For most people, buying a home will be the most important financial decision of their lives. The biggest concern during the process is affordability and making sure that you are getting a fair deal. The good news for those looking at buying a home in Portland is that the real estate market is hot right now and forecasted to continue that way at least into 2022, with property changing hands daily here and the number of closed sales in 2021 higher than the rates for the previous four. This makes buying now a fairly decent investment in your home’s future value.

Needless to say, there is a lot of competition between mortgage companies in Portland vying for the opportunity to get you into your new home. Your agent can provide some great advice, but you should always be conducting your research, and with these tips, you will be a lot more comfortable that you’re paying a fair price on a new home.

Look At “Comparables”

Your real estate agent will be able to show you recently sold properties that are similar to the house you either have or are thinking about buying. Known as “comparables” or “comps” in the industry, these are homes of comparable quality to yours, in square footage, amenities, neighborhood, and overall condition.

And if you can, visiting comparable houses currently on the market will let you observe trends in more detail. These houses should be listed at roughly the same amount as your home. But don’t stop there – you can gain further insight by comparing different houses, as well. How much more are bigger homes? How much less expensive are smaller residences being listed or sold for?

Lastly, you should look at comparables that didn’t sell. If the home you have just bought or are thinking of buying is roughly similar to another that was taken off the market because it failed to sell, then yours is probably overpriced. Consider the laws of supply and demand, as well – many comparable homes on the market at once should make for lower prices.

Is It A Seller’s Market Or A Buyer’s Market?

In which direction the valuation of a home moves after purchase is known as appreciation, and it mostly depends on where your piece of real estate sits on the curve – is it currently a seller’s market or a buyer’s market?

A seller’s market is typified by a shortage of homes available for sale on the market giving more power to sellers to name their price. This is also known as low supply with high demand. This can occur when a home is located in a particularly good neighborhood, usually with many nearby amenities and schools.

A buyer’s market, on the other hand, results in the purchasers having the upper hand when it comes to negotiating the price of homes. This reflects an increase in supply with a decrease in demand, and mostly is a consequence of economic conditions such as a sudden flood of sellers into the market.

You will want to check the recent history of home sales in the area you plan to purchase in – have prices been going up or down? Indications of a seller’s market mean houses may be overpriced, and, conversely, a buyer’s market could show an underpriced valuation in homes is occurring.

Think Twice About For-Sale-By-Owner (FSBO) Homes

There are many good reasons to hire a selling agent when listing a home on the market. Agents have a lot of information about the market as a whole and can set realistic prices. But many for-sale-by-owner properties are listed with more “emotional” price-tags that can feature significantly overpriced valuations. Also, agents take a percentage of a home’s listed price as a cut for themselves that varies, so you should look into any FSBO price to see if this has been discounted into the final offer.

Is There Any Room For Future Appreciation?

If there are any development plans currently ongoing or expected in your neighborhood of choice, it might mean better appreciation in home value. New schools, shopping centers, and mass transit stations nearby are things that attract buyers, which could drive the prices of homes in the area higher over time. Negative things to look for in the neighborhood are closures of businesses and schools, which will likely drive prices lower over time.

Get An Expert Opinion With An Inspection And Appraisal

Your mortgage lender will have the home appraised once you are under contract. This is done for the lender’s safety, not necessarily yours, as they will want to make sure they can collect their money in case you stop paying and go into foreclosure. This can benefit you, however, as most mortgage companies in Portland probably won’t lend you the money in the first place if the appraisal shows that you are paying far more than the home is worth.

A home inspection is an important necessity when buying, and will reveal any added costs that you may incur and show if you are getting a fair deal or not. This will also be done once you are already under contract and should help you make a fair offer. If the inspection turns up many costly repairs are needed, you will have to pay to fix them, or, you might want to negotiate with the seller to either fix them for you or sell at a discounted price to factor in the costs.

Where Is The Best Value From So Many Mortgage Companies In Portland?

Now is the time to find a fair price in Portland, as the housing market has finally leveled out and mortgage rates are at some of the lowest they’ve ever been! But doing your homework on the best mortgage companies in Portland can be as consuming as researching home values. You can save yourself the hassle on both fronts with The Lindley Team – our advice helps you make the most out of your investment with lending options fit for your finances. Our team also stays up-to-date on fluctuations in value, market trends, and more by tracking the details that matter so you don’t have to. Visit our website for a consultation and helpful tools to give you confidence that you’re paying a fair price at

If you need home financing or have any questions about the lending process, please visit our website and contact us today for more information.

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