Tag: life in portland

Portland Oregon Real Estate Market Update for November 2024

Posted on by Lily Ray Wyss

Early sunsets are here and so is the Winter Real Estate Market.

Overall the last few weeks have been slow. However, this could be due more to the election than the typical slowdown we start to see this time of year. By the way, we will be discussing both what to expect from the winter market and the post-election market in today’s update.

What to Expect from the Winter Real Estate Market: 

 

For home buyers, you can expect fewer listings to come to market but to see a lot of home inventory sitting. This means a good deal of opportunity to snag a great home that is sitting due to other buyers being distracted by holiday plans.

For home sellers, you may choose to wait to sell your home until the Spring when the market should pick up. But know if you plan to buy as well that it could be a good opportunity to buy now, utilizing tools like a HELOC or a Bridge Loan, making the most of this market as a buyer, and then sell in the Spring when the market should be more in your favor as a seller.

What to Expect from the Post-Election Real Estate Market: 

While we cannot fully predict what will happen, especially given the administration taking office, here is what we can glean from past elections.

After 7 out of the 8 last elections, we saw a rise in both home sales and home prices. (2008 was the only exception for obvious reasons).

So if you are a home buyer, it is good to note that we could see a rise in home prices in the next year. This is especially true if we see a lowering in interest rates, which the next administration has said they plan to do. Though it is good to note that the president does not have direct control over interest rates (and the current Fed Chair publicly expressed that he will not play to the whims of the new president).

Realistically there does seem to be a lot of pent-up demand, so whether rates shift or not (many experts say we should see them stick in the high 6’s most of the year 😌) we will likely see a competitive seller’s market return come Spring. This does align with typical historic market trends year to year as well.

This is great news for home sellers. If you are considering selling your house in the Spring and want to make the most of the market, you should start preparing now.

Well really, whether you are planning on buying, selling (or both) starting your prep now will be key to your success. But no worries about figuring out what that plan will look like, I am here to help with all of it. You can contact me HERE.

3 questions to ask when hiring a realtor

Posted on by Lily Ray Wyss

Here’s a hard truth:

Not all realtors are the same. 

And I don’t just mean when it comes to level experience it’s also the specific experience a realtor must have to meet your specific needs. 

Here are some questions you can ask next time you meet with a realtor to decipher whether they are the right fit to help you take your goals to the finish line:

  • How many homes have you helped people sell in the specific neighborhood I am looking to buy or sell in? 

Every city, neighborhood, and area is performing drastically differently in The Portland Metro area right now. It is important that you work with a realtor who has the pulse on the micro-market you are looking to make a move in. 

A townhome selling for $450,000 in Lake Oswego will follow drastically different trends than a single-family home selling for $850,000 in Lake Oswego.  

  • How many active clients do you work with at one particular time? 

When working with an experienced realtor who goes above and beyond to make your home goals a reality, we do a lot more than just open doors for you or put a sign in the ground.  

With that for many of us, we cap how many active clients we work with at one time so we can best support our people and give them the best results. 

Asking this question will help ensure that whoever you choose follows similar practices. 

  • Do you have experience helping people buy the specific type of home I am looking to purchase? 

Every home purchase is vastly different and that is partly due to the fact that every style, age, and type of home comes with its own particular nuances and due diligence needs. 

If your goal is to buy a midcentury modern it would be extremely helpful to work with a realtor who has knowledge of the water intrusion risks that come with Rummer homes and the like. 

If your goal is to buy a condo or another property that comes with an HOA it is critical that you work with a realtor who has a grasp on HOA common practices, and pitfalls and can guide you through the HOA review process. 

Does this all sound overwhelming to you? No worries. If you are in The Portland area I would love to meet with you and will answer all of these questions before you even ask in our consult and see if I could be a good fit to be your realtor. 

Buying or selling a home elsewhere? I have a solid list of vetted realtors across the country with whom I can connect you. This is a group of people that I have personal relationships with and will personally vet further to make sure that they will meet your needs. 

Reach out and let’s connect.

Also, you can find me on Instagram HERE.

Portland Oregon Real Estate Market Update for October 2024

Posted on by Lily Ray Wyss

What we discuss:

 

How the current market is full of opportunities for homebuyers.

