This is the story of a family of four: Dad works in Portland, Mom works in Camas, and their two kids are in elementary and middle school. This family had lived in their 1966 home for 14 years and were ready for a change— they wanted more space, new features, and a change of schools. But like many of us, they had to sell to buy, even though their equity position was a good one. With the tight market of 2017 (predicted to be the same in 2018), they knew they might not be able to “step across” from one home to the other.
Their first job was to get their current house ready to put on the market. This included yard cleanup, carpet stretching, some minor paint touchup, and some other small things. These to-do items were not expensive, but they were important to make the home look “crisper” and more appealing to a buyer. In working with me on home value, we discovered the previous listing had overstated the square footage by several hundred square feet. We knew the real square footage from a more recent refinance appraisal, so we used that to determine value. Checking this is an important part of the buying process!
In mid-May, we launched the home on the market and had lots of showings with five offers in just a few days. This can be quite overwhelming. With my help, we dealt with all the complexity of evaluating these offers and selected one to accept. Meanwhile, another buyer who just missed out, decided to write a backup offer just in case something happened with the first accepted buyer.
Now, came time for the home inspection. The inspector said there were “sink holes” in the crawlspace! So, the buyer backed out. Now what? Something as serious as this needed to be investigated. We just don’t have “sink holes” in Clark County, so we believed there was another explanation. Turns out, when this house was built in the mid-60’s several large trees were cut down and the stumps were not removed. As they rotted over time, what was left was a hole – one particularly large one even had the trenches from large roots. We worked with the backup buyer who understand the issue, got the holes filled in with gravel, and then we closed in late June.
Next came the question of where to move. Nothing had turned up in the target location for the next home, so these folks signed up for the adventure of moving temporarily into a rental. They did this once we were through home inspection with the backup buyer, so they would have time to overlap and move over several weeks. There are several places around town that will do leases shorter than a year. Although the rental was smaller, they used the garage for storage of their many boxes. Now, finding the new house became our top priority.
It took a couple of months and we looked at many properties as they came onto the market. Eventually we found one, got our offer accepted and negotiated home inspection items including unpermitted square footage. The happy ending is that this family moved into their new place by the end of September, just in time for school to start and before the holidays!
Hopefully you will find this a positive story. Yes, it took commitment on their part to go through the ups and downs of buying, selling, and moving into the rental, but in the end, this family is “living the dream” and everyone is excited about their new future in their new home.
Thank you to these special clients for letting me share their story! Where does your new home story begin? Contact me today for information on more information on what it will take to embark on your journey in buying or selling a home.
If you’re in the process of buying or selling a home, chances are, you’ve run into some questions along the way. This is one of the many reasons why your Realtor® plays a valuable role each step of the way. One of your questions may have been what role the title company will play in your purchase or sale. In Clark County, escrow and title services are completed through the same company, but each department has different roles and tasks. Here is some helpful information that can help clarify what the title company does as well as what the differences are between escrow and title.
At the time your property is listed, thorough agents will request a preliminary title report. This will show loans, taxes (property and excise), certain kinds of personal debt (tax liens/back child support), which must be paid when the sale is completed. Of course, the total of these should be less than the purchase price of the home.
In addition, easements, road maintenance agreements, HOA information, and CC&R’s will also be on the report. These are examples of items that will stick with the property. Reading the title report will allow your Realtor® to know about any trouble spots that come with the property before closing happens. Once there is an accepted offer, the buyer and the lender are added to supplemental reports.
Escrow includes collecting all necessary documentation to allow the property to transfer over to the new owner. Escrow also will pay off underlying encumbrances (ie. Liens on the property), will place new encumbrances, and make the property transfer with the County. The escrow team will work up the costs for both seller and buyer, including pro-rated property taxes, pro-rated HOA dues, costs from the buyer’s lender, and closing utility bills that could become liens on the property (water and sewer).
While each real estate transaction is different, there are still some basic action items that need to happen with each one. The title and escrow company play a crucial role in the closing process. I will help walk you through the various steps to make sure you understand what you need to do.
We’re officially into 2018 now and it’s a great time to buy or sell your home. Contact me today to explore how to get the ball rolling.
The holidays are a very busy time of year for most people, but before you know it, decorations will be put away and 2018 will be in full swing. If you’re planning to be a buyer in the new year, it’s helpful to start reading now on how to make an attractive offer to a seller in a competitive real estate market. Here are some tips that can help you make the best offer.
