A Costly Decision....

Choosing not to have inspections when buying a home may prove to be costly when it's time for you to sell.

I had the great pleasure of working with a couple looking to sell their acreage home and move to a smaller home closer to the town.  They diligently prepared their home for the market and set an initial price designed to be attractive to buyers.  Within a few days, multiple offers where received and an excellent one was selected to move toward a successful closing.  All was looking good!

And then the inspections.

Having purchased the home from a perceived reputable seller, the current homeowners conducted a home inspection, but relied on information provided regarding the septic and well systems; radon inspections weren't common at the time they purchased.  The septic and well seemed to be operating properly, so they assumed all was well when they recently chose to sell.

The inspections revealed:

• The well flow/storage tank was acceptable to the buyer,
• The radon level was high and needed a mitigation system,
• The septic system raised concerns

It appeared that the septic system was installed without a permit (or at least no records at the county). While the system may have been installed properly, previous owners had added a significant amount of fill dirt on top of the septic tank and drain field, a fact the current owners did not know.  With the current sale, the tank was pumped and inspected, and the distribution box appear to be functioning.  But questions arose as to how long the system would continue to operate before failure due to the weight of the added dirt.

Following several septic contractors looking at the system and property, the buyer and seller were able to come to agreement and move forward with the sale - at a significant expense to the seller.

The relative minimal cost of inspections at the time of purchase (hundreds of dollars), is well worth the investment to understand the condition of the property you are purchasing versus incurring significant expense (thousands of dollars - in this case tens of thousands of dollars), when you are ready to sell.

Homework Series - February

January 2018 Real Estate Market Statistics

The following is the latest Real Estate Market Statistics for January 2018.
Click here for the full report

• Sales:   1,628 in January 2018 vs 1,847 last January  -11.9 %

• Pending Sales:   2,311 in January 2018 vs 1,990 last January:  16.1%

• New Listings:   2,486 in January 2018 vs 2,212 last January:  12.4%

• Average Sales Price:   $430,100 in January 2018 vs $399,600 last January:  7.6%

• Total Market Time: 60 days in January 2018 vs 58 days last January:  3.4%

• Inventory in Months: 2.2 months in January 2018 vs 1.7 months last January

Inventory by Area:

• NW Washington County   1.76 months
• Beaverton/Aloha               1.24months
• Hillsboro/Forest Grove     2.01 months

Protect Your Information Online

Many of us spend a lot of time online. We shop, use social media to connect with family and friends, send personal and business emails, pay bills and more. This makes it incredibly important to ensure our personal information is safe from thieves. 

We've probably all seen the suggestions below many times, but it never hurts to remind ourselves every once in awhile to be cautious.  Here are several tips to help you keep your information secure.

It Ain't Over Until....

In the opera world, the saying goes ‘It ain’t over until the fat lady sings’ noting the ending isn’t until the buxom lady with a horned helmet, spear and shield sings in her farewell scene bringing the show to the finale.

In Real Estate, ‘it ain’t over’ …  until the sale is recorded with the county.  Although there is a small chance that something could happen to a sale near the end of the transaction, it does occasionally happen.

I recently was involved with a transaction that appeared to be near its completion; However, an assumption was made by the buyers – which proved to cause significant stress before the sale was final. 

The buyers, having heard from their lender that they were fully approved for the loan and were just waiting for the appraisal to fully approve the funding, didn’t realize it was necessary to inform anyone of a recent job loss, since they were confident the buyer would be able to find a comparable position relatively quickly.

In the lender’s final file review and verification, a part of which is verifying employment, they discovered that one buyer was no longer employed!  Since eligibility for the loan was based on dual income, it affected the lenders ability to fund the purchase. 

Fortunately for all involved in this transaction, the buyer was able to secure a new job in short order, and the lender was able to move forward with the loan.  The sellers were very patient and accommodating, and we were able to close and record the sale just a week later than planned.

This turned out to be a successful sale, but for others it may not have been.  Job loss or change, accidents, big purchases on credit, and other circumstances may occur before a sale is recorded at the county. 

I always share with my clients that even though it may only be a 1% chance, there is some small chance things won’t go as planned.  So, proceed with a bit of caution until they receive the final notice from the title company that the sale has recorded.

Helping You Find Your Next Home - video

Helping You Make a Move

Helping you find your next home - whether it be in Hillsboro, Beaverton, Forest Grove or surrounding communities!

Mortgage Rates - Projections for 2018

Where Are Mortgage Interest Rates Headed in 2018?

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.
Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.
According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.
If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line 

Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home.

Courtesy of KeepingCurrentMatters.com

Millenial Buyers - Advice from a Millianaire

Millionaire to Millennials: Don’t Rent a Home… Buy!

In a CNBC article, self-made millionaire David Bach explained that: “The biggest mistake millennials are making is not buying their first home.” He goes on to say that, “If you want to build real financial security, real wealth for your lifetime, then you need to buy a home.”
Bach went on to explain:

“Homeowners are worth 40 times more than renters. Now, that first home doesn’t need to be a dream home, it can be a very small home. You might literally have to buy a small studio apartment, but that’s how you get started.” 

Then he explains the secret in order to buy that home!

“Don’t do a 30-year mortgage. You want to take that 30-year mortgage and instead pay it off early, do a 15-year mortgage. What happens if you do a 15-year mortgage? Well, one, you pay the mortgage off 15-years sooner, that means you’ll be able to retire in your fifties. Number two, you’ll save a fortune (on potentially hundreds of thousands of dollars in interest payments).”

What will it cost to pay your mortgage in fifteen years? He explains further:

“For fifteen years, you got to brownbag your lunch. Think about that! Brownbag your lunch literally for fifteen years. You can retire ten years sooner than your friends. You’ll have real wealth, because you bought a home – you’re not a renter. And you’ll be financially secure for life.”

Bottom Line

Whenever a well-respected millionaire gives investment advice, people usually clamor to hear it. This millionaire gave simple advice – if you don’t yet live in your own home, go buy one.

Coutesy of KeepingCurrent Matters.com

Who is David Bach?
Bach is a self-made millionaire who has written nine consecutive New York Times bestsellers. His book, “The Automatic Millionaire,” spent 31 weeks on the New York Times bestseller list. He is one of the only business authors in history to have four books simultaneously on the New York Times, Wall Street Journal, BusinessWeek and USA Today bestseller lists.

He has been a contributor to NBC’s Today Show, appearing more than 100 times, as well as a regular on ABC, CBS, Fox, CNBC, CNN, Yahoo, The View, and PBS. He has also been profiled in many major publications, including the New York Times, BusinessWeek, USA Today, People, Reader’s Digest, Time, Financial Times, Washington Post, the Wall Street Journal, Working Woman, Glamour, Family Circle, Redbook, Huffington Post, Business Insider, Investors’ Business Daily, and Forbes.

Build,Remodel & Landscape Show - coupon!

Build, Remodel & Landscape Show 2018

On February 2-4, 2018 the "Build, Remodel, & Landscape Show" will be at the Oregon Convention Center. Below is a ticket you can print out to use for one adult admission. Print as many as you need for your group. If you would like more information on the show, go to www.homeshowcenter.com/overview/portland. Enjoy!!