Real Estate's BlogFather

Tigard - Annual Tualatin River Discovery Day - June 18, 2011

2011-05-26T15:19:00.000-07:00

Annual Tualatin River Discovery Day - June 18, 2011 - Cook Park to Brown's Ferry Park

Family Friendly!
The Tualatin Riverkeepers have designed a trip that’s very special for families with children. It's a little shorter than their normal trips but they will have family nature activities at Brown's Ferry Park. For those who want to paddle more, there will be a side trip to the Lake Oswego Canal. Bring your own boat our rent one of ours for $30. Click here to reserve your space and/or rent a boat.
Be a Discovery Day Volunteer!
The Riverkeepers need help on various jobs:
· Registration/Greeters
· Traffic Control
· Boat Porters
· Dock Assistants
· Fleet Haulers
· Equipment Assistants
· Safety Boats and more!
Margot is the volunteer coordinator for Discovery Day. Email her at kiahnbinky@comcast.net to let her know you can help.

Mid-Summer Night's Paddle
July 23rd, Cook Park
3 launch times: 5 p.m., 5:30 and 6 p.m.
As the sun goes down, the wildlife on the Tualatin River gets active. Perhaps you'll see a beaver on this popular trip. Click to reserve a spot or rent a boat.http://mid--summer-night-paddle.ettend.com/

There are more trips scheduled for August and September. For more information and links go to the Tualatin Riverkeeper’s paddle trip webpage.

Boat Rentals at Cook Park
Soon, you will be able to rent a canoe or kayak from Tualatin Riverkeepers at the Cook Park boat launch in Tigard. The service will operate on Saturdays and Sundays through Labor Day.

Tualatin Riverkeepers Nature Day Camp
TRK has a summer full of day camp adventures planned with new activities and a new location, the Summer Creek Natural Area in Tigard. Two camp sessions still have room for your campers:
July 11-15 Adventure 3: Nature Art & Canoeing, Ages 7-10, Summer Creek Natural Area, Tigard
July 25-29 Adventure 4: Fishing & Kayaking, Ages 11-13, Summer Creek Natural Area, Tigard

Find the details and register online at tualatinriverkeepers.org/summercamp2011.html

Mortgage After a Short Sale?

2011-05-25T08:34:00.000-07:00

How to obtain a mortgage immediately after a Short Sale..read on…

By far the easiest mortgage to obtain is a FHA loan:

Purchase Another Home

1) 3.5 percent down payment, based on the purchase price of the home (e.g., $7,000 on a $200,000 home), or a gift of that same amount;

2) 3 percent to 6 percent of the purchase price, on top of the down payment, for closing costs, or a credit from the seller of the same amount; and

3) 640 FICO credit score — the middle score of those generated by the three credit bureaus (some banks will lend to borrowers with middle scores lower than 640, but will require more than the minimum down payment).
Lenders will want you to document income, asset and job history documentation, current paycheck stubs, two months’ bank statements and two years of W-2 forms or tax returns, and:

a minimum of two years have passed since the discharge of a bankruptcy;
a minimum of three years have passed since a foreclosure;
anywhere from zero to three years have passed since a short sale, depending on the circumstances surrounding the short sale.

from: Real Estate Insider News

Outdoor Appliance Guide: Gas Grills

2011-05-08T18:29:00.000-07:00

By: Douglas Trattner

With models priced from $29 to $5,000 and up, outdoor gas grills offer convenience and ease-of-use to fit any budget.

Cost range: $29-$5,000 and up
Likely additional costs: Assembly, natural gas hookup or propane tank, cover
Average life span: 2-16 years

Sub-$50 range

Grills in the sub-$50 range are often of the tabletop propane variety. These units are constructed of thin painted sheet metal and cheaply fabricated components, all but guaranteeing a short lifespan. Brief 90-day warranties don't offer much of a safety net.
When it comes to power, these grills are positively entry level, says Marguerite. The single, 12,000 BTU burner is satisfactory for grilling hamburgers and hot dogs but will be far less successful at charring a thick porterhouse. Still, when it comes to portability, these grills have no equal. If you are looking for a highly mobile tailgating grill, look to this sector of the market.

$50-$150 range

The biggest differences between a $50 gas grill and a $150 grill will be size and fuel source. Boasting cooking areas over twice that of their less expensive counterparts, these grills are the most economical options for families.

Models in this price range run on liquid propane stored in large refillable tanks (as opposed to the small disposable cylinders). Construction quality is moderate, featuring lightweight steel or aluminum bodies. However, the boost in price over the cheapest gas grill models yields an extra burner (albeit a low-powered one). Most are furnished with thin, steel-rod cooking grates that may warp from exposure to high temperatures, such as those from flare-ups.

$150-$350 range

Marguerite says buyers in this price range can expect to get "middle of the road" power, with burners putting out around 20,000 BTUs. Shoppers should expect a three- or four-burner grill, a roomy cooking surface, and perhaps even a storage cabinet and side burner—a separate burner used for boiling water or other independent cooking chores.

With widths of 20 to 24 inches and boasting around 400 square inches of grill surface, these units can simultaneously cook about two dozen burgers. Homeowners in cool climes who grill year round likely will lament the thin-body construction, says Marguerite. "These grills do a poor job of retaining heat in cold weather," he says. At this price range, expect less-expensive porcelain-coated steel cooking grates that tend to chip, rust and need replacing at a cost of $30 to $60.

$350-$600 range

Constructed of heavy cast-aluminum or thick-gauge steel, and utilizing high-quality stainless steel burners, these units are built to last. Parts that do fail will be covered by five- to 10-year warranties.

Averaging between 400 and 500 square inches of cook surface, these units are not substantially larger than those in the $150-$350 category. But they are constructed of heavy cast aluminum or thick-gauge steel and utilize multiple high-quality stainless steel burners. Heavy-duty castors and solid-built carts make it easy to move these grills from spot to spot.

Grills in this category can handle enough food for 15 to 18 people. Buyers are urged to select a burner configuration that appeals to them as some models arrange them front-to-back versus side-to-side, which can complicate indirect cooking.

$600-$1,500 range

Units starting around $600 feature burners that reach 40,000 BTUs, power that will make short work of even the largest barbecue payloads. Precision controls and even heat distribution give home cooks the ability to simultaneously sear, cook, and keep food warm. To step up to a 36-inch grill that approaches 900 square inches of cook space, a shopper should expect to spend at least $1,000.

Constructed of high-quality stainless steel throughout, these grills will weather years of use. These first-class rigs often include heavy cast-iron grates, side burners, under-grill storage, and even a rotisserie spit and motor. Buyers also get the peace of mind that comes with improved customer service and best-in-class warranties that range from 10 years on burners to 25 years on the body.

$1,500 to $5,000 range

When you spend upwards of $2,000 on a grill, you’ll get a host of features and quality construction. These appliances boast six or more top-of-the-line burners. Almost standard issue these days is an infrared sear burner that can reach temps topping 700 degrees.

Most include a rear-mounted rotisserie burner with motor, interior and exterior lighting, and even a spring-assisted lid for effortless opening. With the best grills also come the best warranties, typically covering most components for 10 to 25 years.

Propane vs. natural gas

Homeowners should decide before buying a grill whether they intend to fuel it with propane or natural gas, says Marguerite. While many grills can be converted for around $50, it is best to buy one factory engineered for one fuel type or the other.

Owners of built-in units typically choose natural gas as there are no tanks that need filling and the cost to operate is roughly half that of propane. According to the U.S. Department of Energy's most recent figures, propane costs $20.47 per million BTUs compared to natural gas's $12.18. Assuming a homeowner grilled once a week, he or she can expect to pay about $40 per year for propane and $24 for natural gas. Marguerite says that his company charges $150 plus $7 per foot to connect a grill to a natural gas line.

Suggested extras

A good-fitting cover will extend the life of any outdoor appliance. Expect to pay between $30 and $50. Owners of propane powered grills should consider purchasing a $20 back-up tank so that a fully charged spare is always on hand. A $20 gas gauge will take the guesswork out of estimating a tank's contents.

Douglas Trattner has covered household appliances and home improvement for HGTV.com, DIYNetworks, and the Cleveland Plain Dealer. As an avid home cook and pit master-in-training, he struggled over the age-old debate of gas versus charcoal grill--so he bought one of each.

Tigard area - 7 Smart Strategies for Kitchen Remodeling - over next 7 days

2011-04-09T19:41:00.000-07:00

By: John Riha
Kitchen remodeling can turn a ho-hum room into your home’s pride and joy. Here are strategies to help your project run smoothly.

Value Added High $28,300

Effort High 6-12 mos (including planning)

Investment High $40,000 (nat'l g)

#1 ....It's wise to spend about six months planning a kitchen remodel, so you know what your priorities are.
Home owners spend more money on kitchen remodeling than on any other home improvement project, according to the Home Improvement Research Institute. And with good reason. Kitchens are the hub of home life, and a source of pride.

A significant portion of kitchen remodeling costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 to $60,000 range recoup about 69% of the initial project cost at the home’s resale, according to recent data from Remodeling Magazine’s Cost vs. Value Report.

To make sure you maximize your return, follow these seven smart kitchen remodeling strategies.

1. Establish priorities

The National Kitchen and Bath Association (NKBA) recommends spending at least six months planning your kitchen remodeling project. That way, you won’t be tempted to change your mind during construction, create change orders, and inflate construction costs. Here are planning points to cover:

Cooking traffic patterns: A walkway through the kitchen should be at least 36 inches wide. Work aisles should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.

Child safety: Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the proper height—3 inches below the shoulder of the primary user but not more than 54 inches from the floor.

Outside access: If you want easy access to entertaining areas, such as a deck or patio, factor a new exterior door into your plans.

A professional designer can simplify your kitchen remodel. Pros help make style decisions, foresee potential problems, and schedule contractors. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.

#2 tomorrow ...

The Ten Best Cities to Buy In

2011-04-02T19:33:00.000-07:00

Cities that had been hard-hit by the housing market crash now offer some of the best buys in real estate and where it makes much more sense to buy than rent, according to a new report from Deutsche Bank. The bank’s study measures affordability by the share of income that Americans are paying to own a home as well as the cost of owning vs. renting.

