Why Embracing the Motto “Don’t Do it Yourself” Can be a Good Thing

Thanks to home improvements shows like This Old House, the HGTV network and YouTube how to videos, an entire generation of homeowners have grown up believing that they might be able to to DIY many home projects. And in fact they may be able to. But even if you have the skill to pull off a home project that may work, is it worth it? Here are some reasons why you may want to embrace DDIY—Don’t Do it Yourself!—if not all the time, at least for some of your projects.

Your Time is Valuable

The number one reason why folks choose to DIY is the cost of labor. And, I get it, hiring licensed professionals can be expensive. But your time is also worth something. If you aren’t loving spending your nights and weekends building that fence that would have taken a contractor a day and a half to knock out, perhaps you should evaluate what your time is worth to you and calculate it at an hourly rate. Also, think about the time you would be enjoying the finished product if a professional had completed it in a timely manner. Particularly, when you take on a large renovation like a kitchen or bath remodel, a crew is often at your house all day during the work hours. Ask yourself, if you really want to perform someone else’s full time job (or several people’s) in your free time before you dive in. Additionally, do you want to live in a construction zone for much longer than you have to? I’ve heard countless stories of DIY-ers who have lived without a kitchen, cooking on a hot plate for two years while they painstakingly learned how to tile a backsplash. If the idea of that sends shivers up your spine, think twice about taking on a major remodel without hiring a pro.

You are Paying for Experience

When you hire a landscape designer or a kitchen contractor or a plumber, you are paying for much more for than their time and labor—you are paying for their experience. Think about it: how good were you the first time you did something challenging at your job? What about the 30th time? or the 300th? Hiring a professional who can anticipate the pitfalls of a project and navigate any potential headaches is worth a lot. When I decided to completely overhaul my backyard with a big landscaping project, I could have probably come up with a lot of the ideas myself and even executed a lot of the planting. I could have hired the concrete sub contractors on my own and cut out the designer. But, I wanted someone to advise me on how to direct drainage water off of the new pergola so that my foundation isn’t impacted by rain, someone who would anticipate where the light was falling on various parts of the yard, someone who would know exactly which plants will thrive in this climate in a particular space in my yard. All of that guidance and know-how is invaluable. But that also means that when you hire a licensed professional to do a home project or repair for you, you need to spend some time vetting them. Ask for professional referrals, speak with past clients, ask how they might anticipate problems and if they see any unknowns right now that could be planned for.

Mistakes are not cheap

While we are on the subject of experience, if you are motivated by the possible savings that a DIY project may offer, consider the cost of mistakes. General contractors and designers are also often serving as project manager on your renovation—they know the order in which to execute each step, when to order certain parts and materials (something that has become even more important during our current reality of material shortages and inflation), and how to pivot when things don’t go well. When I remodeled my kitchen, my general contractor anticipated that after unearthing the original Doug Fir wood floors from the orange marmoleum that lay on top, they may not be salvageable. He had a plan B to keep me within budget, should this be the case. And when, as he suspected, the original floors were ruined by decades old tar, he proposed two options: one that would keep me within budget and one that would accomplish the look I really desired. But, most importantly, he had sub contractors in place to complete that work. And there were countless other steps along the way, that had they been done incorrectly, could have cost me big time: what if the counter top space had been measured incorrectly and then the slab was cut to the wrong measurements? Would I have eventually chosen the intricately patterned and hard to install mosaic tile floor if I had had to learn a highly skilled trade on the fly in order to install it? Experienced contractors and design professionals anticipate the WHAT IFs because they know that there will be many and that they need to have a solution or back up plan in place. Don’t underestimate the financial value in that.

