Buyers on the Hook for Thousands

Have you ever heard of FIRPTA?  Probably not.  If you're buying or selling a home in the US, you need to be at least slightly aware of it.  FIRPTA stands for Foreign Investment in Real Property Tax Act.  Have you fallen asleep yet?  This is a topic that I could bore you to tears with and make you want to never read this blog again!  Obviously I have no intention of doing that.  But I want to at least let you know the basics so you don't get taken for a ride.

When someone is a foreign investor (the short answer meaning that they aren't a US citizen) and they are selling property in the USA, they may be subject to FIRPTA.  The bottom line is the federal government wants to make sure that they can still get taxes from that seller, which is next to impossible if they don't live in the US.  This means that escrow may withhold up to 15% of the sales price of the home from the seller for FIRPTA.  Not 15% of the seller's profits, but up to 15% of the sales price.  Wait! Don't lose interest yet, hang on one second.  This means that Ms. Seller, if you are making a $30,000 profit on that home and the government's percentage is $50,000, then to close that transaction, you're going to need to come up with an extra $20,000 to set aside with escrow.  Wowza, now tell me that's going to be no big deal.  

I can see you starting to get blurry eyed and not caring about this already, but wait!  The responsibility of FIRPTA lies with the buyer.  As a buyer, you want to know if the seller falls under FIRPTA so that escrow, the sellers agent and your agent can all do their jobs and make sure that you aren't on the hook for thousands with the federal government.  If you're a buyer, YOU could be responsible for those taxes if the seller doesn't pay the feds!

What do you need to do?  As a buyers or a seller, talk to your agent about FIRPTA at the beginning of a real estate transaction.  This can all be a non-issue as long as the communication happens from the get go.

What Do You Want?

One of the interesting things about real estate is the emotions that can come into play.  One might think that it's a business transaction and it's all about the numbers, but the reality is that emotions often override our intentions to focus on the deal. 

Sometimes both buyers and sellers will lose sight of what the goal is and get distracted by the emotions of it.  It's normal to focus on how we feel, what's making us frustrated or angry, instead of focusing on what it is going to take to solve that item.  It's also common to surround yourself with how you're feeling and not take a moment to consider how the other side is feeling.  It can be helpful in real estate to think about what you want, and then to also think about how that will come across to the other side. 

Every transaction will have emotional ups and downs.  Every transaction will have problems of varying degrees, some big, some small.  The thing to remember is not to sweat the small stuff and to focus on what your actual goal is.   Remember that.  What is your goal?  What do you actually want?   

Don't let emotions sway you away from your goal.  Sometimes we can be our own worse enemies.  We get so focused on the fact that we think someone is being unfair and nit-picking an item, that we lose sight of the details, how much that item is actually going to cost and is the cost worth it.  It doesn't do anyone any good to argue over a small item when that small item could actually prevent the buyer from getting the house they want and the seller from selling their house that they need to sell.

Have you ever heard an adult cry "that's not fair!"  I tend to find that interesting because by adulthood, we should all know that life isn't fair.  With any item, no matter what it is, don't focus on the fairness of it; instead remember "What's my goal and what can I do to achieve that goal?"  If you stick with a goal oriented focus, then any problem can be figured out. 

Portland's Growing in 2017

Everywhere that you turn in real estate news right now, people are talking about their forecasts for 2017.  When you're looking at real estate, you really want to focus on your area specifically, because Portland, Oregon is much different from Port Allen, Louisiana.

Here are some of the basics that we are expecting to see in 2017.  Interest rates are expected to rise.  Some are saying that a 30 fixed will rise to 4.75%.  Nothing crazy, still in the historically low range, but rise non the less.  This may cause some buyers to back out of the game.

Millennials are expected to be a big category of home buyers in 2017.  We have seen a lot more multi-generational home buyers with families looking to buy a home for two or more generations of the family to live in.  Even though this is still a strong trend, Millennials are likely to strike out on their own, especially towards more urban living like Portland.

Tiny homes are becoming more popular.  With shows like "Tiny House, Big Living" and "Tiny House Nation", more people are becoming aware of the benefits of living small.  This is a trend that I expect to continue in 2017 and grow in popularity in Portland.

