Before Searching For A Home in Portland Oregon – Watch this –

How the Portland Metro Area is divided for real estate sales.

NW Portland Houses For Sale (Area 149)
$200,000, $200,000-300,000, $300,000-400,000, $400,000-500,000, $500,000-600,000, $600,000-700,000, $700,000-800,000, $800,000-900,000, $900,000-1,000,000, $1,000,000-1,500,000, $1,500,000-2,000,000, $2,000,000-2,500,000, $2,500,000-3,000,000, $3,000,000-4,000,000, $4,000,0000+
NW Portland Townhome For Sale
NW Portland Condos For Sale
Nw Portland Open House This Week
NW Portland Today’s New Listings
NW Portland New Listings in 7 Days
NW Portland New Construction For Sale

North Portland Houses For Sale (Area 141)
$200,000, $200,000-300,000, $300,000-400,000, $400,000-500,000, $500,000-600,000, $600,000-700,000, $700,000-800,000, $800,000-900,000, $900,000-1,000,000, $1,000,000-2,000,000, $2,000,000+
North Portland Townhome For Sale
North Portland Condos For Sale

Start here
North Portland Open House This Week
North Portland Today’s New Listings
North Portland New Listings in 7 Days
North Portland New Construction For Sale

NE Portland Houses For Sale (Area 142)
NE Portland Townhome For Sale
NE Portland Condos For Sale $300,000
NE Portland Condos For Sale $300,000-600,000
NE Portland Condos For Sale $600,000+

SE Portland Houses For Sale (Area 143)
SE Portland Townhome For Sale
SE Portland Condos For Sale $300,000
SE Portland Condos For Sale $300,000+

SW Portland Houses For Sale (148)
SW Portland Townhome For Sale
SW Portland Condos For Sale $200,000
SW Portland Condos For Sale $200,000-300,000
SW Portland Condos For Sale $300,000-400,000
SW Portland Condos For Sale $400,000-500,000
SW Portland Condos For Sale $500,000-600,000
SW Portland Condos For Sale $600,000-800,000
SW Portland Condos For Sale $800,000-1,500,000
SW Portland Condos For Sale $1,500,000+

Milwaukie/Clackamas/Gladstone/Happy Valley Houses For Sale (Area 145)
Townhome For Sale
Condos For Sale

Oregon City/Canby/Molalla/Beavercreek/Mulino Houses For Sale (Area 146)
Townhome For Sale
Condos For Sale

Lake Oswego West Linn Houses For Sale (Area 147)
Townhome For Sale
Condos For Sale

Tigard/Tualatin/Sherwood/Wilsonville Houses For Sale (Area 151)
Townhome For Sale
Condos For Sale

Beaverton/Aloha Houses For Sale (150)
Townhome For Sale
Condos For Sale $300,000
Condos For Sale $300,000+

Today’s New listings (Portland Metro Area 141-152)
$200,000, $200,000-300,000, $300,000-400,000, $400,000-500,000, $500,000-600,000, $600,000-700,000, $700,000-800,000, $800,000-900,000, $900,000-1,000,000, $1,000,000-2,000,000, $2,000,000+

Open House This Week (Portland Metro Area 141-152 )
$200,000, $200,000-300,000, $300,000-350,000, $350,000-400,000, $400,000-450,000, $450,000-500,000, $500,000-550,000, $550,000-600,000, $600,000-650,000, $650,000-700,000, $700,000-750,000, $750,000-800,000, $800,000-850,000, $850,000-900,000, $900,000-950,000, $950,000-1,000,000, $1,000,000-1,500,000, $1,500,000-2,000,000, $2,000,000-3,000,000, $3,000,0000+


New Construction For Sale (Portland Metro Area 141-152)

$300k, $300-350k, $350-400k, $400-450k, $450-500k, $500-550k, $550-600k, $600-650k, $650-700k, $700-750k, $750-800k, $800-850k, $850-900k, $900-950k, $950-1m, $1-1.5m, $1.5-2m, $2-3m, $3-4m, $4m+

Houses For Sale (Portland Metro Area 141-152)
$150,000, $150,000-200,000, $200,000-250,000, $250,000-275,000, $275,000-300,000, $300,000-325,000, $325,000-350,000, $350,000-375,000, $375,000-400,000, $400,000-425,000, $425,000-450,000, $450,000-475,000, $475,000-500,000, $500,000-525,000, $525,000-550,000, $550,000-575,000, $575,000-600,000, $600,000-625,000, $625,000-650,000, $650,000-700,000, $700,000-750,000, $750,000-800,000, $800,000-850,000, $850,000-900,000, $900,000-950,000, $950,000-1,000,000, $1,000,000-1,250,000, $1,250,000-1,500,000, $1,500,000-1,750,000, $1,750,000-2,000,000, $2,000,000-2,500,000, $2,500,000-3,000,000, $3,000,000-4,000,000, $4,000,000-5,000,000, $5,000,000-10,000,000, $10,000,000+