Buyers like to see receipts and permits

I can’t tell you how many times I hear a home inspector say “This looks like a homeowner repair” and they don’t mean it in a good way. Womp womp. If you intend to sell any time in the reasonably near future, think about how beneficial it may be to be able to show buyers, all of the work you have had done professionally by licensed contractors along with the permit records. Buyers are also often impressed by the dollar amount that you may have spent. Save the receipts. Track the permits and city records. Especially for the unsexy things: plumbing, electrical, sewer line, foundation work, roof, siding, windows. A lot of buyers do not appreciate these system upgrades until the inspector comes back saying that they are not in great condition. If you are selling and you can show that the home has a brand new electrical panel that is permitted with the city or all new plumbing lines done by a reputable company, that can show the buyer up front that there is a lot of “hidden” value in your home. It also can communicate that you took great care of the home and did not cut corners. It may also influence a buyer who is choosing between your home and another that weekend: Imagine if you had a receipt for the $45,000 of new windows that you installed a few years ago but the competition still has aluminum single paned. Maybe the buyers would not have even recognized the cost of that potential replacement until seeing your records. Save the receipts. I like to advise clients to do so in a Google Drive folder.

*****

Have I convinced you to join me and become at least a partial DDIYer? If you are swayed a bit but still feel the pangs of guilt created by those Home Depot “Doer” commercials, I’ll leave you with one final point: When you hire local tradespeople, contractors, and designers, you are also creating a job and pumping money directly back into your local economy. Maybe that will help you rest well during all the naps you’ll be taking instead of putting that darn fence up.

Inspired to hire a professional and need a referral? I have a whole list of diverse folks who are good at what they do and am happy to connect you. Please contact me and I’ll put you in touch. Coming soon: a more complete directory of my favorite, vetted contractors, designers, and more!

Summer Lovin’

June is National Homeowners Month, and homeowners have much to celebrate. Not only is real estate one of the best investments you can make in your lifetime, owning your home helps strengthen your connection to neighbors and community. It acts as a private safe haven, and, if managed correctly, can provide personal and financial stability.

Today, 65.6% of Americans own their own homes, and as a result of the most recent real estate boom, owners are now sitting on record amounts of home equity. What can you do with that equity? Some of the best ways to leverage your home equity include: financing large home improvement projects that may help raise the overall value; consolidating or paying off high-interest debts like student loans or credit cards; purchasing long-term investments like vacation property; funding college-bound children, a wedding, or even a new business venture.

It is always a good idea to consult with your lender and/or financial advisor to ensure the best course of action. Tapping your home equity in a proper and constructive manner can be a highly effective way to further build your personal wealth.

 

Market Update: June 2021

It’s hard to believe but the average sales price of Portland homes just keeps spiraling higher and higher, up an astonishing 18.9% from last June. The insatiable buyer appetite is gobbling up well-positioned inventory whenever it appears, in shorter amounts of time, and often for over the asking price which continues to be terrific news for sellers. With historically low interest rates, it’s actually more affordable to buy a home today than at any time in the past eight years. Rates are still above the record lows we saw at the end of 2020, but they are better than the slight spike in February and March of this year. Buying while mortgage rates are this low many help save you money over the course of your home loan.

 

Local Getaway: Beavercreek

My wife and I recently celebrated our wedding anniversary with a weekend in nearby wine country. Located just 20 miles south of Portland in Beavercreek, we found one gem of an AirBnB on a small family farm and vineyard bordering an old growth forest. We were hosted by a very kind family in a beautiful and thoughtfully designed passive solar home complete with a magical garden, cedar hot tub, in-house massages, home-cooked meals, and of course, some fantastic pinot noir. Anyone looking for a tranquil getaway in a gorgeous setting, let me know and I’ll spill the beans on the listing.

If you’re looking for a little more data, reach out for a custom analysis to support your personal real estate goals. I am always available to help answer any home related questions you may have.

Market Optimism

Do you fancy yourself an electrician? Perhaps a plumber? Certainly a painter? If you are anything like me, you may think that the easiest, quickest and most inexpensive solution to your home improvement needs is you, your trusty hammer and a reliable YouTube tutorial. Over the past year the DIY industry has been in full swing as more homeowners have been tackling their own house projects. From the bathroom to the garage and everywhere in between, the yearning to correct that wonky cabinet door, replace a loose shower tile or build a backyard fence is evident and the solution clearly in your hands. Yet, homeowners have reported spending an average of $184.13 to fix their failed DIY house projects, according to a new survey from Cinch Home Services, a home warranty company.

