Buyer’s are still getting the pick of the litter with current inventory levels so high in Metro Portland and the surrounding suburbs.  Increasing interest rates, a large housing availability, and fewer numbers of buyers and investors entering the market, are all factors which have been at work to fuel this slow market time.

In addition, continuous media banter about housing bubbles bursting and the real estate slump in many metropolitan areas, has nervous buyers on edge and has deterred some from buying now.  It should be noted that CNN recently reported that Portland, OR is NOT experiencing the bursting housing bubble that supposedly exists in the major east coast and midwest markets.  In fact, even though housing prices have gone down, overall housing prices have continued to appreciate in the Metro Portland area, just at a lower rate than sellers have become accustomed to.

If you are thinking about buying a home or investment property, now would be the perfect time to do so.  Although interest rates continue to rise, on a relative historical basis, they are still low – hovering just under 6% for a 30 year fixed loan.  In addition, the longer market times are forcing motivated sellers to drop their list prices to try to get a faster offer.

I would love to assist you with your Portland purchase.  Please contact me today at phyllis@pointclickandpack.com or at 503-421-2407.

CNN just reported today that nationally, real estate prices have dropped 1% from February 2006 to February 2007.  However, in some markets, prices have risen 2% – 5%.  Portland, Oregon was the number one city on the CNN list for rising real estate prices.

If you need assistance buying or selling a home in Portland, please contact me today at phyllis@pointclickandpack.com.  I look forward to assisting with all of your real estate needs.

When a real estate transaction fails in Portland, OR, who gets to keep the earnest money, the buyer or the seller? 

The buyer has three ways out of the standard earnest money agreement; (1) property disclosure law; (2) inspection contingency; and (3) preliminary title report. 

The property disclosure is the buyer’s right of revocation under Oregon law.  It consists of four pages which list, in check-box format, general statements of what the seller knows about the house since they’ve owned the home.   The buyer has 5 business days to revoke his/her offer for no reason whatsoever after RECEIPT of this document.  If the buyer is not given the disclosure form until just prior to closing, the buyer can technically terminate the transaction and keep the earnest money up to closing.  However, most listing agents and brokerages stay on top of this law and issue the disclosure form immediately upon offer acceptance.

The standard inspection contingency is 10 business days after offer acceptance.  After the home inspection, the buyer typically issues an inspection addendum and asks for repairs or a price reduction in lieu of repairs.  If the buyer decides to terminate the transaction instead of asking for repairs, the buyer keeps the earnest money.

The preliminary title report is issued by the escrow officer within 5 business days of offer acceptance.  The buyer then has 5 additional business days, once they receive their mailed copy, to challenge the title report if any unacceptable liens or encumbrances show up on the report or if any codes, covenants and restrictions (CCR’s) appear which would interfere with the buyer’s enjoyment of the property.  If the seller can remove the lien/encumbrance or change the CCR, the buyer cannot terminate the transaction based on the report.  However, if the seller cannot remove the item in question, the buyer can back out and keeps the earnest money.

All of these contingency periods normally run concurrently within 10 business days after offer acceptance.  Once all three contingencies have been satisfied, and if the buyer has not terminated the transaction as a result of one of these contingencies, then the buyer’s earnest money becomes at risk if the buyer wants to terminate prior to closing.  The earnest money would then go to the seller as liquidated damages for keeping their house off the market while waiting for the buyer to perform.

There is one exception to the seller’s ability to keep the earnest money after all contingencies have been satisfied, and that is if the buyer’s financial status changes in the form of a job loss, job transfer outside of 50 miles from the subject property, or some other unforeseen financial set-back that would preclude the buyer’s ability to secure a loan.

For additional information about Portland’s real estate market, please don’t hesitate to call me at 503-421-2407 or visit me online at www.PointClickandPack.com.  I look forward to assisting with all of your real estate needs.