1. Make an all cash offer

This is hard for most people to do, because we’ve become accustomed to going into debt for everything. Nevertheless, average people with average incomes are increasingly paying off their mortgages in full through financial discipline and hard work. You don’t have to be wealthy to aspire to and actually become debt free in a short amount of time and pay cash for a house.

2. Sell your current home before making an offer on another one

This can be an inconvenient experience, because you’ll have to live with relatives or rent a home during the interim, but it is extremely helpful for a number of reasons. First, if you have enough equity, it may enable you to make an all cash offer. Second, you won’t have any contingencies to tie up the new deal. It just makes for a clean offer, so if you can pull it off, do it.

3. Get preapproved with a mortgage broker, not just prequalified

Many buyers don’t know the difference between getting pre-approved and pre-qualified for a home loan. All too happy to have a warm body to show a house to, many agents don’t care enough to advise their clients on this.

Being prequalified for a home loan is sort of like getting those mass mailed postcards telling you you’re “prequalified” for a credit card. It simply means that, on the surface, you’re credit history and unverified income appear to qualify you for the loan, but the bank hasn’t necessarily seen all of your backup docs, tax returns, etc. Pre-approval means the bank has all the documentation and is ready to actually give you the loan. They just need an acceptable property for collateral.

4. If possible, get your loan from the bank that is selling the property

This is not always possible if you’re going to get pre-qualified before you even start looking for a home. But if you know you want to make an offer on a particular property, especially if it’s a short sale, anecdotal evidence suggest that you may have better luck getting the bank who has to sign off on the sale to say “yes” if you are taking out your loan with them. They may be writing down a bad loan the first time around, but if they get the deal with your loan, they are more likely to agree to the deal.

5. Tighten inspection timelines to 3 business days instead of the standard 10

This is an easy place to cut an entire week out of the closing process. Most inspectors have no problem getting their visit scheduled within 24 hours, and they often print their inspection report on the premises.

6. Have mortgage broker order appraisal 2 business days after offer acceptance

Ordering an appraisal can take time, and many mortgage brokers don’t want to do it until the end of the process so they have less money at risk if the deal falls apart. It’s not hard to find a mortgage broker who is willing and able to speed things up for motivated (and qualified) buyers. If you demonstrate your seriousness to close the deal, they will reciprocate and order that appraisal quickly.

7. Have certified funds to escrow prior to signing closing documents

This is something that should happen for all escrows. There is no good reason a loan officer can’t get certified funds into the escrow account before the signing. Waiting to the last minute is just asking for delays.

8. Don’t make any last minute credit purchases

Don’t even think of making any major credit purchase, especially by opening new lines of credit, once you’ve been preapproved. That will just raise questions and potentially impact your loan approval, causing serious delays. If your approval is already tight on the debt to income ratio, it could completely derail your loan.

The bottom line is that fast closings can and do happen, but you have to plan for it. Knowing a few tricks of the trade to can help your Portland real estate deal be one of the fast ones.

What’s the overall feeling of Portland real estate?  It’s stabilizing but has some distance to go before appreciation happens overall.  Buyers confident with their jobs are making moves that’ll pay off over time.  Big question is what’s going to happen as inflation kicks in and interest rates are no longer in the 4’s.  Hard to say for certain.  What drives home sales in Beaverton, Portland, Lake Oswego, Tigard and Hillsboro is mainly consumer confidence.  I doubt we’ll see much drastic change in prices or interest rates through the summer. 

Banks are still holding onto inventory and foreclosures are incredibly common so we’ll continue to see them in the MLS.  Houses for sale in Portland are led in price by foreclosures and short sales, nothing new here.  What is new is the amount of Realtors that are short sale certified and working with banks that are getting progressively better at dealing with offers, albeit, they’ve got a heck of a long way to go (banks).  80% of offers I write on short sales end up never closing.  Not saying to buyers that chasing them is not worth the effort but, rather, don’t get too emotionally attached to the property…

It’s a great time to purchase right now.  Prices are back to 2003 or earlier levels and interest rates are phenomenally low.  Investors should be paying close attention as cash flow numbers have never been better, at least in the 15 years I’ve been watching Portland real estate activity.  Rents are rising. 

Bottom line is that buyers can probably dilly dally through the spring but sellers are not gaining by holding off on the sale.  Hit the market with strong (not high) prices and you’ll net more overall than chasing prices downward.

