Energy Efficiency and the Historic Home

Green Renovation in Seattle, WA

Just because your home is older or historic, does not mean it is energy-inefficient and it doesn’t mean that you have to replace all the original windows with vinyl.  This Saturday, the Architectural Heritage Center is featuring a program lead by Joy Sears, of the Oregon State Historic Preservation Office (SHPO), offering easy and relatively inexpensive ways to make your home more energy efficient while keeping its historic character intact. Whether you want to do-it-yourself or hire someone to do the work for you, this workshop will provide you with the information needed to get the job done right. You’ll even learn about contractors who specialize in historic repairs and suppliers of energy efficient products.

Joy has served as a Restoration Specialist for the Oregon SHPO since 2005. Prior to joining Oregon SHPO, she worked as a Restoration Specialist for five years with the South Dakota SHPO. She received her masters in Historic Preservation from the University of Oregonin 2001, where she worked on the restoration of Villard Hall, a National Historic Landmark.

COURSE INFORMATION 
Date:Saturday, February 20th
Time: 10 am – 1 pm
Cost: $10 per person
Location: Architectural Heritage Center (AHC)
701 SE Grand Avenue
Portland, OR  97214
Register on-line or call 503-231-7264

If you’re not able to attend this course this coming weekend but have an interest in preservering your historic home while making it more energy efficient, check out these additional resources or contact the AHC for local guidance.

• National Trust for Historic Preservation
• Repair or Replace Old Windows: a visual look at the impact
• General Weatherization Links & Resources

Remember, when you are thinking about making your home more energy efficient to be more “green” – think about your overall “green” impact.  An existing home is often more green when you think about the fact the materials are already in place and the energy to create the structure has already been exhausted.  Restoration is often the more “green” choice.

~Kori

RMLS Market Action Report – December 2009 & Annual Wrap-Up

The RMLS Market Action stats have been released for December 2009 with an annual wrap-up for 2009.  Closed sales were up by 52.6% in December 2009 compared to December 2008, which is to be expected since we spent half the month of December 2008 under a sheet of ice and snow.

Looking at the stats for 2009 vs. 2008, you might think we didn’t come that far in the market but let’s look at some of the factors.  Total sales volume (acutal $$$) in 2009 was down about 12% when compared to 2008 – although that sounds like a depressing fact we must take into consideration the impact of the first time home buyer tax credit.  Effective, April 2009, the first time home buyers drove the market for the majority of 2009.  The 2009 tax credit had an income limitation of $75,000 for an individual and $150,000 for a couple filing jointly driving the sale of sub-$300,000 properties.  

I expect we will see an increase in the sales volume in 2010.  The home buyer tax credit will continue to play a significant role in the real estate market; however, the 2010 credit has some significant advantages – one, first time home buyers can now make up to $125,000 as an individual and $225,000 as a couple filing jointly to qualify for the $8,000 tax credit; two, the credit was extended to current home owners who have occupied their primary residence for the last 5 years – current home owners may purchase a new primary residence in 2010 (up to $800,000) and receive a $6,500 tax credit.  The caveat, buyers must be under contract (an accepted offer) by April 30, 2010 and close by June 30, 2010 to collect the credit.

As in 2009, the tax credit may be extended; however, I wouldn’t count on it until it actually happens.  It’s like depending upon a bonus you think you might be getting from work to find out the day before checks would typically be cut that the company is not offering bonuses at that time.  Coupled with the tax credit nearing is current deadline, analysts are also expecting interest rates in 2010 to rise. 

The stats might look frightening when just looking at the numbers and in some areas the market is still very distressed.  That is why it is so important to work with an experienced Realtor. 

Over the holiday I showed a client a property off of Alberta, the house was amazing – 4 bedrooms, 2 baths, new Warsbo plumbing, duel flush toilets, tankless water heater, new energy efficient washer & dryer (included), original charm throughout, etc… on the market for only 3 days when we toured the house.  We had been looking for quite some time and I told my client, this one is going to move quickly.  We put in an offer, slightly below asking price – the next morning the listing agent called to say another offer came in at full price.  Because we had presented a strong offer (it’s not always just about the price) the seller opted to counter our offer at full price before responding to the second offer.  We accepted – that was Christmas Eve.  Over the course of the weekend two more offers came in over list price.  You need to know the market of each specific neighborhood. 