These are the most common DIY fails, according to the survey:

 

If you are all right in handing over the hammer to a professional, from roofers and landscapers, to chimney and foundation specialists, I’ve amassed an extensive list of reputable (local) vendors for your every home need. Just say the word and I will happily share a contact, or several. It’s always a good practice to consult more than one vendor for ideas and pricing and never hurts to get a second opinion, aside from that of your loyal pet or significant other.

Market Update: May 2021

The strong sellers market continues to loom large. Interest rates remain at historic lows, multiple offers are the norm on well positioned homes and the average sales price ($557,900 in Portland Metro) is still on the rise. For those considering a home sale, it behooves you to take advantage of exceedingly high buyer demand and before you have any added competition in your neighborhood, with all the competition out there it is best to remain positive. Be patient and try to keep emotional decisions to a minimum – we want you to enjoy your home and your investment for years to come.

There is still a ways to go before we see an abundance of homes on the market but there are some promising signs as of late. As the economy continues to improve (along with those flush with newfound equity and aiming for new horizons), and people get vaccinated and feel more comfortable getting out, more inventory is certain to appear.

Fannie Mae reports consumer positivity regarding home-selling conditions matching an all-time high. And a realtor.com survey concluded that one-in-ten homeowners plan on selling this year, with 63% of those looking to list in the next six months.

Please feel free to reach out if you’d like a custom home analysis or have any questions.

Local Artist Spotlight: Me!

For the past twenty years, I’ve been designing program logos and communication collateral for corporate events. These were created largely for business meetings and incentive campaigns that took savvy travelers to destinations around the globe. Sadly, these elaborate events came to a screeching halt at the onset of the pandemic. As a result, hundreds of thousands of livelihoods have been upturned, including my own; it will be some time before they return in full.

In the spirit of Beeple, the digital artist who recently created and sold the most expensive piece of NFT (non-fungible token) art, I’ve compiled dozens of my own creations, favorite logos from over the years. From Bora Bora to Prague, Japan to South Africa, my aim was to capture the essence of these dreamy locations within a single brand. And now for your armchair-travel-viewing pleasure. If you’ve been looking to jump into the crypto-currency arena and are in the market for an NFT, perhaps I can put my screen-savvy sons to task in getting this onto the EPH blockchain.

I understand most of you are relatively settled in your current homes. But if your friends, family members, neighbors and work colleagues have expressed any interest in seeking greener pastures, your referrals would mean the world to me.

Crafting a Strong Offer: Bidding Wars Explained

Most buyers think that the winning offer in a bidding war is simply the highest dollar amount. It’s not uncommon for me to hear first time home buyer clients say that they often feel perplexed with how to choose a price and rise to the top, that it feels like throwing a dart at a dartboard and hoping for the best. However, price is rarely the only factor and a good agent will spend quite a bit of time gathering information from a variety of sources in order to narrow down what it will take to craft a strong offer. I often advise my buyers to think like a seller. Sellers are not just enticed by a high price; they are also always considering the strength of the offer as well. After all, an offer that does not close is not only worthless but it actually hurts the sale overall because it is unlikely you will ever get all those other offers back. So, how does a listing agent advise their clients on the strength of an offer and how can you make your offer communicate to that seller that you are the most committed and strong offer? Examine these factors:

INSPECTION

Inspection is the most common point at which a buyer terminates the sale agreement. Sellers are very nervous during this part of the process and when they look over multiple offers, they are looking for points where the buyers have shown a commitment to the property as well as fewer opportunities for the buyer to find problems and back out. Of course, buyers want to protect themselves against expensive unknown repairs and costs. However, you should know that some competing offers may waive certain elements of the inspection or the inspection all together. This is fairly risky for a buyer to do and many aren’t willing to completely waive the inspection contingency but many use other tactics to get close. Have you considered shortening the inspection period contingency to 6 or 7 days? Have you considered which inspections are vital to this home? Perhaps, eliminate those that seem excessive. A savvy buyer’s agent will also–with the client’s permission–write that buyer will not ask for specific kinds of repairs or credits. Any combination of these terms can strengthen your offer and give you a leg up when other parts of your offer are not as strong. I must put a big BUYER BEWARE sticker on this one. Inspections are an important factor in protecting you from purchasing a home with problems you may not want to deal with. However, there are ways to demonstrate your commitment to the home while still protecting yourself from catastrophe. Ask your agent to go into more detail about how to carefully deploy these strategies.

