So You Want To Buy a House in Portland, Now What?

Wednesday, February 18, 2015

Jenelle Isaacson, GoLocalPDX Contributor

Whether it’s a life long dream or something you’re fired up to do after your landlord raised the rent again, buying your own home is a worthy pursuit. Your home is a way to express who you are, create security and comfort, host unforgettable parties and create long term financial freedom. The emotion and desire to create these things are all worthwhile inspiration to make the jump from tenant to homeowner.

Once you decide to make the jump you will find your whole world changes. Entering into the realm of homeowner is a big deal. In the eyes of banks, businesses and local communities, you have become a player. Owning ahome can tie you down but can also give you certain financial freedoms if you’re in a place in your life to look at things long term.

So Now What?

First off, you’re going to need some money. That may mean really tightening the budget, getting a second job or asking a family member to help you out. You’re going to need at least 3-5% down. For an average Portland house that’s about $9,000 to $15,000.

Got a Job?

This one is often trickier to answer in Portland than “Got money?”. The bank is going to want to see your tax returns proving you have the skills to pay the bills. Your income should be three times the amount of your mortgage payment. A mortgage in Portland is about the same as rent. If you are able to pay your rent each month then chances are you can pay a mortgage too. Call a realtor and ask them to put you in touch with a mortgage broker who can give you the skinny on what you need to do to buy a house.

Know a Realtor?

If you don’t know a great realtor, my advice is look for someone who you think “gets it”. Ask for someone with experience and who specializes in the neighborhoods you want to live in. Ask your friends and co-workers about their experiences buying a house and see who rocked their world. To me a great agent tells their client “This place is a dump” or “This place is dope”. Good agents will likely have strong opinions on the homes you are seeing. They will have insider knowledge about the neighbors, plans for development in the area, the construction quality of certain eras and homebuilders. Trust them. It’s in their best interest to find you a place to live that you will love.

Be Prepared for Surprises

There are a few things I find surprise people who are new to the process. One of those things is; your realtor won’t find your dream home, you will. With the amount of information available to consumers today you may find yourself exhibiting the habits of a total house-hunting junkie. Waking up in the middle of night to check new listings, talking about it non-stop and looking at every real estate sign you pass by. You will likely find the house first and your realtor will help you navigate the complexities of actually making it your own. You’re not hiring a realtor to find your house, you’re hiring them to help you buy it and ensure you can start sending your mail there.

Another thing to be prepared for is how fast the process is. You’ve been considering this for months, collecting real estate flyers wherever you go and think it will take just as long to actually buy. The entire process can be less than 30 days. From my experience, close to half of home shoppers buy something the first time going out to look or in the following two weeks. The other half finds something within the following two months.

Set Expectations

You will generally spend more time test-driving a car than inside the house you intend to buy. If you get the deal together, you can go back during the inspections and measure for furniture and draw floor plans. This dreaming stage is fun, but don’t start that process until the deal is done or you set yourself up for total heart break. The market moves fast and competition is fierce, be prepared to lose a few.

If you have kids don’t forget to tell them the realtor won’t be living in the house with you. Every time they see the house the realtor is there. Believe it or not, they will often assume their new house comes withyour friendly realtor.

And lastly it always surprises people when they don’t meet the sellers during the process. The best time for the parties to meet is after the transaction is complete. Once the keys are yours and the money is in the seller’s account, that’s when it’s certain it is good news for both parties.

There are a lot of things that happen between finding the house and moving in. If I told you all of them you’d likely change your mind or fall asleep. Most of them you don’t need to know if you have a great agent, since that’s what their getting paid to do. Your job is to pick the house, keep your day job, and not to blow your down payment or buy anything large on credit, like a car, that would disqualify you for your loan. Show up for your home inspections and answer your phone when your agent or lender calls. And most importantly, start making your playlist for your housewarming party. Your world is about to change and so is the neighborhood you move to.

Jenelle Isaacson is owner of Living Room Realty, a local real estate company specializing in Portland’s urban neighborhoods.

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