Tip #1: Know what you can afford.
How much do you owe in debt? What are the ins and outs of your monthly expenditures? Understanding your finances should be the first step in your home searching process, then getting a pre-approval letter from a lender will help you know what you can afford. In addition, this letter will show sellers that you’re serious about buying a home and you can put your offer in with the confidence, knowing that you can afford the monthly payment.
Tip #2: Create a stand-out offer.
When you find the home of your dreams, be ready to make a great offer right off the bat. Your agent will help you figure out what offer is the best one and will take into consideration other home sales in the area, as well as the condition of the home, and what your overall budget is.
Tip #3: Be ready to act quickly and possibly negotiate.
The Clark County real estate market is still hot, meaning that inventory is low and buyer demand is high. Because of this, buyers many times need to compete to get the home that they want. This is where working with a real estate agent is incredibly valuable. Your Realtor® will work with you on creating a great offer and will present it to the seller as soon as possible. If it’s a situation where there are multiple offers, then your agent will walk you through the process of counter-offers, if needed. The bottom line: when you find a home you love, you must be ready to act fast before it’s gone and have patience with the process, because sometimes it will take some negotiation to get your offer accepted.
Buying a home is very exciting and 2018 will be a great year to get out there and find a home that checks all the boxes on your wish list. Contact me when you’re ready to get the ball rolling on house searching so we can create a great offer that gets accepted. In the meantime, my hope is that you have a happy holiday season that’s full of things that are warm, fun, and fulfilling.
If you’re considering listing your home for sale, there are probably a lot of “to-do” items on your list to get everything ready to go on the market. When you go to sell your home, you’ll want to make sure you get the most that you can and that means you’ll need to make your house look great. A home that is well maintained and has great showing potential can help bring in more buyers and help you get the price that you want out of the home sale. So how do you make your home look more expensive? There are some great ways to do this.
Interior and exterior paint can make a huge difference. It gives your home a bit of a makeover and potential homebuyers often respond to a space that appears to be clean and fresh. Interior colors should be neutral, as more unusual colors like bright blue or dark purple could cause buyers to react negatively. Instead, ivory or gray could be a good choice because they are basically neutral and appear classy.
Your home should come across as a place of comfort and relaxation, but if it’s cluttered, it can distract people from seeing the true beauty and unique nuances that your home has to offer. In addition, rooms that are cluttered with extra items could make the space feel closed in and smaller, sometimes smaller than it actually is! As you think about moving, start going through closets and rooms and get rid of the extra “stuff” that has built up over time. Organize one area at a time and load up different bins with items you want to keep, donate, recycle, or throw away completely.
#3: New fixtures and appliances.
Updated fixtures and appliances makes your home stylish and desirable to potential homeowners because they know they won’t have to take care of replacing these items for many years down the road. Older fixtures could make the home appear outdated and if you have them replaced, it shows that you’re committed to keeping the home up with current trends. Newer appliances are also very appealing, because homeowners won’t have to worry about going out and buying something that fits the home and they will be able to rely on those appliances for a long time. This is a huge selling point and is well worth the investment.
If you’re looking for other ways to freshen up your home and update it before you plan on listing it, I’m glad to help you with what home repairs, updates, or remodels can yield the best return for you. Give me a call today to discuss.
If you’re buying or selling a home, the inspection process can be nerve-wracking for people. It often brings up questions or concerns that may be a little bit overwhelming at first. The inspection provides an overall evaluation of the home’s condition. Inspections can be complex, depending on the home and its condition. Every inspection provides a detailed look at all the working systems of a whole house. Then, depending on the home, there can be additional inspection processes that look at the sewer, oil tank, roof, or radon levels. Doing an inspection should be written into your sales contract, so you can expect to have one from the get go.
When you’re getting an inspection, be sure to use a licensed inspector. These people need to complete continuing education courses and are experienced with inspecting a variety of different styles and homes of various ages. Your Realtor will give you advice on a recommended inspector or inspection company.
How the process works:
When a buyer gets an inspection done, the seller may not know what the results are for a couple of days. When the buyer gets the results, they will get a copy of the report and determine what they want to ask the seller to fix, if anything. Most often, the buyer has 10 days to get repair requests to the seller. The Realtor will help the buyer determine which “to-do” items are reasonable to ask for and what isn’t.
