Buying Advice Archives - Page 36 of 36

June 5, 2008

Lake Oswego Flood Zone Changes

Lakefront property owners in Lake Oswego are pretty comfortable overall with the knowledge that the lake is managed and dammed, and so concerns regarding rising water during heavy rains etc are not prevalent. The lake is owned and managed by the Lake Oswego Corporation (LOC), a local entity to which lakefront residents establish membership and pay dues. Every few years the lake is drained for a few months to allow residents to clean and repair boat docks along the lake and canals, and generally speaking, it is understood that the lake is a controlled body of water. Even so, in the flood of 1996, water did spill over in some areas because it was not able to be released quickly enough at the dam to compensate for the heavy inflow.

FEMA recently completed a study of the Lake Oswego area and has determined that it will change the flood zone designation for properties on the lake, as well as properties surrounding the canals, Tualatin River, and Spring Creek. The maps for the 100-year flood zone have been altered, and are available for viewing at www.ci.oswego.or.us/plan. The city’s website states: “Text amendments are intended to comply with FEMA’s regulations so that the City can retain eligibility for participation in the National Flood Insurance Program.”

Lake Oswego must be compliant with FEMA’s requirements in order for Lake Oswego residents to be able to take advantage of their flood insurance policies in the event of a natural disaster. Lake Oswego property owners, especially those near the lake, would be well advised to double-check their property’s location on these new maps and its relation to the new flood zones, as they may be required to carry flood insurance now, even though that was not the case when the property was purchased.

According to Kelley Woodwick at Chicago Title, there is good news for sellers, in that flood insurance contracts may be transferred to new buyers at grandfathered rates and zones. Again, check the city’s new maps before June 18th to acquire information on the grandfathered areas… after the 18th, I am told that the information will most likely be removed from the website.

There are also new regulations resulting, including elevation requirements for remodeling and new construction. Significant remodeling jobs now require that the structure be at 104.5 ft elevation as compared to the old standard of 103.5 ft. New construction after June 18, 2008 will also be required to meet a 104.5 ft elevation requirement.

Checking with the City of Lake Oswego is always a good idea, and much information can be found at their website (above). Stay informed, stay protected, and stay dry!

May 14, 2008

In-Ground Oil Tanks

Oil Tank Decommissioning For most of the 20th century, oil heat was the primary method of heating homes. If you own or are considering purchasing a home that was built before 1965, chances are pretty good that the house had oil heat. And chances are also pretty good that the oil tank was buried in the ground.

Should you be afraid to buy a home with an in-ground tank? No.

Should you be afraid of selling your home if it has an in-ground tank? No.

In both instances the necessary steps that you should take are clearly outlined by the Department of Environmental Quality. As a seller, you want to minimize your liability and be certain that once the house is sold, you will never have the old oil tank come back to haunt you. To do this, you must obtain soil samples to prove that the tank has not contaminated the surrounding soil. If the tank is still in use, the soil samples will prove that the tank had not contaminated the surrounding soil at the time that the house was sold. If tank is no longer in use, you are encouraged to have the tank decommissioned.

Decommissioning the tank involves emptying it of oil, cleaning it out, and filling it with concrete slurry that will harden into a big cement rock in the ground. While decommissioning the tank is voluntary, many lenders and most buyers will make this a condition of the sale. If you do not take the necessary steps to prove that the soil was clean at the time the house was sold, and soil samples taken later show that a contamination has occurred, you can be liable for the cost to clean up the soil even after the house has transferred to a new owner. So, take the proper steps now to assure that you will not have a problem in the future.

Whenever work is done on an in-ground tank, it should be performed by a licensed and bonded contractor who is certified with the DEQ. After the work is completed, a certificated of compliance will be issued. This is paperwork that needs to be saved and transfered with the property to every subsequent owner. Cost to do soil testing will run about $200-$400. Cost of decommissioning will run about $800 to $1,200. Can it cost more, yes, but that is a minority of the cases.

If you are wanting to buy a house with an in-ground oil tank, should you be afraid to purchase? No. Simply make the soil testing and the decommissioning of the tank a condition of the purchase. You are strongly advised to get this taken care of before you buy the house. If you buy the house with an in-ground tank, and you discover later that the tank has leaked, you have now taken ownership of the problem.

