Value and Space Are So Very Subjective

NYC front yard on 10th st.
(screen grab courtesy of Google Maps)

I was on vacation in New York City last week, taking a walking tour of the Greenwich Village and Chelsea neighborhoods. While on tour, the guide pointed out a street that had front yards - Actual front yards! - and was clearly excited about this 3-foot-deep patch of grass. My first instinct was to laugh, but after spending only a few days in the hustle and closeness of the city, I could see where her excitement was coming from. Space, in New York, is at a premium. It adds tremendous value to a home.

It got me thinking about how our differences in experience can change our perspective and influence our wants and needs when we're looking for a home. In Portland, a high value is placed on homes that are walkable to shops and restaurants, particularly in certain close-in neighborhoods. Those houses have maintained value better during the real estate downturn because native Portlanders have collectively decided that we find it important to, at least occasionally, get out of our cars and enjoy even a peek of sunshine.

It's not important for everyone, though. Recently I worked with some people who were relocating from a suburb outside of Atlanta. They were accustomed to large lots in gated communities, and were having a hard time seeing any value in the close-in neighborhoods that I mentioned above.

In other words, perspective effects experience in nearly every situation in life. Including real estate. Portland was the 37th most expensive housing market in the country last year. Some transplant clients (Atlanta suburbs) think it is absurdly overpriced, while others (New York) thought they could get a fantastic bargain.

Interestingly, nearly everyone comes to the have the same perspective about Portland after living here. People tend to fall in love with it, though it may take a couple of rainy seasons to do it.

If you're looking to move into your next overpriced bargain of a perfect home, give me a call or email.

Amy Seaholt, Oregon Broker, CDPE
503-936-8705
amy.seaholt@comcas.net

Plan to Make Your Spring Beautiful - Get Ideas Feb. 17 to 19 2012

Spring is coming, and no blustery wind can blow hard enough to keep it from greening our beautiful city. Though the days are still cold and (occasionally) rainy, now is the time to think about what you want to plant and plan for in the warmer days ahead.

If you're in need of planning ideas, put Portland's Yard, Garden and Patio Show on your calendar. The show runs February 17 to 19 at the Oregon Convention Center. Dennis' 7 Dees landscaping hosts the event, which is one of the largest consumer gardening shows in the country. Look for gorgeous showcase gardens for inspiration, and days filled with seminars on how to make those showcase ideas come to life in your own yard.

And if you're a brown-thumb, like me, it's still a wonderful place to get ideas for your dream garden - that I may have to hire somebody else to bring to fruition.

If you'd like to buy a garden of your own - and a home to go with it - contact me: amy@rosecityrealtors.com or 503-936-8705.


Tickets to the Yard Garden and Patio Show can be purchased a the doors for $12. Kids 12 and under are free.

- Amy Seaholt

When it Comes to Inspections, Wish for Rain

It was another sunny weekend here in Portland. Though I am definitely a fan of the fair weather on a personal level, professionally I secretly curse the lack of winter rain. Searching for a home in winter can have it's disadvantages - the inventory can be scarce as sellers wait until spring to put their homes on the market and gauging what a garden will do in the spring is nearly impossible. But there is one distinct advantage that makes me want to tell every client to buy in the winter: water.

When the (normally) heavy Northwest rain falls, a homes water issues can become apparent, revealing issues that in summer may be nearly impossible to see. I have some clients, dear friends, who I helped with the purchase of their dream home in summer. They called me justifiably upset after the first rain the fall after they moved in. Inches of water in their basement. I felt horrible for them! The challenge is that there were few signs of a problem in the basement, save for slight water marking that is actually pretty common in older homes. And if the home has Portland Cement - that porous aggregate so common in homes around here - dry weather makes it even more difficult to tell if it's a big problem like my friends had, or a smaller issue of seeping. (I realize that this example is also about the failure of the sellers to disclose the water intrusion, which is unfortunately difficult to prove, though depending on the situation may be worth pursuing in court. Fodder for another post.)

But there are the successful examples, too. I helped another friend purchase a home through Fannie Mae, who as a bank are not able to provide a detailed disclosure. The inspector found a roof leak because of staining on the living room ceiling. Once that dried in summer the problem may not have been apparent. Another client purchased a fixer where the walls seeped and mildew was beginning to grow. They were able to financially for the needed repairs. A good thing, because once summer rolled around the basement dried out and hid it's issues.

You and you family should decide to purchase a home or investment property in whatever season works for you. Just know that every season has its benefits and drawbacks.

One of the best things you can do is to hire well-recommended inspectors to investigate any issues with your prospective property. I like the guys over at Associated Master Inspectors, and Elena likes to use Home Inspections NW. While we can't unearth every problem, between good inspectors and Realtors, like Elena and I, who are willing to do as much homework as we can to find out the complete picture of a property's condition, you can do all you can to minimize surprises once you own the home.

If you are thinking of buying a home any time soon - whether winter, spring, summer or fall - I'd be happy to help you unearth the right home for you and be aware of its condition when you buy it. Give me a call at 503-936-8705 or email amy@rosecityrealtors.com.

