Quinn Stewart Real Estate Group Podcast

What happened this month in real estate? Let's take a look… Interest rates jumped the highest they have in 3 years to 4.5-5%, which could bring this housing market frenzy to a close. This was the largest jump within a week in over a decade! One year ago today, interest rates were at 2.65% and now they're at around 4.8%, that's double from a year ago.  The question here is will 5% be a common percentage for us. If that's so, someone who put down a 20% downpayment on a $585,000 home will see their mortgage payment jump by as much as 10%. How does inflation play into all this? It has not yet shown that buyers are reacting in a different way–housing is still in demand. Buyers are even accelerating their plans and increasing their bids in an effort to close on a loan before rates go higher.  Since we're at the beginning of the spring shopping season, there's also an ongoing shortage of houses which is why we're seeing demand still so strong.  Here at Stewart Real Estate Group, we are watching every economic indicator and tracking inflation and interest rates very closely, but as of right now we say get it done! We don't know what the future holds, so now is the best time.If you have any questions about this market update or real estate in general, feel free to call or email me. I would love to hear from you.

Your March market update on inflation, jobs, real estate, and more. In today's housing market update, let's talk about jobs, inflation, the stock market, and, of course, real estate in general. First, we need to address The Great Resignation. People everywhere are leaving their jobs. Surprisingly, we added 467,000 jobs in January. The good news is that we're adding jobs at a steady pace, but the bad news is that the job increase is another reason behind rising interest rates.  We are at the lowest we've been for long-term joblessness that we've been for a while. In January 2020, that number was at 4 million, but right now, we're are only at half of that.  “If you own a home, you may want to sell sooner rather than later.” Some major interest rate hikes are looming over our economy. Wall Street is predicting seven increases in this year alone. In March, The Federal Reserve will raise rates again, and if the economy doesn't backslide, they'll keep increasing. These increases will be about 0.25% each, so if you have a 4% interest rate, lock in these rates now before they climb.  We all thought that inflation would be a hot mess, but it looks like it's backing off. The numbers aren't in quite yet, but it is looking good so far. The COVID money is all drying up, so it looks like people are heading back to work and restraining their spending.  However, rents have skyrocketed. The single most expensive thing is the cost of living, and the second is cars. Brand new and used cars are at an all-time high, which is really hurting people's disposable income.  The stock market has been a wild ride.70% of all stocks traded on the NASDAQ were down 20% or more, while 40% were down 60% or more. Facebook jumped down 24%, while Amazon jumped up 24% on the exact same day. Stocks have been overvalued for a while, so we probably won't see another 20% growth like we did last year. Just stay steady; don't worry about the ups and downs. Let's move on to real estate. In January 2022, we saw the lowest inventory levels in history, so why is that? Simply, fewer sellers are going on the market. Because of this, homes have gone up 16% to 18%, and we've seen a big push of buyers trying to get a new home before interest rates rise again. Rents have also gone up, and people want to put their money into their own property instead of paying those high rents. In Portland, we saw a mass migration of people moving out. People want a lower cost of living. With higher prices and sales taxes, it's harder for people to size down here, so they're moving to more affordable states. Sellers also have a lot of equity, so they are pushing prices up when they go to buy a new home. My prediction is that we will continue to see multiple offers heading into spring, but we will see a slowdown as we make our way through the year. The interest rate hikes will affect buyers' purchasing power, and they'll get fatigued over time. If you own a home, you may want to sell sooner rather than later. If you have any questions about this market update or real estate in general, feel free to call or email me. I would love to hear from you.

I run down seven reasons why you should stage your home before you sell. Should you stage your home? Every real estate agent will tell you yes, but they might not tell you why. Today I want to run through seven benefits of staging your home: 1. Functional obsolescence. This is a fancy real estate term, but it just means that you can show how flaws in your floor plan aren't really flaws. If you have a challenging floor plan that takes away from your home, staging can help buyers envision how they might use the space.  2. You can stand out from your competition. If you live in an area where most of the homes are similar, staging can make your property stand out.  “If you stage your home, you could sell quickly and for more money. ” 3. It brightens up a blank canvas. This is especially true for new construction homes. Putting furniture in an otherwise brand-new house will make it feel less sterile and more comfortable.  4. It helps with in-person and online viewings. Statistically, buyers are more likely to view a home if the photos include staging.  5. You get more showings. If your home looks great, more buyers will look at your home, and you'll receive more high-quality offers. Also, 53% of listing agents report that staged homes sell quicker. This is likely because it encourages buyers to visit your home.  6. Staging adds value for your buyers. Buyers' agents report that staging is becoming increasingly important for their clients. 7. It helps people visualize living in your property. If buyers can picture themselves living in your place, they're more likely to overlook small faults.  If you don't want to go all-in with conventional staging, my team offers another option called a staging consultation. We'll bring in a staging professional to stage your home using your furniture and décor. You'll probably have to take down personal photos and make a few changes, but this option is a great way to get the benefits of staging while you still live in your home.  If you have any questions about staging or anything else real estate-related, please call or email me or my team. We are always willing to help.  

Here's how our Portland real estate market is positioned as we begin 2022. 2021 was a unique time for real estate in the U.S., and our Portland Metro market was no different. Today I'm sharing some stats that show where our market is positioned as 2022 begins.  In December, we hit a new record low for inventory at 0.6 months' worth (our absorption rate), which means if no other houses came on the market, we would sell out of them within 18 to 20 days, in theory. We were hovering around the one-month inventory mark for most of the year, then we saw a year-over-year inventory decrease from October through December. Since we headed into the holiday season with a drastic decline in inventory on top of the low inventory we already had, we're seeing huge demand from buyers waiting for inventory to hit the market. So we foresee 2022 having very strong buyer demand.  In the first week of January 2022, we saw interest rates rise higher than they've been during the entire pandemic. While that will affect some buyers, the current rates won't curb the demand enough to retract prices and slow down the real estate market. The Federal Reserve has confirmed that we can expect rate jumps throughout this year as they try to rein in inflation.  “In December, we hit a new record low for inventory at 0.6 months' worth.” The average appreciation we saw in Portland in 2021 was 15.8%. As we move forward through the year, we expect housing prices to once again climb, though we don't predict double-digit growth like we saw last year. All this means that if you're looking to take advantage of some of the lowest interest rates in history, you still have the opportunity, but it's slowly creeping away from you. If you haven't refinanced and plan to stay in your home for at least five years, you want to look into it.  If you're hoping to buy or sell, now is the time to act. In 2018, we saw interest rates hit almost 5%, and the market responded instantly and slowed down immensely. I don't expect that high of a spike this year, but interest rates are the Fed's last-ditch effort to curb record-high inflation, which we all know is a pain in the pocketbook. I don't know about you, but I'm tired of paying high gas and food prices.  Sellers: If you know you want to sell, you should do so this year. Low interest rates give buyers much more buying power and get you higher premiums for your sale. The first rate hike is coming in March, right as the spring market is upon us. Give me a call or send an email if you want to strategize about getting on the market this year or have any questions. Also, if you're looking to both buy and sell, we should have a conversation about how to go about that. We value our relationships and our ability to be your real estate resource. Have an excellent 2022!

From our team to your family, we want to wish you a happy holiday season. Happy holidays to you! The holiday season has officially arrived. We hope you enjoy this wonderful time of year and make some fantastic memories. We wanted to take a moment to thank you for your continued support. We love helping people make their real estate dreams come true, so thank you for working with us and supporting our business. This may be a busy time of year, but we are always here to help you and answer any questions you may have. Give us a call or reply to this email; we'd love to help you. In case we don't hear from you until 2022, have a happy New Year!

Here are the five things to consider when hiring a listing agent. I've been selling real estate for more than 20 years, so I know what I'm doing. Today I'm sharing five things you need to consider when hiring a listing agent: 1. Get an agent with a digital marketing strategy. Many people are under the impression that the current market is just taking care of itself. In some cases that's true, but the broker you hire makes a difference in how much exposure you get. Exposure is the key because that's how many people are looking at your home. You're currently reading this article because I have a marketing strategy that goes directly to you.  Your real estate agent should consider the types of strategies that will get the right buyers for your house. Having a great marketing strategy that includes detailed digital marketing is crucial, and not many brokers do it.  2. Get an agent that is an experienced negotiator. Another critical aspect of your agent is that they know how to negotiate well. Everyone knows a licensed Realtor; a slew of people are entering the real estate field right now because they think it's easy to do. However, almost no one gets trained in negotiating. When I got back into real estate 20 years ago, I was trained to negotiate, and now I'm even better with that much more experience. You need someone who can protect your dollar and advocate for your best interests.  “The broker you hire makes a difference in how much exposure you get.” 3. Get an agent that has a pricing strategy. Get a Realtor who helps you understand your property and how to price it correctly. Pricing is essential; an array of things are involved in pricing, and in Portland, we don't have a bunch of cookie-cutter neighborhoods. We have tons of eclectic-type neighborhoods where the houses can vary in price by hundreds of thousands of dollars depending on where it sits. This leads me to my next point… 4. Get an agent who understands how location affects marketing. You need an agent who can look at your property and say things like, “Let's talk about what you have. Where is your home located? Do you have nuances like power lines in your backyard? Does your home sit next to a busy road? Are you on a cul-de-sac next to green space?” 5. Get an agent that factors in the condition of your property. A house that was built in the ‘70s that has quite a bit of the original aspects doesn't compare in price to a house that was built in the 2000s. Your Realtor needs to be able to look at it very diplomatically and assess what the price range for your particular house is.  If your agent does all these things, they'll have a huge impact on maximizing the price for your home.  If you're thinking about selling, let's talk. What I discussed above is what I talk about with all my clients. We'll sit down and discuss strategy and decide what's best for you. I pride myself on innovation and keeping up with market trends and technology to support my community and help my clients.  If you have questions about this topic or want to talk about it further, call me. I would love to help you.  