APPRAISAL

When a listing agent begins to receive multiple offers, it’s pretty typical for the price to start escalating 5%, 10%–sometimes even more–over asking price. But, if you, the buyer, escalate the price, what will you do if the home doesn’t appraise for the agreed upon sale price? If you have an appraisal contingency in place, you probably aren’t terribly concerned as the buyer. But the seller is very worried. Sellers want to know that the buyer can or will cover the value difference if the appraisal comes in lower than the offer price; the last thing a seller wants is a terminated sale agreement due to a low appraisal. If the buyer has a small down payment, the seller knows the buyer likely can’t cover a large gap so they view the escalation as monopoly money when compared to a lower offer with a lot of money down. If a buyer can’t waive an appraisal completely but have a significant down payment, some buyers will write a clause in the sale contract stating that they will contribute a specific amount towards a low appraisal, which can give the sellers a bit of confidence that the deal will close and that they won’t have to pay for the price discrepancy. Buyers who can’t cover the difference between the offer price and the appraised value should know that sellers may have an incentive to consider a lower offer price with some combination of larger down payment and appraisal contributions/waivers. This is also why a cash offer at the same or even a slightly lower price than a financed offer is so valuable to a seller—cash offers do not have to appraise. If you are financing your home purchase, as most folks are, consider how much you might be willing to contribute towards a low appraisal. A term like that can make you more competitive against cash offers while still preventing you from covering an unknown amount.

LENDER

Another common factor that is overlooked by buyers is the importance of the lender. Once you submit an offer, a strong listing agent will spend time vetting the buyer’s lender to make sure that they are well qualified and that the deal will not fall through. All lenders are not created equal in terms of service or their pre-approval process and listing agents know that. A weak lender or a lender that the buyer’s agent has had no communication with does not give the listing agent or seller confidence. If your buyer’s agent has a good relationship with the lender, the lender is more likely to do things like call a listing agent and vouch for you, write a specific pre-approval letter for that home and price point, and explain how far through the underwriting process you have gone. A strong lender will also reiterate that the close date on the contract can be achieved and that the loan can be processed within that time frame.

If you are financing the transaction, it can sometimes be confusing why the way a buyer pays for the home can matter to the transaction. After all, it all deposits the same in a seller’s account right? Sure. But a financed deal must appraise and takes 30 days to close. That’s 30 days for something to go wrong and for the buyer to back out of the deal. Cash can close much faster—often in under two weeks—and it doesn’t have to appraise or be in any sort of condition, as is the case with some loans. So, what do you do if you are at a disadvantage to cash? You have to increase your terms, communication, and prove to the sellers that you are well qualified to the property. A good lender and agent can help communicate that.

PRICE

It can often feel like a bidding war goes to whoever guesses the top dollar correctly. It is not. Bidding wars tend to be won by agents who gather a lot of information over the course of 24-48 hours about what other offers are in hand and what it is going to take to overcome those offers. Agents compare recent sales in the neighborhood—not just looking at the sale price but also how much over asking the home sold for—and a great buyer’s agent will also follow up with the listing agent several times before submitting and offer to see if they can get answers to direct questions—Has the top bid already exceeded this price? What percentage over asking is the top offer? Is it cash or financed? Then, they inform their client of what it will likely take to win and the client decides how to move forward. Trust your agent to gather the key information and advise you on how to craft a strong offer. Ultimately, you make the final decision about price and terms.

COMMUNICATION

Above all, the communication between a buyer and their agent is an important key to a successful offer as well as the communication between the buyer’s agent and the listing agent. In order to represent the buyer’s best interests in the transaction, the agent needs to have time to study the property, know what concerns, questions, needs, and buying power the client has for that specific property. In a multiple offer situation, it’s important for the buyer’s agent to prove to the listing agent that the buyer is well qualified financially, committed to the home, educated in the process, and trustworthy. This helps build confidence in the listing agent that both sides are going to uphold their end of the contract and see the deal through to the end. Weak communication is often why transactions fall apart. During those initial conversations, agents build rapport; the listing agent is trying to find out how well the buyer’s agent knows their client and the strength of the team: lender, agent, inspector, etc. In multiple offers situations, buyers often feel like the seller has all the cards, but once they are in contract, only the buyer can back out of the agreement; this makes vetting the offers in the initial stage crucial to the health of the transaction. Make sure your buyer’s agent knows your questions, concerns and interest in the property up front and keep them updated along the way. If they know what you are thinking or feeling about a specific property, they can help navigate the situation for your best interest and secure a much sought after home.

