Red Flags, Green Flags: What to Look for When House Hunting in Portland

Portland has plenty of homes that will stop you in your tracks — sometimes for better… sometimes for worse.  

I’ve been doing this long enough to know which details make me feel good about falling in love with a home. But I’m just as aware of when to turn and run the other way. 

Let’s get into a few of the red flags and green flags that will point to a home worth pursuing.

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Green flags to look for when house hunting in Portland

There is a lot to love about the homes Portland has to offer, so let’s start with the good:

🟢 Room for growth

Look out for opportunities where you can add value. Unfinished basements, large, underutilized yards, and outdated kitchens or bathrooms that have a good footprint are key signals. 

Adding a bathroom, finishing a basement, or updating older features increases livability and boosts resale value. Plus, these types of properties allow you to grow into the space and customize it to your needs and personality over time.

🟢 An exterior door to the basement 

A basement with exterior entry offers so many possibilities. You can convert it into a separate rentable unit, create a home office, or even add a private guest suite. This is particularly valuable in Portland, where housing demand is high, and a ton of people are looking to rent.

🟢 Healthy crawl space

You can learn a lot about a house by the state of its crawl space. In fact, it’s one of the places I check out when a client is considering submitting an offer on a home. A healthy home begins in the crawlspace.

I’m looking for a vapor barrier, funky smells, signs of standing water, pest infestations, and more fun stuff. Details like this indicate to me that the foundational elements of the home are sound and that there aren’t any hidden surprises.

🟢 Proper drainage

It rains a decent amount in Portland if you haven’t noticed. Houses need to be built to withstand the elements.

Do the gutters channel water away from the foundation? Is the yard free from pooling? Are there areas of significant settling in the home? These are the main things I’m looking for to determine whether the home has sufficient drainage.

🟢 Solid foundation

A sturdy, well-maintained foundation is critical for the long-term health of the home. Portland’s homes are old, which means we see a variety of foundation types, from brick to concrete. The ideal foundation is a concrete perimeter, but even concrete can fail. I’m looking for significant cracks, water intrusion, efflorescence, and crumbling concrete.

🟢 Clean work history

Viewing past permits gives you peace of mind that any renovations and improvements on the home were done to code. Portland Maps is a good place to start if you want to make sure the house has a clean history. 

🟢 Energy efficiency

Sustainability is a big deal in Portland. Homes with these features (or adding these features) cut costs and improve the resale value of your home. 

Here are a few things to look for: 

• ENERGY STAR-rated HVAC units

• Tankless water heater

• Double-pane or triple-pane windows

• Solar panels

• Sealed ductwork

🟢 Dual-income properties

Properties like duplexes or those with accessory dwelling units (ADUs) are always smart investments. Renting out the extra space can help offset mortgage payments and make owning your first (or second, or third…) home more affordable. You can also claim that expected rental income as qualifying income during the pre-approval process to increase your pre-approval amount.

See also: 16 Tips for First-Time Homebuyers in Portland

Red flags to look for when house hunting in Portland

There are plenty of not-so-desirable qualities to look out for, as well. Let’s get into some of the red flags you might encounter during the house-hunting process.

🔴 Busy roads

Proximity to highways or roads with heavy traffic impacts the property’s resale value. Noise and pollution levels make it less desirable for most buyers. This is especially worth considering if you’re planning to sell the home in the future.

The silver lining? Busy streets could mean easy access to main roads. Not bad if your job requires a daily commute!

🔴 Underpriced homes

There are a couple of main reasons why this is a red flag. 

1. The unusually low price could signal hidden problems that require costly repairs. Always investigate why the price is so low and do a thorough inspection. 

2. A low price can incite bidding wars, which could drive the underpriced home far beyond its actual value. 

Is the house a steal? Or is there a catch? Work with your real estate agent to come up with the true cost of the home. And remember, if it seems too good to be true… it probably is.

🔴 Frankenstein houses

Watch out for homes with inconsistent renovations or poorly executed upgrades. This often means that someone took a shortcut somewhere along the line. Mismatched designs or odd layouts can point to a lack of professional planning and potentially more underlying structural or code issues.

🔴 Flipped homes with minimal work

“Flipping” houses isn’t a red flag in and of itself, but it should raise an eyebrow. That’s because homes that were purchased and resold quickly might have been flipped with cosmetic fixes rather than substantial repairs. 

Superficial improvements can mask deeper problems like outdated wiring, plumbing, mold, or electrical defects. Do your due diligence so you don’t get catfished by a home that looks great from afar but is full of internal problems. 

🔴 Uninsulated or leaky basements

Basements with signs of water intrusion are always a red flag. Mold, mildew, and flooding issues affecting the basement can spread to the rest of the home, leading to health risks and expensive waterproofing. That said, it rains a lot in Portland, and a basement is bound to leak at one point or another. It’s best to identify it before you buy and understand the cost to cure the potential issues. You’re much better off taking preventative measures than dealing with them after they’ve already manifested. 

🔴 Compromised foundations

Small cracks in the foundation are normal and often just a sign of settling, especially in older homes commonly found in Portland. However, large cracks wider than a quarter inch, or those that run diagonally or horizontally, can indicate major structural problems. 

Uneven floors — where you notice sloping or sagging — may signal the foundation isn’t properly supporting the home. 

Similarly, doors and windows that don’t close or latch properly can mean the house has shifted, which can also be caused by foundational movement. 

These issues may lead to constant (expensive) repairs and affect the long-term value of the home. If you notice any of these signs, it’s crucial to have a professional inspection to assess the severity of the issue, whether it’s an active problem and potential costs. 

🔴 No parking

The last thing you want to do when you come home from a long day is to drive around looking for parking at your own home. A lack of parking, particularly in urban areas or neighborhoods, can be a persistent inconvenience for residents and a turn-off for future buyers. If you’re looking to buy in a hotspot location where street parking is limited, a driveway is essential. 

🔴 Suspicious listings

Watch out for sneaky language on listings. Vague or overly optimistic phrasing like “opportunity abounds” or “investor special” can be euphemisms for properties that need a ton of work.

Maybe you have the time and resources for a “fixer-upper with unlimited potential,” but for many folks — especially first-time homebuyers — this type of language usually means it’s best to stay away.

See also: A Seasonal Guide to the Portland Housing Market

Key takeaway: Spot the signs (both good and bad) before falling in love with a house.

Finding the right home is all about recognizing the signs — both good and bad. Green flags can indicate a home with strong value and fewer future headaches. Red flags, on the other hand, might signal costly repairs and repeated frustrations. 

By understanding what to look out for, you can avoid buyer’s remorse and feel confident choosing the perfect home for your budget and lifestyle.