Filed Under Uncategorized · Tagged: buying, home, metro, moving, moving up, Oregon, Portland, Real Estate, selling, time to buy, upgrading, when to buy, when to move
The following are some questions that will help you decide whether you’re ready for a home that’s larger or in a more desirable location than your current one. If you answer yes to most of the questions, it’s a sign that you may be ready to move:
1. Have you built substantial equity in your current home?
Look at your annual mortgage statement or call your lender to find out. Usually, you don’t build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you’ve owned your home for five or more years, you may have significant, unrealized gains.
2. Has your income or financial situation improved?
If you’re making more money, you may be able to afford higher mortgage payments and cover the costs of moving.
3. Have you outgrown your neighborhood?
The neighborhood you pick for your first home might not be the same neighborhood you want to settle down in for good. For example, you may have realized that you’d like to be closer to your job, relatives, or live in a better school district.
4. Are there reasons why you can’t remodel or add on?
Sometimes you can create a bigger home by adding a new room or building up. But if your property isn’t large enough, your municipality doesn’t allow it, or you’re simply not interested in remodeling, then moving to a bigger home may be your best option.
5. Are you comfortable moving in the current housing market?
If your market is hot, your home may sell quickly and for top dollar, but the home you buy also will be more expensive. If your market is slow, finding a buyer may take longer, but you’ll have more selection and better pricing as you seek your new home.
6. Are interest rates attractive?
A low rate not only helps you buy a larger home, but also makes it easier to find a buyer.
-Written by Realty Times Staff, but edited for layout purposes.
Filed Under Uncategorized · Tagged: buyer, buying, first time buyer, home, information, mistakes, Oregon, pdx, Portland, portland metro, Real Estate, vancouver, washington
Buying a home is perhaps the most arduous, expensive and, ultimately, valuable acquisition you’ll ever complete. Just one mistake could mean disaster — perhaps the worst mistake you’ll ever make. In order to avoid titanic trip ups during such a trying transaction, buyers should get to know the most common home buying blunders. To know them is to avoid them.
1. Going solo: Buying a house is a complex transaction. It should be a team effort. You’ll need a REALTOR®, lender, inspector, insurer, perhaps a lawyer, and other team members to help you through each step of the way. Team build before you start the search.
2. Love at first sight: If you believe in fairy tales you probably shouldn’t be buying a home. You won’t live happily ever after if you emote your way through the home buying process. Your home should fit your real needs, not your yen for drama. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Visit neighborhoods several times before you buy to check out schools, noise and traffic patterns.
3. ‘Loanless’ shopping: Being pre-qualified gives you a general idea of how much you can afford to borrow. It’s better to be pre-approved for a given loan. Sellers will take you more seriously. You’ll stay on budget.
4. Overbuying: Home buyers buying more than they could truly afford, in part, led to the collapse of the housing market. Buy more than you can afford and your dream home will become the same nightmare. Analyze all your monthly costs including debts, food, transportation, entertainment, and savings. Your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Don’t forget to budget closing costs (often two to five percent of the home’s purchase price), plus moving, redecorating and maintenance. Look ahead and allow for increases in ongoing expenses such as utilities and taxes.
5. Misplaced trust: You are engaged in what’s likely your most valuable acquisition ever. It’s a business transaction. Ask family, friends, co-workers, professionals and others you trust for referrals, but don’t take their word for it. Vet your team members.
6. Accepting oral agreements: Get it in writing. The rate lock, the home inspection, disclosures, the contract. Always. Should a dispute arise, you’ve got the details documented.
7. Skipping the fine print: Understand what’s really in any document before picking up a pen. Get documents in advance, take time to read them and ask questions. Get copies of your mortgage and closing papers a few days ahead of closing.
8. Forgetting or betting on resale: Avoid buying a home that costs 50 percent more than neighboring homes. Reconsider buying the most expensive home on the block. Neighbors’ lower home values will weaken yours. Buy intending to flip your investment only to have the market fail means when it’s time to sell your price may not cover your costs.
9. Making an unconditional offer: Protect yourself with these contingencies:
A. Mortgage financing: You may be preapproved but is the house? A formal appraisal confirms — or not — that there is sufficient value in the home to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.
B. Inspection: Never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.
C. Insurance: Confirm you can get adequate insurance coverage. In some areas, or following certain disasters, it can be difficult to get types of hazard insurance.
-Originally Written by Broderick Perkins, but edited for this blog
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Lois has been a proud Oregon resident for more than 20 years, and is a licensed real estate broker in both Oregon and Washington. 