Here's how hauntings and negative stigmas affect home values. As we head deeper into October, I thought it would be fitting to discuss a spooky real estate topic: Does a haunted reputation affect a home's value? The short answer is absolutely! Think about it, would you want to live in a house you know someone was murdered in? Unnatural passings create stigmas around homes, and the severity of the stigma depends on how gruesome the details are. For example, if someone passed away peacefully in their sleep, that won't create a stigma at all. On the other hand, a murder in cold blood will have a big negative impact.  Stigmas aren't always a death sentence for a house. For example, the famous home from “The Conjuring” was listed recently for $1.2 million! For those who don't know, the movie is based on a supposedly true story of a family moving into the home and experiencing a severe haunting. However, homes tend to sell for a lot in that area, and I guess inventory is low enough for some buyers to ignore the hype.  “If you price correctly, even a haunted home will sell. ” A lot of properties around the U.S. have stigmas, including one of mine. I was renting the property to a tenant when they, unfortunately, decided to end their own life in the home. When we decided to sell the property, a lot of buyers were turned off by what happened there. However, when we lowered the price, fewer people seemed to care. In fact, a bidding war started, and we were able to sell the home for close to what we originally asked.  No matter what, you should disclose if something stigmatizing has occurred in your home. It's important to a lot of cultures and religions, so it's the right thing to do. It may make your home more difficult to sell in the short term, but there's always someone willing to pay a good price for a quality home.  If you have any spooky stories you want to share, or if you have questions, please call or email me. I am always willing to talk!

Here's how our Portland market is doing amid the new wave of COVID-19. Today I'm sharing our Portland real estate market update for September 2021. We are back in the throes of the coronavirus, so how does that affect the market? I've been listening to and reading up on many relevant economic topics because the delta variant is throwing everything for a loop again. To tell the truth, we don't know where things are headed because of this, but I can share what I do know.  Feel free to watch the full message above, or use these timestamps that will direct you to various points in the video: 0:00—Introduction to today's topic 1:25—Inventory has been increasing 2:55—We're still in a seller's market 3:20—It's a great time to sell 5:05—Prices will likely continue to rise 5:50—Keep your eye on cryptocurrency  7:00—Wrapping up today's topic If you have any questions about buying or selling strategically or real estate in general, please let me help you. Even if it's just a conversation about what you're thinking about doing, I can give you our professional opinion. I do that for people all the time. Call or email me if you need anything. 

Homebot is the latest and greatest tool for today's homeowners. I'm excited to share a free resource that's going to help you track the value of your home, the homes around you, and much more. It's called Homebot, and I've tested it myself quite a bit. It won't replace the instincts of a local broker with boots on the ground, but it is a fantastic tool that will empower you as a homeowner and help you reach your goals. Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message, or use these timestamps to browse specific topics at your leisure: 0:45 — How Homebot is a better version of a CMA 1:54 — My plan for getting all of you set up with this service 2:22 — What I like most about the Homebot service 3:15 — Why the homeowners I've introduced this to are LOVING it so far 4:00 — A few of the tools that I like the most 4:35 — Wrapping up Keep an eye out for some Homebot emails coming soon to your inbox. It's very user-friendly, and I hope that this tool is going to help accomplish your real estate goals. All of your info will be private and secure. If you have any questions for me about Homebot or anything else related to real estate, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.  

Here's why buyers are purchasing resale over new construction. Today's homebuyer is choosing resale homes over new construction. That was not the case in 2020 when 60% of buyers wanted to buy new construction. What happened in the last year that turned the tide? In 2020, a lot of people ran to buy new construction because they were afraid of buying a resale home in the midst of a pandemic. There's always a population of buyers that want new construction. Last year, with the lumber prices going above what anybody expected, home builders started to put language in their contracts saying that they could switch the pricing up at any time. Buyers got sick of paying all these crazy prices and not knowing if their house was even going to be theirs at the end of it. As a result, homebuyers want to buy resale with fewer clauses and unknowns. Stay tuned for more updates on the new construction home market. It has a unique dynamic compared to resale homes, so we're watching it very closely . If you guys have any questions, please feel free to reach out to me.

Here are my top three reasons why the market might be slowing down. In today's hot market, there seems to be one question on everyone's mind: When will home prices drop? Right now, one of the biggest search questions on Google is, “When is the housing market going to crash?” While we probably aren't heading for a crash, I think a lot of people can tell the market is shifting a little. Today, I'll go over in detail my top three reasons why the market may be cooling.  You can watch my full explanation in the video above, or watch the topics that most interest you using the timestamps below: 0:00 — Introduction 1:16 — Portland's market has been crazy  2:33 — There are a few signs of slowing 3:40 — First sign: buyer fatigue  5:37 — Second sign: Vaccines mean some people are heading back to the office   7:15 — Third sign: ‘Challenge' homes are having trouble selling 9:00 — Low interest rates mean it's still a seller's market 9:30 — Wrapping up today's topic If you have any questions about the shifting market or real estate in general, do not hesitate to reach out to us. We'd love to hear from you.

Here are the four states people move to the most when leaving Portland. Today's blog is part two in my two-part series about people moving to and from Portland and Oregon. Let's begin by talking about the four feeder states, as we call them. These are the most common states people are moving to when they leave Oregon:  1. Arizona. The largest migration is to Arizona, but we've always had many people moving from Portland to Arizona whether it's for retirement, family, or work (plenty of businesses have a campus both here and there). This year, we've also seen a slew of people moving to Arizona because they want to trade their home values, want better weather, and the property taxes are lower. 2. Texas. For the last few years, I've seen an array of people moving from here to Texas and from Texas to Portland. It's a very inexpensive state because taxes are low, and they also get quite a bit of sunshine.  “We're seeing a swarm of migration both coming and going. ” 3. Florida. Often people are moving to Portland from Florida to get out of the heat, but lately, we've seen a bunch of people moving to Florida from here. Again, it's super affordable, and they get tons of sun. 4. Idaho. People love to live in Idaho, but the problem over the years has been that there isn't much industry or jobs, so they couldn't get the population growth like we've seen. However, during the pandemic when people had to work from home, a crowd of them decided to move to Idaho. It's cheap to live there, and there are numerous outdoor activities you can do in that state. It's currently the hottest place to move to in the U.S. because they've had a 30% to 38% increase in home values in the past five months and have the second-lowest inventory in the country right now.  Now let's talk about the state people are leaving the most to come to Oregon: California. We've always seen a plethora of people moving here from California. I receive a phone call from someone in California every week these days. It's great that they're cashing out their homes there and moving here, but they frequently mess with our home price structures. They like moving to Portland and Seattle because they want to stay on the West Coast. We're presently in a state of flux; we're seeing a swarm of migration both coming and going. The health crisis changed the game for all Americans; they're rethinking their living situations, where they want to live, how they want to live, the cost of living, and more. If you're considering making a move, now's the time to do it. Reach out to me via phone or email, and let me provide your home's value, a strategy for your move, or let me answer any questions you have. I hope you're having a great 2021.

Why so many people are moving out of Portland. We've had quite a year! The events that occurred over the last twelve months have led to what we're calling a “mass migration,” and not just from Portland—many areas are experiencing exoduses and influxes. California and New York in particular are dealing with people leaving en masse. I combed through the homes sold data over the last six months as well as for 2020, and it was pretty alarming to see the number of people moving out of the area. Some people weren't happy with the political unrest, some were concerned with safety issues, and some were just tired of the expense of living in Portland. The primary reason, however, has to do with the pandemic. COVID has changed the way people look at their living situations. Since many have begun to work remotely, they no longer feel compelled to stay in the area. “There are practically no cities that have gone unaffected by the growing popularity of working from home.” The ironic part of all this is that three to four years ago, Portland was the No. 1 area for people to move to according to U-Haul, which tracks where people move to and from. Sadly, events in recent years have many people concerned about where Portland is heading. For my part, I still love Portland and believe that it has so much to offer. To be fair, many people are still moving into Portland as well, so don't fall prey to misconceptions that Portland will soon be a ghost town. The bottom line is that COVID has changed the game for national real estate. There are practically no cities that can say they've gone unaffected by the growing popularity of working from home. If you have questions about the mass migration from Portland or anything else to do with real estate, don't hesitate to reach out to me. In the meantime, stay tuned to my blog for part two of this discussion.

