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Monday, November 8, 2010
Wednesday, September 15, 2010
Welcome to Portland--Part 2
Hello again....I am back with more tips and information for people moving to the beautiful city of Portland, Oregon. Welcome!
In Part 1 of my tips for Portland newbies, we covered such topics as DMV and car registration, the different power companies, all those bridges, food carts, and more.
Today, I want to feature information for those of you who may not even need to register a car. The public transportation in Portland is fantastic. The Tri-Met bus lines are affordable and stretch throughout the region, running on a very regular basis. The MAX is a wonderful lightrail system that will zip you from the far reaches of Portland metro to downtown, the airport, the zoo and many other important destinations. You can even ride the MAX line through downtown for free! To supplement these two great systems are the Portland Streetcar, connecting OHSU and PSU to the Pearl District and NW 23rd, and the WES line, connecting commuters from Beaverton to Wilsonville.
And, you can easily get around this town on foot and by bike. It is highly walkable and rideable. The pedestrian and cyclist communities are very well-organized and vocal, working hard for bike lanes and safety. Check out Portland Afoot and Bike Portland for more resources. We also enjoy the walks suggested in the book Walk There.
Through a combination of public transportation, walking and light driving, I only put gas in my car about every two weeks or so, which makes me happy and healthy.
Another interesting thing you should know about Portland is that it is in fact included in two different counties: Multnomah County and Washington County. In fact many cities in the Portland metropolitan area straddle two counties. Because of that, there is an additional government entity here, simply called Metro, an elected government that coordinates activities and resources between cities and counties throughout the region.
Speaking of elections, Oregon is a "vote by mail" state, meaning that there are no polling places on election day. Your ballot is mailed to you in mid-October, and you must mail it or return it to your county election board in time for election day. While this is convenient and has led to higher voter turnout, I must admit that I miss the excitement of the polling place on election day.
Time for a quick pronunciation guide:
Couch Street="Kooch Street"
Willammette="Wil-LAMB-et"
Glisan="Glee-son"
Aloha="uh-LOW-uh"
Be careful out there...Portland has a number of place names with interesting pronunciations. Saying them incorrectly will mark you as a newbie or tourist!
That is it for today's guide to settling in to Portland. There is always more to share and learn, and I will back soon with part 3.
In the meantime, if you ever have questions about moving to Portland or settling in to town, please let me know. I'm always happy to help!
In Part 1 of my tips for Portland newbies, we covered such topics as DMV and car registration, the different power companies, all those bridges, food carts, and more.
Today, I want to feature information for those of you who may not even need to register a car. The public transportation in Portland is fantastic. The Tri-Met bus lines are affordable and stretch throughout the region, running on a very regular basis. The MAX is a wonderful lightrail system that will zip you from the far reaches of Portland metro to downtown, the airport, the zoo and many other important destinations. You can even ride the MAX line through downtown for free! To supplement these two great systems are the Portland Streetcar, connecting OHSU and PSU to the Pearl District and NW 23rd, and the WES line, connecting commuters from Beaverton to Wilsonville.
And, you can easily get around this town on foot and by bike. It is highly walkable and rideable. The pedestrian and cyclist communities are very well-organized and vocal, working hard for bike lanes and safety. Check out Portland Afoot and Bike Portland for more resources. We also enjoy the walks suggested in the book Walk There.
Through a combination of public transportation, walking and light driving, I only put gas in my car about every two weeks or so, which makes me happy and healthy.
Another interesting thing you should know about Portland is that it is in fact included in two different counties: Multnomah County and Washington County. In fact many cities in the Portland metropolitan area straddle two counties. Because of that, there is an additional government entity here, simply called Metro, an elected government that coordinates activities and resources between cities and counties throughout the region.
Speaking of elections, Oregon is a "vote by mail" state, meaning that there are no polling places on election day. Your ballot is mailed to you in mid-October, and you must mail it or return it to your county election board in time for election day. While this is convenient and has led to higher voter turnout, I must admit that I miss the excitement of the polling place on election day.
Time for a quick pronunciation guide:
Couch Street="Kooch Street"
Willammette="Wil-LAMB-et"
Glisan="Glee-son"
Aloha="uh-LOW-uh"
Be careful out there...Portland has a number of place names with interesting pronunciations. Saying them incorrectly will mark you as a newbie or tourist!
That is it for today's guide to settling in to Portland. There is always more to share and learn, and I will back soon with part 3.
