In my recent post Does Anyone Remember Sweat Equity Part I, my trip down memory lane had me recalling when I bought my first home when I was 19-years old. As mentioned, that was many moons ago.
To recap: At that time, some 30 years ago, a buyer looking to get into the home ownership game bought a home that needed TLC. It was expected that the homes available to us at that the, i.e., those first time buyer types, would not be in pristine, move-in, turn-key ready condition . . . unless we had the bucks to buy them. Most buyers did not. Heck I was making $750/month at my full-time data entry job. We knew, and expected, to put in our SWEAT EQUITY!
It's my opinion that first time buyers are not thinking long-term plans. Perhaps the HGTV styled to perfection or the Extreme Makeover Home Edition (when a crew comes in and a week later: VIOLA . . . brand, spanky new home) creates this mind set?
Sold for $179,000 on 6/22/11
238 Days on the market -- overlooked and under-appreciated
This property is right around the corner from me, about a mile down the road. I drive by it . . . I actually toured it last summer (last summer 2010) on a Sunday Open House.
Sure it needed some TLC, but was PERFECTLY habitable. 238 days on the market . . . price drops . . . I saw the FOR SALE sign all the time, wondering why no one snapped it up -- GREAT BEAVERTON AREA!!
Then one day, no more sign. I saw a work crew out there, painting, changing the windows. I thought "Good, someone found a terrific home."
Last week, when I received the current listing HOT SHEETS which shows the new listings that just hit the market -- once again -- this home is FOR SALE. When I looked up the property history . . . back on the market for $310,000.
From what read on the listing sheet and current photos, the property was updated and rehabbed. List agent reports it as being "remodeled" from top to bottom. Debatable. To me there is a difference between remodeld from top to bottom and rehabbed, or updated from top to bottom. But what do I know?
With 238 days on the market, the previous owner might have been VERY OPEN to an FHA 203(k) rehab loan. This property would have made a PERFECT candidate.
Listed $310,000 on 1/6/12
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2014 Sq Ft. Home 4Bed 2.5 Bath Family Room, 2 Car Garage, Fenced Yard, Light & Bright. Must See. Has Been Remodeled Top to BottomAll New Vinyl Windows, New Carpet, New Floors, New Appliances, New Paint Interior and out, New Landscaping, New Deck, All Wood Trim Has Been Refurbished, All New Plumbing & Electrical Fixtures.
From $179,000, toss in the updates (maybe $30,000?) and someone is wanting to net $100,000 off this puppy.
WHY aren't buyers in my market GETTING IT!?!
I'm a licensed General Contractor in the State of Oregon. Bet you didn't know that? My license is inactive but I still know a thing or two.
What ever happened to sweat equity?
Many, and I mean MANY moons ago I bought my first home. I was 19, married and we used my (then) husband's VA benefits.
The house WAS NOT in a really great area. It was not in the best condition. It didn't have everything I dreamed of.
But the house WAS NOT an apartment, It was not unlivable. It didn't have bad bones, or bad neighbors. I didn't lack anything. The roof was good, the siding was sound, the lot was nice.
When we bought the home we knew one thing: We would be putting in some SWEAT EQUITY!
Sweat Equity . . . buyers, at that time, were looking for places to move into where they could put in their time, energy and resources in order to get some sweat equity out of it. It was common and more to the point, buyers expected to update on their own -- little by little over time. At that time -- SWEAT EQUITY -- was valued.
In a triage method, we tackled the rooms that needed our TLC the most. We made them comfortable, then moved on. Sweat equity . . . we knew we were putting that in our home.
We worked on the yard and put in a cement pathway, flowerbeds, grass -- both in the front and back. We painted, we tiled, we yanked carpet and we refinished the hardwoods. We put nice trim around the windows, shutters on the outside, we painted, and painted and painted.
On the larger projects we would hire out. We bought materials and hired for labor only.
And let me tell you . . . we both worked 8 hours, full-time jobs. A 40-hour work week is JUST TIME SAME AS IT WAS THEN AS IT IS NOW! Nonetheless, we worked on our home and made it shine.
Why are Buyers in today marketplace forgetting about SWEAT EQUITY?!? They want everything perfect,move--in ready, turn key . . . but they don't seem to like those "perfect" price tags.
Flippers are turning a profit in my local market. They are the only ones that seem to want to put in any SWEAT EQUITY and I see the bumped up prices on their finished product. They are lovely, some of them.
I wish we had the HUD's FHA 203(k) rehab loan program back in the day. Oh how I wish . . .
Why aren't Buyers taking advantage of this?
