Buying Advice – Page 33 – Property Blotter

September 17, 2009

First Time Home Buyer?

Dollar You know, Dianne and I talk about this a lot, but I think it bears mentioning at this crucial moment when we have so little time before the $8,000. tax credit incentive has timed out (it expires on December 1st… that means that any transaction where there is the intention of taking advantage of this needs to close by November 30th). What is it that Dianne and I harp on so often that comes into play here? I’ll tell you- it’s “affordable homes in Lake Oswego”. You know, the kind that many first time home buyers would be interested in… homes under, let’s say, $350,000… Homes in a great school district, in a community where all types of individuals tend to participate and make their voices heard, where there are farmers markets, art festivals, music in the park, great shops & services, where families are valued and supported with programs and activities specific to those needs… and on & on. Here is a link to the city’s website if you’d like to find out more: http://www.ci.oswego.or.us/

I think that Lake Oswego, as Dianne has pointed out time & time again, is sometimes overlooked by first-time home buyers due to a perception that they just would not be able to afford a home in L.O. Now… each individual circumstance is of course different, but if you can qualify for any number of the great lender programs that I know are out there now, and are looking for a home under $350,000., according to RMLS there happen to be at this moment, today, 53 Detached Homes available in Lake Oswego… and the bottom end is $199,000. In addition, there are 129 Condos & Townhomes available right now under $350,000… and the bottom end there is at $89,800.

If this is sparking some thinking on your part about looking into this idea for yourself, or someone you know, please do not wait to get going. Talk to your Realtor, or give Dianne or myself a call *today* if you are not already working with a Realtor. This is not me pushing here, I am talking about the chance of a lifetime in prices, rates, and this $8,000. tax credit, and this is the moment. Here are a few reasons why:

Now, more than ever, it is important to have a good understanding of the timelines involved in purchasing a home… especially if you want to take advantage of the first-time home buyer tax credit:
Fact: The average timeline from when you find a property until it closes is 30-45 days.
Fact: You will need some time to find the property that you wish to buy. (Some buyers find their home right away, and some need more time.)
Fact: The week before November 30th is Thanksgiving! Many banks and title companies are traditionally closed for the last 3 days of that week.
Fact: November 30th is the Monday following the typical 3 day bank shutdowns.
Fact: There will surely be many, many buyers who will wait until the last minute to start looking for homes. This means that November 30th is sure to be an extremely busy day and many banks and title companies will not be equipped to handle all of the expected volume.
Fact: As more buyers start to frantically hit the market to take advantage of the tax credit, the selection of properties is sure to decrease.
Fact: Waiting too long is a gamble you should not take if you are truly interested. The best strategy is to work with a professional who has a great team and can develop a plan with you to hit the deadline.

Ok, I’ll get off my soapbox now : ) I’ve at least done my part in getting the word out.

Happy house-hunting! Please feel free to give me or Dianne a call if you’d like to get going. We are really enjoying working with as many of you as possible to ensure that you get to take advantage of this great opportunity.

Very Best,

Linda

September 3, 2009

More Random Tips:

Disclose, Disclose, Disclose!

Once upon a time there was a transaction wherein the Realtor representing the Buyer noticed some abnormalities in the Seller’s answers to questions on the Disclosures. FYI, when you are selling a home, the best and only rule is “Disclose, disclose, disclose!”. In this situation, the Seller, who had lived in the house for some time, seemed to have excellent knowledge of some things and no knowledge at all of things such as whether the roof had leaked while he/she lived there, whether there were any drainage problems on the property, and whether the main systems of the house were in good working order. A quick call to the Seller’s agent resulted in answers forthcoming that the Seller had not experienced any leaking from the roof, nor noticed any drainage problems, and that the systems were all working just fine. I think Seller’s get nervous when filling out these disclosures as they can seem like being asked to air your dirty laundry. Disclosures, however, are really important to the Seller and the Buyer alike. Basically, you just want to look at each question and answer to the best of your ability and knowledge. Sometimes an “N/A” is in order. Sometimes a “Yes” or a “No” is really called for, and sometimes an “Unknown” is absolutely fine. If you are a Seller and fail to disclose something about the property, and it becomes apparent after closing, you could possibly be liable for misrepresenting on your Disclosures… even if it was just a slip of the pen or a spat of bad memory. It’s much better to just let it all hang out, and your Buyers will appreciate your obvious candor. A Buyer feels much more comfortable seeing a few dings on the disclosures than they do wondering at odd answers or obvious misstatements… such as that all work was done with permits when the naked eye can tell that some was not. Again, sometimes you have to take a moment to remember… especially if you’ve lived in a home for a long time. So anyhoo, better just to lay it all out there. Calms everyone right down, protects you as the Seller & sets the tone for a good transaction.

