Home Buying Basics for the Portland House Hunter

Before You Buy a Home in Portland…

It’s undeniable; Portland has surpassed “trending” when it comes to being an “it” place to be. As a city, Portland is now considered to be a well-established mecca of culture, industry, and green living. Because of this, more and more people are picking up and moving to PDX.

Whether you’re moving to Portland from another state, or you’re looking to set down roots in another part of the city, it’s important to know that buying a home in Portland is an intensive undertaking. When you begin your search for a home in the Portland area, make sure you keep these home buying basics in mind.

The Listing Price is Not the Total Cost

Buying a home is a cost-intensive process. As Portland house hunters work with their agents to identify how much house they can realistically afford, Realtors are consistently urging clients to think beyond the listing price.

Aside from the down payment, Portland homebuyers need to allocate funds for closing costs (typically 2-5% of the final home purchase price), an inspection, appraisal, and other third party costs.

In Portland specifically, homes are selling above asking price right now and have been for some time. A piece for wisdom for the Portland house hunter: don’t start out with your maximum bid. Consider properties that might fall at the lower end of your budget, as costs can rack up quickly in this city’s market.

Not Every Portland Bank Can Offer the Home Loan You Need

If you’re planning to opt for a less conventional home choice, such as a floating home or a shared co-op, talk to your real estate agent to figure out which banks can help you get pre-approved for a mortgage.

Not all mortgages are the same, and it’s important to know which kind of loan your prospective Portland home will require. In order to stay competitive in situations where owners set a closing date for offers, do the research to figure out which Portland bank you need to visit to get pre-approved for your home loan.

Consider Areas Outside Portland Proper

Portland homebuyers are gradually shifting their “wish-list” boundary lines of where to buy a home in Portland. Jason and Kristin Normanson, a couple who has spent the last 8 years renting in the Portland metro area, recently purchased a home in Milwaukie.

Kristen shared that “at first we didn’t want to look east of 60th Ave, then we considered 82nd, and then we gradually considered looking farther south before we realized that our money stretches so much further outside of Portland proper.”

She went on to share that the recent addition of the Orange Max line makes living outside of close-in Portland areas easier, and keeps the city accessible while making house payments more realistic.

While the dream of owning a home in a quintessential Portland neighborhood is a tough one to let go of, it’s important that prospective Portland homeowners consider areas just outside the city. And rumor has it that Portland’s adjacent neighborhoods are pretty great.

According to recent research by OregonLive, “Wilsonville has quietly become one of the hottest development spots in the metro area in recent years for single-family homes. Most of the activity has happened in the Villebois area, the former site of Dammasch State Hospital slated to eventually have nearly 2,700 new homes.”

Buying in Portland? Be Patient

The Portland house market is fiercely competitive. Unless you are able to offer substantially above asking price or pay cash for a home, it’s likely your first or second bid on a home will be unsuccessful. But don’t get discouraged!

The strong competition pool, paired with a relatively low supply of homes, can make the Portland house hunting process laborious and time consuming. Even in winter months, which are notoriously slow, the inventory of available homes is stagnating at an all time low.

In December of 2015, the Portland home inventory “hit its lowest level since at least 1999 and has only budged slightly since then.” Our advice: be as patient as you possibly can. Try to avoid rushing through the home buying process, and stay flexible to find the right home for you and your budget.

If you’re in the marketing for a home in PDX and you’ve yet to find the right fit when it comes to a Realtor, get in touch with Urban Nest today. Our team knows Portland like nobody else, and we’re ready to help you find your next house