How bad can it get? There certainly are horror stories of soil clean up costs running into the thousands and thousands of dollars. In my 20 years of selling real estate, the most costly clean-up I have encountered involved bringing in a backhoe to remove a tank and dig a hole about 15 feet in diameter. It cost the seller $8,000.

Information on oil tanks are surprisingly undocumented. There are not good resources for looking up records about in-ground tanks. The DEQ does not regulate in-ground tanks beyond requiring that they be reported if they have leaked. Then, the DEQ does open a file on them and there is a process to clean up the contamination and get the file closed. However, if no leak has been reported to the DEQ, they will not have a record of the tank. And do not rely on city records or fire department knowledge of in-ground tanks. This means that even if a seller has no knowledge of an in-ground tank, you may want to consider having the yard of an older home scanned with a metal detector to confirm that no tank exists in the yard.

In all cases, it is best to take every precaution to be in compliance with soil testing and tank decommissioning when you buy or sell a home. Taking the proper steps now will save both buyers and sellers heartache later.

Links: Oregon DEQ Tank Decommissioning FAQ

April 23, 2008May 2, 2008

Searching… Searching…

On a recent Broker’s Tour in Lake Oswego, my cohorts and I were discussing how important it is to include accurate information in listings, and we noted how easy it is to inadvertently choose the wrong “field” when entering data etc. I thought it might help the prospective home seller or buyer to know a little about how agents search for houses, specifically in using the basic search fields provided to them on the MLS.

Agents are able to search on the MLS for properties on behalf of a client using several methods, including:

Address Searches – Agents can search a specific area defined by their clients using street addresses and number ranges on specified streets, or a particular house using a specific address.
Area Searches – The MLS now allows agents to search a geographic area by providing a map on which an agent can “draw” boundaries of a search range defined by a client.
MLS# Searches- Agents can search MLS #’s provided by a client, and generate addresses for either drive-by viewing (prior to a client deciding to take a look inside), or for agent pre-viewing on behalf of a client.
Advanced Searches – This is where I want to focus today, as this is the most common search method utilized in order to find properties that most specifically meet a client’s stated preferences. There are a large number of available search criteria that can be utilized by a listing agent when inputting data in order to present a home in the best light possible, which is of course a good thing… as long as it is accurate information.

When using an Advanced Search, available options include, of course, bedrooms, and the # of baths, but also whether a property has a fireplace (gas or wood?), what the map grid location is, total square footage of the home, approximate square footage of the lot, neighborhood, zip code, year built, style of home, levels, where master bedroom is located (on which level), and many, many more categories including garage description (attached? 2-car?), square footage of bedrooms, accessibility, exterior features, elementary school, etc. The more defined and narrow the search parameters, the fewer homes will appear as options… so, many times only the most important specifics to the client are used in order to provide a variety of choices.

“Property Type” is one important category- options are: Attached (meaning a townhome), Condo, Detached (meaning a separate residence/house), Houseboat, In-Park (meaning a manufactured home in a park), Part-owned, and Residence/Manufactured. A few months back these options were changed and made more detailed so that, for instance, a manufactured home would not appear in a search wherein the client had specified a separate residence/house was what they wanted.

A common example of a simple error is the mistake of referring to a home in the “Style” field as a “Tri-Level” as opposed to the actual appropriate category of “Split-Level”. A tri-level actually has three levels to the home… a split has an entry area, one level down, and one level up.

Bottom line, if you are the Seller, your agent is describing your home in the listing in ways that accentuate its great points while reflecting it accurately. If you are the Buyer, your agent is doing their best to provide you with choices that match your needs, and using the information provided by the listing agents in good faith.

So, if you show up at a property and it was described in the listing in a fashion that makes you feel as if you’ve just wasted your time… you may want to ask your agent to speak to the listing agent about any mistaken data about the home. They will most likely be grateful, and of course, other agents and buyers will benefit from any needed correction.

If you are the Seller, encourage your listing agent to be as creative as possible in selling your home (this is, of course, their job!), but do check for accuracy when reviewing the data to be provided to prospective buyers in your listing.

