Floating home financing is available. Refinance options are also available. Here is a list of lenders who are participating in the 2010 market. I expect others to get involved by Spring or Summer of 2011.

Banner Bank: Fixed rate 6.25%, 15 year balloon with a 25 year amortization. This loan can be reduced to 6% with an automatic payment from a checking account at Banner. Call: Lenny Severs 971-255-5640 or Laurel Buncak 503-534-1000.

Other lenders are:

Rivermark Credit Union: They can do refinancing at 7.875 % with a 70/30 loan to value. No cash out…they will allow only refinancing of present lien on the home.

NW Resource Federal Credit Union: refinance funds only. 5.875 fixed or 5.375 ARM. They hope to offer purchase funds in 2011. Call Cody Hager:  503-220-2592

If you are looking to purchase a floating home, ask if the seller will consider financing your purchase for a term of one to five years. This may be a good alternative option. All floating home loans require a down payment of at least 20% unless you can make other arrangements with the lender (like you might have your entire 401K invested with them). Your financing will depend on your stellar credit rating of 7.2 or better. You will have to have a float inspection done on the property when you obtain a loan. A float inspection costs about $400 to $500 and is well worth it. The float will have a rating of between one and five, with five being super excellent. I will talk about floats in a separate posting.

Don’t hesitate to call me if you have any questions on financing or on floating home lifestyles! I would love to talk with you and help you enjoy this cool life on the water. Cover image courtesy of www.Shelterness.com.

Floating Homes

I am not complaining!! Banner Bank finally responded to floating home Brokers to re evaluate their mortgage rates and terms! This may loosen up the market for fabulous floating homes in the Portland area. The new rates are in line with the super rates available for on land homes.

Banner is offering 6% purchase loans if you have excellent credit and a down payment. Folks who are looking at the floating home life style are typically good credit risks. They are conservative financially, employed, have some money (because it just costs more to buy into this cool lifestyle) and pay their bills.

If you have ever considered living on the water…now is a great time to take a deeper look! There are some fantastic prices of these unique, historical homes.

Cover image courtesy of EvenConstruction.com.

All for me and None for you! I don’t want that axiom to be true but the disrespectful behaviour of some people make  it  hard to deny. Here is my most recent experience. I had (past tense is important here) a client I have worked with for 3 years. I advised her about selling her condo. I provided her with resources to help her get moved. I found her a rental that was exactly what she wanted in the location she wanted…..and I called her about it as soon as it became available. I pushed aside the niggle in my heart about the Snake Oil Salesman real estate broker who lived nearby because she had spent lots of time with me on my boat and in my home, and she had called me to show her many homes to buy. She was waiting to find the perfect place, but meanwhile, I showed her everything that came on the market in her price range and location. When an appraiser called me for advice on pricing a bank owned property in her area of choice, I gave him all the information he needed and called her as soon as I hung up the phone to let her know that a bank owned property that fit her needs would be coming on the market in a week or so. I watched for it. As soon as it hit RMLS I called her and arranged to show it to her. She asked my advice on the building….I put her in touch with some resources that would know about her questions. She told me she wanted to show it to her contractor before writing an offer. OK….I made time for that, but the contractor cancelled….maybe. She told me she wanted to talk it over with her boyfriend. OK. I told her to let me know just as soon as she was ready. And she did. She had her boyfriend call my cell phone and leave a voice mail telling me that she was going to write the offer with Snake Oil Salesman because he was the listing agent. She hoped we could still be friends. HA.  Can we be friends still? From my point of view we never were friends. I was HER friend to be sure, but it is obvious to me that she did not consider me her friend.