Tigard - Many Buyers Lack Credit Score Knowledge

2011-04-01T08:42:00.000-07:00

Many Buyers Lack Credit Score Knowledge

Some consumers lack the knowledge about credit scores, and most importantly, how you can boost it to get better deals on home loans or other type of loans.

A survey of 1,000 consumers conducted by Opinion Research asked consumers 22 questions about credit scores. On average, consumers got 60 percent of the questions right, revealing several gaps in credit score knowledge.

"They did not understand the financial cost of a low score," says Stephen Brobeck, executive director of the Consumer Federation of America, an association of nonprofit consumer organizations. For example, a person with bad credit trying to take a $20,000, 60-month car loan, might have to pay about $5,000 or more in interest than someone with a good credit score, according to a survey by the Consumer Federation of America and VantageScore Solutions.
Many consumers also didn’t know how to boost credit scores. One common myth, for example, is that paying cash is the only way to build a good credit score. However, the amount of available credit you have isn’t what hurts your credit score and borrowers are usually better served at keeping two or three credit cards open. A credit score factors in the amount of debt you carry in relation to that available credit — and how well you pay your bills on time that matters more to lenders, the Detroit Free Post reports.

Credit scores have been dropping nationwide due to economic hardship. About a quarter of customers — nearly 43.4 million — had a credit score of 599 or below, which is considered poor risk, and likely won’t qualify them for loans. Or, they’ll have to pay dearly for mortgages or car loans, according to FICO.

Consumers are entitled to a free copy of their credit reports once a year from each of the three nationwide credit-reporting companies. Visit www.annualcreditreport.com.

Source: “Knowledge Lacking on Credit Scores,” Detroit Free Press (March 10, 2011)

Tigard - Appliance Maintenance: Heating, Venting, and Air Conditioning (HVAC)

2011-03-31T11:01:00.000-07:00

Keep your HVAC systems running efficiently and reliably with this simple maintenance routine. Here’s a list of maintenance tips to keep your heating and cooling system running efficiently and reliably:

Every 90 days, install a new one-inch pleated furnace filter. Families with shedding pets should replace the filter every month. Expect to pay $10 to $25 per filter.
Always maintain at least two feet of clearance around outdoor air conditioning units and heat pumps.
Weekly in summer, brush or blow off fallen debris from top and sides of outdoor air conditioning units and heat pumps. Do not allow the lawn mower to discharge grass clippings onto the unit.
Monthly, inspect insulation on refrigerant lines leading into house. Replace if missing or damaged.
Annually, ensure that outdoor air conditioning units and heat pumps are on firm and level ground or pads.
Annually in spring, pour a cup of bleach down the air conditioner condensate drain to prevent buildup of mold and algae, which can cause a clog.
In summer, shut off the water supply to the furnace humidifier. In fall, replace the humidifier wick filter, set the humidistat to between 35% and 40% relative humidity, and turn on the water supply.
Never close more than 20% of a home's registers to avoid placing unnecessary strain on the HVAC system.
Each spring, wash and dry filters and vacuum condenser coils on all window air conditioning units placed into service.
Annually, replace the battery in your home's carbon monoxide detector.

Douglas Trattner has covered household appliances and home improvement for HGTV.com, DIYNetworks, and the Cleveland Plain Dealer. During the 10-year stewardship of his 1925 Colonial, he’s upgraded almost every household appliance. After lengthy deliberation, he recently replaced an aging top-load washing machine with an energy-efficient front-load unit.

Tigard - Many Buyers Lack Credit Score Knowledge

2011-03-29T17:36:00.000-07:00

Some consumers lack the knowledge about credit scores, and most importantly, how you can boost it to get better deals on home loans or other type of loans.

"They did not understand the financial cost of a low score," says Stephen Brobeck, executive director of the Consumer Federation of America, an association of nonprofit consumer organizations. For example, a person with bad credit trying to take a $20,000, 60-month car loan, might have to pay about $5,000 or more in interest than someone with a good credit score, according to a survey by the Consumer Federation of America and VantageScore Solutions.

Many consumers also didn’t know how to boost credit scores. One common myth, for example, is that paying cash is the only way to build a good credit score. However, the amount of available credit you have isn’t what hurts your credit score and borrowers are usually better served at keeping two or three credit cards open. A credit score factors in the amount of debt you carry in relation to that available credit — and how well you pay your bills on time that matters more to lenders, the Detroit Free Post reports.

Credit scores have been dropping nationwide due to economic hardship. About a quarter of customers — nearly 43.4 million — had a credit score of 599 or below, which is considered poor risk, and likely won’t qualify them for loans. Or, they’ll have to pay dearly for mortgages or car loans, according to FICO.

Consumers are entitled to a free copy of their credit reports once a year from each of the three nationwide credit-reporting companies.
Source: “Knowledge Lacking on Credit Scores,” Detroit Free Press (March 10, 2011)

Tigard - The 6 Most Vacant U.S. Cities

2011-03-27T08:34:00.000-07:00

The recession and economic woes caused once-booming cities to never reach the potential that some builders had forecast in housing. Overbuilding during the housing boom era and some cities' high unemployment has left several cities across the country facing a high number of vacant homes that are blanketing their landscapes.

Forbes recently released a list of America’s Emptiest Cities, analyzing single-family and rental vacancy rates of the 75 largest metro areas across the country.

The top most vacant cities, according to the Forbes.com list are: (Note: The vacancy rates listed below are from the fourth quarter of 2010.)
1. Orlando
Home vacancy rate: 4.3 percent
Apartment vacancy rate: 23.6 percent

2. Las Vegas
Home vacancy rate: 5.5 percent
Apartment vacancy rate: 13.5 percent

3. Memphis, Tenn.
Home vacancy rate: 4.7 percent
Apartment vacancy rate: 16.1 percent

4. Riverside-San Bernardino, Calif.
Home vacancy rate: 6.4 percent
Apartment vacancy rate: 10.4 percent

5. Dayton, Ohio
Home vacancy rate: 3.3 percent
Apartment vacancy rate: 26.4 percent

6. Phoenix
Home vacancy rate: 3.4 percent
Apartment vacancy rate: 15.5 percent

Nationwide, the single-family vacancy rate ended the year at 2.7 percent while rentals were at 9.4 percent.
Source: “America’s Emptiest Cities,” Forbes.com (March 2011)

Buyers Ready to Snatch Bargains This Spring

2011-03-26T09:20:00.000-07:00

Bargain prices on housing combined with low interest rates below 5 percent may bring the real estate market its busiest spring season in years, economists say.

    Distressed sales continue to put downward pressure on home prices, which may lure more buyers off the fence and ready to snag a deal during the typical prime-time buying season.
    Some builders are ramping up discounts on new homes as well as boosting commissions to brokers to try to spark more transactions.
    Sellers of existing-homes also are getting more competitive in pricing their homes.

"After three years of the housing downturn, people are becoming much more realistic in terms of valuing their homes," says Lawrence Yun, chief economist at the National Association of REALTORS®.
    An improved job market with better income potential may also motivate more people to buy, says David Berson of the PMI Group.

“Household formations are also very important," Berson says. "Kids may have moved back in with their parents, or two people may have moved in together, because of job concerns. Now they can move into their own place."
     While interest rates are sitting comfortably below 5 percent for now (30-year fixed rates averaged 4.76 percent last week), economists warn the attractive low rates won’t last long.

"Few think mortgage rates are going lower," says Mark Zandi, Moody's Analytics chief economist. "It's more likely they will be 6 percent than 4 percent next spring. This lights a fire under buyers."

Source: “Discounts Expected in Spring Housing Market,” The Wall Street Journal (March 22, 2011)

What Buyers Want in Homes Today!

2011-03-21T09:38:00.000-07:00

Buyers have a long list of what they want when home shopping, but one of their biggest desires: A good deal.

"And no matter where a seller prices their property, they're looking to negotiate," says Patricia Szot, president of the MetroTex Association of REALTORS®.

But that’s not all they want. Bankrate.com recently asked real estate professionals to chime in on the top desires of their buyers when home shopping. Here are four things that made the list of top home buyer preferences:
1. Homes that are in good condition. "There's not a lot of flexibility in that," says Ron Phipps, president of the National Association of REALTORS®. Many buyers now take the attitude: "I'd rather spend the money getting into the house" and not have to spend more money later, Phipps says. One of the major reasons is that "buyers have limited amounts of cash," he adds. "Even if they want to do a fixer-upper, they don't have the money to do it."

2. A bargain with incentives. Buyers are looking for a good deal, even when considering bank-owned properties, says Joan Pratt, real estate broker with RE/MAX Professionals in Castle Pines, Colo. "They want the short sales and the foreclosures and they want them to look like they're owner-occupied," she says. "They don't want to paint. They don't want to put carpet in. They don't want to clean."

And they aren’t only asking for a low price but they also want incentives to buy too. As such, sellers are offering everything from gift cards for new furniture to paint to financial assistance at closing.

3. Outdoor living areas. Homes with screen porches, outdoor kitchens, two-way fireplaces are becoming increasingly competitive in the marketplace as more buyers say they want more outdoor living space.

4. Open kitchens. "The wall between the kitchen and the family room is evaporating," Phipps says. "The kitchen is becoming part of the gathering space.” (See Buyers Want Cozy, Connected Kitchens)

Source: “9 Items Homebuyers Desire in 2011,” Bankrate.com (March 2011)

Tigard, Tualatin, Sherwood, etc Real Estate Statistics through mid-March!

2011-03-19T14:09:00.000-07:00

It is still a buyer's market with many bargains to be found. Interest rates are still a bargain, too, but with promises to rise and more hoops to jump through this year. Click here for the latest Portland Metro Market Action.

More homes sold this past month than a year ago and prices are lower than they were a year ago. The average sale price dropped 10.7% and the median price is down. 8.9% Check out the above link for specifics and for your area!

Helpful to Tigard Real Estate Market!

2010-11-06T14:59:00.000-07:00

Portland, OR - Here is another indicator that the Portland real estate market has turned the corner. “Portland's downtown real estate scene is about to get a lot more interesting, as multiple developers are suddenly pushing new projects to deal with a shortage -- yes, a shortage -- of large blocks of downtown office space.” You can read more about this topic in yesterday’s/November3rd Oregonlive.

