How to Protect Yourself Against Wire Fraud

Everyday, fraudsters use email with logos, email addresses and formats that look very much like an email you may receive from your Realtor, lender or escrow officer - resulting in millions of dollars lost during real estate transactions.

Here are some suggestions to protect yourself from wire fraud:

1. Be aware of the types of wire fraud - the phone scams asking you to wire funds, people posing as IRS agents indicating something is wrong with your return and you need to send additional funds, computer 'techs' indicating your home computer is not working properly and asking for access to your computer, and now email scams asking you to wire funds to a different account than the one used by the title company.

2. Work with trusted institutions - know whom you are working with at your bank, financial institute and mortgage company.  Get to know your escrow officer on the purchase transaction as he or she will eventually be asking you to wire funds for closing, and you want to ensure the request actually comes from that individual.

3. Be vigilant - watch for red flags in everything you receive.  An extra letter or number in an email address, incorrect grammar in the content of the email or timing that doesn't seem right may all be clues that the request to wire funds isn't from the title company assisting with your transaction.

4. Sign up for account alerts or two-step authentication on your accounts to ensure no one else has access to your funds.

5. Take action - first, when requested to wire funds for closing, have the financial institute call to confirm the account for the title company before wiring funds.  Next, after 4-8 hours, call your escrow officer to confirm the funds for closing were received and deposited.   If you feel you've been scammed, contact the financial institute immediately, stop the wire transfer if possible, and consider calling the local FBI office to report the potential scam.

Buyer and selling a home is an exciting, and huge, step for most people.  Let's be sure we are being diligent and safe with your personal ID, acccounts, and funds throughout the transaction.

Buyers - Should You Do a Re-inspection?

The first and only answer is YES!

Here's why.  In a few recent sales, my Sellers were surprised by items found during the Buyers home  inspection that were included on a repair addendum.  The Sellers thought several of the requested repairs were addressed when they purchased the home as they had asked for the same items in their repair addendum.

During the sale process, once a Buyer is notified that all requested repairs are completed, they have a period of time where they can have their home inspector go back to the house to ensure the requested repairs were 1. completed, and 2. completed in a satisfactory manner.

However, in each recent case, the current homeowner had not chosen to have repairs re-inspected prior to closing on the home.  Some felt the previous sellers were so nice and cooperative that they didn't find it necessary to do a re-inspection.  Others were focused on appraisal challenges that needed to be addressed prior to closing.  Or, a receipt from the contractor showing the work had been done was received and they felt that was sufficient.

Some of the surprising items that have come up in recent inspections include:
(wording is modified from addendums):

• PRIOR REQUEST:  remove and replace excess vapor barrier ensuring only one layer of vapor barrier was in the crawl space.
• FOUND:  the top layer of the vapor barrier was removed, but the old, torn, original vapor barrier was still left in the crawl space.  This left only one layer, but the intent was for one new layer of vapor barrier to be installed in the crawl space.

• PRIOR REQUEST: have licensed contractor install back flow valve on the low point drain in the crawl space.
• FOUND:  no back flow valve on the low point drain... but perhaps a valve was installed on the sewer line to the street
• FOUND:  in a second situation, the back flow valve was installed on the low point drain, but it was installed backward - which would prevent water from flowing out of the crawl space.

• PRIOR REQUEST: Update smoke alarms and carbon monoxide detectors to meet Oregon regulation.
• FOUND: two additional smoke/CO combo units were installed, however the outdated smoke detectors were left in place.

• PRIOR REQUEST: Remove all wood debris out of the crawl space
• FOUND:  still the same amount of wood debris in the crawl space - almost with the same photo shot.

 While there is a small fee for the re-inspection, it is well worth the additional cost at the time of purchase to prevent issues, or surprises, in the long term.

January 2019 Real Estate Market Statistics

(For the past few years, I've used my photographs for the headline photos on the monthly market updates, using local area scenes in 2017 and roof tops of homes sold in 2018.  This year I'm featuring public art that can be found in our local communities.)

