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.

Each time I get a call from a new buyer or seller, the question that inevitably comes up is about the current housing inventory in Portland.  What the caller is really trying to determine is whether we are in a buyer’s market or a seller’s market.

Right now, Portland is experiencing a buyer’s market because the amount of homes available for sale exceeds the number of buyers looking to purchase.  The Market Action report, which is published by RMLS every month, shows that in February 2007, (our most current statistics at this writing), the number of new listings is up 18.9% when compared with the inventory in January-February 2006.  However, the number of closed sales decreased by 7.9%. 

February 2007 housing inventory is 5.2, which means that if no new buyers enter the market and no new sellers put their homes on the market, it will take 5.2 months to completely sell out of all homes available for sale now.   If you compare this inventory to February 2006, when the rate was 2.7, (meaning we would sell out of homes in 2.7 months), it’s easy to see how many more homes are currently for sale versus the number of buyers looking to buy.

So, is it wise for sellers to list their homes for sale now?  Due to outside circumstances such as job transfers, change in family status, or financial issues, many sellers don’t have a choice.  But even in today’s market, if a seller lists their house at or slightly under market value, (within $5,000),  the seller should get an offer on their home.  What sellers should not expect in our current level of market activity is multiple offers within days of listing.

My fee-for-service packages allow sellers to save money on the listing side of real estate commissions.  These savings, if passed along to buyers in the form of a lower sales price on the initial MLS listing, could get sellers a faster sale on their homes.  You can see full details of all of my fee-for-service packages on my web site, www.PointClickandPack.com.  I look forward to working with you towards a successful closing!  

With fee-for-service packages, sellers are able to choose the level of professional real estate services they need and pay the listing side of the commission accordingly.  Keep in mind that the standard buyer’s agent commission in Metro Portland is 2.7% of the sales price. 

My fee-for-service packages start with a flat fee MLS listing only, which typically appeals to sellers interested in selling for-sale-by-owner, and go all the way up to full-service, which has no up-front fee.  Full details of all of my packages can be found on my web site, www.PointClickandPack.com.  Click on the Fee for Service link on the Home page.

I look forward to assisting with your sale!

2720 SE Steele

Buildable lot. City encourages mixed use - commercial/residential. Could be manufacturing facility, retail or residential. Need to do half-street improvement with any development. Easement on west side of property serves businesses behind lot. No set-back regulations along easement - can build right up to it. Zoning height limit = 30′

Lot Description: Slightly irregular lot size. Refer to plat map for boundaries. Borders industrial zoning. Check with the city if you need industrial usage. Close to Reed College and Eastmoreland Golf Course.

See more pictures at www.PointClickandPack.com.  Click on the My Listings link.

Nobody wants to be a crime victim.  Here are some easy do-it-yourself weekend projects to make your Portland, OR home safer from intruders.

1. Install dead bolts on all locks. 

2. Install motion-detector lights in the driveway and/or on the front porch.  Pathway lighting is also an effective deterrent.  Remember that it’s more risky to break-in to a well-lit house than a dark house.

3. If you are going to be away from your home for an extended time frame, add timers to some of your interior lights.  Timers will turn particular lights on and off at specified times each day and will give anyone who is watching your house the appearance that someone is home.

4. Trim large shrubs at the bottom to make them less likely hiding spots. 

5. Install a peep hole in your front door so you always know who’s on the other side before opening.

6. Purchase a locking screen door and keep this door locked if you want to leave your front main door open to get some fresh air in the house during the summer months. 

7. Leave a car in the driveway if you will be away on vacation.  It gives the appearance that someone is home.

8. After purchasing a new home, change all of the locks.  You never know to whom the previous owner gave a key and then forgot that person had it.

For more safety ideas, go to www.cnn.com/openhouse or contact me today at www.PointClickandPack.com.  I look forward to working with you! 

With global warming becoming more and more of a threat, Portland home owners are beginning to make small changes in the ways in which they live to try to be more enviromentally-friendly.  Here are some energy-efficient facts for making your kitchen greener from www.cnn.com/openhouse.