There are many more tips and tricks for overcoming multiple offers. If you are thinking about entering into a competitive seller’s market, let’s schedule a buyer’s consultation to go over the many ways that we can highlight your strengths in an offer and secure the right home for you.

Seasonal Real Estate

Growing up in Santa Fe, New Mexico and Tulsa, Oklahoma, I developed an affinity for the seasons. Delightfully, here in Portland, we get a wonderful taste of all four seasons, from the *generous* rainy season to some gorgeous spring days, a handful of summer scorchers and even some blustery snow days. The variety is as welcomed as it is vital, to my mental state anyway. Even the recent ice storm was something to behold. While entertaining in its drama, it was certainly disconcerting for many of us. And yet another reminder of how dear it is …our place called home.

As with the weather, the real estate market typically follows a seasonal pattern. With COVID dramatically altering that pattern in the spring of 2020, and confidence now growing with the rollout of vaccines, we suspect that inventory will start to increase as people feel more confident to sell. Sales in 2021 may not follow traditional seasonal patterns and hopefully, buyer demand and consumer confidence will remain aloft.

Even during the financial crisis of 2008 there was still demand for properties that had the right look, the right price, and were in the right location. In 2021, sellers should follow similar behavior, fixing up their property and pricing appropriately to attract the widest range of buyers. Buyers should be prepared to move quickly, possibly use pre-emptive offers (which are becoming more common), and keep an open mind when looking for their home: all purchases require some compromise (yes, even for multi-million dollar properties), so you might need a little more creativity and patience to take a diamond in the rough and make it yours.

Reach out if you want to know how to best prepare for 2021.

Market Update: January 2021

What a year already. Median home prices in the Portland Metro area reached a new high: $460,000, an eye-opening 13.3% increase over the previous year. Homes sold an average of 11.2% over list price in January, in an average of 44 days on market.

There are a large number of sellers getting ready to list sooner than the typical spring selling market, so buyers should be ready to move quickly, and sellers should be ready for a higher level of competition.

Mortgage Update

Interest rates remain at near record lows, with purchase rates in the mid to upper 2’s and refinance rates only marginally higher.  We are seeing day to day volatility the past few weeks resulting in a slight upward trend in rates.  Among economists there is much disagreement, with President Biden’s proposed $1.9 Trillion Relief Plan of greatest concern. The concern is that this plan may overheat the economy, leading to a stock market bubble and increased inflation, this in turn would cause mortgage interest rates to rise.  The general consensus for 2021 is that we will see more rates in the 3’s and less in the 2’s, which is still low enough to continue to support the strong demand for housing.

For now, rates are at record lows and it’s still a great time to refinance or get pre-approved for a mortgage. If you have any questions, please contact Martin Matsumura at Academy Mortgage via martin.matsumura@academymortgage.com or 503.536.9385.

 

How We are Handling the Second Wave of COVID-19

November 16, 2020 Update

As we all know, COVID-19 is on the rise in Oregon and Governor Brown has instituted a statewide freeze.  At Inhabit, we are committed to keeping the health and safety of our clients and agents at the forefront of everything we do.  Strict office policies are in place to ensure a safe work environment.  We also updated all of our client engagement protocols so the health and safety of our clients come first.  Last March, we launched our Couch Concierge service that brings the entire home buying and selling process to our clients.  Everything from virtual open houses, live video showings with our agents, to virtual contracts and closings.

Here is a recap of how we continue to tailor and improve our services during COVID-19:

Our sellers shouldn’t worry about canceled open houses.  We will create a digital marketing campaign that brings your house to potential buyers all without risking anyone’s health or safety.  Our agents will tailor a showing plan that you feel the most comfortable with.

We have a lot of active buyers right now.  To short-list property options, we offer live video tours.  Your agent will walk you through the property showing you every nook and cranny with honest feedback on quality or construction issues they see– all from the safety of your home.   

