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Category: Advice to Buyers

Thinking Bigger When the Industry is Dismantling

Posted on by Eric Hagstette

Listen here

Recently, I had the privilege of being a guest on the Think Bigger Real Estate Show, hosted by the amazing Justin Stoddart. It was an insightful and thought-provoking conversation, and I’m thrilled to highlight a few key takeaways from our discussion.

In our talk, we explored various chapters, each offering valuable insights into the real estate industry and beyond:

  • “Unlocking Success Beyond Real Estate”: We discussed the importance of thinking outside the box and solving bigger problems to stay relevant in a changing market. It’s all about expanding horizons.
  • “Adapting and Thriving in Changing Times”: We dove into the need for real estate professionals to adapt to new environments and find alternative paths, uncovering opportunities ahead of the competition.
  • “Innovative Strategies to Expand Your Real Estate Business”: Discover how finding your niche and thinking big can transform your approach to the industry. It’s about looking at the broader picture of housing, beyond just closing deals.
  • “Solving Bigger Problems and Networking for Success”: We explored the significance of tackling significant housing issues, such as affordability and homelessness, while networking with influential individuals who can guide opportunities your way.
  • “How Real Estate Professionals Can Drive Change and Attract Opportunities”: We discussed the power of industry participation, believing in oneself, and providing value to the public, not just buyers and sellers.
  • “Simplicity, Openness, and Giving: The Keys to Expanding Your Real Estate Horizons”: Find out how simplicity, sharing even the most basic information, and giving back can lead to growth and success.

I’m genuinely excited to share these insights with you, and I hope you’ll find them inspiring. You can listen to the full episode right here.

Thank you for being a part of this journey. I look forward to sharing more thought-provoking conversations and insights with you in the future.

Warm regards,

Eric

What in the World is Really Happening in the Real Estate Market?

Posted on by Eric Hagstette

Watch the video here or read the transcription below (with some edits for clarity)

What’s up everybody and thanks for joining me for this week’s market minute. Now, somehow we found ourselves in 2023 and how we got here I have no idea, but the market is just cruising right along. I’m here to bring clarification to the number one question we’ve been getting from our buyers, our sellers, and those sitting on the sidelines — what in the world is going on in the market out there? We’re getting tons of varying market information ranging from multiple offers, bidding wars, hot market activity, and conversely, price reductions and no market activity. So I can totally imagine how this conflicting information would be confusing to the layperson who’s trying to make sense of the market.

So here’s my rundown.  The market is changing on a week-to-week basis. It’s very important to pay close attention and rely on a professional to navigate these waters for you. The feds are manipulating interest rates, not mortgage interest rates, but the federal interest rates have a lot of the people watching the news concerned about what’s going on out there. Now, while mortgage interest rates are volatile, we’re still creating wins every week for our buyers and sellers. How? you ask.  Well number one, our buyers are showing fortitude and sometimes patience as they navigate the market and trust us to use buying tools such as rate buy downs, closing cost credits, concessions, and other negotiations that we haven’t seen others using. And for our sellers, it gets even easier because we still have a low inventory market and so we’re focusing on the basics of listing real estate based on price, condition, and access. If you give us those three or as many of those three as you can, we’re going to create great results for you in the market.

So my lesson to you today is that sidelining can actually cost you money. How? Well, if we all waited for a “hot market” we would all be stymied and frustrated with tight market conditions once again. So if you’re taking yourself off the sidelines in an opportunistic market like today, you may be narrowing your chances of homeownership or making the move that you want in a market that can afford you to move up or down. Now I realize that many of you have low-interest rates locked in. Actually, 65% of homeowners in America are locked in under 3% so we realize the bottleneck that this creates. However, once we move through that and once the market starts easing up we’re all going to be able to move around a little bit better and take advantage of these conditions. So please don’t wait until the market is good because when it’s good for someone it’s usually not good for this other person. Your unique real estate goals and needs are specific to you, not the market. In general, I promise we have a solution just for you. It’s never too early just to call and talk shop. Thanks for reading or listening and I’ll see you on the next one.

2023 Portland Real Estate Market Outlook

Posted on by Eric Hagstette

Watch the video here or read the transcription below (with some edits for clarity)

 

Happy New Year everybody! I’m Eric Hagstette with Inhabit Real Estate and I am really glad to be taking on this subject with you. We have a lot to talk about, so let’s jump right in! 2022 is in the rearview mirror; for some, it was a good year and for others a tough one. For most real estate professionals, we are likely saying “see you later 2022”, and we’re really excited to have a new year in front of us.

With all that said, there’s still a ton of noise and mixed information floating around out there, so I would like to share with you my projections and outlook as I look into the new year. I don’t have a crystal ball, but after almost 20 years in the business, I’ve been in similar markets before and I want to share with you what I believe is going on.

Let’s start with what the experts are saying. We’ve been hearing for months that this high-interest rate environment is going to stymie the market until mid to late 2023. Then interest rates will begin to stabilize which will encourage more inventory in the market and more buyers’ confidence.

What is happening now, in all reality here in Portland, is inventory is dipping down. We are now below two months of housing inventory and even further down for detached single-family homes. Remember, lower inventory means higher demand. Also, we are really excited to see interest rates coming down. Now, we’ve all heard about improving inflationary numbers which is the reason for interest rates decreasing. Buyers are coming out of the holidays really hungry; the market is active and our brokers are out there showing property. So that’s the truth about what’s happening here in the Portland market.

My concern, outlook, or projection is that we’ll continue to see a reduction of housing inventory as the buyers get out and gobble it up and we might be entering another tight year of housing inventory and pricing on the rise. I know that sounds very different than what you were expecting to hear, but
Portland’s market is pointing in a direction that is similar to a cycle we’ve seen here in the past.

So, what is my advice with all this information? Number one, listen to your local real estate expert. Call your favorite Inhabit broker and have them give you the lowdown on your neighborhood and your specific real estate. Everybody’s goals and situations are different and very specific so get it locally and ignore the national news. Number two, Portland is so hyper-local. We have an urban growth boundary that has always limited our supply and we’ve always shown a significant amount of resilience in unusual market times. When they say “keep Portland weird,” it applies to real estate as well. Finally, transitioning or moderating markets are those that bring opportunity. That’s one of the silver linings to all this. There are great buys out there for our buyers. We are negotiating on price, credits, repairs, and even rate buy-down points for our buyers, and at the same time, we are making our sellers really happy with proper pricing, presentation and a marketing plan to position their sale for best results.

So, in the end, real estate is based on you (our clients). Your timeline, your goals and your specific situation. It’s not about market conditions, seasonality, or what some brokers say. So, ignore the noise and call us for advice. It’s never too early and you know we will be here for you. Thanks for listening (or reading). I look forward to bringing you a lot more information in the new year along with some of my broker colleagues. So, tune in, ask your questions and post your comments. Thanks for being here.

Summer Lovin’

Posted on by Alison Derse

June is National Homeowners Month, and homeowners have much to celebrate. Not only is real estate one of the best investments you can make in your lifetime, owning your home helps strengthen your connection to neighbors and community. It acts as a private safe haven, and, if managed correctly, can provide personal and financial stability.

Today, 65.6% of Americans own their own homes, and as a result of the most recent real estate boom, owners are now sitting on record amounts of home equity. What can you do with that equity? Some of the best ways to leverage your home equity include: financing large home improvement projects that may help raise the overall value; consolidating or paying off high-interest debts like student loans or credit cards; purchasing long-term investments like vacation property; funding college-bound children, a wedding, or even a new business venture.

It is always a good idea to consult with your lender and/or financial advisor to ensure the best course of action. Tapping your home equity in a proper and constructive manner can be a highly effective way to further build your personal wealth.

 

Market Update: June 2021

It’s hard to believe but the average sales price of Portland homes just keeps spiraling higher and higher, up an astonishing 18.9% from last June. The insatiable buyer appetite is gobbling up well-positioned inventory whenever it appears, in shorter amounts of time, and often for over the asking price which continues to be terrific news for sellers. With historically low interest rates, it’s actually more affordable to buy a home today than at any time in the past eight years. Rates are still above the record lows we saw at the end of 2020, but they are better than the slight spike in February and March of this year. Buying while mortgage rates are this low many help save you money over the course of your home loan.