How timing is everything for sellers right now in the real estate market.

What we can expect from the Real Estate Market this winter.

 

Welp. Interest rates did not see the drop we were hoping for.

We saw a temporary decrease as news hit about a rate drop but then saw rates increase just a week later and continue to fluctuate.

Due to this news, we saw a brief increase in buyer and seller activity.

For home buyers:

In general, we are seeing a lot of opportunities for homebuyers active in the market right now.
While rate fluctuation is making affordability tough, for those buyers willing to act, we are getting some pretty great deals.

Just last week we got some first-time homebuyers under contract on a home in the ideal SE Portland location everyone seemingly wants and we only had to compete with one other offer to secure our client this really cool home with an awesome backyard for well under $600k.

For home sellers:

This market has also been volatile for those looking to sell their home. We actually saw a pretty significant decrease in sold home activity last month, down 13% with just 1,702 homes closing. And inventory of homes shot up to 3.5 months. Meaning homes just are not getting the demand they have had in previous markets.

For future home sellers, the biggest topic we will be discussing right now is timing. Deciding WHEN to list your home will be a big conversation. With the election less than a week away and the holidays fast approaching many are going to choose to pause the sale of their property unless they have an urgent need to sell.

Homebuyers you should take note of this as well. If you see a drastic decrease in new listings this week you can blame the election. And know that while we will see things hopefully pick up again, we will see activity trickle the closer we get to Christmas.

Looking ahead for everyone:

BUT it’s important to note for everyone, whether you are buying or selling, that the market will typically re-energize come January.

Many folks will have selling and or buying a home on their 2025 vision board and often won’t wait till Spring to make those dreams a reality.

And if you are someone who is looking to make a move sooner than later know that the market does not completely shut down this time of year. For home sellers, there are still home buyers out there looking for homes right now, and often they are the most serious. And for home buyers, this market can give you a bunch of advantages while other buyers are distracted by being festive.

Want to discuss your options to make a move before the year is over? Or want to talk about your 2025 home buying and or selling goals? I am here for it all. Reach out and let’s chat.

Let’s connect further, follow me on Instagram HERE.

Here’s how to not regret your home purchase:

Posted on by Lily Ray Wyss

It’s a sticky topic but let’s talk about it 👇🏼

There have been too many times when I am out in the world talking with someone or I overhear someone saying they regret buying a home.

But it’s often not that they dislike homeownership itself but the home they bought.

These are the main reasons I see people dislike their homes:

⁃ They didn’t fully understand the costs of maintaining the style of home they purchased. Many types of homes (like older properties) take a lot of work.

⁃ They stretched their budget more than they intended. Often if not counseled properly by a local lender, home buyers will focus on the price of the home but not the overall cost of their purchase and what their monthly payment will be.

⁃ They don’t research the neighborhood they bought in thoroughly enough and or didn’t test their commute.

⁃ They got distracted by unimportant things like the home’s staging and the marketed appeal but didn’t see past it to see the actual functionality and condition of the home.

If this all sounds overwhelming no worries this is where our job as a realtor comes in.

As a full-service realtor prior to even seeing homes, we will meet for a consultation and educational meeting and will have high-level in-depth conversations as you prepare for your home search.

During the consultation phase, we discuss what your capacity is to take on home and yard care when it comes to your energy, time, and finances.

On the education piece when it comes to seeing homes I’ll detail for you the realities of older homes and other styles that require a higher level of maintenance, and what it takes to care for a yard, or what it takes to pay someone else to do these things.

That way you can make informed decisions on what type of home is right for you.

I’ll share with you my Portland Neighborhood Guide full of Portland’s best-known neighborhoods, some less common ones, and the outer cities. Detailed in the guide you will find the best restaurants, bars, shops, parks, etc. So you can explore areas of interest before committing to living there.

I’ll connect you with amazing local lenders who will make sure you are empowered with the information you need to make informed decisions.

And throughout the home shopping process, I’ll counsel you to look past flashy home staging and will point out possible pitfalls in homes. And I will also help you see the potential in homes that may not look cute initially but could be a gem in disguise.

Basically, finding the right home for you is easy when you have the right support.

Want to discuss your options and co create your winning home buying strategy? Let’s talk. You can find my contact information below.