Oil Tanks & the DEQ

Speaking of instructional situations… Make sure that when you are purchasing or selling a home whose heating system has been updated at some point, you check to find out if there was ever an underground oil tank on the property. Dianne and I have written posts on this in the past and you can find them in the archives here, but it is very important to find out 1) If one was/is on the property, 2) If so, was it decommissioned?, and 3) If it was decommissioned, was a DEQ Certificate obtained? (You can call DEQ, give them your address, and find out pretty quickly.) This last question is the kicker, and I find that people are confused about it. If you are a Seller and bought your home with the understanding that it had an oil tank that was decommissioned, but you did not find out if there was a DEQ Certificate and there is NOT one… You will most certainly be required to provide one before closing (Your Buyer does not want to inherit this situation for themselves for when they sell in the future). This involves calling a DEQ-licensed Environmental Services provider. The process includes locating the underground tank, taking soil samples, checking the decommission job if one was done, and verifying that it was done to DEQ standards. If all this checks out, you can get yourself a DEQ Certificate to pass on to your Buyer. So… better to check this out before putting your property on the market rather than getting surprised during a transaction. And Buyers… remember to ask your Realtor about this for more clarification.

Feel free to call Dianne or myself any time for more information on any of the tidbits we provide. We love to help our Property Blotter readers and clients! Hope this was helpful to you today.

Very Best,

Linda

August 6, 2009August 6, 2009

Insulation Anyone?

Insulation 1-1 So…. you’re moving, or getting ready to sell, or in the middle of a home inspection on either end of the transaction. One of the myriad things that may cross your path is the issue of insulation. Some homes have it, some don’t. Some have it in the walls but nowhere else, some have it in the floors and ceilings. A lot depends on the era of the home and whether and how much updating has been done. If you are selling your home and your home has insulation, say underneath, that has been damaged (squirrels, etc), you may be asked to repair or replace it. If you have an older home with blown-in insulation in the attic, you may want to know what the material consists of. If you are buying a home without insulation in the walls, you may be wanting to add some after the purchase is complete. Here are some hopefully helpful tidbits on insulation:

Insulation is one of the lowest-cost options for improving energy efficiency (saving money : ) You can reduce your heating and cooling needs by up to 30% just by investing a few hundred dollars in insulation and weatherization products.
Should you insulate your home? Well, only 20% of homes built before 1980 are said to be well insulated, so you may want to investigate whether yours fits into this category.
How does insulation work? Heat moves naturally from a warmer to a cooler space. So, in winter, it is trying to move to the outdoors through walls, ceilings, floors etc. In the summer, the hot air outside is trying to make it indoors.
Insulation comes in a variety of forms: in blankets, in batts, bagged & pour-ready, and “blown-in” material.
An important consideration when choosing a form of insulation is flammability. Keep insulation at least 3 inches from light fixture wiring and other heat-producing equipment unless it is marked “IC” allowing for direct insulation contact.
Insulation is made of either:

“Mineral Wool” (which includes rock & fibrous glass). These can be blown-in or purchased in blankets or batts with foil or paper vapor barrier. Rock Wool can also be purchased in bagged form. *This material is inherently non-flammable, but the products that have paper vapor barrier attached may be flammable.
“Plastic Foam Resin” (made of polystyrene, polyurethane, or urea formaldehyde). It can be purchased in sheets or bolts, or a contractor may spray the foam in place. *These products are generally not ‘Fire-Proof”, but check to find out whether the product you are using is “Flame Retardant”, “Flame Resistant” or neither. Also ask about the ignition temperature… depending on the area in which you live, and other factors, some products, when approaching high ignition temperatures, can emit toxic gases. Additionally, polystyrene and polyurethane cannot be used safely unless enclosed in a flame and heat-resistant material such as gypsum board.
“Cellulose Insulation” (made of finely ground cellulose such as recycled newspaper). This can be blown in place. *Flame-retardant chemicals are usually added to reduce flammability. One thing to ask about is the type of chemical that may be part of this product as the use, for instance, of too much sulfate can cause potential corrosion of pipes and other metal material.

(NOTE: Bottom line, talk to your contractor or supplier to discuss which type of insulation is right for your home in whatever location and for whatever use you are employing it. This is ONLY meant as a primer to give you a better understanding of your options.)

