Category: Buying Advice

What to do when buying real estate in Lake Oswego, Oregon

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Tips & Tidbits

  • “On average, home owners have a median worth of nearly $200,000 while renters are essentially living paycheck to paycheck, with only $4,000 net worth on average. And renters as a share of households are growing their ranks having risen by 6 million from a decade ago.”  Lawrence Yun, Chief Economist of the National Association of Realtors (NAR)
  • “ Adults under 35 living at home = 30.3%.  Under 35 Ownership Rate = 36.7%”       NAR Research, December 2013
  •  Have you overspent during the holidays? If so, you’re not alone! I have a few tips for catching up, and getting those credit cards back in line….  And, if you implement these ideas, it’ll go a long way to keeping your credit score squeaky clean, and help you build funds for the home you’ve been wanting to buy!

Here are 5 Steps (I borrowed these ideas from KeyBank ; ) to help get you back on track:

“Balance your budget“. If you’re saying “duh”, then think about trimming some expenses using these tips:

1)  “Pack Your Own”. Yup. Bring your coffee from home instead of stopping for a latte. Bring your own lunch for awhile. You’ll be surprised at how much you’ll save!

2 “Cut What You Won’t Miss”. Trim things like the little extras in your cable package, work out at home instead of at the gym or at your local community center, scale back your mobile service if you rarely max out your minutes, cancel subscriptions and get your favorite magazine copies at the library instead.

3) “Embrace Used”. When shopping for things that depreciate quickly, like cars, try re-sale!  Even for things like clothing, exercise equipment, and even electronics, (I just bought a brand new elyptical machine on Craigslist for $100.!!!) it can be the best way to go.

4) “Find Free Entertainment”.  Besides books & magazines, libraries also offer movies that you can check out, as well as books, video games & newspapers. Most libraries also offer Internet acccess on their computers for your use. Local high schools, colleges, art centers, and community centers offer low-cost or free concerts & plays.

5) “Clip Coupons and Dig for Discounts”.  Let’s face it. The Recession made coupons cool! Look for deals at your favorite restaurants, your grocery store, drug store… the deals are there… use them!

 

 

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News & Notes

Here is the latest data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) activity:

So far this year the overall Portland area has seen 25,667 Accepted Offers, and 24,872 Closed Sales which is up 12.9% from 22,726 Accepted Offers (Pendings) and 15.4% from 21,546 Closed Sales in the same period last year. Though Closed Sales decreased from October 2013 by 16.8%, November had the most Closed Sales since 2006!

According to the RMLS Market Action Report for the Portland Metro Area  November, 2013:

  • At 1,821, November Closed Sales increased by 88 over November 2012, but are down from this October’s 2,189.
  • There were 1,976 New Listings in November. This was a decrease of 14% from this October, and an increase of 5.6% over November of 2012.
  • The Average Sale Price in November was $318,100, up $4,000 from $314,100 in October 2013.
  • November Pending Sales (accepted offers) dropped by 14% compard to this October, and  increased by 5.6% as compared to November 2012.

The combined areas of Lake Oswego and West Linn  for October reported:

    • 441 Active Listings
    • 103 New Listings
    • 83 Pending Sales
    • 97 Closed Sales
    • An average Sale Price of $498,200.
    • Average Time on the Market: 79 Days
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Hmmmm… What to do? Remodel or Move???

hmmmOk, it’s the winter and you’re spending more time indoors. You may start to get that bug that niggles at you and asks “Should we remodel and stay here or should we move to a home that is more of what we want?”  Well, the answer will be different for each person who asks themselves this question, but there are a  few things you can also ask yourself to help you along the decision-making trail.

* Think about the details & variables: What’s the current condition of your property?  It’s important to get real about costs and time-frames. What might you end up with in terms of additional projects within projects as you move forward… i.e. would you need to do extensive re-wiring?  Is there knob & tube wiring in your older home now that would have to be addressed, or would the new electrical load require considerable upgrading? (Knob & tube should be addressed anyway, by the way, and can possibly adversely affect your insurance situation!) What are the additional costs you may not have thought of if you “add on” like foundational work/support requirements/plumbing/sewer lines etc?  Have you checked into local setback requirements? Do you live in a formal HOA neighborhood where the Association would want to dictate some of what they allow you to do? Etc

* Do you have a trusted contractor?  If not, you may want to consider doing some research beforehand to make sure that you connect with someone reputable & honest.  Yelp and Angie’s List can be helpful. Also, if you have a trusted Realtor, they can often give you some good leads on people you would likely be satisfied working with based on personal experience and feedback from clients. Dianne or I would be happy to help in that regard if you do NOT have a trusted Realtor to help you.

