RMLS Goes Green

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RMLS, the search database for Portland Metro and SW Washington real estate has gotten a little greener. It is now possible to search for whether a home is green certified and if so, what certification(s) it has. It will probably take some time for the potential of the change to be realized. First, Realtors with listings that meet the requirements are going to have to enter the information into the database (that should happen to day but reality says otherwise). Then client-side search engines are going to have to be updated. That may take some time. Finally, we’re going to have to see whether being green is a deal breaker or an added perk.

If there are two identical houses side by side and one is green certified and the other is not and they are both priced the same, the choice seems pretty clear. If one has solid surface counters and other visual upgrades and the other has laminate counters but is green certified, which house wins?

Earth Advantage has both new construction and remodel provisions. I’ve emailed them to see if the remodel portion can be done retroactively. If a home was remodeled to their standards and for whatever reason, was not certified as the project was done and cannot be added now, the RMLS field is going to “punish” those houses and skew the effectiveness of being able to compare properties. I’ll report back when I hear back.

Categories: Portland Real Estate General

Lead Based Paint

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Lead based paint is a potential serious issue with older homes. Any home built prior to 1978 is at risk. The cliff note version about lead based paint is do not eat it. Pets and children are at highest risk. Peeling paint is often found around old windows. It chips off of sills and flakes off of window sash cords. Remodel jobs can also cause the release of LBP.

The EPA has put out a lead based paint pamphlet. Oregon real estate law includes a lead based paint disclosure and a provision in the earnest money allowing the buyer to inspect for lead based paint. The disclosure requires that the buyer receives a copy of the pamphlet.

This is not a recommendation but experience: I have yet to see a buyer complete a lead based paint test on a potential purchase and I have never seen a seller disclosure that stated that the seller had any knowledge of lead based paint or had ever tested for it.

Anybody have any experience with lead based paint? Good or bad?

Categories: Portland Real Estate General

Home Buying Seminar

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Next Monday, the 26th, we’re holding a home buying seminar at one of our listings. The program will be from 6:30 pm to 8:00 pm and we’ll take questions and answers after that. On hand will be Mike Huppi from the Home Team Inspections, Marisa Henman from Transnation Title, David Pouliot from Prime Financial, and the Turners.

The goal is two-fold. First, is to gain exposure to the listing. Consider this a nontraditional open house. Second it is aimed at being educational. Regular readers know that we firmly believe in educating clients as much as possible so that they can make informed decisions and that we do not practice dual agency. If one of the attendees decided that they want to make an offer on the house, we would refer them to another Realtor. Buyers and sellers should be represented by separate agents.

Please RSVP if you would like to attend. Here is the complete event flier(189.8K).

Here is the complete listing information for 1907 SW Carolina St..

Categories: Portland Real Estate General

California V. Oregon Real Estate

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I had wanted to post this as a reply to comments on Portland Real Estate Market Today vs 2006 but it won’t let me post the table as a comment.

I can see the stock broker crying in his milk now. "I bought a $400,000 house
five years ago. Last year it was worth $1 million dollars. Today, it’s only
worth $960,000. CURSES!"

The first three columns of the table below are from the
Office of Federal Housing Enterprise
Oversight
.  They show the House Price Index for California and Oregon by
quarter from 1976.  The second set of figures is my math on the value of
$10,000 invested in 1976 based on the appreciation numbers provided.

One of the key points of interest for me is from 1999, since then, California only had two
quarters of single digit appreciation, Oregon didn’t hit double digit apprciation until the third quarter of 2004.  That’s why Oregon has had a much softer landing.

Click keep reading to see where your $10,000 would have gone. Moral of the story? Real estate is a long term investment and has been a good one over the last thirty years. Choose the wrong time to “day trade” real estate and your gonna get bit.

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Categories: Portland Real Estate General

The Questions You Should Ask Your Realtor and Our Answers (Revised 2.20.2007)

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We published post about a year ago. This is the updated version of the same. If we don’t answer your question here, feel free to ask.

Q: How has your team evolved since the last update?
A: We are now assisted by Lisa Nylander and Susan Horvat. Lisa is a licensed Realtor in Portland and works as a buyer’s agent. She also manages our office. Susan is licensed and works out of Stayton to serve our clients around the Salem area. She is a member of the Willamette Valley Multiple Listing Service.

Q: Are you a full service brokerage?A: Yes. We work for Prudential Northwest Properties, the largest locally owned real estate firm in Oregon. We do not offer discount commissions nor discount service.

Q: How long have you been in real estate and how many transactions have you closed?
A: A combined 10 years. In the last couple of years, we’ve closed more than 100 transactions. Real estate is our full time profession.

Q: What education and real estate designations do you have?A: Charles and Jenny both have MBAs. Charles is e-PRO certified and Jennifer is an Accredited Buyer’s Representative. We both completed the final part of the three part Graduate Realtor Institute program. Lisa and Susan are newly licensed and have not needed to complete any continuing education yet.