Inventory for the past few years has been at amazing lows.  Basically anything under $350,000 in the Portland Metro area is still flying off the shelves.  New construction is picking up, which will help with the inventory, but I expect the Portland area to still have a shortage of inventory for a while.  As long as inventory is low and demand is high, home prices have no where to go but up.  When buyers are forced to get into bidding wars and you've got 5 offers in on the same house, people will go much over list price to get the home they want. 

What will 2017 hold?  Only time will tell.... but for now, it's certainly the time to sell!

South Hillsboro Project - Update!

By now you've probably heard of the South Hillsboro Project.  It's the section of Hillsboro south of TV HWY, between 209th and 229th, that BIG area of farmland.  It's 1400 acres that will soon be everything from apartments, to senior living, condo and townhomes, detached homes, as well as retail, offices, even schools and parks.  South Hillsboro is going to have it all.  I posted a blog article on it about a year ago, check that out here.



Check out the full map and all the details at the City of Hillsboro.

South Hillsboro, otherwise known as SoHi, is going to have 8,000 dwellings!  That's likely to be over 20,000 people!  Fifty-seven percent of the homes will be single family detached homes with lot sizes ranging from 3,500 square feet to 10,000 square feet.  Twenty-two percent will be single family attached homes (condos and townhomes) and 21% will be multi-family homes. They will be putting in three grade schools, a middle school and possibly a high school.  It's going to be a mixed use community, kind of like Orenco Station with commercial and residential together, a focus on high performance homes and access to public transportation.   

They are partnering up with Energy Trust of Oregon for cash incentives, Solar World for solar kits to builders at reduced costs, Oregon Department of Energy for energy tax credits, PGE for Nest Smart Thermostats Pilot Program and electric vehicle ready charging infrastructure and Earth Advantage for technical assistance outreach and training.  Wouldn't it be great if they could get those new glass tile roofs from Tesla! 

A couple of the developers are Newland Communities and Pahlisch Homes, but there are many more.  Before any of the homes can be built, the intersection at Cornelius Pass has to be completed.  This means taking the current intersection that tees at TV Highway and punching it over the railroad tracks and into the new SoHi development.  Once that is completed, they'll be able to start on construction.  Here's the current expectations for the first five years of construction.  Keep in mind that this timeline has evolved more times that we can probably count, but this is what the current plan is.

First 5 Years:	2017	2018	2019	2020	2021	Total
SingleFamilyDetach	226	265	285	202	202	1180
Condo/Townhomes	148	160	164	181	181	834
Apartments	124	123	123	108	108	586
Retails/Office	27,000	26,000	26,000	23,700	23,700	126,400

With 500 residences scheduled the first year, this is going to increase the housing market considerably! 

In order to have this new section of Hillsboro, the city is going to be improving and changing some of the intersections in that area.  In 2017, the intersection at 229th and TV Highway, by the Fred Meyer and Key Bank, will be a cul-de-sac south of the railroad tracks and will no longer go across TV Highway.  The intersection at 209th and TV Highway, which is currently very congested, will get widened in 2019.  They are also planning on widening Cornelius Pass north of TV Highway to Johnson in 2019.  Finally, the intersection at Century and TV Highway will get worked on in 2020. 

The South Hillsboro Project is going to completely change the face of Hillsboro.  Basically they are adding a small town into an already existing one.  It sounds like they are going to have high standards and make this a community that anyone would be proud to live in!  There's even talk of a Street of Dreams in SoHi too.  I can't wait to watch the community grow.  Next time you're driving down TV Highway between 209th & 229th, look at the farmland to the south and you'll see that the dirt work has started!

Interested in more?  Check out my live video:

7 Rules When Shopping For a Home

We all want to be courteous and follow the rules when looking for that perfect home, but sometimes we don't know what's the right and wrong thing to do.  The first thing that people often fumble on is taking off their shoes.  Remember, when you enter a home that's for sale, you are just one of many people that will be touring that home.  That's a lot of foot traffic and to keep that home looking great, take those lovely shoes off!  Here's the exception - if you look around and the carpet has more stains than a frat house, then this rule doesn't apply.  Leave your shoes on and protect your socks!