Condos For Sale (Portland Metro Area 141-151)
$150,000$150,000-200,000$200,000-225,000, $225,000-250,000$250,000-275,000$275,000-300,000$300,000-325,000$325,000-350,000$350,000-375,000$375,000-400,000$400,000-425,000$425,000-450,000$450,000-475,000$475,000-500,000$500,000-525,000$525,000-550,000$550,000-600,000$600,000-650,000$650,000-700,000$700,000-750,000$750,000-800,000$800,000-900,000$900,000-1,000,000$1,000,000-1,250,000$1,250,000-1,500,000$1,500,000-1,750,000$1,750,000-2,000,000$2,000,000-2,500,000$2,500,000-3,000,000$3,000,000-4,000,000$4,000,000-5,000,000$5,000,000-10,000,000$10,000,000+

Portland Real Estate Next 7 Years

I was in my 5th year of selling real estate when I predicted the future of the Portland real estate market in 2012, connecting the dots…

Youtube

Soundcloud Audio

I was wrong about two things:

  • How long the flat equity period would last (I bought into the National Association of Realtors’s (NAR) prediction); it was much shorter, which was less than a year.  The flat equity period didn’t really exist and looking back, 2012 was already an upswing market. 
  • I was too conservative with a projection of a 5% annual appreciation; it was 10-15% in some of the years from 2014-2018 (in Portland, Oregon).

I was correct:

  • The best time to sell is coming if sellers can wait 5 years or more.
  • Market prediction.. for sellers, it depends, for buyers, it is the best time to buy!

First of all, thanks to all of your support, I was able to make a new company of my own. I’m very excited for new opportunities and growth. I hope to be a part of your success and growth as well.   I believe that entrepreneurship should be encouraged for everyone – if you own a business and/or want to build a business, talk to me  to bounce off your business ideas.   I love that kind of talk. 

So here’s my market update for the next 7 years!!

  • 3-5% of steady appreciation & no double digit appreciation for a while… So I will try not to use the word, “best to buy or sell”.  Because It depends on your individual situation, so I’ll break it down for everyone.  No one size fits all, like socks.
  • Thinking about buying? Then pay attention to the interest rates.  You can’t really control house price (just like stock price), but If you see close to 4%, it’s time to buy.  Just make sure to pay fair market price on the property. 
  • If you are renting and plan to be in the Portland area for more than 3 years, buy one sooner than later.  The rent is still very high, which can go toward a house payment that will let you own something in a few decades or at least give you some cash when you sell and leave town. 
  • If you are thinking about selling, you will see a small but steady equity building, so assess the property. For example, if you own a home that is valued below $425k right now in the Portland Metro area, consider turning that into an investment property.  If that is not an option, now is a good time to leverage the interest rate to downsize or upsize, depending on your real estate needs.  Be careful about dealing with iBuyer programs out there.  Big companies are reaching out to homeowners very aggressively.  Their main goal is to make a profit.  Shawn Realty’s main goal is to protect our clients best interest and then make a profit, fiduciary or non-fiduciary. If you’d like an assessment of your situation and your property, I’ll be more than happy to help you out with that, so just let me know. 
  • For Investors, Focus on the long term holding strategy, 15-30 years, not so much of short term strategy or cash flow.
    I believe that everyone should have some kind of investment, preferably in real estate, which is one of the most stable investments.

Factors

  • Portland is still a very attractive city with a steady influx of people and businesses.  Both Intel and Nike are literally building and expanding.  That’s a great sign for the real estate market. 
  • Tight Urban Growth Boundaries limit the growth, so a housing shortage will continue which will push the price upward. 
  • The rent control law may have scared away some investors, but still the demand is strong. 

Have a great summer and please let me know how I can help!

Home Buyer Happy Hour

Home Buyer Happy Hour - Shawn Realty
  • Can you buy a home with student debt?
  • Housing as an umbrella?
  • Good properties for first-time buyers?

Does it make sense to purchase a home with student debt? Jordan Lee will share his personal story about buying his first home when he had $80k combined student debt and what home buying did for him. Shawn Yu will share how to identify a right home as a first-time buyer with student debt.

