buyers • June 4, 2020

Financing Your First Home in Portland (or Anywhere)

by Bene Foley

Buying a home for the first time is exciting and scary. This is most likely the biggest purchase you will make in your lifetime. But how are you going to finance it?

When people finally make the decision to buy, they often start with figuring out how much they can afford. There are all sorts of mortgage calculators online that can help you do this. They are great for giving a ballpark figure, but it is not until you talk with a lender or mortgage broker (What is the Difference Between Lenders and Mortgage Brokers) that you learn what programs you might qualify for. There are so many programs that can get you into a house from government options to neighborhood specific opportunities and they are worth researching before choosing a lender or broker.

Often, once a buyer finds a mortgage broker, they stick with that one—even if they are told that they do not qualify. Talking to a lender right when you decide to buy is a great thing to do. They can help you figure out how to increase your credit score or improve your debt to income ratio. However, just because you started working with one, does not mean they are the right lender for you. If you qualify for less than you were hoping for, get a second opinion. Not all lenders participate in the same programs. For example, in Portland, there are only a handful of lenders that will do Oregon Bond Loan which is not credit sensitive and can lower your rate or help you with closing costs if you qualify. This could be the difference between affording a house in the Portland area or staying a renter.

Ask your real estate agent to refer you to someone who can help you get into the market. If you can afford to pay the high rent in Portland, you are likely able to buy with the right program.

buyers • May 30, 2020

How to Buy Safely in Portland

by Bene Foley

We are still seeing a lot of real estate activity in Portland these days. Despite the Stay at Home order, the low mortgage rates and low inventory are sending first time buyers out to look for homes. Others were planning a move before COVID started and are continuing with their plans. Still others realize that their needs have changed because of the continued concern over the pandemic.

Real estate, like all industries, has had to adjust the way it does business. We want to help keep people safe, so we need to prevent crowded spaces and close contact. So how are we redesigning our model to maintain social distancing? And what do buyers need to know about this process?

Financing: Talking with a lender has always been the first step in the home buying process. It is more important than ever to start that process first so that buyers can limit their visits to homes that they can afford. This process can be done from home, over the phone and computer. If you have been temporarily laid off, this may not be a great time to apply for a mortgage. If you were pre-approved before the pandemic, you should contact your lender to make sure that nothing has changed. Pre-approval is essential to starting the buying process.

Looking for Homes: Even before COVID buyers have been searching for homes online first. The second step often involved Saturday and Sunday open houses where buyers would see anywhere from four to ten houses in one day. This step was often done without the buyer’s agent. In order to stay safe, open houses are no longer an option (though new forms of open houses are being developed as I write). Now every in-person showing needs to be done with an agent. This limits how many houses can be viewed. So what should buyers do?

First search online. Ask your REALTOR to send you new listings daily or use REALTOR.com or other websites where you can set up searches that notify you when new properties go on the market. (Not all houses will come up on every site. If you work with a REALTOR in a larger company, they will have other sources for houses that are not put on MLS.)
When you see houses you like research the neighborhood, then drive by the property or take a walk to the nearest park or business district. There are often things the pictures don’t tell you.
Read all the details about the house. Can you live without the gas stove you wanted so badly? What about that of A/C?
Tour the home virtually if you can. If the listing agent doesn’t have a virtual home tour, ask your agent to walk through with you on Zoom.
If the home is still one of your top choices, go and see it in person. This can be done safely, and your agent will probably ask you to sign a form stating that you don’t have any COVID symptoms. You will most likely be driving in your own car and you will have to wear a mask (and possibly gloves)to enter the house. You will have to follow the protocol that the listing agent insists on which often includes a restriction on the number of people in the house at one time.

When choosing a REALTOR, find someone you can trust to keep your safety as well as your housing needs as a priority. Make sure to ask what their safety protocols are for in-person showings. Having a good agent is more important than ever.

neighborhoods • May 21, 2020

The Woodstock Neighborhood Goats

by Bene Foley

I love seeing goats in Portland. Here we are, walking down a typical Woodstock neighborhood street, when there, in front of us is a man walking his two goats. One of them stops short and refuses to go any further—stubborn animals—because that is not the way she is used to. Further north, on one of the sweet unmaintained roads that that I have mentioned before, a little urban farmyard is set up, replete with goats.

I have a love/hate relationship with goats. I love the idea of them. They are cute (though their eyes are a little devilish); they reproduce; they eat weeds including blackberry (thorns and all) and young poison oak and they give milk. What a perfect domesticated animal. Except they are not.

I lived with and sometimes helped milk goats for 11 years. Once, when I was pregnant, our pregnant goat came up to me and butted me in the stomach—hard. And for no apparent reason. I had the distinct feeling that she knew what she was doing! Goats also tear the bark off fruit trees. They attract flies. And they are extremely stubborn.

Still, I love to see goats living in the city. There are three people raising goats in Woodstock that I know of, and that is on the south side alone. Some are so hidden you would never know they were there (until someone brings them out on a leash). Others are out there for kids to come watch. And though goats are really happy out in large meadows on a farm in the country, the city goats that I have seen are happy to climb on the roofs of their barns. After all, goats are mountain animals by nature.

market news • Uncategorized • May 13, 2020

Why Home Equity Is a Bright Spark in the Housing Market

by Bene Foley

Why Home Equity is a Bright Spark in the Housing Market | MyKCM

Here in Portland, Oregon many of us don’t even know anyone who contracted Covid-19. But all of us know someone who has lost a job, whether temporary or permanent. Many people are scared about what this means for the future of the economy and to the housing market.