To open or not to open, that is the question.  Buyers frequently ask me if they can open that closet door, or if they can look into the pantry or kitchen cabinets.  The answer is yes!  As a buyer, it's important to understand the house that you want to buy and that means all the little spaces too.

When deciding to walk into the backyard, look first to see if the grass has any landmines you need to avoid.  Just because you don't have a dog and have a spotless yard, doesn't mean the sellers are in the same situation.  The last thing you want to do is step in doggie doo or even worse, track it back inside the house!

Be careful of what you say.  I often hear clients talking about what they want to pay for a house or other sensitive information in places that might be overheard by a neighbor or even the seller themselves.  It's best to hold off on sensitive conversations until back in the car or at the Realtor's office. 

Leave no trace behind.  You know the old saying when you're in the woods, that you should pack out what you pack in? It's similar for home shopping.  When you enter a seller's home, you don't want to leave any of your personal belongings or trash.  I can't tell you how many times I've seen people almost leave their cell phone behind!

Here's the question that people are usually embarrassed to ask.  Can I use the restroom?  The answer is yes!  No one expects you to hold it all day while you tour home after home.  However, check to make sure it works first.  There's nothing worse than using the restroom, only to find out that the water has been turned off or the plumbing is broken.

Last, but not least, be careful where you walk inside and out of a home.  If that deck doesn't look like the most stable piece of craftsmanship ever, then be careful walking out on to it.  It's not your home, so you don't know where the tricky spots are; you want to watch out for the rickety handrail or the steps to the basement that look like they might not hold the weight of a fly. 

Shopping for a home can be endlessly entertaining.  Knowing how to avoid the basic mishaps will keep you having fun and protect the seller's home at the same time!

Think Twice Before You DIY

I love watching the DIY Network, for the uninformed that's Do It Yourself.  I could watch it for hours and get a few neat ideas of things to DIY, but most of all I like laughing at all the ridiculous things that people do.  I'm not an electrician, nor am I a plumber, so I'll never try to replumb my bathroom or rewire my kitchen.  It's important to know one's limitations, mainly because I don't want to fry myself or flood my house.  I also happen to know many good contractors who can professionally do these things for me!

Before you DIY, consider this helpful TRICK.  Time.  Resale.  Insurance.  Cash.  Knowledge.  Do you have the time to do the project right?  Think this one through realistically.  However long you think this project is going to take, double it.  DIY projects can be a pain in the-you-know-what and they always take longer than you expect. 

If you do it yourself, is it going to effect the resale of your house later on?  When you go to sell your home, do you think the buyer's inspector is going to call out any of those DIY projects as not being done correctly?  Or what happens if you do an addition that needs permits and you don't know it at the time, so you fail to get the permit?  That is probably going to cost you when it comes time to sell. 

Insurance is one you may not think about, but what happens if you accidently flood your house while doing plumbing fixes or hurt yourself while trying to use a saw?  You laugh now at the ridiculous nature of this, but it could happen!

Cash in the bank is not only necessary, but you're also going to need more than you think.  Unexpected things come up in any project, just ask a contractor.  If you're trying something for the first time, you're more likely to have unexpected things come up because it's all new to you.  If you are going to take on a project yourself, allow for extra money in your budget to cover for the unexpected.

Last but not least, do you have the knowledge to actually do this project?  I'm not a cabinet maker nor am I the best mathematician on the planet.  I know enough to know that accuracy in measuring is paramount and you know what I would never DIY?  Kitchen cabinets.  I'd leave that to the professionals. 

DIY can be an excellent way to save money.  But make sure to evaluate the TRICKiness part of your project before you get started!  If you do decide to take on that bathroom make over, think about donating that old bathroom vanity to Habitat for Humanity.  It's a tax write off, you don't have to pay to trash it and it could help someone in need. 

Now for a good laugh, check out these DIY fails of DIY gone wrong, oh so wrong!

Style Matters - What's hot in 2016

One of my favorite things about my job is getting to see all sorts of homes, with every type of floor plan and decorating style.  It's fun to observe what works and doesn't work.  There are the obvious no-no's that we all could point out - like don't paint rooms in hideous colors or have so much furniture in a room, that you practically have to walk through it sideways.  However, focusing on positive ideas to freshen up your home are fun thoughts indeed!