HUD's FHA 203(k) rehab loan is the type of loan iGIVING BUYERS . . . SWEAT EQUITY
~ Bling'ing In the New Year~Bling'ing in the New Year 2012
It was a pleasure to spend time with Paul Bartnik in his studio in the heart of Downtown Portland the Pearl District . . . and to talk to him about his latest designs.
What better way to spend the first day of New Year 2012 than Bling'ing it up with Portland Jeweler Designer Extraordinaire Paul Bartnik. He's my buddy!!
We all know water boils at exactly 212° . . . 
. . . and that's what 2012 will be . . . hot, Hot and HOT.
But no matter how hot 2012 will be, Paul Bartnik's ice, his bling rings, aren't exactly melting anytime soon.
This little ditty is a hand-crafted Paul Bartnik original jewelry design, set in plantinum.
Paul Bartnik original jewelry in Portland is rolling out the most adorable keepsake . . . engraved baby feet.
This is a charm, about the size of a dime, is engraved from the baby's birth certificate footsie print!
Other designs and sizes are available.
ADORABLE!!
Paul Bartnik uses channel sets, inlays, Paves and filigree work to compliment his original works to perfection.
The jewelry created by Paul Bartnik Design is original.
He either creates his own designs or he works closely with his clients to help them create their heirloom.
Paul Bartnik's jewelry is one-of-a-kind. He creates original jewelry in his Portland studio and often invites his clients to come in to watch him work as he crafts their heirloom jewelry.
Paul offers his clients the opportunity to come in to his jewelry studio, located in NW Portland, and become an integral part of designing their own family heriloom. From carving the wax for the mold, to casting the metal and setting the stone(s), clients really can have a hand in creating their own original jewelry art.
The molds are crafted in his Portland studio. The platinum or gold are poured. Paul sets the stone, engraves or uses other techniques to give the jewelry their originality and uniqueness. Paul uses styles that are modern, classic, avant garde . . . and incorporates the stone(s) to the setting and vice-versa. There is not one specific style that Paul follows. The concept, style and design are all unique and create the one-of-a-kind jewelry heirloom pieces that his clients love.
Paul Bartnik has been designing and making high end jewelry for the last seventeen years. He is JA certified and a graduate of Revere Academy. For six years he held the position of head goldsmith and designer for a well known jewelry store and since then has been independently creating custom pieces for private clients as well as other custom jewelry store accounts.
Paul is a perfectionist with his jewelry design and works with the purest alloys. Working with Platinum and Gold in typically 18 karat and in rare occassion 22 karat, again Paul creates heirlooms with each piece of art he creates in the form of jewelry for his clients.
All unique works of art. Paul Bartnik is a gift to Portland's jewelry scene. A true master who is young, talented and a rare gem himself.
Paul specializes in:
Paul Bartnik's hand engraving skills were developed under the apprenticeship of Hratch Nargizian, a renowned master hand engraver in San Francisco. Hand engraving is a dying art in which very few people possess the skill. Paul can engrave styles such as classic art deco, western to modern innovation with precision and detail.
The entire concept behind all of Paul Bartnik Design original jewelry creations is to make jewelry that becomes a precious family heirloom.
So who am I to argue with Forbes Magazine?!? In a recent article Forbes gave the nod to Downtown Portland Oregon as one of America's Best Downtowns.
I could not agree any more! Downtown Portland is truly a wonderful place.
"When it comes to cities, Portland, Ore., is a unique urban playground of high-end culture, green living and DIY arts scenes. But for a taste of Portland’s best, natives point to the city’s downtown area. There’s independent live theater, beautiful parks, the largest independent and used bookstore in the country and some of the best doughnut shops on the Pacific Coast (not to mention a plethora of Portland’s celebrated food trucks)." ~~ John Giuffo, Contributor Forbes
Portland, Ore has one of the best Downtowns in America. I know, because I live here and I love Downtown Portland! I've always felt Portland's Downtown was clean, safe, charming, quaint and very reminiscent of some European city centers such as Amsterdam. Here's a few topics left off the list of America's Best Downtowns:
More about Downtown Portland being one of America's Best Downtowns
Even more America's Best Downtown Portland OR
I can't stand the "lists" of the Best Places to Live, or the Best Places to Retire. There's typically a 10 top and that makes me wonder what about all the other GREAT PLACES in America to live?
Lifestyles Across America is a great portal for all things best, but I digress.
Portland, Ore.