In addition, Intel has announced they will invest 8 Billion in their Hillsboro plant.

All this translates into jobs, 8000 in construction jobs for Intel alone. We all know jobs are important to our economy which drives our Portland and Tigard real estate market!

Tigard Voters Say YES to Parks!

2010-11-06T14:52:00.000-07:00

Tigard voters approved a parks bond measure on Tuesday by a 52 to 48% margin. The measure allows the City to issue up to $17 million to acquire land for parks and open spaces. At least 80% of the funds will go toward land acquisition for open spaces, parks, or trail corridors. Up to 20% of the funds will go to improvements and development of parkland.

The city has agreements in place to purchase approximately three acres on Tigard Street to add to the soon to be purchased Summer Creek property adjacent to Fowler Middle School. An agreement is also in place to purchase 20 acres (known as the Sunrise property) off of Sunrise Lane in the city on Bull Mountain.

“With the passage of this bond measure, Tigard residents’ vision of a community where every citizen has neighborhood access to parks and open space and vital natural environmental resources are preserved, will be realized.” commented Mayor Dirksen.
Over the next year, the city’s citizen member Park and Recreation Board (PRAB) will identify and recommend additional property to purchase using the adopted Parks System Master plan as a guide. Improvements and development of specific park sites will be approved through the city’s annual budget process and finalized this spring. If you have questions, contact Dennis Koellermeier, Public Works Director at 503-718-2596 or dennis@tigard-or.gov.

Tigard, OR recycle those dried flowers!

2010-11-06T14:47:00.000-07:00

Tigard, OR - Ever wonder what to do with all those old silk flowers??

Send them to Terri Smith in the children’s library section at Tigard Public Library by Nov 22 and we will make good use of them in arts and crafts projects.

Sincerely,
Terri Smith ~ Senior Library Assistant Youth Services
13500 SW Hall Blvd.
Tigard, Oregon 97223
Desk Phone: 503-718-2523
Public Phone: 503-684-6537

What is Happening at Tigard City Hall?

2010-11-06T14:43:00.000-07:00

Tigard, OR: On Monday, 10/11/10, Crews began working on a long-awaited roof replacement project on the Permit Center at City Hall. Using money from an 2009 Energy Star Grant ($230,500) crews are replacing the existing roof with a new Energy Star compliant roof. The new roof system will have an R-Value of 20.5. It will result in a 13% reduction in energy use (approximately 1,003 therms per year or 20,060 therms over the 20+ life of the new roof.) This is a reduction in green house gas emissions of 5 metric tons of CO2 annually or 100 metric tons of CO2 over the life of the roof.

Crews expect to have the job completed within 2-3 weeks. Most of the noise will be outside the building, with a little bit of dust falling from the inside roof deck. Crews don’t expect this to impact staff or visitors in Tigard, OR City Hall.

Fall Tips for Your Home!

2010-09-27T12:20:00.000-07:00

Late September means the beginning of preparation for winter.

• Your furnace or heating system is a great place to begin. Having it serviced means it will be ready when that first cold day arrives AND, it can save on your heating bill all season long!

• Replace furnace filters. Dirt makes the system work harder!

• Make certain all external doors close tightly. If they don’t, install automatic closers and a gasket which seals the door shut.

• Check the caulking around all windows to check for leaks.

• Use caulk or foam to fill any holes drilled in your attic floor (for cable wires, phone, etc.).

• Check for adequate insulation in your attic. This makes a significant improvement.

10 Reasons To Buy a Home

2010-09-21T19:46:00.000-07:00

By Brett Arends , The Wall Street Journal

Enough with the doom and gloom about homeownership.

Sure, maybe there's more pain to come in the housing market. But when Time magazine starts running covers that declare "Owning a home may no longer make economic sense," it's time to say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.

After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet Home," declared its cover then, as it celebrated the boom and asked: "Will your house make you rich?"

But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way– about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains–if any–when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension–zoning permitted–or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. "You can tell the ones that have been bought," said my local guide. "They've painted the front door. It's the first thing people do when they buy." It was a small sign that said something big.

5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.

6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities–for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy–if it happens–and still managing to sleep at night.

8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed–either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slump in western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply in your town.

Portland, Oregon is still a good place to buy a home!

2010-06-30T12:17:00.000-07:00

An article published by NAR (the National Association of Realtors) shows a graph which charts the equity individuals who purchased a home at the median price five, ten, fifteen, and twenty years ago would have built up if they had kept that home through 2009. Portland is still a good place to invest in home-ownership!

What is a CDPE?

2009-12-20T15:00:00.000-08:00

As a CDPE myself, people often ask me this question. It is a good one and an important one. Here is the ‘official’ answer:
A Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.
While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs. CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.
Please give me a call if you or anyone you know is facing a hardship with his or her home. I am happy to help.

More Extended Tx Credit Info

2009-12-09T13:55:00.000-08:00

The new law as explained by the IRS:
Authorizes the credit for long-time homeowners buying a replacement principal residence.
Raises the income limitations for homeowners claiming the credit.
Members of the military, Foreign Service and intelligence community serving outside the U.S. should also be aware of new benefits in the law that apply particularly to them.
A new version of Form 5405, First-Time Homebuyer Credit, will be available in the next few weeks.
A taxpayer who purchases a home after Nov. 6 must use this new version of the form to claim the credit. Likewise, taxpayers claiming the credit on their 2009 returns, no matter when the house was purchased, must also use the new version of Form 5405. Taxpayers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return.
A taxpayer who purchased a home on or before Nov. 6 and chooses to claim the credit on an original or amended 2008 return may continue to use the current version of Form 5405.
Income Limits Rise
The new law raises the income limits for people who purchase homes after Nov. 6. The full credit will be available to taxpayers with modified adjusted gross incomes (MAGI) up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000, or $225,000 and $245,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.
Homes purchased prior to Nov. 7, 2009, existing MAGI limits remain in place. The full credit is available to taxpayers with MAGI up to $75,000, or $150,000 for joint filers. Those with MAGI between $75,000 and $95,000, or $150,000 and $170,000 for joint filers, are eligible for a reduced credit. Those with higher incomes do not qualify.
New Requirements
Several new restrictions on purchases that occur after Nov. 6 go into effect with the new law:
• Dependents are not eligible to claim the credit.
• No credit is available if the purchase price of a home is more than $800,000.
• A purchaser must be at least 18 years of age on the date of purchase.
For Members of the Military
Members of the Armed Forces and certain federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and still qualify for the credit. An eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011, and settle on the purchase by June 30, 2011.
For more details on the credit, visit the First-Time Homebuyer Credit page on IRS.gov.

The New Tax Credit Basics

2009-12-04T12:08:00.000-08:00

By now we have all heard that in an effort to stimulate the U.S. housing market as well as address the economic challenges facing our nation, Congress has passed new legislation that:

· Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010. AND, here’s the new part:
· Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

I have been asked a lot of questions about how it really works, so will address these some of these questions here as well as in following blogs this week. Here are some of the basics:

So Who Qualifies?
· First-time home buyers who purchase homes between November 7, 2009 and April 30, 2010.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
· Current home owners purchasing a home between November 7, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

What Property Types Qualify?
Primary residences only! These may include: single family homes, townhomes, condos and co-ops.

Will it have to be Paid Back?
No, if you plan to live in the home for a minimum of 3 years. Should you decide to sell it within those 3 years the credit will be recouped with the sale.

Next I will cover the amount available, income and income limits and begin to answer more indepth questions.

When Will Real Estate Bottom Out?

2009-11-25T09:26:00.000-08:00

We realtors are often asked when will the market hit the bottom. I tell people that it something you will only see in the rear view mirror! Every state is different as is every town and small community within any town. Real estate is local! Besides, the 'bottom' won't be a flat-line.

There will be considerable bouncing due to a myriad of factors. These include such broad issues as the economy, both national and local as well as employment. The rise in foreclosures and short sales puts more stress on market conditions and will greatly influence recovery. Until these homes/condos are sold, it will be a weak recovery. In some areas this will take years!

The are many indicators that can help:

It is important to follow current home sales and prices in your own area. Generalizations from different areas in different parts of the country have little influence on your own neighborhood.
Connect with your realtor, Jane Davies! :), to be sent listings and, more importantly, sales in your area of interest. Don't depend on hearsay and gossip.
Get the facts! Ask to be sent articles pertaining to issues of interest to you; i.e, lenders and their information concerning rates. ... Did you hear interest rates were at 4.5% this week? WOW!

There is much you can do to stay abreast of real estate market conditions that are pertinent to your personal situation.

Home Sales Predicted to Rise in 2010!

2009-11-23T12:13:00.000-08:00

With amazingly low interest rates coupled with homebuyer incentives and many homes still on the market, the sale of homes is expected to increase in the coming year. Increased sales will be helped by the governments newly expanded federal tax credit for homebuyers according to Housing Predictor.

The national deflation rate is predicted at around 8.7%. There are over 19 million homes vacant and in foreclosure in the US right now. Until this inventory is sold, housing prices will remain at the current levels. Remember though that all real estate is local and some areas will be happily surprised to see some appreciation. The areas that have been hit the hardest might see double digit deflation even though actual home sales may be increasing.

So, in spite of the signs of recovery, it will take years for the housing market to recover. In the meantime, take advantage of this unusual market!

Highest Taxed States

2009-04-03T19:06:00.000-07:00

Top 10 Most Heavily Taxed States
It’s April, so people’s thoughts are turning to taxes, and where they live makes a big difference in how much they pay. Here are the 10 states with the highest taxes, including property, individual income, sales, alcoholic beverages, tobacco, motor vehicles, hunting and fishing, motor fuels, death and gift taxes, as well as insurance premiums. The per capita tax was derived by adding up all the taxes and dividing the total by the number of citizens.
1. Vermont, $3,861
2. Hawaii, $3,856
3. Connecticut, $3,596
4. Minnesota, $3,203
5. New Jersey, $3,024
6. New York, $3,019
7. Massachusetts, $2,953
8. Washington, $2,553
9. Wyoming, $2,357
10. Pennsylvania, $2,223
Source: Forbes, Matt Woolsey (03/30/2009)

It's a Good Time to Buy says survey!