Caught in the center of attention lately are three things: eccentric lighting features, barn doors and the mix of combining earthy materials like wood, metal and stone.   All you have to do is go to this year's Street of Dreams in Tumwater at Pete's Mountain and you will see these themes all over each of the five spectacular homes.   I was in awe at all the unique lighting features throughout the five mansions.  It was almost like they couldn't stand the thought of having a simple ceiling light.

 

Each of the homes used track style barn doors in various innovative ways.  We've seen these becoming more popular and often used as closet or pantry doors, but now they are edging into every room of the home.  They are the primary doors of bedrooms, or right at the top of a grand staircase separating off the den, looking both stunning and functional.  If you've been thinking about changing out a bedroom door, why not think about a barn door? 

 

Last, but not least, I've always been a fan of mixing different types of styles or materials.  There's something about having stone and wood together, making each one better than they would have been by themselves.  Anytime you can bring the warmth of wood and combine it with the crisp lines of metal or take the jagged edges of stone and tie them in with big strong beams, the result is lovely! 

 

If you want more ideas, head on out to the Street of Dreams.  The name very much implies where your mind will go.  You'll be dreaming of all the unique ways to dress up your home!

   

Summer Selling Tips and Tricks

If you're thinking of selling your home this summer, here are four things to do that could help your home sell fast and at a price that sizzles!

Tip one, the week or two before you list your home, have a garage sale.  A garage sale is not only a great way to de-clutter your home (because too much stuff is never good), but it's also a great way to get the word out that your house is for sale!  Make sure and chat up the people who come through the garage sale and let them know that your home will be listed soon.  Have your realtor's card handy (keep a stack ready), so that you can pass them out to anyone who seems interested in your home. 

Second tip, water your lawn.  You don't have to have a lawn that's right out of HGTV, but you do want to make it look like you care.  Keep it green and mowed!

Third big tip, make your yard just as inviting as the inside of your home.  Even if you aren't a big gardener, plant some flowers (and don't forget to water them).  I know you won't be around to benefit from planting a garden, but prospective buyers love it!  Who wouldn't love moving into a new home that already has some tomatoes growing.  Summer is the easiest time to make your home have great curb appeal!  

Lastly,  keep your home cool!  Buyers are out seeing lots of homes and it can get exhausting, especially in the summer heat.  Let them experience a cool retreat when they open your front door.  If you have AC, keep it at a cool, inviting temp.  If you don't have AC, open the windows in the evening and the morning to let out the warm air and let the cool air flow in.  Keeping buyers pleasantly cool while they tour your home keeps them comfortable and more interested. 

Keep your cool and you too can sell your home with ease this summer!

Do you need a Realtor®?

The real estate market is speeding along, homes are flying off the shelves and people sometimes ask "why do I need a real estate agent?"  So, why do you?  Why not just try and sell the home yourself?

 

There are all sorts of boring stats that I can throw at you (some of which I've thrown at you before), but I actually want you to read this article and I fear that stats will just make you skip right over this and on to something more exciting.  The nuts and bolts of it is, do you know HOW to sell your home?  Do you know all the steps that are necessary to keep yourself out of trouble?  A Realtor® does more than just putting up a for sale sign in your yard.  

It's a Realtor's®  job watch out for you and make sure that you cross all your T's and dot all your I's.  I know all the forms and documents that you need to deliver to the buyer's agent.  I know each and every deadline that is important to both send and receive things by.  It's my job to watch your back and make sure that if the buyer doesn't get their repair addendum in on time, that you don't have to pay for any unnecessary repairs.  
 
A Realtor® not only does research on what your home can sell for, by looking up details on past comparable sale prices but also weighs out condition, location and amenities that can sway the flat numbers.  Trying to determine the value of your home by going it alone, or using Zillow, can be a huge mistake.  Huge.  Did you know that Zillow admits that they are off by more than 6.8% on half of their estimates in the Portland area?  That means that if you have a $400,000 home, Zillow's estimate of value could be off by more than $27,000!  That's a pretty big margin of error.  I hope you aren't using Zillow to estimate the price of your home.  I use real world variables to find the value of your home, verses a computer that is just calculating hard numbers and not taking into account any of the variables that can greatly move those numbers around.  As a real estate professional it's my job to help you look at what your needs are and how different pricing strategies can get your needs met.
 