I heard someone comment the other day, ‘yeah, offer 5% below the asking price – that’s standard in this market.’  First of all, this person was not a Realtor and second, anyone making a blanket statement like that has no clue about what is happening in the market.  Moral of the story, the market is improving – just look at the ”Inventory by Months” chart on the first page of the RMLS Market Action Report – we have half the inventory we had in December 2008 and almost 2/3 less inventory than January 2009, since January 2009 we have seen inventory levels decrease exponentially.  If you are on the fence about buying a home and you have a stable income, now is the time to buy.  Take advantage of the tax credits and great interest rates.

~Kori

RMLS Market Action Report – November 2009

The November 2009 RMLS Market Action stats came out this morning with more positive market news.

Closed sales were up 72.4% compared to November 2008 and pending sales rose 19.9%. New listings dropped 7%. 

The 72.4% same-month increase in closed sales is the largest percentage increase on record for the area. The previous high was 56.9% in December 1996.

So I’m not accused of being a “Polliana”, when you compare closed sales in November 2009 over October 2009 we saw a 10.7% decrease.  I’m sure everyone has their theories, personally, I think the uncertainty of the First Time Homebuyer tax credit played a significant role.  We see a decrease in average sales price from November 2008 to November 2009 by 11.4% and a decrease month-over-month by 3.6%.

Does this mean home values are still on the decline?  Yes, no, maybe-so.  Here’s something that has always remained true in the world of real estate, it’s all about location, location, location.  The market is and always has been completely dependant upon area, not just what city/town you live in but what neighborhood within that city/town and where within that neighborhood (are you on a busy street or does your home have a view of downtown?).  The average sales price is down year-over-year because there are incentives for First Time Buyers which also cap the income for one to collect the tax credit.  There are still areas that are experiencing declines but ask yourself what was happening in those areas prior to 2006.

The market is the market – good, bad or indifferent.  The question is, do you want to be a home owner?  If you’re ultimate goal is to own a home, now is a great time to take that plunge.  Great rates and soft values in addition to tax incentives have created the perfect storm.  If you’re looking for a sign the market is turning, 72.4% increase in same-month closed sales is substantial.  If you continue to wait you just might miss the boat.

~Kori

Portland Perfect… Pretty Darn Close

I’m a local gal so many might say that makes me bias but time and time again “outsiders” have supported my theory that Portland is perfect… or at least pretty darn close.

I just came across an article in the December 2009 issue of Runner’s World which named Portland, Oregon the BEST, as in numero uno, running city in America.  Specifically for our “sweet trails” in Washington Park and along the Willamette River.  Also mentioned in this article, the Hood to Coast relay, as the best “other distance” race.

This made me think, I come across articles all the time that mention Portland as the BEST so do we live in the BEST city in America?  My personal opinion, yes!

Portland has been named amongst America’s Top Ten Green Cities, North America’s Most Bike-Friendly Cities, Top 10 Dog-Friendly Cities for 2009, America’s Best Cities 2009 and America’s Favorite Cities. My favorite article was America’s Favorite Cities by Travel + Leisure.  Portland ranked #1 for public parks and access to the outdoors… our “worst feature”, luxury stores (and even with that we were ranked 29).  As you look down the list of ranked features, Portland ranked #2 for athletic/active people and #4 for intelligence.  We ranked #2 for farmer’s markets, #3 for cafes/coffee bars and #6 for neighborhood joints; however, we ranked 29 again for big-name restaurants.

For this Portland native, Portland is perfect; however, if big name stores and national restaurants are more your style Portland is probably just a little too “small town” for you.  Having lived in New York City as well, I know it’s simply a matter of preference but this tree hugging, Dansko wearing, dog loving gal is perfectly happy in Portland, OR.

~Kori

Choose Local – The Oregon Local’s Loyalty Card!

The other night I was watching Live @ 7 on KGW, the new nightly news magazine that looks specifically at local events and topics.  Last week, they introduced me… a local girl and business owner… to a new “discount” card called Choose Local.

The card is FREE to the community and can be picked up at any of the participating businesses and then activated at the Choose Local website.