The US Dept of Energy (DOE) measures insulation in R-Values, which are different for different areas of the country, and dependent on weather & temperature variations etc. Here is a link that will take you to a map allowing you to find your particular area & check the recommended R-Values: http://www.naima.org/pages/resources/library/pdf/BI487.PDF
When using fiberglass insulation remember that “looser is better”. Tightly packed fiberglass reduces the R-Value.
Do not block vents with insulation.
Use high density insulation such as rigid foam boards on areas such as cathedral ceilings and exterior walls.
Contrary to popular belief, when installing fiberglass insulation under the flooring in a crawlspace, you attach the paper or foil vapor barrier toward the heated area, not YOU. Secure with rope or wire. Also, remember to insulate piping and ducting if you are opting for insulating under the floor. (NOTE: Consult your contractor or supplier as there are different ways of insulating a crawlspace depending on whether it is vented or un-vented.)
When installing this fiberglass insulation w/backing in walls under construction you will again face the backing material toward the heated space… so this time it will be facing YOU.
When insulating walls in already-built homes lacking it, you will again want to consult with a contractor as there are varying opinions about whether to blow in insulation or not. Should you decide to do this, it is generally done through holes punched in the walls from the exterior of the home, and obviously is the material is blowin-in insulation of the kind you and your contractor have agreed-upon.
It is amazing how much energy can be saved by insulating around doors and windows (Having energy-efficient doors and windows also obviously helps too). Usually you are using a foam insulation here that can be applied directly into any cracks & openings.
There is a lot of talk about the environmental pluses and minuses of insulating. Obviously saving energy use is good for the planet, AND it can be argued that insulating too much creates an environment where a house cannot breathe, and the potential for toxic buildup inside the home of various substances can exist. Here are several links to more information on this issue so that you can decide for yourself : http://www.utilitybillbusters.com/articles/do-it-yourself-projects/hidden-dangers-of-home-repairs-over-insulating-and-weatherproofing/ , http://www.greenhomebuilding.com/QandA/natural/insulation.htm , http://www.greenfootsteps.com/best-insulation-for-homes.html , http://www.ehow.com/how_5197129_install-fiber-insulation-attic-walls.html
Here is a link to the DOE’s fact sheet and other helpful information regarding insulation and energy-efficiency: http://www.ornl.gov/sci/roofs+walls/insulation/ins_01.html

I hope this information has proven helpful to you in your individual situation. Obviously this is a large subject, and so maybe we’ll cover some specific issues in the future. Feel free to comment and add your own information, and/or request information directly relating to your needs.

July 16, 2009

Featured Home in Southwood Park

62nd-park Are you wanting to enroll your children in the Lake Oswego School District, but are concerned about finding a home that is large enough, that you can also afford? Look no further. A home that fits this profile has come onto the market.

Southwood Park

The Southwood Park neighborhood is actually an area of unincorporated Clackamas County. It is just North of Westlake and just West of Mountain Park. The street boundaries are Kruse Ridge Dr to the North, Sierra Vista/Twin Creek to the East, Pamela to the South and I-5 to the West. At the South end is Southwood Park, a City of Lake Oswego Park with 2.5 acres of woods and grassy open areas.

Because it is an unincorporated part of Clackamas County, it tends to have lower property taxes. But because it is in the Lake Oswego School District, it is highly desirable and popular for all manner of families. One important note: not all houses in Southwood Park are in the LO School District. At the North end some homes are in the Portland School District. So be sure to confirm the school attendance for the home you are interested in.

You should also be aware that it has extremely easy access to I-5, Hwy 217 and the Kruse Way business community. It is also close enough to Portland Community College Sylvania Campus that the school can be accessed via trails on foot or on bike.

As for real estate, when I think of Southwood Park, I think of great value for the dollar that you spend. An excellent example of this is in today’s Featured Property: 13638 SW 62nd.

Featured Home

This new listing has 4 bedrooms and 3 full baths. With2268 square feet, it also has a formal living room and 2 family rooms, all of which have either got a wood burning fireplace or a wood stove. The roof was replaced in 1998 with a 50-year metal roof. The windows were replaced in 2003, the deck in 2007, and the gutters in 2008. This summer the house has been totally repainted both inside and out. The lot is about 7000 square feet and is extremely private with mature landscaping. It sits just a short distance from Southwood Park.

I have confirmed that this home is located within the Lake Oswego School District. The elementary school is Oak Creek, the junior high is Lake Oswego Junior High School, and the high school is Lake Oswego High School.

Think about all of that space with lots of bedrooms and plenty of living areas. That’s a nice big house that could easily house 4 to 6 people. And the list price is just $319,900! It is just a great home for the money. Please let me know if you have any interest in further information. I’d be happy to send you a copy of the listing or to arrange for you to see the interior. E-mail me at jdgregoire@earthlink.net .

If you’d like to do a drive through the neighborhood, feel free to take a swing past this house. From Kruse Way in Lake Oswego go North on Westlake Dr. Turn West on Southwood Dr and then left again on SW 62nd. The house is all the way down the street, on your left, near the park: 13638 SW 62nd Ave.

Happy house hunting,

Dianne

July 1, 2009July 1, 2009

Observations on Inventory, the S & P Price Index, and Broken Sewers, Oh My!

Today’s editorial post is going to be a bit of a potpouri of information. There were just so many nice tidbits, I couldn’t seem to pick just one.

