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 used to cold call expired listing homeowners and For Sale By Owners. It was one of the toughest parts of a realtor’s job. This cold calling isn’t an easy thing because these homeowners get about a dozen or more calls a day. However, I was somewhat successful at it and met some great families and helped them sell their homes.
예전엔 계약만기된 집주인, 주인이 직접 파는집에 세일즈 전화를 했었어요. 부동산업자가 하는일중에 가장어려웠던 일이었습니다. 어려운 이유는 집주인들이 보편적으로 10-20통씩 하루에 전화를 받거든요. 그래도 그나마 성공적이었어요. 좋은 고객들 많이 만나서 집들을 팔아드렸어요. .
Now, I have been bombarded with unsolicited calls. I really do not enjoy getting those calls. So I decided not to make calls to homeowners either. I thought I shouldn’t send what I don’t want to receive. I feel the same with door-to-door solicitation unless it’s neighborhood kids selling cookies.
요근래엔 세일즈 전화, 스푸핑 전화등 받기 싫은 전화들이 매일 오는게 소비자 입장에서 싫어서, 내가 싫어하는걸 왜 다른사람한테 줘야하는 생각에, 그 세일즈 전화는 그만두기로 했어요. 집방문 세일즈도 똑같은 생각에 안하죠. 동내 애들이 과자 파는 경우가 아니면.
So for now, no listing solicitation calls. But I do have the necessary selling skills and feel that someone could use my help… I have no idea if this blog will reach any of those homeowners who need help to sell their “un-sold, expired, cancelled, FSBO…” homes, but I’ll try this and see what happens.
그래서 세일즈 전화는 안하되, 제가 집파는 기술을 도움이 필요한 분께(계약만기된 안팔린집, 주인 직접파는 집) 소개시키기 위해서, 이 블로그를 이용해 노력하겠지만, 연결이 될지 안될지는 몰라요.
So, if you need help in selling one of those homes, please check out the video above or keep reading on:
만약 못판 부동산 매물이 있으시면, 비디오를 보시고 이 문구도 보세요.
Here’s my approach to selling “un-sold” homes:
Excellent online presentation of the home
Focus on strengths of the property, not weaknesses
Make necessary adjustments
“Turn every stone” selling approach
Network with top selling agents
Selling since 2008 “learned business & survived through the market crash.”
Commitment to provide excellent service to clients
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!
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.
It was a blast to meet and hang with fellow music lovers as well as connect with folks who needed help in selling or buying real estate. It was a great way to combine the things I enjoy doing! Here’s the summary clips of the expo and the lucky winner of the door prize. Enjoy!
Shawn Realty is proud to be sponsoring the Oregon Guitar Expo event this year! We are having a guitar giveaway (sweepstakes) at the door! Win this awesome Fender Nylon String Guitar (ESC80, Retail value $169.99). This guitar sounds very sweet. Check out the video below. Hope to see you at the expo! ~Shawn
Shawn Realty Guitar Giveaway Fender ESC80
Shawn Realty Guitar Giveaway Fender ESC80 2
Rules: 1 prize guitar for drawing. 1 free fillout entry form per event participant at the expo. Drawing at 4 pm, winner will be contacted by email and phone call if not present.
Oregon Guitar Expo 2018
13121 SE McLoughlin Blvd.
Oak Grove, OR 97222
10:00 a.m. to 4:00 pm, Sunday Oct. 7, 2018
KIDS: 12 & under are FREE with a paying adult.
EXPO attendees are welcome to bring personal instrumentsthrough the door with their paid admission to sell or tradewith dealers and or other show goers. https://www.oregonguitarexpo.com