Please note: currently, the site does not fully function with Internet Explorer 7+ but if you click on the embedded links, you’ll go directly to the specific page or you can view the fully functioning site using Mozilla’s Firefox browser.

Get discounts on entertainment, home & garden, shopping, bars & nightlife, restaurants, travel & tourism, health & beauty, services and wine & brew businesses from Portland to Eugene. 

So why is it so important to “Choose Local”? 

Did you know… for every dollar you spend with a locally owned business 70% of that dollar goes back into the local economy.  When you spend a dollar at an out-of-state owned business 60% leaves the state.  The more money that stays within our community the better off we all are by creating our own local economic stimulus package – more money that stays in our community the greater number of jobs that also stay in our community.

So, let’s support our local business owners and help stimulate our economy by Choosing Local this holiday season and throughout the year!

~Kori

It Really Is All About The Shopping!

The National Symbol

Ever since I experienced my first Thanksgiving in this country, it has always been my favorite holiday.  The beauty of its simplicity is very appealing.  Sit down with friends and family and enjoy a feast.  Everybody is included, no presents to buy and very little associated commercialism.

However, one thing has always been a mystery, why is Thanksgiving celebrated on the fourth Thursday in November?  Other holidays that are tied to a particular day of the week are on the first day (Labor Day) or the last day (Memorial Day) and that seems to make sense, but the Fourth Thursday??? What’s up with that?

I have asked this question many times over the years and I have found that most Americans have no clue as to why, and moreover, most of them don’t seem to think it is even something worth worrying about, it just IS.

Maybe it’s an immigrant thing, but I had to find out.

So, I was watching the History channel last night and, lo and behold, there was an explanation.  Apparently, the whole story does revolve around SHOPPING.  Unbelievable!

My favorite holiday is tied to commercialism after all.

Turns out, good old FDR made a decision to countermand Lincoln and moved the feast up a week back in 1939 in order to give retailers an early start to the traditional Christmas shopping season which has historical kicked off right after Thanksgiving. 

Who knew?  Well the nice chaps at the FDR library did apparently.  Click here to read a very nice summation of the historic decision and then, on the Fourth Thursday in November, you can astound your friends and family with the facts.

GOBBLE, GOBBLE

- Maria

What Does It Really Cost to Buy a Home Today?

As you know, on November 6th, President Obama announced the extension and expansion of the homebuyer tax credit.

If this news has started you thinking whether this is finally the time to buy a home but you’re unsure if you can make it work financially, you are not alone.

Who qualifies?  How much do I need to put down?  Are home values really as good as people say?  Can I afford to buy a home in a nice neighborhood?  When do I get the money for the tax credit?  Etc… 

There are distinct differences between the recently passed tax credit and the original legislation. Stick with me for a few minutes and I will make an attempt to clarify the situation.

Let’s work through a little scenario – what would it really cost to buy this adorable house in Portland today?

First, I will tell you about the house, then I will run through a few financing options for you using actual loan program options.

SAMPLE PROPERTY

Click on Image To Search Additional Listings

Listed By: Esther Saulle-Simek – RE/MAX Equity Group 
Price $379,000
4 bedrooms, 2 full baths
2868 square feet
Built: 1927
Schools: Beverly-Cleary School & Grant High School

SOME ADDITIONAL DETAILS ABOUT THE HOME AND THE NEIGHBORHOOD

This adorable home is conveniently located: just blocks to an East/West MAX station and bus stops, nestled between the heart of the Historic Hollywood District to the West, Rose City Park and Public Golf Course to the East and Normandale Park (which also has an off-leash dog park) to the South, and minutes to I-84 for easy access to the airport, downtown or other major areas. 

Whether you have children or not, it’s advisable to purchase your new home in a good school district for stronger future resale value; both Beverly-Cleary (K-8) and Grant High School hold an “Outstanding” rating from the Oregon Department of Education.  Both schools rate above the norm when compared with other schools with a similar demographic, the overall district and the overall state on reading, mathematics and science.  At the high school level, Grant has a 91.5% graduation rate, compared to 84.0% statewide and a 2.2% drop-out rate compared to 8.4% district-wide and 3.6% state-wide. 