The following is the latest Real Estate Market Statistics for January 2019.
Click here for the full report

• Sales:   1,451 in January 2019 vs 1,628 last January  -10.9 %

• Pending Sales:   2,045 in January 2019 vs 2,311 last January:  -11.5%

• New Listings:   3,048 in January 2019 vs 2,486 last January:  22.6%

• Average Sales Price:   $452,200 in January 2019 vs $430,000 last January:  5.2%

• Total Market Time: 76 days in January 2019 vs 60 days last January:  26.2%

• Inventory in Months: 3.3 months in January 2019 vs 2.2 months last January

Inventory by Area:

• NW Washington County   3.55 months
• Beaverton/Aloha               1.93months
• Hillsboro/Forest Grove     3.02 months

The KonMari Method: Helping You Prep Your House for Sale

When Marie Kondo's book, "The Life-Changing Magic of Tidying Up” first came out, I went as far as the first step - sorting through my clothing and organizing my closet and drawers in her recommended fashion.  Life got busy and I got distracted from continuing throughout my home.  If I were wanting to sell my home and make a move, this seems like a great way to begin sorting through and packing one’s belongings.

One of the biggest challenges sellers face when listing their house is decluttering.  Cleaning out some of the more personal decorating choices allows buyers to imagine themselves living in the house.

Those planning to sell soon are in luck! Marie Kondo, the inventor of the KonMari Method of Tidying Up, has gained popularity with her new Netflix series.  She gives some great tips for sorting through years of accumulated possessions that we all collect in our homes. 

"The KonMari Method^TM encourages tidying by category - not by location - beginning

with clothes, then moving on to books, papers, komono (miscellaneous items), and

finally sentimental items., Keep only those things that speak to the heart, and discard items that no longer spark joy. Thank them for their service - then let them go."  

When you subjectively look at all your belongings, you can sort through the ones that mean the most to you. Not only will you increase space for more joy-bringing items in your new home, but you will also have a much easier time packing remaining belongings!

“Remember, tidying up isn’t about getting rid of stuff. It is about creating 

an environment that sparks joy and improves your quality of life.”

When selling your house, first impressions matter! Before you or your agent schedule a photographer to take photos for your listing, make sure to tour your home with fresh eyes. Look for any imperfections that a buyer might notice.

When you sort through your more sentimental items, consider packing them away to ensure that you know where they all are. That way, they are safe during open houses and showing appointments. This will also cut down on the amount of packing you need to do right before you move!

Bottom Line

Whether you are selling your house to move up to a larger one, downsizing, or moving in with family, only bring the items that truly spark joy for you. This will not only help cut down on the items you move, but also ensures that you’re off to a great start in your new home!

Adapted from KeepingCurrentMatters.com

4 Proven Ways Real Estate Can Build Sizable Family Wealth

Recently, David Greene, co-host of the BiggerPockets podcast and a nationally renowned author and speaker, wrote an article in Forbes explaining how investing in real estate could help build wealth. Many of the points he made also apply to a family owning their own home.
Here are a few -

1. Appreciation

“The rising of home prices over time, is how the majority of wealth is built in real estate. This is the ‘home run’ you hear of when people make a large windfall of money. While prices fluctuate, over the long run real estate values have always gone up, always, and there is no reason to think that is going to change.
One thing to consider when it comes to real estate appreciation affecting your ROI is the fact that appreciation combined with leverage offers huge returns. If you buy a property for $200,000 and it appreciates to $220,000, your property had made you a 10% return. However, you likely didn’t pay cash for the property and instead used the bank’s money. If you consider that you may have put 10% down ($20,000), you actually have doubled your investment, a 100% return.”

2. Leverage

“By nature, real estate is one of the easiest assets to leverage I have ever come across—maybe the easiest. Not only is it easy to leverage the financing of it, but the terms are incredible compared to any other kind of loan. Interest rates are currently below 5%, down payments can be 20% or less, and loans are routinely amortized over 30-year periods.”

3. Paying Off the Debt

“One of the best parts of investing in real estate is the fact that … you’re slowly paying down your loan balance with each payment to the bank… After enough time passes, a good chunk of every payment comes off the loan balance, and wealth is created.”