In-person tours of your “must-see” homes are still an option in most cases when necessary, but with precautions we take very seriously.  Our agents are following the recommended 6 ft of social distancing, mask-wearing, and strict hand-washing and disinfecting policies.  We will not show homes to anyone that has cold or flu symptoms or has had any exposure to COVID-19 within 2 weeks of the showing.  As your agent, we promise you the same courtesy and will pair you with another Inhabit team member to safely show you the home if we are under the weather or are concerned about personal exposure.  Your agent will provide our COVID-19 Safe Showing Policies for your review prior to visiting any property in-person so you can make the best decision for your health and safety.

As a small business, we put the care of our clients and agents first.  We are all in this together. We promise to use integrity and knowledge as our guiding force.

Here’s to peace, health, and prosperity for all of us in the coming months.

Eric 

Meet Our Founder

Our fearless leader, Eric Hagstette, is this month’s cover feature in Portland Real Producers Magazine.  Click the magazine image below to see the full article and learn what motivates this great guy.

 

Here’s the transcript of the article:

Eric Hagstette’s social conscience is one of his strongest driving forces. Owner and principal broker of Inhabit Real Estate, Eric is this month’s Top Producer.

Starting his career in business to business sales for a Fortune 300 New York-based company, Eric transitioned into real estate in 2005. He looks back on his time in Corporate America with gratitude and appreciation for teaching him the fundamentals of sales, marketing, and most important, follow-up. “This is where I also learned that excuses are…just that,” Eric explains.

As a longtime Portlander, Eric is passionate about our city and how it is being affected by the pandemic, wildfires and smoke, protests, riots, and the current political divide. When asked how the wild ride of 2020 has affected his business, he told us, “Big question. The big picture crises we’re facing are much bigger than our work. They are more important than selling real estate, and we’re right in the heart of all of it. ‘Home’ has never been more important and we are in the business of ‘home.’ I feel torn between all of the hardships resulting from COVID-19 and the abundance that real estate is providing as a result of these unprecedented times. Transactionally speaking, we are in the right place at the right time… there is no shortage of business. Portland has certainly seen its day in the news through all of this and the long-term effect on our business is hard to predict. One of the silver linings of all of these things, from my observation, is a galvanization of the brokerage community. From COVID-19 to wildfires (and everything in between), I’ve seen brokers work together like never before. Kudos to all of you. Thank you.”

Real estate brings with it many rewards. For Eric, one of the biggest rewards comes in the form of the various relationships he has been able to foster over the years. “Hands down it’s all about the people. Not just my clients but my colleagues, my team, my mentors, my co-op agents, my vendors, our neighbors.”

Eric also finds fulfillment in owning and managing Inhabit Real Estate. “Operationally, managing a residential real estate brokerage while simultaneously running my personal sales business allows me to wear all the hats. From coaching my agents to prospecting for business, writing copy for ads, working on budgets and business plans, and everything in between. And who doesn’t love houses, photography, interior design, architecture, marketing, continuing education, networking, and all the fun stuff? Of course, our job also comes with all the tough stuff like unpredictable market conditions, challenging clients, paying taxes, delivering bad news, the emotional roller coaster of real estate, and the woes of being self-employed.

Luckily, my attention span helps me thrive in this multi-tasking, fast-paced, up-and-down market. I honestly love all of it.”

Finding passion in all of the possibilities that real estate affords, motivates Eric on a daily basis. “I have always been passionate about the unlimited possibilities that a real estate license affords us. With hard work and a simple plan, the sky’s the limit for REALTORS®. Playing such a pivotal role in times of transition for my clients is a huge responsibility. I have always held the importance of this piece with passion and drive. As a brokerage owner, I am passionate about teaching, training, and watching my brokers achieve their goals and dreams through real estate.”