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home in anywhere in the Metro Portland area, use our FREE Exclusive Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

Relocating to Portland, Oregon? We can help. Click here.

Dave’s Commentary on the Portland Real Estate Market:

• Listed home inventory took a slight bump up to 11 month’s supply, balanced market is 6
• Sale volume decreased over Augest by 25%, slight increase in listings
• Foreclosures are easy to find and continue to be heavy competition for sellers

Portland real estate continues to experience sliding prices.  Fantastic news for home buyers looking to score with 2004 prices in 2010.  Couple that with pheonominal financing rates and you’ve got a recipe for success long term.  FHA rates are still incredible at 4% and give first-time buyers their best option for low down payment.

Beaverton and Hillsboro real estate have seen slower sales rates now that school has started.  Projections are for prices to edge down slightly further by end of 2010, possibly another percent or two.  At the moment we’re looking at a 11 month supply of homes for sale.

Good news for landlords as rental prices are definitely on the rise.  It’s possible to purchase investment property in Portland and have it cash flow right out of the gate.  Unheard of in recent years.  Renters are having to scramble a bit to get the good homes.  Investors that keep rates slightly below competition will experience significantly less than a default 5% vacancy.

A recent investment property in Hillsboro turned over with a 9.2% cap rate.  Cash on cash return was over 10%, calculated with zero appreciation.  Wow!  Now is the time to get into investment housing around Portland, Beaverton, Hillsboro, Lake Oswego and other surrounding areas.

Sellers will continue to be frustrated with market performance and are best advised to incorporate staging and décor enhancing options to make that listing jump from the competition.  Realtors represent the market, not seller’s relationship with their equity.  Tough pill to swallow for sellers but the market will improve over time. 

Houses for sale in Portland are selling under the cost of construction.  This market will recover eventually and those whose purchase in 2010 will see a good appreciation over average home ownership time period.  Home ownership pans out on average when people stay in the house more than 4 years.

Call us and find out more about the Portland real estate market. We have specific strategies to guide both buyers and sellers. Find YOUR HOME WORTH now.

To search for your home in anywhere in the Metro Portland area, use our FREE Exclusive Home Search tool. For more information about living in Portland and finding your dream home, call Dave at (503) 789-7633, Toll Free (877) 629-5825 or email.

Learn about our Exclusive VIP Buyer Services. Contact Dave now. Make informed decisions; make smart choices. Call Dave now at (503) 789-7633 or Toll Free (877) 629-5825 ext. 7.

Relocating to Portland, Oregon? We can help. Click here.

Is a property priced competitively?  Pretty simple to answer by gauging response after being listed in the Multiple Listing Service (RMLS in Portland).  A reasonable amount of traffic is having a showing 2+ times per week.  If houses are not receiving that then buyers are buying something else.   Quite frankly, they aren’t even seeing enough value online to warrant a tour.

Improving value can be lucrative and as simple or complex as sellers would like.  Simple means consulting a staging professional to give decorating tips or completely stage a home.  Vacant homes benefit significantly from this.

Let’s take a look at a current listing example in Hillsboro at 1234 Oleander Ln.  MLS #10066603

This particular home was done originally in white, interior and exterior.  Owners made several improvements to both color and finishes after consulting with Maureen Bray at Room Solutions, 503 246-1800

Warm neutral tones were used in the living room and family rooms.  An old fireplace insert was removed and the mantel repainted white.  New windows were installed, eliminating the single pane with storm aluminum frames.  Laminate flooring was replaced in the dining and family room.  Deck was refinished and home staged.

While sellers of this home were gung ho on remodeling and upgrading the home it’s probably fair to say that most homeowners are not that ambitious.  Look at the staging improvements alone.  Color and warmth were added to an otherwise blank canvas.  Buyers can see themselves living there and that’s the difference.  Sellers will recapture their improvement investment here and sell quicker.

Buyers are very superficial.  Change perception of value and you’ll get an offer!

Financing options during boom years of 2005 and 2006 made use of loser lending guidelines like the ever popular 80/20 loans which eliminated mortgage insurance.  Those days are in the rear view mirror.  Mortgage insurance is pretty much a requirment today for anyone putting less than 20% down.  Although no buyer ever wants to pay these extra fees they are a necessary evil and insure lenders against default.  Portland’s entry level market is sustained by first-time buyers coming in with minimum down.  If we went back to yesteryear requirements of 20% down minimum the market would be crippled. 

