Great career opportunities, appreciating home values, and a cosmopolitan environment make Portland a great choice for homebuyers. With 23.8% of listings seeing price drops and 4.3% more homes for sale in Portland, it’s the best time to buy a house.
With Houzeo, Portland’s best home buying website, managing your home search is simple. You can look through the latest listings, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your Portland home search.
At a Glance:
- Get a mortgage pre-approval and set your budget to make competitive offers in Portland’s hot housing market.
- Assess long-term livability, schools, and amenities based on past market trends to pick the right neighborhood for you.
- Consider seasonal risks like floods, wildfires, landslides, and earthquakes.
- Conduct a home inspection to look for termite damage, pest infestation, storm-related issues, and other possible defects.
- Account for additional expenses like HOA dues, flood insurance, property taxes in Portland, and closing costs in Portland.
7 Steps for Buying a Home in Portland 🌲
Buying a home in Portland doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in the Pearl District or any other neighborhood in Portland, these 7 simple steps will help you move forward with confidence:
Step 1: Decide Your Homebuying Purpose
Whether you’re looking for a getaway or seeking an investment, knowing why you’re buying real estate in Portland is essential. It sets your expectations and helps you make smarter choices. Here’s what you should keep in mind:
- Primary Residence vs. Investment: If you’re buying a home, choose places that fit your lifestyle, whether it’s an upscale neighborhood or a suburb. For investment, consider Lents, where home values are expected to appreciate.
- Short-Term or Long-Term: If you plan to live in the house for only a few years, focus on neighborhoods with strong resale value and upward market trends. You can check out homes for sale in Hillsdale or Forest Park, where the housing market continues to grow.
- Space Requirements: If you’re looking for larger lots or big backyards, consider suburbs like Eastmoreland and West Hills. But if you prefer something easier to manage, condos in Downtown Portland can be a smart option.
Calculate the cost of living in Portland to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
Step 2: Explore Financing Options
Before making a purchase, it’s important to understand the financing options available to you to make an informed decision. Here’s what you need to do:
1. Prepare Financially
- Check Your Credit Score: Lenders will check your credit score to determine if you’re eligible for a loan. Aim for a score of at least 500 for an FHA loan and 620 for a conventional loan.
- Calculate Your Debt-to-Income (DTI) Ratio: Lenders often use your DTI ratio to assess how much home you can afford. Keep your DTI below 36%, particularly if you’re buying in pricier areas such as Arlington Heights and West Linn.
Set Your Budget: Ensure your budget includes property taxes, homeowners’ insurance, and potential flood or earthquake insurance. This is important, especially in high-risk areas such as West Hills.
👉 Use an Oregon mortgage calculator to estimate how much property you can afford in Portland.
2. Explore Loans and Assistance Programs
Down payments in Portland usually range between 10% and 20%, but often vary based on the financing option you choose. You can also look for suitable Down Payment Assistance Programs (DPAs) to help you cover part or all of your down payment.
| Program | Description |
| FHA Loans | Require just 3.5% down and are ideal if you’re a first time home buyer in Portland. |
| VA & USDA Loans | Offer 0% down with lower interest rates. Perfect for veterans or those purchasing homes in rural areas. |
| Portland Down Payment Assistance Loan (DPAL) | The Program offers up to $80K–$100K in 0% interest for first-time homebuyers. Eligible buyers must earn up to 100% AMI, work with a community partner, complete HUD-approved education, and contribute at least $500. |
| OHCS Oregon Bond Residential Loan Program | The program offers loans to first-time home buyers at a competitive interest rate of 5.75%, plus cash benefits up to 3% of their loan amount in closing cost assistance. To qualify, buyers must meet income and price limits requirements. |
| First Time Home Buyer Savings Account | The program lets buyers save for a single-family home with state tax deductions on deposits and earnings. Funds must be used within 10 years for qualifying costs like down payment, inspections, and realtor commissions. |
Step 3: Get Pre-Approved for a Mortgage
The Portland housing market is competitive, so get a mortgage pre-approval to show sellers you’re a serious buyer. In fact, 86% of sellers prefer buyers who are pre-approved. It also helps you negotiate better and reduces delays in the transaction.
Shop around to find the best Portland mortgage lenders—compare their programs, rates, and terms. Once you’ve narrowed down your options, get pre-approved by submitting documents like proof of income, credit history, bank statements, and your ID.
Step 4: Dive Into the Portland Market
Whether you’re looking at houses for sale in Laurelhurst or anywhere else in Portland, here’s how to buy smart:
- Online Listings: If you’re wondering how to buy a house, starting with online listings is a good first step. Use platforms like Houzeo to search homes for sale by price, zip code, and more. You can also filter for must-haves like a backyard, waterfront view, etc.
- FSBO (For Sale By Owner) Homes: Explore FSBO listings, as they often offer more flexibility in price negotiations. This is because sellers aren’t paying 5% to 6% in agent fees.