Eric’s biggest reward in life is his family. Due to the pandemic, Eric has spent more time at home with his family than at any other time in his professional career and for him, this has been a huge blessing. “My family is the driving force behind my success. Not only do they motivate me every day but, as many of you know, to support the life of a REALTOR® requires a special family support unit. My family rides the roller coaster right by my side and they provide a safe haven to escape to. I’ve been married to my wife Kim for 21 years. I thank my lucky stars every day that our paths crossed. Not only is she my life partner, but she’s also my business partner and co-owner of Inhabit Real Estate, all the while holding down the fort at home and running her award-winning interior design business. We have two amazing teenagers who keep me in check and make sure I’m as ‘woke’ as possible for an almost-50-year- old dad. I learn a ton from my kids. I have so much hope for the younger generations who know more about equality, acceptance, and non-judgment. We can all take a note from the kids of today and appreciate their fire and passion, their resilience and brilliance, and their endurance through these unusual times. And, by way of osmosis and exposure (to me), my family knows more about oil tanks, sewer lines, multiple offers, and even the value of off-street parking.”

Along with the rewards of real estate comes the challenges. This year has been trying for everyone. The devastation from wildfires and the loss of life and business upheaval caused by the pandemic is horrific. We asked Eric what new challenges he has been facing and navigating since the pandemic hit and he told us, “Wildfires, extremely hazardous air quality, political unrest, social outcry and one of the most significant Presidential elections in history, all the while keeping pace with one of the busiest markets I have experienced in 15+ years of selling real estate. The erosion of affordable housing in Portland is accelerating at light speed and this is an indirect challenge that we cannot turn a blind eye to. The pandemic, wildfires, and the election will be in our rear-view mirror in the not-too-distant future, but not addressing the homeless crisis will likely have the greatest future impact on Portland livability and the bottom line of our business.”

Eric has a competitive side that he feeds with his love of cycling and bike racing. He has loved bikes since he was a child and has been racing for the past 10 years. “I’m a die-hard cyclist and bike racer. I love carbon, clicky pedals, training, going fast, and Lycra (yep, I said it…I love Lycra). Cycling keeps my body fit and my mind sane. It feeds my competitive spirit and, unintentionally, is a huge part of my networking sphere. My relationship with my teammates and fellow cycling friends is based on trust and trust is the foundation of our profession so these things go hand in hand.”

The Hagstette family are water enthusiasts. If there is water, you will find them nearby or right in it! “My family loves the water. We have a floating home and spend the summer paddleboarding, kayaking, floating, boating, swimming, and fishing.”

As you would expect, with his strong social conscience Eric does not just think about the changes that need to take place. He helps facilitate the change. Annually, Inhabit Real Estate picks a charitable cause that focuses on alleviating homelessness, “We have thrown hammers for Habitat for Humanity, organized holiday toy drives, and collected much-needed essentials for homeless children and families. As a family, our focus is on Transition Projects. Every month for the last few years, we have prepared and served dinner and lunches at multiple locations that are focused on men, women, and families transitioning out of homelessness.” Eric also aids the community by coaching youth swimming and sponsoring free junior bike racing at The Portland Trophy Cup Cyclocross series.

In closing, we asked Eric if he would like to communicate anything additional to the readers of Portland Real Producers magazine. Without hesitation, he responded, “As a longtime Portlander, I’ve always held a special place in my heart for this amazing city. I am sure I am not alone when I say that Portland is at a very important crossroads. ‘Home’ is our business and we’re paid to sell the ‘Portland experience.’ ‘Home’ doesn’t just apply to our qualified buyers and sellers. It applies to all people occupying the space called Portland including those with the means to buy or rent real estate and those that are sleeping outside under tarps. We must realize that even though we only serve a portion of Portland residents, they all make up the community, whether they have a house or not. It is our duty as ‘real producers’ and leaders in our industry to help Portland through these growing pains. While the country seems to grow in divide, it is very important for us to come together to put Portland back on track to be the darling of the Northwest. As we buzz through town enjoying the fruits of this market, I encourage you to think more critically about the ‘in your face’ issues that are easy to turn a blind eye to: mental illness, drug addiction, systemic racism, climate change, and environmental destruction and affordable housing. Raise your voice and vote. We must demand more from our local leadership and lean hard on them to properly address these big issues which not only affect our profession but our lives as well.

 

 

Unlocking Trapped Equity

Did you know that your home can be an excellent source of funds? Tapping your home equity can be a low-cost way to borrow large sums at favorable interest rates in order to pay for home projects or debt consolidation. Home equity debt is not a good way to fund recreational expenses or routine monthly bills.