"Although Portland is well known as a city that is friendly to bicyclists, it also has a walkable and attractive downtown that offers a wide variety of cultural options and commercial options. There’s a vibrant and active arts scene, great food on both the high and low ends, the country’s best selection of locally-sourced craft beers, an attractive and popular riverside park, and Powell’s, the largest and one of the best independent bookstores in the country. And while you can, with some effort walk around much of Portland’s relatively small downtowns, its best to mike (sic) like a local and rent a bike – you’ll get around more effectively, see more of the area, and get a little exercise – all good things in the greenest of 'America’s 50 Greenest Cities.' " ~~ Forbes
Map of Downtown Portland
Find a Portland Realtor® who has experience helping first time buyers in Portland -- preferably a Buyers Agent. Better still try to hire an Exclusive Buyers Agent. Exclusive Buyers Agents work ONLY with Home Buyers, never sellers!
Find an Portland agent who is simpatico, someone who is not going to cause unnecessary drama. First time home buyers are not only making a financial commitment, but also an emotional one. It’s critical, especially if you're buying a home for the first time, that your Realtor® is both skilled and experienced with first time home buyers.
The U.S. Dept. of Housing and Urban Development “Shopping for Your Home” has a section (found on Page 6) which talks about the BUYERS’ RESPONSIBILITY in shopping for a house:
“Role of the Real Estate Agent or Broker Frequently, the first person you consult about buying a home is a real estate agent or broker. Although these agents and brokers provide helpful advice, they may legally be representing the interests of the seller and not yours. . .
It is your responsibility to search for an agent who will represent your interests in the real estate transaction. If you want someone to represent only your interests, consider hiring an “EXCLUSIVE BUYER’S AGENT”, who will be working for you."
Always remember: There’s no “right” time for first time buyers in Portland to buy a home, any more than there’s a "right" time to sell. If you find a home now, don’t try to second-guess the interest rates or the housing market by waiting. Changes in the housing market don’t usually occur fast enough to make that much difference in price and a good home won’t stay on the market long. As your Buyer's Agent I know the current market and can keep my finger on the pulse for you.
Please see my recent post: What First Time Buyers Need to Know
Hard as this may be to hear . . . your parents, or your sister's brother-in-law's uncle probably aren't licensed Realtors®. And although it’s natural for first time buyers to want reassurance for such a big decision, too many opinions and outside static will make it much harder for you to make your decision. I've sold homes since 1999 and have closed 100's of transactions, well over. I will be able, and happy to, answer your questions and address all your concerns.
First Time Home Buyer Tip #4: Accept That no House is PerfectFocus on things that are most important to you and let the minor ones go. As a first time home buyer in the Metro Portland market, chances are you will have a price point: a price that you will feel comfortable with in making a purchase.
The price point for many first time buyers may be modest and conservative and homes will reflect this. Think long-term and think about projects you can do yourself. Sweat equity goes a long way!
Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price, or too many seller concessions may alienate the seller. Ask me about my horror stories . . . when first time buyers "negotiated" too much and killed their own deal, losing out on the house they really wanted to buy. If you try to be a "killer negotiator" you may just end up killing your deal. Again . . . ask me about my horror stories!
Don’t get so caught up in the physical aspects of the house itself—room size, kitchen—that you forget such issues as amenities, noise level, etc., that impact the livability of your new home. While they say "Location, location, location," there are also other aspects of your home aside from location that first time home buyers should pay close attention to. Commutes are a rather important consideration.
Presenting an offer contingent on a lot of unresolved issues will make your offer much less attractive to the sellers. There are many good programs available for the first time buyer, the Oregon Bond Program being one. It's best to find out what you qualify for when buying your first home.
If you're using me as your first time buyers agent, I will most likely do a splendid job of getting the repairs addressed during the repair contingency of your home purchase contract. But, when the home is yours, YES you will have some post-home buying budget concerns. Again #4 above, and you will want to add your personal touches. This is especially important to first time home buyers. Even if you buy a new home, there will be some costs. Don’t leave yourself short and let your home deteriorate. I can help determine deferred maintenance costs.
First time buyers will always have a few "Are we doing the right thing?" thoughts. This is natural and will probably pass very quickly. When you buy a home you should have the "We ARE doing the right thing!" thoughts . . . otherwise, don't buy a house! Again, especially true if you're a first time buyer. Buying a home, especially for the first time, is a big commitment, but it also yields big benefits. I bought my first home I was 19 . . . many, many moons ago. Please talk to me personally about your trepidations.
THEN, and only then, think about appreciation. While U.S. homes can appreciate nicely if purchased correctly (not buying over your budget, not buying in a hot seller's market, etc.) your home’s most important role is as a comfortable, safe place to live and call home! Unless you're an "investor" your home should be just that! But if you're a first time home buyer, your home should be where you love to live.