Kerns is the nicest and cheapest place to buy a house in Portland. The number of homes for sale in Kerns is on the rise, thanks to its safe environment and job opportunities.
Step 5: Make a Competitive Offer
In Portland’s competitive housing market, homes tend to sell fast. Make sure you focus on real estate comps for a more accurate picture. Here’s a checklist to help you craft a strong offer:
- Seller’s Name and Address: Don’t forget the basics—include the seller’s legal name and property address.
- Price and Terms: Offer a price based on Fair Market Value (FMV) and comparable sales. In high-demand areas like Nob Hill and Alberta Arts District, you might need to offer above the asking price to stand out.
- Down Payment: In Portland, down payments usually range from 3% to 20%. In competitive markets like Laurelhurst and Eastmoreland, a larger down payment can strengthen your offer.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like Sellwood and St. Johns, where homes can go fast.
- Contingencies: Include protections like home inspection, financing, and earthquake and flood safety. These can safeguard you from damage caused by extreme weather events or structural problems common in homes.
- Concessions: Request the seller to cover some closing costs. In Portland, it’s common to negotiate repairs after the inspection, such as roof issues, HVAC problems, or plumbing leaks.
- Deadline for Seller’s Response: Set a 24- to 72-hour response deadline to encourage a prompt reply. This helps prevent delays and keeps you on track for Portland’s average 44-day closing timeline.
- Closing Costs: Expect closing costs around 2% to 5% of the home’s price. This includes title insurance, property taxes, and lender fees.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in Oregon should cover:
- Exterior: Examine doors, trim, windows, and siding for any damage or wear. Additionally, check the drainage systems, such as gutters, and proper grading to ensure everything works smoothly.
- Plumbing: Check for leaks, corrosion, and water pressure issues, especially in Portland homes built before the 1980s. These houses may have outdated pipes that are prone to damage from freezing temperatures during the winter season.
- HVAC System: Make sure the heating and cooling systems are properly checked and can handle Portland’s cold winters and warm and dry summers. It is essential for year-round comfort.
- Electrical System: Verify everything is up to code and can withstand earthquake and flood-related power surges, especially during snowstorms, blizzards, and floods, which are common in this area.
- Roof and Attic Condition: Carefully assess for damage or age-related wear. It’s crucial in this heavy snow-prone area. Check if the attic has adequate insulation, proper ventilation, and if there are any signs of water damage or leaks.
- Termite or Pest Infestation: Termites, bed bugs, rodents, wasps, yellow jackets, and spiders are common here. So it’s important to inspect for them early and address any major pest control needs during final negotiations with the seller.
- Hidden Problems: Careful inspection of mold growth, faulty electrical wiring, and foundation issues is crucial before buying a house. Although walls and floors hide potential damage, an inspector can identify signs of prior issues, such as foundation movement.
- Foundation and Structure: Look for cracks, moisture, or settlement issues, particularly in flood-prone or sandy-soil areas.
Additionally, due to a high risk of thunder and winter storms, a wind mitigation inspection is necessary before buying a house in Portland. Additionally, for condos over 30 years old and taller than two stories, consider a Milestone Inspection for structural safety.
Once the inspection is complete, your lender will order a home appraisal to confirm the property’s market value. This step ensures the loan amount aligns with what the home is actually worth. It can impact final loan approval, especially if the appraisal comes in low.
Step 7: Close on Your Portland Home
You’re almost there! Closing typically takes 30–45 days, from signing the contract to getting the keys in your hand. Here’s what you can expect:
- Final Walkthrough: Make sure all repairs have been completed, and the home is in the agreed-upon condition.
- Buyer Closing Costs: Expect to pay 2%–5% of the home price. This includes title fees and lender charges, plus prepaid taxes or insurance.
Once you sign on the dotted line and transfer funds to the escrow account, congratulations, you’re officially a homeowner. Grab those keys and cue your happy dance! 🎉
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Tax Exemption: If it’s your primary residence, apply for Portland’s Homebuyer Opportunity Limited property tax exemption. You can get up to a 10-year property tax exemption on structural improvements.
- Set Up Utilities: Arrange water, electricity, internet, and trash services through the Oregon Public Utility Commission (PUC). Also, don’t forget pest control, due to its natural landscape, rodents, bed bugs, and termites are a persistent issue here.
- Get Insurance: Homeowners insurance is required if you’re financing. Flood and earthquake insurance may also be needed in FEMA-designated high-risk zones. The insurance rates are higher in the high-risk areas, such as Downtown Portland.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae buildup. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a House in Portland Without a Realtor?
Start by researching neighborhoods and browsing listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Should You Buy a House in Portland?
Absolutely! Portland offers incredible opportunities for homeowners, whether you’re buying for investment, residence, or vacation. Moreover, with more homes being sold below the list price, now’s the best time to buy a house in Oregon.
Whether you’re drawn to Hillsboro’s growing job market or Forest Park’s natural landscape, Portland has it all. There’s a spot to match every lifestyle and budget. So if you’re on the hunt, check out our list of the best places to live in Oregon!