 

Local Getaway: Beavercreek

My wife and I recently celebrated our wedding anniversary with a weekend in nearby wine country. Located just 20 miles south of Portland in Beavercreek, we found one gem of an AirBnB on a small family farm and vineyard bordering an old growth forest. We were hosted by a very kind family in a beautiful and thoughtfully designed passive solar home complete with a magical garden, cedar hot tub, in-house massages, home-cooked meals, and of course, some fantastic pinot noir. Anyone looking for a tranquil getaway in a gorgeous setting, let me know and I’ll spill the beans on the listing.

If you’re looking for a little more data, reach out for a custom analysis to support your personal real estate goals. I am always available to help answer any home related questions you may have.

Market Optimism

Posted on by Alison Derse

Do you fancy yourself an electrician? Perhaps a plumber? Certainly a painter? If you are anything like me, you may think that the easiest, quickest and most inexpensive solution to your home improvement needs is you, your trusty hammer and a reliable YouTube tutorial. Over the past year the DIY industry has been in full swing as more homeowners have been tackling their own house projects. From the bathroom to the garage and everywhere in between, the yearning to correct that wonky cabinet door, replace a loose shower tile or build a backyard fence is evident and the solution clearly in your hands. Yet, homeowners have reported spending an average of $184.13 to fix their failed DIY house projects, according to a new survey from Cinch Home Services, a home warranty company.

These are the most common DIY fails, according to the survey:

 

If you are all right in handing over the hammer to a professional, from roofers and landscapers, to chimney and foundation specialists, I’ve amassed an extensive list of reputable (local) vendors for your every home need. Just say the word and I will happily share a contact, or several. It’s always a good practice to consult more than one vendor for ideas and pricing and never hurts to get a second opinion, aside from that of your loyal pet or significant other.

Market Update: May 2021

The strong sellers market continues to loom large. Interest rates remain at historic lows, multiple offers are the norm on well positioned homes and the average sales price ($557,900 in Portland Metro) is still on the rise. For those considering a home sale, it behooves you to take advantage of exceedingly high buyer demand and before you have any added competition in your neighborhood, with all the competition out there it is best to remain positive. Be patient and try to keep emotional decisions to a minimum – we want you to enjoy your home and your investment for years to come.

There is still a ways to go before we see an abundance of homes on the market but there are some promising signs as of late. As the economy continues to improve (along with those flush with newfound equity and aiming for new horizons), and people get vaccinated and feel more comfortable getting out, more inventory is certain to appear.

Fannie Mae reports consumer positivity regarding home-selling conditions matching an all-time high. And a realtor.com survey concluded that one-in-ten homeowners plan on selling this year, with 63% of those looking to list in the next six months.

Please feel free to reach out if you’d like a custom home analysis or have any questions.

Local Artist Spotlight: Me!

For the past twenty years, I’ve been designing program logos and communication collateral for corporate events. These were created largely for business meetings and incentive campaigns that took savvy travelers to destinations around the globe. Sadly, these elaborate events came to a screeching halt at the onset of the pandemic. As a result, hundreds of thousands of livelihoods have been upturned, including my own; it will be some time before they return in full.

In the spirit of Beeple, the digital artist who recently created and sold the most expensive piece of NFT (non-fungible token) art, I’ve compiled dozens of my own creations, favorite logos from over the years. From Bora Bora to Prague, Japan to South Africa, my aim was to capture the essence of these dreamy locations within a single brand. And now for your armchair-travel-viewing pleasure. If you’ve been looking to jump into the crypto-currency arena and are in the market for an NFT, perhaps I can put my screen-savvy sons to task in getting this onto the EPH blockchain.

I understand most of you are relatively settled in your current homes. But if your friends, family members, neighbors and work colleagues have expressed any interest in seeking greener pastures, your referrals would mean the world to me.

Seasonal Real Estate

Posted on by Alison Derse

Growing up in Santa Fe, New Mexico and Tulsa, Oklahoma, I developed an affinity for the seasons. Delightfully, here in Portland, we get a wonderful taste of all four seasons, from the *generous* rainy season to some gorgeous spring days, a handful of summer scorchers and even some blustery snow days. The variety is as welcomed as it is vital, to my mental state anyway. Even the recent ice storm was something to behold. While entertaining in its drama, it was certainly disconcerting for many of us. And yet another reminder of how dear it is …our place called home.

As with the weather, the real estate market typically follows a seasonal pattern. With COVID dramatically altering that pattern in the spring of 2020, and confidence now growing with the rollout of vaccines, we suspect that inventory will start to increase as people feel more confident to sell. Sales in 2021 may not follow traditional seasonal patterns and hopefully, buyer demand and consumer confidence will remain aloft.

Even during the financial crisis of 2008 there was still demand for properties that had the right look, the right price, and were in the right location. In 2021, sellers should follow similar behavior, fixing up their property and pricing appropriately to attract the widest range of buyers. Buyers should be prepared to move quickly, possibly use pre-emptive offers (which are becoming more common), and keep an open mind when looking for their home: all purchases require some compromise (yes, even for multi-million dollar properties), so you might need a little more creativity and patience to take a diamond in the rough and make it yours.

Reach out if you want to know how to best prepare for 2021.

Market Update: January 2021

What a year already. Median home prices in the Portland Metro area reached a new high: $460,000, an eye-opening 13.3% increase over the previous year. Homes sold an average of 11.2% over list price in January, in an average of 44 days on market.

There are a large number of sellers getting ready to list sooner than the typical spring selling market, so buyers should be ready to move quickly, and sellers should be ready for a higher level of competition.

Mortgage Update

Interest rates remain at near record lows, with purchase rates in the mid to upper 2’s and refinance rates only marginally higher.  We are seeing day to day volatility the past few weeks resulting in a slight upward trend in rates.  Among economists there is much disagreement, with President Biden’s proposed $1.9 Trillion Relief Plan of greatest concern. The concern is that this plan may overheat the economy, leading to a stock market bubble and increased inflation, this in turn would cause mortgage interest rates to rise.  The general consensus for 2021 is that we will see more rates in the 3’s and less in the 2’s, which is still low enough to continue to support the strong demand for housing.

For now, rates are at record lows and it’s still a great time to refinance or get pre-approved for a mortgage. If you have any questions, please contact Martin Matsumura at Academy Mortgage via martin.matsumura@academymortgage.com or 503.536.9385.

 

How We are Handling the Second Wave of COVID-19

Posted on by Eric Hagstette

November 16, 2020 Update

As we all know, COVID-19 is on the rise in Oregon and Governor Brown has instituted a statewide freeze.  At Inhabit, we are committed to keeping the health and safety of our clients and agents at the forefront of everything we do.  Strict office policies are in place to ensure a safe work environment.  We also updated all of our client engagement protocols so the health and safety of our clients come first.  Last March, we launched our Couch Concierge service that brings the entire home buying and selling process to our clients.  Everything from virtual open houses, live video showings with our agents, to virtual contracts and closings.

Here is a recap of how we continue to tailor and improve our services during COVID-19:

Our sellers shouldn’t worry about canceled open houses.  We will create a digital marketing campaign that brings your house to potential buyers all without risking anyone’s health or safety.  Our agents will tailor a showing plan that you feel the most comfortable with.

We have a lot of active buyers right now.  To short-list property options, we offer live video tours.  Your agent will walk you through the property showing you every nook and cranny with honest feedback on quality or construction issues they see– all from the safety of your home.   

In-person tours of your “must-see” homes are still an option in most cases when necessary, but with precautions we take very seriously.  Our agents are following the recommended 6 ft of social distancing, mask-wearing, and strict hand-washing and disinfecting policies.  We will not show homes to anyone that has cold or flu symptoms or has had any exposure to COVID-19 within 2 weeks of the showing.  As your agent, we promise you the same courtesy and will pair you with another Inhabit team member to safely show you the home if we are under the weather or are concerned about personal exposure.  Your agent will provide our COVID-19 Safe Showing Policies for your review prior to visiting any property in-person so you can make the best decision for your health and safety.

As a small business, we put the care of our clients and agents first.  We are all in this together. We promise to use integrity and knowledge as our guiding force.

Here’s to peace, health, and prosperity for all of us in the coming months.

Eric 

Listing Your Home From Afar: The Beauty of the Internet and a Hard Working Agent!

Posted on by Eric Hagstette

Have you pondered selling your investment property but are not sure how to make it happen since you live outside of Portland, and do not plan to travel during the pandemic? My client was in this exact situation. Having recently finished school, and returning to her home out of state during the “stay home” order, she thought that it might be time to sell her Portland condo of 5 years. 