2009-03-31T20:23:00.000-07:00

Daily Real Estate News March 26, 2009
Survey: Households Say Now Good Time to Buy More than three-quarters (78 percent) of potential first-time home buyers say that now is a good time to buy a home, despite widespread concern about the economy. Out of the 1,000 prospective U.S. first-time home buyers surveyed in early March for the CENTURY 21 First-Time Home Buyer Survey, 68 percent think now is a better time to buy than six months ago.Prices are the driving motivation for potential first-time home buyers with more than eight of ten first-time home buyers (85 percent) saying they consider current home prices affordable and 73 percent citing that taking advantage of current prices is a major factor in their decision to buy. Interestingly, potential first-time buyers are still split between “being willing to consider an offer now” (42 percent) and “waiting for prices to go down before they seriously consider making a purchase” (48 percent).“Current pricing, rates and incentives, such as the First Time Homebuyer Tax Credit, provide tremendous opportunities for first-time home buyers to get into the market,” said Tom Kunz, Century 21 Real Estate president and CEO. “Our research shows that while consumers still have concerns about the future of the economy, many are actively considering their options as we move into the spring selling season.”Among the survey’s other key findings:
Bargains in the marketplace are providing additional options for buyers to consider. 56 percent of potential first-time home buyers are considering purchasing a foreclosed or short sale home, and 63 percent are open to purchasing either a “fixer-upper” or “as-is” home.
When asked to rate the features that they look for when choosing a home, price is the primary consideration with 87 percent saying this feature is “very important,” followed closely by neighborhood safety (80 percent) and the condition of the home (71 percent).
Having enough money for a down payment is a top concern of potential first-time home buyers as nearly half (46 percent) said they are “very worried” about the issue.
Most respondents (86 percent) are in the market for single family homes.

News for Troubled Homeowners

2009-03-23T12:09:00.000-07:00

There is a new website called Making Your Home More Affordable which is intended to help troubled owners determine if they are eligible to negotiate a loan modification, refinance or short sale. This is intended to help 4 million or so homeowners whose loans are with Fannie Mae or Freddie Mac. Click here to read the Treasury Department's press release regarding the program.

The Fannie Mae form is at www.fanniemae.com/homeaffordable or call 800-732-6643.

The Freddie Mac form is www.freddiemac.com/avoidforeclosure or call 800-373-3343.

Another site called Hope Now as information on how to apply for help thgough your mortgage holder. The hope Now hotline: 888-995-4673.

Call me for more information: 503-495-3897 - Jane Davies, Broker

How to get your $8000 now!

2009-03-06T12:52:00.000-08:00

Here is some good news!

The American Recovery and Reinvestment Act of 2009 features an $8,000 tax credit for first-time buyers who purchase a home on or after January 1, 2009 and before December 1, 2009.

Details of the tax credit include:

Þ The temporary credit is only available for home purchases made between January 1, 2009 and December 1, 2009 and is equal to 10% of the cost of the home, up to a maximum credit of $8,000. (For example, a home purchased for $80,000 or more would qualify for the full $8,000 credit while a $70,000 home would only qualify for 10%, or $7,000.

Þ Buyers claim the credit on their federal tax return to reduce their tax liability. If the credit is more than their total tax liability that year, the buyer will get a refund check for the balance.

Þ Only first-time homebuyers can take advantage of the tax credit. A first-time buyer is defined as an individual who has not owned a home in the last three years. For married joint filers, both must meet the first-time homebuyer test to take the credit on a joint return.

Þ Eligible properties include anything that will be used as a principal singe-family residence, including townhomes and condos.

Þ Call me for income guidelines. In brief: there are income guidelines on the credit. Individuals with an adjusted gross income up to $75,000 (or $150,000 if filing jointly) are eligible for the full tax credit. The credit is phased down for those earning more and is not available for those with an income above $95,000 (or $170,000 if filing jointly).

Þ The new tax credit does not have to be repaid if the buyer stays in the home at least three years. But if the home is sold before that, the entire amount of the credit is recaptured on the sale.

How does it work? Attend my seminar:
March 19 - 6:00 - 7:00 PM
4800 SW Meadows Rd., 1st Floor Conference
RSVP: 503-816-7084

Good News for Portland Real Estate Market!

2009-02-25T11:56:00.000-08:00

I thought you might be interested in the following article published by http://www.forbes.com/ concerning the current Portland Real Estate market. It shows Portland as #4 in cities showing stabilization!

Real Estate
Ten Best And 10 Worst U.S. Housing MarketsMatt Woolsey, 02.24.09, 11:50 AM EST
The cities that are showing signs of stabilization and those that continue to unravel.

In Depth: 10 Best And 10 Worst U.S. Housing Markets
Wishing you'd left the game earlier is a time-honored Las Vegas tradition. Today, that's true not only for gamblers but for homeowners there. The last time Las Vegas properties were worth more than the average mortgage? August 2003.
Blame overbuilding and risky loans, a gambling mentality or even the desert sun, but based on today's results from the S&P/Case-Shiller home price index, which measures metro home prices in 20 cities through December 2008, Las Vegas is the weakest market in the country. Prices are dropping quickly (down 4.81% since last month and 33% in the last year), the pace of decline is accelerating at the third-fastest rate in the nation, and based on lost equity, homeowners are out 65 months of mortgage payments.
All signals that things aren't likely getting better any time soon.
In Depth: Ten Best And 10 Worst U.S. Housing Markets
"Vegas is a market unto its own," says Steve Cesinger, chief financial officer at Dewberry Capital, an Atlanta-based real estate investment firm. "I don't know what those guys were drinking when they thought all this building made sense. If it does work out soon, then there's some force out there in the universe that I'm not aware of."
The S&P/Case-Shiller home price index, released monthly, examines repeat home sales in 20 metro markets, including the city core and surrounding suburbs. This means that while prices in tony San Francisco neighborhood Pacific Heights might be holding up, the net effect of including a bankrupt suburb like Vallejo brings down the metro area's score. Each city's score is assigned based on the price difference from 2000, which is scored as 100. So San Francisco's score of 130.12 means prices are up 30.12% from 2000. It still has the potential for a further fall, given the 31% year-over-year drop.
Forbes also analyzed monthly declines and year-over-year declines in home prices to determine where prices were falling fastest and where those drops were picking up momentum. It's not a good thing for San Diegothat prices from November 2008 to December 2008 fell 2.13%, but as prices declined by 2.29% from October to November, and 2.44% from September to October, the speed with which prices are falling is slowing.
That slowing rate of decline, also seen in places such as Denver, Washington, D.C., and Boston, helped rank those cities as some of the stronger markets in the country.
Contrast that with Minneapolis, where prices fell just 0.96% from September to October, but by December, the rate of month-to-month declines had jumped to 4.6%, an unwelcome acceleration.
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Next, to rule out places in complete depression, we looked at how many months of equity homeowners have lost. Places like Detroit (-2.98%) and Cleveland (-2.07%) haven't declined as quickly over the last month as Seattle (-3.63%) or Charlotte (-2.55%), but that's because prices in those two Rust Belt cities are so depressed it's difficult for them to fall any further. Detroit and Cleveland homeowners have lost 141 and 92 months of equity, respectively, whereas Seattle and Charlotte prices have only declined for the last 39 and 33 months, respectively.
One other factor to consider with the Case-Shiller numbers is that the index tracks repeat home sales. That means cities like Tampa and Miami, which are notorious for overbuilt new inventory and high numbers of foreclosures, perform better on the index than they ought to, as those two factors are not tracked.
"Case-Shiller doesn't take into account new construction or foreclosure sales," says Jonathan Miller, president of Miller Samuel, a Manhattan residential appraisal firm. "In some of these markets, I'm not sure how you can ignore new construction or foreclosures."
Another city with foreclosure and new construction problems is Phoenix, where bad loans have mounted and mortgage delinquencies, a forebearer of foreclosures, have risen.
"It's pretty gruesome," says Anthony Sanders, a finance professor at Arizona State University. He points to delinquencies as a major problem and a sign that the Valley of the Sun won't be bouncing back any time soon. In Phoenix, seriously delinquent loans--those that haven't been paid in 90 days--have increased from 3.5% to 27.3% for subprime loans since this time in 2005. Adjustable-rate mortgages that are seriously delinquent have gone from less than 1% to 20.2% in the same period.
With those problems looming on the horizon in many cities across the country, Obama might need more ammunition than his proposed $75 billion foreclosure prevention package offers.
Then again, even in a boom-bust capital like Los Angeles, if you bought in 2000, paid your mortgage on time and are still in your home, you've seen a 71.5% price appreciation. There's something to be said for that kind of responsible, long-term investor.

####

The following is copied from the link at the beginning: In Depth: 10 Best And 10 Worst U.S. Housing Markets

Best, No. 10: Seattle, Wash.
Index score: 160.19
Prices were last this low: October 2005
Month-to-month drop: -3.63%
Year-over-year drop: -13.35%
Deceleration rank: No. 19
Best, No. 9: Los Angeles, Calif.
Index score: 171.46
Prices were last this low: November 2003
Month-to-month drop: -2.5%
Year-over-year drop: -26.4%
Deceleration rank: No. 4
Best, No. 8: Dallas, Texas
Index score: 115.63
Prices were last this low: May 2004
Month-to-month drop: -2.33%
Year-over-year drop: -4.27%
Deceleration rank: No. 16
Best, No. 7: Boston, Mass.
Index score: 153.05
Prices were last this low: June 2003
Month-to-month drop: -1.28%
Year-over-year drop: -7.01%
Deceleration rank: No. 6
Best, No. 6: Denver, Colo.
Index score: 125.74
Prices were last this low: June 2003
Month-to-month drop: -1.5%
Year-over-year drop: -4%
Deceleration rank: No. 7
Best, No. 5: San Diego, Calif.
Index score: 152.16
Prices were last this low: October 2003
Month-to-month drop: -2.13%
Year-over-year drop: -24.84%
Deceleration rank: No. 1
Best, No. 4: Portland, Ore.
Index score: 158.5
Prices were last this low: September 2005
Month-to-month drop: -2.53%
Year-over-year drop: -13.14%
Deceleration rank: No. 11
Best, No. 3: Charlotte, N.C.
Index score: 122.41
Prices were last this low: April 2006
Month-to-month drop: -2.55
Year-over-year drop: -7.19
Deceleration rank: No. 13
Best, No. 2: Washington, D.C.
Index score: 176.34
Prices were last this low: April 2004
Month-to-month drop:-2.18%
Year-over-year drop: -19.24%
Deceleration rank: No. 3
Best, No. 1: New York, N.Y.
Index score: 183.5
Prices were last this low: November 2004
Month-to-month drop: -1.72%
Year-over-year drop: -9.19%
Deceleration rank: No. 9

So, is THIS the Time to Buy in Portland, Oregon?

