Property Search

90% of buyers are starting their property search online. There are so many places to start that it can be overwhelming. A suggestion would be to pick a couple of sites that you feel comfortable using that will allow you to program in your criteria and have control over your search. A couple of good sites include www.OregonBayProperties.com and www.Realtor.com. While you are reviewing the online pictures and visual tours, keep in mind that you can not always judge a book by its cover. Listing agents are not professional photographers and the online appearance does not always show all the qualities of a property, so make sure to read the listing information in detail.

Once you have selected some properties of interest, if you are able, drive by the homes to see if you like the neighborhood, street and general appearance of the house. Always remember that the house may look better inside than from the street and that many cosmetic issues can be changed after the purchase.

Next you should choose an agent and schedule to see property…this is the fun part. By working with an agent, you will be able to save valuable time. An agent will research your housing needs in advance even if you are relocating from another city, show you only those homes best suited to your needs, and suggest simple changes that make a home more suitable for you. It is best to look at more than one home every time you go out to view property so that you have a good point of reference. After the 1^st showing, narrow the field and take a 2^nd and 3^rd look at the properties that are high on your list. Go back at different times of the day so you get a feel for the house and area.

Multiple Listing Service (MLS)

Most properties marketed for sale by real estate licensees are listed in a Multiple Listing Service (MLS). Information about the listing, provided to the MLS by the listing broker, is made available to all subscribing members of the MLS. This information is typically contained in what is called an MLS “printout” or “data sheet.” Most of the information contained in an MLS data sheet or printout is obtained from the seller or third-parties like the county assessor’s office or other governmental entity. MLS data may be incomplete, an approximation or otherwise inaccurate. Personal property cited on the MLS data sheet should be included in the purchase agreement if the buyer wishes to have the personal property included in the sale. BUYERS SHOULD NOT RELY ON MLS- PROVIDED INFORMATION IF THAT INFORMATION IS CONSIDERED IMPORTANT UNLESS THE BUYER VERIFIES THE INFORMATION.

Neighborhoods

Neighborhoods change over time so a buyer cannot expect the area surrounding their home to stay as it is. Buyers concerned about potential development in the surrounding area should check with governmental authorities to determine if any large scale building projects are scheduled for the area. Building permits, zoning applications and other planning actions are a matter of public record. In Oregon, local governments must develop comprehensive plans that guide development over long periods of time. These plans may include “overlay zones” that can have a significant effect upon development. If development is a concern, buyers should check with local government planning departments. Information about planning departments can be found on the county or city website: http://www.aocweb.org/aoc/AboutOregonCounties/CountyLinks/tabid/79/Default.aspx; check with the Oregon Department of Transportation at: http://www.oregon.gov/ODOT/HighwayRegions.shtml. Location within a school district can be an important attribute of a neighborhood. School boundaries, however, are subject to change. If location within a particular school district is material to the purchase of real property, the buyer should investigate the boundaries and the likelihood of change by contacting the school district directly.

Short Sale Properties

A short sale is any sale where the purchase price will not result in sufficient proceeds to pay off the mortgage, or other liens, and clear the title. Short sales are typically made using a short sale addendum that makes the transaction contingent upon the seller obtaining the consent from their creditors permitting a reduction in the closing costs sufficient to close the transaction for the purchase price. Because the transaction is contingent upon the consent of third parties, short sales often fail. Buyers should understand and plan for the resulting uncertainty. Contract deadlines and termination provisions must be carefully considered in a short sale. Because the transaction is contingent on the consent of one or more third parties, sellers can, and often do, continue to market the property and seek better offers. Creditors will often demand changes in the terms of the sale agreement as a condition of giving their consent. Buyers should be prepared to deal with the additional uncertainty created by the potential for multiple offers and third party demands. Real estate licensees can give buyers important marketing, business and negotiating advice and information and can assist in preparation of the sale agreement, but only pursuant to the client’s instructions. Real estate licensees are not attorneys and are prohibited by law from giving legal advice.

Real Estate Owned (REO) Properties

When a lender forecloses on a property, obtains title in lieu of foreclosure or otherwise obtains title to real property as a result of a mortgage or lien, the property becomes what is called “Real Estate Owned” or REO property. Lenders typically sell REO property using the same listing and marketing techniques as ordinary home owners. REO property, however, is almost always sold using forms and procedures developed by the lender. Such forms and procedures can significantly affect a buyer’s rights and obligations in the transaction. For instance, many REO forms delay formation of the contract until right before closing, or otherwise reserve to the seller the right to cancel the contract. Buyers should understand and plan for the resulting uncertainty. REO forms typically contain very detailed clauses that shift responsibility for the condition of the property to the buyer and make it difficult or impossible for the buyer to sue the seller if a defect is discovered after closing. Real estate licensees can give buyers important marketing, business and negotiating advice and information and can assist in preparation of the sale agreement, but only pursuant to the client’s instructions. Real estate licensees are not attorneys and are prohibited by law from giving legal advice.

Some of the Following Content is taken from the Oregon Property Buyers Advisory http://www.oregonrealtors.org/About_OAR/buyadv.html#Financing

What is an IRC Section 1031 Exchange?

It is an exchange of property held for productive use in a trade or business or for investment, for other "like kind" property held for productive use in a trade or business or for investment.

Any taxpayer who has recognizable gain, benefits in qualifying property on which they will pay capital gains tax. It is strongly suggested that you consult with your tax advisor to determine the actual tax benefit to you. To begin an exchange, it is best to put a "cooperation clause" in the sale agreement. This puts the buyer and the escrow officer on notice that it is the seller's intent to complete an exchange.

The following properties are not eligible for a 1031 Exchange: Primary Residences, Second Homes, Personal Vacation Property, Property Held for Resale, Inventory, Interests in Partnerships, Shares in Corporations, Collateral.

In a 1031 exchange, "like kind" refers to the character of the property rather than its use. Most real property which is held for productive use in a trade or business or for investment will qualify. Real property must be exchanged for other real property. A good "cooperation clause" will not only provide the required notice to all parties, it will indicate that the Seller's/Buyer's rights may be assigned to an accommodator and will require the Buyer's/Seller's cooperation in the facilitation of the exchange.

The above 1031 information is intended for general informational purposes. Consult an attorney concerning any questions about your rights or responsibilities in any specific situation. Copyright © 2007. All Rights Reserved. Pacific Northwest Title of Oregon, Inc.