Living Room (Before)

Over our initial phone call, we discussed the processes of Facetime, Docusign, and the importance of very regular phone calls to make sure we were on the same page and schedule. I agreed that I would make myself available to assist in organizing the cleaning and repairs necessary for tidying up and listing, since it would not be possible for her to be here for the majority of the transaction. My client called in the house and carpet cleaners, and I met them to give them access and check them out. We also decided that the interior would look much better with a fresh coat of paint. This turned out to be the biggest expense and the piece of the equation that took the most time, so if you are planning to sell, please factor this into your schedule and budget if necessary. The results were tangible and attractive!

Bedroom (Before)

You may be wondering about staging also. The entry price for a simple staging of a smaller space starts at around $1500. Since my client was not working, and was gearing up to pay back student loans starting in September, I wanted to help ease the burden of any extra expense. This way, if any repairs were to arise during inspection, she would still have room to breathe. It just so happened that a friend had some extra furniture right next door, and some lovely folks volunteered their time to help stage one bedroom and a living room. This will not be an option for most people. However, we often find that good things happen once we make a decision and have faith that we will make it to the finish line.

Bedroom (After)

Due to our excellent two-way communication, and my organization of the parties involved, the condo was actually cleaned, painted, staged, and photographed in a week. Yes, there were some very long, eventful days. The end result was a home that received 4 offers in less than a week, 3 above listing price! The final logistics included my client and her co-seller needing separate appointments to sign the closing paperwork, as my client was busy taking her boards, and not in her hometown. No worries here. A few days of pre-planning were necessary. The title company worked with my folks to arrange separate signing appointments, when and where convenient for them at the time. 

If you have special circumstances that surround a purchase or sale, we can brainstorm together. With a little bit of technology and strategy, we can work together to free you from something you no longer need, or get you into your dream home.

COVID-19 Update from Inhabit’s Owner

Posted on by Eric Hagstette

March 31, 2020

The coronavirus is impacting everyone and every business in some way and the real estate industry is no exception.  In many ways we are lucky because our shift to doing things virtually isn’t as big a leap as some businesses are facing.  As a matter of fact, for many years we’ve been able to handle most of the home buying and selling transactions electronically.  During the COVID-19 pandemic, Inhabit is committed to keeping the health and safety of our clients and agents at the forefront of everything we do.  Even before Governor Brown initiated Oregon’s shelter-in-place order, Inhabit launched our Couch Concierge service that brings the entire home buying and selling process to our clients.  Everything from virtual open houses, live video showings with our agents, to virtual contracts and closings.

Our listing clients shouldn’t worry about canceled open houses.  We will create a digital marketing campaign that brings your house to potential buyers all without risking anyone’s health or safety.  Our agents will tailor a showing plan that you feel the most comfortable with.

For our buyers, we are hosting live video tours.  Our agents will walk you through the property showing you every nook and cranny with honest feedback on quality or construction issues they see.  

In-person tours are still an option in many cases when necessary, but with precautions we take very seriously.  We recommend live video tours for anyone that has cold or flu symptoms or concerned about a possible COVID-19 exposure.  This goes for clients, as well as, agents.  Our agents are following the recommended 6 ft of social distancing and strict hand-washing and disinfecting policies.  Our agents provide our COVID-19 Safe Showing policies to clients for review prior to visiting any property in-person so you can make the best decision for your health and safety.

We are a small business that puts the care of our clients and agents first.  I started this company six years ago because I knew there was a better, more innovative way to serve clients.  This is an industry that one-size definitely does not fit all.  Inhabit has always been forward-looking and our size allows us to be nimble in creating services that address changing needs and goals.  We are here to give you the best real estate advice possible, now and into the future.

Yours in health and prosperity!

Eric

How Your Home Can Provide Stability

Posted on by Eric Hagstette

For those of us invested in the stock market, we’ve all been wondering if the historic run of this bull market was ever going to end.  No one, however, could have predicted the coronavirus or imagine its global impact. The next few months are still unwritten and as we brace ourselves for how far reaching the effects will be.  It’s unsettling for everyone. The stock market volatility is reminiscent of 2008, but the cause is totally different, and it will have different effects. A recent New York Times article titled Buying a Home During a Pandemic reflected on the 2008 market by saying, “Many real estate shoppers were trying to weigh multiple moving pieces back in late 2008. That crisis was different — the S&P 500 would ultimately lose half its value from its peak, and home prices cratered, too. That’s not the case this time (so far, at least). And what has happened since 2008 should provide us some comfort right now.”

The article also reflects on the stability of the housing market versus the instability of the rental market.  There is some piece of mind knowing that you can capitalize on historically low interest rates to lock in a monthly payment that won’t change.  This is making home ownership much more attractive than renting in many cases.  

The news around COVID-19 feels surreal right now with everything seemingly in a holding pattern, but the root cause of what’s driving Portland’s housing demand will not be affected in the long run.  Portland is one of the strongest real estate markets in the country. It’s during times of crisis that people take the time to reflect on what’s really important. The certainty of having a safe place to call home tops most lists.  Also, the push to create a stay-at-home economy makes where you live more important than ever. Companies may realize that having their employees work from home has some financial benefits. This could very well make a shift to more people getting to decide where they want to live.  Lifestyle is a major driver to Portland’s growth. Are we now poised more than ever to see accelerated growth? I don’t have a crystal ball, but I would be willing to make a bet that the net effect of what’s happening right now will make people pause and consider what’s really important in life.

We have a unique situation with interest rates at historic lows and Portland housing demand still high.  With all the stock market volatility, finding some stability with a large asset like homeownership should be a consideration.  Whatever is important to you, there are options. You can refinance to lock in a lower monthly payment. You can upgrade your home and with the low interest rates end up paying close to what you are now.  You can downsize to streamline your finances and put money away to safeguard yourself against any future volatility. If you are a renter, you can give yourself more certainty by purchasing a home, locking in a monthly payment and having piece of mind that your dollars are going towards an investment for your future.

Whatever is important to you, please know that my team at Inhabit Real Estate is here to help you navigate your decision-making process.  We pride ourselves on being advisors, not salespeople. Let us help you find a strategy that works in your best interest. We are all in this together!

2020 PDX Real Estate Outlook from Inhabit’s Owner Eric Hagstette

Posted on by Eric Hagstette

Settle in as Eric Pulls Back the Curtain on 2020 Portland Real Estate

And just like that, it’s February 2020. If someone asked you when you were a kid what you thought 2020 would look like, did you picture this? I visualized space travel, robots, flying cars, lasers and futuristic stuff…not this everyday adulty life gig.

So where the heck did January go? To be honest, the reason my annual market outlook is so delayed is because this January was super busy for the Portland market. Now that I think about it, we were even selling houses right through the holidays as well. Portland may be experiencing growing pains, but the real estate market is alive and flourishing.

Last Year’s Prediction: Nailed it! 

A year ago, I was calling for our buyers and investor clients to get into the market. It was a year of opportunity for our buyer clients after many years of seller-favored, tight inventory conditions. For the first time in a long while, buyers enjoyed shopping the market without urgency & pressure, having more than one house to choose from, price drops, seller incentives, and contingent offers. How sweet it was! Instead of calling it a buyer’s market or a seller’s market, we called it a “broker’s market” as we could make both sides happy by creating win/win transactions for our clients. We could place our buyers in homes without real estate “whiplash” and our sellers were walking away from the closing table with a smile on their face excited to move on in the market. It was a unique time. Everyone was pretty happy. I hope that you or someone you know took advantage of it. 

2020 Current Conditions

The Portland market has always been nimble and this year is no exception. It changed quickly! Midway through  Q4 of 2019, Portland inventory started to dwindle down. Furthermore, most sellers don’t list during the winter and holiday months, so market inventory continued to fall. Despite the BRUTAL Portland weather this winter, the buyers came out of the holidays with a big appetite and gobbled up what was left on the market. The close in Portland neighborhoods currently sit at 1.3 months of housing inventory (in the 450k-700k range).  So the 2020 cycle begins with a fiery combination of low housing inventory, great interest rates, a seemingly healthy economy (with many new jobs coming to Portland) and a rapid erosion of affordability (this pushes buyers further from town to seek more affordable options). The market is behaving accordingly in response to high demand. Demand is being driven to Portland by a combination of reasons: jobs/economy, lifestyle, climate & natural resources, and an affordable option for many West Coast transplants. 