2009-02-11T15:51:00.000-08:00

By: Yasmin Khajavi
Stewart Title of Oregon
Eight Centerpointe Dr. Ste B
Lake Oswego, OR 97035
503-290-5543

There is a positive undercurrent in Portland real estate right now. Our population continues to grow. Housing affordability is the best in years. Mortgage rates remain low. According to the National Association of Realtors, existing home sales rose 6.5% in December. In fact, ShowingTime (a real estate software tool) reports that showings were up 10% over the year before.
So is this the time to buy? It is certainly the time to be looking for great deals and preparing your current home if you decide to sell. With flexible sellers and historically low interest rates, it may be smart to sell now and buy up to the neighborhood or home you’ve always wanted. Even if you don't get as much as you would like on your current sale, if you buy up you save more on your purchase.
National statistics show that a typical buyer plans on staying in their home for at least seven years. Buyers are taking advantage of great deals by focusing on long term prospects for housing in our area.
JUST ASK
Q: Is there such a thing as a billion-dollar property?
A: Not yet. Of course, there are some who remember when a million-dollar home was a big deal. Even with prices dropping, a million-dollar home is the norm in many areas. But have you ever thought about how much a billion is?
A billion seconds ago it was 1959.
A billion minutes ago Roman centurions walked on earth.
A billion hours ago it was the Stone Age.
A billion days ago no one walked on the earth.
A billion dollars ago was only 8 hours and 20 minutes at the rate our government is spending it.
Those are some fun factoids that help us to put the concept of "billions" into perspective.
OUR TOWN
A recent study from Pew Research found that Portland was one of the top 10 cities where people want to live. This is one of the reasons why our long term housing prospects look better than many other areas.
FYI
Although we have seen a slight bump, rates are still extraordinarily low and offer tremendous buying opportunities.

The benefits of owning 13063 SW Caddy Place, Tigard, OR

2009-02-05T10:22:00.000-08:00

Located on a popular cul de sac, 13063 SW Caddy Place, Tigard, Oregon is a fabulous 3 bedroom end unit in Bull Mt. area with a Mt Hood view. It is across from a greenspace and is beside grassy area. High ceilings & large, bay windows make it bright and airy. The master has a vaulted ceiling, ceiling fan, skylight and a soaker tub. There are 2 walk-in closets, oodles of storage, a deck, back patio with a working Hot Tub. It is landscaped, has a garden wth raised beds. Close to parks, Washington Square, transportation. Move-in ready! Across from higher priced homes.

Benefits: Townhome living can be a huge advantage for some people. Paying a small monthly Home Owner Association dues relieves the stress of, to list a few benefits:

Paying for a new roof;
Paying for outside maintenance
Paying a landscaping service
Paying for painting the exterior
It's easier on your lifestyle: should I go to the movie or mow the lawn?

It can be a great way to get into the housing market for a first time buyer; it's nice for retirees and even more so if they are snowbirds. Many singles live in townhomes, and some people own townhomes while they are saving for the larger home of their dreams. It can be a very positive move. To see more of this townhome at 13063 Caddy in Tigard, click here.

To search all homes for sale in Tigard, OR click here.

To find more Portland Real Estate click here.

Why should I live at 21804 SW Roellich Ave in Sherwood, Oregon?

2009-02-05T09:39:00.000-08:00

21804 SW Roellich is a delightful 3-bedroom home backing to Greenspace in a very popular Sherwood, Oregon neighborhood with a Master on the Main. Built in 1997, it has 1426 square feet. This home lives large; it flows! New carpeting has just been installed, it has been freshly painted, has a huge deck perfect for entertaining, an open kitchen/great room and a formal living room which could also be used as a formal dining room. The new elementary/junior high school which will open this fall is within walking distance. This home is a winner!
View more details here!
To find other homes for sale in Sherwood click here!
For more Real Estate information and tools click here!

Is the Grass Greener?

2009-02-04T12:03:00.000-08:00

Daily Real Estate News | February 4, 2009 |

Survey Finds Grass Is Greener on the Other Side

The results of a survey exploring attitudes related to where Americans would like to live show that the grass is definitely greener on the other side of the fence.

About 46 percent of people would prefer to live in a different type of community from the one they live in now, the survey by the Pew Research Center's Social & Demographic Trends found. That sentiment was most common among urban dwellers.

But the desire to move elsewhere doesn’t stop people from appreciating their current locale. About 80 percent rank their current communities as excellent, very good or good. Both the 63 percent who have moved at least once and the 37 percent who have lived in the same place all their lives are equally satisfied with their current locations.

Other findings include:

Americans are all over the map in their views about their ideal community type: 30 percent say they would most like to live in a small town, 25 percent in a suburb, 23 percent in a city and 21 percent in a rural area.
About 75 percent of Americans say they prefer living where the pace of life is slow, not fast. A similar majority prefers a place where neighbors know each other well to one where neighbors don't generally know each other's business.
About 65 percent say they prefer to live in a hot-weather climate rather than a cold one.
Fast food gets the nod with 43 percent preferring to live in a place with more McDonald's outlets vs. the 35 percent who would rather have more Starbucks shops.

Asked to rank cities where they would live if they could, nearly everyone chose warm weather locations in the South or the West. Here are their top 15 picks:

1. Denver, 43 percent
2. San Diego, 40 percent
3. Seattle, 38 percent
4. Orlando, 34 percent
5. Tampa, 34 percent
6 San Francisco, 34 percent
7. Phoenix, 33 percent
8. Portland, Ore., 31 percent
9. Sacramento, 29 percent
10 .San Antonio, 29 percent
11. Boston, 28 percent
12. Miami, 28 percent
13. Atlanta, 26 percent
14. Washington, DC, 25 percent
15. New York, 24 percent

Source: Pew Research Center (01/29/2009)

2009-02-03T19:27:00.000-08:00

Forbes.com

Where We Live
America's Most And Least Popular Cities
Lauren Sherman, 01.29.09, 02:00 PM EST

Those who live in the U.S. love and hate these 10 spots.

In Depth: America's Most And Least Popular Cities
Looking to start over?

Those who have lost their jobs, defaulted on their mortgages or are simply searching for a change might want to consider Denver. The city-- known for its skiing, culture and bustling singles scene--is where Americans would like to live the most, according to a recent survey conducted by Washington, D.C.-based group Pew Research Center.

San Diego, Seattle, Orlando and Tampa, Fla., are the other most popular cities.
In Depth: America's Most And Least Popular Cities.

At the opposite end of the spectrum, Americans say they'll stay clear of Detroit, Cleveland, Cincinnati, Minneapolis, Minn., and Kansas City, Mo.

Behind the Numbers
In October, Pew--a non-partisan research group, funded by the nonprofit Pew Charitable Trusts, that tracks social and demographic trends--conducted a nationwide telephone survey of 2,260 adults.

Researchers listed 30 of the country's largest metropolitan statistical areas and asked "Would you want to live in this city or its surrounding metropolitan area or not want to live there?" Those surveyed reflect U.S. population in proportion in terms of age, sex and race, and many of the surveys were conducted on cell phones, not land lines, which means a larger swatch of respondents was reached.

While answers varied, one thing was certain: geographical location and weather play a major role in where we want to settle down. The five top-ranked places were in either the West or South, while the five cities at the bottom of the list are all in the Midwest.

"There is a reason the Sun Belt population continues to increase," says Paul Taylor, head of social and demographic trends and executive vice president at the Pew Research Center. "Weather did play a role in people's choices."

Sunny spots like San Diego, Tampa and Orlando did so well because of near year-long mild temperatures. (Although we're betting few people surveyed took hurricane season into consideration.) Indeed, overall perceived attitude of the city was the biggest factor, according to the Pew report: "Seven of the top 10 metropolitan areas are in the West, and the other three--San Antonio, Orlando and Tampa--are Southern cities that share the characteristics of many Western metro areas: warmer weather, a casual lifestyle and rapid growth."

Up north, harsh winters helped Minneapolis to its dismal rank. Despite its fine cultural institutions--including Minnesota Public Radio--and financial dedication to the arts, 82% of those surveyed said that they wouldn't want to live there.
Of course, current economic conditions also play a role. It's no surprise that 90% of those surveyed don't want to live in Detroit, which ranked lowest out of 30 cities. It's got a 9.5% unemployment rate and a murder rate 5.16 times higher than the national average.

But just because Americans are straining to pay their bills doesn't necessarily mean they overwhelmingly want to seek better opportunities elsewhere. Just over half of those surveyed said that they're living in their ideal community, while 46% said that they would rather live in a different place.

2009-02-01T09:52:00.000-08:00

Real Estate: as written in Forbes.com
Best Home Improvements To Make In A Recession
By: Matt Woolsey, 01.29.09, 06:00 PM EST

Installing energy-saving technologies is a great way to save money on homeowner costs.

The days of undertaking quick-fix remodels to sell a home more quickly and for more money are long gone. Now, with loans hard to come by and home sales slow, remodeling is all about projects that save you money in the long term and pay you cash up front.
Believe it or not, the federal government is more than willing to help--to the tune of thousands in tax credits. But this isn't about redoing your kitchen; it's about energy independence.

In a recession, there's nothing better than padding your wallet whenever you can, so reducing energy costs makes natural sense. A serious commitment to this idea does have significant upfront costs, but it can save thousands in the long run.

From Windows to Wind
The Emergency Economic Stabilization Act of 2008, passed in October, increased the size of energy-related tax credits for homeowners. In past years, $200 credits for energy-efficient windows or improvements to a roof were nothing exciting, but the new law added two particularly interesting technologies to the tax-credit rolls: wind turbines and geothermal heating systems, with credits of $4,000 and $2,000, respectively.