Here are our team’s top six strategies to maximize your ROI when selling.   How can we maximize your home’s value in an already hot real estate market? Today I’m sharing the tips we discuss with our clients to help them get the highest possible ROI. Homes are currently selling quickly, but is selling the quickest the most effective thing to do? If you’re considering selling in 2021, these strategies are for you. Feel free to watch the full message above, or use these timestamps that will direct you to various points in the video. 0:00: Introduction to today’s topic 0:50: Your pricing strategy  1:30: Prepare your home 2:35: Decide which terms are most important to you 3:20: Set an offer review date 5:05: Don’t be in the house during the showing period 5:35: Hire a great agent 6:05: Wrapping up today’s topic Give us a call or send an email if you have any questions or want us to help you strategize your sale. We would love to be your real estate resource.

Here are the realities of selling then buying in today’s red-hot market.   Many folks are asking themselves, “How can I sell my current house and purchase my next one in this crazy real estate market of ours?” These days, we can no longer write contingent offers. About a year ago, the market was still loose enough that we could get away with submitting contingent offers, or at least writing offers while in escrow. Here in early 2021, forget about it—don’t even consider writing an offer that’s contingent on the closing of your home. Our market is in overdrive right now, and that approach simply isn’t competitive enough. You’ll end up homeless by banking on it.  “With the market as tight as it is, you can’t afford to throw your home on the market without a plan.” What are the alternatives, then? My first recommendation: Double-check with your loan officer as to whether it’s possible for you to buy first then sell. Recently, a client of ours realized during the pre-approval process that they could comfortably buy the new home they wanted before selling their current one. So before disqualifying yourself by making assumptions, explore every possible avenue for buying first. You might find that there’s a way to make it viable.  That said, the reality for most people is that they’ll need to sell before they buy. Thankfully, there’s hardly been a better time to be a seller. Most properly priced homes in decent condition are selling quickly with multiple offers, and sellers are commanding excellent contract terms. In some cases, we can help sellers negotiate for a favorable rent-back period, giving them significantly more flexibility as they look for their next home.  With the market as tight as it is, you can’t afford to throw your home on the market without a plan. It’s still wise to move into a rental after you close on your home sale. Yes, you may very well have to sign onto a lease, be it for three or six months. I get it—moving twice and paying rent is far from appealing. However, consider this: By the time you close on your sale and sign onto a lease, you’ll have money in the bank and ample time to explore the market. You won’t be rushed into your next home by circumstances, so you won’t have to make large sacrifices on the type of home you want. More importantly, you won’t be writing contingent offers, which, again, are a waste of time in this scorching market.  Unfortunately, there’s no super smooth, 100% fail-proof way to sell then buy right now. However, it’s well worth taking advantage of this insanely strong seller’s market to fetch top dollar for your home, so you need to be okay with making a few of these compromises. I hope you found this message to be helpful. As always, if you have further questions about this or any other real estate topic, don’t hesitate to reach out by phone or email. I’d love to hear from you soon.

Here’s a look at our competitive home-buying market and how to win in 2021.   Today I have some really important information to share with all the homebuyers out there in the market this year. As you may know, houses are coming on the market and leaving it just as fast. There just aren’t a lot of houses for sale, and I’ve never seen a market quite like this. Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch the full message or use these timestamps to skip to the sections that interest you most: 0:45- The difference between this market and the one we saw back in 2005, and why buyers need to be aggressive to win 1:30- Strategies some buyers are using to win out in this competitive market 2:40- What you need to know if you’re earnest about buying a home in 2021 3:21- The mentality you need as a buyer in 2021 4:16- What our team is doing to educate and prepare buyers to win in this market 4:52- How prices and interest rates are driving the real estate market 5:35- Wrapping things up If you are thinking about buying a home at all this year, reach out to us so we can get a solid, strategic plan set up for you to win. If you have any other questions about the market or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here are the top five most popular home features among 2020 buyers.   The unique challenges of 2020 transformed home-buying trends, and space became king. However, simply saying that buyers sought out larger homes doesn’t quite capture the core of this shift. For the first time in a very long time, people began pushing themselves to find creative and practical ways to optimize every space in their homes—a mindset that will likely persist in 2021. Here are the top five home features that buyers in our market gravitated toward in 2020: “It wasn’t uncommon to hear of RV dealerships completely selling out of their inventory.” 1. Kitchens. This gathering space has always been an integral part of a home, but why did it become even more important this year? Well, first of all, we were all using it more; with restaurants closed, cooking at home became essential. Throughout 2020, we noticed buyers being more upfront with their inquiries about a home’s kitchen: ”Does it have everything I need? How spacious is it? Does it have an island?” 2. Home office spaces. Given the major work-from-home shift, buyers began putting a premium on properties with extra bedrooms, nooks/reading areas, and even backyard sheds big enough to accommodate a desk and a computer—and a lot of coffee. It wasn’t just the adults who needed space for productivity, though; buyers sought out spaces that could be transformed into dedicated study zones for their kids who were enrolled in remote learning.  3. RV parking. Thanks to COVID, we’ve been witnessing an RV renaissance of sorts; for the better part of 2020, it wasn’t uncommon to hear of RV dealerships completely selling out of their inventory. People wanted to get out of the house, and with airline travel posing serious risks, “traveling local” became a huge trend.  4. Outdoor living. I spent most of my time last year out in the backyard, so I get it. Putting a cover over the patio, adding a fire pit, creating a haven for barbecuers, installing a pool, or simply having a quiet area for reading on a nice day—all these things helped sellers fetch top dollar in 2020.  5. An “escape” room. No, not one of those game rooms where you and your friends have to put your brains together to find a way out—I mean a place in your home where you can retreat to whenever you start to feel overwhelmed by everybody and everything around you. It could be an extra living area, a basement, a shed, an oversized garage (perhaps with a workshop) or something else entirely; as long as it allowed for some quiet, reflective time, buyers wanted it.  Hopefully you found this list enlightening. If there are any extra features you think should be added on, I’d love to hear them! Also, don’t hesitate to reach out by phone or email if you could benefit from a more in-depth chat about what you’re looking for in a home. I’m always ready to help in any way I can. 

Here’s what to know about the past and future of our market.   What happened in our Portland area real estate market in 2020? What have we seen so far in 2021? I don’t have a crystal ball and I certainly couldn’t have predicted everything that happened last year. When COVID hit back in March, we thought the sky was falling. There were a record number of sale failures due to so many being too scared to complete their transactions. What’s interesting, though, is that people came back to the market after just a few weeks, and by the time summer came around, it absolutely took off and gained strength as the year progressed. We went from having almost two full months of inventory to less than one in record time.  “We’ve moved on to a new year, but we’re not out of this market quite yet.” What fueled all this? With the pandemic forcing most people to stay in their houses day after day, many of them became all too aware of the deficiencies in their living situation. Whether they were working from home, their spouse was working from home, or their kids were schooling from home, they realized they needed more space. Conversely, the lockdown also convinced many people that they needed to downsize. There were plenty of people moving in and out of state for various reasons, all of which were caused by the lockdown.  The gasoline on this fire was interest rates. We haven’t seen rates this low since 2010. If you’ve refinanced your home during this time, good for you. If you haven’t and plan on staying in your current home for three to five years, I recommend doing so (let us know if you’re in need of a good lender). Money was so cheap and buyers’ buying power so strong that they started gobbling up inventory, which therein caused prices to rise higher than normal. It’s basic supply and demand.  We’ve moved on to a new year, but we’re not out of this market quite yet. There are still a lot of buyers out there, and in most cases, there isn’t enough inventory to satisfy all of them. It’s a great seller’s market, but whether you’re a buyer or a seller, my advice is the same: Reach out to my team so we can have a strategy session on how to proceed. We look at every situation on a case-by-case basis, and your best course of action depends on where you live, what you’re looking to buy, etc. We want to ensure you have all the facts and information before taking the next step.  In any case, I wish you the best in 2021. Stay tuned for more videos analyzing the state of our Portland market. If you have any questions, don’t hesitate to reach out to me. I’d love to hear from you.

Happy holidays to you! The holiday season has officially arrived. We hope you enjoy this wonderful time of year and make some fantastic memories. We wanted to take a moment to thank you for your continued support. We love helping people make their real estate dreams come true, so thank you for working with us and supporting our business. This may be a busy time of year, but we are always here to help you and answer any questions you may have. Give us a call or reply to this email and we’d love to help out. 