Upcoming Event: TBD

Where: Golden Valley Brewery
1520 NW Bethany Blvd, Beaverton, OR 97006

RSVP here. We look forward to meeting you!

Things to Know Before Buying a New Home (Reed’s Crossing, Hillsboro, Oregon)

Transcript of Video:

Hey, this is Shawn Realty.

Today, I’d like to share with you the process of buying a brand new home and the checklist of what you should know.

#1: Going to the model home

Go with your buyer’s agent. If your agent cannot make it, then let them know that you’re working with one so that your agent can still help you throughout the transaction.

#2: Pick a lot and a plan

aerial view of buildigns
Photo by The Lazy Artist Gallery on Pexels.com

Like brand new subdivisions? Like this Reed’s Crossing–they’re building 2500 homes, right? Knowing where that first phase is located, compared to the rest of the development, that would give you a certain idea on which roads are going to connect to most of the homes. So those are going to be major roads. You don’t want to buy a home near a major road, unless you buy at a really discounted price. Because when you try to resell that home, you are going to lose compared to the other homes that are on the quiet street, because the major street backs to louder car noise and air pollution, possibly. It’s not peaceful. I think that’s the even bigger part. Knowing those roads, how they’re going to be developed, is going to be really important. Where are the parks and other amenities? Are you going to be near town home buildings with a higher density? Later, will it make it tougher to find parking spaces when you throw a party, like a Blazers’ playoff game when you have a dozen friends coming with 10 cars. They’re going to have a hard time finding parking and it’s not going to be that pleasant. I’m going way off here, but you get my point though, right? I think I saw about four different home builders that are building in the same phase. So you can pick and choose. You can pick a builder, you can pick within a builder’s homes, you can pick a lot and, you know, different types of plans. Now, the lot, I think, is one of the more important things and the plan is important in a sense, too, because certain homes flow well inside: it gets better lighting, it functions well, it doesn’t have a lot of wasted space in the house. So, the way I approach it is: when the newness of this brand new home goes away in 5, 7, 10 years, how will it resell well? That’s the question you’re going to have to ask. Everybody loves brand new homes but after the newness is gone, do you still see that home as a good home? That’s a good indicator for whether it’s a good reselling home or not.

#3: Getting pre-approved by a lender

The builders would like you to go through their lenders. They do offer some incentives. I’ve seen anywhere between $500 credit to $2,000 credit to when you use their preferred lender. It’s hard to beat that.

#4: Submitting an offer

It’s really submitting an application because there’s not a lot of negotiation happening, especially with the price, because brand new home builders don’t typically negotiate on the price. As long as they didn’t start too high on the price, they stick with the price.

#5: Waiting until the completion

man wearing blue hard hat using hammer
Photo by Burst on Pexels.com

They give you a completion date, but I wouldn’t count on that date to give notice to your landlord or sell your home because you may not have a place to live because building dates get delayed for many reasons such as too much rain before completion or they get backed up finishing another project. This delay could leave you homeless for a couple of weeks. You want to make sure that you have a place until you get the key.

And #6: Getting the key

person giving keys on man
Photo by rawpixel.com on Pexels.com

So it’s a 6-step brand-new-home-buying process. There we go.

A checklist.

Talking to a sales agent. Now, in Oregon, you have to be licensed. You’re talking to an agent who works for the builder. They are employees of the builder. They don’t really have the obligation to serve you as a fiduciary agent. Meaning, their first goal is to help the seller/ the builder for their best interest. So, this is where buyer’s agents roles come in pretty significantly. Advising, like I mentioned, on the value of that home and helping buyers understand the process of a brand new home. Knowing what kind of rights the buyers have, like the insulation policy and the home inspection policy while giving an opinion on the resale value down the road. Those are really the important ones, too. So that you don’t have to worry too much about it. At least you know what’s going to happen next. I think that’s the biggest part of having a buyer’s agent, so that you don’t get surprises. Who wants surprises, right? When you’re buying the biggest product in your life. Unless you’re buying a private jet. The house is going to be one of the most expensive items that you’re going to buy.

adult calling cellphone close up
Photo by rawpixel.com on Pexels.com

So talking about knowing your rights, the contracts that you’re going to sign with new build homes, they’re typically made by the builders’ attorneys, as far as I know. And they’re a different contract than Oregon Real Estate Agency drafted, the standard form that we use in resale homes. They’re very builder/seller-centric, made to protect the builder so much more so than the buyer. As far as I could read, compared to the Oregon Real Estate form, the owner’s money may not be refundable after 24, 48 hours. The buyers should know exactly, before signing the contract, what kind of rights they have.