Portland Oregon Real Estate Market Update for August 2024

Posted on by Lily Ray Wyss

Okay, let’s get into it.

INTEREST RATES. Yes, they are still predicted to lower next month. But nothing is promised and not many people are predicting them to lower drastically.

But we have seen them lower some already. I have seen some clients get interest rates below 6% already which is really promising.

And we are already seeing the effects of this in the current market.

While last month was fairly slow, new listings (2,905), pending sales (2,191), and sold homes (2,075) were all down slightly, we are seeing a good boost in market activity already this month. And August is typically slower.

With rates already seeing some relief it has motivated a lot of buyers.

We will see what happens in the rate market but either way it looks like we are going to have an active fall.

What does this mean for you?

As a future home seller, if your home is properly prepped (I will give you a detailed list of what to do don’t worry), priced right (I will give you coaching on this too), and properly marketed (I handle this entirely) you should expect great results.

Buyer motivation is already high but will only increase if we do see an improvement in rates. Which means more buyers through your front door and a higher possibility of multiple offers in the first weekend.

As a future home buyer, know that lower rates will mean higher affordability for you which is amazing, but it will also mean the same for other buyers. So we could see higher competition from other buyers (multiple offer situations, leading to higher prices and more competitive terms being needed on offers).

Due to this, I have actually had some buyers get motivated to buy NOW while the competition is lower, and these clients have had success getting really great deals on amazing homes.

But don’t stress if you have not found your right home yet, or are not ready just yet to get started on your home search, even if things do get a bit wild in the market, we have the right strategies and tools that you can use to still be successful in any market.

Want to discuss your plans to sell and/or buy this fall or beyond? I would love to chat.

Just have a question? I am here for that too. Reply to this email or you can find my contact information below.

“Is this a good time to buy a house?”

Posted on by Yomari Cruz-DeWeese

“Is it a good time to buy a house?”

People always wonder when is the best time to buy a house. Many considerations go into answering this question – for example: 

  • Are mortgage rates favorable? Are they likely to go up or down? 
  • Are house prices likely to go up or down in the area in the near future?
  • How much inventory is on the market in the area where I want to buy?
  • Is the real estate market cyclical in the area where I want to buy?

All of these questions are important, and you can find many discussions of each of these questions with a quick Google search. I’ve put some thoughts below from my perspective as a real estate agent in Portland. 

Where are mortgage rates likely to go?

Mortgage rates have improved since last year’s high of 7.9% (October 2023), and many people seem to think that they will continue falling slowly. Mortgage rates are generally influenced by the Federal Reserve, but also by rates of economic growth and inflation. Beginning in early 2022, with inflation concerns high, the Fed raised the benchmark federal funds rate (basically, the rate at which banks can borrow from each other), partially in an effort to curb inflation. This has contributed to rising mortgage rates. It’s hard for anyone to say exactly where mortgage rates will go in the future, because it depends both on how the economy in general does, and how the Federal Reserve reacts to concerns about inflation. 

It’s helpful to remember that the extremely low mortgage rates we’ve seen since the Great Recession are somewhat of a historical anomaly. In the mid 1990’s, the federal funds rate was around the same level as it is now. Beginning in mid-2000, and continuing after the 9/11 attacks, the Federal Reserve lowered the federal funds rate drastically, culminating in a low of 1% in March 2004, in an effort to boost the economy. As the economy sped back up after that point, partially due to rampant subprime mortgage lending, the Federal Reserve increased the federal funds rate back up to around where it is now, and then after the subprime mortgage bubble collapsed in late 2007, resulting in the “Great Recession,” the Federal Reserve took the unprecedented step of lowering the federal funds rate almost to zero, where it stayed until it gradually began to increase in 2015. 

When COVID hit, the Federal Reserve lowered the rate back down to zero, where it stayed until the Federal Reserve started increasing it in March 2022 in response to inflation concerns. This increase has leveled off at the current rate of 5.33%, and it is unknown where the Federal Reserve will go from here. All of this is really to say that where mortgage rates are going to go is difficult to predict even for financial geniuses. What’s less difficult to predict is the fact that we all need a roof over our heads. Also helpful in thinking about mortgage rates is that, if you get a mortgage, it’s going to stay the same unless you re-finance. So if mortgage rates go lower, you may have the option of taking advantage of those lower rates and re-financing later, and if they go higher, you are insulated from that increase because you already have a mortgage.