Granted, both are expensive investments--and that's assuming your neighborhood or homeowner association will let you put wind turbines on your property. They can run between $5,000 and $25,000. Still, these systems have the potential to reduce monthly energy costs to zero.

Geothermal heat pumps, which run between $3,000 and $10,000, won't reduce your water-heating bills to zero, but as they draw 70% of their energy directly from the earth, which is free, they can dramatically reduce hot-water costs.

Keep in mind: The old tax credits are still on the books, meaning you can still save if a wind turbine is currently outside your price range but energy-efficient windows are not. In fact, the 2008 law even featured some upgrades in tax-credit levels.
"Many of them are new in that they came out of the Energy Policy Act of 2005 or the Energy Independence Security Act of 2007 and were renewed," says Jonathan Cogan, a spokesman for the Department of Energy. "Some of those previously enacted tax incentives had a sunset date on them, and the more recent legislation extended the life of those."

The credit is now $500 for window and roof improvements, instead of the $200 offered last year.

The Bigger Picture

While such incentives are good news for homeowners trying to save a buck, some suggest that the tax credits don't go far enough in stimulating private-sector investment or reducing greenhouse emissions.

While cars and factories contribute to greenhouse emissions, 48% of them come from buildings, according to Architecture 2030, a green architecture research group. Edward Mazria, president of Mazria, Inc., a Santa Fe, N.M., architecture firm, notes that homeowners behind on their mortgages are unlikely to make large up-front investments in technologies like fuel cells or solar arrays, which can cost $5,000 to $20,000, even if they do pay for themselves in the long run--some even can make money for a homeowner by feeding the power they generate back into the grid.

To keep people in their mortgages, many--including House Financial Services Chairman Barney Frank to the National Association of Realtors--have floated the idea of mortgage-rate buy-downs as an attempt to keep people in their homes and encourage home buying.

Mazria suggests combining the two: Allow mortgage-rate buy-downs if homeowners improve their energy efficiency by 75%. Homeowners don't have to choose between the short and long term, and government money becomes directly invested into green projects.

"It requires homeowners to invest money into improving the efficiency of their home," says Mazria. "Without it, the plans for the federal government to buy down mortgage rates? All that does is incentivize refinancing, it doesn't create any jobs."

And little could be better than the combination of lower mortgage payments and smaller energy costs. Especially when you throw in a few thousand dollars from Uncle Sam.

Frequently Asked Questions About Home Warranties

2008-11-07T08:21:00.000-08:00

Article Provided by,
Bill Hurlbett, Sr. Account Representative
American Home Shield

What is a home warranty?
A home warranty is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of home systems and appliances.

Why do your clients need a home warranty?
For sellers, it can help their home sell faster. Home warranties offer added value to listings by increasing buyer confidence, helping the home stand-out from the rest. For buyers, home warranties help protect their new investment and help them avoid high repair and replacement costs on covered items.
What is a Trade Service Call Fee?
A Trade Service Call Fee is a small expense to the customer which is due each time a contractor comes to the home to diagnose a problem. The amount of your Trade Service Call Fee can be found on the back of the application. Additionally, the service fee amount may vary depending upon the number of trade service technicians requested for service.
Is everything in my home covered by the AHS Home Warranty?
No. While not everything is covered, we do offer coverage for many of the most frequently occurring breakdowns of home system components and appliances. Please review sample contract for specific covered items, terms and conditions, limitations and exclusions.
What if I have an appliance that just can’t be fixed?
If AHS determines your covered system component or appliance can’t be repaired by a service contractor, it will be replaced.
What out-of-pocket expenses will I have?
For each service request, you will pay a Trade Service Call Fee to each contractor of a different trade (plumber, electrician, etc.) who visits your home to diagnose a problem or perform service. There may be additional costs associated with the repair or replacement of covered items. Details will be included in your contract.
I'm selling my home. Why would I want a Home Warranty?
A Home Warranty helps give buyers additional confidence in the real estate transaction—they’ll know that Warranty Company stands behind the covered systems or appliances in the house. An added benefit is that it can also protect your home while it’s on the market which can help you avoid investing more money into a home you’re trying to sell.
My home systems and appliances are old. Does that matter?
No. The age of a home or its system components and appliances are not important. The covered items must be in good working condition and properly maintained at the time coverage is purchased.
Can a Home Warranty help resolve issues found on a Home Inspection?
Yes, many times a home warranty can help with issues found in a home inspection. If a covered system or appliance is found to be malfunctioning due to normal wear and tear a covered item may have coverage subject to terms and conditions of contract.
Is it important to ask for a home warranty when purchase a home?
Yes, especially in today’s economy. Many homes are in foreclosure or bank owned. A Home Warranty would be an excellent tool to provide budget protection for new home buyers.

How to make $30,000 in a Down Market!

2008-11-01T13:35:00.000-07:00

When the real estate market slowed, many people turned to the stock market thinking it was a safer place to be. That is not proving true. In the Portland area, housing values have dropped 10% - 15% over the past couple of years. Lately, some 401K’s have lost 5% in one day!
So, the perfect storm has been brewing for months. For two years the real estate market has contracted. Home values have become much more affordable. Now, the credit industry is loosening, courtesy in part to our $700 billion rescue plan. It is the perfect setup to unleash pent-up demand.
History shows that most of the world's largest fortunes have been created when everyone else was filled with fear. In fact, the two greatest fortunes in American history were created during times almost exactly like these. It was just after the stock market panic of 1873.I t started with a housing bubble, similar in cause and effect to the current one. The turning point was the failure of Philadelphia blue-chip bank Jay Cooke, similar to our Bear Stearns sale for $2 a share. Once the bank fell, the credit market locked up and nobody was lending money. Companies failed by the thousands. The economy was horrible, yet some businesses flourished.Companies that positioned themselves strategically and exploited the opportunities reaped huge rewards. John D. Rockefeller, who founded Standard Oil (the parent of nearly all the major U.S. oil companies), was able to buy out his competition at fire-sale prices. Andrew Carnegie, who built U.S. Steel and became history's second-richest man behind Rockefeller, did the same thing. These men converted their companies into empires. The years following the Panic of 1873 became the Gilded Age of Industry. I love the way Warren Buffet puts it. He says, "Be fearful when other people are greedy...and greedy when others are fearful." Like he says, now is your time to BE GREEDY!
Which bring me to how to make your $30,000. Do you know that it is very wise to buy up to a more expensive home in a down market? Yes, you may loose 15% on the $200,000 house you are selling ($30,000), but you may well pick up the same 15% on the $400,000 house you are buying ($60,000). (I can write your offer today!)
You see, it really is a good market. Values may be set back a couple of years, but it is still better than it was in the late 90’s and early 2000. If you don't plan to flip a house, but live in it for 5 years or so, this is the time to do it. It is a time of opportunity!

Installment Sales and the 1031 Exchange

2008-10-29T09:13:00.001-07:00

Submitted by,
David Moore
Equity Advantage, Incorporated
Today’s economic environment may require the use of a contract sale. A common misunderstanding of installment sales is their impact on a tax-deferred exchange. Since a note typically represents equity in a property and a 1031 Exchange requires all equity to be carried forward to be completely tax deferred, it is necessary to use the note in the exchange for complete tax deferral.
In order for a note to be used in an exchange, you, the Exchangor, must not have had actual or constructive receipt of the note. The note must be the Facilitator’s at settlement just as any cash must be.
The following are options available to you:

1. As the Exchangor, you can direct Equity Advantage to sell the note to a third party such as a bank, pension fund manager or a private investor. The proceeds from the sale of the note are then deposited with Equity Advantage. You will need to deposit additional cash to offset the amount that was discounted on the note for total tax deferral. If the additional cash is not deposited, you will have tax exposure on the difference between the note’s value and the discounted sale price of the note if any.
2. You, the Exchangor, use the note along with the cash to acquire the replacement property. The Seller of the replacement property now owns the note.
3. You, the Exchangor, purchase the note from Equity Advantage. The note has now been converted to cash and the exchange can be completed.
4. If the note is short term and matures inside the 180-day exchange period, it is possible to complete the exchange after the note is paid off.
5. Finally, if you are not concerned with deferring all of your taxes, you may choose a partial exchange, using only the cash proceeds in the exchange. The note will be considered “boot” and payments will receive installment sale treatment (Section 453). Depreciation recapture is due in the year the sale occurred.
Equity Advantage often receives requests to structure an exchange for a potential client that is about to receive a balloon payoff of a note they have been in receipt of. Unfortunately the taxpayor has had receipt of the note and therefore a future balloon payment will be fully taxable.
Understanding the motivation behind the sale and the use of the note often dictates the option chosen. A careful review of the options available and their tax consequences is critical, the taxpayor’s tax and legal counsel will be able to make the right decision given time and information.
David Moore
Equity Advantage, Incorporated
One Centerpointe Drive, Suite 300
Lake Oswego, Oregon 97035 Phone (503) 598-1031
(800) 735-1031 Fax (503) 619-0226 http://www.1031exchange.com
Tax Advice Notice: The above written material is general information and not tax advice. Please consult with your CPA and/or attorney for tax advice. Per IRS Circular 230 Disclosure, IRS regulations requires us to notify you that this communication was not intended or written to be used, by you as the taxpayer, for the purpose of avoiding penalties that the IRS might impose on you.

First Time Home Buyer Tax Credit

2008-10-27T12:06:00.000-07:00

What is it?

It’s a $7,500 tax credit for qualified first time home buyers purchasing homes between
April 9, 2008 and July 1, 2009. If the home purchase price is less than $75,000, the
tax credit will equal 10% of the purchase price. The tax credit is refundable, so the
buyer will receive the full credit even if it exceeds his or her tax liability. For many
people, this will mean getting a sizeable check from the government. Buyers can
even elect to have their qualified 2009 purchase count as a 2008 purchase so they
can claim it on their 2008 tax return.