Here’s some important info to close the door on recent foreclosure fears. As you may have heard, some people are predicting that the fall and winter will bear a glut of foreclosures across the country. It’s obviously been a really rough year for many Americans; people have taken severe financial hits and lost their jobs. However, there are two reasons why this dreaded wave of foreclosures isn’t about to come crashing down anytime soon.  Early on in the pandemic, the government basically permitted homeowners to request a forbearance on their loans or avail themselves of some other avenue of relief, and many folks did run to their banks to seek leeway. While we can’t legally recommend forbearance, we can notify you that it is one of the options at your disposal if you’ve been rocked by financial hardship “In today’s market, 77% of all forbearances have at least a 20% equity position.” Right now, there’s a fear that these homeowners who have been granted forbearance won’t be able to afford their back payments, and it will lead to widespread foreclosures. This fear, however, stems from our ideas and experiences from the 2008 financial crisis when foreclosures were rampant, but it’s important to note that there wasn’t an equity position in the market back then. When market values fell, it created instant negative equity, making the situation especially dire.  In today’s market, 77% of all forbearances have at least a 20% equity position. On top of that, prices are very strong, so altogether we’re not really worried about a glut of foreclosures. Again, widespread foreclosures usually only occur in the market whenever people have little to no room on their equity to hang on to a property. If a homeowner has equity to work with, they’ll do what they have to do to hold on to their property. Banks are also doing their best to work with homeowners to avoid such a scenario.  I hope this message helped alleviate some of your concerns about a flood of foreclosures swallowing our market. Please rest assured that we’re not seeing anything indicative of the awful trend we endured in 2008 through 2012. If you have any questions about this or any other real estate-related topic, feel free to reach out to me via phone or email. I’d love to speak with you about your real estate needs or point you to some great resources!

Is COVID-19 impacting our real estate market? Find out here.     I hope you’ve all managed to stay safe and sound! I know these are trying times for a lot of people, given what we’re experiencing with the stay-at-home orders. Many of you have reached out to me to ask about what’s going on in the world of real estate. Has the pandemic affected our market? Today I’ll share a few key details that will give you a better perspective about how real estate manages to continue, even during the pandemic.

A sewer inspection is always necessary, even on a brand-new home. Here’s why. I’m here today at a new construction site to do a sewer scope inspection and I want to explain how this process works in case you ever need this inspection done. Essentially, a camera is poked into the sewer line to make sure there are no cracks, breakages, or inclines that would prevent the sewer from working properly. These lines are typically located within two feet of any crawlspace on a new home. “This inspection is worth every penny.” As a homeowner, you are responsible for what’s going on between your sewer line all the way to the city main. In the past, we’ve had some surprises at this stage, even with brand-new homes, so it’s important to have it done correctly. Sometimes there is more than one drain that we need to check, as was the case in the video above. The good news is that this scope turned out great, but the inspector mentioned that a few different new homes he took a look at last week did not. This inspection is worth every penny at the end of the day. If you have any questions for me, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.

How do you handle pets during home showings or the listing preparation process?  To most of us, our pets are our fur babies. We care about them deeply, and we want to make sure we take care of them when selling a home. After all, this can be stressful for them—they’re probably not used to seeing so many strangers walk through your home. Here are a few tips you can use to make the home selling experience comfortable for you and your pet and still sell for top dollar.   First, have a plan. If your pets are free to roam your house during the day, designate a comfortable spot for them during showings. This is especially important if you have cats who are skittish. It’s also helpful to know how your pets react to strangers so you can plan accordingly. Sometimes, my team puts signage up in our clients’ homes and notifies visiting Realtors about what kind of pets they can expect to encounter. Be hyper-vigilant that your pets won’t exit the home quickly while a showing is happening or turn on someone who’s a complete stranger.  “If your pets are free to roam your house during the day, designate a comfortable spot for them during showings.” If your pet simply doesn’t do well with strangers, it might be best to arrange a pet daycare. If you live close to where you work, it’s helpful to come get your pet during showings, but sometimes that’s just not feasible. It’s best to know which days work best for showings and where your pet can go.  Since our pets live with us, it’s also important to determine whether there are any smells that need to be mitigated before you put the home on the market. Just like we have to modify how we live to show a house, so do your pets, so box-up their toys, hide their litter boxes, etc.  Buyers are incredibly sensitive to pet odors and pet stuff littered around a house, and that kind of thing can deter some of them from buying. They might worry about the lack of maintenance or that there is a smell that can’t be readily extinguished. Some buyers might also be allergic to pets.  As always, if you have questions about this or any real estate topic or are thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help.    

You may have heard about instant offer programs from companies like Zillow and Opendoor. There’s a lot of confusing information circulating about instant offers, and today I’d like to give you a quick look at what this home selling option is all about. Instant offer companies give homeowners a cash offer on their property. One perk is that these companies are flexible, allowing homeowners to close whenever they want. However, these companies rarely pay homeowners a fair market value, and their discounted offers can be incredibly low. For example, a client of mine received an instant offer for $431,000, but we put it on the market and were able to sell it for $545,000.  “It’s hard to know which route to take, so we’re here to help you weigh your options.” It may seem crazy to leave money on the table by accepting an instant offer, but there are some situations where it makes sense. The seller may have a severely limited time frame for selling their home, for example. They may be unable to deal with all the repairs, showings, and responsibilities that stem from a home sale. In these cases, they don’t mind receiving less for their home if it means saving time and stress. Instant offers can vary drastically, and an offer may be close to what you’d make by listing your home. It all depends on the condition of your home, its location, and the market itself.  It’s hard to know which route to take, so we’re here to help you weigh your options. We can put everything on the table, showing you what you could make with a cash offer as well as what you could make by listing your home. From there, you can choose the one that makes the most sense for your situation. If you have any questions or would like to learn more about your home’s value, feel free to reach out to us. We look forward to hearing from you soon.   

How can you save money while also making your home more energy-efficient? Many people don’t realize they’re likely wasting hundreds, if not thousands, of dollars over the years by not assessing their home for a small list of things.  In Multnomah County, they passed a policy that states when you list a house for sale, you now have to show the energy score of that house. Whether it’s a hundred years old or brand new, it’s a requirement. It’s for informational purposes only but they are giving a score for the house depending on how efficient it is. A score of 1 would mean the house is not efficient at all, whether it’s the windows, insulation, etc. Few homes receive a 10. Effectively, it’s there to tell you how energy efficient the house is. These are my tips to help assess your own home and save money: 1. Switch to LED bulbs. They save up to 90% on your electricity bills. Imagine the cost savings over time. This can make a significant difference. 2. Seal leaks. You may not know that the weather-stripping on your doors is failing, for example. Anything that allows a draft to come in is an issue.  3. Get a programmable thermostat. When you’re sleeping, make it cooler. When you’re away, schedule it so that the heat doesn’t cost you, and so on.  4. Service the furnace and change the filters. This is the No. 1 thing that happens every time I list a property; people don’t know that you’re supposed to change the filters once a month. I’m guilty of it myself—people forget about it. Set up eye-catching reminders like a note on your garage door or in your calendar. This is huge, and it can change the efficiency of how your furnace is working. If you are looking to update your furnace at some point, they have high-efficiency furnaces now that will cause less money to rush out the door. 5. Update your windows. If you have outdated windows, that is likely causing a lot more heat and air conditioning to be expelled. Windows that are single-paned or old are not efficient. It is costly to update windows but in the long term, it absolutely makes the home more efficient.  “When you list a house for sale, you now have to show the energy score of that house.” 6. Update your insulation. Many times, older homes have a different code rating for insulation. They create amazing insulation for pipes, ceilings, and floors now. 7. Hire contractors to look at your house. Most people don’t know this exists: The Energy Trust of Oregon has contractors you can hire to look at everything in your home. They will give you a comprehensive report with suggestions for how to increase energy, information on cost-saving programs, and so on. I deeply endorse these tips. People I know that have used them have remarkably changed the efficiency of their homes by altering a few simple things or even a larger thing that saved them heaps of money.  If you have any questions on this topic, you can reach out to us by phone or email. We’ll provide the information for how to contact the Energy Trust of Oregon and get that scheduled. Don’t hesitate to connect with us. We would love to help you!   

A lot of you have been asking about what’s going on lately with that bit of stagnation in the market, so I wanted to address those questions today. Real estate during the winter isn’t always the same from year to year. Sometimes our market is quite busy, while other times we see it soften during these colder months. To better assess where we stand as we head toward winter 2019, let’s discuss a few key developments.  First, the average number of days homes are spending on the market has recently increased and is continuing to rise, as is a common seasonal trend at this time of year. While prices are starting to dip a little bit, price reductions have only gone up by about 5%. Again, this is typical of the fall market that cools off after the spring and summer. Right now, prices are still really good. They’re not too low, but homes simply aren’t fetching the high prices that they once were. At the same time, we’re seeing a good absorption rate, which shows us that we still have a healthy number of buyers out there. “We still have a healthy number of buyers out there.” These conditions don’t mean that every house is selling, but they do mean that you have to be dialed in when it comes to condition and price to get your home sold. The homes with the best price, condition, and location will go relatively quickly in any market. Homes with a bad location or a bad price are starting to sit longer. Finally, interest rates are still below 4%, which is fantastic. This is crazy cheap money, so buyers will continue to be here as long as they are low.  The time it takes your home to sell in this market all depends on your individual situation. If you have any questions for me about how long it would take your home to sell in this market or sometime next year, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.   

