, or maybe hang out at one of the many local parks, like Buckman Field or Col. Summers Park.
And, if you love Buckman as much as many of its residents do, you never have to leave. Literally. You can eventually, umm, move your residence into the Lone Fir Cemetery.
If you want to find out more about Buckman or explore the streets with me sometime, get in touch.
Thursday, July 8, 2010
The $8,000 Tax Credit is Gone. Now What?
April 30, 2010 was probably the busiest day of real estate negotiations in many many months. The $8,000 federal tax credit expired that day. Homebuyers had to have an accepted offer and officially be "in contract" on that date to get the tax credit.
Due to the increased buyers activity, sales prices swelled a bit and it became somewhat of a seller's market. There were competitive multiple offers on some houses. And, sellers knew they had buyers desperate for that tax credit in a weak negotiating spot.
Now that the tax credit is gone, you might be wondering what is going on. Well, sales dipped some, but the gans in March and April were unnaturally high due to that tax credit.
And, even better, prices have dropped. In fact, I see that many homes are probably priced at least $8,000 less than they would have been before April 30th. So, would you rather have a price reduction in buyers market or a tax credit in a seller's market?
I must admit....I have a hidden agenda here. The real point of my posting today is to point out that there are so many great resources for first time homebuyers in Portland that you probably won't even miss the tax credit.
Probably the best starting point for first time homebuyers in the Portland metro area is the Portland Housing Center. PHC is a non-profit housing center that provides resources to first time homebuyers, providing information, counseling, and guidance on nearly every step that comes up during the homebuying process--from getting your finances together to getting the keys in your hand.
Some of my favorite programs at the Portland Housing Center include:
-competitive fixed-rate loans from a non-profit source
-downpayment savings match--save $2000 and get $6000 in matching funds!
-mortgage assistance program to avoid mortgage insurance
-classes on getting your finances in order
-direction to additional city and county resources you may qualify for
There is a lot to offer at Portland Housing Center. I am confident that if you combine the current buyer's market with some of their programs, you are going to save far more than $8,000 when buying a house.
Due to the increased buyers activity, sales prices swelled a bit and it became somewhat of a seller's market. There were competitive multiple offers on some houses. And, sellers knew they had buyers desperate for that tax credit in a weak negotiating spot.
Now that the tax credit is gone, you might be wondering what is going on. Well, sales dipped some, but the gans in March and April were unnaturally high due to that tax credit.
And, even better, prices have dropped. In fact, I see that many homes are probably priced at least $8,000 less than they would have been before April 30th. So, would you rather have a price reduction in buyers market or a tax credit in a seller's market?
I must admit....I have a hidden agenda here. The real point of my posting today is to point out that there are so many great resources for first time homebuyers in Portland that you probably won't even miss the tax credit.
Probably the best starting point for first time homebuyers in the Portland metro area is the Portland Housing Center. PHC is a non-profit housing center that provides resources to first time homebuyers, providing information, counseling, and guidance on nearly every step that comes up during the homebuying process--from getting your finances together to getting the keys in your hand.
Some of my favorite programs at the Portland Housing Center include:
-competitive fixed-rate loans from a non-profit source
-downpayment savings match--save $2000 and get $6000 in matching funds!
-mortgage assistance program to avoid mortgage insurance
-classes on getting your finances in order
-direction to additional city and county resources you may qualify for
There is a lot to offer at Portland Housing Center. I am confident that if you combine the current buyer's market with some of their programs, you are going to save far more than $8,000 when buying a house.
Wednesday, July 7, 2010
Why You Shouldn't Buy a House
I am going to say something not a lot of Realtors will say. Wait for it. Hang on. almost there. Are you ready?
Not everyone should buy a house.
I know, I know. You are thinking this particular Realtor must be crazy. Or that he has some bait-and-switch trick up his sleeve. But no. I will even say it again. Not everyone should buy a house.
Obviously, one of the main reasons not to buy a house is if you can't afford it. Even if interest rates are historically low, like they are now, you should not buy a house if you don't have the small amount money necessary for a down payment on an FHA loan or the income for the monthly payments on principal and interest (much of which is tax-deductible).
Another reason is that in some regions of the country it is actually cheaper to rent than to buy a home. Even considering the tax advantages of home ownership and equity building that can happen when buying a home in a low market such as this one. Also, it might be easier to rent to have access to great schools.
Sometimes the timing isn't right. On this topic, I will get personal. We are renting for a year until we decide what the right Portland neighborhood is for us to buy in. Even though we have spent a great deal of time here over the last ten years, we need to spend some more time living here to know exactly where we want to be.