You’ll want to choose wisely how you utilize these funds, but given the incredibly low interest rates, now would be a perfect time to consider this option. Here are some of the most common ways to access the equity in your home: a Second Mortgage or Home Equity Loan, a Home Equity Line of Credit (HELOC), and a Cash-Out Refinance. Here’s a link to the differences between these options. The best option for you will depend on your financial situation and future plans.   

The smartest strategy for accessing your home equity really depends on what you want to do with the money. Some examples are: lump-sum expenses or debt consolidation; home improvements or starting a business; pay-off high interest loans or credit cards. These options can be extremely helpful for anyone saddled with unexpected financial challenges. Home equity debt can also be a good way to invest in the future. The key is to make sure that you are borrowing at the lowest possible interest rate. Rates are now at historic lows.  

A Cash-Out Refinance was a personal option for my wife and myself. As interest rates started to decline, we opted to refinance our first home, which we still own. We were able to pay off some credit card debt, and more importantly, we were able to use some as a down payment toward the purchase of a second home.  

If you’d like to learn more about what your current home value is and how to make it work for you, I’d love to be a resource for information or to connect you with a mortgage advisor to help you unlock some of the equity in your home.

Impressions of Home

Perhaps some of my fondest childhood memories are from our family home in La Cienega, a rural community just outside of Santa Fe, New Mexico. The home itself was a traditional adobe with a maze-like floor plan, flag-stone floors, creative built-ins and seven fireplaces! None of the fireplaces had dampers (= bad energy score!) and there was a cracked viga (traditional wooden beam) that worried us all … gotta tend to those home repairs! But what captured me most was the surrounding 2.5 acres and beyond. Running alongside the home was an irrigation canal filled with pollywogs and wild spearmint. Next to the canal an enormous cottonwood tree and treehouse with a perilous entry over a cliff. We had endless dirt hills for forts and Big Wheels and a creek where we’d build dams and go fishing. It was a truly magical place to grow up.

La Cienega, New Mexico • 3 bed 2 bath 7 fireplaces 3658 sq. ft. 2.5 acres.
This house was purchased for $43,500 in 1975. Now valued at $471,000.
The purported interest rate back then was near 9%.

My father once arranged for my sister and I to play Zoolander and model some clothes for a Japanese children’s fashion magazine called SESAME. The photographers chose our home as a backdrop for many of the photos. Below you can see the sketchy treehouse above the cliff and irrigation canal and an old claw-foot bathtub my parents eventually installed in another home. I don’t recall receiving any dough or threads for my hard work, and I can guarantee you I haven’t dressed this well since. Just glad they captured my happy mug!

 

Please feel free to reach out if you have any questions about what your home equity can do for you.

Ways to Support Our Black Community

Silence is Violence. That statement on a protester’s sign really hit home. By sitting on the sidelines and not voicing our collective outrage, we are perpetuating racism. Our greatest tool is our voices — not quietly commiserating, while keeping our mouths shut. We have the power to vote for the right leaders, raise children that celebrate differences, hire the right people and support our community’s Black and minority run businesses (to name just a few). 

I have compiled some of the many resources shared with me. Here are a few of the things we can do right now in our fight for social justice-

  1. Educate yourself on what challenges our Black family members face on a daily basis.  Here are a few resources worth exploring:
  1. Sign a Petition (DontShootPDX.org has also put together a list of other petitions and useful resources):

The Color of Change petition that asks Minneapolis Mayor Jacob Frey to block the involved police officers in the George Floyd case from receiving their pensions and from becoming police officers again.  You can also text “Floyd” to the number 55156.

  1. Donate to organizations like your local Black Lives Matter chapter. Other great organizations are:
  1. Support Black and minority run local businesses:

https://mercatuspdx.com/

https://blackpdx.com/

https://iloveblackfood.com/

 

Race and racism is a reality that so many of us grow up learning to just deal with. But if we ever hope to move past it, it can’t just be on people of color to deal with it. It’s up to all of us — Black, white, everyone — no matter how well-meaning we think we might be, to do the honest, uncomfortable work of rooting it out.

Michelle Obama