person using mop on floor
Photo by rawpixel.com on Pexels.com

The other part is the home inspection on a brand new home. You may think that home inspection may not be needed because it’s a “brand new home.” The builders typically provide a one year warranty, so you think it’s okay. However, what if there’s no insulation in the attic space? The subcontractor forgot to put it up there, right? Because they have to move to the next site. Kind of rushed, they forget to put insulation. Or what if they forgot to hook up the dishwasher plumbing, and you run the dishwasher. Guess what’s going to happen? Your kitchen floor will be flooded. Doing a home inspection points out the things that are made wrong. That’s what it is and, you know, it’s built by a human, not a machine. So there’s going to be some faulty things that you are going to deal with, and when you resell that home, your buyer, in 7 years, let’s say, is going to do the home inspection. By then, hopefully the dishwasher is hooked up, you’ve been using it for the last 7 years. So that won’t be an issue. But, let’s say, there’s water in the crawl space, which we find a lot here in Oregon, which is a problem. What else? The sewer line. I’ve actually had to deal with one sewer line on a brand new home that needed to be fixed. So, we were able to do the sewer scope and the builder fixed it before the closing date. If you didn’t do that, your next buyer will ask you to fix that. And that could be anywhere between, in 2019 pricing, between a thousand dollars to maybe $10,000 to repair. It is very important, I think. Even though you don’t find anything, and you may not find anything, but all the new building human errors shouldn’t be your problem when you resell the property down the road.

So once again I’d like to point out that when you go see a home, look at the subdivision map. Make sure the road your house is on will not become a super major road because they’re building almost 3,000 homes south of there. South of there, right? This road will become a huge road. So, if you do buy a home along a busy road, you better buy it at a really good price compared to homes that are next to a green space. And that’s going to be a bonus. They don’t have any neighbors looking in their backyard from the back side because these new homes’ lot sizes are really tight nowadays.

person sitting near table with teacups and plates
Photo by Viktoria Alipatova on Pexels.com

So I’m super excited to help out home buyers who want to buy a good brand new home like in Reed’s Crossing, the brand new subdivision in South Hillsboro. And I look forward to having some Korean food or Thai food near those new subdivisions because they’re going to build some shops, restaurants and, you know, places like that. Like Orenco Station or Tanasbourne. Those are other good choices for the west side. We don’t seem to have as many great restaurants as we do in East Portland or North East. We need to bring back some good food to the west side for sure. I mean, don’t get me wrong, there are food on the west side, but not as many choices as the east side, right?

So I look forward to hanging out in South Hillsboro. I look forward to seeing you out there. If you have any questions about these homes or the plans or new home buying process, or anything like that, feel free to give me a call.

Anyways, it’ll be great to hear your feedback: what you will like to know in the next videos. I know I missed a lot because I can’t cover everything. If I want to cover every possible situation on buying a home, I probably need to talk for about 4 hours. And nobody has that kind of time to watch me talking about real estate. So, I tried to make this as brief as possible, but it got to maybe 15 minutes right now. Love to hear from you. Let me know how I can help in your real estate goals.

Thanks so much for watching. See you next time.

If you are interested in buying a brand new home, please let us know!

Who works for whom in real estate transactions in Oregon? 

When you walk into an open house, can the agent greeting you look out for your best interests as a fiduciary agent? Or is that agent looking out for the best interests of the seller? It depends.

Key points to remember –

1. It’s safe to assume that the open house agent represents the seller if the name on the sale sign matches the agent’s name. If there’s no agent’s name on the signage, you may ask, “Are you the Listing Agent (or Seller’s Agent)?”

2. If the name doesn’t match the sign, the agent may represent you (buyer) as long as 1) the agent is not a showing agent (work only to show properties as a member of a real estate team, not allowed to represent a client. This may be set by the team or the office rules. Showing Agent is not yet defined by the Real Estate Agency) or 2) not a Co-listing Agent (represent the seller together with the Listing Agent).

3. In Oregon, it is allowable to represent both the seller and buyer, or multiple buyers who want to purchase the same property. This can be done with the written permission of both clients. We call this Disclosed Limited Agent.

4. A Real Estate Agent and Principal Broker in Oregon are required to provide this Agency Disclosure information to you when they first meet you.