The point I'm trying to make is that there are many many different reasons for buying a home--or not buying a home. And it is important to know what your needs are before making one of the biggest purchases of your life. Most people are buying a home and not a financial investment. Even though it is a buyer's market with a great supply of homes for sale, some of the lowest interest rates anyone has ever seen, and solid reliable loan programs, now may not be the right time for you to buy a home.
If you would like to discuss your housing needs to see if you are ready to consider buying a home this year or next year, let me know. I'm always happy to help.
Not everyone should buy a house.
I know, I know. You are thinking this particular Realtor must be crazy. Or that he has some bait-and-switch trick up his sleeve. But no. I will even say it again. Not everyone should buy a house.
Obviously, one of the main reasons not to buy a house is if you can't afford it. Even if interest rates are historically low, like they are now, you should not buy a house if you don't have the small amount money necessary for a down payment on an FHA loan or the income for the monthly payments on principal and interest (much of which is tax-deductible).
Another reason is that in some regions of the country it is actually cheaper to rent than to buy a home. Even considering the tax advantages of home ownership and equity building that can happen when buying a home in a low market such as this one. Also, it might be easier to rent to have access to great schools.
Sometimes the timing isn't right. On this topic, I will get personal. We are renting for a year until we decide what the right Portland neighborhood is for us to buy in. Even though we have spent a great deal of time here over the last ten years, we need to spend some more time living here to know exactly where we want to be.
The point I'm trying to make is that there are many many different reasons for buying a home--or not buying a home. And it is important to know what your needs are before making one of the biggest purchases of your life. Most people are buying a home and not a financial investment. Even though it is a buyer's market with a great supply of homes for sale, some of the lowest interest rates anyone has ever seen, and solid reliable loan programs, now may not be the right time for you to buy a home.
If you would like to discuss your housing needs to see if you are ready to consider buying a home this year or next year, let me know. I'm always happy to help.
Friday, July 2, 2010
Neighborhood Focus--Sullivan's Gulch
For my first Neighborhood Focus, I will start with my own--Sullivan's Gulch.
One of the things I like most about Sullivan's Gulch is the look on people's faces when I tell them I live in Sullivan's Gulch. The look says that they have no idea what I am talking about. I could say that I live between Irvington and Hollywood, but it is more fun to say I live in Sullivan's Gulch. Makes it sound like I live in the Wild West.
In fact, Sullivan's Gulch was a part of Portland's Wild West in a way. It is named for Timothy Sullivan, one of the founders of Portland. He staked his claim in the 1850's right about where Highway 84 crosses NE 28th Avenue. Little did Timothy know that his camp would one day be home to a big Fred Meyer!
But Sullivan's Gulch has much more than a Fred Meyer store, of course. The main corridor is Broadway and that little stretch is home to many great little places, like Pets on Broadway, the Manhattan Cafe, Thatch Tiki Bar, and even a new store for jugglers! Another plus about the neighborhood is its close proximity to both the Hollywood and Lloyd Center MAX stations--so getting downtown is free, fast and easy.
The homes around Sullivan's Gulch are gorgeous. There is a wide variety of arts and crafts bungalows, most of them surrounded by great landscaping and gardens. It is a nice mix of smaller affordable starter homes and grander estates.
Even if I didn't live there, Sullivan's Gulch would definitely be one of my favorite walking neighborhoods. Come check it out.
One of the things I like most about Sullivan's Gulch is the look on people's faces when I tell them I live in Sullivan's Gulch. The look says that they have no idea what I am talking about. I could say that I live between Irvington and Hollywood, but it is more fun to say I live in Sullivan's Gulch. Makes it sound like I live in the Wild West.
In fact, Sullivan's Gulch was a part of Portland's Wild West in a way. It is named for Timothy Sullivan, one of the founders of Portland. He staked his claim in the 1850's right about where Highway 84 crosses NE 28th Avenue. Little did Timothy know that his camp would one day be home to a big Fred Meyer!
But Sullivan's Gulch has much more than a Fred Meyer store, of course. The main corridor is Broadway and that little stretch is home to many great little places, like Pets on Broadway, the Manhattan Cafe, Thatch Tiki Bar, and even a new store for jugglers! Another plus about the neighborhood is its close proximity to both the Hollywood and Lloyd Center MAX stations--so getting downtown is free, fast and easy.
The homes around Sullivan's Gulch are gorgeous. There is a wide variety of arts and crafts bungalows, most of them surrounded by great landscaping and gardens. It is a nice mix of smaller affordable starter homes and grander estates.
Even if I didn't live there, Sullivan's Gulch would definitely be one of my favorite walking neighborhoods. Come check it out.
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