With about 10,000 baby boomers retiring every single day across the United States, it’s no wonder why this demographic constitutes such a large portion of buyers and sellers in our national real estate market.  If you, yourself, are among this massive group of buyers and sellers, then it’s time to connect with a Realtor. You’ll need a strong professional by your side, whether you’re looking to downsize, relocate, or simply move to a home with fewer maintenance requirements. “Like all buyers or sellers, baby boomers need professional guidance to achieve their real estate goals.” One popular option for boomers is to move back in with their adult children. This reduces the cost of living for everyone involved. Generational living is also beneficial for baby boomers with health issues, who may find it difficult (or even dangerous) to live on their own.  For those who have the desire and ability to remain independent, though, there are many other cost-effective options that your agent should be able to direct you to. This includes 55+ communities, condos, and other such properties. As you consider your options, think not only about your wants and needs, but also your financial capacity. And don’t forget to think about your tax situation. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.   

We haven’t seen interest rates this low in a while, so I wanted to take a few minutes today to explain to why they’re so important. We’re back to historic low interest rates and that means cheap money for buyers. For buyers out there who’ve been considering a move, your buying power just went up substantially. And for all the sellers out there, know that these low rates are going to increase the number of buyers we see and keep prices going up.  “Even if you just want to refinance, now is a great time to do that as well.” We’re not quite sure why this is happening, but if you’re thinking about getting into the market this year, you’ll want to do it while we have these low rates. Even if you just want to refinance, it’s a great time to do that too.  Interest rates fuel our market, don’t kid yourself. It’s not about how fancy our houses are or what upgrades we have, it’s about interest rates. When they go up, the market slows. This happened at the end of 2018. In 2019, with low rates, it’s the perfect time to take advantage of the opportunity to buy or sell a home. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.   

As we pass the halfway point of 2019 and take stock of our Portland market, there are three developments that buyers and sellers need to be aware of.  First, appreciation rates have normalized, which is great news. I like the pace of appreciation as it stands. There’s not a mad dash from sellers to draft their price upward and attract multiple offers, and prices aren’t rising to the point where buyers can’t get in the game. This doesn’t mean there are gobs of inventory to sift through, either. This year has been nice and steady. In fact, it’s one of the healthiest years for real estate I’ve seen in some time.  In the Portland Metro area, year-over-year appreciation stands at roughly 4%, which is a very good spot to be in—any economist will tell you the same thing. If you go too far over 4%, you’re in danger of sliding backward. If you dip too far below it, the market starts to stagnate. The national appreciation rate, meanwhile, is about 5%. Some people claim the sky is falling because we’re not seeing double-digit appreciation anymore, but if you’re a homeowner or a homebuyer, you want conditions to be nice and steady so there’s no risk of a market correction.  “Buyers’ buying power is increasing and sellers’ selling power is strong.” Second, interest rates are extremely low. They recently dipped to their lowest point in two years and are hovering in the 3% range. This means buyers’ buying power is increasing and sellers’ selling power is strong. It’s important to have that balance where buyers can afford houses and sellers can take advantage of strong demand. Good interest rates mean a good market, so if you’re thinking about making a move or refinancing, now’s the time.  Lastly, there are no indicators that a recession is imminent. Many people assume a great market can’t happen without being followed by a terrible recession because of what happened in 2008, but there’s no reason to believe a crash is coming. In any case, a recession doesn’t automatically mean we’ll fall off a cliff the way we did more than a decade ago.  To be clear, markets always ebb and flow, and we’re due for a shift, but there’s a healthy balance between buyers and sellers right now. Additionally, the Portland market is well insulated due to the high number of people moving to the area.  If you have any questions about our market or you’re thinking of buying or selling soon, don’t hesitate to reach out to me. I’d love to help you.    

Investing in residential real estate is a topic I’m very passionate about. I’ve recently been conducting market studies for past clients who I’ve helped purchase a property and who are now looking to sell that same property. The most exciting part is getting to share the news that they’re in an equity position to sell their home.  That’s just one of the many upsides to owning a home, and today I’ll spell out four more.  The first thing I tell potential homeowners is you’re paying a mortgage no matter what. The difference is that if you’re renting, the money you’re paying that could be going toward your own mortgage is just going straight toward your landlord’s mortgage—without any of the benefits. Why not pay your own mortgage instead of someone else’s? Secondly, homeownership means forced savings. In truth, a lot of us struggle to save money, but owning a home leaves us with no other option but to start saving, which will only pay off in the long run.  “Financially speaking, you cannot beat the numbers that I see each year when I help clients invest in residential real estate.” Another factor that often goes unconsidered is that owning a home creates a hedge against inflation. When you buy a home at today’s interest rates, your payment will be fixed at that amount for the life of your loan.  If you’re a renter, on the other hand, rent increases are an inevitability—it’s just a matter of when. Instead of worrying about paying higher rates each year, purchasing a home allows you to lock in your payment and never see it go up.  Last but certainly not least, think about the great tax incentives. Now, the government does set limits on how far our write-offs can go, but the tax benefits are still there.   Financially speaking, you cannot beat the numbers that I see each year when I help clients invest in residential real estate. Seeing clients acquire exponentially grow their wealth and equity for themselves and their family brings me a lot of joy.    If you have any questions about owning a home or about real estate in general, feel free to let me know. As I said, serving your residential real estate needs is a passion of ours, and we’d love to have a conversation about it with you!  

Many people are concerned that it’s no longer affordable to buy a home, but this is not at all the case. Prices have leveled out and interest rates are still low.  In fact, to put current rates into perspective, the average interest rate when I entered real estate 18 years ago was 9%. And people thought that was low.  So, if you’ve been concerned about where rates are headed now, you can take comfort in knowing they were once much higher. You may also be glad to know that the Fed has held off on plans to raise rates this year. Also, rates were lower last month than they have been in the past 13 months.  “Between higher paychecks and lower interest rates, affordability remains high.” This is a big deal because even a 1% change in interest rates equates to a difference of approximately $30,000 to $40,000 in buying power. In short: Now is a great time to buy.  But low interest rates aren’t the only reason this is the case. There’s also the matter of rising average wages. So between higher paychecks and lower interest rates, affordability remains high.  If you have any other questions, would like more information, or are curious about how my team and I can help you buy a home, feel free to give us a call or send us an email. We look forward to hearing from you soon. 

I was reading an article recently that was talking about the three groups of people who sell their houses and why they sell. As I kept reading, I thought that they did a great job of grouping most home sellers into these three archetypes. As it turns out, certain age categories tend to sell for similar reasons.  For home sellers in the age range of 29 to 38, the reason most of them sell is that because their house is too small and they need something bigger or closer to work. They are often referred to as move-up buyers. “Certain ages of homeowners tend to sell for similar reasons.” In the age range of 39 to 53, the most likely reason they will choose to sell is relocation for work or to be closer to family. We see plenty of people who just want to be closer to parents, grandparents, or friends. We’re seeing a high proportion of families moving in together as well. I’ve never seen this happen as much as it has in the last few years. Living expenses are so high that multi-generational living has become all the rage. The final group is home sellers aged 54 to 65. The most likely reason for them to sell is to downsize. This age group has had the big family house, but the yard and the house are too much to take care of anymore. This age group is thinking in terms of lifestyle and being able to travel more and have less maintenance. I’ve worked with all three types of clients. Obviously, there are other reasons that people choose to move, but most of them can be split into these three groups. Knowing that makes things easier for us when we’re helping buyers and sellers out in the market. If you have any questions for us in the meantime, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.   

No one assumes their home will fail to sell when they list it on the market, but, unfortunately, this is sometimes the case. The topic of failed listings certainly isn’t fun to think about, but it’s important to understand the reasons this happens so that you can avoid the worst during your own selling experience.  The first and most common reason a listing may fail is its price. If a home is overpriced, this can have disastrous results. Just because you can set whatever price you want for your property doesn’t mean you should. Buyers in today’s market are incredibly savvy. They’re looking for good, fair deals, and they’ll very rarely settle for less.  Agents understand that price is a sensitive topic, but the truth is that honesty matters more than pride. An agent who is truly invested in your success won’t shy away from potentially awkward conversations. They’ll be candid with you about the steps you’ll need to take to get your home sold. Price isn’t the only reason a home may fail to sell, though—a property’s condition can often play an even bigger role. After living in a home for some time, it’s easy to overlook its flaws. Buyers and their agents, meanwhile, will be on the hunt for imperfections the moment they set foot inside. It’s the job of your agent, therefore, to approach your home with a sense of objectivity.  “Ignoring the honest feedback your agent gives you could cost you thousands of dollars.”Your home needs to be clean, decluttered, depersonalized, and in good general shape before it hits the market. Ignoring the honest feedback your agent gives you could cost you thousands of dollars.  Unfortunately, the third reason your home may fail to sell is one that’s out of your control—location. If your property sits on a busy road, for example, some buyers may overlook your listing without a second thought.  Thankfully, homes in less-than-ideal locations aren’t necessarily doomed to fail. The three factors we’ve mentioned today (price, condition, and location) are all important. If your home is in a poor location but is priced appropriately and in good condition, you can easily succeed on the market with the help of an experienced agent. It’s all about developing a selling strategy that fits your specific home. Not every agent has what it takes to help you sell, but our team does. We recently worked with a seller who had already failed to sell three times in the past. After working with us, this seller got an offer after just one week on the market. As this story illustrates, the agent you work with can make or break your deal. So if you’re looking to list, don’t hesitate to reach out. We’d love to help. If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.   