Q: How do you give back to the community?
A: Charles is on the Jr. Board of the Oregon chapter of the Make-A-Wish Foundation and Jennifer is on the Board of Fruit and Flower Child Care Center. We support these charities and Transitional Youth with our charitable dollars.

Q: Do your represent both buyers and sellers?
A: Yes, but not in the same transaction. We do not practice dual agency where we represent the buyer and seller. If we list your property and find a buyer that needs representation we will refer them to another Realtor. We work for you. If we are working with you as a buyer’s agent, the same is true.

Q: I am a first time buyer. Can you help?A: Yes, we can take you through each step of the transaction including mortgage, title and escrow.

Q: Do you use a contract with buyers?
A: Yes. Our Buyer Service Contract clearly defines what you can expect of us and what we expect of you. We prefer to work with a few committed clients rather than a large pool of potential clients. We don’t work with everyone that wants to work with us. We work with serious, qualified buyers and realistic sellers! In most cases, the seller of a listed property pays both the buyer and listing agent’s commissions so the buyer does not pay their agent. In cases where the seller is not offering our minimum commission, the buyer may have to make up the difference. It is clearly outlined in our Buyer Service Contract and we will let you know if a specific property falls into this category before we show it. We do not boycott listings based on the offered commission. It is up to the buyer to decide if they want to see the listing. The contract is a standard Oregon Real Estate Form. We did not make it up!

Q: How do you use technology? What if I still use a typewriter?
A: We can use as much or as little of our technology to meet your needs. We have the ability to execute a near paperless transaction which is cutting edge in our industry. We can access MLS information from our cell phones and tablet PCs. You can sign documents right on the screens of our computers. Email is delivered to both our computers and cell phones. We can convert any paper document into a format that can be emailed. We provide access to some of the most advanced technology in the industry. Our website has powerful search tools and allows you to save searches and favorite properties.

Q: Do you know where you are going?
A: Yes! Our vehicles all have GPS navigation

Q: What properties will you show me?
A: Properties that we think meet your needs and properties that you search out on your own. We will show properties listed by all brokerages that meet your criteria. We’d like to show about six properties in an outing. If we’re not finding the right house, we need to adjust the search.

Q: What about For Sale By Owners?
A: We will work with you to buy a FSBO. If the seller is offering “courtesy to brokers” at or above our minimum commission level, it is just like buying a listed property. If the seller is not paying commissions, the buyer may have to pay. We cannot guarantee that we know about all FSBO properties that meet your requirements. There is no way to know how they are marketing their property and they are not in RMLS system. If you are a FSBO and are having trouble selling your property, we have to tools to sell your house for top dollar as a listed property.

Q: How do I reach you? Do you work weekends?
A: We are available by email and phone the majority of the time. We both have toll free numbers that ring to our cell phones. Faxes and emails also come to our phones. Our assistant is in the office Monday through Friday. We don’t have set hours of business but work hard to make your transaction as smooth as possible. When we do get a chance to get out of town, we make sure that our business is covered by another agent in our office.

Q: Where are you licensed?
A: Charles is licensed in Oregon and is a member of RMLS. Jennifer is licensed in Oregon and Washington and a member of both RMLS which covers the Portland Metro area and Southwest Washington. She is also a member of WVMLS which covers the Salem area. Lisa is a member of RMLS and Susan is a member of WVMLS. Both are licensed Realtors in Oregon. Outside of these areas, we can help you find an agent that will be able to assist you.

Q: How much is your minimum commission charge?
A: That depends. We have to consider a multitude of factors when deciding what an appropriate commission rate is. Every transaction is different. Since it is a percentage, not flat fee or hourly based, we might actually lose money if we had a low dollar transaction like bare land where we’d be perfectly happy with the same percentage on a million dollar home.

Categories: Portland Real Estate General

Dishes for Wishes

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What does this post have to do with real estate? Nothing. I am on the Junior Board for the Make-A-Wish Foundation of Oregon. This Thursday is the inaugural Dishes for Wishes presented by Sysco. Please join us at one of the participating restaurants by making a reservation for Thursday night and let them know that you are dining out for Dishes For Wishes.

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Categories: Because I Can

Cost of Admission to a Neighborhood

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I’ve been using the phrase, “cost of admission to the neighborhood” for the last couple of weeks as we have two listings that have the smallest square footage for their respective areas. Really what were talking about is that the land value has a higher ratio when comparing a small house to a big house on a similar sized lot.

If the land value under the house is $100,000 and the house is 1000 square feet, there is $100/SQFT attributed to the average cost per SQFT of the house. If the neighbor’s house is on the same lot but 2000 SQFT, the land only contributes $50/SQFT to the cost per square foot of the house.