So, this sounds like a great house and a wonderful neighborhood BUT $379,000 sounds like a lot of money – how much would it really cost to purchase a home like this in this quality of neighborhood?

Contrary to the ads you may hear on the radio, or the on-line mortgage calculators you may have played around with – there is more that goes into what it will cost you to purchase a home than just your down payment and interest rate.  However, current interest rates are at historic lows hovering around 4.75% right now compared to 6% – 8% during the real estate “boom” of the early to mid-2000’s.

While in some areas of Portland, prices are may still be declining, closer-in areas, such as this neighborhood, prices seem to have bottomed out and appear to be on the rise.  Combine great interest rates and home values with the tax incentives for both first time homebuyers and existing home owners has created the perfect storm and an opportune time to buy.

Taking a look at our sample property – here are three lending scenarios that might work for you, courtesy of Don MacKay, Equity Home Mortgage:

#1 – FHA with 3.5% down (minimum down payment)

• Interest Rate: 5.0%
• Purchase Price: $379,000
• Base Loan Amount: $365,735 (3.5% of purchase price $379,000)
• Loan Amount with MIP (Mortgage Insurance Premium): $372,135
• Down Payment: $13,265

Based on the above information your monthly payment would be calculated as follows:

• Principal & Interest: $1998
• Mortgage Insurance: $170
• Taxes: $349
• Insurance: $50
• Monthly Payment: $2567

#2 - 30 Year-Fixed (aka Conventional) with 5.0% down (minimum down payment)

• Interest Rate: 4.75%
• Purchase Price: $379,000
• Base Loan Amount: $360,050 (5% of purchase price $379,000)
• Morgage Insurance Premium is not added to the loan amount with Conventional Financing
• Down Payment: $18,950

Based on the above information your monthly payment would be calculated as follows:

• Principal & Interest: $1878
• Mortgage Insurance: $252
• Taxes: $349
• Insurance: $50
• Monthly Payment: $2529 

#3 - 30 Year-Fixed (aka Conventional) with 20.0% down (minimum down payment)

• Interest Rate: 4.75%
• Purchas Price: $379,000
• Base Loan Amount: $303,200 (20% of purchase price $379,000)
• Down Payment: $75,800

Based on the above information your monthly payment would be calculated as follows:

• Principal & Interest: $1582
• Mortgage Insurance no longer comes into play once you are at 20% loan to value
• Taxes: $349
• Insurance: $50
• Monthly Payment: $1981

*All the above figures are an estimation and not an exact quote.

This is only three possible mortgage examples, I hope you can see that there is more than one way to buy a house.  

The key to a sucessful home purchase that doesn’t result in future financial streesis to sit down with a good mortgage broker and figure out the best options for your particular situation and considering your short and long term goals.

Regardless, if you were to rent a four bedroom home in the Portland area today, you’d be looking at monthly rent between $1,399-$2,700 - no annual tax deduction or homebuyer tax incentive ($8000 for first time buyers and $6500 for current home owners); let alone, you’re paying for someone else to build their financial portfolio, not your own.

Ask yourself these simple questions:

• Have I been on title to a property in the last 3 years?  If the answer is no, you are considered a first time homebuyer per the IRS.
• Do you make $125,000 or less as a single taxpayer or $225,000 or less if you’re married and filing jointly?  If your answer is yes, you qualify for the $8,000 first time homebuyer tax credit!
• If you already own a home, have you lived in that home for 5 consecutive years out of the last 8 or more?  If the answer is yes, you qualify for the $6,500 repeat home buyer tax credit if the home you plan on purchasing will become your new primary residence.

Now, ask yourself:

• Are you currently employed?
• Do your tax returns show income? (that’s for you self-employed folks)
• Do you have good credit?
• Do you have a minimum of 3.5% of the purchase price that you can use as a down payment?

If you answered YES to the last four questions – you are an excellent candidate to purchase a home in what is one of the best buyer’s markets in Portland history!

Maria and I would love to help you with your real estate goals, drop us a line or give us a buzz to get started!

~Kori

RMLS Market Action Report – October 2009

The October 2009 RMLS stats came out just moments ago – if there was any doubt in any one’s mind that the First Time Homebuyer tax credit stimulated the economy you can just take a look at the October report.