Besides the paperwork, the pricing strategies and the research that a Realtor® does for you, what else do they do?  A Realtor® puts your home in the RMLS, making sure that any and all buyers see your home.  What good does it do to price your home right, if no buyers can find it?  You don't want to rely on Craig's List and having people drive by your home to see the for sale sign in order to know your home's for sale, right?  Of course not.  You're not selling a toaster, a VCR or an old Elliptical that you don't use anymore.  You're selling your home.  This entails a whole different marketing strategy.  And a Realtor® is just the person to make sure you get it right, the first time.
 
I hope that I've helped you brush away any thoughts of giving it a go by your lonesome first, because let me tell you, in real estate, first impressions count and count big.  Putting a house up For Sale By Owner and then realizing a month or two later that you're out of your league and need a Realtor's® help, well shoot, you've just given the public two months of a wrong impression of your house and there's no erasing that!
 
Going back to the beginning, if you're the type that needs stats and lists to recognize the benefits of a Realtor®, well I've got you covered too! Give me a call or drop me an email and I'll get you all squared away! 
       

2016 Market Trends - Oregon is HOT HOT

Ever wonder how Oregon's real estate market compares with the rest of the country?  Sure you do!  We all know that the local real estate market is hot right now, but so is it nationally.  Almost the entire country is expecting good growth within the year for home prices.  Some states are better than others, but Oregon is killing it! 

According to the Realtors Confidence Index, Washington, Oregon and Colorado are expecting 5% to 7% growth in home prices in the next 12 months!  Just look at that map, wow!  Anyone else thinking what I'm thinking about what those three states have in common?  Haha, who knows if that has anything to do with it or not, but it's great to see strength in Oregon!

Realtors Confidence Index, March 2016 Survey of Realtors.

Not only is excellent growth still expected for the year, but Oregon is among the top of the USA for speed of home sales.  Oregon, Washington, Colorado, Kansas, Minnesota, and Alaska are all at 30 days or less for median days on the market.  Interestingly enough, most of the east coast is sitting longer on the market, median time period is 60-90 days.  What does this mean for you?  Be confident in Oregon's real estate market!

Read the full article from the National Association of Realtors here.

Is Oregon in a Real Estate Bubble?

© Judy Ben Joud | Dreamstime Photos

Have you been wondering if we are in a housing "bubble" and will that bubble pop?  As home prices keep rising, it's a question that has been raised often. 

Here's a simplified look:  In the pre-2008 era, home prices were going up and up as more people got into the game and loans were being given out like candy.  Then towards the later part of 2008, when home prices started declining, those that needed to refinance to avoid the higher interest rates of their adjustable-rate mortgages, found they couldn't.  What came next was people starting to default on their loans. 

So are we in that same pre-2008 zone again and is another crash coming?  First let me say that I am not a mystic, not into parrot astrology, nor do I consult the spirit world.  I do not know what the future holds.  That being said, I think there are some differences between now and 2006.  First, lenders aren't giving out loans to anyone with a pulse.  Are there some loans types out there that are a bit risky, yes.  But are the majority of loans being given out sound?  I think they are doing a much better job now of keeping stronger lending practices then they were doing pre-2008.

The second different between then and now is the pre-2008 demand was due to the whole loans-being-given-out-like-candy thing.  Whereas now we have a huge demand because the supply simply isn't there.  Builders aren't keeping up with the pace that buyers are purchasing properties.  They are struggling to find buildable land that is profitable to build on.  Without enough new construction homes, buyers are left to spar over the resale homes.  Sellers just aren't jumping into the market fast enough to keep up with all the demand that's coming from home buyers who are chomping at the bit to buy! 

Another factor that makes some think that the real estate market is going to stay strong is the fact that the job market is super.  Unemployment in Oregon is at all time lows.  Then you've got the rental market.  Rents are skyrocketing, leading many renters to wonder why they should be paying their landlord's mortgage, when they could be paying their own.