What about home prices? 

Home prices are influenced not only by what mortgage rates are doing, but also by the housing inventory levels in your area. It’s a supply and demand thing. Stated simply, if mortgage rates are high and inventory is high, prices may decrease; but prices trend higher when demand increases and supply decreases. The housing inventory in the Portland metropolitan area has recently increased slightly from historically low levels, but is still low. More inventory can mean less competition for houses resulting in a market is more neutral or buyer-friendly, but because people who already have mortgages locked in at the historically low rates of 2020-21 may not yet be incentivized to make a move unless we see further decreases, the inventory has remained low, and prices haven’t seen much decline. 

Is the Portland area real estate market cyclical? 

The short answer is yes. Like everything else, the real estate market tends to lull during the holidays, then begin to ramp back up heading into February. This is especially true in Portland, because people generally don’t like to move here in the rainy season. The Portland market generally reaches its peak around April to June, and stays at a higher volume until August, when it gradually tapers down over the next few months. In the summer, you’ll potentially have more competition but more options. In the winter, you will likely have less competition but fewer home options. I would like to note here that while having more choice and looking at pretty gardens is fun, inspecting basements during the rainy season in Portland is an advantage not many consider, and they should. 

So when should I buy?

While everything I explained above is important, at the end of the day the most important questions are very personal: why do YOU want to buy a house, and when does it make sense for YOU? If you currently have a great mortgage and would like to have a bigger house, maybe it’s not the best time financially, but maybe you have a growing family and you need the space. In that case, you need to decide how much it’s worth to you to get the right house for your family. If you are a cash buyer, now might be a great time to buy a house, because you won’t have so much competition, and you might get a great price on a very desirable house. If you’re looking to move out of a rental and into home ownership, and are financially flexible, it also might make sense to buy now. Because so much of it depends on each individual’s situation, consulting a buyer’s agent is key. 

A buyer’s agent can help educate you so you can make the best decision for you and your family. After speaking with a great agent, you should feel more empowered, because you will understand all of these factors better. If the first thing an agent tells you when you speak to them is that it’s a great time to buy a house, without knowing anything about you, you might want to ask them why it’s a great time for you to buy a house, or find another agent. 

 

If you are thinking about buying a house sometime in the future and are not sure whether to act now or wait for a little while, you can always take steps so you can make sure you’re ready when you feel the time is right. Check out my post about all the steps you can take now to be ready to put an offer on a house when it’s time! 

 

Portland Oregon Real Estate Market Update for June 2024

Posted on by Lily Ray Wyss

What we discuss:

Some normalcy and balance returning to the market.

An update on interest rates.

What both home buyers and home sellers can expect from the summer market.

Home prices during an election year.


Is the frenzy of the early Spring market over? It seems so.

The hottest of hot homes are still selling for over asking, but it seems that data and comparables have caught up to the epic price jumps we were seeing a few months ago.

Balancing the market some.

Though the data does show that we are still seeing activity increase across the board:

New listings are up 12% with 3,508 homes hitting the market.

Pending sales are marginally up by just 2% with 2,363 homes going under contract.

Sold homes are up 13% with 2,140 homes going to new homeowners.

Inventory of homes has stayed steady at 2.3 months (from 2.4 months in April).

What does this “new” market mean?

For home buyers, this means that while you will still deal with a seller’s market, especially if you are shopping in a hot area, there will be more homes sitting on the market and with those homes, the opportunity returns to ask for price reductions and credit asks.

And on the hot homes, while you may still deal with competition, it’s likely not the 10+ offers of the Spring market but a normal 3-4.

For home sellers, this means that demand for your home will typically still be great, it is just more important than ever that you price your home well.

Interest rates are still high and buyers are not just as frenzied as they were in the Spring. So your likelihood of sitting on the market and not getting multiple offers is higher if you don’t price accordingly and prep your home correctly.

On the note of interest rates, it is still predicted that we will only see one significant decrease in rates this year.

In terms of what you can expect for the summer, we should see activity remain high throughout July and then slow down as it historically does in August.