The thing is, real estate brokers depend on their sphere of people they know to build their business. What we sell is our knowledge, our experience and our service to get you what you want. We know resources, trends, the market. We are the third oldest professional license in the country after doctor, lawyer….no it isn’t Indian Chief..it is Realtor!  I know there are lots of Realtors, and my friends may use another one to represent them. But this woman “used” me, and she didn’t respect either my business or our friendship. She thought that she might get a better ‘deal’ because she could discount the price she would have to pay by the amount of my commission. That is just laughable, especially with a bank. But she did show me that for her, it is all about the money and she is willing to sell her integrity and to convince herself that I am angry about not getting this transaction. The reality is that I feel used and that my friendship was thrown under the bus by her.

Wow.  Times are stressful for homeowners and for people just looking for shelter! It is time for a new perspective on the human condition in tough economic times and a seriously changing economy.  I see our community as reaching deep for connections….just take a look at all the social networking sites! And then, pow! your site gets hacked, and you take it down. Then you are unconnected. Or are you? Everyone from Google to Dictionary.com is selling the places your curiosity takes you on the internet. We have never been so connected….photos of our friends and family, our summer vacation trips, experiencing the first day of school for our children or grandchildren….all of it is out there in the clouds for the world to see. And beneath all that connectivity is the rumble of disrespect.

When I opened my company in January 2009, a service I added for my client’s benefit was property management. My thought was, if my client could not sell their property for a decent price, and renting it worked for them within their personal financial situation, then I could honestly tell them  to hold on to their property for a year or so with the goal of selling it when times improved. OK….like everyone else, I thought they might improve a bit sooner, but that is another story. I wanted to provide a good choice or option for my clients. What I discovered when I began renting out property was two things: the owner of the property had a deeply held belief that any renter would wreck their property. That no one who could not afford or choose to buy a home would treat a home well. That a renter would pound holes in the walls, scratch the floors and generally live like a low life because they did not own the property. The second thing I learned was that there are terrific renters in Portland who choose to rent for a number of realistic reasons. They might not have a down payment, they might be waiting for market improvement, they haven’t worked at their present job for long enough to pass underwriting standards for a mortgage, they want to try out living in an apartment or a house before buying or they couldn’t sell their own home but needed to move for some other reason.

My last conversation with a home owner was disturbing on some level. In my initial interview with her, she rolled right over my questions about her home. She wanted to tell me her views of renters. The conundrum here is that while she wants to rent out her condo, she dislikes and disrespects all people who could afford to rent it. She does not believe that a good person, who values a clean and well maintained home, is looking for a place to rent. She confuses a high rental income with a high quality renter. If they can afford a high rent, then what is wrong with them that they don’t just buy a home? I began to realize that no matter who applies to rent her home, once they move on, she will regret having rented it even if it comes back to her unscathed.

Ironically, owners of property in the lower rent area, are much more respectful of their renters. They try harder to make their property desirable. And they get a top quality renter. So what is the answer? Or maybe, what is the question! We are definitely transitioning as a society. But the truth of home ownership still stands: it has been the key wealth builder for the average American for many generations. Renters should be respected. As I tell my clients: People who rent are buying a home; it’s just not their own. They are buying it for you. I suggest thanking them by believing that they will take care of your property, being realistic about the fact that there may be some upkeep and damage while they live there, protecting your investment through insurance and through choosing the right person to rent your home, and establishing clear, business-like expectations for their tenancy. Be a good landlord, but also be a human being.

Seaman, Trusty Dog of Lewis Meriwether

I met with a new buyer client (rare these days….send me more!) to discuss her goals and options. She is a first time home buyer and had been referred to me by one of her friends who had sailed on our boat, The Dew Drop Inn. She had already met with another agent who has lots of listings, but for some reason she was not happy with that agent. It turns out that trust is a huge factor for her.

So here is a buyer who has a large down payment, and also has specific wants and needs for her first home dream house. After some talking, and much reflection, I realized that her natural for her) inclination to be wary, was triggered by some common wrong thinking on both sides. My buyer contacted the listing agent because she thought she would get a better financial deal if she made an offer on a house through the listing agent. This is a common misconception from even experienced buyers. While the listing agent is held to a high standard of truth and fair dealing, she is not bound to discount her contracted commission with the seller just because she brings a buyer to the property. Got that? Not bound to discount her commission. The other problem that came up for this buyer is that the listing agent decided to show the buyer only her own listings. Why? Well, the listing agent at this point was representing her clients, the sellers. She had a buyer who had money to buy, so she performed her duty to her seller clients by pushing their property to this buyer first.