As people keep moving to Oregon in droves (because it's amazing and who wouldn't want to live here), as long as interest rates stay at lower levels and until new construction can catch up, I think you'll continue to see this strong sellers market.

Inventory in Washington County is Ridiculously Low

One of the hardest things as a Realtor right now is getting buyers in to see homes before they go pending.  This is because as soon as a home comes up for sale, it's getting massive interest and has buyers putting in offers as quickly as they can.  It is not uncommon for homes to go pending within the first three or four days.  For buyers, this gets real frustrating, real fast.  For sellers, it's the dream!  Sellers are getting their homes sold fast and often times, above list price.

Washington County, as well as the rest of the Portland metro area, is crazy right now.  Take North Plains, there are only eight active listings for homes under $350,000 (the hottest price range).  Of those eight listings, four are resale homes and the other four are new construction.  In all of Hillsboro, there are only 17 detached homes for sale right now under $350,000.  Seventy percent of those homes have been put on the market in the last month, many within the last week.  That's how quick the market is moving. 

What does this tell you?  If you have been thinking about selling your home, now is the time!  There is very little competition and you have the potential to get multiple offers on your home.

Why NOW is the Right Time to Sell

Okay, the holidays are finally behind us.  We were so busy with holiday get-togethers, shopping and end of the year activities that December just flew by!  Now that 2016 is here, let's get our act in gear. 

Why should you think about selling?  Because there is nothing out there in the inventory!  Well, "nothing" is an overreach.  There are some homes out there, but they are flying off the shelves and are pending before you know it!  Right now in Washington and Columbia counties, the average months supply of listings is one month for anything under $500,000!  That is incredible!  It means that if no new homes came on the market we would be out of any homes under $500,000 in a month!  Crazy!

 

What we are seeing in the market is that buyers simply don't have enough homes to choose from.  Often times sellers that price their home at market value are having multiple offers submitted on their home.  A single buyer can put in anywhere from two to five or even more offers on different homes before they finally get one accepted.  Only one offer on a house can be accepted; so buyers are getting rejection after rejection when another buyer offers more. 

This leads to frustration and why is buyer frustration a good thing for sellers?  Because when a buyer keeps missing out on the "perfect" home, their next offer goes even more over asking price, because they don't want to miss out on yet another perfect home. 

To sellers, this means that offers received are going up.  If a buyer learns that there are already five offers on a home, if they want to submit an offer, they know that in order to win they are going to have to go much over asking price.

Simply put, now is the time to sell.  Get your act together for 2016 and you just might be able to capitalize on the crazy market that is the Portland area!

Yurts, School Buses, Treehouses, Oh My!!

One of my favorite things to do as a Realtor is previewing homes.  I love seeing different ways of living, unique floor plans, fantastic views and all the different types of character that homes can have.  The fun side of real estate is trying to picture life in all of these various types of homes, and boy do I have some fun ways of living to show you!

Yurts on Pinterest

Ever thought of living in a teepee (also spelled tipi or tepee)?  Probably, when you were young, but there are actually people who live in them as adults.  More popular than real life teepee living is living in a yurt!  A yurt is a round structure with a simple post and beam construction that is usually fairly easy to set up and take down.  They tend not to impact the environment much, are relatively inexpensive and can be constructed in places where it wouldn't be feasible to build a more typical home.  Pacific Yurts Inc. sells a 706 square foot yurt for $10,785.  That's about $15 per square foot! 

Skoolies on Pinterest

Probably when reading the title of this blog entry you did a double take on the words "school buses" - but sure enough, there are people that remodel school buses and turn them into living quarters!  They are called "Skoolies" and are becoming quite the conversation topic!  Even the Oregonian has written an article on them.  You can find everything on-line from how-to-plans to already completed Skoolies.  The price range to build a Skoolie runs from $10,000 to $30,000 and up.  I'd say these yellow buses certainly qualify as alternative living! 



Photo from Ladyinterior.com

Finally, if a yurt or a school bus doesn't inspire you, then maybe a tree house will.  Popular on TV are shows about tree house living.  If you've ever had a dream as a kid (or an adult) to live in a fancy tree house, I highly recommend checking your local listings to find Tree House Masters.  The cost to build a residence in a tree is about $65,000-$85,000.  Read more about a real life tree house experience.