4. Forced Equity

“Forced equity is a term used to refer to the wealth that is created when an investor does work to a property to make it worth more…
Example of this would be adding a third or fourth bedroom to a property with only two, adding a second bathroom to a property with only one, or adding more square footage to a property with less than the surrounding houses.”

Though Green was talking about investors, the same could be said about a family upgrading their own home.

Bottom Line

Green put it best by saying:

“There are many ways to build wealth in America, but real estate might be the safest, steadiest and simplest way to do so.”

Courtesy of KeepingCurrentMatters.com 

How to Protect Your Home from Freezing Temperatures

There’s no question, winter is arriving in full force this weekend throughout the Pacific Northwest. With snow expected and temperatures dropping into the low 20s, even the teens in some places, it’s a good idea to take these steps to protect your home from those freezing temperatures, and all the problems that go with it.

Shut Off the Water to Outside Spigots To keep outdoor plumbing fixtures from freezing, disconnect and store any garden hoses. Then, shut off the water to your outdoor faucets, drain the lines, and insulate the hose bibs.

Check the Exterior Walls of Your Home for Holes Even small holes where cable wires or phone lines enter your home can be an entry point for freezing air. Purchase a tube of foam insulation, and close them up. Then, use weather stripping to remedy any cracks around your doors.

Insulate. Then, Insulate Some More Even small holes where cable wires or phone lines enter your home can be an entry point for freezing air. Purchase a tube of foam insulation, and close them up. Then, use weather stripping to remedy any cracks around your doors.

Set Your Faucets to Drip If any of your indoor faucets are located on exterior walls that aren't adequately insulated, set your faucets to a slow drip whenever temperatures dip below freezing. For maximum effectiveness, make sure both the hot and cold lines are opened slightly (since both are at risk of freezing). Also, consider leaving cabinet doors open, so your pipes will be warmed whenever your home's heating system kicks on.

Clear a Path to Your Main Water Shut Off If a bunch of junk is blocking easy access to your main water shut valve off, rearrange your basement or garage, so it will be easily accessible in the event of a plumbing emergency. Then, make sure your shut off valve is in good working order. Cranking it all the way to the right should shut off all water to the house. If it's rusted open or only closes partially, replace the valve immediately.

Go a step further, and make sure everyone in your house knows where the shut off valve is located and how to use it to turn off the water.

Learn How to Shut Off Your Water at the Meter Invest in a meter key (or keep a crescent wrench handy), so you'll be able to shut off the water at the meter, should your shut off valve ever fail you. Then, practice turning the water on and off, so you'll know how it's done.

Note: Your city may have regulations against shutting off the water yourself. If so, keep the water department's emergency number on your fridge, so you'll be able to report problems quickly.

Keep Your Garage Door Closed If your garage is attached to your home, minimize the time your garage door is open. This will help to keep cold air out of your house and protect your hot water heater and any other plumbing that you may have in the garage.

Keep Your Gutters Clean Full gutters increase your chance of having ice form on your roof, and that's not something you want to mess with! Set aside some time to clean your gutters out before the freezing temperatures get here.

Keep Attic Vents and Soffits Clear Proper attic ventilation is vital to preventing ice dams on your roof. Inspect your attic to make sure there's no insulation blocking your soffits or attic vents.

Keep Spare Batteries for Your Thermostat Make sure you'll be able to keep your thermostat running continuously by keeping spare batteries on hand. Sometimes it's the small details that save the day.

Going on Vacation? Consider shutting off the water to your house and draining your plumbing system, so you won't have to worry about freezing pipes or other plumbing failures while you're gone.

Shared from DirectorsMortage Blog

Homework Series - February 2019

Also, consider taking these steps to implement a mud-remediation plan in February to avoid a 'yucky' Spring.

Deep-clean Your Entryway - Snow, Salt, Boots, Shovels.  Your entryway floors, baseboards, rugs, and more have had a rough few months.  Give that smallest of rooms some deep cleaning love now before the salt crust becomes a permanent part of your entryway decor!