But no worries if you are someone who is thinking of selling around that time or plan to buy in August, those who are serious in the market will still be making real estate moves, and things do always pick up in September.

Speaking of August, August 17th is now the new date that changes will be implemented across the real estate industry for those who belong to the National Association of Realtors (which all Portland area agents do). The main changes are that buyers will need to enter into a contract with their agent prior to seeing homes, and buyers’ agent commissions can no longer be displayed on the MLS, but counter to what has been stated in some places, as of now, sellers are still able to offer compensation to the buyer’s agent.

This will certainly still bring changes to our industry, as an experienced realtor of 7 years, I believe many of them will be positive but if you have any questions or concerns and would like to discuss them I would be happy to talk.

Have questions or want to discuss your next move? I would love to chat. You can find my contact informatin below.

Beaumont-Wilshire Charmer

Posted on by Martin Cross

You’ll just love this beautiful 1938, 4 bedroom 3 bath home is loaded with charming, vintage details, many of which are newer, but crafted to match the era of the home. On the main level you have a large, light filled living room with gorgeous period fireplace with gas insert, updated kitchen and bath that were both redone to uphold the wonderful vintage styling of the home and two bedrooms, both with access to the backyard deck and delightful backyard. 

The upper level features the fantastic primary suite with hardwood floors, vaulted ceilings, built ins, skylights and bathroom.

The lower level has access from the main floor or outside which lends to the potential for a lower level ADU. Warm and inviting family or media room, 4th bedroom with egress, laundry facilities and lots of storage. 

The home sits on an oversized 75 x 100 lot which may offer room to build. Comes with an enormous three-car garage with attached garden shed, a lovely fenced backyard with both deck and patio, a rose garden and mature trees. 

Recent updates include, new south side Marvin infinity double hung, lowE2 efficient windows with transferable warranty, new electrical service and panels for both the home (200 amp) and garage (100 amp), attic insulation and new backyard fencing.

The sweet neighborhood is quiet and full of lovely neighbors. It’s situated between the Albert Arts district and up and coming 42nd Ave. And just a short distance from Fremont St and all that has to offer. Plus it’s just short walk to the infamous Kennedy School, Common Grounds and New Seasons grocery. 

Save Thousands: Perform Your Own Inspections When Buying a Home

Posted on by Lily Ray Wyss

Here is how you can potentially save your self thousands of dollars:

Buying a home is a significant milestone and financial commitment in anyone’s life. Whether you’re a first-time homebuyer or seasoned investor, one of the crucial steps in the process is the home inspection. In the Portland Oregon Real Estate Market, it’s typical for buyers to arrange and pay for their own inspections. However, there are scenarios where sellers might provide pre-listing inspections or share reports from previous transactions. While this might seem convenient, it’s not always in the buyer’s best interest to skip their own inspections.

Here Is Why You Should Perform Your Own Inspections:

Quality Varies Among Inspectors

I have a list of amazing inspectors I recommend to my client. However, not all inspectors are created equal, and there can be significant differences in the quality of inspection reports. A report from a trusted inspector can provide invaluable insights into the condition of the property, and potentially uncovering issues that might not be immediately apparent.

Human Error is Possible

Even the best inspectors are human and can miss things. By conducting your own inspection, you increase the likelihood of catching any overlooked issues. Multiple sets of eyes on a property can reveal different perspectives and insights that contribute to a more comprehensive understanding of the homes condition.

Financial and Peace of Mind Benefits

Investing in a home inspection typically costs between $800 to $1,000, depending on the size of the home and type of property. While this might seem like an additional expense, it is a crucial investment that can save you thousands of dollars in potential repair costs down the line. Knowing the true condition of the property also provides peace of mind, allowing you to make informed decisions about your purchase.

The Importance of Due Diligence

Buying a home involves substantial financial commitment, and skipping or relying solely on seller-provided inspections can be risky. Sellers may not disclose all issues, and even well-intentioned pre-listing inspections might not capture everything. Conducting your own inspections ensures that you have a thorough understanding of the property’s condition and empowers you during negotiations.

Conclusion

To summarize, while there might be occasional circumstances where sellers provide comprehensive inspections, or the rare case where you may need to “waive” inspections to secure a home that has already been pre-inspected. In general, performing your own inspections will always be your best bet. Remember, buying a home is a significant milestone, and investing in professional inspections is a small price to pay for the long-term security and peace of mind it provides.