New FHA loan guidelines:

• Mortgage Insurance Premium (MIP) increase from 1.75% to 2.25% of loan amount
• FICO minimum (credit score) 580 to qualify for 3.5% down payment
• Seller credit to buyer’s closing costs down from 6% to 3% of purchase price
• Mortgage Insurance Premium payment shifted some cost from up-front MIP to annual MIP

What does this mean for the Portland real estate?  Since first time home buyers drive the entire housing model, without these there are minimal upper end sales.  Move-up buyers are critical to the cycle.  Looser lending guidelines generate more buyers, tight guidelines eliminate qualified buyers.  Changes mentioned above are tighter and will have some affect on Portland house sales. 

Most area home buyers come in with only 3.5% total cash (the down payment) for their first home.  Statistically that’s just reality.  Sellers often are requested in the offer to pay buyer’s closing costs (loan costs) which keeps cash out of pocket to a minimum.  Figure $200,000 houses for sale in Portland will cost buyers closer to 4% of purchase price, or $8000.  With new seller contribution limits going from 6 down to 3 percent this leaves buyers coming up with the difference.  More money out of pocket is now required to get into a house, potentially.

Tightening restrictions cautiously and slowly is key to not rocking the already fragile housing market.  My guess is that overall we’ll see minimal affect on Portland real estate in general and it’d take a micro-economic guru to place figures on such changes.  Yes, home buyers may have to come up with slightly more money but we’re only talking another thousand or two and if cash is really that tight buyers may want to build up a bit more reserve before purchasing anyway.  No one wants to be house rich and cash poor, right?  Something to consider…

• House Prices around Portland

Compare today’s prices to the last couple of years.  Portland home appreciation rates of 5% are historical averages but declining values are very rare trends.  Projections for our economy continue to be centered around mid 2009 for a turn around.  The local housing market will definitely pick up as soon as people’s perception changes.  After all, perception is reality.

• Renting vs. Buying

Just the law of supply and demand.  Areas like Hillsboro, Beaverton and NW Portland will continue sustained population growth as large companies move in high-tech locations on the west side.  These eventually fuel the need for housing.  If people aren’t buying, they’re renting.  Rental supply shrinks and price goes up.  Real estate buyers are fewer and prices of homes for sale in Portland go down (like we’re seeing now).

• Huge selection of houses

Right now we’re facing an 11 month supply of homes.  That means if no additional homes listed in MLS then the current rate of sales would take 11 months to deplete our inventory.  This is higher than in recent history giving buyers a huge advantage.  Sellers are happy to get an offer!

• Homes are a forced savings plan

Tying yourself to a mortgage is a form of disciplined investing.  Everyone has to live somewhere.  Choosing to own a home can really pay off in the long run.  Generally speaking rents and real estate prices go up.  Your mortgage payment stays the same.  The earlier you start the better off you’ll be due to equity build up.  My first house payment 12 years ago was $531/mo.  Rent for that same house now would be at least $1000.

• A Look Back at House Values

Who hasn’t talked with a parent or grandparent and heard about the good ol’ days of house prices and payments?  Timing a home purchase is optimal but it’s not likely that you’ll be successful.  Average appreciation for homes in Beaverton, Hillsboro, Tigard and Portland are similar are better than average US numbers.  Our current housing market situation is temporary.

• Investor cash flow

It’s not hard to find an investment home in Portland’s metro area.  Cash flow is looking better than it has in years.  Several homes in decent Beaverton and Hillsboro neighborhoods in particular offer great investing opportunities.  Highly likely that properties can cash flow with 20% down.  Real estate foreclosures are running high and, if you can tolerate the wait, short-sale situations offer fantastic value!

Talk with me today about buying or investing in Portland Oregon real estate.   Visit www.MaxwellSinclair.com for information and search Porland MLS listings.

It’s interesting.  Listen to the local and national news coverage and you’d swear that the sky has fallen in the Portland real estate market.  Just this week I ran into 3 examples of properties where home my buyers saw value.  Two listed homes were short sales and already had offers on them within days of input into RMLS.  The third went into a sale pending status before they could even look at the house but RMLS had not yet been updated.  My clients were bummed.