5. Seller’s Agent – Represents the seller only. Buyer’s Agent – Represents the buyer only.

You may keep reading if you want to know further…warning, it gets pretty boring. Here you go…OREGON REAL ESTATE INITIAL AGENCY DISCLOSURE PAMPHLET, 2019 version. Please note that this applies ONLY in Oregon, so talk to your local real estate agent if you are thinking about selling or buying outside of Oregon. Or call Shawn Realty 503-515-4499 in Oregon. 

OREGON REAL ESTATE INITIAL AGENCY DISCLOSURE PAMPHLET

OAR 863-015-215 (4)

This pamphlet describes the legal obligations of real estate agents in Oregon. Real estate agents and Principal Brokers are required to provide this information to you when they first meet you.

This pamphlet is informational only.  Neither the pamphlet nor its delivery to you may be interpreted as evidence of intent to create an agency relationship between you and an agent or Principal Broker.

Real Estate Agency Relationships
An “agency” relationship is a voluntary legal relationship in which a licensed real estate agent or Principal Broker agrees to act on behalf of a buyer or a seller (the “client”) in a real estate transaction.

Oregon law provides for three types of agency relationships between real estate agents and their clients:

Seller’s Agent – Represents the seller only;
Buyer’s Agent 
– Represents the buyer only;
Disclosed Limited Agent 
– Represents both the buyer and seller, or multiple buyers who want to purchase the same property. This can be done only with the written permission of both clients.

The actual agency relationships between the seller, buyer and their agents in a real estate transaction must be acknowledged at the time an offer to purchase is made. Please read this pamphlet carefully before entering into an agency relationship with a real estate agent.

Definition of “Confidential Information”
Generally, agents must maintain confidential information about their clients. “Confidential information” is information communicated to the agent or the agent’s Principal Broker by the buyer or seller of one to four residential units regarding the real property transaction, including but not limited to price, terms, financial qualifications or motivation to buy or sell. “Confidential information” does not mean information that:

a. The buyer instructs the agent or the agent’s Principal Broker to disclose about the buyer to the seller, or the seller instructs the agent or the agent’s Principal Broker to disclose about the seller to the buyer; and

b. The agent or the agent’s Principal Broker knows or should know failure to disclose would constitute fraudulent representation.

Duties and Responsibilities of Seller’s Agent
Under a written listing agreement to sell property, an agent represents only the seller unless the seller agrees in writing to allow the agent to also represent the buyer. An agent who represents only the seller owes the following affirmative duties to the seller, the other parties and the other parties’ agents involved in a real estate transaction:

1. To deal honestly and in good faith;

2. To present all written offers, notices and other communications to and from the parties in a timely manner without regard to whether the property is subject to a contract for sale or the buyer is already a party to a contract to purchase; and

3. To disclose material facts known by the agent and not apparent or readily ascertainable to a party;

A Seller’s Agent owes the seller the following affirmative duties;

1. To exercise reasonable care and diligence;

2. To account in a timely manner for money and property received from or on behalf of the seller;

3. To be loyal to the seller by not taking action that is adverse or detrimental to the seller’s interest in a transaction;

4. To disclose in a timely manner to the seller any conflict of interest, existing or contemplated;

5. To advise the seller to seek expert advice on matters related to the transactions that are beyond the agent’s expertise;

6. To maintain confidential information from or about the seller except under subpoena or court order, even after termination of the agency relationship; and

7. Unless agreed otherwise in writing, to make a continuous, good faith effort to find a buyer for the property, except that a Seller’s Agent is not required to seek additional offers to purchase the property while the property is subject to a contract for sale.

None of the above affirmative duties of an agent may be waived, except #7. The affirmative duty listed in #7 can only be waived by written agreement between seller and agent.

Under Oregon law, a Seller’s Agent may show properties owned by another seller to a prospective buyer and may list competing properties for sale without breaching any affirmative duty to the seller.

Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent’s expertise, including but not limited to investigation of the condition of property, the legal status of the title or the seller’s past conformance with law.

Duties and Responsibilities of Buyer’s Agent

An agent, other than the Seller’s Agent, may agree to act as the Buyer’s Agent only. The Buyer’s Agent is not representing the seller, even if the Buyer’s Agent is receiving compensation for services rendered, either in full or in part, from the seller or through the Seller’s Agent.