If you’re considering buying a home in Portland or want to learn more about the home buying process, I’m here to help. Let’s connect and discuss how I can assist you in navigating through the complexities of real estate transactions. Together, we can ensure that you are motivated, educated, and empowered to make the best decisions for your future home purchase. Contact me to schedule a consultation and take the first step towards owning your dream home.

Portland Oregon Real Estate Market Update for May 2024

Posted on by Lily Ray Wyss

What we discuss:

The importance of an expert buyers agent in this new real estate market landscape.

The opportunities in the Portland Real Estate Market for home sellers.

New predictions for interest rates.

The heat of this market seems to continue as we head into the summer!! 

Activity in the Portland Metro market continues its upward trend with heightened activity across the board.

And it shows in the numbers:
 
New listings were up 28% with 3,120 homes hitting the market. (Whoohoo more options for home buyers!) 

Pending sales were up 8% with 2,313 homes going under contract. 

And sold homes were up 19% with 1,883 going to new homeowners.  

Inventory of homes actually saw a slight increase from 2.3 months to 2.4 months. Meaning if no new homes were to hit the market, based on demand, we would run out of homes in about 2 and a half months. 

The average sales price has remained steady at $604,000, showing that with demand remaining so high for housing in the Portland market, even with high interest rates, prices have remained stable. 

Speaking of interest rates, we have seen them fluctuate slightly in the last few weeks, both up and down, and as discussed last month, it is projected that rates will not see any drastic decrease anytime soon. The most we can likely hope for is one to maaaybe two decreases by the end of the year. Womp womp. 

While activity is up and energy is high in our market it’s important to note, especially for you home sellers, that not every home is performing the same in this market, the average days on market in the Portland Metro Area is 83 days (I will just brag quickly that the average days on market for a Living Room Realty listing is 5 days. Our high-level marketing strategies, level of experience, and industry-wide reputation really pay off for our clients).  So while we are seeing a lot of homes go pending in a weekend (like the ones we list at Living Room) not all homes are getting those results. With that in mind, it is important that you do everything necessary to prep your home well and work with the right listing team to present your home in the best light. 

Speaking of days on market, for home buyers, it is good to note that days on market are not a great determinant of whether a home will have competition or not. Yesterday I handed keys over to some buyers who wrote an offer on a home that got 4 offers even though the home was listed for 24 days and had a failed transaction prior. Luckily we employed high-level strategies to win them the home and as of yesterday they are now homeowners for the first time!

Also yesterday I wrote an offer for a family on a home that had been sitting for over a 100 days and suddenly two other offers came in. 

So while this doesn’t happen in every case, just keep in mind that sometimes, just because a home is sitting does not mean you won’t have to compete against other home buyers. 

If you are curious to learn more about the current market and hear some more anecdotes, watch the video above! 

Looking to make a move in 2024? I am here for you. While this market is seeing heightened activity overall, different areas/price points/types of homes have their own unique market conditions, so its essential that we talk one-on-one about what you can expect based on your own needs. 

You can find my contact info in my bio below. I look forward to talking with you and co-creating your custom strategy to achieve your dreams. 

Step-by-Step Guide to Making an Offer on a House in Portland, Oregon

Posted on by Yomari Cruz-DeWeese

Want to buy a house in Portland, Oregon? Here is your step-by-step guide to making an offer on a house! 

In home buying as in everything else, knowledge is power. The following list of steps is intended as a step-by-step guide to what YOU can do to best prepare yourself for making an offer on a house and making one of the most important purchases for your family and your life.