Make an Anti-Mud Plan - Mud may be the least of your frozen worries now, but it's a-coming!  Be prepared with a remediation plan.  Research potential ground cover like gravel, a rain garden, decorative rocks or the right grass that will soak up the water and mud.  Then you'll be ready to execute your anti-mud plan the moment it's warm enough - and do it in time to keep the mud at bay.

Organize Your Cleaning Closets and Laundry Room - Before the madness of spring cleaning begins, organize, or even renovate, your laundry room and clean closets or cupboards.  This will not only breathe a new life into these oft-ignored areas, but perfectly pampered cleaning stations can seriously rev up your spring cleaning motivation.

Hail a Handyperson - Spring and summer are peak handyperson seasons. Skip the surge pricing and the agony of waiting for callbacks by hiring someone now - at least for the indoor chores.

You'll be spring-ready before the first flower buds!

9 Easy Repairs to do Prior to Listing Your Home

In a recent video, Scott Wagar with Scott Wagar Inspections, mentioned four tips for homeowners to prepare for the upcoming selling season.
(see Preparing for 2019 Real Estate Market)

The first tip was to consider having a pre-listing home inspection.  In a previous article (Why Do a Home Pre-Inspection), I shared some thoughts about why homeowners might want to check things out around their home prior to putting it up for sale.

The second tip was to do all the easy repairs prior to having the buyer's inspection.  Below is a list of 9 things often found during a home inspection that need to be included in the inspection report - yet are very easy for homeowners to address.  If these items are done, it shows to the buyer that the home is well maintained and possibly prevents nitpicky items from being included on a repair addendum.

1. Prune vegetation away from the house   - any hedges, tree branches, plants near the home should be trimmed away from the siding or roof.  It is best if the foliage is trimmed back at least 6 inches from the home.

2. Clean the gutters - especially during the fall months when the leaves are falling.  Full gutters can create clogs causing rain water to overflow or run behind the lower shingles, or may exaggerate leaks in the gutters.

3. Repair leaking faucets - this can include leaks coming from above the sink from the faucet or handles, leaks under the sink, leaks at the bathtub or shower faucet or even the outside hose faucets.  Any sign of dripping will be something an inspector will need to include in their report.

4. Replace or clean dirty furnace filters - it is recommended to change your furnace filters every 3-6 months.  A great time to put in new ones, or clean a washable filter, is right before you list your home for sale.

5. Install missing, or replace broken, covers on electrical switches, outlets and junction boxes.  Any light or fan switch and outlets for plugging in electrical cords found throughout the home should have an undamaged cover plate to prevent access to the inside wiring.  Electrical connections in the attic are often found without a junction box and should be repaired.  And, all of the outdoor electrical outlets should have weather proof covers on them to prevent water intrusion into the outlet.

6. Replace burned out light bulbs - this seems easy enough, but it's surprising how many light fixtures are called out as possibly non-operational simply due to a burned out bulb.  This is often found on front porch light fixtures.

7. Pull soil 6 inches away from the siding, basement windows, foundation vents and decks.  The earth should be pulled away from the home to prevent moisture seeping into or behind the siding, flowing into the crawl space through the foundation vents or pooling under decks.  These may create potential water intrusion issues or an easy pathway for insects to come into the home and create damage.

8. Install seismic (or earthquake) straps on the water heater.  This repair is often called out by both home inspectors and appraisers.  The water heater needs to be strapped in two places (upper and lower) to prevent it from tipping over in the event of an earthquake.

9. Update all smoke alarms and carbon monoxide detectors to ensure they meet Oregon regulation.  As of now, smoke alarms or carbon monoxide detectors installed before 2009 need to be replaced.

More  information about the 3rd and 4th tips will be provided in future articles.  Let me know if you would like to arrange for a pre-inspection on your home, and I'll set you up with an excellent home inspector!

Winter Blues

Baby, it’s cold outside! Are you stuck in the house and already played every board game and binge-watched your favorite show to the series’ end? Bust out your coveralls and grab a brush—beat cabin fever by splashing a new pop of color onto that bedroom wall or hallway to brighten things up.  I’ve found five faultless paint colors to help fend off those winter blues:

1. Stunning by Benjamin Moore A sophisticated, mild blue that is perfect as an accent wall in a guest bedroom. For a nice finishing touch, paint the trim and floor boards in a white or cream color.