Observations On Current Inventory

Last February I ran the break down of the Inventory in Lake Oswego. At that time there were 418 detached homes for sale. I think my biggest concern was that of those homes 136 were priced at $1,000,000 or more. That is a lot of high-end homes. And that seems to be the slowest part of the market that is selling. What’s it look like today? Not much has changed. While sales have picked up a bit, the number of new listings coming onto the market is keeping the inventory from diminishing. Here is today’s breakdown:

Homes priced $100,000-$199,000, 1

Homes priced $200,000-$299,000, 19

Homes priced $300,000-$399,000, 46

Homes priced $400,000-$499,000, 54

Homes priced $500,000-$599,000, 51

Homes priced $600,000-$699,000, 38

Homes priced $700,000-$799,000, 35

Homes priced $800,000-$899,000, 30

Homes priced $900,000-$999,000, 31

Homes priced $1,000,000+, 135

That is a total inventory of detached homes of 440 with 135 priced at over $1,000,000. Probably the most interesting observation that I see is that while we have 22 more homes for sale, the $1,000,000+ is about the same. Perhaps people listing their homes this spring are being a bit more realistic and not shooting for the million dollar sales price? At any rate, there are still way more homes over a million than the market activity will support. In the last six months 10 homes over $1,000,000 have sold and 11 have gone pending. At this rate, it will take a little over 3 years to sell all of the high-end inventory.

A Glimmer of Hope

The Standard and Poor’s Case-Shiller Home Price Index was recently released. In the 20-city year-over-year averages the Portland area managed to fair better than most. The average 12-month loss of home values was 18%, while Portland’s was 16%, the eighth best of the report. The best fairing market was Denver with a loss of just 4.9%. The worst was Phoenix with a loss of 35.3% (ouch!)

My personal observation is that things have picked up quite a bit. My listings are getting lots of showings and also receiving offers. It could simply be the normal up-tick that happens with spring and summer, but it could also be a bit of much-needed stability. And even if the market is not necessarily trending up, it does seem to me that it is not getting worse.

Always get a sewer scope!

martha-sewer This is a photo that you really never want to see, but when this sort of thing happens, it is soooooo much better to have it happen before the sale than after. This photo was taken of a home that I have currently got in escrow. The older home was recently remodeled, including a new sewer line from the house to the street. That should be enough and there’s no need for a sewer scope, right? NOT! In the course of the home inspection the buyer did have a sewer scope and a chunk of concrete was found to be blocking the line. In the course of the remodel, a stray piece of concrete had somehow found its way into the line. Who would have known without the sewer scope? And how irritating would it have been to move into a gorgeous home that was fully remodeled just to have the sewer back up immediately? This is a good lesson for one and all. Always get a sewer scope!

LO vs Sellwood

It’s a bit of a habit of mine to compare affordable housing in Lake Oswego vs the popular neighborhood in SE Porltand, Sellwood. I like to do this for two reasons. First, I’ve lived in both areas and just have a general curiosity. Second, I think LO is often overlooked by buyers. There is just a general assumption that LO is full of million dollar mansions and therefore out of the price range of people seeking an affordable home. My definition of affordable is $350,000 or less, and I am only comparing detached homes and not including condos. When I first did this in April of 2008, there were 20 houses in LO and 18 in Sellwood price at $350,000 or less. Today the number is 44 in LO and 25 is Sellwood. So not only does Lake Oswego continue to offer more affordable homes than Sellwood, but the number has increased from a difference of 2 more to a difference of 19 more. In Sellwood the least expensive home currently for sale is 608 square feet, 2 bedrooms and 1 bath, built in 1924. In Lake Oswego the least expensive home currently for sale is 780 square feet, 2 bedrooms and 1 bath, built in 1944. So if you are looking for affordable, sure check out SE Portland, but don’t rule out Lake Oswego. You have options here as well.

I can not let the week go by without wishing everyone a safe and happy 4th of July!

June 17, 2009

1-Level Homes

verte-front There are many reasons why a person might prefer to live in a single level home. Some are purely by choice. Things like the easy of movement while carrying laundry, or the preference for vaulted ceilings. Others are truly out of necessity due to disabilities whether they be mobility problems, advancing age, or even blindness. But for many people, living in a 1-level home is their preference.

For these people, when they go to purchase a home, it means that they have a much smaller inventory of homes to select from. And for the seller of a 1-level home, it means that they have a very specific niche in the real estate market. So when a single level home comes up for sale, it is likely to be well received by buyers.

Some quick statistics: in the year 2000, the size of the U.S. population that was age 65 or older was 35,000,000 people or 12.4% of the population. It is projected that by the year 2030 that percentage will grow to 19.6%, or 71,000,000 people. This means that the desirability of a one-level home is only going to increase.

Now the twist, just as the demand for single level homes in increasing, the availability of land to build single level homes is decreasing, at least in Oregon. Every city and county has building codes that require specific distances, or set backs, from the property lines. A builder is simply restricted to foundations that fit within the set backs of any particular piece of property. Because a 1-level home usually has a larger foundation, it means that the smaller lots that are common in today’s developments do not have the area necessary to build 1-level homes. And this means that the land that is big enough to build a 1-level home will cost more because it is larger. It also means that the 1-level homes that currently exist will be high-demand and valuable into the future.