An agent who represents only the buyer owes the following affirmative duties to the buyer, the other parties and the other parties’ agents involved in a real estate transaction:

1. To deal honestly and in good faith;

2. To present all written offers, notices and other communications to and from the parties in a timely manner without regard to whether the property is subject to a contract for sale or the buyer is already a party to a contract to purchase; and

3. To disclose material facts known by the agent and not apparent or readily ascertainable to a party.

A Buyer’s Agent owes the buyer the following affirmative duties:

1. To exercise reasonable care and diligence;

2. To account in a timely manner for money and property received from or on behalf of the buyer;

3. To be loyal to the buyer by not taking action that is adverse or detrimental to the buyer’s interest in a transaction;

4. To disclose in a timely manner to the buyer any conflict of interest, existing or contemplated;

5. To advise the buyer to seek expert advice on matters related to the transaction that are beyond the agent’s expertise;

6. To maintain confidential information from or about the buyer except under subpoena or court order, even after termination of the agency relationship; and

7. Unless agreed otherwise in writing, to make a continuous, good faith effort to find property for the buyer, except that a buyer’s agent is not required to seek additional properties for the buyer while the buyer is subject to a contract for purchase.

None of these affirmative duties of an agent may be waived, except #7. The affirmative duty listed in #7 can only be waived by written agreement between buyer and agent.

Under Oregon law, a Buyer’s Agent may show properties in which the buyer is interested to other prospective buyers without breaching an affirmative duty to the buyer.

Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent’s expertise, including but not limited to investigation of the condition of property, the legal status of the title or the seller’s past conformance with law.

Duties and Responsibilities of an Agent

Who Represents More than One Client in a Transaction

One agent may represent both the seller and the buyer in the same transaction, or multiple buyers who want to purchase the same property, only under a written “Disclosed Limited Agency Agreement” signed by the seller and buyer(s).

Disclosed Limited Agents have the following duties to their clients:

1. To the seller, the duties listed above for a seller’s agent; and

2. To the buyer, the duties listed above for a buyer’s agent;

3. To both buyer and seller, except with express written permission of the respective person, the duty not to disclose to the other person:

a. That the seller will accept a price lower or terms less favorable than the listing price or terms;

b. That the buyer will pay a price greater or terms more favorable than the offering price or terms; or

c. Confidential information as defined above.

Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent’s expertise.

When different agents associated with the same Principal Broker (a real estate agent who supervises other agents) establish agency relationships with different parties to the same transaction, only the Principal Broker will act as a Disclosed Limited Agent for both buyer and seller. If applicable, see Disclosed Limited Agency Agreement for identification of Disclosed Limited Agent. The other agents continue to represent only the party with whom the agents have already established an agency relationship unless all parties agree otherwise in writing. The Principal Broker and agents representing either seller or buyer shall owe the following duties to the seller and buyer:

1. To disclose a conflict of interest in writing to all parties;

2. To take no action that is adverse or detrimental to either party’s interest in the transaction; and

3. To obey the lawful instruction of both parties.

No matter whom they represent, an agent must disclose information the agent knows or should know that failure to disclose would constitute fraudulent misrepresentation.

You are encouraged to discuss the above information with the agent delivering this pamphlet to you. If you intend for that agent, or any other Oregon agent, to represent you as a Seller’s Agent, Buyer’s Agent, or Disclosed Limited Agent, you should have a specific discussion with the agent about the nature and scope of the agency relationship. Whether you are a buyer or seller, you cannot make an agent your agent without the agent’s knowledge and consent, and an agent cannot make you their client without your knowledge and consent.

Provided by Oregon Real Estate Forms, LLC 2019

   OREF 04

44 Second Portland Real Estate Update – Shawn Realty

 

The only thing you have to know about the Portland Real Estate Market right now is that every twelve months about 4% appreciation happens on a home. That’s an average number. The market is stable, it’s a great time to sell, buy or invest. The rest…? Everything is good! The market is good, interest rate is good (the sky is not falling).

If you are thinking about selling or buying in the next 6 months, we probably need to have an in-depth conversation. Just give me a call and we’ll take great care of you.

Enjoy out there!

If you’d like to talk about timing the market in buying or selling, please let us know.

Time To Remove Mortgage Insurance From Your Mortgage?

smartphone beside mini desk globe
Mortgage Insurance Removal – Shawn Realty (Photo by Artem Bali on Pixel)

If you bought a home and put down less than 20% of the purchase price, there’s a good chance that you might be still paying for a monthly mortgage insurance (MI) that can be eliminated. MI usually ranges between $100 and $350 per month* and the savings can be a nice dinner out or another car payment, or just pure money saving!

What is PMI (Private Mortgage Insurance)?
PMI is insurance that protects lenders from the risk of default and foreclosure for conventional loans; for FHA loans, it’s called MIP (Mortgage Insurance Premium). Don’t mix it up with m:i, Mission Impossible. It is possible.