2020 Outlook

Welp….it’s an election year which has a tendency to slow the market. Buyers and sellers that aren’t being pushed into the market tend to sit tight through election times out of fear of the unknown. However, the upcoming election doesn’t seem to be having an impact on the market…yet.  Portland shows resilience when other markets slow. When things have slowed for us in the past, we bounce back quickly (including the recession). Thanks to our urban growth boundary and natural geographic barriers, we don’t have sprawl which has been a saving grace for our unique market. Portland offers jobs plus lifestyle and attracts a wide demographic spectrum of folks looking to call Portland home.  Pair this with a mild climate and abundant natural resources and you have a winner. Therefore, I predict 2020 will continue its low-inventory trend which favor sellers, drives prices and frustrates buyers. We have to be careful with the “drives prices” part though.  Affordability is a major concern. The chasm between the cost of Portland real estate and our median household income seems to be growing. Jobs are coming but wages haven’t caught up and the cost of living keeps climbing. This pushes buyers to outlier markets (Vancouver, Milwaukie, Beaverton, Oregon City, etc). For the urbanites that don’t want to pay for the high priced houses but want to stay in town, they’ll drive demand in the ‘attached’ market (townhouses/condos) which had a slow 2019. This will stabilize pricing in the attached market. Properly priced, well-presented, detached houses from the $200k to $1m range will continue to fly off the shelf. The $1m-$1.5m market is a ‘move up’ market for many wanting to upgrade from their existing home .  This market presents opportunities for buyers to make a great purchase; however, tapping their “trapped equity” from their existing home in order to make this purchase can present challenges (certainly not insurmountable but can be daunting to the client). In surprising fashion, Portland’s upper end market ($1.5m +) is moving at a pace you may find interesting (fast). Of course, these properties need to deliver the full package to fetch the price, but this market segment seems very confident in Portland as a place to make these big purchases. I find these big numbers surprising as I clearly remember how freaked out I was when I bought my first house in Mt. Tabor for $185k. However, like many other places, we are bursting at the seams. The numbers for incoming population growth are staggering which in real estate economics translates to demand. Portland is in high demand which has all but diminished the lower end of the market and made it feel normal to buy and sell very expensive real estate. 

Natural disaster or other non-natural market forces aside, Portland real estate has a very promising future and has always been well-insulated. With all this said, if our local government doesn’t figure out a way to better manage our addiction/mental health/homelessness crisis, Portland may lose its reputation as the “darling” of the Pacific Northwest and no matter how great this city is, many people will choose different markets to call home. Rainy weather is tolerable but corruption and greed are inexcusable especially with what it costs to live here. 

2020 Buzz Words & New Concepts 

iBuyer: Also known as institutional buyers or residential REIT (real estate investment trust): Have you heard the OpenDoor commercials on the radio? iBuyer or ‘instant offer’ is easily the biggest new disruptor in real estate and Inhabit is all over it. iBuyers have come into the market backed by billions of venture capital funds and are buying up real estate that fits in their “buy box”. Homeowners that qualify for an instant offer (and choose to take it), are typically taking a discounted price for the convenience and avoiding the traditional selling route.  As a student of change, I became very intrigued with iBuyer and became certified as an iRep Professional. Our philosophy with iBuyer is “pro-consumer choice”…what works best for our clients. iBuyers are real in today’s market and we want to share all of the options with our clients so they get the most out of their real estate assets. It works for some clients and we can show you how. 

Trapped equity: Many homeowners who have owned their real estate for 5 + years are sitting on a decent amount of equity that is trapped in their real estate. In a tight market, trapped equity can add challenges to a buyer that wants to move up or move down within the market. We’ve found that many people will simply opt out of moving around in the market simply because of the perceived risks and challenges with using the equity in your home to help achieve the daunting buy/sell or sell/buy. There are more layers, but we manage these all the time. In the end, our clients say that it’s worth the effort. 

Concierge real estate services: It is more important than ever for real estate professionals to be a trusted advisor not only throughout the sale, but on an ongoing basis after the sale. Realtors are on the front line of clients’ needs as a sale closes. Concierge real estate service continues after closing where Realtors continue to provide useful resources, information and advice on an ongoing basis. In today’s demanding and competitive market, we are reinforcing our value by continuing to support our clients on all things real estate. 

Final Words

Even though we’re not living in the Jetson-like society that I envisioned as a kid, 2020 is chock full of new and exciting stuff: self-parking, electric cars, virtual reality, and an impressive (and concerning) amount of technology & connectivity. At the push of a button, you can have almost anything you want delivered to your doorstep within hours.  Heck, you can push a button and order up a random Realtor to open up a house for you (but how dare you do that!). Real estate is no exception to the expectation of today’s “now society”. As professionals, our response time must be faster, our knowledge deeper and our ability to navigate this market must be sharp and focused. One thing that technology can’t change, is the human factor that is necessary to create happy buyers and happy sellers in real estate transactions. This is our wheelhouse. We embrace today’s disruptions & technology and use them as tools to enhance our clients’ position and experience; however, we feel more strongly than ever that real estate is a people business and we are here to stay. 

Thank you for your continued support and trust. Here’s to a prosperous 2020!

Eric

Why 2019 Could be a Great Year to Sell Your Home

Posted on by Eric Hagstette

With the Feds increasing interest rates already 3 times the last 12 months (and a possible 4th predicted); it’s understandable that people could be hesitant to make any real estate moves. Mortgage rates tend to mirror interest rates, but with some caveats. Mortgage rates are based on the current market, your financial status and the property you are trying to purchase. Mortgage rates hit a 7-year high in November, 2018 at just under 5% as reported by Freddy Mac, but as of February the rates have lowered to the mid to low 4% range. These rates are still incredible if you consider the historic high of 18% in 1981.

 

Housing markets and volatility will vary depending on where you live. Thankfully, Portland is still a growing and sought after destination which helps keep our market volatility more steady. So why would selling in 2019 be better than 2020 or 2021? Our housing market has a cycle of its own that is influenced by the economy. Typically the cycle is somewhere between 10-16 years. Some experts are predicting the next recession happening in 2020 or 2021. That prediction would be in line with our typical cycle length since the last housing “crash” was in 2008.

 

If you are unsure what to do, here are some compelling things to think about…

Reasons to Sell in 2019:

  1. Do you have plans to make a move in the next 3 years?
  2. Do you have considerable equity in your home? The higher your down payment on a new home, the better your interest rate.
  3. Interest rates are predicted to rise again in the next year
  4. New home buyers are entering the market. Based on a recent Trulia survey, millennials are the largest buying group with 1 out of 5 reporting they will buy a home in the next 12 months.
  5. If you are getting close to retirement and the equity in your home is a big part of your financial picture, then waiting out the next economic cycle might not be the best plan.

Reasons not to Sell in 2019:

  1. You haven’t owned your current home for long enough to build up enough equity. If you’ve owned for less than 2 years, then paying capital gains on your profit is a deterrent as well.
  2. You are happy with your home and believe it can meet your needs for the next 5 years or more, then staying put and waiting until the next cycle is probably in your best interest.

 

I created Inhabit to be a trusted resource for guiding people on how to get the most out of their largest and most important asset. Our overarching goal is to be a trusted advisor and build relationships that withstand all the market ups and downs.

If you want help assessing what you should do to get the most out of your real estate investment, I’m just a phone call away.

 

What to Expect When You’re Inspecting

Posted on by Shane Morgan

Your Guide to the Home Inspection Process

 

There’s often a feeling of uncertainty when deciding if you want to “pull the trigger” and make an offer on a home. So many unknowns!

“What’s the deal with the foundation?” “Is that crack in the ceiling a bad sign?”  “Is the electrical in this room up to code?”

A good Realtor can help with many of these questions, but you won’t know everything about the house until you have it professionally inspected.  This step only happens once you make an offer and it’s accepted by the seller.

A certified home inspector really takes a close look at the house and, for many home purchasers; it’s often the most stressful time in the home buying process. – But it doesn’t have to be!

If you have clear expectations, you can get through it easily and be on your way to moving day.

 

The first thing you need to know about your home inspection:

You’ll feel a myriad of emotions.

First there’s excitement. The inspection could be the longest time you’ve been in the house, after the showings.
Then there’s anxiety. What if the inspector finds something wrong? So wrong you can’t buy the house?
Finally, there’s impatience. Seriously, is this whole home-buying process over yet?

Not yet. But you’re close!