* What would your financing look like for the remodel or add-on?  Be realistic about your costs and stack that up against your financial picture if you chose to move to a newer home or rebuild.  The devil is in the details, as they say.  My first remodeling project “way back when” actually doubled  over expected cost.

* Have you talked to a mortgage broker about just what your payments would look like if you moved to a newer more suitable home?  (If you don’t have a trusted mortgage broker, give me a call… I can steer you to good people).  If you think you know what your payment would look like because you talked to someone last year or the year before, think again. A LOT has changed since then…regulation-wise, rate-wise, and timeline-wise in the mortgage industry. I always advise people to make decisions based on facts, and not on conjecture. A mortgage broker can take your current data, find out what your desired payment might be, and tell you how much house you can buy for your money. It truly is relatively painless : )  and THEN you are making decisions based on actual factual information.  Mortgage Brokers generally do not charge for doing this for you… it’s part of their job.

* Beware of ending up as the “Best House on the Block”. Why?  Well, consider that when it comes time to sell down the line, if you are the best house on the block, you will most likely not be able to receive the appraised value you would like to because your home is being “comped” with homes near you that are not nearly as nice.  Just sayin’.

* Lastly (we could talk about this for a long while, but I’ve gotta run! : )  check out this amazing site to find out what kind of return you might expect on various remodeling projects.  It’s called “Cost vs Value” and can really give you some great tips on whether it’s worth your while investing in certain kinds of remodeling. CLICK HERE

 

I hope this was helpful information. Remember that the answert to “what is right?” is different for each individual or family and varies baseed on each circumstance.

Best of luck to you!

Linda

 

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News & Notes

Here is the latest data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) activity:

It’s still Fall in Lake Oswego & the Portland area (though it is starting to feel more like Winter : ) and that means we see a continued seasonal slowing in real estate activity (you all know this ; ), but there are still steady sales going on. So far this year the overall Portland area has seen 23,955 Accepted Offers. We’ve also had a whopping 22,909 Closed Sales so far which is up 16.2% compared to last year at this same time. October had the most Closed Sales since 2006! Yes, things are looking up, up, up!

According to the RMLS Market Action Report for the Portland Metro Area  October, 2013:

  • At 2,189, October Closed Sales increased 1.4% over September , and 4.1% over October 2012.
  • There were 2,535 New Listings in October. This was a decrease of 13.3% from September, and an increase of 5% over October of 2012.
  • The Average Sale Price in October was $314,100, down from $317,300 in September.
  • October Pending Sales (accepted offers) dropped by 4.2% compard to September, and decreased by 2.4% as compared to October 2012.

The combined areas of Lake Oswego and West Linn  for October reported:

    • 489 Active Listings
    • 137 New Listings
    • 132 Pending Sales
    • 117 Closed Sales
    • An average Sale Price of $438,400.
    • Average Time on the Market: 79 Days
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Do Houses Sell in the Winter?

When counseling people at this time of year, particularly people who are thinking of selling their homes, I am commonly asked if this is a good time to sell a house. Here is my take on the timing for both selling and buying.

For People Selling a Home
While the real estate market typically slows down during the winter, and particularly during the holidays, the fact remains that houses sell all year around. I see several advantages to selling at this time of year.

First, there are fewer houses for sell, so there is less competition. A well priced and well staged home will really stand out. The time of year also gives you some staging opportunities with holiday decor and lighting. It needs to be done tastefully. You don’t want your house to look like a holiday garage sale. Choose your decorating carefully and don’t over do it. Please do turn on every light in the house for showings.

Second, if a corporation aligns its fiscal year to the calendar year, it means that more executives get transferred at this time of year. Corporations like to plan for the year end and expense out as much as possible. So if you are a seller at this time of year, you may find more highly qualified executives on the move.

Third, people who are shopping for a house at this time of year are MOTIVATED. It is certainly easier to move during nice weather and when your time is not consumed by holiday obligations. So while there may be fewer buyers, the quality of buyers is quite high.

"A Walk in the Rain", Marcel Germain
“A Walk in the Rain”, Marcel Germain

For People Thinking of Buying a Home

This is an absolutely optimum time of year to buy, for several reasons.