Federal Guideline
The federal guideline is the minimum that the lenders are required to follow; however, according to my local lender source, lenders might be more forgiving than the federal guideline, so you may be able to save on mortgage insurance sooner than you might think. If you think you might fall into one of these scenarios, you should talk to your mortgage servicer and look at your options of eliminating your mortgage insurance for good!

Possible scenarios
1 You believe that you had the mortgage long enough that your loan amount is 80% (or lower) of your original purchase price or appraisal value (whichever is lower). They call it Loan to Value ratio (LTV). For example, your current loan balance is now $320,000 and you bought it for $400,000.
2 You have been paying extra amounts monthly toward the principal over time.
3 You bought a property with more than 10% downpayment a few years ago.
4 Your home value has gone up significantly since you bought. (Ex. Portland home prices appreciated more than 30% in less than 6 years, conservatively speaking). Click here to request a free CMA (Competitive Market Analysis).

Request a Free CMA (Home Value)

*** See below for exclusions.

Steps to remove mortgage insurance
1 Contact your loan servicer and request the mortgage insurance removal process.
2 Follow the lender’s checklist, like filling out some forms.
3 Check to see if there are any automated appraisals that are free and acceptable to the lender. If not, order the appraisal per lender’s guidelines (Average appraisal cost ranges between $400-800 in Portland, Oregon, 2018).
4 Make your home look and smell nice when the appraiser visits.

It may take 20 – 45 days to complete the process, but then you can enjoy your lowered monthly mortgage payment.

Things to consider when shopping for a mortgage and after owning a home
1 First of all, if you can afford to put down 20% when buying a home, do it and ignore this article.
2 Check the mortgage insurance removal policy when shopping for a mortgage.
3 Pay down the principal (even $50/month) that will increase your home equity faster.
4 Check home appreciation once a year with your trusted real estate agent and see if your LTV is less than 80%.
5 Keep up with the monthly mortgage payment to have a good payment history and credit standing.
6 If you are considering home improvement projects, focus on equity improving items (experienced realtors know what adds most value to a home).

Other options
1 If you meet all requirements to remove mortgage insurance and if the lender doesn’t allow the removal, you may file a complaint to the Consumer Financial Protection Bureau: https://www.consumerfinance.gov/complaint/
2 Refinance your property, assuming you want to keep the property long enough to justify the cost and there’s enough equity to avoid the mortgage insurance.
3 Sell your property and upgrade or downgrade.

Mortgage Insurance Link
Homeowners Protection Act (PMI Cancellation Act)

*Based on Portland Oregon Median home price ($400,000, with average credit score, 3-15% downpayment at 4.5% interest rate for 30 year loan).
** Please check with your lenders because there are many variables and different rules about mortgage insurance removal per lenders, per loan programs and your payment history, etc.
*** FHA loan after June 3rd, 2013 with less than 10% downpayment, investment properties, not single family home, late on payment, etc. 

Would you like good lender recommendation?   

13 reasons to rent or buy real estate

Rent vs. Buying in Oregon and anywhere?

Rent vs. Buying in Oregon and anywhere?
Photo by Pixabay

Here are some cases that renting makes more sense (#1-7): 

#1 Your cash flow is tight due to job changes, high medical bills, etc. and you don’t have several months’ reserves saved.

#2 Your rent costs about 40% less than owning a similar house (Owning cost: PITI-mortgage Principal, Interest, tax and insurance) and that without the 40% saving, your cash flow would be negative.

#3 Traveling most of the year, living abroad like in Tim Ferriss’s vagabonding life style.

#4 You are new in town, plan to stay long term, but not sure which part of town would be the best for yourself and/or the family.  6 -12 months rental would give you the time to learn about the city and areas you really like, and then you can target those areas to buy before rental period ends.

#5 If you have the ability to utilize an opportunity cost (cost to buy a property, like down payment and closing costs) and get 15%+ return on your investment.

#6 If you live in extremely high home price areas (SF, Irvine, Honolulu Downtown, etc.) where the Home Affordability Index is well below 100.

#7 Not certain how long you’ll be living in an area (higher than 60% chance of moving out of city or state within two years due to job or family situation changes); it might be better to rent unless you can buy a property that will rent out and gives a neutral cash flow – meaning monthly expenses of owning (mortgage, interest, tax, insurance, maintenance) is equal to rental income minus expenses.

people gathered inside house sitting on sofa
Photo by Daria Shevtsova

On the flip side, if none of the above reasons apply to your situation, buying should make more sense (#8-13).