The credit must, however, be repaid. It is structured as a zero-interest 15-year loan,
where the payments are added to your federal tax liability on an annual basis and your
first payment is due 2 years after the credit is claimed. For example, if you claim the
tax credit on your 2008 tax return, your first payment of $500 will not be due until your
2010 tax return is filed. If you sell your home prior to complete repayment of the
credit, the remaining credit amount will be due from the profit on the home sale; if your
profit is insufficient, the remainder of the credit payback will be forgiven.

You are eligible if:
• you (and your spouse, if applicable) have not owned a principal residence
within the last 3 years;
• your modified adjusted gross income (MAGI) does not exceed $75,000 if
you file as an individual taxpayer or $150,000 if you file a joint return (partial
credits are available for MAGIs up to $95,000 and $170,000, respectively);
• you are a U.S. citizen or you are not a nonresident alien; and
• you purchase a home as a primary residence and the closing occurs on or
after April 9, 2008 and prior to July 1, 2009.

Exceptions:

*If you stop using your home as your primary residence (i.e. converted to a rental or vacation home), all remaining installments become due on the return when that happens.
*If you sell your home, all remaining installments become due on the return for the year of the sale. The repayment is limited to the gain on the sale, if the home is sold to an unrelated taxpayer. If there is no gain, or a loss, the repayment may be reduced or maybe even eliminated.
*If you transfer your home to your spouse, as a result of a divorce settlement or otherwise, that person is responsible for making all subsequent payments.
*If you die, all remaining installments are not due. If you filed a joint tax return and then you die, your surviving spouse would be required to repay his/her one-half of the remaining payment.

Jennifer Cunnington
Senior Loan Consultant
(503) 699-6439 Office
(503) 358-1687 Cell
www.equityhome.com/jenniferc

For tax advice, please consult your tax advisor.

Oregon Property Tax - How it Works!

2008-10-23T19:08:00.000-07:00

What it does:
Property tax in Oregon helps support fire protection, police, education and other services provided by such local taxing districts as cities and counties.
Amount you pay:
This is based on two things, both of which have limits based on the Oregon constitution.
- the assessed value of your property
- the amount your district is authorized to raise
Assessment:
This is based on the lower market value. The tax assessor determines the real market value (RMV) and calculates the maximum assessed value (MAV). Your taxed amount reflects the lesser of these two which is the assessed value.
Real Market Value (RMV):
In general, RMV is the price a willing buyer would pay and a willing seller would sell on January 1, the assessment date used. The initial RMV is comprised of a physical inspection and a comparison of market data for similar properties. In following years since this determination, it is usually based on trends of like properties in the area.
Maximum Assessed Value (MAV):
MAV is the taxable value limit that has been established for each property. This was set in 1997-98 tax year. Then it was the real market value minus 10%. These can increase for two reasons only:

Amaximum 3% increase annually OR A specific property events.
1. Three Percent Increase: Subsequent to 1997- 89, MAV will increase 3% unless the RMV of the property is less than MAV for two years in a row. Should that happen, MAV will not increase in the second year. There are certain property events that can cause the MAV to increase more than 3%:
2. Property Events:

a. New property or new improvements to a property
b. A property is modified in any
c. If a bond measure is passed in your area
Property Tax Statements:
The tax year is July 1 through June 30. October is usually when both your value notice and your property tax bill arrive. This bill may include other taxes depending on services provided to your area. These other charges, taxes, assessments or fees may not be based on property value.
Payments:
- At least 1/3 must be paid before November 15th to avoid an interest charge
- Additional 1/3 payments must be made by February 15th & May 15th
- If you pay in full by November 15th, you receive a 3% discount
- If you pay 2/3 of the full amount by November 15th you receive a 2% discount on the amount paid
You will be charged interest for payments made after its due date (1.33% per month or 16% annually)
- Or, your taxes can be paid along with your mortgage payment
For more information, please check out the following links:
Washington County
Clackamas County
Multnomah County
Yamhill County
Oregon Property Tax Information

Yes, You CAN Buy a Home in Today’s Market!

2008-10-20T14:48:00.000-07:00

By: Jennifer Cunnington, Loan Consultant

If you’re like me, the stories about our economy in the news can be confusing. Is it the right time to buy, or should we wait until the bottom drops out? Is financing readily available? Well, the answer is…..YES! The reason? OPPORTUNITY. As a mortgage broker, I am asked these questions every day. Many buyers are “on the fence” and feel that the market will continue to decline, however, since interest rates have fluctuated, waiting may nullify any small additional savings in price and will postpone the realization of a the benefits of buying your home!

Just last week a client of mine contacted me before their loan was about to fund and asked if our lender was able to close due to recent news reports of many banks going out of business. Truth be told, there is still a plethora of financing options available today from stable institutions. Mortgages written today are more solid than ever, safe for buyers and lenders and interest rates for conforming mortgages are still at very reasonable, historically low levels. While it’s true that many of the looser and more extravagant options are on their way out, buyers are still able to obtain a variety of loans. The key is to employ a mortgage broker who is experienced, deals with stable lenders and will take the time to analyze your personal goals to find a mortgage that will meet your needs.

Please contact me to find out what I can do for you in today’s changing market! I look forward to helping you with professional service and results.

Jennifer Cunnington
Loan Consultant
Equity Home Mortgage, LLC
503-699-6439
jennifercunnington@equityhome.com
www.equityhome.com/jenniferc

Wondering where to live?

2008-10-17T20:19:00.000-07:00

Money goes further some places in the United States than it does in others.Housing, in particular, has remained most affordable in the South and the Midwest. That’s because of less stringent building, an abundance of land and growing populations in the South, says Daniel McCue, a research analyst at Harvard’s Joint Center for Housing Studies.To determine the cities that offer the best quality of life for the least amount of money, Forbes magazine calculated the ratios between a city’s median home price and its median household income. It also factored in projected job growth. And it compared median income to Moody’s Economy.com’s cost of living index.Here are the 10 cities that it found to offer the best value, and the cities that it believes offers the worst value.Cities Where Residents Get the Most for Their Money
Austin, Texas
San Antonio, Texas
Indianapolis, Ind.
Houston, Texas
Charlotte, N.C.
Columbus, Ohio
Dallas
Minneapolis/St. Paul
Denver
Portland, Ore.Cities Where Residents Get the Least for Their Money
Los Angeles
Providence, R.I.
New Orleans
Philadelphia
Cleveland
New York
Milwaukee, Wisc.
St. Louis, Mo.
Washington, D.C.
Sacramento, Calif.
Source: Forbes, Abha Bhattarai (10/10/2008)

The high road or the low road?

2008-10-12T19:47:00.000-07:00

I don't know about you, but I am really tired of listening to the news. All the negativity promotes fear and becomes a self-fulfilling prophecy if we let it. It is time to counteract all this, think positively and search out the facts from the experts in the local industries.

With so much happening, everyone has a myriad of common questions: Will the 'Rescue Plan' work? How will it affect me? Can I still sell my house? Will someone buy my house? Can anyone get a loan these days? These questions and more will be addressed on this Blog over the coming weeks.

In the meantime, it is wise to keep a positive outlook. The average person has between 12,000 and 50,000 thoughts a day with up to 80% constantly repeated and most of them negative. There are 1440 minutes in a day, which means there are 525600 minutes in a year, so let's not waste them.

There are various strategies to help manage your outlook:

Turn off the news. Repeated negative comments will destroy a positive attitude. Realize that much of the news is generalized. What is happening in Florida or California is not necessarily the case here in Oregon. Ask an expert his or her opinion.
Be careful who you associate with. Surround yourself with positive people. Nothing will bring you down faster than someone who only sees the negative side of something. RUN!
Simplify your life. If you are stressed and worried about what is happening, stop doing so much. Cut back. Clean up your surroundings. It helps to clarify your thinking.
Find a support group. This can be, but doesn't have to be a formal group. Just make sure you have like minded, supportive people to talk to. Don't isolate yourself!

Now that we have laid the ground work to a healthy outlook, we are ready to tackle the real news. Next article will address the health of the Portland Real Estate market.... which is healthier than you might think!

Introduction!

2008-10-10T21:32:00.000-07:00

This Blog was originally started a couple of years ago. There are some articles still posted that you might find interesting, so check them out as they still apply today.

The purpose in re-starting this is to have an avenue to answer questions and to give current updates concerning the Portland Metro Real Estate market. As you are well aware, things are changing too quickly for a newsletter to be timely.

This Blog will be updated once a week, so look for new information at the beginning of every week. At this point, the Blog will be informational. You are invited to submit questions to give me ideas of what you are interested in. It is my hope that you will find this as educational as it is interesting.

Many topics will be covered. There will be a variety of contributors including some of the following groups: Mortgage Lenders, Bankers, 1031 Exchange Experts, Escrow Officers and so forth. I do not claim to have all the answers, but will seek information from the best in the local industry.

Check out this Blog Monday, October 13th for a look at Portland Oregon Real Estate in light of the current economic crisis. In the meantime, turn off the news!

Buying a home? What's the big deal?

2006-09-13T13:00:00.000-07:00

The uninitiated, ie, most consumers, think buying and selling a home is a piece of cake. You put a sign in the yard and an ad in the newspaper and Bingo! Buyers gaily appear bearing gifts in the form of full price offers...or higher. You select the one suiting your needs, and wait for the closing, merrily counting all the money you've saved by selling your home yourself!

Hmmm...if that's the case, why, even in a seller's market such as in 2004 and 2005, did 83% of all sellers still use a licensed agent? Look at it this way. Would you try to invest $250,000 - $500,000 in the stock market without asking a professional financial counselor for advice? Would you operate on yourself? On a more mundane level, would you try to tune up your own engine on today's autos?

In my book "Risk Hotline for Real Estate" (www.riskhotline.com) I offer hundreds of examples of how important a REALTOR(r) is when buying or selling a home or investment property. NAR, the National Association of Realtors, cites numerous studies showing that sellers actually save money using a broker. My book gives many examples, but two of the most important are setting and negotiating price and once your home is sold, negotiating repairs. Unspoken in most transactions is the broker's ability to help you avoid making mistakes (especially when buying) that may cause you immeasurable grief later.

Now that we're in a buyer's market once again, this is more important than ever. Buyers will try to beat you down on price, knowing there are many other homes available for them to choose from. Buyers always assume you can deduct 6-7% off the asking price since you aren't using a broker. Buyers want your home to be in mint condition when they buy...so they won't have those repairs to worry about later.