An important concept to understand when you are buying or selling a single level home is how the value compares to other properties. Why is it that a 1500 square foot, single level home, can sell for as much as a 2000 square foot 2-story home? This goes back to the construction of the building. The two most expensive components in building a home are the roof and the foundation. When you have a 2-story house, this big expense goes twice as far. So a 1-level home is more expensive to build per square foot, and through out it’s life of being purchased and sold it will continue to pass along this higher expense.

So if you are lucky enough to have a 1-level home, I hope that you feel good about your investment. If you are looking to buy a 1-level home, there are currently 70 of them for sale in Lake Oswego. The least expensive is 1346 square feet with 3 bedrooms, 1 1/2 baths, and was built in 1956. It is listed for $229,900. The most expensive is 5389 square feet, with 4 bedrooms, 3 1/2 baths, and was built in 1993. It is listed for $1,850,000. The other 68 single level homes for sale cover every sort of size and pricing.

Whether you are wanting to buy or sell, whether you want a 1-level or several levels, Linda and I are here to help. Please do not hesitate to give us a call or to drop us an e-mail.

Dianne

May 28, 2009May 28, 2009

First Time Home Buyer? ~ What to Expect:

house

I was reading an article recently regarding the $8,000. tax credit for first time home buyers, and the writer expressed shock at how many people are completely unaware of it. I have noticed in my own practice recently that the larger PR machine has evidently not been doing a very good job at educating the public, as some of my clients reveal innocence on this subject as well when they discuss their leisurely plans to purchase “sometime in January of next year” etc. (the tax credit is only applicable if the home purchase is completed before December 1st of this year.) I also have heard more & more folks lately talking about attending “First Time Home Buyer Classes” presented usually by Realtors and Mortgage Brokers as a service to the public.

It seems to me that there is a real need for information out there right now. I thought I’d give a little primer below on at least the basics of what to expect during your first home-buying experience. Hope you find it helpful!

(Note: The sequence below does not apply to each and every transaction as each is individual and scenarios/time lines obviously vary. Your Realtor will be doing many more things behind the scenes than I indicate below as well, but I am sticking to outlining YOUR experience and how you can expect that to unfold… generally speaking.)

Retain services of a mortgage professional (lender) to give you best options for financing, and have an approval letter ready for you when you make an offer. Discuss “closing costs” with your mortgage professional, and review the “good faith estimate” that they will provide to you. (If you have a relationship with a Realtor first, ask them to recommend good resources for you.)
Work with your Realtor to find the home that meets your needs.
Work with your Realtor to determine appropriate offer & details/then write it up.
Realtor submits offer to Seller along with approval letter from lender and earnest money check. Note: The EM check is to show good faith, and is applied to the sale should your offer be accepted and proceed to close. Talk with your Realtor about what amount will put your best foot forward. (*Sometimes Promissory Notes may be used, and/but I highly recommend using an EM check to be taken most seriously.
Receive response/acceptance/counter from Seller in time frame you specified on the offer (in a normal transaction you typically ask for response within 24 hours, but if it is a “short sale”, the process of hearing back that you are indeed accepted by all parties concerned can take months.)
Upon mutual acceptance (usually within 1-3 days), schedule an inspection ASAP (you have 10 business days to conduct inspections & may back out if concerns arise during this time). Your Realtor will help you with this- Ask him or her for good resources to guide you through the process of inspecting the home. Prices vary, but a 2000 square foot house will often run around $400. more or less, and size as well as other factors come into play in the cost of an inspection.
Upon mutual acceptance, your earnest money check is sent to the Escrow Office, and held by them on your behalf until closing, or until nullification of the offer if this occurs within your inspection period.
Realtor writes and negotiates any Inspection Addendum items during this period according to your wishes (you will work with your Realtor to discuss and determine any give and take in the negotiation process that may occur. Your Realtor will offer you information and give professional advice, negotiating on your behalf and with your permission. You are in the driver’s seat, and you make the final decisions albeit under good counsel.
Upon mutual acceptance & reaching the end of your inspection period, your Realtor notifies the lender who orders the appraisal.
Your Realtor continues to work with the lender as the lending process moves forward. As long as the appraisal comes back at or above sale/offer price, you will proceed to closing through the underwriting process of the lender. Should the property not appraise for at least the sale amount, the lender will bring this to your attention and there will be some decisions for you to make around the sale price and your desire for the home (you are not required to pay any monies over and above the appraisal amount, and lenders will not lend more than the appraised value generally speaking.)
You may be requested by the underwriter to provide additional information on a case by case basis. Your Realtor will work with you and help in any way possible and appropriate to facilitate the flow of information required from you, but you are in the driver’s seat as far as responsibility to provide the necessary information to the lender.
When all underwriter/lender requirements have been met, the file is signed off by the underwriter, and passed to Escrow. The whole lender process usually takes around 3-4 weeks.
Escrow processes all paperwork, title insurance, and all distribution of funds between you and the seller as per the contract provisions agreed upon between you and the Seller. Documents are drafted, and a “signing date/time” is scheduled. (“Signing” is not the same as “Closing”.)
Your Realtor will often attend your signing with you to help with any questions that arise, and to offer moral support. (Frankly, I just love being a part of the exciting culmination of the home buying adventure!)
Escrow will then send signed documents back to the lender, and to the county. The transaction will then “close” or “fund & record” in 1-2 days after signing, at which time you will receive a call that you are a homeowner!
Your Realtor will usually meet you at your new home and deliver you the keys. (More fun!)
The whole process from offer to close usually takes around 30 days… sometimes 40-45. It can take a little longer depending on the lender, and sometimes it takes less time than that. You and your Realtor will assign a “no later than” date on your offer in conjunction with talking to the lender about their current load & closing time line. All parties are then obligated to “perform” within that time frame, or draft an addendum extending the closing date if that proves necessary and IF all parties agree to do it. (Because there always exists the possibility that one party may not agree to sign an extension addendum, and the contract specifically states “on or before” a particular date, the closing date is a binding contractual agreement and should be taken very seriously. As a buyer, your earnest money is at stake if you should not “perform” to contact terms.)