This situation is not uncommon in today’s market.  Countless buyers are sitting on the fence waiting for that great bargain to come along.  Once it does, several of them jump on the opportunity and force a multiple offer situation.  Is our market really that bad?

Portland’s housing market is experiencing a significant adjustment

Home prices have slid in all areas.  Higher end locations like Lake Oswego, West Linn and Forest Heights are seeing adjustments back towards pricing seen in 2005.  Many of the homes in these areas are listed in the $600k price range.  A quick look at tax records will show assessor’s values over $750k.  Not that too buyers should be concerned with what the county thinks but rather note that home prices are adjusting from market peaks.  Looking at tax statements is one key way of evaluating home prices.

Prices have decreased 10% this year alone.  Recently I evaluated a Lake Oswego home for sale.  Sellers purchase the home in 2001 and were looking to relocate.  Taking a broader look at appreciation rates showed a tradational 6% overall increase (comparison of purchase price in 2001 to today’s potential sale price).  Buying in Lake Oswego proved to be a decent investment overall.

Unrealistic sellers need to lower price in order to compete

A huge factor in what’s driving down Portland real estate prices is the shear amount of short sale and foreclosed upon properties.  Banks actually taking homes back through foreclosure are very few, relatively speaking.  Owners who have the fore site to see their financial position may find it beneficial to do what’s known as Deed in Lieu of Foreclosure (give their house directly back to the bank).  This allows banks to unload homes quickly through the Portland MLS.

Whatever method is used to obtain the property doesn’t really matter.  Point is that bank owned real estate will be marketed at an aggressive price.  Benefit is to the buyer.  Buyers purchase properties at very attractive prices and are able to close within a standard 30 day period.  Short sale properties very often take 3 months to actually close, if they ever do.  Bank owned (foreclosures) and short sales are competing against the average seller, driving down their market value.  Sellers have to step up to the plate and lower their price to stay competitive!

Search all Portland Real Estate for sale at www.MaxwellSinclair.com

Here’s a bit of education that the average shopper may not be aware of.  Portland’s Realtors input listings of homes for sale into RMLS (Regional Multiple Listing Service).  Regardless of which company or agent lists the home information will be input into the same database, RMLS.  All sites showing on the results page from search engines get their data exported from RMLS.  You’re seeing second hand information.

What’s wrong with second hand information?  Nothing for the most part except that it’s not always complete.  Depending upon which website you’re searching results can differ slightly and in the end a house or two could be missed.  I’ve witnessed this numerous times over the years.  While some searches are very accurate some are out to lunch.

One of the best ways to make certain buyers end up with a complete list of houses available is to hook up with a Portland real estate agent.  Agents pay for access to the RMLS database and set up search parameters based upon input from their buyers.  Search results can be sent automatically as new properties hit the For Sale market.  Benefit is that you’re getting information directly from the horse’s mouth rather than second hand.

Additional searching on the buyer’s end is incredibly common, kind of human nature.  Outside of Craigslist or a For Sale by Owner site it’s all redundant searching.  Even these two websites generally have their listings already on RMLS.

Many buyers will insist on continued searching on their own, however, convinced that their agent could not possibly be sending all the listings.  When agents get specific information the search is set up based upon buyer-set parameters.  As long as given information is accurate, so are the search results.  But, garbage in, garbage out.  Problems occur when requests for house parameters are too specific.

The best thing you can do?  Give your agent a broad spectrum.  Instead of saying 1990 and newer homes only say 1985+.  Instead of saying 1800 sq ft 3 bedroom 2.5 bath, say 1700+ sq ft and leave it at that.  Much better to weed through a larger list of candidates and find that there’s a house with 2 bedrooms and a den that will potentially work than miss out.

Map searches of properties for sale are the worst.  A good number of listings can potentially not show up due to a couple of reasons; data export parameters from RMLS and inaccurate location information input by the listing agent.  Recently agents are required to verify gps mapping location on any new listing.  Some agents plain just don’t bother to make sure map location is correct.  This explains why clicking on mapping links occasionally puts a selected house in a completely different city.

Map searches are fantastic for getting an overall feeling of what sort of house prices are available in a specific area and getting ball park ideas.  Freely browse sites and search online for Portland homes for sale until you’re serious.  Then contact your agent to get the latest up to date selection near your target area.  You’ll be assured of seeing all listings!

Happy searching