The upshot is that the buyer, while inexperienced, is very savvy. She wondered why she was only getting shown properties that were listed by her agent, and these properties were not in line with her dream home expectations. This resulted in the buyer developing a strong sense of dis trust in her Realtor. My message here is that your Realtor, who by the way can go by many interchangeable names: Realtor, Agent, Broker: is investing in your dreams by working with you to buy your dream house. I think it is important that you trust your Realtor. How can this happen after an experience such as I have described above? Well, by interviewing the Realtor and by getting a referral from someone else you trust. When you interview the Realtor, start out by being open. You have nothing to lose. Tell her what you are looking for and use words like “important to me”, “not negotiable”, “must have”.  We all know that if you are able to find most of your wish list in available properties, you can decide to let go of some items on your list.

Ask good questions, and evaluate how well the Realtor listens to you. Some things you might want to cover are: How available are you? How do you Communicate…phone, email, text? Will you show all listings or only your own? What is your greatest strength? Do you have an area of expertise?

Be prepared to let your Realtor know what is really important to you. Your Realtor may be interviewing you as well. Do you have your finances in order? Do you have a goal in terms of time? Have you spoken with a lender? Are you easy to get in touch with? Are you reasonable and will you listen to your options from the Realtor? Do you like dogs?

We had a great time in St Helen’s on the 4th. The 4th is Steve’s birthday, and we have spent the last several 4th’s in this cute little Columbia River historic town. The city of St Helen’s has a great city docks. There is no charge to stay for a few nights. We go with friends, and secure really good spots on the docks to watch one of the best fireworks displays around. They also have a cute park with a gazebo right there. This year they had good concerts and some terrific belly dancers. It was lots of old fashioned fun.

Belly Dancer on the Fourth

Sailing in San Diego

In sail boat racing, heart and commitment are as true as in a marriage or any relationship. You become part of a team, you sign on “win or lose”. There is no guarantee that your boat will win, no matter how much you invest in mylar sails, bottom racing paint or matching shirts. You show up and try hard to do your share. You are at the mercy of wind, experience and tactical expertise.  If you win, champagne , high fives and fly by. If you lose, cold beer and mental replays of every tack and jibe maneuver…..get ready to come at it again tomorrow.

I recently had an experience that I am trying to learn from. I hired a marketing expert to help me configure my business presence. He wanted to get paid for his work, so he brought along a contract for me to sign. I had my needs in mind. I wanted to refresh my logo with some color, update my look on my blog and other internet sites to be more congruent with my business intentions, learn some new marketing techniques that would communicate my expertise in the real estate business to new clients.  We made an agreement. I was the buyer. He was the seller.

I wrote up all my insights into my business, providing a lengthy and in depth look at my commitment to my clients, my knowledge, my business ethics, my target audience. I wrote it all down and gave it to the marketing expert who copied it into a document that he returned to me along with a bill. When I asked him where the ‘new’ marketing ideas were, he referred me to the contract I had signed. He just kept on saying, “according to the contract …..” over and over until I got it! He was not looking at my business as a long term relationship. He was only looking at my business in terms of a transaction by contract. He did not build into his plan a way for me to refer other businesses to him or to secure me as a repeat client. His business was all contract…..and our relationship would end when our contract ended and the bill was paid. He didn’t really care if I was happy or not. My happiness with his work was not addressed in his contract.  Neither of us got what we wanted from this arrangement. For me, there was no heart and no committment from him. For him, I would not be finishing out our contract although I did pay my bill.