The above may be missing some pieces of the puzzle as each transaction is different, and various issues can arise during the process, but hopefully this give you a basic idea of how it will go!

April 30, 2009

Condos, Town Homes, HOA’s, Oh My!

townhome When looking for a new home and desiring easy care and potential community amenities such as pool, larger grounds, meeting space etc (without the responsibility of upkeep), most people will consider either a condo or a town home. Most also aren’t necessarily familiar with several relative factors important to the selection process, so I thought I’d highlight just a few for you here.

First of all, there is a difference between a condo and a town home ~

Let’s start with condos: A condo (condominium) is a kind of home ownership wherein the purchaser owns the air space inside the unit and joint interest in the common areas, typically the grounds, parking lot, any structures and amenities such as swimming pool, meeting rooms etc. Condo owners belong to an HOA (homeowners association) and pay dues for common expenses such as insurance and maintenance of common areas.

Townhomes are what we call “attached” homes, considered not free-standing and usually containing two or more stories. A purchaser owns the structure and the land on which it sits, and like a condo, generally joint interest in the common areas . Often with town homes you will have a small backyard or patio area which is in excess of what many condos provide, so gardeners or pet owners often find this more attractive. As in condo ownership, the town home owner typically pays monthly dues for upkeep of common areas and other amenities. It is wise to check into the insurance setup of on HOA to find out if it is supplied and therefore included in the monthly dues, or whether the town home purchaser needs to secure their own hazard insurance on the property.

Generally speaking, condos and town homes are attractive for more reasons than just low maintenance and the amenities they afford. They usually are priced well below what one would pay for a similar detached single family residence… or “house”. One thing to give attention to however, is finding out how much the HOA dues are, and what they cover. Does the HOA offer parking? water & sewer? trash collection? cable TV? Take these things into consideration and ask yourself how positively you are offset financially (or not) by being free of these normal expenses of home ownership.

Another thing to take into consideration is the solvency and efficiency of the HOA. I have listed condos and town homes and experienced neighbors in surrounding HOA’s visiting on Open House days, exploring the option of getting out of their own nearby complexes! This is reportedly due to the perception of either oppressive or mis-managed HOA’s. I’ve heard stories of frequently raised dues, extreme restrictions, and just plain inattentiveness… while the HOA next door treats its members with appreciation and service. Bottom line- check out the HOA:

Call & obtain copies of at least the two most recent board meeting minutes,
Obtain financial statements,
Take a look at the Bylaws and Regulations,
Find out how much the HOA has in reserves so you have an idea of whether they are in need of maintenance funds,
Talk to a few neighbors and get a feel for their level of satisfaction ,
Find out whether you might or might not be able to rent your unit out in the future if you so choose,
Ask how many units are in the complex, and how many are allowed to be rental units,
Does the HOA allow gardening in the back patio area?
Are there any restrictions that will impact your lifestyle?
Determine if there are any lawsuits anticipated or pending,
Ask whether there are any big improvement projects planned which will require capital infusion (i.e. significant dues increases).

Condos and town homes are wonderful options for home ownership, and can be a great place to start as first time buyers, as well as a fantastic way to downsize once the kids are gone. Talk to your Realtor about what makes sense for you, and be sure to get all the facts!

April 23, 2009April 23, 2009

Buying a House on the Lake

west-bay While waterfront living is not for everyone, it is certainly a feature that draws people to Lake Oswego. Think about it. You are 15 minutes from downtown Portland, but you can water ski in the morning before you go to work. Or if you don’t water ski, you can canoe, and swim, and just enjoy the serenity of living with a view of the water. If you are someone who thinks living on the lake sounds like a wonderful idea, there are a few things that you’ll want to consider. I am going to discuss the 3 specific areas of the lake and the current pricing for those 3 areas. I am not going to go into the history of the lake or the details of its management. For that, I’d like to refer you back to a previous post : About the Lake.

