One More Reason Home Prices Continue their Rise

The Oregon Association of Realtors reports:

A 2016 study from Josh Lehner (Oregon Office of Economic Analysis) illustrates Oregon is currently underbuilt by 24,000 units. In other words, we need to build 24,000 units just to equalize the supply/demand curve. Until we reach a period of hypersupply, Oregonians will continue to feel the pinch of the real estate supply/demand curve https://www.oregon.gov/das/OEA/Pages/forecastecorev.aspx
Posted on February 24, 2017 at 1:35 pm
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , ,

Even a “minor” kitchen remodel is Portland is $20,000, so….

the question is how to do it so the value holds up for the long run.  

Remodel_Works_Hughes-1

Here's HouseLogic's list of the seven "Kitchen Remodeling Decisions You'll never regret"

The $20,000 figure is from the 2016 "Cost vs. Value" report* that shows costs in Portland for 27 popular remodels .  It's for a "minor" kitchen remodel, (a "major" is $61,927 and an "upscale" $122,359).  It also estimates how much each project will return in short-term sale price. The "minor" kitchen remodel will increase your short term sale price by $23,197 – 11% over your cost, so a pretty good investment.  The "major" adds $48,371 and the "upscale" $87,667, but neither returns more than their cost.  Still, if you're going to live in the house for many years, there's no dollar value on the enjoyment you'll get from the new kitchen.  The report has figures on 26 other remodels.  Want a copy?  Let me know and it's on its way.  

Posted on August 15, 2016 at 3:37 pm
Dave Sutton | Category: Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , , , , , , , ,

Is this neighborhood noisy?

If prospective buyers could spend a week in a house they're thinking about buying, it would give them a good feel for the neighborhood, including how noisy (or quiet).  Now there's a tool that can help with that. Enter the address at HowLoud and you'll get a SoundScore – a 50 to 100 rating (higher is quieter) on the ambient noise level.  While it won't tell you about the neighbor who leaves for work at 5:00 AM on his Harley, it will give you a look into noise produced by trains, airplanes, traffic, commercial sites and the like.  If this "takes off" it will become similar to a WalkScore as one independent tool to evaluate a neighborhood.


 

Posted on August 11, 2016 at 1:35 pm
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , , , , ,

Property Tax Schedules & Who Pays Who on Sale

Oregon property taxes can by confusing.  Especially due dates and how they are prorated when you buy or sell.  Click Here for a simple chart from our friends at Ticor Title

 

Posted on July 14, 2016 at 9:42 am
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , ,

What to Do About that Annoying (house/car/business/neighbor).

"That house down the street has 3-foot tall weeds all over the front yard"

"That car has been parked there for weeks"

"The business on the corner is so noisy I can't sleep"

"The neighbor's dog barks all day and night"

"I don't think that apartment being built over their garage complies with code"

In the City of Portland, there is a place to file a complaint for all these issues and more.

Click Here for a list of the right phone numbers for each of these issues, and many others. You can also file a complaint on line for almost all.  

Personally, I've only filed one complaint like these.  It was for a home under construction that had stopped the building process and let the weeds get 3-4 feet high.  I filed an on line report and in two weeks they had been mowed.  

Beyond removing an irritation to living, some of these things actually affect the value of all the homes in your neighborhood.  So among other things, you're protecting your home's value when you file a legitimate complaint.  

Posted on May 13, 2016 at 10:35 am
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate | Tagged , , , , , , , , ,

We just got approved for a mortgage, now we can buy the new car! NOooooo !!

ALL lenders have the right to do a second credit check (and confirm employment, etc) just before funding.  If you buy the new car after approval (or run up your credit card balance, or anything else that raises your monthly payments) you have changed your debt to income ratio.  iStock_000009005766XSmallAn acceptable ratio was one of the factors in the approval for your mortgage and if you change it by adding debt you may put yourself above the lender's limit and nullify your mortgage approval.

The safest course is to NOT take on ANY new debt after approval but before closing.  Don't buy a car, a timeshare or anything that would affect your debt to income ratio.  You've waited this long, stifle the urge buy whatever it is for another few days.  After closing, you're on your own, but don't risk your purchase by buying something now.  

Any good lender will tell you the same (but you may not have been listening).  If you'd like an introduction to a top-drawer lender who's been delighting my clients for years, let me know.

Posted on March 31, 2016 at 10:22 am
Dave Sutton | Category: Home Buying, Portland Real Estate | Tagged , , , , ,

Is Oregon’s Economy Improving? Yes, and Here’s Why

At a Windermere meeting last week we heard Windermere's Chief Economist.  

Here's the takeaway in plain English: http://www.bizjournals.com/portland/blog/real-estate-daily/2016/02/is-the-economy-going-to-be-better-this-year-brian.html

Posted on February 11, 2016 at 2:28 pm
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate, Portland Real Estate Statistics | Tagged , , , , , , , , ,

Seller credits in the Portland area?

I just answered a question on a popular real estate site asking about the average amount of seller concessions for closing costs and repairs.  Here's what I wrote:

You've mixed two different things when you include repairs with closing costs.  A buyer's closing costs typically include some escrow & title fees, property taxes, and insurance.  Repair costs are the price of repairing something significant that's defective or problematic.  For example, if the sewer inspection finds a problem or if there's radon above actionable minimums.  The Portland area is very much a seller's market today.  The inventory of detached homes for sale in the entire 3-county metro area is down 28.1% from January 2015. We have only 1.8 months of inventory, which means if we continued to sell at the same rate and no new listings were added, in less than two months we would have sold everything.  When inventory is about six months, it's considered an even buyer-seller market.  What that means in terms of costs paid by the seller today is "not much", because any decent home has multiple offers, usually all over list price. In December 2015 I had a buyer write a $335,000 all-cash offer on a 2-BR 1100 SqFt home in NE Portland that was listed for $319,900.  The seller received 21 offers and sold for $400,000 all cash with no inspection contingency .   That's unusual but not unheard of.  So if you're a buyer, and the house is decent (not a fixer, or in a bad neighborhood, or wierd floor plan), expect to offer at least list, don't expect any seller credits for closing costs and repairs are certainly negotiable.  

Posted on February 9, 2016 at 5:32 pm
Dave Sutton | Category: Home Buying, Home Selling, Portland Real Estate | Tagged , , , , , , , , ,

BIG House on a BIG lot in Kenton

Come see this bargain in person

8627 N. Seward Ave., Portland, Or

Posted on October 1, 2015 at 2:53 pm
Dave Sutton | Category: Home Buying, Portland Real Estate | Tagged , , , , ,

How Fast are Oregon Homes selling?

While the chart shows Oregon as less than 30 days, the reality is that any decent Portland home that's fairly priced will be gone in a week.  My last listing went live on MLS at 8:00 PM on a Saturday night.  We received 10 offers by Wednesday and accepted $56,000 over the list price.  

Besides the fact that the market is hot, this seller had wisely decided to have a home inspection before it went on the market, and fixed everything the inspection report turned up.  I recommend the pre-listing home inspection to all my sellers. Even if you don't want to fix everything, you get the time to generate multiple estimates for the work, instead of being presented with the buyer's bid late in the standard 10-day inspection period when you can't realistically get a contractor to show up in time to get any competing estimates. It's almost like agreeing to the highest repair estimate before you even see it.  Much better to have the time to get your own and either do the repairs or credit the buyer the amount of the lowest estimate. 

Posted on September 2, 2015 at 10:57 am
Dave Sutton | Category: Home Buying, Home Inspection, Home Selling, Portland Real Estate, Portland Real Estate Statistics, Uncategorized | Tagged , , , , , , , ,