1. Understand the Portland Housing Market

Portland's real estate market is competitive, with a blend of historic homes, modern townhouses, and eco-friendly developments. The market has seen fluctuating trends over the past few years, but prices remain relatively high due to the city’s desirability. Understanding the local market trends, typical pricing in different neighborhoods, and the average time homes spend on the market is essential for planning your budget and approach. Luckily, HomeBuy tracks it for you for free.

2. Determine Your Budget

Before beginning your home search, it's crucial to assess your financial situation. Consider not only the price of homes but also additional costs like closing fees, property taxes, insurance, and maintenance. It can be pretty tricky to estimate all the pieces involved, but use HomeBuy's budget planning calculator to help you reserve the right amount of funds for closing and your peace of mind after. Portland’s median home prices can vary significantly depending on the neighborhood, so you’ll want to explore different areas to match your budget. The most important step here is to obtain a pre-approval from a lender, which will clarify how much you can borrow and show financial strengths with your offers.

3. Explore Portland Neighborhoods

Portland is known for its unique, diverse neighborhoods, each with its own character. Here are some popular ones to consider:

Northeast Portland: Known for historic homes, parks, and a strong sense of community, neighborhoods like Alberta and Irvington are popular among families and professionals.
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Southeast Portland: Vibrant, artsy areas like Hawthorne and Sellwood offer a mix of vintage and modern homes, along with quirky shops and cafes.

Northwest Portland: A bit more upscale, Northwest Portland is perfect for the seeking a walkable, urban environment with easy access to dining, shopping, and green spaces. With a mix of historic charm and modern living, featuring elegant Victorian homes, updated Craftsman houses, and stylish lofts in the Pearl District, it's ideal for professionals, families, and nature lovers alike. It offers the perfect mix of city convenience and proximity to nature, including the beloved Forest Park trails.
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Southwest Portland: This area, including Multnomah Village and Hillsdale, offers quieter suburban vibes with proximity to downtown.

North Portland: Neighborhoods like St. Johns and Kenton are more affordable options with a close-knit community feel and great views of the Columbia River.
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Exploring each neighborhood will help you find the area that suits your lifestyle. Make sure to take a walk through each one in person, ideally at least once at night and once during the day!

4. Decide Whether to Use a Realtor

In Portland, managing the home buying process without a real estate agent can empower you to take control, work on your own schedule, and potentially save on commission fees. While agents offer valuable expertise, going solo is now very possible with the growing availability of home buying software that guides you step-by-step through each stage. These tools provide access to essential resources, from understanding market trends to crafting competitive offers and working through your paperwork independently. HomeBuy, in particular, also has agents on-hand in case you just want some quick, human advice.

5. Start Your Home Search

Once you have a clear idea of your budget and preferred neighborhood, you can begin your home search. Use Zillow to browse available homes, or something like HomeBuy can suggest some according to what your goals are. You can also attend open houses or set up private viewings, which HomeBuy can handle for you. It’s important to move quickly when you find a home you like, as Portland homes can sell fast in a competitive market.

6. Make an Offer

When you find home that's perfect for you, it's time to make an offer. In Portland, it's common for homes to receive multiple offers, so you'll need to craft a competitive offer. HomeBuy will automatically make your offer more competitive using Portland-specific strategies and pulling the right levers, only if they align with your personal home-buying goals.

7. Home Inspection and Negotiations

Once your offer is accepted, you’ll need to conduct a home inspection to identify any issues with the property. In Portland, home inspections are crucial due to the city’s rainy climate, which can lead to moisture-related problems. If the inspection reveals significant issues, you may need to negotiate with the seller for repairs or adjust your offer accordingly. If you use a software like HomeBuy, it can let you know which parts of your report should actually be deal-breakers, and it can help you negotiate using the issues that do not present as red flags.

8. Finalize Financing

The process is pretty easy from here on out. After the inspection, you’ll work with your lender to finalize your mortgage. Make sure to compare mortgage rates from different banks and lenders to ensure you’re getting the best deal. All you do is request a loan estimate from each one, communicate the lowest rate you received to the vendor of your choice, and ask if they can match it. Your lender will order an appraisal to confirm the home’s value matches the purchase price, which is a key step in securing your loan.

9. Close the Deal

Closing is an in-person meet up. At closing, you’ll sign the final paperwork, pay the closing costs, and officially take ownership of your new home. Be prepared for a lot of documents!

10. Celebrate!

Whether you've just purchased your dream home or found an investment you're excited about, you definitely need to pat yourself on the back and plan a celebration for yourself. The home buying journey is no joke, and you've come out the other side with an amazing outcome!