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7 Things You Absolutely Positively Must Know If You are Buying a Home in the Greater Portland Market.
- You MUST be pre-approved by a lender. This process is painless, free and takes about a half hour. Many if not most sellers will not even look at your offer without a letter of pre-approval and anyway, you may not know how much house you can afford without talking to a lender first. Don’t wait until after you’ve “Looked around at the market a bit”. If you find that perfect home and the great price you do want to be able to make an offer—right? If you snooze you lose!
- Find a GOOD lender. Lending is the number one headache in real estate transactions once the offer has been accepted. Ask any agent. If there is going to be a problem with the transaction it will probably either be with the inspection or with the lending. Find someone who is experienced and who has a good reputation. I would avoid an Internet-only lender. These have been problematic at times and you will have no one’s desk to pound on if the loan starts to go bad. Your credit union might be a good source. I would avoid banks and use a mortgage broker. They have more flexibility and if one underwriter falls through in the middle of a transaction they may be able to find another source of funding without skipping a beat. Talk to a couple lenders to see who you are comfortable with. Email me at birchfield@equitygroup.com or call me at (503) 702-7254 for a free list of lenders that I have used with success.
- Many markets in the US have slowed dramatically but the Portland market is still pretty good, especially for properly that is priced properly. If you find that home you really like and the price is right don’t wait too long to make your offer. Properties that are well priced are still moving here and there is a good chance if that home is perfect for you it might be perfect for someone else as well.
- Will people take a real low-ball offer? Not as many as you might think. As of the first quarter in 2007 there is no reason for a seller to take an offer that is dramatically lower than market value in the Portland metro area unless they have to sell right away. Too low an offer might just anger a seller and put you in a weaker bargaining position. In greater Portland, we seem to be in a balanced market right now; not a buyer’s market and not a seller’s market.
- Have an inspection. That’s so important I’ll say it twice. Have an inspection. With new construction you might be able to avoid this but even then it is not a bad idea. Two reasons for an inspection: peace of mind and the possibility that you might make a BIG mistake. You really want to know if the attic is filled with mold or if the floor is eaten away with termites—don’t you? Pick a good inspector. The best ones have at least twenty years experience in the building trades. I have an inspector that I’ve used with good results. Email me at birchfield@equitygroup.com or call me at (503) 702-7254.
- Consider asking the seller for a home warranty if it is not already included. I recommend American Home Shield. The cost to the seller is negligible and it could save you big bucks in repairs down the road.
- Some buyers just like to call the agent whose name is on the sign. If they like the home they will just have that agent write it up. I do not recommend that. Get yourself a good buyer’s broker—someone with a few years experience in the business. They can be a great resource to you. A good buyer’s agent can feed you properties as soon as they come on the market. Consider using an agent that has an ABR® or Accredited Buyer’s Representation Designation. They have completed a series of study courses and tests geared specifically for representing buyers. By the way, if you use the agent on the sign they have to become a disclosed limited agent which means that when negotiations start they have to stand in the middle between the seller and you the buyer (contact me for a copy of the official brochure that explains agency). They will not be exclusively on your side of the table during negotiations. Your agent’s commission is normally paid for by the seller so it will probably not cost you anything. And please be loyal to your buyer’s broker. Treat them the way you would want to be treated. Don’t let your agent spend their time and effort to show you homes and then cheat them by using the broker on the sign or at the open house or your brother-in-law's aunt who just got her license and needs the money. I know that you want to do the right thing. And yes—I am available as a buyer’s agent (as if you needed to ask). Email me at birchfield@equitygroup.com or call me at (503) 702-7254.