You will typically have up to ten business days to complete inspections and present the seller with any requested repairs. In the Portland area, it’s common to have a general home inspection, as well as, a sewer scope, radon test, and underground oil tank search.

 

Let’s review all 4 inspection types:

General Home Inspection

  • Typically takes 2-3 hours depending on home size. The cost varies, but plan to budget between $400-$500 for it. (Yes, you have to pay for ALL inspections yourself…congrats; it’s your first homeowner expense!)
  • Once finished, the inspector will share initial results with you, highlighting any areas of concern. There will be a formal report later that you and your Realtor can review in more detail to determine the next steps.
  • Keep in mind that the report will highlight only the negatives of the home. At first glance, it can feel like there’s so much wrong (and maybe there is!), but it’s important to remember there’s plenty right with it, it’s just not in the report.
  • When sifting through the report details, don’t sweat the small stuff and focus on “The Big 3”:
    • Structural (siding, foundation, roof, chimney, etc.) 
    • Safety/Health (loose/missing railings or stairs, bad wiring, pests)
    • Systems (furnace, water heater, plumbing)
  • Remember, items large and small that are not completely perfect will be in the report.  It will cover everything from serious stuff to a loose handle on a drawer. While everyone wants to move in with as little to fix as possible, stay focused on the “big ticket” items such as a new roof, sewer line, or foundation work.  Save the inexpensive stuff for later.
  • Your Inspector Won’t Check Everything – Generally, inspectors only examine houses for problems that can be seen with the naked eye. They won’t be tearing down walls or using magical X-ray vision to find hidden faults. Also, your general inspection does not include:
    • fireplaces
    • garages, shops or out-buildings
    • pools


Sewer Scope

This inspection takes an hour or less in most cases and costs about $150. This involves a small camera attached to a pipe that snakes its way into the sewer line. The inspector is looking to see if there is a clean line from your house to the street and if there is any damage along the way. The most common issue that can be found here is root intrusion (like it sounds; tree roots have started growing into the line), and a party sewer (not as fun as it sounds; your line meets with the neighbors’ line before it goes to the street). If either of these is found, your Realtor will likely recommend asking the seller to repair them.

Sewer issues are more common in older homes, but you never know! 

 


Radon Testing

Testing radon may be unfamiliar to some, but it’s serious stuff! In a nutshell, radon is an odorless, naturally occurring radioactive gas found in granite rich soil and is common here in our lovely Portland rain forest. Radon is in the air all around us. There’s nothing to fear if it’s not in an enclosed space, but exposure to elevated levels in a confined area has been shown to cause lung cancer over time. You can learn more here

Testing costs about $100 and involves simply placing a small monitoring device in the lowest livable area of the home.  Results are measured after 3 days. The EPA suggests a reading over 4pCi/L should be corrected. Typically the seller will fix the issue by installing a ventilation fan (often in the basement) that vents out along the side of the home keeping levels low and steady.


Underground Oil Tank Search

This is not always necessary, but if you or your Realtor sees that there may have been oil heat in the past and you don’t find a record of decommissioning, you should get it done! Most old homes around Portland were heated with oil back in the day (many still are), and while oil heat can be just fine, an old neglected tank is not! Old tanks can corrode over time, leaking oil and sludge into the soil that can seriously mess up your gardening plans. 

The search costs about $100. If a tank is found, a Soil Test is recommended to determine if there has been any contamination. As with radon, the seller generally expects to pay for decommissioning. 


Your Next Steps

At this point, if you have concerns over any of the inspection results, you have 3 options:

  1. Ask the seller to repair specific items at their expense
    • You don’t want to send them a laundry list of a million things, but anything from “The Big 3” should be considered.
  2. Request a credit to pay for those repairs
    • I’m a big fan of requesting credits. That way you can determine for yourself who will do the work, plus those credits will go towards paying off your closing costs.
  3. Walk away and find another house
    • Every situation is unique and while most homes are in good enough shape so that a credit or a few fixes make both the seller and buyer happy, sometimes it’s best to cut your losses and move on.


That’s It!

There’s more to it, but that’s the basics. If you or someone you know is considering buying a home, let’s chat about the specifics and make a plan together.

In Which I Call B.S. on a Recent HousingWire Story

Posted on by Eric Hagstette

Did you see the headline from last week? “It costs more to own a home than to rent one in every U.S. state.” For a link to the article, click here.

The story talks about how using US Census Bureau data, CNBC was able to compare the median cost of renting a home to the median cost of owning a home.

Remember what a median is? A median is “the value or quantity lying at the midpoint of a frequency distribution of observed values or quantities.” In other words, if you have 1,001 houses, exactly 500 will cost more and 500 will cost less.

And this is where the methodology is screwed up. RentCafe took the same data that CNBC used and figured out that in the US, there are 73% more apartments rented than houses. And the Terner Center at Berkley took that same data and determined that “Today, single-family detached homes make up more than 62 percent of the housing stock in the United States…” .

So the median rental is way more likely to be an apartment, while the median home that’s owned is way more likely to be a house.

Here’s another way to think of it. Jennifer Lopez has a $28 million home. So she and all the other millionaires who own mansions skew the median cost of home ownership up. But unless
there are a lot of millionaires out there renting apartments for like $2 million a month, it’s a pretty safe bet that median rental doesn’t skew as far north.

If all those numbers make your eyes glaze over, let me frame it one more way. The common
sense way.

The CNBC story implies that in every single state, people who rent out their homes are, on
average, losing money. In other words, we have a country full of generous landlords.

Sorry, that just doesn’t fly.

As a realtor®, it’s important to stay informed. But it’s way more important to think.

Dreaming of a Vacation Property?

Posted on by Eric Hagstette

If I told you that you could own a peaceful vacation retreat at an affordable price within a half hour of downtown Portland would you believe me? Believe it or not, it’s true. Within minutes of downtown Portland  (and in some cases a stone’s throw), there are hundreds of FLOATING HOMES right in front of our eyes. These unique homes come in all shapes, sizes and prices and deliver a truly peaceful, fun retreat from the day-to-day grind of life.

Whether it’s on the Willamette, Columbia or Multnomah Channel, there are moorages of all different styles and flavors with a myriad of floating homes enjoying a convenient, peaceful existence right on the water.

With Portland’s explosive growth, dense housing landscape, affordability concerns and emphasis on lifestyle,  it’s surprising that these homes aren’t wildly more popular. The cat is certainly out of the bag in our “sister” cities like Seattle and San Francisco where floating homes are often just as much a consideration as land homes for primary residences or second homes.

As brokers, we hear quite often from our clients the desire to purchase a second property whether it’s at Mt. Hood, Bend or other destinations which could take hours to get to. One of the most important factors when purchasing a second home is convenient access. Taken from first-hand experience, once the honeymoon period is over after purchasing a vacation property, it’s all too easy to talk yourself out of a long drive on a Friday after work to retreat to your vacation home. However, with dozens of floating home moorages within a half hour of Portland, the much-needed escape is only a short drive away.

On top of relaxation, these properties afford fun and entertainment such as swimming, boating, fishing, wildlife observation, kayaking, and unlimited access to waterways, islands, and much more.

We realize that floating homes may not be for everyone, but we want to bring light to these special properties….especially given the abundance of them within a short drive from Portland. As our town continues to bust at the seams, we predict more buyers will begin to consider them as an option for their primary residence or as an escape from city life.

Currently, during the off-season, there are 36 floating homes for sale on the Portland area waterways ranging in price from $80k – $1.1M (with the median price of $266K).  Suprised? I was too when my family and I started looking and decided to buy one on Sauvie Island 2 ½ years ago. It was the best decision we ever made. Our summers and weekends are filled with memories that will last a lifetime.  Why wait for a vacation when you can live like you’re on one all the time!

 

 

2019 PDX Real Estate Outlook From Inhabit’s Owner Eric Hagstette

Posted on by Eric Hagstette

It’s 2019! I hope you had a restful holiday season and are as excited about the new year as I am. I find this time of year refreshing as I look ahead. The following is my market outlook for 2019. I was excited to look back on my 2018 predictions and am happy to report that I pretty much nailed it! Our Portland real estate market is very healthy….different, but healthy. We’ve been enjoying solid appreciation since 2012 and our market continues to strengthen the fundamental components required to keep a market healthy and resilient (ie., job growth, buyer qualifications, lending guidelines, availability of financing, desirability, popularity, and so forth). With this being said, the Portland market has changed and we think it is chock-full of opportunity for both our buyer and seller clients.