So the question of the day is, “What is included in the price?”  Clearly, each of us saw different things included in the price.  I saw a commitment to my business. If I was not happy, I saw someone who would drink a cold beer and come back to the table ready to see what was missing and make a new plan. I didn’t plan for someone who would tell me that if I was not happy, I would have to pay the bill and then agree to pay more until we came to agreement. Client satisfaction was and is top most in my goals for my business, and I (as the buyer) simply built that in to my expectations of someone else’s business. But it isn’t always true.

When you hire a real estate broker, I hope your expectations will be be included in the price. In my opinion, you should expect to get what you pay for. Your experience should include an ongoing relationship with your Realtor, whether you are buying or selling, commitment to your happiness and satisfaction as a client, ongoing information that will keep you informed and that will help you plan how to maximize your investment in your home or other property. You shouldn’t feel that when your contract expires or is paid in full, your relationship with your Realtor is finished until you need to sell or buy again. You should never feel that you have to pay extra for ongoing advice or information from your Realtor. It should always be included in the price as a lifetime guarantee.

Oh…and as the buyer of the real estate services? I hope you will agree that your loyalty and your referrals will be  to your Realtor. If you are happy, telling your friends is a good way to support your Realtor’s business. No strings attached. In this business, you get what you pay for on both ends.

What happens to unspeakable in floating homes? No, it doesn’t go into the river. Floating home toilets are handled with Honey Pots. These are barrels of fiberglass or steel that are under the floating home. They usually (and should) have an access panel through the deck that can be lifted up in case something goes wrong and you need a plumber to work on the honey pot.  How it works is this: you flush, the contents of the toilet bowl are flushed into the honey pot. The honey pot has a small pump that pumps the contents  to a main sewer line that runs under or next to the docks.  All the honey pots in the  moorage are pumped to a large holding tank usually located near the bottom of the ramp that comes down from the land into the moorage. That larger holding tank is serviced by a powerful pump that pumps the contents into the main sewer system for Portland. Thus, you have public sewer for your home.

If you notice sewage backing up in your toilet or shower, call a plumber. Not all plumbers work on floating homes but I can refer you to a good one. The maintenance of the honey pot is that periodically, usually every 5 years or so, the honey pot pump will need servicing or replacing. Cost is from $600 to replace. You should ask the diver who inspects your home when you buy it to take a look at the honey pot and tell you if it is in solid condition under the water. Your home inspector can take a look at the top of the tank and let you know if it appears to be working correctly. If the home inspector doesn’t know anything about honey pots, and you are concerned about it, ask a plumber to take a look.

Maintaining a well working honey pots insures that you can swim and eat the fish that you catch from your very own dock!

Once you find the perfect floating home is definitely NOT the time to call a lender. Call the lender before you begin to look! Loans to purchase floating homes are available from your credit union or from some small local banks. This year, it looks like the best rates are available from Banner Bank. By best rates, I am talking about 7.1% with a 20% down payment. Get friendly with the lender you choose so they can keep you informed about any changes in the loan market or terms available as you look for the perfect home.

When you make an offer to buy a floating home, it should be subject to both a property inspection and a float inspection. The property inspection will tell you all the good, the bad and the sinkable in your potential home. The float inspection is very important. I will write more about the float of a floating home in another post! The main message here is to get your money ready by finding out exactly what is expected of you by the lender you choose.

Wow. We had quite a blow over Easter weekend. The house rocked! This happens very rarely. The storm blew in from the South West and we had white caps on the harbor….and my poor tulips had to demonstrate their resilience! Floating homes are attached to the docks by stationary metal hinges called stand offs so they are very secure. None the less, it is always exciting to see a big storm. Our boat is moored right at our house, tied with docking lines to our swim float. This part actually came loose during the storm but we caught it before any damage was sustained. There are some great new listings on the river right now! Why not go looking? Give me a call or shoot me an email.