If you want to make the most money out of your home sale, there are a few things you need to think about. I recently heard someone new to the industry talk about how there’s no need to prepare a home, but it’s simply not true. Getting your home ready for sale is the best way to put more in your pocket. However, because every home is unique, I couldn’t possibly give you an all-encompassing list of what to do to prepare. When I meet with clients, I’m evaluating their home based on what the market’s doing in their area, as well as their price point. If the market’s soft, the seller may have to do more to make their house presentable. It may not make it more valuable, but it will become more salable. This can be done through inexpensive updates, such as new carpets, fresh coats of paint, etc. “A poorly presented home can easily scare buyers away.” These days, buyers are walking through homes and looking for costly repairs they’d need to make. Freshening up the living areas can go a long way, as the first impression you want to give is one of a well-maintained home. If a buyer walks onto a property and sees old, gnarled carpeting, peeling paint, leaf-filled gutters, and an overgrown yard, their mind begins to race. They think, “If these items are in bad shape, what will the home inspection bring up?” A poorly presented home can easily scare buyers away. Make them feel secure in writing an offer for your home. Stick to the simple and inexpensive stuff—don’t do any major remodeling or updating. You normally won’t get your money back for these pricey improvements anyway. You simply want to make your home move-in ready, clean, and presentable for potential buyers. If you’re thinking about selling, let’s talk. As every house is unique, we can talk about the specific strategies we could use to make your home sell for the most it possibly can. Feel free to reach out to me with any other questions you may have. I look forward to hearing from you soon.  

Oftentimes, our clients are living in their homes while they’re trying to sell them, so my tips for you today will help you add value to your home while still allowing you to live there during the process. 1. Declutter. Get rid of everything you don’t need. I often tell my clients to either sell it, donate it, or chuck it—whatever it takes to minimize the number of things you have in the home so that potential buyers won’t be distracted. You want them to see a very clean, minimized interior of the home. You’ll be packing up anyway, so pack those things you want to keep away and put them in a storage unit, your attic, your garage, or some other place that won’t be in the way.  2. Deep clean. When was the last time you went to a five-star hotel? Try to emulate that level of clean. Clean the bathrooms, the moldings, and all those places we tend to forget about when we do our normal cleaning. You should not only clean, but also have a plan in place to keep your home clean throughout the selling process. 3. Maintain your privacy. A lot of times, the people we’re having come through your home are people you don’t know. They’re usually coming with an agent, but we still want to be sure your things are safe. Any personal belongings, valuables, prescription medications, and so on should be locked up and hidden away. Let’s not tempt anyone with anything that is overly valuable. 4. Kids and pets. With your kids, make it a game: Get some storage bins and let them put their toys in it, and create a contest to see how clean they can keep their space while people are viewing the home. It’s a good idea to establish a rule that they need to replace any toys they get out back in the bin when they’re finished.For your pets, it’s always good to have a plan to keep them caged, kennelled up, or out of the house altogether. If need be, make sure that litter boxes are clean and/or out of sight. The smell of an animal can really trigger buyers in a negative way, so be sure to have a third party evaluate any smells of the house. If carpets need to be cleaned or if anything needs to be adjusted based on how you’ve typically lived in your home with your animals, now’s the time to do that. 5. Present the house in its best format. If you’ve ever watched HGTV, sometimes you’ll see the couples go through homes that aren’t exactly clean or in great shape; some of them haven’t had someone come through to help them adjust furniture and make each space look its best. “It’s showtime: You’re not going to be living in this house the same way as you’re selling it.” It’s showtime: You’re not going to be living in this house the same way as you’re selling it. Have a third party, like your agent, come look through the home to help you identify what needs to be there and what doesn’t. This is also a good time to keep an eye out for any repairs that might need to be made before you put your home on the market. If they’re caught in the light, they can really distract a buyer from wanting to purchase your home. If you have any other questions what would help you maximize the value of your home and get it ready for sale, feel free to reach out to us today. We’d love to help.  

If you’re looking to come to the Portland area and buy a home, there are some things that you need to be aware of. This is why today I want to tell you all about Portland and what the process of relocating here looks like. The first thing to know is that Portland is a big, small city. Compared to other metropolitan areas, Portland is actually pretty small, but it’s spread out. This is why it’s important to know where you want to look for a home because neighborhoods can differ so greatly in terms of school districts and walkability. I recently received an email from a client moving to Portland from abroad. They wanted to live in a metropolitan area because they’re used to walking to shops and getting around by bike. Living in the downtown area may be the perfect fit for them. However, everybody is different. Some people may want a certain school district while others are looking for an older, cuter home on the east side. Others still will focus on the commute to work. You need to understand what you like to do and what you would like to be close to. Do you like the suburbs or do you like to be in the city? “I always caution those commuting to be aware of commute time.” Portland has become so popular that the traffic has gotten out of control and it’s probably not going to get any better in the near future. For this reason, I always caution those commuting to be aware of commute time. If you know what you want your lifestyle to look like and you know what type of commute you want, it’s important to start from there. If you come from a bigger city where you’re used to waiting in your car for an hour to an hour-and-a-half, then maybe it’s not such a big deal. Depending on your price point, though, we may have to look outside of the Portland metro area because affordability has decreased. If you’re conservative and sensitive about your price points and are looking for a certain type of home, sometimes we do have to go further outside of the city to find it. If you have any questions about moving to Portland, or if you’re ready to talk about buying and selling, please feel free to reach out to me. I look forward to speaking with you soon.  

A lot of people out there think you need to put exactly 20% down to buy a home because back in the good old days, you had to. Back then, there weren’t a lot of loan programs available, so our parents and our grandparents ended up telling us that we had to save for a 20% down payment. In reality, most of us can’t save fast enough to be able to put down 20% in today’s market. That’s okay, though, because the good news is there are many loan programs out there that don’t require you to put down 20%. Before I go any further, let me say that I believe putting 20% down is a smart move. It puts you in an instant equity position and oftentimes allows you to get the best interest rates and financing terms. Additionally, if you’re buying a house to use as a rental property, you’ll have to put down 25%. Now, if you can’t afford to put down 20%, you want to keep some money in reserve as a safety net when you buy, or it doesn’t make sense in your particular situation to put down 20%, there are various other options you can explore. Some banks offer loans at 0% down. There are certain qualifiers you’ll have to meet in this case, though. We find that credit unions are often your best bet for getting a loan with no money down because they have a rigorous screening process to make sure you qualify. “There are many loan programs out there that don’t require you to put down 20%.” You can also get a government loan, such as an FHA loan, for as little a 3% or 3.5% down. FHA loans are very common with first-time homebuyers because you can put a small amount down and get fabulous terms. Additionally, you can get a conventional loan at 5% or 10% down. The biggest factor I always tell people to look at when getting a loan is their down payment, because you’re basically buying that payment. It’s possible that putting down an extra few thousand dollars won’t dramatically affect your payment that much, so it might be better to keep that money in the bank and put less down. As always, all things have to be looked at on a case-by-case basis when you buy a property. You’ll have your own credit score and your own set of financial circumstances that the bank will have to review to decide if you qualify for any of the loan programs I just mentioned. I’m not a loan officer, but I have many great resources I’d love to share with you if you want to talk to a lender and get the process started. If you have any other questions about this topic or you have any other real estate needs I can help you with, don’t hesitate to reach out to me. I’d love to speak to you.  

In the past, I’ve always presented rent-to-own scenarios as being disreputable. However, there is now one instance in which this kind of arrangement is actually viable. A company here in the Portland metro area has totally flipped the script on rent-to-own arrangements. Their success has put millions of dollars into our local market recently, and so today I want to share some details on what this company is doing. First, before borrowers can take advantage of the great terms this company offers, they do need to undergo a process similar to pre-approval. Essentially, borrowers must qualify for the rent payment. However, the parameters for this stipulation are fairly forgiving. So long as you have about three months’ worth of rental payments in savings, you should be able to qualify. The company doesn’t require big down payments or ask for a large earnest deposit, and they also cover the cost of inspections. Once a buyer is qualified, the company pays cash for the property just like in any other sale. Technically speaking, the company acts as the buyer of the property, then allows the borrower to live there through a rent-to-own scenario. Best of all, though, people working with this company are under no obligation to go through with a final purchase if they eventually decide against owning the home. If you do decide to purchase the home, however, you can do this at any time after moving in. So long as you abide by the terms the company has set, there is no concrete time frame you must follow in purchasing the home. That said, the company will add 4% to the total price for every year you choose to rent, as this is the average appreciation rate. “Whatever may be holding you back from a traditional home purchase, working with this company can be a fantastic substitution.” This option is great for anyone undergoing a transition in their life. Whatever may be holding you back from a traditional home purchase, working with this company can be a fantastic substitution. Of course, not every home on the market will qualify for this program. The company does have some criteria. Still, most houses that are free of structural or safety issues will qualify. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

