Buying Oregon Property

1. An agent from our team will contact you with a copy of the listing that you inquired about with more details if they are available.
2. The agent will ask you a number of questions about your search parameters/criteria (i.e., bed/bath, price range, square footage, area, when you’d like to buy, etc.) and they will ask if you’d like to receive more listings via email as they become available within your search criteria. This can be updated when needed.
3. The agent will also contact you via telephone (if you have provided your telephone number), unless you request only to be contacted via email.
4. The agent will also ask if you’d like a Relocation Package with information about the area. This will get mailed out in 24 hours.
5. The agent will provide you with a VIRTUAL TOUR of any property on the market. 40-50 Top Quality Digital photos of the entire property, and the surrounding area, from the buyer’s perspective.
6. As a buyer agent we are not pushing OUR listings on you. It is our fiduciary responsibility to get you the best deal for your money.
7. Based on your request for information and how quickly you would like to buy, you will arrange a time to meet with your agent to look at properties that interest you, based on the availability of property.
8. Once you have looked at properties with your agent and have decided that one interests you to buy, your agent writes up an Earnest Money Agreement (either with you in town or long-distance). We have the ability to email or fax any documents that need to be signed in a timely manner.

1. Loan Status Report: It is best to get in touch with a Mortgage Broker as soon as possible in the property-hunting process. This way you will know how much you can afford and you will be able to get pre-approved letter from your Lender.
2. How to Choose: If you don’t know whom you’d like to use or if you live out of area, your Agent can help guide your way, as we work with several highly qualified and highly recommended lenders. In our experience, working with local lenders with national recognition and qualification is the best choice. The reason for this is because they know us and want our business, so they put our transactions on top priority and it is easy to get the paperwork from Lender to Escrow for closing because they are both local.

Deciding on a Purchase Price

1. The Market – How fast are homes selling in the neighborhood and price range you are in? The faster the homes are selling, the better choice it is to offer the asking price, or over (and possibly with an Escalator Clause).
2. Your Needs – How fast do you need to buy? How much money can you spend? Are you paying cash or getting financing? What kind of financing are you getting? Which neighborhood and price range do you want? What kind of house do you need and want? All of these questions play a key role in deciding what price to offer and your real estate agent will help guide you in making the decision.

What Happens When You Make an Offer on a Property

1. Time Frame: Usually the offer has an expiration of 24 to 48 hours from the day it is given to the Listing Agent. Your agent will be in touch with you quite a bit during this time frame to let you know of any conversations that have taken place about the possible counter-offer or of other offers that have come in, in the meantime.
2. Seller’s Choices: At this point, the Seller has the option of accepting your offer, countering your offer, or not responding at all. If a counter-offer comes back, your agent (or their Transaction Coordinator) will meet you at the office or fax or email you the contract right away.
3. Buyer’s Choices: You then have the option of accepting the counter-offer, countering back again, or not responding at all and letting it die. This obviously depends on your needs and how fast the market is moving.

What Happens When Your Offer Gets Accepted

1. Portland Power Search Team Transaction Coordinator: Once your offer gets accepted, your transaction will be turned over to our Transaction Coordinator. Of course, your agent will also be in touch with you throughout the transaction and you are welcome to contact them anytime.
2. Earnest Money and Escrow: The first step is to write a check for the Earnest Money amount that your agent has suggested, based on the purchase price. We will see if the seller has a specific request, but if not you can make sure this check gets deposited in to Ticor Title’s Escrow Account within 3 business days of mutual acceptance (as stated in Oregon Real Estate Law). Your complete contract and a contact sheet of all important parties involved in the contract will be sent to Escrow along with the Earnest Money check. It is the Buyer’s choice for who they want to be their Escrow Company and Closing Officer. Our highest recommendation is Nanette Heath – Ticor Title – 503.219.1150
3. Mortgage Broker: If you choose to have financing for your property, you will need to give us their contact information as soon as you start the property-searching process and make sure to have a pre-approval letter.
4. Inspection: The next step is choosing an Inspector and ordering the Inspection if you have chosen to have one done. It is your choice who you would like to use. We can give you a list of Inspectors and you can decide or if you’d like us to choose for you, we can do so. We usually use HomeMaster. Our goal is to have the inspection ordered within 3 days of mutual acceptance and upon your request have it done within 5 to 7 days of mutual acceptance. The standard time frame for giving the Seller notice to remedy any items on the inspection is 10 business days from mutual acceptance.
   • 1. a. Inspection Highly Recommended: All of the Agents at the Portland Power Search Team highly recommend getting an inspection done on your property even if it is new construction. The reason for this is because it is your protection against any latent defects in the house that may not be known to the Seller, but may have financial consequences for you down the line. Inspections usually cost about $300-400.00, but this depends on the age and size of the home. This cost needs to be paid up front by the Buyer.
     2. a. Scenario 1 – Inspection with Minor Issues: You decide either to waive the Inspection Contingency because the minor issues aren’t worth asking for, or you ask the Sellers to fix them and they most likely will because they’re not very difficult or expensive. Either way, the inspection contingency is waived easily.
     3. a. Scenario 2 – Inspection with Major Issues: You decide to ask for the Seller to fix or replace the items (or) to credit you for the amount that you believe it will cost to fix or replace, at closing. At this point the Seller has the choice to respond to fix all the items (or credit you the money), or to agree an alternative suggestion, or to not fix any items (or not credit any money at closing). If the Seller agrees to fix all items, the Inspection Contingency is automatically Waived, but if the Seller does either of the 2 latter options, then you have the choice to disapprove this response and back out of the transaction and get your Earnest Money back, or you can accept the response and Waive the Inspection Contingency and proceed to closing. (Please note: In addition to this process of Buyer’s Notice and Seller’s Response, the Buyer and Seller need to keep in mind that if a lender is involved (depending on how much the Buyer is putting down) the major items, such as a defective roof, rotting floors, etc, may need to be fixed before closing in order to get financing).