Once the seller gets the list, they are given some time to get quotes or bids on the items that need completion. Having an experienced Realtor to work with you during this process is important, as the back-and-forth process can create much dialogue. It is critical that everyone understands each other and having an agent you trust here can help guide you along through some of the confusing details. Many times, the inspection process requires negotiation and a Realtor can be an asset in this part.
As a seller, this time can be nerve-wracking, as you are waiting to get quotes done and wondering what the result will be! Your Realtor will help you decipher the requests that come in, determine what is customary, and negotiate on your behalf. Again, your Realtor will play an important role in helping you get through the many hoops that can sometimes happen with the inspection process.
Buying and selling a home requires many different steps and it’s okay to have a lot of questions along the way. The inspection process can be very involved, and I am happy to sit down and talk with you about it if you need additional clarification.
There are many facets of buying a home and the process can be a bit overwhelming at times. However, buying a home is very exciting and if you avoid various home buying mistakes, it will make your home ownership process one that is rewarding for many years to come. I recommend that home buyers avoid these three common mistakes when it comes to purchasing a house.
#1: Not working with a buyer’s agent.
A knowledgeable Realtor can help provide advice that fits your specific situation. An experienced buyer’s agent has worked with hundreds of different home buyers and they can help you understand what’s happening each step of the way. You’ll also be able to ask questions that may come up and your agent will also help you plan for closing costs and other costs that may arise. In addition, a buyer’s agent will help you know if a home is worth the price, what its resale value might be, and they will be your advocate when it comes to negotiations. When it comes to buying a home, you want someone on your side, and a qualified Realtor will be there the whole time.
#2: Not getting pre-approved.
Getting pre-approved for a mortgage serves dual purposes: it shows sellers that you’re serious and it also gives you a realistic idea of how much you can afford for a home. Work with a lender that you trust and gather up all relevant financial documents like pay stubs, tax returns, and bank statements. Your lender will work with you to get the information needed to provide an accurate pre-approval letter. Then, you can start shopping for homes within your budget.
#3: Not getting an inspection by a credentialed inspector.
A credentialed inspector will help alert you to any potential problems that the home may have such as faulty wiring, plumbing leaks, or structural issues. A layperson generally wouldn’t be able to spot these things, so when it comes to spending hundreds of thousands of dollars on a home, it’s worth it to pitch in a little bit extra to pay for a qualified and experienced inspector that holds proper credentials. Skipping that step could be costly, and you may end up paying for it later when you discover something major is wrong with the home.
If you’ve decided that you’re ready to buy a home this autumn, contact me today to help you get the ball rolling!
We continue to hear that the housing market is unbalanced—that there are more buyers than sellers. There is no single reason for the situation we are in today. Rather, the situation has developed this way because of several combined factors that suggest that the market will not return to equilibrium any time soon. Although this varies widely by location and price range, here are some reasons that this might be happening.
Reason #1: Demographics.
The first reason for the shortfall is purely demographic. As “Boomers” age, they are not following the trends of previous generations. Many are staying in the workforce far longer than their predecessors, and because of their postponed retirement, they don’t feel compelled to downsize their living situation. In fact, almost two-thirds of Boomers plan to age in place and do not plan to move even after retirement. Without this anticipated supply of homes from downsizing Boomers, there aren’t enough homes for move-up buyers. This limits the supply of homes for first-time buyers.
Reason #2: We don’t move as often as we used to.
As an overall nation, people aren’t moving as often. After experts have analyzed mobility, it’s clear that people aren’t required to relocate as frequently for work that matches their skillset. Because there has been a drop in geographic-specific jobs, are simply moving with less frequency.
Reason #3: Builders aren’t building as many homes.
Many builders are not building as many homes as they were in the past, because of three main factors: land supply/regulation, labor, and materials. The costs related to building a home have risen rapidly since the Great Recession, and this is keeping many builders from building to their potential. In addition, to justify the additional costs, many of the homes that are being built are larger and more expensive, which makes it difficult for many first-time home buyers that cannot afford the price of a newly constructed home.
So, what should you do in this kind of market? My advice is to focus on what works for your specific needs and if you want to explore what your options are, give me a call. I’m always up for a discussion about which approach might be right for you.