The result is that smaller houses look bad when looking at the “comps,” the other houses in the neighborhood that have recently sold or are on the market. You’re saying “well they’re not comparable then are they?” True but you’ve got to have something to compare to and using a 1000 SQFT home in NE is not going to comp a 1000 SQFT in Lake Oswego even if they are statistically built identically.

A house looks bad compared to the cost per square foot of other houses in the neighborhood may still be good value. You can’t just look at the numbers.

Categories: Portland Real Estate General

Cubic Square Feet?

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Picture a 700 square foot condo. It’s about 15×45. It’s a one bedroom, one bath with some living space. It has high end a appliances, solid surface counters, beautiful hardwood floors and great views.

Next door is a 700 square foot condo. It’s about 15×45. It’s a one bedroom, one bath with some living space. It has high end a appliances, solid surface counters, beautiful hardwood floors and great views.

Both condos are listed for $210,000 or $300 per square foot.

Which one is a better buy? Either one, they are the same.

Actually they’re not but you can’t tell that from the above or an RMLS listing. The only discernable difference is that the first has 8 foot ceilings. That is 5600 cubic feet of condo. The second has 10 foot ceilings. That’s 7000 cubic feet of living space.

If all we do is look at the square footage, the condos are identical. Take into account ceiling height and the second unit is 20% bigger than the other. Now granted, we can’t place a sofa in that extra two feet of space but the reality is we do feel and live in that extra space. It also changes your comps. The first condo is listed for $37.50 a cubic foot, the second, $30.00.

It’s not as easy as adding a height field to the listing. What do you do with a drop ceiling, a lofted space or an open foyer?

Discuss!

Categories: Portland Real Estate General

Portland Real Estate Market Today vs 2006

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Clearly the Portland real estate market has changed in the last year. The question has been “how much?” The table below is data culled from RMLS. It compares January 2006 to January 2007.
Area 141 = North Portland, 142 = NE Portland, 143 = SE Portland and 148 = West Portland (both SW and NW).

Total Sold Avg Selling Price Avg DOM
2007 January
141 76 $               255,830.00 60
142 194 $               284,241.00 59
143 192 $               261,842.00 56
148 180 $               390,856.00 62
642 $               298,192.25 59.25
2006 January
141 89 $               238,853.00 41
142 176 $               277,757.00 36
143 298 $               229,712.00 42
148 169 $               429,947.00 51
732 $               294,067.25 42.5

Southeast in 2006 had a stellar month. In fact, in 2007 more homes sold in NE and West Portland than in 2006. Overall though, Jan. 2007 saw 13% few homes sold than in January 2006 and time on market was 60 days compared to 43.

Different areas faired differently as far as appreciation:

Average Selling Price
141 142 143 148
2007 $255,830.00 $284,241.00 $261,842.00 $390,856.00
2006 $238,853.00 $277,757.00 $229,712.00 $429,947.00
107% 102% 114% 91%

This is a look at two months a year apart. It may be too short of a period to give an overall picture of the market. This year’s snow shut down real estate for almost five days.

Categories: Portland Real Estate General

Oregon Real Estate, Oil Tanks and the DEQ

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First there were wood and coal burning stoves. Then oil heat became the “standard.” Today it is natural gas. Oil furnaces require oil tanks. The tank can be in one of three places. Outside above ground, below ground or in the basement. There may be soil contamination around an above ground tank but where we get scared is the inground tanks.

The Department of Environmental Quality oversees oil tanks and their decommissioning through their HOT program. This is a complete list of resources regarding oil tanks. The highlights are linked below.

Oregon law provides the following when it comes to oil tanks and real estate:

466.878 Required actions when use of underground heating oil tank is terminated; requirements at time of sale of real property containing abandoned heating oil tank. (1) When the use of an underground heating oil tank is terminated because the tank is replaced or an oil-heated building or residence is converted to a different primary source of heat:

(a) The property owner shall ensure that the underground heating oil tank has been emptied of oil, which shall be appropriately managed.

(b) The vent line shall be left in place if the tank is not decommissioned.

(c) The person installing the new heating equipment shall advise the property owner that it is illegal to disconnect a heating oil tank without pumping out the tank and that there are practices recommended by the Department of Environmental Quality for decommissioning a heating oil tank.

(2) When real property is sold, the seller shall ensure that any abandoned heating oil tank that is known to be on the property has been emptied of oil, which shall be appropriately managed, and the seller shall provide to the buyer documentation showing that the tank has been emptied. [1999 c.880 §6]

HOT Weblinks:

Basic DEQ InformationBasic Tank Information

Basic Homeowner HOT Program Information

Basic HOT Service Provider Information

HOT Frequently Asked Questions (FAQs)

HOT Average Costs


Currently Licensed HOT Service Providers


Contractor and Homeowner Decommission Report Preparation Guidance


Contractor and Homeowner Soil Matrix Report Preparation Guidance

Categories: Portland Real Estate General


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