-Amy Seaholt
    

Is It Possible to Turn Your Current Home Into Investment Property?

If you've ever considered keeping your current home as a rental, and using this "buyer's market" to get into your dream home, 2012 will be the time to seriously consider it. There are a lot of factors indicating that this is probably a wise decision if you have the means. Below are just a few things to consider:

• I'm not going to lie - it's a tough market for selling your home. By keeping it, you could take advantage of market timing. I don't always recommend trying to anticipate or "play" the market (usually it's best to make decisions on what's right for your family, not by RMLS and NAR data), but in this case, you may be able to buy in a low market and wait several years for a small recovery before you sell.
• Due to the recent decrease in home ownership in the past couple of years, the demand for rental property is at a high. I think it's a sad predicament - that housing is both difficult to find and at a premium. Moving out of your first-time home and adding a well-kept property to the rental pool might help both parties - renters and investors - in this climate. 
• The Federal Reserve announced Wednesday that it anticipates keeping the federal funds rate low through 2014. While these inter-bank interest rates don't immediately affect consumers, they do eventually influence the interest rates consumers pay on their home loans. The challenge is that interest rates are higher for loans on investment property. However, if you've lived in your primary residence for a year or more (check the fine print on your loan terms), you may be able to keep your current loan in place and still take advantage of primary home rates on your new property.  

If you'd like to explore whether this option will work for you, it's usually best to start by speaking with a lender. The two of us can work together to help you figure out if there is enough equity in your home and if there are  mortgage options for this approach to work for you.  

If you'd like to start receiving listings that fit the bill for your next home sent directly to you, sign up via my search website here. If you need a lender suggestion, I work with some great people! Call me at 503-936-8705 or email amy@rosecityrealtors.com for contact information. 

SE Uplift and the Office of Neighborhood Involvement Small Grants Program

It’s that time of year again when SE Uplift and the Office of Neighborhood Involvement take applications for the Neighborhood Small Grants program, which in it’s 6^th year. Here’s more from SE Uplift:

“SE Uplift will be awarding $46,058 in grant funds to neighborhood, business and community-based groups.  Grants will be awarded through a competitive basis and may range from $1,000-$7,500.

The goal of the grant program is to provide neighborhood and community organizations the opportunity to build community, attract new and diverse members and sustain those already involved.  We accomplish this through building partnerships between neighborhood, business, and community based organizations.  Engagement of historically under-engaged communities is a high priority for this grant program.

This year applicants are required to have an organizational partner on proposed projects.  Preference will be given to proposals submitted on behalf of or in direct partnership with one or more of the following:

• Neighborhood associations  
• Organizations predominantly led by people from historically under-engaged communities including communities of color, immigrants and refugees, youth, people with disabilities and lesbian, gay, bi and trans communities
• Business associations or individual businesses   

For more information about SE Uplift's 2012 Neighborhood Small Grants Program or to  download the grant application, visit our website.

For more information, questions or feedback on your project idea, please contact  Kristen 503-232-0010 x 319.”

Application Deadline:

Tuesday, November 1 by 2:00PM

Energy Star 2011 Welcome Home Sweepstakes

NW Energy Star Homes is holding a "Welcome Home" $25,000 sweepstakes through September. The $25,000 winner could use the money as a down payment or to purchase a new home (whether it's an Energy Star home or not).

Simply:
1) Find a Home
2) Take a Tour
3) Tell NW Energy Star What You Think

Contat us to find a participating home in your area

Escrow Tips: Tax Holdbacks

We have moved into the season of Tax Holdbacks. 
Preparing your clients for this additional financial responsibility is another way to help your transaction flow quickly and smoothly.  During the period of September 1^st through October 15^th, your buyer/borrower’s lender, in most cases, will require a Tax Holdback for the estimated payment of the 2011-12 county property taxes.  This estimated amount quite often is 115% of the previous year’s tax amount.
Also during this time, pro-rations of the property taxes will be a debit to the seller and a credit to the buyer.  The prorated tax value will be based on last year’s tax amount as the New Year’s tax amount is not yet available, unless the sales agreement instructs for a different figure to be used.

It’s a good idea to confirm with your seller that once the tax roll is certified (around October 15^th), any taxes due for the remainder of the year will be charged to the Seller to clear the lien of taxes.  Your seller will receive a credit for the buyer’s pro-rated share.  To clarify, prior to the certification of the tax roll, the taxes are “a lien, not yet payable”.  Once the tax roll turns, they become a lien on the title to property.  Additionally, if your seller has an escrow account for property taxes/ insurance, they will get a refund from their lender about three weeks after closing; it is not a credit at the closing table.  They should contact their lender for the specific information on how the funds will be returned.

 
Time of closing is critical when dealing with tax prorates between the buyer and seller.  When in doubt, ask questions.  We’re on your team and here to help.

Escrow Tips Courtesy of Theresa Marshall, Senior Escrow Office at Lawyers Title.  With over 15 years experience Theresa is a great resource for your Title & Escrow needs.