Most people believe that buying any piece of property is just like buying any other piece of property. This is actually not true, whether you're buying real estate in central Oregon or Boston, MA.

 

Already existing residential properties make up the majority of transactions in the marketplace. This is when a seller has lived in a house and decides to Sell it. The buyer knows they are purchasing a house that has been completed and occupied for some time. These properties usually serve as a primary residence.

 

It is a fallacy that once you’ve experienced this most common type of transaction that all transactions will be basically the same process. Here are some different types of properties that require a distinct expertise:

  • New Construction. There are additional factors to consider when purchasing new construction. These will depend on when in the construction process the transaction is conducted. If building is yet or about to start items such as upgrades and lot selection come in to play. If the property is near completion other factors that require attention are walk-throughs, punch lists, and possible state requirements on new construction (such as contractor guarantees).

Also, if buyers are interested in new construction, many Realtors work closely with local builders and will have knowledge of upcoming neighborhoods not yet listed online or in the multiple listing service available to Realtors. This can be beneficial as early buyers often have discounts available that go away as the neighborhood build out nears completion.

 

Unforeseen circumstances such as delays are an extra matter of which to take note. Having a well written sale agreement is essential in helping to ensure a smooth process. This takes professional expertise to execute well.

  • Farm/Ranch. These properties have details, such as irrigation rights, tax options like farm/forest deferral status, and special zoning that require special expertise. A Realtor specializing in this type of property will know what to look for in special inspections, where to find information specific to farms and ranches, and potential use issues. Their skill will be incredibly useful during an often multifaceted transaction.
  • Investment Properties. The rules are different for investment properties. Everything from tax implications to loan availability is affected. A popular vehicle utilized in investment property transactions is a 1031 Exchange. This allows a seller to move sale proceeds to a new purchase without requiring payment of capital gains. There are many rules and timelines that must be followed to correctly conduct a 1031 Exchange. While Realtors will not give you tax advice, they understand this complex process and can work with your accountant or tax attorney to facilitate a transaction that meets all the requirements.
  • Commercial Real Estate. This is a creature of its own. The language is different, the terms are different, and negotiations include many different things than residential real estate. The loan process is unique, as is the sale agreement. With the difference in considerations of commercial real estate, a Realtor specializing in commercial properties is indispensable.

When looking to Buy or Sell real estate in central Oregon and beyond, it is imperative that your interests are protected. Not all transactions are the same. You will want to make sure you have the best knowledge working for you. Make sure you have a Realtor with the appropriate expertise by your side. This will help these often complicated transactions progress efficiently and close on time.