Happy buying and selling!

April 17, 2008May 2, 2008

Why those little lots?

If you prefer a newer home, but also want a big back yard, then you will find yourself in a quandary. There are new houses, and there are large lots, but they just don’t seem to be found together. What’s up with that?

Those little lots are a direct result of Oregon’s land use laws. In the 1970’s a statewide commission was formed, the Land Conservation and Development Commission, also known as LCDC. The purpose of this commission was to develop a plan to conserve farm and forest land and keep Oregon from experiencing urban sprawl. Oregon’s greatest fear, at that time, was becoming California. And California was full of urban sprawl. There was talk that some day Portland would stretch south to Salem and there’d be no open fields: just miles and miles of strip malls and suburbs. The LCDC developed the statewide Urban Growth Boundary. This boundary is basically a line that is drawn around all urban areas. Inside the line the urban community is allowed to develop with residential housing and all of its supporting infrastructure. Outside of the boundary is mandated to be preserved for farm and forest use. This forces the infill of the property inside of the urban growth boundary. Every single city and town in the State of Oregon has an urban growth boundary. Compounding the issue is the 2040 Plan. This is a plan, developed in 1992, that projects the population growth of the state to the year 2040 and requires municipal planning departments to control new construction to accommodate those projected population needs.

So the State of Oregon has limited the supply of residential land and at the same time required planning to allow for future growth. Thus, the requirement that new homes be placed onto smaller lots. Even if a builder wants to build houses on larger lots, the planning process will likely force him to build on small lots, or his plans will not be approved.

There has been some back lash to the strict land use laws in the form of two recent ballot measures. Both ballot measures were designed to benefit people who had owned property since before the land use laws went into effect in the 1970’s. Ballot Measure 37 was passed in 2004. It allowed people who have owned property since the 1970’s to either develop the land as they saw fit or be reimbursed by the government for the loss of value that they had experienced from the land use laws. Ballot Measure 49 was passed in 2007. It modified measure 37 to allow for development of up to 4 home sites easily and more than 4 home sites to be a much harder process.

Oregon is the champion state for land use planning. It’s a highly charged subject that can stimulate rather heated conversation. But this is Oregon and that’s just how it’s done here. And those big new houses on smaller lots are what we often find as a result.

On a side note, there just isn’t much land left in Lake Oswego for the building of new homes. This has got the builders buying up old homes and tearing them down to build new houses on the old lots. In this case, the lots are very often not only large but in beautiful, established neighborhoods. And, yes, you do see quite a bit of this in Lake Oswego.

April 3, 2008

Only million dollar mansions, right?

Lake Oswego is known to be a community with very expensive homes. Lake front, river front, city views, mountain views, you can find some pretty special amenities here that do drive up the value of a home. So, yes, there are million dollar mansions in Lake Oswego. But does that mean that there are not any less expensive homes? No. In fact, I am of the opinion that the community is often over-looked by buyers because they make the assumption that there is nothing for sale in Lake Oswego that they can afford. So here is a quick moment of enlightenment to be shared: Lake Oswego has affordable houses.

As of March 28, 2008, there were 20 houses for sale in Lake Oswego that were priced at $350,000 or less. The least expensive home was priced at $199,000. It was built in 1947 and has 2 bedrooms and 1 bath in 1188 square feet. This compares to Sellwood, a neighborhood in Southeast Portland, where as of the same date there were 18 houses for sale at $350,000 or less. You actually had a larger selection of homes under $350,000 in Lake Oswego than you did in Sellwood! Yet, a buyer in that price range is very likely to over-look Lake Oswego as an option for them. Amazing!

And, yes, for the record, the most expensive home in Lake Oswego at that same time was a mansion on the shore of Oswego Lake for $7,500,000. Those mansions are part of the neighborhood, but they are not the neighborhood in its entirety.

March 25, 2008

The Peril of Orangeburg – Yes, Cardboard Crumbles

Neighbors in Lake Oswego have been educating each other about something called Orangeburg pipe, so I thought it might be something you’d like to know about. Orangeburg is a kind of sewer piping that was manufactured and used throughout the country between 1940 and approximately 1972, until ABS plastic piping was introduced and replaced its use.