Floating Home loans are different than traditional or conventional mortgages. They are not usually offered by mortgage banks. Instead, you will shop for a floating home mortgage from a credit union or a smaller bank. The interest rates are higher than conventional mortgages. Right now, you can get a conventional mortgage for around 5% if you have excellent credit. Floating home interest rates today range from 7.1% to7.9% depending on the lender and the way you agree to repay the loan (like an automatic deduction from the lender’s bank). The term of the loan will be about 20 to 25 years. You will need a down payment of at least 15% to 20% of the purchase price.  Floating homes are considered ‘personal property’. Never the less, you will enjoy the same benefit of owning a home as other homes; the interest on your mortgage is tax deductible. Cover image courtesy of © Thomas Stankiewicz/Look/age fotostock.

Floating Home buyers are starting to cruise the docks. It is fun to check out floating homes, and Portland is one of the few cities on the West Coast that enjoys a thriving floating home community right in the city! Financing is a bit different for floating homes. It is more expensive than regular mortgages, and it is not offered by all the banks. Your credit union may offer you a good option if your goal is to purchase a floating home. Other options are smaller banks and credit unions. This year, Banner Bank seems to have the best rates. They are offering 7.1% interest if you open a checking account there and have the house payment automatically deducted from that account. Other mortgage rates seem to be hovering in the 7.9% range. Terms are 20 to 25 years. The down payment is 20%. But the great news, financing is available!  I will offer more information on how to buy a floating home in days to come!Great Music to Cruise the Harbor. Cover image courtesy of Sauvieisland.org. 

So beautiful, the line of blooming Cherry Blossom trees. Spring in announced by these delicate, fluffy blooms. People are out taking walks, children are playing, the grass is getting ready for Easter eggs.

Cherry Blossoms on the West Bank

Wow! Look who moved in to the East end of Hayden Island! The beautiful pair of Bald Eagles was noticed by me when we returned from a day of sailing on the Columbia. I am looking forward to watching them through the summer. I wonder how they will get along with the Osprey who live on the Dolphins across the channel.

Cover image courtesy of Wikimedia Commons.

Bald Eagles On Hayden Island

The market in SE Portland is particularly strong right now. Cool bungalows are being bought up by first time home buyers. Gardens are going in, bulbs are in bloom. Prices have corrected, and both buyers and sellers are negotiating seriously. Portland is a great place to live, and reflects the heart of a lemonade stand…entrepreneurship! Financing is available. The important thing is to work with professionals, both in the lending side and the Realtor side. Enjoy Spring!!

Sailing at Sunset on the Columbia River

I just returned from an all women’s Sailing Seminar in Seattle. Along with docking, anchoring and sail trim, we enjoyed a gorgeous day along Alkai Beach in West SEattle and some fresh fish from Pike Street Market.

Dew Drop Inn sail to weather on the Columbia

My EArth Day pledge is to stop using disposable plastic for water aboard the boats, clam shell packaging for propduce, and especially plastic produce or shopping bags. This web site is a terrific resource for all kinds of useful “green” storage and shopping bags. Let’s do this!www.reusablebags.com. Cover image courtesy of CariboZone.com.

Deck Gardens in Bloom

There is not a lot of storage on a floating home, and the lifestyle in floating homes is informal…..so you don’t need a huge house! Find one that you love, then make an offer to the owner. Once accepted, find out about the neighborhood….they are all different. Do they accept pets? Is there parking for guests? Is there a policy regarding parties and noise? Where can you park your boats? (people in floating homes usually have more than one boat so when one of them is not working, they can use the other one!) Have an interior home inspection and a marine float inspection (approximately $300 each), negotiate repairs that are required…..and voila! Get ready for your best summer ever! Cover image courtesy of HomeDSGN.com. 

Peaceful floating homes

REad about the Federal First Time Home Buyer tax credit that may qualify you or someone you know to receive this (basically) free money when you purchase a home before December 1 2009!http://www.federalhousingtaxcredit.com/2009/home2.html

The spring is here and summer is on its way! Time to talk to your credit union, or one of the small banks that make loans to purchase a floating home. Financing is available and the interest rates are pretty good! Cover image courtesy of Seattleafloat.com.