Tag: closing costs

House Hacking Success Story in North Portland

Posted on by Will Sing

I am thrilled to share a success story. It’s the story of Amanda and Shiv, a determined couple who embarked on a house hacking journey with dreams and a clear vision in their minds. Let’s dive into their journey!

The Dream: House Hacking in North Portland

Amanda and Shiv had been on the lookout for a golden house hacking opportunity for over a year. For those new to the term, house hacking involves buying a multi-unit property, living in one unit, and renting out the others to offset your mortgage. It was a dream they nurtured, and I had the privilege to guide them in this journey, equipped with my custom deal calculator to run the numbers meticulously.

The Find: A Duplex with Potential

Our persistent search led us to a promising duplex in North Portland. A place that whispered potential and promised a positive cash flow in just the second year! Yes, it required a bit of a nudge to enhance the rents, but nothing too daunting.

The Victory: Winning Against the Odds

In the competitive Portland market, we found ourselves up against another eager offer. But Amanda and Shiv had a winning spirit, and guess what? We won, securing a place that was more than a house; it was a canvas of opportunities.

The Inspection Period: A Time of Diligence

Entering the inspection period, we rolled up our sleeves, ready to delve deep into every nook and cranny. We scrutinized the property’s financials, keeping an eagle eye on the major issues. Our diligence paid off, securing a substantial $7,500 towards a new roof and a comforting home warranty to boot.

The Closing: A Happy Beginning

As we neared the closing, the joy was palpable. Not only did we secure the home, but we also managed to get a generous $9k in closing costs. Amanda and Shiv were all set to move into their new abode, ready to infuse it with their personal touch, one improvement at a time.

Conclusion

Today, Amanda and Shiv are happily settled in their unit, gradually transforming their space while enjoying the benefits of house hacking. Their story is a testimony to what determination, the right guidance, and a bit of house hacking savvy can achieve. Here is what they had to say:

Will was super helpful throughout the entire home buying process. He has a lot of knowledge about different types of housing options and knows the Portland area really well. He wants his clients to feel good about their purchase and we definitely do.

Inspired by Amanda and Shiv’s story and keen to start your own house hacking journey in Portland? Reach out to me at 📞 503-303-0822 or 📧 hello@agentlivinginpdx.com and let’s turn your home buying dream into reality!

House Hacking in Portland: How Jason Found His Perfect Investment Home

Posted on by Will Sing

Let me share with you a heartwarming story from my recent adventure as a buyer agent, helping out my client, Jason, in the vibrant and competitive Portland real estate market.

The Quest for the Perfect Investment Property

Jason had a clear vision: find an investment property under $400k where he could not only live but also house hack. Now, you might be wondering, what is house hacking? It’s a savvy strategy where you live in one of the multiple units of your property and rent out the others, effectively reducing or even eliminating your housing costs. In Jason’s case, we were finding a single-family home for him to rent out multiple rooms.

In the bustling Portland market, finding a home in this price range meant facing stiff competition. But Jason had a secret weapon – his background in construction. He was ready and willing to roll up his sleeves and turn a fixer-upper into a dream home.

The Hunt and the Happy Find in North Portland

Our journey took us all around Portland, putting in several offers, and keeping our spirits high. Jason’s patience and determination paid off when we found “the one” in North Portland. Despite competing against four other offers, we came out on top, a testament to Jason’s vision and our strategic approach.

Navigating the Transaction with Expertise

Entering the transaction phase, we discovered a few hiccups — issues with the home that needed addressing. But guess what? They were manageable, and we tackled them head-on. From getting the seller to decommission an oil tank found during inspections to negotiating a sweet deal where the seller covered a whopping 11k in closing costs, plus adding a home warranty for that extra peace of mind.

A Happy Ending and a New Beginning

Fast forward to a month later, and we were at the closing table, all smiles and ready for Jason to start his new chapter. Now, with keys in hand, he’s busy adding not one but potentially two additional bedrooms, a move that could skyrocket the home’s value by over $50k.