The lake has 715 single family homes and 4 condominium developments. Of those properties, there are currently 43 houses for sale and 11 condos.

main-lake-1 Let’s start with the Main Lake. This is where you will find the highest prices. The most expensive house for sale in the lake right now is a private island that is accessed from Northshore Rd. It’s priced at $19,500,000. The house has 13,500 square feet, with 5 bedrooms, 6 full baths, and 2 half baths. The island is pretty good sized. I recall years ago calculating that it could be divided into multiple home sites. So there is a good deal of value in the land and not just in the house. The least expensive house on the main lake is priced at $829,000. It has 2484 square feet with 4 bedrooms and 2 full baths. OK. That is just amazing. Why? Because the availability of buildable lots on the lake is extremely limited. 3 years ago there was quite a lot of buying and tearing down of old houses in order to build a new house. And the going price on the tear downs was running about $1,400,000, which made land value alone over a million dollars. So to see this house for sale for $829,000, that’s pretty amazing.

main-lake-4 There are a couple of characteristics to houses on the main lake that affect the home that buyers select. First, the North shore of the lake has much better sun exposure. If you want to have full sun while you swim, you should look seriously at the North side. The South side has a large hill immediately South of it, which creates shade and less full sun. In addition, with the sun coming from the South, the front of the house will get more sun than the back, and the lake is on the back of the house. You should also know that on the North side there is a rail road track that runs very close to many of the houses. So if you think that the sound of a train will bother you, then you should be looking on the South side of the lake.

Beside the main lake, there are also two bays: West Bay and Lakewood Bay. The bays are not as expensive as the main lake. They have narrow inlets from the main lake that open out to create a smaller versions of the main lake. They are more shallow than the main lake. Lakewood Bay is used on the 4th of July for a water skiing exhibition. The most expensive house currently for sale on a bay is priced at $2,775,000. It has 4ooo square main-lake-3 feet, with 4 bedrooms and 3 and 1 half baths. The least expensive is priced at $1,395,000. It has 3190 square feet, with 4 bedrooms and 3 full and 1 half baths. One of the unique areas on the bays is the Cabanas. These are homes that are built out over the water. They have a very small front yard and no backyard. Instead, they have decks that hang out over the water. You could literally fish off of your back deck. In addition, many have attached boat houses. Just like you enter a garage from a home, these cabanas allow you to get into your boat right from your house. It is an easy-care lifestyle for those who would rather go boating than mow a lawn.

Last are the houses on the Canals. There are 2 true canals and 1 that is more of an inlet. The Main Canal was originally the creek that fed Oswego Lake from the Tualatin River. The advantage to this canal is that while it has been deepend and excavated to allow boats, it is still a moving body of water. It continues to be the route for the water than comes into Oswego Lake from the Tualatin River. The other canal is Blue Heron. Blue Heron is lovely, especially where it widens out just before it goes into the lake. The canals have the most affordable waterfront houses. The most expensive is currently $1,179,000. It has 4800 blue-heron square feet, with 5 bedrooms and 3 full plus 1 half baths. The least expensive is $599,000. It needs quite a bit of work, but still strikes me as an incredible deal with 3458 square feet. It has 3 bedrooms and 3 full baths.

Most of the lake is developed with single family homes, but there are Condominiums as well. There are 3 condominium developments plus a short stretch of Northshore that is a collection of duplexes, four-plexes, and very small condo complexes. All of these condominiums have some access to the lake, whether in the form of boat slips, docks, and grassy yards with picnic facilities, with the exception of the Lakewood Bay Condominiums and Lofts. That development sits next to the lake, with great views, but does not actually own any waterfront. The City owns the land between the condominiums and the lake and it is developed as a small waterfront park. Pricing for one of the condos along the lake goes from a high of $699,850 for 985 square feet with 3 bedrooms and 1 full plus 1 half bath, to a low of $219,990 for a condo that has 852 square feet with 2 bedrooms and 1 bath. The difference in pricing with these units has a lot to do with how well they can actually see the lake. The expensive ones have full views and perhaps even a private boat slip. The less expensive ones are going to be in the back of the complex with a peek-a-boo view, if any view at all.

main-canal I hope this helps you to get a sense of what pricing is like to live on Oswego Lake. I’ve been around Lake Oswego for a very long time. One of the things I see is that when people want to live on the lake, they often start out in a condominium or along a canal. And then as they mature and their income increases, they move to get onto the main lake. I also know of one couple who buys the run down houses and lives in them while they fix them up. They have lived in many homes on the lake, and made a good deal of money too.