Given how we have seen more unemployment claims than ever before over the past several weeks, fear is spreading widely. Some good news, however, shows that more than 4 million initial unemployment filers have likely already found a new job, especially as industries such as health care, food and grocery stores, retail, delivery, and more increase their employment opportunities. Breaking down what unemployment means for homeownership, and understanding the significant equity Americans hold today, are important parts of seeing the picture clearly when sorting through this uncertainty.

One of the biggest questions right now is whether this historic unemployment rate will initiate a new surge of foreclosures in the market. It’s a very real fear. Despite the staggering number of claims, there are actually many reasons why we won’t see a significant number of foreclosures like we did during the housing crash twelve years ago. The amount of equity homeowners have today is a leading differentiator in the current market.

Today, according to John Burns Consulting, 58.7% of homes in the U.S. have at least 60% equity. That number is drastically different than it was in 2008 when the housing bubble burst. The last recession was painful, and when prices dipped, many found themselves owing more on their mortgage than what their homes were worth. Homeowners simply walked away at that point. Now, 42.1% of all homes in this country are mortgage-free, meaning they’re owned free and clear. Those homes are not at risk for foreclosure (see graph below):In addition, CoreLogic notes the average equity mortgaged homes have today is $177,000. That’s a significant amount that homeowners won’t be stepping away from, even in today’s economy (see chart below):In essence, the amount of equity homeowners have today positions them to be in a much better place than they were in 2008.

Bottom Line

The fear and uncertainty we feel right now are very real, and this is not going to be easy. We can, however, see strength in our current market through homeowner equity that has not been there in the past. That may be a bright spark to help us make it through.

Uncategorized • May 7, 2020

Door Paint

by Bene Foley

Paint. I always get excited about choosing a paint color—and I always choose wrong. The shade I pick out is perfectly lovely; it just doesn’t work in the room. It is not that I don’t do some research. I always read up first. But the truth is, different designers have different opinions. Some say that for a small room you should only paint white to reflect the light and make it look larger, others declare that bolder colors help create a perception of depth. So, I choose a color. What I don’t do is the sample size cans. Maybe I am too cheap, maybe I am too impatient. Regardless, I inevitably end up with a color that does not look good.

One of my favorite paint trends is to paint the door to a house a color that is in no way part of the overall scheme of the house. I am always attracted to houses like this. It makes it seem like the door is beckoning me, welcoming me. Gray houses can look especially nice with a splash of color right in the center. I would love to do this with my own house, but I am fearful of choosing the wrong color. If I ever want to go through with it, I may have to hire a professional for that single can of paint.

Bene's Blog • neighborhoods • April 30, 2020

Missing Woodstock

by Bene Foley

Time is going by in a different way these days. I am starting to miss little things intensely. I miss hanging out in the sun on the New Seasons’ roof; I miss walking up to Woodstock and being among people. I can recall the sinking feeling I got when Grand Central closed.

The first week or so of the Stay At Home order Grand Central remained open and I took comfort that some things were still normal. When they closed it felt like the neighborhood died a little. (I had to start making my own sourdough.) And then slowly, without me realizing it, all the coffee in the neighborhood disappeared. Even New Seasons has a sign that states that they are not serving coffee right now. How long ago was all this—two weeks? Three? A month?!

All is not lost. It looks like some previously closed shops are starting to reopen. The Ace hardware seems to have started selling nursery supplies; Pappacino has a sign up saying that they will re-open on May 1^st. I think I even saw a line for Cloud City ice cream, though I could swear they had closed too.

Some die-hards never shut down at all. Bai Mint Thai is open for take-out; the grocery stores continue to serve (thank you under-paid workers); and the weed stores are still getting the neighbors high. My greatest delight is that the Portland Fish Market is still serving fish and chips. My husband and I went for take-out the other evening and sat in the car eating with the windows and doors open. It almost felt like dining on the street at a café. And, the food is great. One thing I cannot cook at home—deep fried anything!

Bene's Blog • neighborhoods • April 22, 2020

Walks around Woodstock

by Bene Foley

My walks around my neighborhood have become longer and more frequent during the Covid-19 stay-at-home orders. I always enjoy my walks here, but this spring is particularly sunny and warm. Every time I walk I am reminded about why I love my neighborhood, but also why I chose to move to Portland when my family had grown out of our small town.

Portland feels like a small town—at least most of it—while having a lot of the advantages of a city. Each neighborhood has its own sweet characteristic and its own characters. Most neighborhoods have their own strip of commerce, some hip, some just utilitarian that allow its inhabitants to stay put and still have everything they need—which is especially great right now. One of the things that I find most charming about Portland are the unmaintained roads hidden in various neighborhoods. One of my favorites is so overgrown that it is really just a dirt foot path that has a tree growing smack in the middle of it. Pictured here are two others that I love to see on my walks through the Woodstock neighborhood.