Here is what Jason had to say about the Experience:

Will went above and beyond to help me find the right home for my budget. The home search, buying, and closing process was executed perfectly. I am confident that Will’s personality, local knowledge, and understanding of the client’s needs would be a perfect fit for anyone looking to purchase property. He went above and beyond gathering repair quotes from multiple contractors, negotiating closing credit, and handling the coordination between my lender, escrow, and my self. I will defiantly be reaching out to Will in the future for my next property purchase.

Ready to take the next step in your home-buying journey?

Feel free to reach out to me for personalized guidance and expertise. Whether you have questions or are ready to find your dream home in Portland, I am here to assist you every step of the way.

📞 Call Now – 503-303-0822

📧 Email Me – hello@agentlivinginpdx.com

The Commitment of Buying a House

Posted on by Patricia LoCascio

Buying a house is serious business… right?  It’s a huge investment and is usually the most money we’ll spend in one place. But what exactly is the big deal?

What exactly does it cost us if we change our mind? What if we change our mind tomorrow?

 

I decided to run a case study using real Portland Metro data from this January and February.   I wanted to illustrate the difference between actual, predictable cost of relisting a home immediately and terminating a lease.

The results were shocking.  All things considered, average increase to sold price, closing costs, and real estimates of rent, you could loose more money canceling a lease.

 

Here is where I started:

The average house price in Portland for February was $569,200.

 

Let’s sketch a little case study, shall we?
February, 28 – you close on the purchase of a home with cash.  You bring *approximately* $572,000 to the closing table.  This is, of course, for the purchase price plus about $2,700 in closing costs like tax prorations, title transfer fees, and the cost of title insurance.

 

March 1, you decide to sell.

 

Last month the average price of a home went up 6.8%.  Projecting that forward, the house would now be listed at $607,000. So, if you turned around and listed the property (and closed eight weeks later), you’d net *approximately* $569,000.  This is, of course, the $607,000 asking price. But this time, about $38,000 has been deducted from your proceeds.  This deduction includes credits and debits for taxes and *more* fees for title insurance but this time, you’re also paying (most commonly) six percent in agent fees.

To compare apples to apples, we’d subtract the *net* cost at close between purchase ($572,000) and sale ($569,000).

All in all, you’ve lost $3,000.

 

To cancel a lease in Portland, you are subject to a fee 1.5 times the monthly rent.  Rentometer.com estimates the rent of a 4 bed 2 bath home in this area at $3,000.  That’s a cancelation fee of $4,500.

 

So, we could make the argument that is it is more expensive to change your mind about a lease.

 

It bears highlighting, this is a story knit together with data, projections, and a little imagination.  The data itself is not often so simple and the market surely never is.  Each transaction, each property, is unique.  Even two transactions on the same house can be considerably different.  Data is wonderful but experience is critical.  Knowing the nuance of the market in real time is invaluable, and it’s the greatest reason to hire the right agent.

If you’re considering buying or selling, or would like similar data for your neighborhood or home, reach out. I’d love to crunch some numbers and celebrate some nuance with *you*!

 

 

First Time Buyer gets America’s Home Grant

Posted on by Robin Hakeman

First time buyer gets America’s Home Grant!

It’s not everyday that a first time home buyer can become a home owner thanks to a grant program. However, that is exactly how my client joined the real estate market. She was fortunate to qualify for the America’s Home Grant through Bank of America, which offers closing cost assistance of $7,500. The credit can be used towards non-recurring closing costs, (think title insurance and recording fees), and to buy down the interest rate on the loan. My buyer closed on her home this week with $0.00 in closing costs and a 30 year, fixed-rate mortgage at 2.75%!! The icing on the cake? The funds she received do not need to be repaid to the bank!

One caveat of the program is that the subject property must be in a low to moderate income tract. Each home is run through the bank’s system to check the income tract. Some qualify and some do not, meaning you are limited to certain areas of Portland. The competition for these homes can be fierce. After making an offer on a property that received 10+ offers within 1 day, my client was discouraged.

