I hope you watch this and really compare lenders to save yourself money now and for the next 30 years when purchasing a home. If you are buying with cash, you don’t need to watch this. But about 80% of buyers probably would be getting some kind of mortgage loan.
As a real estate agent, I work with many different loan programs and lenders for buyers and sellers. This approach (email template) was created by trying to help a buyer who wanted to find the best deal, so I drafted this email to help the buyer.
Send this early in the morning to lenders that you are comparing. Legit and experienced lenders will get back to you the same day.
I hope you get the best deal on your purchase loan!
Here’s an email template to compare the lenders for you:
Can you please send me your most accurate estimate of the lender’s fees and closing costs?
Based on $xx purchase price and $xx loan amount and no points:
1. What would be the rate as of today (July 1st) that I can get? Assuming I have a 700 (or your approximate credit score) credit score…
2. Monthly payment (principal and interest) without tax and insurance?
3. Assuming 30 year, what would be the total interest paid for the life of the loan?
4. Total lender fee (not including recording, appraisal, title insurance…)? The fee that the lender takes.
5. Total closing cost (not including escrow fee, tax reserves, insurance and other prepaids)?
Here’s another song for you, an original song from year 2000…. Real estate market is doing ok. No significant price dip so far, less buyer showings, but the sky is not falling. We are going to get through this together. Stay positive, do everything we can to get better fast. Please enjoy this song and be well!
I’m going to share the Oregon home buying process, including important due dates. I hope it is helpful and I’d be happy to help if you are purchasing or selling real estate in the Portland Metro Area.
Earnest money deposit: Typically 1% of the purchase price is agreed on as earnest money in an offer. It needs to be deposited within 3 business days after the offer has been accepted. It will be refunded when the transaction is properly terminated within the timeline below. If the transaction proceeds to closing, it will be part of the down payment.
Property Disclosure Timeline: Within 5 business days after receiving the Property Disclosure from the seller’s agent, the buyer has the right to revoke the disclosure and cancel the transaction without doing the home inspection.
Home inspection period: Typically within 10 business days unless agreed upon differently. The buyer needs to perform home inspections (including radon and sewer line, etc) AND negotiate repairs with the seller. It is the buyer’s responsibility to keep track of the timeline, otherwise the inspection contingency period ends and you will be buying it as-is.
The video includes more details of the timelines. I kinda look mad here, but Youtube picked the thumbnail.
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…
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.
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!
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
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
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
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
So it’s a 6-step brand-new-home-buying process. There we go.
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.
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.
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.
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!