John Bacon

Going “Off the Grid” Continues to Attract Real Estate Buyers in Oregon

Did you ever think about becoming one with nature, growing your own food, managing your own power and basically doing everything you can to be self-sufficient?

As a real estate agent in the Portland Metro area, I honestly hadn’t given it much thought. Yes, I would get calls from potential buyers for my acreage properties who would ask for maps, plot line layouts, aerials, etc., but I never really stopped to think about what was in the minds of those calling, until about 6 months ago.

Off the grid means freedom

Now I understand that more and more people in the great Northwest, not only want to go off grid, but do it in a way that allows them to stay connected with their community, while being self-reliant.

People are becoming more interested on alternative energy options (generators, wind, and, of course, solar) and with today’s energy crunch, these alternate energy sources have been brought to the fore front of most people's mind.

The great thing is that we live in an area blessed with fertile soils, rain, wind, as well as creeks and springs, so we have everything we need to get off the grid and take full advantage of what our blessed corner of the world has to offer.

As I told you, all the calls that I’ve been getting as a realtor are from people with a dream of living with nature and having more than 10 ft of separation between them and their neighbors. It’s only natural that people would choose some place with a few more feet of separation and more independence.

Below are a few things to consider if you’re ready to join the growing number of people in and around Portland that are now doing it.

Laws, loans and taxes

If you plan to go green, some regulations you need to consider. Some of the toughest land use laws in the country are here in our area and one of the biggest pitfalls buyers are running into has to do with knowing the state and county restrictions for building on land. As easy as it may seem to purchase land and build, it’s by no means that simple.

The building permit fees involved can vary significantly between counties and if you are applying for a loan, there can be ratios on the cost of land vs. the cost of building a home.

Choosing the right lender and loan product is also extremely important. Some lenders are not willing to loan on larger parcels of land while others do it day in and day out. Rates can also vary dramatically between lenders.

Property taxes will depend on the county you choose to live and are also impacted by the land use regulations and type of dwelling approval the county has agreed to on the property. It isn’t uncommon for two parcels of land with similar attributes to have significantly different tax bills.

There are great deals to be had right now on acreage and existing homes on acreage but making sure you go into it with “eyes wide open” is extremely important. The rewarding experience and lifestyle that comes will be more than worth the leg work you should do upfront.

There are some financing renewable energy solutions available, and if you’re building your system from scratch, choosing the right materials can help you a lot (e.g. reclaimed materials).

Solar energy panels

The example above is a simplified version of what happens when you capture the sun’s energy through a solar panel and direct it into a charge controller. You can then store the energy in a battery for direct "DC" power or pushed through an inverter to create "AC" power.

Things are really that simple. Considering today's climbing energy costs and concerns about global warming, going off the grid is the smartest choice for you and your family.

The initial cost of going off-the-grid is a bit higher than standard living, but in the long run you’ll have countless benefits: no more utility bills, no power outages, less contribution to global warming, clean, pure rain water and an overwhelming feeling that you are in charge and not dependent on large utilities.

Wind energy systems

Probably the best option for alternative energy in Oregon is a wind turbine system. It converts the solar energy by collecting the wind’s kinetic energy and turning it into electricity. The state of Oregon has vast wind energy resources and ranks 6th among states for total installed wind capacity, with 1,758 megawatts.

The American Wind Energy Association communicated in its Year End 2009 Market Report that despite loans tightening, federal stimulus budget continues to encourage wind development.

The great news is that a wind turbine reduces a household electricity bill with 50% to 90%. A domestic wind system makes less noise than a washing machine. In the long-run, a wind turbine is a highly profitable investment because a well-located wind system dramatically increases property value, just like any other home improvement.

Some things to consider when buying off the grid property:

- If the house doesn’t face South, forget about passive solar home design and prepare to spend twice as much on active solar (e.g. solar panels).

- Find out if the property retains the water and mineral rights

- Make sure the land has been perk tested, because if it doesn’t drain well it will be very difficult to get a septic system in place and it will affect your garden, too.

- Determine the water source and see if there is a well or a spring. If not, find out how deep the neighbors had to drill, as an off the grid house without water is almost useless.

- See how you’d be connecting to the internet, because if you’re reading this article, you’ve probably realized already just how useful it is. Also, cell coverage.

- Check how the land lays. Aside from having a south-facing building site, is there a pasture area and garden area that gets plenty of sun? Is it flat, sloping, or steep? If you have “great views” that might be a keyword for “steep”. Homesteaders who plan on having any kind of livestock or sizeable garden should have a few acres of level to sloping land.

- Make sure there are no easements and that you don’t have to go through someone else’s land to reach your property.

- Find out if the road county is maintained properly.

Living off the grid is simply about properly using electricity in such a way that you’ll minimize as much waste as possible. It's about making sure that all electricity created is spent usefully and purposely.