2. Night Swim by Valspar Valspar categorizes Night Swim as one of its ‘Oceanic Blues.’ If you listen closely, you can hear the waves rolling over the rocks in the distance as you sleep in a room painted with this tempered shade of blue.

3. Salty Dog by Sherwin Williams Guilty—this blue made the list because of its name. Who doesn’t want more dog in their home? This blue belongs to Sherwin Williams’ neutral paint color category and is perfect to create an eye-catching front door.

4. Spring Flowers by Benjamin Moore If anything can stifle the winter blues, it’s the hope of the arrival of spring. This light, encouraging shade of blue will infuse your home with thoughts of fresh flowers and cut grass.

5. Nein! Nein! Nein! Ok Fine! by Clark & Kensington O.P.I This simple, beautiful gray-toned paint will have your guests wondering if it’s really a true blue.

Are you searching for a new home to inspire you to explore with color? I’m happy to help you find just the right house. Contact me today!

7 Budget-Friendly Tips to Keep Your Home Warm This Winter

We've had rather mild weather so far this winter in the Portland area, but the prediction is for cold nights and wintery weather - with possibly snow - coming during the first weekend in February.  If you're looking for ways to keep warm this winter without busting your budget, here are some practical and inexpensive ways to keep your home warm.

1. USE A SPACE HEATER
Space heaters are a simple, convenient and highly customizable way to keep a house warm in the winter.  In poorly insulated houses or those without central heating, electric space heaters can be an energy-efficient option when you're only trying to heat a small area.

2. WRAP UP IN AN ELECTRIC BLANKET
Some family members feel the house is too cold, while others think it's too hot. Electric blankets may be just the ting.  they use very little energy and everyone in the house can adjust their blanket to their preferred termperature!

3. HANG HEAVY DRAPES
Just like you change your summer bedding out for flannel sheets and thick duvets in the winter, you should change out your window treatments.  Swap light and breezy fabrics for heavier drapes that can conserve warmth.

4. WEATHERSTRIP
While ou're hanging new drapes, check around your windows and doors for drafty areas.  A little bit of weather stripping can help your windows and doors seal more tightly, perventing cold outside air from leaking into our home.

5. DECORATE YOUR BARE WALLS
Believe it or not, but mirrors, framed artwork and other wall hanging provide extra insulation for your home. This is especially true for walls located around the perimeter of your house.

6. REVERSE YOUR CEILING FANS
Once winter arrives, switch yoru ceiling fans to winter mode.  make sure the blades are rotating in a clockwise direction pushing the hot air down from the ceiling to the open spaces in the room.

7. INSULATE YOUR WATER HEATER
Insulating your hot water tank is an inexpensive, easy way to improve energy eficiency and save money on energy bills.  If your water heater is an old model, consider insulating your water tank with a fiberglass blanket, which can reduce your unit's heat loss by 25-45%.

For more information on any of these suggestions, take a look at the American Home Shield article:
7 Budget-Friendly tips to Keep Your Home Warm

Stay Warm this Winter!

Adapted from American Home Shield blog

Why It Makes No Sense to Wait for Spring to Sell

The price of any item (including residential real estate) is determined by the theory of ‘supply and demand.’ If many people are looking to buy an item and the supply of that item is limited, the price of that item increases.

The supply of homes for sale dramatically increases every spring, according to the National Association of Realtors (NAR). As an example, here is what happened to the national housing inventory at the beginning of 2018:

And, here's what happened to the local housing inventory levels over the past few years in the Portland, Oregon metro area:

Putting your home on the market now, rather than waiting for increased competition in the spring, might make a lot of sense.

Bottom Line

Buyers in the market during the winter are truly motivated purchasers and they want to buy now. With limited inventory currently available in most markets, sellers are in a great position to negotiate.

Modified from KeepingCurrentMatters.com