There are two more things I want you to keep in mind. First, when you buy a house (not a condo) on the lake, you will have to pay a 1-time fee of $5000. Second, remember that the sewer interceptor project is going to require that the water level be drawn down for a period of several months. This is going to happen in the next couple of years. For details, please go to one of our previous postings, Where did the Lake go?

So as the nice weather begins to make being out doors nicer and nicer, you may want to think about ways to enjoy Oswego Lake. And one of those ways is to find a way to actually live on it.

April 20, 2009

Lake Oswego Market Activity – April 13-19, 2009

p10100071 Well, the cherry trees are in full bloom, temps are in the 80’s, and real estate activity continues to move forward… a gradually enlivened, seasonal bustle.

Lake Oswego saw 22 new properties hit the market last week. We had 10 go pending, and 2 that closed. So, nothing earth shattering in the “sold” department, but encouraging nonetheless.

Here is the latest market activity for Lake Oswego (see below the tables for additional notes):

NEWLY LISTED (April 13—19, 2009)

Address

List Price

# Beds

# Baths

Tot. SF

Prop Type

List Date

100 SW KERR PKWY	$97,900	1	1	617	CONDO	4/13/2009
4000 CARMAN DR	$144,000	2	2	935	CONDO	4/19/2009
82 OSWEGO SMT	$234,900	2	2	1,212	CONDO	4/17/2009
1897 BOCA RATAN DR	$249,480	3	2.1	1,739	ATTACHD	4/13/2009
6025 KENNY ST	$299,900	3	1.1	1,258	DETACHD	4/16/2009
17683 NICOLE LN	$324,900	3	2	1,200	DETACHD	4/13/2009
16824 SW INVERURIE RD	$389,900	3	3	1,896	DETACHD	4/13/2009
3009 WEMBLEY PARK RD	$395,000	3	1.1	1,754	DETACHD	4/13/2009
18220 BICKEL CT	$399,000	3	3	2,075	DETACHD	4/18/2009
1023 LUND ST	$419,000	4	2.1	2,313	DETACHD	4/18/2009
68 TOUCHSTONE	349900 – 424880	5	4.1	3,148	DETACHD	4/14/2009
510 2nd ST	$439,000	2	1.2	1,520	CONDO	4/13/2009
19061 INDIAN SPRINGS RD	$479,900	4	3	2,341	DETACHD	4/16/2009
4920 MULHOLLAND DR	$555,000	3	2.1	2,498	ATTACHD	4/17/2009
15943 WHITE OAKS DR	$559,500	4	2.1	2,746	DETACHD	4/16/2009
4672 AUBURN LN	$575,000	3	3.1	2,732	ATTACHD	4/15/2009
4114 GLACIER LILY ST	$599,000	4	2.1	2,470	DETACHD	4/19/2009
5421 Bay Creek DR	$649,500	4	2.1	3,241	DETACHD	4/17/2009
133 FURNACE ST	$695,000	2	2.1	1,927	CONDO	4/16/2009
5392 SOUTHWOOD DR	$774,900	5	3	3,871	DETACHD	4/15/2009
301 IRON MOUNTAIN BLVD	$1,150,000	4	3.2	3,004	DETACHD	4/14/2009
19007 EASTSIDE RD	$1,390,000	4	3.1	4,651	DETACHD	4/14/2009

PENDING SALES (April 13-19, 2009)

Address	List Price	# Beds	Tot. Baths	Total SF	Prop Type	List Date	CDOM
13880 SUNDELEAF DR	$234,500	2	1	976	DETACHD	1/23/2009	84
1635 ASPEN ST	$319,900	3	2.1	1,618	DETACHD	3/24/2009	285
3 CELLINI CT	$449,000	4	2.1	2,531	DETACHD	1/19/2009	86
11 BECKET ST	$465,000	3	2.1	4,030	DETACHD	4/9/2009	111
80 TANGLEWOOD DR	$469,000	5	3	2,713	DETACHD	10/11/2008	371
855 7TH ST	$469,900	4	1	1,392	DETACHD	8/18/2008	240
13470 PETERS RD	$474,900	3	2.1	2,324	ATTACHD	4/1/2009	15
19431 KOKANEE CT	$529,000	4	2.1	2,250	DETACHD	4/9/2009	8
595 D AVE	625000	3	2	3,760	DETACHD	2/2/2009	309
1915 SW CHILDS RD	1594950	5	5.2	5,689	DETACHD	3/14/2008	397

SOLD (April 13-19, 2009)

ADDRESS	ORIG. PRICE	SALE PRICE	TOT. BEDS	TOT. BATHS	TOT. SQ FT	PROP TYPE	DOM
Address	O/Price	Close Price	# Beds	Tot. Baths	Total SF	Prop Type	CDOM
92 GALEN ST	$119,500	$100,500	1	1	689	CONDO	42
615 LAKE BAY CT	$669,900	$505,000	3	3	2,542	DETACHD	190

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer.