Category: General

All About Lake Oswego, Oregon real estate topics

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Home Warranties

Home warranties have become a common part of the majority of real estate transactions. It is basically an insurance policy that covers the home system components and some of the appliances. My most simple description is that if you think about items that have energy or movement in them, it is more likely to be part of the policy. Each policy is slightly different, so please consult the companies who offer them, but what is usually covered are furnace, water heater, plumbing and electric elements. What isn’t covered are stationary elements like the roof, the foundation, the walls.

When policies are purchased, they are good for one full year from the date of purchase and can then be annually renewed thereafter. I have twice had clients who received the policy when they purchased their home and then kept it the entire time they owned the house.

There are numerous companies who offer these policies. I am going to tell you about the three that I see most used in our area.

ahs_logo_176x65American Home Sheild is the big boy in this field. They were the first company I heard of and they do a big percentage of the plans that are sold. They have 3 plans: Esssential, Plus, and Complete. The numbers I am going to give you here are as of this day, and do not include quite a few options that could be added on. It is based upon a home that is single family, in Oregon, 10+ years of age (newer homes are slightly less expensive) and does not include air conditioning (which could be added on).

The Essential Plan does not cover any appliances. It does cover the furnace, water heater, plumbing and electric. It costs $380. The Plus plan covers the appliances, including the refrigerator and the washer and dryer, and it costs $510. The complete plan adds to the coverage things like the garage door opener, the door bell, and ceiling fans. It costs $565.

To use the policy you simply call an 800 number to make a claim. American Home Shield contracts locally and sends a technician to your home. There is a $75 charge for each service call.

It is possible to place the policy on the home at the time it is listed for sale. I highly recommend this. It is not paid for until the house is sold. If the house is never sold then there is no charge for the coverage unless the policy is used and that charge is just $60. So it is really affordable and the policy could potentially be used to deal with home inspection issues.

logoFirst American Home Buyer Protection Corporation is another well known company. They have two plans: Basic and Value+. Basic covers the home systems including the dishwasher and the range, but no refrigerator or washer/dryer. It costs $290. The Value+ plan adds air conditioning and it costs $420. Other items can be added to this plan, as it can be added to the other two, such as septic systems, swimming pools, the washer/dryer and the refrigerator. The service call to make a claim is $60. First American Home Buyer Protection also offers 180 days of coverage to the seller when the house is listed for sale at no charge, unless the policy is used and then the house is not sold, then there is a charge of $60.

home_warrantyLast I will mention Fidelity National Home Warranty They offer two plans: Standard and Comprehensive. The Standard plan does not include air conditioning and it costs $260. The Comprehensive plan does include the air conditioning and it costs $360. Both plans cover the dishwasher and the range, but neither cover the washer, dryer or refrigerator, which can be added on for an additional charge. The service call to make a claim is $65. Coverage for the seller at the time the house is listed for sale is available at no charge.

I think it’s pretty easy to see why purchasing one of these policies makes sense. For someone selling it may help cover repair issues and it certainly helps the buyer have a better comfort level with the home. For buyers, who usually spend most of their money on the down payment and the closing costs, it helps them to feel like they have a financial cushion for the first year that they will own the home.

Who pays for the policy? It’s negotiated between the buyer and the seller. I think it depends a lot on how long the house has been on the market without an offer, and also on how close to the asking price the buyer is offering.

I want to encourage you to do your research before you make or receive an offer. Figure out which plan you like and make sure it covers the elements that are of concern to you.

I am not an expert on these policies. I want to encourage you to contact these companies yourself to get exact information. Here is the contact info:

American Home Shield, 866-406-0440, www.ahs.com

First American Home Buyer Protection Corporation, 888-875-0533, www.homewarranty.firstam/Default.aspx

Fidelity National Home Warranty, 800-308-1420, www.homewarranty.com

Do not hesitate to get in touch with Linda, Whitney, or myself, if you have any questions about real estate!
Dianne

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Zillow buys Trulia, how does this affect the game?

Back in January of 2015 Zillow spent 3.5 billion dollars and bought out Trulia, though instead of overhauling their competitor, they have decided to maintain separate identities while working together to achieve larger real estate advertisement goals.

For most modern-day home buyers, actively or even casually in the market looking for a house, they will turn to the comfort of their computer at home or even on their mobile device while out and about. It is just so much more convenient to have the information on hand than it is to call up a real estate agent and request the information. Typically what sites do they turn too? Zillow and Trulia are the most popular public access real estate information platforms on the internet today. Zillow gives a rough estimate on the price of houses currently on the market, while Trulia offers information on the location of the home, the neighborhood, various draw-ins around the neighborhood, and even provides readily accessible information for mortgage brokers.

How does this affect homebuyers?
For home buyers this is a dream. House shopping becomes painless, quick, and convenient. You can easily bring up houses side-by-side and compare traits that you would find most favorable when making that very important decision of buying (or even selling!) a home.

How does this affect Realtors?
Realtors are no longer turned to as the gurus of knowledge for obtaining information on all houses provided for by the real estate market. Though that does not mean that we have been replaced! The most important job a Realtor can take on is being there in person with buyers and sellers, and guiding them through the experience. A LOT of paperwork goes into buying and selling houses now days, and it is a Realtor’s job to walk you through the steps and help guide you, while making sure that you are well informed of anything and everything that is known about the property. Instead of being the gatekeepers of information on the real estate market they are now more like guard dogs. It won’t be Zillow who maintains copies of counter-offers and addendums, tracks dates, and informs you of deadlines which may risk your earnest money (Nor do I foresee Zillow coming out to a home inspection and/or radon text. But who knows!). One thing that Zillow provides, which is beneficial to Realtors, is that it maintains a database of information on houses that extend nationwide. So real estate agents no longer have to maintain an area of expertise (unless they want too of course) and can participate in transactions as far out (within their state) as they are willing to drive. This is beneficial to those who are active in social media sites and like to maintain a referral network.

For selling agents Zillow and Trulia make advertising your listing a breeze, but only for those surfing the internet. Though it is nice to have easy-access internet advertising, if you wish to stand out from other listings, which have the same publicity on Zillow/Trulia, you will need to continue working those open houses!
As a side note: no matter what information Zillow or Trulia finds on a property. It will inevitably still be the listing agent who will be the most knowledgeable about specific details.

How does Zillow get its prices?
Zillow uses an algorithm known as The Zestimate. Like the very function of its name, it is an estimate and NOT an appraisal (estimates are not used legally to determine the actual value of the house). The Zillow Zestimate uses information on the property such as previous prices the home was bought and sold by, as well as houses in the neighborhood that are of similar price value. The Zestimate does NOT take into account subjective desires like: views, shops, RV parking, gardens, real wood floors, stained glass, finished and furnished basements (which are just a few of the things not considered, to give you an idea. Zillow only looks at prices and price history). Zillow’s Zestimate aims at giving you an idea of where to start when pricing a home. Some Zestimates are going to be more accurate than others depending on the activity of the neighborhood in the real estate market. In essence: if a Zestimate is too low it could be because Zillow is not taking into account a completely new kitchen renovation, as well as any other amenities that may make the house more desirable than houses surrounding the property.

What can I expect to see now that Zillow and Trulia have joined forces?
A mass information abundance! Which is a good thing for buyers, sellers, and Realtors! Providing easy access for information on houses while you are already browsing your social media sites, or surfing the internet.

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The 10 days of the Inspection Period

Inspections! Inspections! Inspections!

So as my learning experience continues to chug along like the little real estate choo choo train that it is; I have come to really value what is found during the home inspections process and I’d like to share some of my experience with you!

First of all I cannot stress how critical the inspection time period is: From the moment an offer is accepted (and all counters are considered) your inspection period starts.

In our contract it states:
”Buyer shall have ___ business days (ten [10] if not filled in), after the date Buyer and Seller have signed this Agreement (hereinafter the “Inspection Period”), which is to complete all inspections and negotiations with Seller regarding any matters disclosed in any inspection report.”

Now! I don’t want to get too preachy, as our contract has a WEALTH of information that protects both our buyers and sellers. But this portion is super important. Basically what it is saying is that once your offer (as a buyer) is accepted then you have 10 business days to fully inspect the home that you are about to buy. At the end of the 10 business days the inspection period closes and it will be assumed that as the buyer you are accepting the house as is!

How you should see this; is as your safety net for an investment and start your inspections ASAP once you enter those 10 days. The sooner you can collect further information on the house the better, as you will want to further negotiate with the seller about the things you have found.

Now I know that those out there who have the sale of their house in mind are thinking:

“Hey wait a minute! What about me? The sale of my home is my investment as well!”

And that is absolutely correct! During the inspection period it will be critical for you as the seller to allow the buyer to perform these inspections so that they may gather the necessary information on the house, and hopefully buy it from you. Whatever comes back to you as a critical or necessary change to the property (that the buyer wishes to express) becomes your knowledge as well, and as a seller you will want to know.

Now during these 10 business days of the Inspection Period, a buyer can at any time unconditionally disapprove of the house due to the found inspections and leave the contract. Say for instance the entire main bathroom floor is rotted and neither buyer nor seller can afford the costly repair at this time, the buyer can decide to politely take his leave as well as his earnest money.

So all in all I wish to communicate that getting your inspections done promptly once entering into a contract to buy a home is super important for everybody involved. 10 business days may seem like a fair amount of time, but by no means is it a time to put off. The inspection period time is your time in your investment.

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Market Activity Jan 26- Feb 1, 2015

It is time to stay up-to-date with what is going on in Lake Oswego’s Real Estate scene! Looks like we have some beautiful new homes that have reached the market that are absolutely worth taking a look at. LOTS of pending properties (23 to be exact!), so we’ll all have some new neighbors soon! And 8 sold homes that will be all moved in hopefully by St. Valentines Day!

Following is the breakdown for you according to RMLS:

New on the Market (Jan 26- Feb 1, 2015)

Address Type Price Bedrooms Bathrooms Sqft
86 KINGSGATE RD E102 CONDO 129,900 2 2 924
5225 JEAN RD #311 CONDO 170,000 2 2 1100
210 S STATE ST #7 CONDO 249,000 2 2 1284
1033 HALLINAN ST DETACHED 309,900 3 1 936
3190 DUNCAN DR DETACHED 400,000 3 2.5 2401
19 MONTECELLO DR DETACHED 479,900 6 3 3678
6 NORTHVIEW CT ATTACHED 532,500 4 3.5 3200
2518 WEMBLEY PARK RD DETACHED 1,395,000 – 1,495,000 5 4 4200

Pending Sales (Jan 26- Feb 1, 2015)

Address Type Price Bedroom Bathrooms Sqft DOM
1 SW CRESTFIELD CT CONDO 95,000 1 1 689 18
336 CERVANTES CIR CONDO 139,500 2 1.5 1112 87
28 CRESTFIELD CT CONDO 145,000 2 2 995 3
48 EAGLE CREST DR CONDO 184,900 3 2 1623 10
16351 PACIFIC HWY DETACHED 339,900 3 3 1754 18
5053 W SUNSET DR ATTACHED 375,000 2 2.5 1720 2
1327 CEDAR ST DETACHED 399,900 4 2 2350 26
14201 DOLPH CT DETACHED 449,000 3 2 1864 11
12460 BOONES FERRY RD DETACHED 449,950 5 3 3650 493
8 WALKING WOODS DR DETACHED 515,000 4 3 3105 25
4959 BILFORD LN DETACHED 549,900 3 2.5 2456 4
5590 KILCHURN AVE DETACHED 559,900 4 2.5 2472 68
4729 FIRWOOD RD DETACHED 569,900 3 2.5 2594 87
1625 BEDFORD CT DETACHED 595,000 2 2.5 2462 9
12511 SHELBY CT DETACHED 599,900 5 3.5 3641 80
17838 MARYLCREEK DR DETACHED 735,000 4 3.5 4317 35
15203 LILY BAY CT DETACHED 779,000 4 2.5 3219 1
5868 SUNCREEK DR DETACHED 795,000 4 2.5 3164 9
1034 CEDAR ST DETACHED 799,500 4 3.5 2895 13
2065 RIDGE POINTE DR DETACHED 849,900 5 4 4790 246
1136 WESTWARD HO DR DETACHED 895,000 3 2.5 3344 296
1057 BULLOCK ST DETACHED 945,000 4 3.5 4700 185
1854 OAK KNOLL CT DETACHED 1,075,000 3 3 3351 147

Sold/Closed (Jan 26- Feb 1, 2015)

Address Type List Price Close Price Sqft DOM
40 OSWEGO SUMMIT CONDO 151,900 148,000 1140 224
4765 FIRWOOD RD DETACHED 325,000 355,000 1728 3
4940 CENTERWOOD ST DETACHED 425,000 435,000 2093 3
4630 WILDWOOD ST DETACHED 469,850 460,000 2067 83
4636 AUBURN LN ATTACHED 499,900 464,000 2732 118
401 ASH ST DETACHED 699,900 555,000 5048 414
18375 RIVER EDGE LN DETACHED 897,950 846,500 3400 27
5055 LAKEVIEW BLVD DETACHED 890,000 925,032 3498 28

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, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings.