In the meantime, if you ever have questions about moving to Portland or settling in to town, please let me know. I'm always happy to help!
Wednesday, September 8, 2010
The Simpsons are...going to Portland!
One of the best reasons to live in Portland is because The Simpsons are from here. Yes, The Simpsons. Those Simpsons. Not those other Simpsons, but The Simpsons.
For years, it was debated which Springfield was the actual Springfield that The Simpsons live in. Upon the release of The Simpsons Movie, Fox announced that Springfield, Vermont was the actual Springfield, but that was just a publicity stunt. Portland, Oregon is the real Springfield, because this is where creator Matt Groening grew up, and Portland inspired many characters and places in the series. And, here is the proof!
--Ned Flanders is named after NE Flanders.
--Reverend Lovejoy is based on Lovejoy Street, and AJ Lovejoy, one of the city founders.
--Montgomery Burns may have lived on SW Montgomery or near Montgomery Park.
--Mayor Quimby is inspired by both NW Quimby and Ramona Quimby, as seen in the children's literature of fellow Portlander Beverly Cleary.
--Principal Seymour Skinner is a combination of SW Seymour and Eugene Skinner, another Portland pioneer.
--Sideshow Bob's last name is Terwilliger, as in SW Terwilliger.
--Milhouse Van Houten is named for N Van Houten in North Portland.
--Also hailing from North Portland is Wayland Smithers of N. Wayland Street.
--And, of course, SE Simpson Street.
There are many others, which you can peruse right here at The Simpsons Archive.
If you want to know even more Simpsons-iana and the Portland connections, read this great reminisence by Matt Groening about his formative years in Portland, via the Portland Tribune.
There are so many wonderful things about living in Portland, and this is just one more of them. If you ever have questions about living in Portland or Portland real estate, just let me know. I'm always happy to help.
For years, it was debated which Springfield was the actual Springfield that The Simpsons live in. Upon the release of The Simpsons Movie, Fox announced that Springfield, Vermont was the actual Springfield, but that was just a publicity stunt. Portland, Oregon is the real Springfield, because this is where creator Matt Groening grew up, and Portland inspired many characters and places in the series. And, here is the proof!
--Ned Flanders is named after NE Flanders.
--Reverend Lovejoy is based on Lovejoy Street, and AJ Lovejoy, one of the city founders.
--Montgomery Burns may have lived on SW Montgomery or near Montgomery Park.
--Mayor Quimby is inspired by both NW Quimby and Ramona Quimby, as seen in the children's literature of fellow Portlander Beverly Cleary.
--Principal Seymour Skinner is a combination of SW Seymour and Eugene Skinner, another Portland pioneer.
--Sideshow Bob's last name is Terwilliger, as in SW Terwilliger.
--Milhouse Van Houten is named for N Van Houten in North Portland.
--Also hailing from North Portland is Wayland Smithers of N. Wayland Street.
--And, of course, SE Simpson Street.
There are many others, which you can peruse right here at The Simpsons Archive.
If you want to know even more Simpsons-iana and the Portland connections, read this great reminisence by Matt Groening about his formative years in Portland, via the Portland Tribune.
There are so many wonderful things about living in Portland, and this is just one more of them. If you ever have questions about living in Portland or Portland real estate, just let me know. I'm always happy to help.
Wednesday, September 1, 2010
FHA is Changing The Rules of Mortgage Insurance
On October 4th, Your FHA Buying Power is Going Down.
FHA loans will have higher monthly payments after October 3rd due to rule changes regarding Mortgage Insurance (MI). Both Upfront and Monthly MI are changing.
For example, this means that if you can afford a $225,000 house today, you will only be able to afford a $216,500 house in October.
The Good News: Upfront MI, which is usually added onto the loan amount, is going down from 2.25% to 1.0%. Since this cost is usually added onto the total loan amount, your total loan amount will be noticeably lower.
The Bad News: Monthly MI, which used to be determined by a factor of .55, is going up to .90. That means a monthly amount equal to 90 cents for every thousand dollars on the loan. This affects the monthly payment. For most borrowers taking advantage of the low down payments of FHA insured loans, the monthly payment usually has more impact than the total amount of the loan.
Let's look at a home that you want to purchase for $225,000. The FHA down payment of 3.5% would be $7,875, leading to a base loan amount of $217,125. The Upfront MI will actually reduce from $4,885 to $2,171. Remember, this amount is added to the loan, and results in a monthly payment about $13 less. However, the Monthly MI will increase from $99.52 to $162.84.