Everyone should be able to find the home of their dreams.  For some people, that may be a home with a white picket fence in the suburbs, for others it may be a condo in the big city.  Don't be afraid to look for something a little different, maybe some land in the country where you can put up a yurt!  Find your home, wherever your dreams may take you!  

Rental Prices Going Up, Up, Up!

© Peter Gustafson | Dreamstime Stock Photos

Are you currently renting?  If you are, I'm sure you've noticed rental prices increasing.  If you've tried to find new housing to rent, you've likely had trouble finding places currently taking applications, let alone finding a vacancy in a decent place that you would actually like to live.

As of August 2015, average apartment rent within 10 miles of Portland was $1516.  According to Rentjungle.com, the average apartment rent over the last 6 months in Portland has increased by $198 (15%).  If you're like most people and are on a budget, that 15% increase can really cramp your style.  We've seen evictions coming left and right because landlords are realizing that they can get high rents for the same properties.

When we are talking about high rent prices and a shortage of available rentals, the obvious next step is to think about buying instead of renting.  If you're paying $1500 a month in rent, in one year you will have paid $18,000 towards your landlord's mortgage; in 5 years you will have paid $90,000!  If you've read my previous posts, you know that an average home's value doubles in about 18 years.  Instead of paying off your landlord's mortgage, you could be paying off your own. 

Get it out of your mindset that you need a huge amount of money saved up for a down payment.  There are lots of options out there, even options where you don't have to put anything down.  Now is the time to stop paying your landlord's mortgage and to start paying your own, building equity in your own future!

Want to read more about the rental crisis?
NAR Study
Portland Housing Bureau

Four Ways to Use Pinterest When Buying a Home

If you haven't gotten addicted to Pinterest yet, then I almost hate telling you about it, because you will spend so much time there!  What is it, you say?  It's ideas on home decorating, recipes, cute outfits, pictures of adorable puppies and it's one-stop shopping for ideas to get you focused on what you want in a home!  I'm going with the assumption that you understand how Pinterest works.  So if you don't, stop now and go create a Pinterest account and play around on it, then come back here and get reading!

 The first thing that you may not think of, is that you can search floor plans.  Even if you're not planning on building your own home, it's a great way to start thinking about how you want your house to flow.  Do you want the master on the main floor?  Do you like the living room, kitchen and nook to be an open design?  Floor plans give you ideas of what you do and do not want in your home.

 

 

Besides knowing how you want your home to flow, the next thing to think about are the finishes.  What type of countertops fit your style?  Are you carpet or hard wood floor kind of people?  Thinking off the types of finishes that you like will help you narrow down a house and Pinterest can help you decide (if you don't already know).  Just search flooring or countertops and you'll get tons of idea!  Check out the Brazilian floors in this kitchen.

Just because a house has a certain type of finish, you can always choose to do a little home improvement project and change it to a different style that you like more.  Old, outdated cabinets?  Give them a makeover!  Pinterest has great ideas for how to build the perfect backyard pergola, to how to remove wallpaper and even how to build the perfect built-in bookshelf! Just plug in the type of project you want to tackle and Pinterest will give you the tips and ideas.

Remember with Pinterest, it's a great way to share your ideas with friends and family.  Do you often take a friend with you shopping?  Why? Because we all get tunnel vision when trying on that outfit or picking out a sofa.  We need a trusted friend to tell when we're crazy and not to buy something!  This is no different.  When you pin ideas on Pinterest, your BFF can tell you if you're beyond your limits and really shouldn't try that Do-It-Yourself project.  Tell your friends that you want feedback and have them comment on the cabinets, floors or paint colors that you've pinned.  That way you'll know right away if you're a little too far off base.

Want to see how I use Pinterest?  Check out and follow my boards!
Real Estate
Best Backyards Ever
For the Home
Gardens

 

Wallpaper Making a Comeback

Could wallpaper really be making a comeback?  We've all either owned, visited or toured a home that had hideous wallpaper.  You know the home, the one when you walk into the foyer and the giant, dated, floral wallpaper is coming at you so hard that you want to turn around and run.  Yep, we've all been there.  It's scary.