First, historically interest rates are lower in the winter than at other times of the year. Mortgage companies need to be making loans to be making money. When the market slows down, lenders tend to lower interest rates to make lending their money more attractive to buyers. So you may be able to get a better rate at this time of year than you will next spring.

Second, there is no better time of year to do a home inspection. If there is a water issue, it will be more likely found during the active rainy season. That is not to say that a good home inspector won’t find evidence of water issues in the bone dry days of July. Water does after all leave water marks and stains. But in the full throws of winter, water is actively engaging with the house and it can be very easily seen and figured out.

Last, if a house looks good at 4:30 on a gray November day, it is going to look sensational on a 75 degree day in May. Seriously, a house that looks good in the winter will knock your socks off in the summer.

What it really boils down to is do you need to be making your move now? If you do, don’t hesitate to get into the market to either buy or to sell. This is a great time of year to do both.

Dianne

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News & Notes

Here is the latest data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) activity:

September’s activity is what they’re calling “Tapering Seasonally”  : )   It’s down from August, but very strong compared to last year.  According to RMLS, it was the strongest September for New Listings since 2010!

According to the RMLS Market Action Report for the Portland Metro Area  September, 2013:

  • At 2,158, September Closed Sales were a 17.7% down from August’s 2,623, and/but represent the best the best September for Closed Sales since 2006  when there were 2,506 !
  • There were 2,925 New Listings in September. This was a decrease of 14.5% from August, and an increase of 19.3% over September of 2012’s total of 2,451.
  • The Average Sale Price in August was $317,300, down from $321,900 in August 2013.
  • Pending Sales (accepted offers) dropped slightly from August 2013’s total of 2,614  to 2,219 in September.

The combined areas of Lake Oswego and West Linn  for August reported :

    • 558 Active Listings
    • 161 New Listings
    • 110Pending Sales
    • 111Closed Sales
    • An average Sale Price of $459,800.
    • Average Time on the Market: 78Days
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Tips & Tidbits

  • Recently, according to a NAR (Natl’ Assoc. of Realtors) publication’s questionnaire, numbers were compiled on how many Realtors would “stage a fridge”.  Here are the interesting results:

– 49%   “Absolutely. No detail is too small for some buyers.”

– 26%   “Only if the fridge is staying with the house.”

– 15%   “Maybe, but it’s overkill.  Anyone who cares what’s in the fridge is too picky.”

– 10%   “Yuck! I’m a real estate professional, not a maid!”

Now me?  I know that staging is important.  And it’s more important in some homes than others.  I will go over strategies  with my clients individually tailored to create great “flow” in their home, and an easy, expansive and pleasant showing experience for their potential Buyers… sometimes by moving furniture a bit, moving, removing or swapping out artwork, de-cluttering and clearing countertops, as well as generally minimizing.  I will say, though, that I am a sucker for the fact that people still need to “Live” in their home during the Selling process, so I am not as strict as some agents. But, I will explain that if someone is distracted by your personal belongings- family photos etc, they are now not looking at your home… they are looking at your things….  You want the Buyer to be able to see themselves living in your home, picturing what their furniture will look like over there, and getting excited at the idea of living in it.  That’s why neutral colors are encouraged, what I call “old lady wallpaper” is discouraged, and things that might evoke a negative response in people such as overly religious decor, lots of alcohol on display or political “statements” are not advised. The way it was explained to me before I was a Realtor and was selling my first home makes the most sense: “The way you live in a home (most people anyway : ) is completely different from the way you sell a home.”    ***I would not stage a fridge : )

  • When Selling your home, make sure to fill out each line of the Property Disclosures. There are boxes for N/A and Unknown.  If you don’t see the appropriate box, just write in N/A or whatever is correct.  The point is to disclose everything you know about your property, and I will tell you that the best policy is “Disclose, Disclose, Disclose”.  If there is something you are not sure you should put on the Disclosure because you think that if you did, it would make someone potentially think twice about buying your home… that is a huge hint to disclose it!  Most Buyers know that they are not buying a brand new home (unless they are : )  and so are expecting there to be some issues here & there.  These are fodder for potential negotiation, and you know that, as a Buyer, you yourself would feel much more comfortable & more likely to remain engaged buying from people who were being up-front with you about their home. You can also make the choice to correct whatever issue it is prior to filling out the Disclosure form. Disclosing “issues” also protects you in the event that something happens later on after the sale, and was the result of something that you normally would have been aware of but didn’t include on your disclosures. You can attach separate pieces of paper to explain certain things, or, if you have room, just make a note on the form itself. Remember… Disclose, Disclose, Disclose!
  • I’m told property taxes were just confirmed yesterday.  At this time of year, if you are in the middle of a transaction, it’s always good to talk w/your Agent and Escrow Offcer about how taxes will play out in your Closing breakdown.  The tax year begins on July 1st, and runs through June 30th of the following year, BUT, the tax amounts are not finalized until around this time of year.  If you are buying in September, for instance, Escrow will likely take a stab at figuring out what your taxes will amount to by taking last year’s number, and adding on a certain percent.  If you over-pay at Closing, you will receive a check in the mail shortly afterward refunding anything over-estimated.  Escrow is your neutral third party. Utilize their services so that you are fully prepared when you get to the closing table!
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News & Notes

Here is the latest data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) activity:

August activity was slightly down from July, but still very much improved from August of 2012.

According to the RMLS Market Action Report for the Portland Metro Area  August, 2013:

  • At 2,623, August Closed Sales were a 5.2% down from July’s 2,766, and/but represent the best the best August for Closed Salws since 2009!
  • There were 3,423 New Listings in August. This was a decrease of 11.7% from July, and an increase of 10.5% over August of 2012.
  • The Average Sale Price in August was $321,900, down from $326,500 in July 2013.
  • Pending Sales (accepted offers) dropped slightly from July 2013’s total of 2,738  to 2,614 in August.

The combined areas of Lake Oswego and West Linn  for August reported :

    • 568 Active Listings
    • 206 New Listings
    • 130Pending Sales
    • 125 Closed Sales
    • An average Sale Price of $548,600.
    • Average Time on the Market: 75Days
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Loan Opportunity

nfculogoI recently became aware of a loan program that caught my attention enough that I want to get the word out.

 

Navy Federal Credit Union is offering 100% financing to it’s members.  This is a remarkable loan product with no Purchaser’s Mortgage Insurance.   It is available to anyone who is a member of Navy Federal.

 

Who is eligible to join Navy Federal?  Members and veterans of our armed forces: Navy, Army, Marines, Air Force and Coast Guard, but also those who work in the Department of Defense.  In addition, family members of these veterans can join:  grandparents, grandkids, siblings, spouses,  and children.

 

This means that you don’t have to be a veteran yourself.  If your Mom or grandfather is a veteran, they can join Navy Federal and then you can too.

 

I come from a family with lots of veterans, but also lots who are not.  When I found out about this program, it really made my day.  You see, my son is a Marine Veteran.  He will be able to use his VA benefit to buy his first home with 100% financing, but my daughter is not a veteran.  I had assumed she would have to save her down payment and closing costs, which means home ownership is still a few years away.  Now I know otherwise.  As a Marine veteran, when her brother joins Navy Federal, she can too.  And then she can obtain 100% financing and become a home owner much, much sooner.

 

So you can see how I want to get the message out that this program is available.  Our veterans deserve our admiration and support for their service.  I also know from personal experience that the family of our men and women in the armed forces also serve.  We worry, we support, we comfort, and now we can garner some benefits as well.

 

Please visit the Navy Federal Credit Union website to learn more by clicking here.  You can also call them directly at 1-800-842-6328.

 

And when you are ready to go find that house with your Navy Federal loan, please give Linda or myself a call, we are here to help.

Dianne

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News & Notes

Here is the latest data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) activity:

July numbers were very good, mostly “up” and much better than the trend we saw from May to June.

According to the RMLS Market Action Report for the Portland Metro Area June, 2013:

  • At 2,766, July Closed Sales were a 10.2% increase from June’s 2,500, and a big jump over July 2012’s total of 1,973.
  • There were 3,877 New Listings in July. This was an increase of 3.4% from June, and an increase of 22.6% over July of 2012.
  • The Average Sale Price in July was $326,500, up $12,600. from $313,900 in June 2013.
  • Pending Sales (accepted offers) dropped slightly from June 2013’s total of 2,804  to 2,738  in July.

For our Property Blotter readers, the numbers for the combined area of Lake Oswego and West Linn  were up in all but one categories (last month Pendings were at 152 : ):

    • 561 Active Listings
    • 245 New Listings
    • 150Pending Sales
    • 183 Closed Sales
    • An average Sale Price of $525,300.
    • Average Time on the Market: 88Days