**Content an excerpt from blog posted 8/2017 by Mathew Gardner, Chief Economist for Windermere Real Estate
Now that school’s started, you might be thinking, is this a good time to list my house for sale? Autumn brings a new rhythm — the busy summer has passed and people are getting back into their day to day routines. Here are some great reasons why the Fall season is a good time to sell.
Although the market slows a bit after school is back in session, homes are still selling quickly because inventory is still low. Especially under the $450,000 price point, and potential buyers during the Fall are typically more serious about making their purchase decision. Nationwide, buyer demands strong too, according to a recent report out of the National Association of Realtors.
#2: The weather is still cooperating.
For the most part, autumn can be a good time to move because the heat of the summer has passed and the torrential downpours haven’t begun yet. No one wants to move when it’s blazing hot or when it’s snowing! Of course, the Pacific Northwest does get its fair share of cloudy and rainy days, but for the most part, autumn weather is cooperative.
#3: It’s a great time to make your next step up.
Because inventory is still low, it’s likely that your home will sell quickly. If you’re looking to make a next step up in the home buying process by buying a bigger house, now is a great time to consider making the jump. Experts predict that home prices will continue to rise within the next year, so if you wait, your dream home may increase to a price that is out of reach.
Home shopping during the fall can be great! Changing leaves make for great natural curb appeal – homes are looking cozy and ready for the upcoming chilly weather. If the time has come for you to get your home listed, contact me today to get the ball rolling!
If you’re in the process of purchasing a new home, on your bank paperwork, you may have noticed something called “mortgage insurance.” Not sure what it is? There are several different types of insurance that homeowners should be familiar with. Here, I will explain the basics.
Title insurance from the seller comes from the title company. It protects home owners and lenders from damage or property loss that may happen because of liens or other defects in the title to the property. Each title insurance policy is subject to specific terms, exclusions, and conditions.
Homeowner’s insurance/hazard insurance/fire insurance is a policy issued from an insurance company and it protects your property as well as the contents and possessions inside. It also provides liability coverage against accidents in the home or on the property. At closing, homeowners will pay for the first year’s policy in full.
This type of insurance is not a benefit to a homebuyer. When a lender provides a loan and the buyer puts less than 20% down on the purchase, the lender takes a bigger risk. If the buyer ends up defaulting on the loan and they don’t have much “skin” in the game, it’s possible that the lender won’t cover their loan amount when it comes time to liquidate the property. This cost can be paid within your monthly mortgage payment or up front and it will cover the lender’s loss if something were to happen. For some types of loans, particularly FHA loans, the premium will last for the life of the loan, even though your equity position might get you above the 20% mark. Conventional financing will typically have a provision for mortgage insurance that can be removed once the homeowner has 20% equity in the home.
Buying a home requires many different steps and there is a lot of research that is required. The insurance process can be complex and sometimes confusing, especially if you haven’t gone through the home buying process before, and that’s one of the many reasons why it is important to work with a well-qualified, experienced, hands-on Realtor. If you have questions about it, I’m happy to sit down and talk with you about any questions you may have!
The inspection process: generally speaking, this is an overall evaluation of a home’s condition. If you’re not clear on how the process works, keep reading and I’ll lay out the general guidelines of what happens.
When the buyer gets the inspection done, the seller might not know what the results are for a few days. Once the buyer gets the results of the inspection, they need to get a copy of the report, digest it, and determine what they want the seller to fix, if anything. Most of the time, the buyer has 10 days to get any repair requests to the seller. In order to expedite things, the agent should help the buyer determine what is reasonable and what’s not.
Once the repair list is drafted, the seller has time to look at it and digest what’s on it. They can clarify what’s being asked for and they’re given some time to get bids and determine what items they should fix. An agent to help with this part of the process is crucial. An experienced agent will help provide information on what buyers generally ask for and what could be determined as “too much” or “over the top.” The seller will then respond and then the buyer will decide if they will accept this response.
The back-and-forth process can create a lot of dialogue and it’s very important that everyone understands each other. Whether it’s credits to the buyer or items that need to be completed before closing to meet buyer bank requirements, your agent has valuable experience in the negotiation process here. Take advantage of this experience and rely on your agent to help guide you along.
Buying and selling a home is full of many different steps and details. The inspection process can be complex, so if you have more questions about it, I’m happy to sit down and talk with you about it.