In today’s real estate market, buyers must realize that cash is king. Cash is king as far as homebuyers are concerned. Submitting a cash offer for the full list price means buyers don’t need to worry about receiving financing, going through the appraisal process, or being underwritten. A lot of sellers love this assuredness and it makes you a very strong buyer. What can you expect as a cash buyer in this market? For one, the seller is going to want proof that your money is liquid. If you’re pulling your cash out of some retirement account or another investment, you don’t have the cash on hand. You’ll have to show proof that you have access to it. They can’t just take your word for it. “Cash homebuyers are always preferred by sellers.” When you have that proof of cash, it gives you the ability to negotiate a little bit more. For the seller, not having to deal with a lender, appraiser, etc., is a big advantage. Another great thing about buying in cash is that you can buy quickly. If you want to get a great offer accepted, let the seller know that you’ll cash them out fast. If you’re from out of the country, it’s important that you know what your requirements are from your bank and how fast you can get the money in the country. We’ve seen certain foreign banks put restrictions on the amount of money that you can take out at a time. If you have any questions about buying a home with cash or want to know more about the Portland real estate market in general, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

We are halfway through the year, so it’s time for an update on our June 2018 Portland real estate market. This is an important time of year where we typically see things start to change.This year is no different. In fact, we are seeing a pretty significant change happen right now. While our market continued its surge of activity during the first two quarters of this year, things have let up a bit recently.Most people think that this is when the market starts to heat up, but we have actually been cooling off a little bit in June for the last few years. Right now, we have the highest inventory levels we have seen since 2014. This tells us that the home buying market isn’t quite as competitive as it has been in the last few years. “Anything under $425,000 is still selling extremely fast with multiple offers.”The first-time homebuyer price point (anything under $425,000) is still seeing crazy high prices and multiple offers, but for the rest of the market, we are definitely seeing a bit of a cool off. Honestly, that is to be expected after some of the crazy runs we have seen over the last few years.Another thing that is causing this cool-down is the slow increase in interest rates. We have been spoiled with crazy low rates for so long, and they are starting to creep up slightly. They will be bumped up over the next few months at least a few more times. This is going to affect affordability and buying power, which will cause even more significant changes for home sellers. Do not be surprised to see even more of a shift as the year progresses.All of this means that if you are looking to buy and sell while interest rates are low and demand is still high, now is a great time. Give us a call or send us an email today and we will help you out in any way that we can.

Welcome to part two of my discussion about omitted property taxes. Since my first video about this topic, I’ve gotten a lot of feedback about it and I’ve been able to gather more useful information for you. I even had a specialist who fights property taxes for a living come into my office to conduct a seminar about it. If you didn’t watch my last video, I’ll take a moment to explain what omitted taxes are. In the Portland metro area, there’s a cap on how much your property taxes can be increased each month (anywhere from 2% to 4% on average). There are circumstances that can change that, but one of the things the county is doing with omitted property taxes is checking if you’ve made significant improvements to your house or land and whether that means you can pay significantly more in property taxes. I don’t mean a couple hundred dollars more, either—I mean thousands. As I mentioned in my last video, I had a couple clients and one colleague who saw their property taxes double recently. We’ve since heard from many other clients and people in our industry about the same thing happening to them. This can significantly hinder your ability to afford your house and/or sell it at a higher price point. So what else do you need to know about omitted property taxes? What can you do to keep from paying more in property taxes? Well, in an ironic twist of events, I received a letter from the county requesting certain information about my house on the same day the specialist I mentioned above came to my office to conduct his seminar. In the letter, they asked what kind of home improvements I’ve done, what I think my property is worth, etc. The specialist told me that these request forms are only optional and that I shouldn’t fill mine out. The county only uses them to try and garner more information about your house. In fact, if you fill it out, it can be considered an affidavit and can be used against you to increase your property taxes. “Property tax increases can significantly hinder your ability to afford your house and/or sell it at a higher price point.” During this seminar, the question was also raised as to whether or not you have to let a tax assessor in your house if they knock on your door. According to the specialist, you do not have to let a county representative into your home to see what improvements you’ve done. They are allowed to look through your windows, though. Many of these assessors can show up at properties to get a better understanding of what you have, so you can’t shoo them away, but you can choose to not let them enter your home. I find it interesting that this kind of thing is occurring at a high level. Last year, each county made over $2 million in omitted property taxes, and they’ve hired more staff to look into certain permits and pull data from our MLS and popular real estate websites like Zillow to figure out ways to increase property taxes. So, again, if you or anyone you know out there has had any issues with omitted property taxes, we would like to help. Just give us a call or send us an email and we’ll be there to help out. We look forward to hearing from you soon.  

If you have private mortgage insurance on your monthly payments, you’re going to want to hear what I’ve got to share today. First of all, what is private mortgage insurance? Private mortgage insurance, or PMI, is an insurance policy that protects your lender whenever a person puts less than 20% down on a home purchase. On average, PMI costs between $30 to $70 for every $100,000 of the amount you’re borrowing. However, if you’ve gained an equity position at or above 20%, even if you didn’t originally put 20% down, there is a possibility you could get your PMI removed. This isn’t a guarantee, but there are some banks that will allow it. Given that PMI costs an average of $100 to $200, removing this extra expense could translate into significant savings. “If you’re able to remove your PMI from your monthly payments, this could translate into significant savings.” Another common question that arises regarding the subject of PMI is whether this expense is tax-deductible. I’m not a CPA, but the research I’ve done seems to indicate that you can deduct your PMI if you make an AGI net of less than $100 per year. Ultimately, you should speak with a CPA to determine whether you can deduct your PMI or not. All of this being said, there are certain loan programs that allow you to put down less than 20% without taking on PMI. So, check with your lender to determine your options moving forward. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

In real estate, we are seeing generational living become a huge thing. We recently held an open house for a 5-bedroom home with well over 4,500 square feet and we were shocked at the number of buyers who came in looking for a setup where they can have mom, dad, their kids, or both living in the same household. This trend seems to increase in popularity each year. Portland is not exactly the most retirement-friendly place. Our cost of living is pretty high, as are our property taxes. Downsizing won’t result in you paying much less like it would in other areas of the country.Property values are just so high right now. This is why we’re seeing more and more families come together under one roof. What they’re typically looking for is something with a master bedroom on the main floor and two separate living areas. Accessory dwelling units are becoming more popular as well. This is a really fascinating trend to watch. If you have any questions about generational living or about other affordable living options in Portland for you and your extended family, don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you soon. “Portland is not exactly the most retirement-friendly place.”

Omitted property taxes are what we are going to talk about today. They’re really important to pay attention to because they could mean that your property taxes have increased or even doubled. I hadn’t heard of omitted property taxes until the last few weeks, to be honest. I discovered something that has absolutely blown my mind regarding property taxes in the Portland metro area. Here’s what omitted property taxes actually are. It’s when the county can determine that your property value is substantially higher than it’s currently valued at. They can then send you a new tax bill outside of the tax season. This can result in your property taxes being doubled. “I had never heard of omitted property taxes until recently.” How did I discover this? I recently listed a home that had property taxes of roughly $7,500 per year according to the owner. When we put it up for sale, it jumped to $13,000 per year. That just didn’t seem right. We did some homework and discovered omitted property taxes. One of my colleagues had a property like this recently that didn’t go through because of omitted property taxes. Right before closing, the title company did a title sweep and found the property taxes went up from $25,000 to $38,000. We don’t want this to happen to any of our clients. Eventually, we learned that almost every county out there has sent out nearly 500 notices to homeowners for omitted taxes. In 2012, they only sent 100. There is somebody in the county who is looking for omitted property taxes on a daily basis. If you or anyone you know out there has had any issues with omitted property taxes, we would like to help. Just give us a call or send us an email and we’ll be there to help out. We look forward to hearing from you soon.  

Today I’m going to give you the full rundown of what happens before, during, and after a home inspection. The home inspection is probably one of the biggest things that happens in a real estate transaction, and it’s one of the biggest contingencies a buyer has when doing their due diligence. The home inspection gives the buyer an opportunity to find out anything and everything they want to know about a home before they make their purchase final. The inspection is a contingency, meaning that the buyer can walk away from the transaction at any time if they find something in the inspection they aren’t satisfied with. When a buyer hires a home inspector to come look at a home, they are going to make note of each and every last detail. The inspection isn’t a pass/fail exam, it’s more like a full physical for your home. A normal inspection report will have around 20 items, but the ones you want to pay the most attention to are the ones that present health and safety issues. Structural health is an important thing to keep an eye on, too. “Every home and every inspection is different.” Most of the things that show up on an inspection report are solvable.  If there are specific issues that the buyer is worried about, we will bring in an expert to give us a better estimate. For example, if there was an issue with the roof, we would bring a roofing expert in to give a more thorough analysis.  After the inspections are completed and the buyer has had a chance to review the report, they have a decision to make. They could ask you to make some repairs, they could ask for a credit in the sale price to make them on their own, they could walk away from the deal, or they could proceed without asking for anything. Every home and every home inspection is different. All that matters is you have someone on your side who is going to be looking out for your best interests, and there are a variety of ways in which we do this. If you have any questions for me about home inspections or anything else related to real estate, give me a call or send me an email. I look forward to hearing from you soon.   

