Here at Pacific Lifestyle Homes, we are have been seeing how much the market has been improving in this first quarter of 2012, well know we have the numbers to prove it. Comparing the first quarter of 2012 with the same period in 2011 closed sales increased 12.2%. There were more closed sales in the first three months of 2012 than in any first quarter since 2007. Pending sales were up by 18.2% in the quarterly comparison, with new listings decreasing by 12% and the total days homes are on the market decreased by 17.9%, from 165 in the first quarter last year to 135 in the first quarter of 2012. In March, inventory hit 5.0, the lowest point in several years!!

We at Pacific Style Homes are excited with the amount of homes being sold in the Portland area. A new MSN real estate article, list Portland among the 10 major housing markets with the shortest supply of homes. Check out the article here.

More good news for the housing market.  According to housingzone.com, the National Association of Home Builder and Wells Fargo have a positive April housing outlook especially out west.  Check out the full article here.

Home buying can be an overwhelming experience, but you do not need be a real estate agent to understand the key terms used in the process. We at Pacific Lifestyle Homes think its important for home buyers to understand the following the seven terms, not only will this impress your real estate agent but it will also allow you to focus on what’s important – choosing the right home for you.

1.      The first term is buyer cost sheet.  This is a property purchase agreement can range from a few pages to a dozen or more, depending on the location of your home and the complexity of the transaction. Buyers need to focus closely on the buyer cost sheet, sometimes called “cash to close.”

2.      Commission authorization is theagreed upon commissions for both the listing agent and your buyers agent; they are negotiable and generally paid from the proceeds of the sale by the seller.

3.      Contingency is a clause in a contract that sets the conditions under which the contract can be voided and the deposit returned to the buyer. Contingencies are negotiable, so if you believe you need more time for an inspection or to obtain financing, you can write contingencies into your offer.

4.      Disclosure or disclaimer are rules that vary from state to state about what homeowners need to disclose to potential buyers. Most states require sellers to complete a form that tells buyers what they know about their property.

5.      Earnest-money deposit is when buyers attach a check for their earnest-money deposit to their offer. The check is put into escrow once thecontract has been approved by all parties and is used as part of the down payment at settlement.

6.      Escrow is handled by a title company, an escrow company, an attorney or a real–estate broker and depends on local practices. An escrow account includes the buyer’s deposit and all the financial portions of the purchase transaction before, during and after the settlement.

7.      A good-faith estimate gives buyers a snapshot of their estimated costs for closing services, the down payment and prepaid items such as homeowners association dues, homeowners insurance and property taxes. Inaddition, buyers can use the estimate to hold their lenders to the amount promised in certain categories of costs.

Here at Pacific Lifestyle Homes, we are always here to help you with any questions you may come across. Knowledge of these terms helps take the fear of the unknown for first time buyers and for those looking for their second or third home, it’s a great refresher.