Inventory

Real estate buzz word #1. This simply means “supply” of housing for sale. Inventory levels determine who has the upper hand (or level hand) in the real estate market. Portland’s historically low inventory has always favored our seller clients; however, as of late 2018, inventory levels rose to a point (approximately 3 months) that has given our buyer clients hope of achieving their dreams of owning real estate. We are excited for our buyer clients and investors and doing our best to encourage them to take advantage of this “correction” or “softening” or “shift”. Call it what you will, we think this is a great time to get into the market or move around within the market.

Interest Rates

Real estate buzz word #2. We’ve been warned for years that rates would be going up and it finally happened. As we all knew, 3-4% long-term interest rates were unsustainable. These low rates were simply a tool (“quantitative easing”) used for economic recovery and stimulation as a result of the “great recession”. We’ve begun the march back to more sustainable rates for real estate financing. While these rates are still at historic lows, we understand the impacts (and discomfort) that rising rates have on real estate prices (they both can’t go up at the same time). Our sources say that we will likely have a couple more rate hikes in 2019 so, again, we’re encouraging our buyer clients to jump in the market before rates creep up more. Interestingly enough, as I write this, rates are at an 8 month low which is stirring up activity for us. On a positive note, there is still ample liquidity and loan programs for real estate financing and qualified buyers. Great lenders paired with skilled real estate negotiators (me) can introduce ways to buy rates down for our buyer clients and lower the barrier into the market.

Price, Value, Affordability

Buzz word(s) #3. Inventory, rates and real estate prices are all tied together. As mentioned, rates and prices don’t normally go up at the same time. It’s no secret that Portland (and many other metro markets) have a huge “affordability” issue. Rising rates and inventory have joined forces to encourage (or force) our seller clients to price their real estate realistically based on these new inventory levels. It is important to look at this from a positive perspective. 2019 sellers have not “missed the market”. Most of our sellers have enjoyed huge gains in appreciation of their holdings since 2012 (or longer). In my humble opinion, if we simply adjust those appreciation averages to account for today’s market conditions, most people would still be more than happy with their rate of return when spread across the years.

Luxury Homes & High-End Market

This market is all over the board. We’re seeing examples of high-end listings sitting on the market. We’re also seeing examples of high-end listings flying off the shelf. Every property has a price and there are still buyers that can and will appreciate high-end luxury homes. Keep in mind, Portland has always been insulated by the famous migration of buyers moving from California, Seattle, New York, and other “jumbo” markets. To these buyers, our “high-end” listings may seem like a bargain. With this said, regardless of the market segment, it is imperative to price real estate competitively.

Condominiums/Attached Townhomes

While these types of properties continue to grow in popularity in Portland, so does the buying power for condos and townhouses. The recent over-saturation new rental apartments in Portland has softened prices for condos and townhouses. With Portland’s limited land for development (and sprawl) and encouraged density, these properties will remain a player in the market and will “weather” this shift as our population continues to grow and buyers prioritize simplicity and efficiency. In the meantime, this is an outstanding market segment to take advantage of for our buyer and investor clients.

There you have it….my two cents on the local market for 2019

I strongly believe that these “in between” markets present the greatest opportunities for our clients. Unfortunately, we usually don’t realize these opportunities until they’re gone. While we’re experiencing a market correction, we’re still very bullish in the Portland market. We’ve built the fundamentals of a solid market while our job base and popularity continue to thrive. As “the darling” of the Pacific Northwest, Portland may experience blips like this one; however, the combination of current/future population growth with our Urban Growth Boundary and natural land barriers (to development), we feel we have a recipe for strong upward appreciation over the next 10-year cycle. The long and short of it….we do not think buyers should wait to take advantage of this market. At the same time, we feel like sellers who properly price and present their real estate will have a satisfying outcome. It’s a solid market for both sides! The key component is accepting the change and adapting to it. As usual, if you know of anyone considering buying, selling or investing in real estate, we would be honored to receive your referrals and serve your friends and family with outstanding service.

The State of Portland Real Estate: Where it’s at and Where it’s Going

Posted on by Shane Morgan

Yet another year is coming to a close. I don’t know about you but 2018 FLEW by for me! It has been another busy year in the Portland market with loan interest rates remaining at historic lows, and thousands of new residents looking to buy.

This time last year, our market was coming off one of its strongest years in a decade. Everything seemed to be selling way over asking price and competition was fierce. Regardless of their budget, buyers had to put the gloves on and be ready for battle. Most of those who were selling their homes saw them go for top dollar, often within a few days. Our predictions at that time for 2018 have held true – continued demand for homes (though not quite as much as previous years) combined with rising interest rates and a slight increase of available listings brought some relief to buyers who were used to getting outbid. By this summer, it became clear that homes were not selling as fast (or for as much) as they had been. Many sellers however, were still pricing their homes based on market conditions of a few months earlier and found a price deduction or two was needed before they found a buyer.

These changes are perfectly normal considering the massive appreciation in real estate values we’ve had over the last several years – it couldn’t go on like that forever! (And probably for the best that it doesn’t…who wants to see starter homes at $600k?!)

What can we expect in 2019? I anticipate rising interest rates throughout the year, which will likely increase the demand for homes under $400k as many may have to lower their budgets to buy. Many forecasts I’ve read predict mortgage interest rates will increase to 5.5% by the end of 2019. That would make the average home purchase 8% more expensive per month than in 2018. We should see continued population growth with plenty of buyers, and a further increase in available homes as they will likely take longer to sell with many still pricing them higher than the current market will bear.

Even with inventory increasing next year, unless there is a major shift in the economic trajectory, don’t expect a “buyer’s market” within the next five years as prices should slowly tick up and the inventory increase won’t be near enough to keep up with demand.

If you’ve thought about buying a home, it’s not likely to get more affordable in 2019. If you need a loan, now may be the best time before interest rates start climbing any higher. For anyone considering selling, it will be more important than ever to present your home well and price it correctly the first time to ensure predicable results. As we move into a more balanced market, homes won’t simply sell themselves anymore; you need a solid marketing plan with a great Broker who understands how to best position your home to sell.

If you’re ready to get a plan together, let’s talk about how you can best take advantage of our current market.

Understanding Radon

Posted on by Alison Derse

AND A COOL INTERACTIVE MAP, TOO!

The map areas correspond to zip codes. Click on each for a summary of information about radon in the area. The map areas correspond to zip codes. Click on each for a summary of information about radon in the area.

Radon is dangerous. I think just about everyone knows that. But how dangerous is it? That’s where things start to get a little fuzzy. A friend and colleague recently endured a few months of radon poisoning with almost deadly results. This can happen to anyone that lives in a home with exposure risk. It’s important to understand this deadly gas, why you should be aware of it, and how to mitigate the risk to you and your family.

The State of Oregon publishes an interactive map of indoor radon risk levels that was recently updated. This is a useful tool, but be aware that no matter the risk level in your area, you can still encounter a radon problem.

SO WHAT IS RADON?

You can’t smell it, see it, or taste it. It’s literally radioactive. It is the second-leading cause of lung cancer in the United States. But what in the world is this stuff and why does it want to kill us? Let’s go into geek-speak for just a second.

Not the best illustration, but it Not the best illustration, but it’s colorful!

Radon is a colorless, chemically-unreactive, inert gas discovered in 1899 partly by Ernest Rutherford and in 1900 partly by Friedrich Ernst Dorn. It is 9 times denser than air, which is an important factoid to remember. It easily penetrates almost any material in a building, including sheetrock, concrete block, wood paneling, and most insulations.

Radon is naturally occurring in the ground and is the result of the breakdown of uranium present in soil, rock, and water. It occurs in several isotopic forms, of which radon-222 occurs most frequently. When this gas is released into the environment, it results in the formation of decay products that are radioisotopes (a chemical element that has an unstable nucleus and emits radiation during its decay to a stable form) of heavy metals (polonium, lead, and bismuth). These decay products can easily be inhaled because they rapidly attach to other airborne materials (like dust). It also may be ingested if it is highly concentrated in groundwater (well water), but the inhalation of radon is of higher concern.

WHAT ARE THE SYMPTOMS OF RADON EXPOSURE?

Respiratory problems are the most common signs of radon-related distress. These problems can include: a persistent cough that doesn’t get better, difficulty breathing, chest pains, the coughing up of blood, wheezing, hoarseness and recurring respiratory infections such as pneumonia or bronchitis. Radon exposure can lead to lung cancer.