If you’re thinking of selling your home anytime in the near future, there are many ways you can increase its value before the time comes. Here’s a list of seven improvements that typically cost under $10,000 but can add tremendous value to your home when you sell: 1. Curb appeal. What do people see right when they pull up to your home? If you have flaky paint or landscaping issues, those are a few easy areas that you can address on your own. Repainting your front door and baseboards is a good idea too. 2. Replace windows with new vinyl ones. I’ve talked to many clients who said that doing this saved them a ton on energy costs in the summer and winter. 3. Open things up. If you have a kitchen or living room wall that can be knocked out, it’s not an expensive thing to do and really makes a difference. Buyers these days want a sense of openness in a home, and opening up your living spaces is a great way to do that. 4. Outdoor living spaces. People want to be able to enjoy all aspects of their home, including the outdoors. If you have room to put in a fire pit, fireplace, outdoor kitchen, or patio furniture, it’s great for your home’s value. “People love to see extra storage space in homes.” 5. New appliances. There are a lot of places that offer great deals on new appliances at this time of year. If you’re thinking of selling in the next few months, this is a smart idea. If you need any advice on where to look, just let me know. 6. Carpet. Carpet and paint are usually pretty cheap and can really make the house feel brand new. There’s nothing like fresh paint and carpet. It’s like a great little facelift. 7. Organization. A lot of people want to see storage space in homes. If you have dead space in your house, maybe in your kitchen, garage, or basement, there is a great opportunity for you to put in some storage bins. People want to know that you have storage space, so if you can open it up, I highly recommend doing that. If you have any questions at all about these tips or anything else relating to your next home sale, we are always here to help. Give us a call or send us an email today. We look forward to hearing from you soon.

Today’s topic will be the very compelling reasons why you should consider investing in real estate now. Before I get into those reasons, I want to stress why it is I think this is important. I come from a family of real estate inventors, and the one thing we all have in common is that we want to retire.  Most us know that, as an average American, we can’t save our money fast enough for retirement. Most Americans are very, very behind in having enough money in reserves for when it comes time to retire. When you look around, there aren’t a lot of pensions available at companies anymore. The investment opportunities out there are so limited and they just don’t give you a lot of return. While owning a rental property may not seem very glamorous since it’s a long-term strategy, there are some compelling reasons to consider it.  “Most Americans are very, very behind in having enough money in reserves for when it comes time to retire.” The first reason is as I already said: we can’t save fast enough. If you try to save a portion of your income every month, that’s good, but most of the time we’re not able to save fast enough to get us to the end result of what we want to retire on. When you invest in rental real estate, you have somebody that wakes up every single morning and goes to work to pay your mortgage off. I don’t know about you, but that’s pretty attractive. Yes, there are costs involved with owning rental real estate. Done correctly over the long term, your asset and equity position can be far greater than anything you’ve put into it. Another reason is that you will get tax incentives. Instead of paying the government, we can pay ourselves a little bit more money by taking advantage of the tax incentives that we get from owning investment properties. It’s a beautiful thing, right? Additionally, even if you’re not looking at it in terms of a retirement option, you get an equity gain on average. So if you plan to hold a property for several years, you get the possibility of a good equity position as well as a pay down. You could also use it as a college savings plan by either using the equity to pay for expenses or by purchasing a rental property near the school so that your kids can live there and rent out extra rooms. There’s also the possibility that, down the road, you would get passive income through cash flow. I know a lot of people looking for passive income in their retirement years because once they stop working, where’s the income going to come from? So again, rental real estate isn’t glamorous, but I will say it’s definitely worth it. If you’re considering buying an investment property or want to learn more about it, please let us know. We do several seminars about it throughout the year. We’d be happy to give you an invite.

How do you sell a home with a perhaps haunted past?Let’s say you’ve got a property with a stigmatized past. The kind of home I’m referring to is one wherein an event such as murder or suicide took place. I’ve actually got a personal story to share with you on this subject. But first, I’d like to cover some general information about stigmatized homes. Of course, we all have different sensitivities. Variations such as culture and mindset can have a big impact on how people view death. Some people are bothered by a death having occurred in a home regardless of cause, while others are more deterred only by particularly gruesome passings. So, what do you do when a house has a dark past? How can you handle listing a property that may be stigmatized due to past events? I’d like to now move on to tell you about my own experience with this situation. Sadly, a past tenant in a rental property of mine passed as a result of suicide. After I and everyone else involved had a chance to process the events, we ultimately decided to sell the property. “It’s important that people don’t feel blindsided by an unexpected fact about a property they intend to buy.” When we first put the property on the market, we listed it at full market price. However, I did speak with a few attorneys about the subject of disclosure. I didn’t want to hide what had happened. As a rule of thumb, one should generally disclose any information that may dissuade someone from buying a property. It’s important that people don’t feel blindsided by an unexpected fact about a property they intend to buy. As a way to address this, I wrote a letter explaining the circumstances to the property’s future buyer. After listing the home, I received two offers at fair market value. However, once I shared the letter, each of these buyers decided against moving forward. This was certainly something I expected. I tried for some time after that to continue to market the property at that value, but ultimately dropped the price. Once I did, I received many, many more offers. Even after I showed them the letter, the new buyers that I had brought in didn’t care. Because of the high level of interest dropping the price had created, I was ironically able to bump the price up to nearly as high as I had listed it to begin with. From my experience, I’ve found that sometimes the best route is to move the property into a different price point. You can sell a house with a past. It all comes down to the way you market and to how sensitive a buyer is to a certain subject. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

There are a few main buyer demographics to look at in today’s market. When we look at buyer profiles, what we’re really examining is which groups are buying property right now. If you’re selling your home, knowing your buyer demographic can be extremely helpful in marketing your property. So, what are the most common buyer profiles driving the market right now? Well, the one demographic that will always be our biggest base when we discuss the population driving the market is first-time homebuyers. Right now in Portland, 71% of buyers are looking at properties in the $350,000 and under price range—these are our first-time homebuyers and our affordability buyers. The second demographic that makes up a large portion of buyers are people looking to downsize. Whether it’s because they’re aging and need a smaller space, or want to get rid of a lot of physical belongings, there is a huge base of buyers who are tired of the maintenance of a larger home. “These buyer trends are making our market surge.” Next are relocated buyers. This includes people who are either living out of state and are now moving into Oregon as well those who are currently renting but are ready to buy. There are several “hot spots” in the country from which these kinds of buyers come—whether they’re moving for work or simply because they admire the Portland lifestyle. The fourth group of buyers is overseas buyers—which is closely related to our previous category. In Portland, we see a lot of overseas buyers coming from places like China, for example, who view our city as an affordable West Coast option. With many of these buyer demographics coming from out of the area, truly native Portland residents are becoming rarer. However, this trend might slow down if other cities elsewhere in the country start to experience a market shift. But for now, these buyer trends are making our market surge. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

If you’ve been watching my updates over the last few months, you know that our market has been extremely hot. High prices, low inventory, and multiple offers were the norm. However, I knew this day would come. Part of this change is seasonal, but we are definitely seeing some indicators that the market is starting to shift. Here are five of them: 1. Contingent offers are going up. We saw a huge bump in these in the last 30 or 45 days. There are about 100 homes right now that have contingent offers on them. We haven’t seen that many in a while. 2. Expired homes are on the rise, too. We saw over 200 expired listings in the last 30 to 45 days. These are all homes that failed to sell on the market for one reason or another. “We’re noticing more and more changes.” 3. Failed sales. About 612 home sales failed in the last 45 days. These are all instances where a sale was agreed upon but fell apart during negotiations for whatever reason. This tells us that buyer expectations are high right now and they aren’t afraid to walk away. 4. A big increase in price reductions. We’ve seen 43% of all homes in the Portland metro area have at least one price reduction in the last 30 to 45 days. This is significant because we haven’t seen many price reductions in a long time. We’ve seen more of the opposite with bidding wars. 5. The closed sales have dropped. We’ve seen a 13% year-over-year drop since July, as well as a 7.9% drop in pending sales. After a strong first two quarters, we saw a steeper drop in the third quarter than usual. We’re starting to see some indicators that our market is starting to get leveled out. It’s starting to get more healthy and normal. However, it’s still a fantastic time to sell a home if you’re in the market for it. If you have any questions for us, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.

If you’re a seller in our market, you have to be prepared to sell your home more than once.  In a market like we’ve been in, where home values have been rising quickly, we’re seeing a lot of challenges in the appraisal world. Even if you come to an agreement with the buyer on the sale price, you still have to sell that price to the appraiser, who has to find reasonable comparable properties to suggest they can verify your home’s value so the bank will give the loan to the buyer.  A 1% to 2% difference in your home’s value may not sound like a lot, but it can completely derail a mortgage. This means buyers have to come to the table with more money to make the loan-to-value ratio work. If they don’t have that extra sum, then you have to come down on the list price. If neither party can come together on a price, the deal falls through.  “A 1% to 2% difference in your home’s value can completely derail a mortgage.” With prices rising and appraisers doing everything they can to justify home values to the banks, we’re seeing a lot of that happen. In the end, your home’s value has to match what the appraiser agrees to.  If you have any questions about how to sell your home twice or you’re thinking of buying or selling a home in our market, don’t hesitate to reach out to me. I’d be happy to help.