This all comes down to a monthly payment, including principal and interest plus MI, of $1,273.98, which is about $50 more per month than current rates. This is a reduction in your buying power, and results is the rough equivalent of being able to buy a house for $225,000 now or only being able to afford a $216,500 house after October 4th. Of course, these numbers will change for different loan amounts, so please let me know if you have any questions.
Argh...it is hard to write narratively about numbers. So....if you would like a handy flyer with an easy-to-read chart, please let me know and I can send it along.
Now, it is not too late to get the current FHA MI payments.
Your FHA loan doesn’t have to be complete by October 4th, but it must have an FHA Case Number, and an FHA Case Number can be obtained once your offer to buy is accepted.
This is a complicated issue to write about, so please let me know if you have any questions. This is an important change for a popular loan product, and I want you to know more about it. Thanks to Kristin Brown at Mortgage Trust for her valuable information and guidance on this topic.
FHA loans will have higher monthly payments after October 3rd due to rule changes regarding Mortgage Insurance (MI). Both Upfront and Monthly MI are changing.
For example, this means that if you can afford a $225,000 house today, you will only be able to afford a $216,500 house in October.
The Good News: Upfront MI, which is usually added onto the loan amount, is going down from 2.25% to 1.0%. Since this cost is usually added onto the total loan amount, your total loan amount will be noticeably lower.
The Bad News: Monthly MI, which used to be determined by a factor of .55, is going up to .90. That means a monthly amount equal to 90 cents for every thousand dollars on the loan. This affects the monthly payment. For most borrowers taking advantage of the low down payments of FHA insured loans, the monthly payment usually has more impact than the total amount of the loan.
Let's look at a home that you want to purchase for $225,000. The FHA down payment of 3.5% would be $7,875, leading to a base loan amount of $217,125. The Upfront MI will actually reduce from $4,885 to $2,171. Remember, this amount is added to the loan, and results in a monthly payment about $13 less. However, the Monthly MI will increase from $99.52 to $162.84.
This all comes down to a monthly payment, including principal and interest plus MI, of $1,273.98, which is about $50 more per month than current rates. This is a reduction in your buying power, and results is the rough equivalent of being able to buy a house for $225,000 now or only being able to afford a $216,500 house after October 4th. Of course, these numbers will change for different loan amounts, so please let me know if you have any questions.
Argh...it is hard to write narratively about numbers. So....if you would like a handy flyer with an easy-to-read chart, please let me know and I can send it along.
Now, it is not too late to get the current FHA MI payments.
Your FHA loan doesn’t have to be complete by October 4th, but it must have an FHA Case Number, and an FHA Case Number can be obtained once your offer to buy is accepted.
This is a complicated issue to write about, so please let me know if you have any questions. This is an important change for a popular loan product, and I want you to know more about it. Thanks to Kristin Brown at Mortgage Trust for her valuable information and guidance on this topic.
Wednesday, August 18, 2010
Welcome to Portland--A Guide for New Residents--Part One
Portland author Chuck Palahniuk once wrote a terrific off-the-beaten path guide to Stumptown called Fugitives and Refugees, and that might be the best assessment yet of who lives in this incredible, eclectic, funky and beautiful town. A lot of people seem to be here from somewhere else. I moved here for the environment, for the food, for the family and friends, for the strangers yet to be my friends, for the weather and terrain, and to be with fellow fugitives and refugees who love the Portland area. (I even kinda moved here to be somewhat geographically closer to Chuck Palahniuk, but it would be too creepy to admit that, right?)
So, why are you moving to Portland? I’m not here to convince you to move to Portland. I’m not here to tout all the magazine articles that declare Portland to be the best town in the US for walkers, for bicyclists, for foodies, for readers and writers, for artists, for techies, for environmentalists, etc, etc. If you are reading this, you probably already know that Portland is the place for you.
No matter what your reasons are, there are always some things to learn, and I want to share my experiences to help guide you. There are many travel guides and city guides, so I think of this as a “Welcome to Portland” guide.
In no particular order, here are some things you should know when you begin your new Portlandia life:
The DMV here is really nice and easy to use. I’m not kidding. Go check out the Yelp reviews of the DMV. People actually Yelp about their good experiences at the DMV here. If you have a license from another state, you will probably only need to take the written exam to get an Oregon driver’s license. Most of it is common sense, but do take the time to review the Oregon Driver Manual and take the online practice tests. When it is time to get your car registered, you need to have the smog system checked at the state-run DEQ facility. If you are from California, like me, you will find this very affordable and simple. Then go right to the DMV and register your car. This should all cost you about $300, and your car registration is good for 2 years.
There are two electric companies here, but you don’t get to choose which one you use. It depends on where you live. I live in the Northeast and use Pacific Power. Portland General Electric, which also has its name on the downtown ball park/soccer arena, handles electric in most other parts. One great way to find out which electric company to use, as well as other utilities and neighborhood stats, is to visit the Portland Maps website.
Don’t be afraid to eat at one of the 500+ food carts scattered about town. The food cart movement started here in Portland a few years ago, and they have quickly become an institution. Downtown is full of them, and there are “pods” of carts and single stands all over town. Every cuisine imaginable can be found if you look hard enough. On Hawthorne? Try the Hawaiian-Korean pulled pork stand. Up in Alberta? Stop by the French themed converted rail car or the now-famous Grilled Cheese Grill, where you can chow down in a converted yellow school bus.
Walk across one of the seven bridges crossing the Willamette. All of the bridges, except the freeway passovers, are bike and pedestrian friendly. Walking across the bridge, especially at sunset, is a great way to see the city views. And, when the bridge has to raise for a big ship passing under, an impromptu community forms during the wait. Maybe you will make a new friend on the bridge.
Want to know all the cool fun stuff going on in town? Follow Byron Beck’s blog . He’s got the lowdown on celebs in town, great new restaurants, can’t miss gallery events, political brouhahas and more.
While you are at it, follow Mayor Sam Adams on Twitter.
This is just the first part. I’ll be back with more tips on settling into your new life in Portland.
So, why are you moving to Portland? I’m not here to convince you to move to Portland. I’m not here to tout all the magazine articles that declare Portland to be the best town in the US for walkers, for bicyclists, for foodies, for readers and writers, for artists, for techies, for environmentalists, etc, etc. If you are reading this, you probably already know that Portland is the place for you.
No matter what your reasons are, there are always some things to learn, and I want to share my experiences to help guide you. There are many travel guides and city guides, so I think of this as a “Welcome to Portland” guide.
In no particular order, here are some things you should know when you begin your new Portlandia life:
The DMV here is really nice and easy to use. I’m not kidding. Go check out the Yelp reviews of the DMV. People actually Yelp about their good experiences at the DMV here. If you have a license from another state, you will probably only need to take the written exam to get an Oregon driver’s license. Most of it is common sense, but do take the time to review the Oregon Driver Manual and take the online practice tests. When it is time to get your car registered, you need to have the smog system checked at the state-run DEQ facility. If you are from California, like me, you will find this very affordable and simple. Then go right to the DMV and register your car. This should all cost you about $300, and your car registration is good for 2 years.
There are two electric companies here, but you don’t get to choose which one you use. It depends on where you live. I live in the Northeast and use Pacific Power. Portland General Electric, which also has its name on the downtown ball park/soccer arena, handles electric in most other parts. One great way to find out which electric company to use, as well as other utilities and neighborhood stats, is to visit the Portland Maps website.
Don’t be afraid to eat at one of the 500+ food carts scattered about town. The food cart movement started here in Portland a few years ago, and they have quickly become an institution. Downtown is full of them, and there are “pods” of carts and single stands all over town. Every cuisine imaginable can be found if you look hard enough. On Hawthorne? Try the Hawaiian-Korean pulled pork stand. Up in Alberta? Stop by the French themed converted rail car or the now-famous Grilled Cheese Grill, where you can chow down in a converted yellow school bus.
Walk across one of the seven bridges crossing the Willamette. All of the bridges, except the freeway passovers, are bike and pedestrian friendly. Walking across the bridge, especially at sunset, is a great way to see the city views. And, when the bridge has to raise for a big ship passing under, an impromptu community forms during the wait. Maybe you will make a new friend on the bridge.
Want to know all the cool fun stuff going on in town? Follow Byron Beck’s blog . He’s got the lowdown on celebs in town, great new restaurants, can’t miss gallery events, political brouhahas and more.
While you are at it, follow Mayor Sam Adams on Twitter.
This is just the first part. I’ll be back with more tips on settling into your new life in Portland.
Friday, August 13, 2010
Beaverton Open House--Sunday August 15th--1pm to 3pm
I will be holding open a beautiful Beaverton home on Sunday from 1 to 3pm at 16311 SW Cornelian Way in the Sexton Mountain neighborhood.
Priced at $335,000, this home has 5 bedrooms and 2 1/2 baths on two levels. The home has 3000 square feet on a nice sized lot. It is in great condition and has a wonderful view. Even better, this is a regular sale.
Don't miss this great Beaverton home!
Priced at $335,000, this home has 5 bedrooms and 2 1/2 baths on two levels. The home has 3000 square feet on a nice sized lot. It is in great condition and has a wonderful view. Even better, this is a regular sale.
Don't miss this great Beaverton home!
Thursday, August 12, 2010
The Paradox of Choice
As Americans, we thrive on choice. We want to choose the best shirt among hundreds of shirts at the store, the best car among dozens on the lot, the best spatula among all the spatulas at Kitchen Kaboodle. We research the best options on Consumer Reports, Yelp, and other valuable resources.
But, can too much choice be a problem? Can the challenge of so many choices actually prevent us from making a simple decision efficiently or even making one at all? I've walked into a store many times, only to give up my epxedition because there were too many choices.
In 2004, a book called the Paradox of Choice came out which addressed the psychology of consumer decision making. Among other ideas, it proposed that too many choices causes anxiety. The author goes on to assert that an abundance of opportunities can even cause depression and loneliness due to unfulfilled desires. And, choosing one good option over another perfectly fine option can lead the consumer to be despondent over missed opportunities, eventually enjoying all things less.
I've been thinking about this idea of the paradox of choice when I look at the current real estate market. We all know that there is a lot of housing inventory on the market, and that homebuyers are being very cautious. As Realtors, we see nothing but opportunity--lots of choice, great prices and crazy low interest rates--and we wonder why they aren't buying everything up. Consumer confidence in the economy is obviously an issue. People are worried that their jobs may not be there in a year and don't want to commit to a thirty year mortgage.
And, perhaps, there is too much choice out there for the real estate consumer. When there are 30 homes that meet your search criteria, how do you choose? Homebuying can cause a lot of anxiety under normal circumstances, but now buyers have to think about if they are buying the right house out of so many choices. They might also be concerned about the missed opportunity of what might come on the market tomorrow, next week or, even worse, after close of escrow. I think it might be easier for homebuyers in a more stable market when they may only have 5-7 houses that meet their criteria.
I'm no expert in the area of consumer psychology, but I've been fascinated by this idea of the paradox of choice since that book came out, based on my own consumer experiences. I would love to hear thoughts from homebuyers on this topic. What do you have to say about having an abundance of choice?
But, can too much choice be a problem? Can the challenge of so many choices actually prevent us from making a simple decision efficiently or even making one at all? I've walked into a store many times, only to give up my epxedition because there were too many choices.
In 2004, a book called the Paradox of Choice came out which addressed the psychology of consumer decision making. Among other ideas, it proposed that too many choices causes anxiety. The author goes on to assert that an abundance of opportunities can even cause depression and loneliness due to unfulfilled desires. And, choosing one good option over another perfectly fine option can lead the consumer to be despondent over missed opportunities, eventually enjoying all things less.
I've been thinking about this idea of the paradox of choice when I look at the current real estate market. We all know that there is a lot of housing inventory on the market, and that homebuyers are being very cautious. As Realtors, we see nothing but opportunity--lots of choice, great prices and crazy low interest rates--and we wonder why they aren't buying everything up. Consumer confidence in the economy is obviously an issue. People are worried that their jobs may not be there in a year and don't want to commit to a thirty year mortgage.
And, perhaps, there is too much choice out there for the real estate consumer. When there are 30 homes that meet your search criteria, how do you choose? Homebuying can cause a lot of anxiety under normal circumstances, but now buyers have to think about if they are buying the right house out of so many choices. They might also be concerned about the missed opportunity of what might come on the market tomorrow, next week or, even worse, after close of escrow. I think it might be easier for homebuyers in a more stable market when they may only have 5-7 houses that meet their criteria.
I'm no expert in the area of consumer psychology, but I've been fascinated by this idea of the paradox of choice since that book came out, based on my own consumer experiences. I would love to hear thoughts from homebuyers on this topic. What do you have to say about having an abundance of choice?
Wednesday, August 11, 2010
The Inspection Period
Your offer has been accepted, and you think it is smooth sailing to close of escrow right? Now the detective work begins! Time to find out everything you can about your potential new home.
You are now in the inspection contingency period, which provides you with the opportunity to look into all of the nooks and crannies of the house to make sure it is good condition. And, if you do find any significant faults, you have the ability to renegotiate or cancel the contract.
I'm assuming that you aren't an expert in foundations or furnaces or termites, and even if you are, you need to get objective qualified experts to inspect the home. But, what should you expect to inspect? Here is a general list of inspections to consider for your home. Of course, every home is different and may have unique needs, but these are key inspections to keep in mind.
General Home Inspection—An overall look at the basic systems in the house, from heating and electrical to roofs and windows. The general home inspection can sometimes lead to additional specialized inspections.
Roof—An examination of the age, style and condition of the roof. Even if it looks good to the naked eye, there could be problems with flashings and gutters.
Sewer Scope—This inspection looks at the plumbing connection from the private home to the city’s sewer system to find any possible leaks or seepage.
Pest and Structural—A investigation of any termite infestation, dry rot and other pesky pests. In Portland, this is often combined with the general home inspection.
Foundation—A detailed investigation of the home’s basic foundation and structural support systems. This should also include information on the grade of the lot and any potential drainage issues that can affect the foundation.
Furnace—An examination of the age, type and condition of the home’s heating and duct system.
Electrical—An examination of the age, type and condition of the home’s electrical system. With the our overwhelming electrical needs in this day and age, this can be very important, especially in older homes.
Plumbing—An examination of the age, type and condition of the home’s plumbing system.
The cost of each inspections can vary from free to several hundred dollars. I generally recommend that buyers budget about $750-$1000 for inspections. If you discover problems that would make living in the home an expensive problem, consider it the best money you ever spent!
If you need a referral to a qualified inspection, give me a call. I'm always happy to help.
You are now in the inspection contingency period, which provides you with the opportunity to look into all of the nooks and crannies of the house to make sure it is good condition. And, if you do find any significant faults, you have the ability to renegotiate or cancel the contract.
I'm assuming that you aren't an expert in foundations or furnaces or termites, and even if you are, you need to get objective qualified experts to inspect the home. But, what should you expect to inspect? Here is a general list of inspections to consider for your home. Of course, every home is different and may have unique needs, but these are key inspections to keep in mind.
General Home Inspection—An overall look at the basic systems in the house, from heating and electrical to roofs and windows. The general home inspection can sometimes lead to additional specialized inspections.
Roof—An examination of the age, style and condition of the roof. Even if it looks good to the naked eye, there could be problems with flashings and gutters.
Sewer Scope—This inspection looks at the plumbing connection from the private home to the city’s sewer system to find any possible leaks or seepage.
Pest and Structural—A investigation of any termite infestation, dry rot and other pesky pests. In Portland, this is often combined with the general home inspection.
Foundation—A detailed investigation of the home’s basic foundation and structural support systems. This should also include information on the grade of the lot and any potential drainage issues that can affect the foundation.
Furnace—An examination of the age, type and condition of the home’s heating and duct system.
Electrical—An examination of the age, type and condition of the home’s electrical system. With the our overwhelming electrical needs in this day and age, this can be very important, especially in older homes.
Plumbing—An examination of the age, type and condition of the home’s plumbing system.
The cost of each inspections can vary from free to several hundred dollars. I generally recommend that buyers budget about $750-$1000 for inspections. If you discover problems that would make living in the home an expensive problem, consider it the best money you ever spent!
If you need a referral to a qualified inspection, give me a call. I'm always happy to help.
Friday, July 30, 2010
Buy Emotionally, Justify Logically
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?
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?
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.
Wednesday, June 30, 2010
Lies, Damned Lies and Comparative Market Analyses
Part of the process in preparing a home for sale is to determine the price, of course. To help do this, I research the recent closed sales and active competitive listings. This is called a Competitive Market Analysis aka CMA.
When working on CMAs, I am always reminded of the old saying, "There are lies, damned lies and statistics." Sure, CMAs help guide us to find the right range when working with the seller to set a competitive price, but a lot of emotions play into the decision, too.
We want to see value in what we own and love--especially those things we are trying to sell. Our emotions are not always in sync with the market forces. We can easily assume more value based on our own experience with a home. We assume a higher perceived value from the improvements we have made. And, we all want a good story to tell...that our house got so many offers and broke the neighborhood sales record. And, sometimes we just need to net a higher amount than the market will bear.
It is in times likes these that I find it helps to drill down into those statistics in the MLS database. Often there are other defining features that guide prices which are not always easily apparent in the MLS.
One client I worked with could not abide the fact that their fabulous home was just half of one block into a less desirable school boundary. That particular dividing line meant a price difference of at least $50,000. (That other old saying--"Location, location location!")
In many neighborhoods, proximity to certain locations adds a lot of value. Here in Portland, many buyers want to be walking distance to New Seasons Market. There is no "New Seasons" field in our MLS, so we look at other homes close to a New Seasons location and see how much that affects price.
Also, here in Portland, an old oil tank for the heater can decrease value because they are so difficult and expensive to decommission, but it is not often easy to determine if there is one or not. Time to call out the folks with metal detectors to find out for sure.
A lot of research and statistics and little "going with your gut," and hopefully we land at a competitive price that makes the seller--and the market--happy.
When working on CMAs, I am always reminded of the old saying, "There are lies, damned lies and statistics." Sure, CMAs help guide us to find the right range when working with the seller to set a competitive price, but a lot of emotions play into the decision, too.
We want to see value in what we own and love--especially those things we are trying to sell. Our emotions are not always in sync with the market forces. We can easily assume more value based on our own experience with a home. We assume a higher perceived value from the improvements we have made. And, we all want a good story to tell...that our house got so many offers and broke the neighborhood sales record. And, sometimes we just need to net a higher amount than the market will bear.
It is in times likes these that I find it helps to drill down into those statistics in the MLS database. Often there are other defining features that guide prices which are not always easily apparent in the MLS.
One client I worked with could not abide the fact that their fabulous home was just half of one block into a less desirable school boundary. That particular dividing line meant a price difference of at least $50,000. (That other old saying--"Location, location location!")
In many neighborhoods, proximity to certain locations adds a lot of value. Here in Portland, many buyers want to be walking distance to New Seasons Market. There is no "New Seasons" field in our MLS, so we look at other homes close to a New Seasons location and see how much that affects price.
Also, here in Portland, an old oil tank for the heater can decrease value because they are so difficult and expensive to decommission, but it is not often easy to determine if there is one or not. Time to call out the folks with metal detectors to find out for sure.
A lot of research and statistics and little "going with your gut," and hopefully we land at a competitive price that makes the seller--and the market--happy.
Monday, June 28, 2010
Welcome to Beyond the Post
Well, as you can see from the text above and the text over there to the right (you know, by the big picture of me looking all Realtor-y), this is a blog about real estate. And it is a blog about Portland. So, Venn those two concepts together and most of the time it will be a blog about Portland real estate. And, sometimes it might be about a something I cooked up after the farmer's market, or a great movie I saw at the NW Film Center. We'll see. Check in once in awhile and see what is up. I will try hard not to post anything about the cats.
First things first. Preparing a new listing. I've been thinking a lot lately about how much goes in to getting a house ready for sale. Scratch that. I've been thinking about how much goes in to getting a home seller to actually choose you to be their Realtor. Believe me, a good agent will do a lot more than just tell you how much the commission is.
Some of the tasks I take on when preparing a listing include:
•Review and prepare comparable sales analysis
•Review and prepare comparable listings active in the market
•Research the average days on the market
•Obtain tax record and plat map information
•Research land use codes and deed restrictions
•Research current use and zoning
•Prepare marketing proposal
•Prepare a professional presentation with all of this information
Whew! Each of those could be its own posting. Any guesses on what I will write about next?
This is the detective work that I love about real estate. Are these topics you might like more information about regarding your own home? Let me know. I'd be happy to help.
First things first. Preparing a new listing. I've been thinking a lot lately about how much goes in to getting a house ready for sale. Scratch that. I've been thinking about how much goes in to getting a home seller to actually choose you to be their Realtor. Believe me, a good agent will do a lot more than just tell you how much the commission is.
Some of the tasks I take on when preparing a listing include:
•Review and prepare comparable sales analysis
•Review and prepare comparable listings active in the market
•Research the average days on the market
•Obtain tax record and plat map information
•Research land use codes and deed restrictions
•Research current use and zoning
•Prepare marketing proposal
•Prepare a professional presentation with all of this information
Whew! Each of those could be its own posting. Any guesses on what I will write about next?
This is the detective work that I love about real estate. Are these topics you might like more information about regarding your own home? Let me know. I'd be happy to help.
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