First thought as a prospective home buyer is "Holy cow, how much blood, sweet and tears is it going to take to get that down?"  The question is, how many layers of wallpaper are underneath the one layer that you can see?  If you're thinking of tackling a wallpaper removal project, check out HGTV. 

Now if you're really adventurous, you might be thinking of actually putting up wallpaper.  Say what??!  I know, I know, it sounds crazy.  But really, could wallpaper look good?  The answer is yes!  If you get to check out the Street of Dreams in Lake Oswego this year, they do wallpaper right!  It had me wanting to run right out and pick out wallpaper for my house!  

If you're thinking of selling your home anytime in the near future, the trick is to find something that you like, but also something that buyers wouldn't run away screaming from.  Neutral colors, blacks, whites, greys, something that can stand the test of time when it comes to style.

Wallpaper really does have the ability to look good.  But this isn't a task to take lightly, because we all know how it can go wrong so quickly.  If you're thinking about adding some style to your bathroom or entryway, do your research and see if your home could end up looking like these multimillion dollar homes in the Street Of Dreams! 


For something a bit crazy:
Check out wallpaper you can color (I just can't get behind this idea).

Is Solar Something That You Could Do?

Solar panels are becoming more and more popular as technology improves and costs continue to go down.  All you have to do is start driving through a few neighborhoods and look up at the roofs to see that solar is popping up just about everywhere.  It's like when you buy a new car and you start seeing that make and model of car every place you go, solar is the same way - once you start noticing solar panels, you see them every where you turn.

photo from dreamstime.com

You know it's good for the environment.  You know it would cut down your energy bill.  But can you really afford it?  That's the big question.  At the end of 2016, some of the big tax credits are going away.  Now is the time to figure out if solar is right for you, so that you can cash in on those big credits before they become a thing of the past.


What would it actually look like if you put in a solar system?  Here are a couple of examples:

Solar Electric - PGE customer - 4,000 Watts system

$16,000     Total installed cost
-$3,200      Energy Trust incentive
$12,800     Amount homeowner pays to contractor

-$3,840      Federal Tax Credit (30% of $12,800)
-$6,000      Oregon Tax Credit ($1.90/watt, up to $6,000)

$2,960       Final cost to homeowner

For Utility Customers not served by PGE or Pacific Power - 4,000 Watts system

$16,000     Total installed cost

-$4,800      Federal Tax Credit (30% of $16,000)
-$6,000      Oregon Tax Credit ($1.90/watt, up to $6,000)

$5,200       Final cost to homeowner
 

In order to do solar, your roof has to have at least 10 years of life left.  The best type of roof is a metal roof, because the solar panels can just be clicked onto the metal roof without any penetration of the roof.  Solar panel last about 20 years, of course they could last longer and there are no moving parts, so very little maintenance is involved.  There is an inverter that only last 12-15 years before it'll need to be replaced. 

If you live in Oregon and have PGE as your electric company, you can have solar for just $2,960 (examples from Solar Oregon)!  I don't know about you, but that is much less than I thought it would be.  The big chunk of change comes out of your pocket first and the tax credits come later, but if you can afford to wait for those tax credits to come in... you can really get solar panels for not a lot in the end.  If you live outside of the Energy Trust of Oregon territory, which is any place not served by PGE or Pacific Power, like Forest Grove or Vernonia, then you won't be able to qualify for that incentive, but you would still get the State and Federal tax credits.

Here's where the problem lies in Oregon, your house has to pass the minimum shade requirements.  We do have enough sun to be able to benefit from solar panels, but 75% of the homes in Oregon don't work for solar due to too much shade.  Contact SolarCity to find out if your house qualifies.

An exciting piece of new technology is the back up battery by Tesla called the Powerwall that works with solar.  It goes on the side of your house and can be used like a generator, providing energy when the sun's not shinning or in the event of an outage.

It really comes down to this, solar is possible.  Solar is economical with all the incentives and tax credits.  If 400,000 homes in Oregon had solar panels, that would create all the energy that Oregon needs!  Three thousand dollars and you could be an energy superstar.  Think about that.

Helpful links:
Tax credit information
SolarCity - Solar provider
Sunrun - Solar provider
Tesla Powerwall battery
Solar Oregon
Solar World - Solar manufacturer