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Oregon Home Buying FAQs
Frequently asked questions about buying a home in Oregon.
Buying a home brings up a lot of questions — especially if you haven’t purchased in several years or Oregon’s real estate process has changed since your last purchase. Here are answers to some of the questions I hear most often from buyers.
Do I need a real estate broker before I start looking at homes?
You don’t have to have every detail of your home search figured out before talking with a broker. However, Oregon requires a written Buyer Representation Agreement when a broker or principal broker represents a buyer in a covered residential real estate transaction. The agreement establishes the working relationship, including representation, whether it is exclusive or nonexclusive, compensation, timing and termination provisions. Before you sign a Buyer Representation Agreement with me, we’ll review it together so you understand how we’ll work together and have an opportunity to ask questions.
Do I need to be pre-approved before looking at homes?
A lender should determine your financing qualification and available loan options. Talking with a qualified lender early can help you understand your estimated purchasing power, down-payment options, estimated payment and documentation requirements. It also helps us build a home search around realistic financial parameters.
How much money do I need for a down payment?
There isn’t one down-payment requirement that applies to every buyer. Requirements vary based on the lender, loan program and your individual circumstances. Your lender should explain the programs available to you and how much you may need for the down payment, closing costs and any required reserves.
What is earnest money?
Earnest money is money a buyer may agree to deposit as part of the purchase transaction to demonstrate intent to complete the purchase according to the agreement. The amount, timing and terms are part of the offer and purchase agreement. We’ll discuss those terms before you submit an offer.
How do we decide what to offer?
We’ll look at relevant comparable market information, property characteristics, current competition and other available information. I can prepare a Comparative Market Analysis to help with offer strategy. A CMA is a real estate pricing analysis. It is not an appraisal. Price is only one part of an offer. Financing, contingencies, timing and other terms may also matter.
What happens if there are multiple offers?
There isn’t one strategy that is right for every buyer or every property. We’ll evaluate price, financing, contingencies, timing and other terms and discuss the potential tradeoffs of different strategies. My job is to give you information and real estate guidance. The final decisions remain yours.
Should I waive an inspection to make my offer stronger?
Inspection decisions can have significant consequences and depend on the property, competition, purchase agreement and your individual circumstances. I will explain the real estate considerations and potential tradeoffs, but I do not make that decision for you. Depending on the property, buyers may consider a general home inspection and additional evaluations involving sewer/septic, well/water, radon, pest activity, environmental conditions or specialty systems.
What’s the difference between an inspection and an appraisal?
An inspection evaluates aspects of the property’s condition. An appraisal is a valuation performed by an appropriately qualified appraiser, often in connection with financing. They serve different purposes.
What other costs should I expect besides the down payment?
Depending on the transaction, costs may include inspections, appraisal, title/escrow-related charges, insurance, HOA-related costs, moving expenses, property-specific expenses and lender-related closing costs. Your lender and escrow/title professionals can provide estimates applicable to your purchase.
When do I actually own the home?
Signing documents does not by itself necessarily mean the purchase is complete. Signing, lender funding when applicable, escrow requirements, recording and possession may occur at different times. Escrow and the professionals involved will confirm when the transaction has funded and recorded and when possession and keys are to be delivered under the purchase agreement.
Read the Oregon Home Buyer’s Guide
Related resourcesOregon Real Estate Ownership FAQs · Oregon Downsizing FAQs · All Guides
Have a question that isn’t answered here?
Every property and situation is different. If your question involves an Oregon real estate decision, I’m happy to talk with you about the real estate side and help identify when another qualified professional should be involved.
Or call or text me: 503-260-2164
This information is provided for general educational purposes and is not legal, tax, financial, lending or investment advice. Individual circumstances vary. Tanya Peterson is a licensed Oregon Principal Real Estate Broker and does not provide legal, tax or lending advice. Consult the appropriate qualified professionals regarding your individual circumstances.