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EBA Portland, LLC is an EXCLUSIVE BUYER AGENCY. We represent Buyers in Metro Portland 100% of the time with 100% Fiduciary Duty. No listings, no conflicts. We REPRESENT YOU -- the BUYER since 1999
EBA Portland, LLC - Portland Buyers Agent | Buyers Agent Portand is the ONLY Exclusive Buyers' Agency serving the Metro Portland (Oregon) area with ABR, CEBA and e-PRO designations. Carla Muss-Jacobs, Broker/Owner of EBA Portland, LLC has been assisting Portland Buyers since 1999. She started her business when it became clear that Portland Home Buyers didn't have their own advocate in the marketplace. Not only in Portland, but in the Nation, Buyers are under-represented.
FIRST TIME HOME BUYERS Portland OR: EBA Portland, LLC has so much experience with first-time Buyers, and has niched this area of real estate for over 12 years. When it's time to think about moving out of the rental, it's time to get in touch with Carla! EBA Portland, LLC offers a FREE one-hour consultation. A great way to meet and discuss your plans. There is a process in purchasing property, and your entitled to know what that is. As the Buyer, you want to know what's going on every step of the way . . . but as the airlines say "Leave the flying to us!" You know you're in good hands when you engage EBA Portland, LLC to represent you in your home purchase. Buying a home is more then just "location, location, location." It's also: "legal, legal, legal." A home purchase is a legal process from start to finish. Carla keeps track of all the legalites for you, so you can get emotional and fall in love with your home! That's how it's supposed to work. Your buying experience shouldn't be full of stress . . . and Carla strives to provide a smooth transaction. When you're ready to make that move . . . call/email and let's meet for a cup of coffee (tea?) and discuss real estate.
RELOCATING TO PORTLAND | RELOCATING TO BEAVERTON : EBA Portland, LLC services the entire Metro Portland area. Hiring an EBA -- Exclusive Buyers Agent -- is so very important to Buyers who are relocating. An EBA doesn't have a "farm." They are familiar with all the areas. At EBA Portland, LLC, assisting relocation Buyers become acclimated to the Metropolitan Portland makes up a large percentage of overall business. We've assisted Buyers who have never been to the area before. Getting relocation Buyers "settled in" is an important component of assisting Buyers. Relocation Buyers need to know the lay of the land, local areas, schools, etc. and discussing the different neighborhoods is just as important as finding the perfect property . . . if not more so.
If you're considering a move to the Metro Portand area -- Beaverton, Hillsboro, Tigard, Lake Oswego, Tualatin, Portland ...and all places in between -- do yourself a favor! Get EBA Portland, LLC on your TEAM!
For an in-depth consultation about your plans to relocate to Portland, please feel free to contact me.
EBA Portland's Other Metro Portland Guides:
Visit my website: www.EBAPortland.com for MORE
Portland Exclusive Buyer Agent Carla Muss-Jacobs - EBA Portland, LLC
Testimonials:
"Carla is a great realtor. I moved to Portland from the East Coast and needed to get acclimated to the area. Carla helped me determine which areas of the metro area would best fit my needs and life style. She took time from her busy schedule to show me the different neighborhoods and point out the positive and negative attributes of each. She has been kind, caring, patient and of the utmost personal integrity. She always provides honest, objective feedback. I'm recommending Carla to all my friends!"
-R.W., Beaverton, OR
"I would like to express my appreciation of Carla's skills in helping me find the home I wanted. She made astute, intelligent comments about each listing, and never tried to "sell" me. In fact, in some instances pointed out negative aspects that I might have missed. She had useful information to offer about neighborhoods, traffic conditions, access to the city center, etc. Carla was meticulous in preparing the offer, counter offer ... the whole shebang! She has kept me fully informed each step of the way, has always been available for questions, has responded quickly to messages I have left. In short, it has been a pleasure!"
-Shirley L., Portland, OR
"I bought my first home through Carla and I am glad I did. She saved me $8,000 off the list price. I bought a small condo that, I am sure, didn't generate a large commission check for her. But, she worked diligently for me as if I was buying a mansion. I'm a loan officer for Bank of America, and I only know the lending side of a transaction. Carla explained how a sale works and was very thorough in her explanations, assisting me through inspections, appraisals and closing."
-Edna H., Hillsboro, OR
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Disclaimer
Carla Muss-Jacobs is a licensed Realtor® in the State of Oregon. EBA Portland, LLC is incorporated in the State of Oregon. Opinions, advice, are that of the author and are protected under the First Amendment of the Constitution of the United States of America. All comments posted on others' blog sites are the opinion of Carla Muss-Jacobs and are protected under First Amendment statute. Positions, comments, etc. are based on Oregon Real Estate Law and the Common Law of Real Estate. It is advised that the general public seek the advice of a competent licensed Realtor® in their State for answers to specific real estate questions they may have, and in assisting them on their home purchase, or real estate sale. For a referral to qualified Realtor® please contact Carla Muss-Jacobs, Broker/Owner of EBA Portland, LLC directly.
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