Sales activity was up again in the month of October, year-over-year.  In particular, pending sales were up 64% to October 2008 and closed sales were up 37.1%.  The 64% increase in pending sales is the largest same-month increase since February 1996!  That’s huge!  Do you think it could be due to the looming expiration of the First Time Homebuyer tax credit that was planned for November 30, 2009?  Based on the decrease in average sales price year-over-year, I’d say undoubtedlythat the First Time Homebuyer tax credit had a huge impact and I am excited to see the credit extended and expanded.

Our average months of inventory is also down to 6.5 months.  At six months we consider the market to be “balanced”, neither a buyer’s market nor a seller’s market; which means ultimately, everyone needs to get along. 

With the Home Buyer tax credit extend and expanded last week we expect to see more homes on the market for the first time buyers (which would be great because inventory in that price range was become a little thin) and hopefully we will see some movement in the higher end properties with the “move-up” tax credit for existing homeowners.  Next we need something to be done about the condo market and the whole world would be back on it’s axis (well, that might be a bit of an over statement, but you get my drift).

We are in the best market we have ever seen for real estate – reasonable home values, fantastic interest rates and incredible tax incentives.  If you’re curious about whether you qualify for one of the two different tax credits or if you’re curious about how to start your home search, please give us a buzz.  Maria and I will be happy to help you with your real estate needs.

~Kori

Carbon Monoxide Detectors Required To Transfer Title

Did you know…

The Oregon House and Senate passed a law requiring the installation of carbon monoxide detectors in homes with a carbon monoxide source in order to transfer title.  The law officially goes into place April 2011 but it would not be shocking to see an update to our current real estate listing contracts prior to that deadline.  The current contract and law requires the seller to install approved smoke detectors in the home, adding carbon monoxide detectors to this clause seems fairly straight forward.

So, what is carbon monoxide?

Carbon monoxide (CO) is a poisonous, colorless, odorless, and tasteless gas. Although it has no detectable odor, CO is often mixed with other gases that do have an odor. So, you can inhale carbon monoxide right along with gases that you can smell and not even know that CO is present.

CO is a common industrial hazard resulting from the incomplete burning of natural gas and any other material containing carbon such as gasoline, kerosene, oil, propane, coal, or wood. Forges, blast furnaces and coke ovens produce CO.  

How does carbon monoxide harm you?

Carbon monoxide is harmful when breathed because it displaces oxygen in the blood and deprives the heart, brain, and other vital organs of oxygen. Large amounts of CO can overcome you in minutes without warning—causing you to lose consciousness and suffocate.

Besides tightness across the chest, initial symptoms of CO poisoning may include headache, fatigue, dizziness, drowsiness, or nausea. Sudden chest pain may occur in people with angina. During prolonged or high exposures, symptoms may worsen and include vomiting, confusion, and collapse in addition to loss of
consciousness and muscle weakness. Symptoms vary widely from person to person.

How do I select a carbon monoxide detector?

Similar to the seat belt law or the installation of fire alarms – the carbon monoxide law is going into effect for our own safety and well being—a small price to pay for peace of mind.

 ~Kori

2009 Leaf Removal Schedule – Portland, OR

For those of you lucky enough to live in a “leaf district” – here’s the street removal schedule in alphabetical order by neighborhood.  For those of you, like myself, who do not live in a designated “leaf district” but have fallen leaves none-the-less, I’ve also included a list of “leaf depots” and their hours of opperation.  Happy Autumn!

Leaf District Schedule 2009

Alphabetical by neighborhood

Leaf Depot Schedule 2009

Residents can deposit their leaves for a minimal fee at the locations listed below. The leaves will be recycled into high quality compost. 

Cost

$5.00 per car load

$10.00 per truck, SUV, or trailer load

$20.00 per truck and trailer (5 cubic yard maximum)

$No commercial loads – these individuals will be referred to small local businesses, commercial recycle centers, or Metro)

Only leaves will be accepted 

No other yard debris will be allowed. Please contact Metro Recycling at 503-234-3000 or use your curbside yard debris container for this material.

Depots open at 9:00 a.m. and close at 4:00 p.m.

 Happy Raking!

 ~Kori

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