Some people may say that living off the grid is all about refraining to use electrical appliances and eliminating the comforts that these appliances can give you in order to spend less energy, but such claims couldn’t be farther from the truth.

Such belief can only come from lack of information about renewable energy sources. With some research, people will easily realize that we can both enjoy our modern lifestyle and not be guilty of consuming too much energy or worrying about high utility bills at the end of the month.

Whether you want to buy a green home or purchase a land to build your green property, we’re here to help you make the best choice.

John Bacon, Principal Broker

Phone: 503-925-1100

info@soldinoregon.com

www.soldinoregon1.com

For further reading on reusable energy, please visit:

http://www.acore.org/front

Going “Off the Grid” Continues to Attract Real Estate Buyers in Oregon

Did you ever think about becoming one with nature, growing your own food, managing your own power and basically doing everything you can to be self-sufficient?

As a real estate agent in the Portland Metro area, I honestly hadn’t given it much thought. Yes, I would get calls from potential buyers for my acreage properties who would ask for maps, plot line layouts, aerials, etc., but I never really stopped to think about what was in the minds of those calling, until about 6 months ago.

Off the grid means freedom

Now I understand that more and more people in the great Northwest, not only want to go off grid, but do it in a way that allows them to stay connected with their community, while being self-reliant.

People are becoming more interested on alternative energy options (generators, wind, and, of course, solar) and with today’s energy crunch, these alternate energy sources have been brought to the fore front of most people's mind.

The great thing is that we live in an area blessed with fertile soils, rain, wind, as well as creeks and springs, so we have everything we need to get off the grid and take full advantage of what our blessed corner of the world has to offer.

As I told you, all the calls that I’ve been getting as a realtor are from people with a dream of living with nature and having more than 10 ft of separation between them and their neighbors. It’s only natural that people would choose some place with a few more feet of separation and more independence.

Below are a few things to consider if you’re ready to join the growing number of people in and around Portland that are now doing it.

Laws, loans and taxes

If you plan to go green, some regulations you need to consider. Some of the toughest land use laws in the country are here in our area and one of the biggest pitfalls buyers are running into has to do with knowing the state and county restrictions for building on land. As easy as it may seem to purchase land and build, it’s by no means that simple.

The building permit fees involved can vary significantly between counties and if you are applying for a loan, there can be ratios on the cost of land vs. the cost of building a home.

Choosing the right lender and loan product is also extremely important. Some lenders are not willing to loan on larger parcels of land while others do it day in and day out. Rates can also vary dramatically between lenders.

Property taxes will depend on the county you choose to live and are also impacted by the land use regulations and type of dwelling approval the county has agreed to on the property. It isn’t uncommon for two parcels of land with similar attributes to have significantly different tax bills.

There are great deals to be had right now on acreage and existing homes on acreage but making sure you go into it with “eyes wide open” is extremely important. The rewarding experience and lifestyle that comes will be more than worth the leg work you should do upfront.

There are some financing renewable energy solutions available, and if you’re building your system from scratch, choosing the right materials can help you a lot (e.g. reclaimed materials).

Solar energy panels

The example above is a simplified version of what happens when you capture the sun’s energy through a solar panel and direct it into a charge controller. You can then store the energy in a battery for direct "DC" power or pushed through an inverter to create "AC" power.

Things are really that simple. Considering today's climbing energy costs and concerns about global warming, going off the grid is the smartest choice for you and your family.

The initial cost of going off-the-grid is a bit higher than standard living, but in the long run you’ll have countless benefits: no more utility bills, no power outages, less contribution to global warming, clean, pure rain water and an overwhelming feeling that you are in charge and not dependent on large utilities.

Wind energy systems

Probably the best option for alternative energy in Oregon is a wind turbine system. It converts the solar energy by collecting the wind’s kinetic energy and turning it into electricity. The state of Oregon has vast wind energy resources and ranks 6th among states for total installed wind capacity, with 1,758 megawatts.

The American Wind Energy Association communicated in its Year End 2009 Market Report that despite loans tightening, federal stimulus budget continues to encourage wind development.

The great news is that a wind turbine reduces a household electricity bill with 50% to 90%. A domestic wind system makes less noise than a washing machine. In the long-run, a wind turbine is a highly profitable investment because a well-located wind system dramatically increases property value, just like any other home improvement.

Some things to consider when buying off the grid property:

- If the house doesn’t face South, forget about passive solar home design and prepare to spend twice as much on active solar (e.g. solar panels).

- Find out if the property retains the water and mineral rights

- Make sure the land has been perk tested, because if it doesn’t drain well it will be very difficult to get a septic system in place and it will affect your garden, too.

- Determine the water source and see if there is a well or a spring. If not, find out how deep the neighbors had to drill, as an off the grid house without water is almost useless.

- See how you’d be connecting to the internet, because if you’re reading this article, you’ve probably realized already just how useful it is. Also, cell coverage.