A lesser known symptom of radon exposure is neurologic issues. Anxiety, memory loss, and depression could be a sign of radon exposure. However, brain health and function issues have many, many other possible causes, so this is not a symptom often mentioned.

Serious effects from high radon levels are cumulative over a long period of time. It’s important to periodically test for radon, but the presence of high radon levels in your home or a home you are thinking about buying is not a reason to panic.

WHERE DOES RADON OCCUR?

Radon is found in every state in the country. If you take a look at the map and find that you are in an area that is considered low-risk, you still may encounter a radon problem. It often enters the home through cracks in floors, cracks in walls, gaps around service pipes, joints between floor and walls, gaps around drains/pipes, etc. You may have no problem at all with radon while your immediate neighbor is dealing with extremely high radon levels.

HOW DO I TEST FOR RADON?

Okay, so this vat is 100% more like the stuff the Joker falls into than it is like radon, but I Okay, so this vat is 100% more like the stuff the Joker falls into than it is like radon, but I’m running out of visuals, here.

Short term, long term, and continuous tests are available for radon. Tests should be conducted in the lowest livable area of your home (remember how radon is denser than air?). If you are considering selling your home, I highly recommend conducting a short term radon test before listing the home on the market. It doesn’t cost much and is very much worth knowing the results before you’re in the middle of a transaction!

Most people start with a short term test to determine whether or not further testing is necessary. The test takes between 2-7 days and are then mailed to a lab to determine the results. These are available at most home improvement stores and online.

Long term tests measure radon levels between 90 days and a year. They are more accurate than short term tests because radon levels can vary significantly from day to day and month to month. These tests are usually available through state agencies and online retailers.

Continuous radon testing devices plug into an outlet and can be used for both short and long term testing. They will give you a running average radon level. These are available from online retailers such as Amazon.

Home buyers: It’s important to note that if you purchase a home in summer and conduct a radon test, you should conduct another test in winter when radon levels are more likely to be an issue.

SHOULD I TAKE ACTION?

One out of every 15 homes in the U.S. have radon levels that should be lowered. Fortunately, reliable techniques exist to reduce radon levels in homes so that almost any home with high radon levels can be fixed. If you have a radon problem, you can hire an experienced radon contractor or accomplish the repairs yourself.

The EPA recommends doing a second test if an initial short-term test registers 4 picoCuries per liter (pCi/L) or higher. A long term test is ideal, but you can perform a second short term test if you need results quickly. If the second test results in levels higher than 4 pCi/L, consider taking action to mitigate radon levels in the home.

WHAT CAN I DO TO MITIGATE RADON IN MY HOME OR REDUCE RISK?

Ventilation = good Ventilation = good

It does take more than just sealing cracks in the foundation to mitigate radon risk and/or exposure. Active soil depressurization or fan and exhaust systems have proven to be cost-effective and reliable.

Radon that escapes out into the air is not a problem as it quickly becomes diluted. Therefore, ventilation is key. Ventilation can be increased through opening doors, windows, and vents. Many people like to block their crawlspace vents in winter and/or install additional insulation in their crawlspace. Blocking crawlspace vents provides very minimal energy savings so unplugging these vents and possibly moving some insulation around may be all it takes to mitigate a mild to moderate radon problem. A heat recovery ventilator (air-to-air heat exchanger) can also be installed to increase ventilation.

All information above is provided for educational purposes. It is always recommended to consult a radon professional if you have any concerns about radon in your home.

– Brandi Whitaker

Oregon Tenant Protection Bill

Posted on by Alison Derse

This seems to be a subject much talked about amongst real estate agents, property managers, landlords, tenants, and homeowners (i.e. everyone). Yet, if you Google “Oregon tenant protection bill” or “Portland tenant rights bill”, all you’ll get is a few cut and dry articles from the Oregonian and other local news blogs and not much else. Most of what you’ll see will be about other legislation that has already passed.

What are we afraid to talk about? I’m a Portland area real estate agent and I eat complicated, controversial topics for breakfast. Okay, no, I usually eat eggs for breakfast. Sometimes cereal. Occasionally a snack bar…

But that’s beside the point. Let’s boldly go where few have gone before.

The original version of this article can be found here.

Boldly blogging where no one has blogged before. Boldly blogging where no one has blogged before.

The housing shortage is driving legislation.

People are passionate about this subject because Portland is in a housing shortage. We need approximately 24,000 units to meet demand (read my blog about all the people moving here). Barring economic catastrophe, a housing shortage will always cause home values to rise and rents to increase. This places undo pressure on tenants and home buyers, while current homeowners get to watch their net worth rise and landlords have the opportunity to raise rents.

The only real solution to a housing shortage is to build more housing but of course we only have so much space available. But, hey, we’re Portlanders, and if we can find a weird way to help solve this problem, by golly, we’re gonna leap down that rabbit hole.

Multnomah County and Enhabit (no relation to Inhabit) are launching a pilot project called “A Place For You”. It aims to build ADUs (accessory dwelling units or “tiny homes”) in Portland resident’s backyards. These will be used to house homeless families rent-free for 5 years in exchange for a tax abatement to the property owner. After 5 years, the homeowner gets to keep the ADU to be used as they see fit. The pilot project is starting with just 4 units but over a 1,000 homeowners have expressed interest.

It almost sounds like an episode of Portlandia.

It It’s okay if you don’t know what this is. What am I saying? No, it’s not okay. It will never be okay. Things will never be the same again!

This is an interesting idea but creativity isn’t going to get us very far in the short term (and that doesn’t get politicians re-elected). The housing shortage is enough of a hot topic that politicians such as Ted Wheeler and Tina Kotek have thrown their weight toward repealing the statewide ban on rent control (although last year Ted Wheeler said he supported this for the state but not in Portland, where he would adopt other measures first, he seems to have now changed his position). In the election last year, Chloe Eudaly upset incumbent Commissioner Steve Novick despite having no political experience. Her grassroots campaign for the Portland City Council was focused entirely on tenants rights.

Now that we’re firmly into 2017 it means that politicians are putting their legislation where their mouth is.

In Portland, new rental ordinance is already in place.

Before we talk about the infamous House Bill 2004, let’s quickly take a look at the tenant protection ordinance that took effect back in February this year. This was an emergency ordinance brought forward by Chloe Eudaly and Ted Wheeler that was passed unanimously by the Portland City Council. It requires landlords to pay moving costs for tenants that are evicted without cause or for tenants that must move because rents have been increased by more than 10 percent in a 12 month period. The one exemption is for landlords that have only one rental unit. Moving costs paid by the landlord range from $2900 to $4500 depending on number of bedrooms.

Attorneys are already dueling in court over the legality of this ordinance but for now it stands.

Not that kind of duel. Although court cases might be more interesting this way.  Not that kind of duel. Although court cases might be more interesting this way.

This brings us to the Tenant Protection Bill (HB 2004) that was recently passed (31 in favor – 27 opposed) by the Oregon House of Representatives and has now moved along to the state Senate for review. There are a lot of nuances to this bill and several compromises were made to get it this far. Remember, this is NOT law yet.

Here’s a few salient points of the pending bill.

  1. After 6 months, no-cause eviction of tenants renting month-to-month are banned (before 6 months no-cause eviction of tenants renting month-to-month are allowed with 30 days written notice).
  2. After 6 months, evictions are allowed for month-to-month (30 days after the effective date of this legislation) and fixed term tenants (immediately after the effective date) with 90 days written notice for specified reasons, such as renovations, repairs, when the property is scheduled to be demolished, or for the sale of the property. Landlords must pay one months rent to cover relocation expenses in this case. (However, if the reason is repairs/renovations, the landlord must offer a new rental agreement back to the evicted tenant before other potential tenants.)
  3. After 6 months, evictions are allowed for month-to-month and fixed term tenants with 30 days written notice for cause. (Examples of cause: non-payment of rent, violation of drug or alcohol program, pet violation, substantial damage, etc. There are additional provisions that govern “cause” and timelines that a landlord should be fully aware of.)
  4. If the landlord terminates the tenancy in violation of the provisions, the landlord would be required to pay 3 months of rent to the tenant in addition to potential damages. This applies to both month-to-month (30 days after the effective date) and fixed tenancies (immediately after the effective date).
  5. Exceptions to the above exist for landlords that own four or fewer rental units or for landlords that live on the property and own two or fewer rental units.
  6. The bill also allows cities and counties to adopt their own rent control program which effectively abolishes the statewide ban on rent control.
  7. An exemption to rent control is provided for any new residential development for a period of 5 years from the date of issuance of the first certificate of occupancy.
  8. If a city or county passes a rent “stabilization” program, it must provide landlords with a fair rate of return and a process for the the landlord to petition for permission to increase rent in excess of the amount allowed in the program when needed to achieve a fair rate of return.