  1. These first two steps are fun, and you can start doing them and continue as you’re answering the harder questions which follow:
    1. Start perusing online real estate listings as soon as you can, but with the idea that you are not necessarily looking for the house you want to buy, but rather just educating yourself about what’s out there. Look at lots and lots of houses and decide what excites you and what doesn’t. Do you like older houses? New construction? One or two (or more) floors? A finished basement? How important is a yard to you, and what do you want to do in the yard? How many bedrooms and bathrooms? You can also go to open houses. 
    2. Also, start frequenting the neighborhoods you’re interested in. If you want to buy a house in the neighborhood where you already live, you’ll do this naturally, but if, for example, you live on the west side of Portland and are interested in moving to the east, start walking around the eastside and getting to know the various districts, so you can get a feeling for where you might like to put down roots.
  2. Identify the reason you want to buy a house. Is it because you want a place to live and raise a family over the long term? Is it because you want an investment? Do some soul searching, figure out your true objectives in buying a house and let that objective guide you in all the next steps. For example, if you’re looking for a place to raise a family, whether or not a particular house will rapidly appreciate in value (or even appreciate at all) may not be as much of a concern as if you are looking for a house as an investment. 
  3. Identify whether you have any time pressures. Is your lease ending soon? Do you have a good opportunity to sell your current house? What are the current mortgage rates, and how might that affect your ability to get into the house you want? For most people, buying a house is one of the most significant investments of their lives. You should look at tons of houses, all kinds of houses, and really figure out what kind of house you like, so you can make the best of this very important decision.
  4. Identify whether this is the right time to buy a house for you. Answering this question really depends on your particular situation. In a market where interest rates are high, buyers who need to rely on financing for most of their purchase price may want to take a hard look at whether it is really the best time for them. At the same time, since so many people will be thinking the same thing, there may be less competition in a high-rate environment, so it may be easier to compete for the home you really want. And in a high-rate environment, cash buyers sometimes have great opportunities, for the same reason.
  5. Identify whether you need a house that’s in perfect condition and needs no improvements, or whether you have appetite for somewhat of a fixer. If you’re handy, being open to a house that needs some work may open up some possibilities that you might otherwise not have.
  6. Now make a list of wants and needs. Figure out what items are negotiable, and which are not. These may change over time, but it’s helpful to write this stuff down to organize your search. Be sure to share this list with your buyer’s agent!
  7. Now it’s time to talk to a mortgage broker. While some people like to stick with the banking relationship they may have developed over a long period of time and get a mortgage directly from their bank, I generally recommend that people at least talk to a mortgage broker. Banks have the mortgage products they have, and bank employees don’t have much choice but to offer you those products, whatever they may be. In contrast, because mortgage brokers get paid by connecting people with lenders, mortgage brokers have a huge incentive to ferret out the best deals, and the best brokers will really spend some time with you to understand your particular financial situation and real estate objectives and find the best mortgage product for you.
  8. Once you have talked to a mortgage broker, you will understand how much house you can afford, and what your range of purchase prices may be. Keep in mind that the purchase price of a house is only the starting point of how much the house will cost you – there may also be:
    1. Mortgage insurance (usually applicable if you put less than 20% down);
    2. Homeowners insurance;
    3. Property tax; and
    4. Utilities (water, sewer, garbage, gas, electric, etc).
  9. Additional potential expenses: 
    1. Repairs and Maintenance. As you figure out how much house you can afford, keep in mind that you may need to budget for more than just monthly expenses. You should understand how much of a short term budget you have for both routine maintenance and necessary major repairs. What if you end up buying a house that will need a new roof in the next five years? What if the furnace breaks down? Thinking about these potential expenses, and understanding what cash you’ll have available to pay them, will help a lot when you find a house you want to make an offer on.
    2. Other. Some houses have features that are great but cost money. Be aware.
      1. Homeowners Association Fees (can be a major cost);
      2. Pool and hot tub maintenance;
      3. Fireplaces and chimney cleaning;
      4. Etc.