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Historic Homes

107 Burnham Rd, The Tug Master's House, circa 1905
107 Burnham Rd, The Tug Master’s House, circa 1905
I think we have all heard of the National Register of Historic Places and have a vague idea that it means you get tax breaks and have to let the public in your house occasionally. At least that is a notion I have had for some time. That is until recently.

Lake Oswego has many historic properties. Touring a home that is currently for sale, a 1920’s church that has been converted to a home, the subject came up and I got curious for details. What I learned is quite different from what my perception had been.

First of all, the requirement to allow the public into your home is long gone. It simply isn’t safe to allow strangers into your home. Second, there are not a lot of tax benefits to the designation. If you own or are buying a home with historic designation it really is about the love of the property and the desire to preserve it.

There are several designations.

1125 Maple St, The Black House, circa 1933
1125 Maple St, The Black House, circa 1933
The most famous is run by the United States Park Service and is the National Register of Historic Places. To have this designation the property us usually at least 50 years old. It is also either architecturally significant or has been the home of a famous individual or was the location of a famous event. This is by far the most prestigious designation. Lake Oswego has 17 properties that are on the National Register, 13 of which are houses. To find a list of these properties, click here. At the National level there are no tax benefits for these historic properties. At the state level, there are.

The State of Oregon runs its own historic registry that is pretty much all of the Oregon properties that are on the National Historic Registry. The state does offer a tax incentive, but it is tied into the preservation of the property. Essentially you have to propose and get approved a plan that would take 10% of the current market value of the property and apply that same amount of money over the course of 10 years to do substantial rehabilitation projects on the property. Preference is given to projects that improve and maintain the exterior. When finished, you must place an approved plaque on the exterior. In return for doing this, your property taxes are frozen for the same 10 years. For more information about this program, click here.

The last historic designation is local. Lake Oswego has its own historic designation list. There are currently 72 properties on this list. The owners of these properties must retain the character of the exterior, but they can remodel the interior. Any exterior alterations must be consistent with the buildings historic character, and any changes made are subject to review and approval of the Development Review Commission. The City has also, in the past, made available grants of up to $2000 for restoration and preservation of these properties. For the list of Lake Oswego properties, click here.

16906 Cherry Crest Dr, The Laidlaw House, circa 1930
16906 Cherry Crest Dr, The Laidlaw House, circa 1930
I personally really love old homes. My current home was built in 1923 and is likely the original farm house in my Lake Grove neighborhood. I also appreciate when old homes are preserved and neighborhood character is retained. First Addition is a superb example of this. Don’t get me wrong, I love new houses too. For spacious floor plans and large closets, that is the better option. Perhaps the perfect house is a new one that is built in the old style. There are quite of those in Lake Oswego as well.

The bottom line is that I really value and appreciate the efforts at all levels, local to National, that encourages the preservation of historic properties. Perhaps you do as well.

Dianne

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News & Notes

The latest real estate numbers for Portland and the Lake Oswego/West Linn areas (RMLS lumps them together) are in.  It shouldn’t come as a surprise that numbers are up for 2014. December saw some customary slowing from November, but overall, the year’s totals look pretty darned good.

According to the RMLS Market Action Report for the Portland Metro Area, December, 2014:

  • At 2,239, December Closed Sales rose 15.6% over the month prior, and were up a full 25.6% from December of 2013’s 1,782.
  • December Pending Sales (accepted offers), at 1,667, were down quite a bit…20.3%  from the month prior (which is somewhat understandable during the holidays).  That said, the Pending sales are up a full 12.3% over December 2013‘s 1,484.
  • There were 1,540 New Listings in December which was 19.9% down from November, but up 15.5% from December of 2013’s 1,333.
  • The Average Sale Price in December of $331,600 was down $4,400 from the month prior. The year 2014 finished with an Average Sale Price of $333,000, which is up 7.2% over 2013‘s finishing number which was $310,600.

