March 21, 2013

As a Portland real estate agent I’ve noticed that Radon testing is a growing trend, it has become more and more popular to test every home for Radon levels in the greater Portland Metro Area. It seems these days you can hardly find a home inspector that does not also include a Radon test option (for more money of course). I do not expect this trend to go away.

If you are selling a Portland home you can expect the buyer will most likely test your home for Radon levels! It is to your advantage to be prepared and perhaps conduct the test ahead of time so you know what you’re dealing with. (Surprises are never good for real estate transactions.) Radon mitigation (reducing the amount to a safe level) can run as low as 1500 but as high as 5 or 6 thousand dollars. Check the Portland Radon Map below to see the chances your home will fail the test.

If you are buying a Portland home you may be advised to test the home for dangerous levels of Radon before purchasing. To help you with that end, check the Portland Radon Map below.

Now I’ll share my insider information as a local Portland real estate agent. Please keep in mind I am not a Radon expert or a home inspector and you should visit the EPA website and educate yourself on the dangers of Radon. That being said, if the home does not have a basement, nearly 100% of the time the home will not fail the Radon test. The only time I’ve seen homes with crawlspaces fail a Radon test is when the home owner stops up his crawlspace vents. I highly – highly recommend everyone in Portland to stop insulating (covering up) their crawlspace vents. This may cause your utilities bills to rise a tiny amount, but it is worth it. A trapped crawlspace allows dangerous gases like Radon to build up and seep into the house (because they have no where else to go). If your home has a crawlspace, make sure the vents are clean and open (especially if you fall in a dangerous area on the Portland Radon Map). If you have a basement, test for Radon, simple as that. You need to test for the safety of whoever lives in the home.

If you are really curious about what Radon is and how it can be dangerous visit the EPA website (www.epa.gov). Here is a direct link to their Radon page.

Here is the Portland Radon Map by Zip Code (click to enlarge):

March 5th, 2013.

You just found the perfect home and it is priced at $300,000. Now what? Do you offer 275, 300, or even 310,000? The number one factor for making a great offer on a Portland home is knowing the DOM (days on market). If the sellers are asking fair market value and there are no other offers on the table you can follow this rule of thumb.

1-3 DOM (Days on Market)

You will need to offer full price or extremely close to it. Make sure your Portland buyers agent calls the listing agent to check if there are already multiple offers submitted.

4-14 DOM (Days on Market)

You will need to offer within 1% to 3% of asking price. At this point the home is still pretty new on the market and the sellers aren’t going to consider much less than they want. The sellers will generally wait at this point for something better.

15-31 DOM (Days on Market)

With this time frame you can consider 3% to 5% off asking price. The sellers are probably starting to worry they won’t sell their home, but it is still recent enough on the market they aren’t going to consider low ball offers.

32-60 DOM (Days on Market)

At this point you can consider asking 4% to 7% off the listing price. Feel free to get a little aggressive with what you are asking for. It doesn’t hurt at this stage to try for a significant reduction.

60+ DOM (Days on Market)

Be reasonable but at the same time feel free to ask 5% to 10% off the listing price or more, depending on the home and situation. Make sure your Portland buyers agent has checked in with the listing agent before making an offer. At this point the sellers may have already had a price drop or two and you can’t take another 10% off their latest price drop.

Summary

Keep in mind every house and every market is a little different, make sure to rely on the advice of a top Portland real estate agent. Also keep in mind that higher priced (luxury) properties tend to stay on the market longer and you typically won’t be able to ask as much off the top. However, these DOM numbers are a good rule of thumb. Always have your Portland buyers agent check the home’s value, see if there are other offers on the table, and find out if the sellers have made any price drops since they started the listing. With these items and the DOM in mind you will be able to make a good offer on a home in Portland.

February 25th, 2013.

New infogram created for the Portland real estate market. I wanted to share it with you. “Three steps to buying a home in Portland.” Click below for the full infogram (created at infogr.am).

February, 21st, 2013. Why should you use a Portland buyer’s agent? Let’s compare lawyers with real estate agents. It’s safe to say that the majority of us are not lawyers. But we probably know or have heard of someone who is. If you had some sort of legal trouble, it would be in your best interest to get in touch with one, and a good one at that. Their expertise at looking out for your interests and having your legal back is worth a lot when you need representation. They can really protect your rights, time, negotiate on your behalf, save you trouble down the road, and sometimes they can even save you a lot of money.

So it is with a Portland buyer’s agent. When buying a home, in addition to those services mentioned above, they can also help you find the home or property of your dreams. Unlike a lawyer’s services, a (good) Portland buyers agent’s services never cost you a dime!

So, aside from representation that costs you nothing, being an advocate for your interests, helping with negotiations, and supporting you through offers and contracts, what does a Portland buyers agent do and what’s in it for you?

Well, in addition to the aforementioned, a (good) Portland buyers agent will have an extensive knowledge of the local area you’re looking in, as well as tools for searching out the exact home you’re looking for that are only available to Licensed Real Estate Professionals. The Regional Multiple Listings Service or RMLS is a regional database that Portland real estate agents use to both find and list homes for sale. It contains some proprietary information that is only available to agents. (We call it the “private field” in RMLS.) The ability of buyer’s agents to access this information is important to most people because according to the National Association of Realtors Profile of Home Buyers and Sellers 2011, 55% most buyers wanted Buyers Agents to help them find the right home. Additionally, 61% most often noted that the benefit of having a buyers agent is to help walk through and explain the home buying process to them. If buyers agents have exclusive information – well that will obviously help out a lot!

So in short, what is a Portland buyers agent and what’s in it for you? He or she is a professional who is committed to making sure you find the right property, for the right price, in the right area who walks you through the buying process but charges you nothing.

Jan. 20th 2013 Need to relocate to Portland, Oregon?

Good news! Portland city hall is very progressive. Before you rent or buy a home in Portland various websites can help you easily discover vital information about Portland neighborhoods: the best schools, lowest crime areas, and lots of helpful demographic information.

Here are the top five Portland relocation websites:

PortlandMaps.com – This website is updated by the government and contains the latest information on crime, zoning, utilities and more, great information specific to any inputted address.

Oregon School Ratings – The department of education in Oregon has a very progressive and in depth rating system for every single public school in the state! The entire list is searchable alphabetically on this site.

Portland School District Website – Not sure what Portland school is assigned to a Portland address?

Quickly find out which Portland school your child will attend by address.

Oregon Votes – You can also track your voter registration online. Register to Vote in Portland!



RealEstateAgentPDX (Find Page) – My website has tremendous demographic information searchable by neighborhood. By clicking on the blue line that surrounds the border of each Portland Neighborhood you can quickly find out education, income, weather and even social demographics specific to each individual Portland Neighborhood. This is targeted local search at its best!

Need more help? Please contact your local Portland Real Estate Agent. I’d be happy to take your call.

Jan. 11th, 2013 Is your New Year’s resolution to relocate to Portland? With so many great places to begin your search, it can be a bit overwhelming to choose the neighborhood that’s right for you. Let your local Portland real estate agent help.
Last month, we listed three Portland neighborhoods that are up-and-coming for 2013. Now we’re finishing off our list with three more undiscovered but quintessentially Portland neighborhoods for you to consider.

South Waterfront – A mix of the old and new is what you’ll find in this South Portland neighborhood. On the eastern edge is the South Waterfront, an industrial area on the Willamette river that has been redeveloped over the past few years into an happening urban zone. The condos in the new high-rises in Portland’s South Waterfront are in demand, especially among younger buyers and seniors. In the well established Terwilliger, Corbett, Lair Hill, and Fulton neighborhoods of South Portland, you’ll find a plenty of historic homes, modern condos and great views of Mount Hood.

Piedmont – North Portland is the area just north of downtown along the I5 corridor. In 2012, most of the affordably priced homes in the city of Portland came from this area, and all of the neighborhoods in this area are sure to continue to be popular in the coming year. We picked Piedmont because if its highly convenient access to downtown. It’s close to the I5 and also on a MAX light rail line, so no matter how you travel your commute will be very reasonable. As one of Portland’s original suburbs built in the 1920s, it holds a mix of old and new homes and is family-friendly.