- Check how the land lays. Aside from having a south-facing building site, is there a pasture area and garden area that gets plenty of sun? Is it flat, sloping, or steep? If you have “great views” that might be a keyword for “steep”. Homesteaders who plan on having any kind of livestock or sizeable garden should have a few acres of level to sloping land.

- Make sure there are no easements and that you don’t have to go through someone else’s land to reach your property.

- Find out if the road county is maintained properly.

Living off the grid is simply about properly using electricity in such a way that you’ll minimize as much waste as possible. It's about making sure that all electricity created is spent usefully and purposely.

Some people may say that living off the grid is all about refraining to use electrical appliances and eliminating the comforts that these appliances can give you in order to spend less energy, but such claims couldn’t be farther from the truth.

Such belief can only come from lack of information about renewable energy sources. With some research, people will easily realize that we can both enjoy our modern lifestyle and not be guilty of consuming too much energy or worrying about high utility bills at the end of the month.

Whether you want to buy a green home or purchase a land to build your green property, we’re here to help you make the best choice.

For further reading on reusable energy, please visit:

http://www.acore.org/front

Dear Representative Wingard,

As you know the housing market and hundreds of thousands of Oregonians are in financial trouble and losing their homes. The reason for this email is that I have been working with lenders over the last several years that continue to be denied home loan modifications at an unacceptable (at least 75% are being denied) rate here in Portland. Many of the homeowners have lost their job, had a serious illnesses or some other financial hardship. These homeowners are not only being kicked while they are down but then again when they later try to re-establish themselves because of aggressive collection tactics by lenders who either foreclosed on the home or accepted a short sale with the "option of recourse" in the short sale approval letter sent to them. It's been my experience that this is leaving them with the very real possibility of having to file for bankruptcy as their only alternative to a truly fresh start.

My hope is that you can design and introduce a law here in Oregon that would require these lenders that are charging off this debt and sell it to investors of debt and/or collection agencies to 1^st offer the debtor the same terms to which they have agreed to sell it to a 3^rd party. If you were to talk to us Realtors who are trying to help homeowners by either directing them to State and Federal Websites for possible home loan modification programs that they might qualify or later also assisting them to short sell their home and avoid a foreclosure on their credit record, you would see that we and your constituents are continually hitting illogical road blocks from the lenders. These same lenders may be approving short sales at a larger rate than before but are retaining their rights to go after homeowners for the "deficiency" and then selling that bad debt so that Oregonians who have been caught in the worst economic crisis since the Great Depression can have their nightmare continue for years to come.

My suggestion is both fair and right, given these unprecedented times. Create a law where a lender who is making a seller sign a legal document in order for them to release the lien and close on their home has the right to later buy back their deficiency from the lender at the same terms they are negotiating with institutions, law firms and collection agencies. I see no reason that someone who has already lost their job, lost their home and lost their credit should not be able to pay the same price, sometimes pennies on the dollar, that they are willing to wholesale it out the door to and industry who will haunt them for years to come in order to collect and make a profit off such a terrible situation we are all feeling right now.

Thank you for your time,

John Bacon, Keller Williams Realty Portland Preimere

RESPONSE FROM MY STATE REPRESTATIVE:

Not a bad idea. I will have the bill drawn up. Let's see what happens.

Rep. Matt Wingard

Please send letters to your Representatives and let's see if we can't keep people who have lost everything from being abused for a lifetime!

It seems many appraisers are taking on more than they should and they output of their work seems to be a poor quality work and an F on the job performance. I recently had a property where the appraiser got the square footage of the home wrong substantially, missed adding a bedroom, a bathroom and would not take my call to address the errors as it was "inappropriate" and guess what happened? The home came in substantially below the offer price. Additionally, they used a recent REO (bank owned property which we all know pushes neighborhod values down) which should not have been included as it was a quick bank sale that is by no means the normal sale in Sherwood Market. Hence, not only did the sales price of the home drop from it's true value market value but the entire neighborhood's home values dropped because of one faulty appraisal. On top of that, no one in this particual appraisers office seemed to care about the poor valuation.

Many who read this may not quite grasp the enormity of it all but there are a couple of reasons this affects us all.

•1. It affects the entire real estate market because I am hearing this complaint from realtors and lenders nationwide. Poor appraisals affect us all at the end of the day.

•2. It specifically affects a neighborhood and I'm sure everyone has a home near them for sale.

•3. If you own a retirement and/or mutual fund, chances are your portfolio and retirement is somehow tied at least to some degree to mortgage backed securities and these poor quality appraisals affect the bottom line security asset your money has been invested. Homes.......

I rarely blog but finally think I have found a great way to vent wrongs... :)

PS. Thank you for replying to my blog early risers and as such, I should have cleaned the sleep out of my eyes before posting or at least finished the 1st cup of coffee. :)