As a real estate professional, I get the question, “how’s the market?” a lot.  I’d tell them the market is very good most of the times unless I see multiple real estate market crash indicators lining up.   Otherwise, real estate purchasing is one of the safest investments you can make in the United States.  This shows why you should buy (in Renting vs. Buying comparison).

#8 You pay your landlord’s mortgage vs. You pay your own mortgage

#9 No equity vs. Equity grows as loan balance reduces and home value appreciates

#10 No tax breaks vs. Deduct mortgage interest and property taxes from your income

#11 Uncontrollable rent increase or eviction potential vs. Set house payments that allows for easier budgeting (with fixed mortgage, not variable) and is stable (your house).

#12 Possible restrictions of pets, number of guests and/or usage vs. Invite anyone and have your choice of pets, like one of my clients with 7 dogs (unless in HOA restricted areas such as condos).

#13 You can’t really change much of the decoration (colors, fixtures, etc) vs. Make it your place, any way you want.

My friend Kevin’s story

My friend Kevin, who moved to Portland in 2010ish, was on my tennis team over the years.  When he left town for a better job opportunity on the east coast around 2015, he said, “I should have listened to you and bought a small place several years ago.  Then I would be leaving here with a nice bit of cash or at least take back the rent I paid over the years.”  As you may know, between 2010-2012 was the best time to buy real estate in Portland, Oregon.  He probably would have left town with about $50-100k in his pocket in that 4-5 year period.   Even without the 2007 crash and 2013 bounce-back (considering the historic average of 3-4% annual real estate appreciation), he would have gained $10-20k (if he bought a $200,000 property and stayed there for 4 years).  He probably would have bought a rentable property (if he hired me as his agent :), which then would become a small cash flow first investment property if he chose to keep it.  If only he had bought!

Call 503-868-0123 if you’d like to explore your options or fill out the form below.  We will contact you and chat about your options.  We are licensed in Oregon, however we know some great real estate agents across the county and internationally.  Let us know how we may help!

Smooth home buying experience without delay of closing and stress.

What happens if a mortgage lender fails to release funds to close on time? In Oregon real estate transactions, this happens more often than you’d think.

The short answer is: you can lose the house that you fell in love with. It would be a heartbreaker.

So how can this happen? Lack of communication between the parties, people not understanding the timeline from accepted offer to closing, not ordering the appraisal early enough, not going through the pre-approval process early enough, inexperienced professionals, etc. At the end, if the lender doesn’t send the loan document a minimum of 2 days before closing day to the escrow agent, everyone who is involved in the transaction are going to get very stressed. Trust me, nobody needs this– buying a house and getting ready to move is stressful enough. Doing everything early is a very good thing.

So what needs to happen before closing a real estate transaction in Oregon? If these don’t happen in this sequence in the last 4-5 days, the chance of not closing goes up. I’ll list in reverse order (weekends and holidays don’t count here):

Closing day: You get the house key! Bring sleeping bag, order a pizza (or quinoa salad), open a bottle of wine or champagne.

Closing day around noon: Escrow agent records the transaction with the county recording office.

Closing day -1 (I prefer at least 3 days earlier): Buyer signs closing documents at the escrow office. About 40 minutes of shuffling papers and signing a bunch of papers (a nice pen will help).

Closing day -2 (Closing Document review day 3): Loan documents are sent to escrow and escrow prepares the documents for the buyer signatures.

Closing day -3 (CD day 2): nothing can happen, so might as well call the utility companies and request service under your name as of the closing date.

Closing day -4 (CD day 1): Buyer receives closing documents from lender for review. Buyer can only sign after 3 business days from the day receiving this closing disclosure.

Here’s a list of things you can do to minimize a potential delay of closing, so you don’t stay at a hotel or Air B&B:

1 Work with an experienced and reputable real estate agent who can foresee and prevent any potential issues.

2 Work with a reputable lender who has the track record of successful closings.

3 Go through the loan pre-approval process thoroughly in advance (before making an offer).

4 Complete the loan application as soon as you have an accepted contract.

5 Order the appraisal during the inspection negotiation period, so that the appraisal happens soon after the repair negotiation is finished. But make sure the the appraiser doesn’t inspect the house during repair negotiations (you may end up paying for the appraisal and potentially lose the leverage of the negotiation.)

6 Submit all lender required documents (pay stub, employment verification, etc) early.

7 Don’t buy expensive items that could affect your debt to income ratio or your credit score.

8 Keep your job:)

Call Shawn at 503-515-4499 for a smooth real estate buying experience.

Buyer’s Consultation Request (Free and No obligation)