  10. Now it’s time to look at houses FOR YOU, but it’s also time decide whether you want to work with a real estate agent. Buyer’s agents are a dime a dozen on the internet; the trick is to pick the right one. There are many factors to consider, and I will write about this in another post, but, in a nutshell, you should first try to get referrals from friends you respect and who seem to “have it together.” If someone you trust had a great experience with an agent and got a house they love, you probably want to talk to that agent. Remember, this is one of the most significant purchases you may ever make, and you want to find someone who respects that and brings that perspective and sense of importance to helping you. That may not be the person who has spent the most money on making sure they appear first in Google searches. Then you should interview at least three or four agents before deciding. And once you pick one, remember, you’re not locked in to your buyer’s agent. If you hire someone and they’re not working out or you are losing confidence in them, you can almost always terminate the relationship and find someone else. Don’t worry about hurt feelings – we are professionals, and what we want (or should want) is for you to have confidence in the services you’re getting from us. If you don’t have that confidence, you should find someone who you click with better. This is our job, but it’s your life.
  11. Look at houses. Lots of houses! In the beginning, try to cast as wide a net as possible, and look at a ton of different houses in a ton of different neighborhoods. You may think, going into the search, that you know what you want in a house and where you want to live, but you may change your mind after seeing what’s out there. 
  12. DO NOT FALL IN LOVE WITH A HOUSE (it’s easy to do!). This process is going to be full of emotional ups and downs. If you’re in a competitive market (and Portland is very competitive), it’s likely that you will be facing competing offers for the house you decide on. You may lose that competition, and it may happen multiple times. It is so easy to look at a bunch of beautiful house pictures on real estate websites and imagine yourself so happy living in one, and then be so disappointed when it doesn’t happen. But even more importantly, see if you can put some emotional distance between you and your house search process. Now that you’ve done the work of answering questions about what kind of house you want, why you want to buy, why it’s the right time for you to buy, and how much you can afford, you should be somewhat dispassionate about evaluating houses objectively to determine whether they fit your criteria. Honestly, this is a big reason people hire professionals to represent them – the professionals represent YOUR INTERESTS. Lawyers have a saying: “a person who is their own lawyer has a fool for a client” – meaning that it’s extremely helpful to rely on a professional who can bring their expertise to bear for your benefit, without any emotional entanglement or personal interest. The same thing is true for real estate agents.
  13. When you’re looking at houses, remember to find out how much the expenses of that house truly are. What are the monthly taxes and approximate cost of  utilities? Look at the condition of the roof and the basement. Determine whether any major repairs will be due, or if you’re going to have to do some remodeling to have the house you want. A good agent should be able to help you get accurate answers to these types of questions.
  14. When you find a house that you want to buy, figure out what offer you can afford to make that will make the seller choose to accept your offer. Trusting your agent to gauge potential competition, tell you if the home is well priced, and to communicate with the listing agent to help you assess what a strong offer would be, is crucial. Knowing you can listen to your agent’s recommendations to put your best foot forward is how you get the house. Understand that after your offer is accepted, you will have an opportunity to get a professional home inspection done of the house, and if you don’t like what it reveals, you can terminate the transaction and move on, no harm no foul. In fact there are many protections for buyers in the standard Oregon sale agreements I will write about in a future post!
  15. Before you make the offer and do a formal home inspection, there are a few things you can do to “kick the tires,” such as:
    1. Does the house have a basement? Check it out in rainy weather to see if it’s leaking. Also check out the yard to see how it’s draining.
    2. How is the water pressure in the house? How is the water pressure with all of the taps open and the toilet flushing?
    3. Are there trees near the house? I love trees! Trees are great! However! If they are deciduous trees, you could be paying someone each year to clean your gutters. The roots could damage the foundation. And if you currently live in Portland, you’ve seen the damage falling trees can cause in ice storms. Tl/dr: trees = good, but be aware.
    4. Look for squeaky floors; make sure the floors are level.
    5. Look for signs of leaks around water fixtures, sinks, toilets, tubs and showers.
    6. Check out how old and how clean the appliances are. Would you be happy using them for the foreseeable future, or will you want to buy new ones? If so, make sure you understand the cost of what you want to put in.

If you’ve done everything listed above and are satisfied that you would be comfortable assuming ownership of the house, and understand the costs involved, go ahead and make an offer! A great real estate agent can help you get through these steps, will guide you through the transaction once your offer is accepted, and will help you get to the finish line and into your new Living Room. 

SPRING Portland Real Estate Market Update – In 90 Seconds

Posted on by Lily Ray Wyss

What we discuss:

Multiple offer situations returning to the market.

Seller motivation returning to the Portland Real Estate Market.

New predictions for interest rates.

If you are wanting to talk more about your 2024 home selling or home buying plans I am here for you. While this market is seeing higher activity overall, different areas/price points/types of homes have their own unique micro markets, so it’s critical that we talk one on one about what you can expect based on your own needs.

You can find my contact information below. I look forward to talking with you!