   4a. What Could Happen during Inspection Process?

5. Seller Disclosure Statement: The Seller is required to provide the Seller Disclosure Statement once there is mutual acceptance. The Buyer has the right to revoke their offer based on the information provided in this 4-page document within 5 business days of having received it.
6. Lead-Based Paint Disclosure: The Seller is also required to provide this form if the house was built before 1978. The Buyer again has the right to revoke their offer based on this form within 5 business days of having received it.
7. Appraisal: The Transaction Coordinator will be in touch with the lender throughout the process to check up on how the loan process is going. One important step that the lender needs to take is to order the appraisal soon after the inspection. The appraisal is the lending company’s assessment of what the value of the house is. This is different from market value, although they often can be very close. If the Appraiser notices what he thinks are defective items on the house, he can call for a free and clear Inspection. It’s at this point that the Buyer and Seller need to negotiate how those items will be taken care of in order to continue to closing. The appraisal is paid for as part of the closing costs for the Buyer, it is usually around $600.00.
8. Escrow: The Title company will send you a copy of the Title Insurance for the property. It is the Title Company’s responsibility to find any liens, easements or encroachments that are on the property. They will notify you and let you know what steps are being taken to remedy the situation. If there is a lien on the property, most likely the Seller knows this and has already made arrangements to have it paid off at or before closing.
   Once the Inspection has been waived and the Appraisal has come in at value, the lender notifies the Buyer if there are any last items that they need to prepare loan documents (i.e., home-owner’s insurance, tax records, etc.). The lender should have loan documents sent to Escrow by at least 4 business days before closing. It is ideal to have them at Escrow at week before closing. Once Escrow has received the loan documents, the Closing Officer will prepare the Settlement Statement. She will then call both the Buyer and Seller to come in and sign at least 24 hours before the closing date, often 3 to 4 days. Please Note: If the closing documents need to be sent out of area, this needs to be communicated with the Transaction Coordinator at least 2 weeks in advance of the closing date. Once the closing documents have been fully signed and returned to Escrow, they will be sent to the city to record and the title will officially be transferred. Escrow fees are also part of your closing costs, and they depend on the purchase price, this information can be provided for you upon request.
9. Closing Date: In the state of Oregon, the closing date is usually 24 hours after signing. In rare circumstances the signing and closing can happen on the same day, but this depends on the lender. Most lenders cannot make this happen.
10. Possession: Possession is written into the contract. The Buyer can request possession upon closing or closing plus 3 days. Please make arrangements for your moving vans if possession happens 3 days after closing. The key exchange will be arranged with the Transaction Coordinator and they will notify you as soon as possible as to when and where you can get your keys.

What to Expect of the Portland Power Search Team After Closing

1. We will keep in touch with you via email and send you helpful hints for keeping your home in order throughout the year.
2. We will be available for any questions that you may have about real estate, about entertainment options (i.e., restaurants, trails, parks, music, etc.), about what your house is worth as the years go by, and about whether or not we may have a potential buyer for your home if you consider selling it in the future.

Useful Resources