Thankfully, this summer turned out to be the height of the selling season and homes were coming on the market left and right. A home on the outskirts of Montavilla came on the market and it was perfect for her. It met the Bank’s requirements so we went to see it. The house has 2 bedrooms and 1 bathroom, a lovely living room & updated kitchen. There is a back deck and a small yard. The attached garage is perfect for her car and storage. Thanks to America’s Home Grant, my client was able to beat out the other offers and offer over the asking price. This could not have happened without the closing cost assistance she was given.

As an agent, it is important to know the options for your clients so they are able to get into a home. This is a single woman, on her own becoming a HOME OWNER!!! I am so proud to have helped her through this process. If you or someone you know would like to learn more about how to become a home owner, contact me today! Congratulations to my awesome client – she now owns her own special piece of Portland.

What are the actual costs of purchasing a home?

Posted on by Aryne + Dulcinea

Whether you’re a first time home buyer or buying for the first time in a long time, we can help you get a handle on the full costs of buying a home.

Down Payment:

Most people know that they need a down payment and that the rest of their purchase will be secured with a loan from a bank. The down payment typically ranges from 3.5% up to 20% of the purchase price. For a $500,000 home that equals $17,500 up to $100,000 in cash.

What else will you need to pay for? Inspections, appraisal, closing costs and prepaid expenses, repairs and updates.

Inspections:

One of your first steps in the purchase process is inspections. We recommend a general home inspection and if applicable, a sewer scope, radon test and oil tank locate plus soil sampling, if necessary. The total costs for inspections vary depending on size of house, which inspections you choose to complete and the inspector’s fees. We recommend budgeting $800 to $1,200 for all inspections.

Appraisal:

Toward the end of the inspection period your lender will order the appraisal. An appraiser will conduct a walkthrough of your new home and complete a report which determines the market value of the home based on specific calculations and assessments. Appraisals run $500 to $1,500.

Closing Costs:

At the end of your transaction you will be responsible for closing costs and prepaid expenses. Your lender will be able to tell you these costs once you are pre-approved. These fees average between 3% and 5% of your loan.  Fees include things like title insurance, taxes, loan fees, homeowner’s insurance, home warranty (view it here), title insurance and escrow fees.

Now for the fun stuff:

Once your purchase is complete you get to pay for the fun stuff! Now that you own a new house, it’s time to make it your home. Final costs include repairs not included in the transaction, updates of your choosing and new furniture fabric corner lounge.

About Us: Over the course of their professional partnership, Aryne + Dulcinea have helped over 200 clients prosper in their new lives. During this time, they have prided themselves in their top-notch selling abilities, with homes outperforming market standards, consistently exceeding list price while most of their listings sell in under 7 days. Whether you’re looking to buy or sell, Aryne & Dulcinea will work in collaboration to guide you in investing in your future and reaching your real estate goals.

She’s got the look!

Posted on by Jamis Minnis

This family! That baby! Does it get any cuter? I don’t think so.

Without further ado, please allow me to introduce these new homeowners! The Jenkins Family. A couple of months ago, I texted Jordyn, congratulating her on Baby Taj. We caught up briefly. I inquired about their address to send the baby a gift and Jordyn asked about homes. Two weeks later, we’re pounding the pavement, looking for the families’ dream home.

While touring the first home, Jordyn looked over at me to ask, “How many homes do people normally see before they find their home?”

I knew this look, it was the “I’m in love with this house, but how could I be so sure so soon look.” I see this look often. I imagine most agents do. It’s pretty undeniable. Nothing to take lightly.

We followed up with a few other places. But the other homes paled in comparison. We pinpointed the market and surrounding neighborhood stats. We negotiated a new cedar fence and closing costs on behalf of my clients. The Jenkins family closed with a bit of equity in the home too. Given the current Portland Housing Market. I’d say: WE ROCKED THIS TRANSACTION!

Congrats Jordyn, Xzavier, & Taj!                                                                                                                                       I can’t wait to spend summer days in your backyard!