The Fibre Conduit Company of Orangeburg, N.Y. was a major manufacturer of this kind of pipe, and with its widespread use, changed its name to the Orangeburg Pipe Co. — thus the common name of the product. If your home was built during this period, there is a good chance that you have this kind of sewer pipe lurking underground, so it is good to know what this could mean to you as either a homeowner, or someone contemplating a purchase.

Orangeburg pipe is actually “bituminized” fiber drain and sewer pipe 2” – 18” in diameter. Basically it was made of cellulose fibers impregnated with hot coal pitch and treated under pressure with a water-resistant adhesive. The joints of this pipe are gasket-less, and the pipe often softens and deforms with age which allows for root intrusion and general breakdown with time. Its lifespan is approximately 50 – 60 years, and so it is, generally speaking, at the end of its life cycle — which is why you should know about it.

On my block, it became an issue and a hot topic of conversation a few years back. Since then, when I bring it up, I often find it is a subject with which people are unfamiliar unless their lives have been directly affected. One set of neighbors had their sewage back up into their basement… not a pretty picture, and had to replace their sewer line in a hurry and under duress. Other neighbors have investigated their pipes and ordered their preemptive replacement in order to avoid the unpleasant fate of the aforementioned neighbors. One had sewer pipes replaced as a part of closing a real estate sale, and another decided on a preemptive replacement only to discover that their sewer pipe was NOT Orangeburg after opening up a big hole in their front yard.

So, if you decide you’d like to have a definitive answer to the Orangeburg question, you may wish to call a company that works with sewer lines to come perform a “sewer scope” at a cost to you of approximately $100. – $150. They will insert a camera down into the line, and be able to tell the condition of the pipes, whether there is root intrusion, and yes, whether you have Orangeburg pipes getting ready to collapse. AND, to top it off, they’ll leave you with a DVD which you may view from time to time for your entertainment… or not.

If you are a prospective home buyer, you will want to assess whether the home you are purchasing is a candidate for possible Orangeburg sewer pipes, and make the sewer scope a part of your home inspection process.

Photo courtesy of Mike Butkus.

March 18, 2008March 20, 2008

Radon, should I be concerned?

view of 1st Street Yes, you should be concerned. Radon is real and it does exist in Lake Oswego.

Radon is a naturally occurring gas that is radioactive and can seep into our homes from the ground. While Lake Oswego is shown on radon maps as being an area of low to moderate risk, that does not mean that it does not occur in homes in Lake Oswego. Nationally, radon exposure is the leading cause of lung cancer in non-smokers claiming 20,000 lives annually.

How do you know if a home has radon? You get it tested. Testing can be done personally or professionally. Radon test kits are commonly sold in hardware and home improvement stores. The kits include a cannister that is placed in a house for several days and then mailed in a postage paid envelope to a laboratory. Test results come back within days. As a buyer of a home, you should consider including radon testing as part of your home inspection process and make the purchase of your new home contingent on satisfactory radon test results. Be sure to allow about 2 weeks for the test results to be completed.

What if the house comes back having too much radon? What do you do then? If you are living in a home with elevated levels of radon, or if you want to buy a home with elevated levels of radon, don’t panic. Radon can be remedied. Because it seeps into homes from the ground, simply filling in gaps from crawlspaces and making the bottom level of a home less exposed to air from the ground may be sufficient. If greater measures are needed, it is usually in the form of ventilation. An automatic fan system can be put into a crawlspace to circulate air out of the crawlspace so that it does not enter the home. After taking measures to lower the radon levels, re-test the house regularly to make certain that the radon levels remain low.

In my professional experience, radon was more likely to be found in houses built onto hillsides that had very rocky soil. I have been involved in the sale of two homes in Lake Oswego that had elevated levels of radon, one was in First Addition and one was in Village on the Lake. Both homes were easily remedied by means that were affordable.

Don’t be afraid of radon, but do be smart about it. When buying your new home, get it tested. You will sleep better at night knowing that you and your family are safe and not being exposed to radon.

Information for this posting was from the Environmental Protection Agency and can be found at www.epa.gov