1. Using a dishwasher is 35% more water efficient than hand washing your dishes.  

2. Cooking on a gas range is 50% more efficient than cooking on an electric range.

3. The most energy-efficient style of refrigerator is one in which the freezer is on the bottom.  The least energy-efficient style is the side-by-side.

4. If you purchase new appliances, look for appliances with “Energy Star” stickers, as these utilize energy-efficient features.  In addition, in Oregon, you will get a tax credit for purchasing these appliances.

5. Change all of your light bulbs to the new long-lasting energy-efficient bulbs.  These cost more at first but do last much longer than standard bulbs and they cut down on your electric bill.

For more energy-efficient tips, or if you’re looking for a new home utilizing environmentally-friendly materials and appliances, contact me today at www.PointClickandPack.com. 

Find out what your home is worth in today’s market.  For your FREE online market analysis, go to www.PointClickandPack.com.  I’ll email your market value to you within 24 hrs. 

Also, please visit my Fee-For-Service page to find out how you can save money on real estate commissions while listing your house on the Portland MLS. 

I look forward to assisting with all of your real estate needs.

According to last Sunday’s New York Times, foreclosures are starting to really hurt mortgage companies and the local real estate market.  Last year, lenders began offering “no documentation, stated income” loans to buyers with marginal credit or poor job history.  At the end of the year, the loan applications were compared with the borrower’s reported tax income and huge discrepancies were found.  In fact, the lending industry changed the name of this loan to “liar loans” because it was determined that so many borrowers had greatly inflated their incomes on the stated income loan application, some by as much as 50%.  Loans were indiscriminately handed out to borrowers, albeit at higher interest rates, and ultimately many of those borrowers have not been able to make their mortgage payments which has led to high foreclosure rates.

So what does all of the above mean for the real estate market here in Portland, OR?  First, it means that loans in the sub-prime market are going to be tougher to get.  Companies are no longer offering the no doc, stated income package and some borrowers will not be able to qualify for a loan with the more conventional forms of financing and with the need to provide income and employment verification.   

Also, it means that more foreclosure properties will be hitting the Portland market.  Are these good deals for future buyers?  Probably not.  Since the home owner typically has no to little equity in the house, future real estate buyers can only bank on housing appreciation to make the cost of a home affordable (or a good buy).  When you add in real estate commissions, foreclosure costs and repairs (since foreclosure properties aren’t typically in good condition), the cost of the house either needs to support all of these fees or be sold as a “short sale,” which means that the mortgagor agrees to take a loss in order to sell the house. 

The higher rate of foreclosures also will add more inventory to the Portland real estate market.  More houses on the MLS means more competition for all sellers.  Typically, this kind of competition will perpetuate a buyer’s market and could lead to prices coming down.

If you have specific questions about financing or would like to receive lists of foreclosed properties, please email me at phyllis@pointclickandpack.com.

As a real estate professional, relocating buyers often ask me to recommend Portland’s “best schools.” However, there is no such thing as a “best school.” Each school, like each student, is individual and has unique programs and specialties to offer. Having said that, there are a few publications and web sites that can help parents make the important decision as to which school is the best choice for their child’s needs. On my web site, I have included links to as many of the schools that have web sites as possible for your convenience.
Oregon Department of Education
Visit the Oregon Department of Education web site for information and reports about Oregon schools. Most of the reports are in PDF format and require you to have Acrobat Reader© installed on your computer to view them properly. You can download the reader, free of charge, at the Adobe web site.
Oregon School Report Cards
Each January, the Oregon Department of Education produces performance report cards for each school and district. The Oregon state legislature sets the rules and measurement criteria and then publishes the annual results in a report card format. Educational performance and improvement are the focus of the Oregon School Report Card rating system. Schools are rated on several measures including student performance, student behavior, and school characteristics. These measures are combined to yield an Overall School Performance Rating of exceptional, strong, satisfactory, low, or unacceptable. A full explanation of this performance system is available at the Oregon Department of Education web site as well as the report cards for each school.
Molly Huffman’s School Choices Book
Make sure you check out Molly Huffman’s book, School Choices in Greater Portland. This book covers all of the major public school districts in Metro Portland and the surrounding cities plus information about private schools and preschools.