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The combined areas of Lake Oswego and West Linn  for the month of December 2014 reported:

    • 348 Active Listings
    • 79 New Listings
    • 81 Pending Sales  (up 6.6% over December 2013)
    • 117 Closed Sales
    • An Average Sale Price for December of $512,500.
    • Average Sale Price for Year to Date (so…2014) of $527,500. (up 9.5% over 12 month rolling average in 2013)
    • Average Time on the Market: 105 Days
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First Time Home Buying and Financing Assistance Programs

Hey all! I’m posting a little out of order so bear with me!

So this time around I’d like to reach out to our readers who are first-time home buyers or are thinking of buying their first home (which is mostly my generation at this point!). I know many who read this blog know my mom and know Linda, and are on not their second home, but possibly even their third or fourth (or are buying houses as investment properties). I will need your help with this, but I will get to that a little later in my post!

So I had coffee a couple weeks back with my good friend Ginny Schider, who is a Mortgage Banker and who is helping me learn a little bit more about the ins and outs of financing for homes. One of my big concerns was that a grand majority of people my age are renters, who talk about one day finding the home of their dreams but who feel they are unable to afford costly down-payments.

”My generation has been really put through the ringer,” I said to Ginny over a warm spiced chai “especially for those of us who graduated during the economic fall around 2008. A lot of my friends work food service and have to deal with student debt. It kind of feels like owning a home is so far out of reach.”

Then Ginny smiled at me and said “You know there is down payment assistance for first time homebuyers as well as grants that they can receive to aid in the purchase of their first home.”

This immediately sparked my interest as I was fully aware that buying a home for the first time can be so overwhelming, and with most of my friends working at coffee shops, restaurants, and retail; going from an apartment to a house/condo can seem like a blind leap into the abyss of added debt. So I inquired further about these payment assistant programs that are geared toward helping people in the position of purchasing their first home. One of which works similar to a grant (and for those of us who have had to pay for college, grants are a pretty sweet deal!)

Ginny told me that about her own company offering a grant (The PRM Platinum Purchase Program) which can cover up to 5% of the loan on purchasing a property. This could help pay for down payments and even closing costs, which can come across as a little daunting at first. This particular grant is provided by her company; Pacific Residential Mortgage. After mentioning this, she and I spoke further on various tools available for new home buyers (though existing home owners are eligible for this grant as well). She also mentioned two programs that are geared toward offering assistance for anybody within Clackamas County: Clackamas Homebuyer Assistance Program (CHAP) and NCRA which is a program that works with licensed lenders to loan up to $14,000 to help pay for down payments and closing costs (though she later told me that these assistance programs are not grants, because you later pay them back when you sell the house). These assistance programs are provided via the community rather than that of her company and are only available for first-time home buyers.

Now I know that so far I have come across as a little gimmicky, and I’ll be completely honest about it: I’ve been writing about assistance programs and grants to help spark interest in making that push toward purchasing a home. But you know what? Buying your first home IS scary, it IS difficult, it can be overwhelming, and these assistance programs are meant to help cushion the blow so that more people can add home ownership to their assets. Being a homeowner is a very important boon to your own personal worth as that property is yours. Everybody wants the home of their dreams and financing it makes up the grand majority of achieving that goal, so it is really nice that there are tools out there to help.

So now I am going to wrap up my blog post by asking our experienced readers out there to share a little bit about their own first-time home buying experience! We may not get very many posts as some may feel shy, but that is alright! I think it is important to hear that we have all been in the same boat with taking on the pins and needles sensation of buying a first home, and I would like to share to help our new home buyers know that they are not alone!

For more information on home buying assistance please feel free to send me an e-mail!
WhitneyGregoire@OregonFirst.com

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Where did the lake go?

IMG_0472If you’ve seen the lake in the last few weeks you would have noticed that the water level is dramatically lowered from it’s normal depth. This is done every three years to allow home owners along the lake to repair sea walls and boat houses. It also allows the many members of lake easements to do the same types of repairs on the easement property.

Dropping the water level was done by allowing water out on November 11th via the spill way at the East end of the lake. On January 2nd the lake will be allowed to naturally refill with rain and the water that feeds the lake at the Tualatin River. It will take about two months to refill to its normal level. So it will be back to normal in plenty of time for warm weather recreation.

I’ve seen this done many, many times over the years. The explanation is always that it allows repair of sea walls, etc. I also am of the opinion that it improves the water quality.

In any case, it is a bit of an unusual sight with a reasonable explanation.

Dianne