Overlook – This developing neighborhood north of the Columbia and west of downtown is known as a place where both sustainability initiatives and local businesses thrive. It is a place for families and active people, with good bicycle access and even its own boat launch on Swan Island. The MAX is the best way to get downtown, or in a car it’s a short drive over the river. It has many historic homes including the landmark Tudor-style Overlook House. Some homes have been neglected and offer great bargains for those in search of a fixer-upper.

Whether you’re moving to begin your career, start a family or retire, or whether you spend your weekends shopping, gardening, or at the office, there’s a neighborhood for you in Portland. Your Portland real estate agent can help you weigh the pros and cons, check on home prices, and make the most informed decision possible.

December 25th, 2012 With 95 neighborhoods, the city of Portland has a place for everyone – seniors, families, first-time home buyers, and anyone looking for the convenience of urban life with the safety and familiarity of a good neighborhood.
In 2012, we saw the Portland real estate market begin to pick up again, making 2013 the perfect year to invest in a home. Foreclosed properties and short sales continue to come on the market, and the savvy buyer might just find a screaming deal this year.
Where are the great properties? All over the Portland, area, really. Young professionals continue to flood into the Pearl district and are starting to move into new developments in the south Waterfront and in North Portland. Southeast Portland continues to be a happening cluster of neighborhoods with greater affordability.
Here are our top picks for neighborhoods that we expect to continue to attract Portland home buyers in the new year, where you and your real estate agent just might find the perfect bargain.

1. Pearl District – This neighborhood has grown so much in the past decade that it has almost become a part of downtown, which lies just to the south. A former railway industrial area, the Pearl is now home to many new businesses, many of them with an international flair. The converted warehouse lofts and new condos have attracted many young professionals, and the area is expected to continue to revitalize and grow.

2. Sellwood – For those who need a little bit more elbow room but still want to be close to downtown, the Sellwood neighborhood in South Portland will continue to be a popular destination in 2013. Families move to Sellwood because of its reputation as a quiet, friendly place, and are not disappointed. Beautiful Victorian houses sit next to more modest starter homes, and although downtown is near, with the abundance of shops and restaurants in Sellwood it might not be necessary to make the trip.

3. Piedmont – In 2012, most of the affordably priced homes in the city of Portland came from North Portland, and all of the neighborhoods in this area are sure to continue to be popular in the coming year. We picked Piedmont because if its highly convenient access to downtown. It’s close to the I5 and also on a MAX light rail line, so no matter how you travel your commute will be very reasonable. As one of Portland’s original suburbs built in the 1920s, it holds a mix of old and new homes and is family-friendly.

4. Mt. Tabor – Traditionally one of the best Portland neighborhoods with high home values to reflect that, Mt. Tabor has been the site of many foreclosures over the past few years, and as a result, bank-owned properties can now be found for affordable prices in this neighborhood and those nearby. Valued for its accessibility to downtown, beautiful parks and great shopping at the nearby Hawthorne shopping district, Mt. Tabor is the place to look for a great Portland home at prices that haven’t been seen for a decade or more.

Did we mention that winter is a great time to buy? Contact your Portland real estate agent today to start your search in these and other great Portland neighborhoods, before the busy summer season begins.

Meanwhile, we’ll continue with part two of our list of hot Portland neighborhoods in the year 2013!

December 3rd, 2012 The real estate industry keeps track of how it’s doing in funny ways. Mortgages are always going above or below water, but they never seem to get soggy. The real estate blogs are constantly searching for the mysterious “bottom of the market” (it must be down here somewhere!) Then there are the economic factors we like to pay attention to, the bulls and bears and consumer confidence indexes.

Inventory is one of those head-scratchers in the real estate biz. To give an estimate of how the market is doing, it measures something that would never actually happen: Every homeowner decides they never want to move again and no new homes come on the market. In that case, how long would it take for us to run out of homes to sell, assuming buyers are oblivious to the sudden scarcity?

That’s inventory: The number of days or months it would take to sell all the homes on the market at the rate that buyers are currently buying them. In October, according to the RMLS report for the Portland metro area, which offers enough statistics and charts for even the nerdiest number-lover, inventory was the lowest it’s been since 2009.

What was that magic inventory number? 3.8 months. At the rate Portland home sales have been going the past few years, that’s pretty low. In fact, it’s low everywhere according to Realtor.com, which puts the national median inventory at 3.2 months. (The lowest inventory for October was a mere 21 days in Oakland, CA. The highest was 5.4 months in South Carolina.)

Low inventory in the Portland real estate market is good news for sellers and a nudge to buyers to act fast. Commonly accepted real estate wisdom gives six months as the amount of inventory that would show an even balance between buyer demand and the housing supply. So it follows that when inventory is higher than this, sales will be slow and a buyers’ market will result. When inventory is low, as it is now, demand for homes is up, and we call this a seller’s market.

What are the practical consequences of the current low inventory of Portland real estate? Buyers will need to act fast when they see a home for sale that they would consider buying. By the time you get your offer in, there may already be several others. In this case, according to a recent article in the Oregonian, sellers are choosing the best offer based not only on price but also on how likely the deal is to reach closing. Having the right Portland buyer’s agent can help because if he or she has previously worked with those involved in the transaction – mortgage lender, assessor, seller’s agent, etc. – things tend to go a lot more smoothly. For sellers, it’s more important than ever to have a good Portland real estate agent to juggle the multiple offers.

It might be easy to look at the most recent Portland RMLS numbers and assume the real estate market has recovered from the 2008 recession. Not only was inventory down in October, but prices were up, total market time was down, and sales remained steady. However, a low inventory for several months in a row is not necessarily a good thing. One could speculate that if buyers are not finding the homes they are looking for in Portland, they will look elsewhere. That could mean a drop in sales and, subsequently, prices.

On the other hand, if the market does remain strong, we might see a rise in prices as we move from winter to summer, when buyers tend to come out of the woodwork. So there’s no time like the present to put your home on the market or launch your Portland home search. Contact your Portland real estate agent to get started!

November 16th, 2012

Whether you currently own a home in Portland or are thinking of buying one, you may be thinking about how a natural disaster might affect where you live.

The good news is, Portland, Oregon is not in the path of tropical storms, hurricanes, or tornadoes, and we consider a foot of snow to be a major winter event. But that doesn’t mean we’re immune to disaster – especially mudslides, earthquakes and flooding. In a temperate region that normally doesn’t deal with a lot of extreme weather, even strong winds and some ice can leave many residents without access to the basics.

What can the Portland home owner or home buyer do to be prepared? The most important thing is to think ahead. The actual location and structure of your home is just as important as having a good supply of emergency items.

As a rule, older homes have a greater risk of damage from natural disaster. According to a University of Oregon study, two-thirds of the Portland area’s housing was built before 1980. Check your potential or existing home for faulty wiring, cracks in foundation and loose gas connections. A solid house can withstand a slew of disasters, but one that needs repair can turn a small event into a dangerous situation. Homes in Oregon are always appraised before sale, and major problems like these will be brought to attention. However, it’s often up to the new home buyer to address them.

Location matters, too. When Portland experiences heavy rains, as it does almost every winter, hilly areas are at a risk for mudslides. A mudslide is simply the natural shifting of a hill that occurs when the ground becomes oversaturated with water. The resulting flow of mud can be unpredictable and dangerous.

Knowing whether your home is at risk for mudslides requires a little research. The Oregon Geohazards Viewer is a handy mapping tool that allows you to enter any address and see what the risk is for mudslides, flooding, volcanic activity, and a host of other disasters.

For any natural disaster, preparation is key. Keep in mind that traveling across Portland in the event of a natural disaster is made even more difficult by the many bridges we rely on. Have a well stocked emergency supply kit and a plan for your family’s communications. Know alternative routes to get to where you need to be.

Your Portland Real Estate Agent knows the area and can help you find the safest location to relocate. The best thing you can do is be an informed buyer, so go with the professionals who can answer all your questions.

Links:
Portland Metro Area Regional Hazards Assessment

The Oregon Geohazards Viewer

Oregon’s Earthquake Risk and Resiliency

When it comes to buying a new home, nothing beats having an experienced real estate agent on your side.

But your REALTOR® doesn’t fit in your pocket, which is why the mobile applications are very popular among home buyers. These apps are a good starting point, with location-based information on homes for sale plus photos, prices and other data pulled from the home’s MLS listing.

The big real estate apps don’t do everything, though, which is why we’ve compiled the following list of handy mobile applications to simplify the entire home buying process, from setting up the first home showing to settling into your new place. We’ve also included a couple of apps that Portland residents find useful for navigating the city. Best of all, they’re (mostly) free!

1. Google Calendar. This first one isn’t an actual app, but you can access Google’s Calendar feature through your smartphone browser. It’s a valuable tool for home buyers to synchronize their calendar with their spouse, kids, REALTOR®, and any other party involved in the home buying process. Now nobody has an excuse to miss a home showing or other appointment.

2. SignEasy. Real estate transactions can be heavy on the paperwork, especially when a mortgage is involved. This app allows you to sign forms digitally using your smartphone’s touchscreen. Open the form, sign it, send it back, complete your transaction faster.

3. Craigslist.org. When it comes time to move, Craigslist is the go-to spot for selling (or giving away) unwanted items, buying items for your new house, or finding someone to do a quick paint job before you move in. If you’re new to the Portland metro area, Craigslist can also help you get an on-the-ground look with community boards and job listings. There isn’t one official craigslist.org app, but several by independent developers that focus on different aspects of the site. The New York Times has a good review of Craigslist apps. Make sure to watch out for scams when using Craigslist.

4. Measures and Dimensions. Will your prized vanity fit in the bedroom? What were the dimensions on that window that needs repair? This app allows you to take a photo of an object or room, then edit it by adding dimensions and measurements. No more carrying around bits of paper with obscure numbers and drawings scribbled on them. Just save, print or share your photos, notes and dimensions using this app.

5. Mortgage Rate Calculators and Finder. When you’re wandering around your dream home, get a reality check by estimating your monthly mortgage payment. Zillow’s real estate apps include a mortgage calculator. You can also get an iPhone app that finds and compares mortgage rates from multiple lenders.

6. Portland Public Transit. Portland is famous for its efficient mass transit, but getting oriented takes time in any new city. Never miss the bus (or the Max) with this free app.

7. PDXPERT. Need to relax after all that Portland home shopping? This app helps you find sales and happy hours near you.

Mobile applications are convenient, but they’ll never take the place of a good buyer’s agent. Call your Portland Real Estate Agent with any real estate question, big or small.

August 23rd, 2012

Is it possible to save money on closing costs? Absolutely!

If you’re a home buyer, Oregon is a great state to look at for some of the lowest closing costs in the nation. According to Bankrate.com, the average home sale closing costs in Oregon are 11th lowest of the 50 states. For a home purchased with a $200,000 loan, with 20% down payment and excellent credit, the closing costs average $3,509.

But what are these closing costs, and who pays them? Your Portland real estate agent can help you figure exact amounts, but keeping closing costs in mind as you start your home search or list your home for sale will help you avoid surprises on the closing day.

At the most basic level, closing costs are any costs associated with the process of transferring ownership of a home or property from one party to another. They fall into two categories: origination fees charged by the lender, and third-party fees which include everything from the home appraisal and REALTOR® commission to the postage paid to send documents.

As a buyer, most of the closing costs you’ll pay will be the ones associated with your home mortgage. Starting out with good credit and shopping around for the best loan can help you save money when you close the deal on your new home.

The two biggest third-party closing costs are usually REALTOR® commissions and title insurance. REALTOR® commissions are always included in the price of the home and thus paid by the seller. Reputable buyers’ agents won’t charge for their services. For home sellers, real estate agents are well worth the cost because they cover advertising the home for sale and negotiating between buyers, sellers, banks, and other intermediaries like attorneys and escrow companies. Plus, your home will sell faster and you’re more likely to get your asking price with a skilled REALTOR® on your side.

Title insurance, like home inspections, homeowners insurance, and other services that  incur closing costs, is a legal necessity. Title insurance is an insurance policy against someone else claiming ownership of a home based on inconsistencies in the title record. Title search fees and insurance are usually paid by the seller, but it depends on the contract drawn up between buyer and seller. The mortgage lender may also require separate title insurance, paid by the buyer.

Your Portland real estate agent can describe the more minor closing costs involved in buying or selling a Portland home, and a good REALTOR® will be open and honest about the minimum amount you should expect to pay on the closing date. The most important point is to do your research and find an expert who can help you navigate the various services necessary to change ownership of a home. 

Bankrate.com senior financial analyst Greg McBride puts it this way: “The main lesson of this [nationwide closing costs] survey for consumers is to shop around for at least three different estimates” for services like home inspections, title insurance, mortgages, and especially real estate agent commission fees . “It’s important for people to realize that there is variation even within their neighborhood, and that they can save by being an educated consumer,” says McBride. We couldn’t agree more.

August 7th 2012 According to a recent Zillow report the average time it takes to break even buying a home verses renting a home in the Portland metro area is 3.5 years. Depending on the neighborhood, it could take as long as 5 years or as short as 1.5 years. Ask your Portland Real Estate Agent which Portland neighborhood will give you a quicker return.

Zillow took into account all the costs of renting including utilities and deposits and contrasted that with the costs of Portland homeownership including down payment, taxes, maintenance, utilities and more. Zillow also adjusted for future rent increases and future Portland home valuations.

To summarize, it is a great financial idea to buy a Portland home if you are looking to stay put for at least three years. Talk with a Portland buyer’s agent today!

August 1st, 2012 For the first time since the housing market crash prices have risen nationally from one quarter to the next, in this case, from the first quarter of 2012 to the second. Nationally that rise barely occurred, .02%. In Portland we are looking at a 6% increase in the housing market this year. However, last fall and winter prices dropped in Portland over 10-12% and so from year to year homes are still cheaper in Portland than in 2011.

Is this the beginning of a housing turn in Portland? Zillow thinks so and is forecasting a 4.3% increase in Portland housing prices in 2013. Other analysts are less optimistic pointing to an ongoing shadow inventory of foreclosed homes that have yet to hit the market and pointing to the nearly 6 year trend of dropping prices in the fall and winter.

As your local Portland Realtor, I expect prices to drop again slightly 2012 fall and winter and then rise again in the spring and summer of 2013. Overall, I expect 2013 to be Portland’s first stable year in the housing market with prices increasing or decreasing by a percentage or two. I’m not quite as optimistic as Zillow, but more so than a few naysayers. The Portland housing market is booming this summer and as a top Portland Realtor I’m seeing it happen everyday.

July 31st 2012

Continuing their dominance, Zillow, Trulia, Yahoo, and Realtor.com round out the top four used real estate websites, according to HitWize. For those who are unaware, Zillow powers Yahoo’s real estate sites making Zillow as a program both first and third. Realtor.com has slowly slipped from the top spot, but remains number one in a number of other important categories, like time on site.

As a local Portland Realtor, my suggestion is to use Realtor.com, or my Portland home search program. While Zillow continues to be the most popular it also has the worst data. Homes shown as active on Zillow may have expired or sold months or even years prior. Trulia maintains a better data program, but still suffers from occasional errors. Realtor.com prides itself on its data accuracy and is the most accurate among the big four.

As good (or bad) as the top four real estate websites can be, I believe my Portland home search program is better. Because my program is local, it only has to deal with a regional data feed and is updated more often then even Realtor.com. Since there is less data feed, there is less opportunity for error. Also it uses no third party programs and receives the data directly from the local MLS. Zillow is king because of its usability, not for its accuracy. My Portland home search program, I believe, it as easy to use as Zillow and is more accurate than Realtor.com. Plus, it has one feature none of the top four do: a big and beautiful full screen search. Give it a try!