The rubics cube of government. Nuff said. The rubics cube of government. Nuff said.

A few of the compromises that allowed this bill to pass include the exemption for landlords that own 4 or fewer units, reducing mandatory relocation assistance down to one month (originally the bill called for three months even when the eviction is for an allowed reason), and the 5 year exemption for new residential developments.

What does this mean?

So, does this bill seem sensible? Why would anyone object to it? Why was it passed on such a slim margin and why is the battle for it in the senate expected to be difficult?

I think the biggest concern is with point 6 – 8. Rent control is only fiercely debated when you don’t talk to economists. Meaning, economists largely have a consensus of opinion that rent control results in a reduced supply of property to the market (which of course drives rents and home prices even higher).

Wait a second, reduces the supply? Didn’t I just say earlier that this problem is a result of a housing shortage?

Based on historical data, most economists viewpoints, and studies that have been conducted on rent control, enacting rent control (or “stabilization”) causes housing shortages to become worse than if no controlling measures were put into place. I don’t like it when legislatures pass bills with provisions that aren’t supported by the data. (Read this article and this one and this one to gain some perspective on what economists think about rent control)

I don’t think the 5 year exemption for new construction or vague “fair rate of return” language is enough to curb the negative side effects of rent control but politicians only have so many tools in their belt when in comes to housing. Those tools tend to be very blunt instruments. Even though a screwdriver might be needed, we’re instead getting a hammer. Or maybe a mallet. Or maybe even a sledgehammer. Except I don’t think Peter Gabriel is the solution here.

This analogy is too good for a caption. This analogy is too good for a caption.

The merits of points 1 through 5 above really come down to your point of view. I won’t delve into those here other than to say that I see both the positive and negative ramifications to being this restrictive about evictions but I’m open minded about the ideas.

HB 2004 hasn’t passed the senate yet (it was just referred to the Human Services committee). I’ll be following along to see if it passes and is signed by the governor, or if it dies, or if it becomes reborn as something more palatable. This is an interesting time for anyone that is a landlord or tenant!

Do you own a rental property? If so, what are your plans? If this bill passes, much of the legislation will go into effect either immediately or within 30 days. I’m a Portland area realtor and can assist you in deciding what course of action makes sense for your investment. Contact me if you have questions.

– Brandi Whitaker

Online Real Estate Scams

Posted on by Alison Derse

Hold onto your money, folks, and verify, verify, verify.

Online scams nowadays often have more to do with social engineering than serious hacking. But protecting your data is very important, too. Online scams nowadays often have more to do with social engineering than serious hacking. But protecting your data is very important, too.

So this is a super exciting topic, right? I’ve attended enough classes on information security to know how quickly people tune out (about 47.8 seconds). We’re all vulnerable, though, so let’s keep on top of this crazy world.

THE WIRE FRAUD SCAM

How it works
This one has been around for a couple of years and there are several different variations. However, the end result to a client during a real estate transaction is virtually the same. You receive an email from what looks to be your title company or realtor (it may have come from a hacked email address or be a “spoofed” email address). It includes wire instructions related to the house that you are purchasing. You go ahead and wire the amount to the account details shown because why wouldn’t you? Unfortunately, that account you just sent your money to was actually an account that the scammer had access to.

Don Don’t let go of your control! (haha, see what I did there)

Scammer = $, You = 🙁

How to avoid the scam
Always, and I mean always, verify wire instructions via a phone call to someone you trust (the title company if you are familiar with the agent, your realtor, or your loan officer). Don’t use any contact information contained in the email with the wire instructions.

Fictitious Property Scam

This one mostly impacts people that live out of state looking to purchase or rent a property but there are local variations, too. It is especially prevalent in hot markets. I could see this really starting to impact Portland. Take a look at my blog about all the people moving here.

How it works
Scam artists copy photos of previously listed homes and create a fake property profile. They post to websites that allow for basic, unverified user accounts such as FSBO (for sale by owner) websites. Prospective buyers/renters call the information listed and, depending on the variation of the scam, may go so far as to make an offer to purchase/rent the home.

In the case of properties for sale, the interested buyer moves forward in wiring funds or mailing a cashier’s check for earnest money (an amount often sent with an offer to purchase to prove how “earnest” the buyer is in their desire to buy the home). After funds are sent, the online property profile vanishes. In the case of rentals, the scam artist asks for an upfront “application fee” which promptly disappears along with the online listing. This scam can also happen on popular websites like Zillow, Trulia, or Craigslist. These sites aggressively crack down on scam accounts but there will always be some that slip through.

For sale online in southeast Portland for 0,000. Just take my money, already. For sale online in southeast Portland for $450,000. Just take my money, already.

How to avoid the scam
For home buyers, always work with a buyers agent. Attempting to buy a home without representation, especially when you live out of state, can lead to a whole host of problems (we’ll save that for a future blog). Of course, I’m completely biased in this opinion because I’m a realtor but when it comes to the buyer side of things, there’s very little to lose by having someone represent you.

Other things you can do if you’re a renter or you just don’t want to hang out with your friendly neighborhood realtor:

  1. Check the tax records. Most places have some type of online public access to check this (locally that would be PortlandMaps) but if not, lookup the local Tax Assessor’s office and give them a call. If the name on the tax record doesn’t match the property profile, slowly back away before turning around and running. Figuratively speaking, of course. Don’t, like, leave your computer behind in a public place.
  2. Ask for the property address then look it up on your favorite maps program then check the street view. Does it match the picture? No? Methinks I smell a rat.
  3. Contact a local realtor and ask them about it. I am sure that any who respond will be happy to help you find information about the house even though they don’t represent you. Who knows why. I guess realtors are just super friendly that way. Then, if they seem like smart people that you could hang wallpaper with for an hour or two, maybe consider interviewing them…?
  4. Check for odd grammatical and spelling errors along with weird turns of phrase. Evildoers are getting better at this but are rarely perfect. Also, if the listing details clearly don’t match what the pictures of the place look like or the price is entirely too good to be true, it is very likely a scam.

You knew this post had to include a picture of the ubiquitous hoodie-wearing hacker, right? You knew this post had to include a picture of the ubiquitous hoodie-wearing hacker, right?

So there you are. These scams will now be successfully avoided by everyone I know. But, I feel like there’s more to say about protecting yourself online that goes beyond real estate. Since this post has been relatively short for me, why not keep going? Just a disclaimer: no matter what you do, there is never a way to be completely protected.

Having made that cheery statement, here’s just a few pieces of advice for greatly reducing your online vulnerability that I find myself frequently dispensing and are just as frequently ignored:

  1. Keep ALL of your devices up to date which means update everything as soon as a new release comes out. That means Apple users, too (the days of thinking that Apple products aren’t vulnerable are over). No, do not wait a week or two to see if you like the feel of the update. Vulnerability patches are entirely too important to wait.
  2. Use a random password generator for everything. Store them in a password keeper (check out LastPass and Dashlane). Make sure that the password you use to access the password keeper is really good (like a passphrase). Yes, there are some downsides to using a password keeper and there’s always debate about the safety of keeping all your passwords in one place. However, the alternative most people use is having one, maybe two, passwords for EVERYTHING. To me this is a lot riskier than relying on a very successful company to maintain sophisticated software that protects your data.
  3. If you do not want to use a password keeper then make sure not to use the same password for everything. Please use a different password for all of your financial accounts. At least in this manner, if one of your non-financial passwords gets cracked, they can’t use it to drain your accounts. Make your financial passwords as difficult as possible (which means more complex than a word followed by a digit or two.) If you find yourself copying your passwords onto Notepad or Word then it’s time for a password keeper.
  4. Do not click links in emails unless they are from a trusted source, no matter how interesting they look. Also, be careful of “attachments”. A recent scam involves taking a screen capture of a PDF or other attached document and inserting it into the email. This way it looks like a legitimate document to download but is actually a link to a site that will install malware on your computer.

– Brandi Whitaker