Everyone assumes the selling and buying process will go smoothly. My partner and I have sold just one home in the past 3 years with no repairs or heavy negotiating required. The opportunities for pitfalls are too numerous to mention, though dry rot, water in the basement or crawlspace, underground oil tanks, leaky roofs, mold, manmade siding, floodplains, hillside erosion, and radon are a few to consider.

Call your REALTOR(r). You'll be glad you did.

Talk about a mixed market!

2006-09-08T14:21:00.000-07:00

RMLS' July issue of "Market Action" shows the Portland Metro area in a rapid state of flux. The supply of homes for sale jumped from 2.6 months to 3.5 months in the past 30 days. New listings are up over 11%, pending sales are down 21%, and closed sales are off 16.7%. Surprisingly, home prices over the past year jumped 17.4%, from $263,500 to $309,400. How can that be?

Simple. Last year saw record prices with homes "flying off the shelf." That momentum carried over into the first part of 2006. Home prices were up an average 5% in the firt quarter this year, but only 1% in the 2nd. Economists expect that 1% trend to continue into next year.

The Portland Metro supply of homes at 3.5 months is the highest it has been since February 2004 when there was a 4.8 month supply for sale. That figure last year stood at about 2.0 overall.

Sellers are still in that transitional stage when they still believe that even though the market as a whole has shifted more toward a buyer's market, THEIR home is still worth top price. It's sort of like "All members of Congress stink...except for MY Congressman."

Many buyers are now on the sidelines, waiting to see which direction the market goes before buying. Oregon is more fortunate than California, Arizona, or Florida, for example. They really are in a downslide. Our up and down swings have been far less dramatic, however, which economists will help us keep home prices on a gradual upswing in the next year, perhaps 4-5% annually.

Why it's important to have a Buyer's Service Agreement

2006-08-24T15:51:00.000-07:00

All sellers know that when they list their home for sale, they must sign a "Listing Agreement." This agreement commits the seller to give the listing agent an exclusive right to sell the home for for a specific period, say 120 days. In turn the listing agent commits to a fiduciary duty to his or her seller. What is a fiduciary duty?

Much like your attorney has a fiduciary responsibility to protect your interests to the exclusion of others so long as his actions are legal, the listing agent has the same fiduciary responsibility to the home seller.

An "Exclusive Buyer Service Agreement" commits the selling agent to the same fiduciary duty to her or his buyer for a specific period of time. In turn the buyer legally commits to purchase a home or investment property using that broker during that agreed upon time. If they buy a home without having their broker write the sale, they still owe their broker a commission.

Normally the seller pays the commission in a home sale. However, should the owner refuse to pay the commission (such as with For Sale By Owners), the Buyer Service Agreement says the buyer will pay the broker a specified fee based on either a percentage of the sale price (normally 2.7 to 3.15%); the buyer and broker might also agree to a flat fee of say $5000. If the buyer is paying the commission, negotiation for purchase need to take that into account and the offer priced accordingly, since the seller will thus gain that much more in his or her net proceeds.

How does this service agreement benefit the buyer? A lot of buyers never sign such agreements and still purchase a home using a broker. Under this agreement, the selling agent must make consistent efforts to find the buyer the type home the buyer seeks. Should the broker not be diligent in this effort (such as not personally contacting the buyer for one or two months), the buyer may not be liable to pay the commission should the buyer find a home on his or her own. This agreement helps the buyer psychologically also. When a broker knows he will be paid a fee for the effort he puts into finding a buyer a home (which can and often does take months), that agent will work even harder to meet his or her buyer's needs.

If you as a buyer trust your broker sufficiently to have her or him locate and assist you in purchasing a home worth hundreds of thousands of dollars, don't you think you should extend that trust to a formal commitment? The broker, knowing she has a higher standard of performance required under the Buyer Service Agreement, naturally puts even greater effort into finding you the right home...and equally important, in negotiating price, terms, and repairs on your behalf.

Importance of Comparative Market Analysis (CMA)

2006-08-22T12:18:00.000-07:00

It is critical that you perform a Comparative Market Analysis (CMA) when you sell or purchase a home. Why? To ensure the home is priced right. We are now in a tighter real estate market in which sellers cannot dictate price and terms any longer. Buyers are very cautious now, fearing a softening or even lowering of home prices.

Oregon's market has softened, but values continue to rise...although slowly. Other states, such as Florida, Arizona, and California, are in a real slump, with values falling 10-15% lower than last year. They had far too much new construction to handle the market in the past two years. Many sellers of existing homes felt they could continue to ask increasingly higher prices without regard for buyer sensitivity to the market. The result? A glut of homes for sale.

In any event, if a seller is too aggressive on price, buyers simply ignore the property. On the other hand, buyers want to ensure that they are not paying too much. A home market analysis helps both parties decide proper pricing.

In my book "Risk Hotline for Real Estate" (www.riskhotline.com) licensees stress the importance of "doing your homework." Your clients need it; mostly likely your company requires it. Definitely your real estate agency expects it.

Look at it this way, a CMA gives buyer and seller peace of mind that the selling/buying price is fair. It gives the listing and selling brokers peace of mind should the buyer or seller later claim the home was priced improperly. They have confirmation that this topic was covered thoroughly with their clients. Clients know that since the broker did perform this valuable service, they did not undersell or overpay.

Risks in broker representing both buyer and seller

2006-08-21T14:08:00.000-07:00

When you list your home with a broker, he or she will likely tell you that there might be a situation in which they would represent both buyer and seller. For example, you list your home and your broker gets a call from a buyer that he wishes to write an offer on the home. Your agent explains that he represents the seller, but the buyer insists that the agent represent him also.

This is legal in real estate, unlike being an attorney. The broker likes the idea because he doesn't have to worry about an offer coming in from an inexperienced agent. He has control over both sides of the sale in this instance. Most of the time this "dual agency" as we call it in real estate, works fine.

However, when it goes wrong, look out! If your clients get into a hassle over some aspect of the sale and they deem you, as "their agent," have goofed, you may find you've bitten off more than you can chew. Suddenly the agent goes from hero to goat in one easy step. Both buyer and seller are angry at him or her, and the agent loses not just one good client, but two. Equally likely, the agent may face sanctions from the real estate agency if his sin (negligence or misrepresentation) is serious enough.

In my book "Risk Hotline for Real Estate" (www.riskhotline.com) I discuss an actual situation related to me by another broker (p. 203). This agent sold his own listing, representing both buyer and seller. Since the buyers didn't have the cash to pay for a home inspection, the agent agreed to pay for it himself, since he was to receive both sides of the commission.

The inspector discovered major dry rot and an inoperable sump pump in the crawlspace. Cost of repair: $12,000.

The sellers were furious when they learned "their agent" had paid for the inspection without asking their permission first. On the other hand, the buyers thought he "walked on water."

As luck would have it, the seller's homeowner insurance paid for most of the work. However, the agent lost another listing a few months later when another family member sold his home.

Moral of this story: The broker may have violated his fiduciary duty to his seller. The seller was not angry that the repairs were necessary, just that their agent had broken trust with them by not asking for their approval of his paying for the inspection.

A major theme in my book is showing buyers and sellers how they can be more pro-active on their behalf and understand more about the intricacies of buying and selling a home.

"Risk Hotline" advice about home inspectors

2006-08-18T05:56:00.000-07:00

For licensees and customers alike, this is a critical phase of the home buyer/selling process...probably THE most critical phase. In my book "Risk Hotline for Real Estate (www.riskhotline.com) I cover this aspect of the home sale or purchase in several chapters.

For sellers...I strongly recommend you have your own home inspection prior to listing your home, or if you must list right away, have this inspection immediately. It will cost you about $400 but can save you thousands.

Suppose you do not have your home pre-inspected. You negotiate a sale price that you feel isn't as good as you wanted but can live with. Then the home inspector finds $2000 in repairs you had no idea were there. Suddenly your net profit has taken a major hit because you didn't know about problems ahead of time.

Having the pre-inspection and making the repairs before sale gives you the edge in two ways: (1) you know about your problems before the buyer does and can correct them, and (2) the buyer knows you have been pro-active in presenting your home in its best manner, giving the buyer confidence they are making the right decision in purchasing your home.

For buyers and sellers: Do not select a home inspector solely because your brother or next door neighbor used that inspector. Speak to two or three inspectors just as you would when selecting a broker to list your home. Two requisites I recommend are: (1) Be sure they are computerized so they can give you a legible copy of the inspection. Inspectors who still hand-write their reports often write so poorly you can't tell what they've said, requiring endless phone calls to get it right. (2) Be sure they take digital photos of problem areas. This benefits you and the seller because you can both see problems and deal with them more amicably.

Oregon Buyers Advisory in "Risk Hotline"

2006-08-15T21:33:00.000-07:00

In my book "Risk Hotline for Real Estate...Learn from actual agent experiences before they happen to you," one of the most important topics I cover is the buyers advisory. Why? Because it is a very important way to reduce risk when buying or selling a home, and for licensees, in reducing business risk.

This document is a detailed source of information about purchasing real property. Jenny Pakula, deputy CEO/staff attorney for the Oregon Association of Realtors says, "Everything a buyer could want to know, would want to know, needs to know about a real estate transaction is in this advisory."

This important document covers over 21 topics, including agent responsibilities to the buyer. If it is this important to the buyer, it is of equal importance to the seller, simply so the seller will know what the buyer will be looking for.

The advisory covers such topics as mold, dry rot, underground oil storage tanks, wells, remodeling, neighborhood crime, and much more. In short, says Pakula, it provides "a myriad of documents that could surface in a real estate transaction."

The Oregon Buyers Advisory can be found online at www.oregonrealtors.org. Be sure to click on the "legal" icon itself, not the sub-icons that will pop up. OAR updates the advisory periodically to keep it current.

(The Oregon Buyer Advisory can be found on pp. 149-160 in my book.) You can look up this topic and many others in my book online at Amazon.com.

Hiring a Contractor - Use caution

2006-08-14T09:32:00.000-07:00

NBC's "Dateline" news program had a poignant story on contractors last night which prompted me to write the following caution this morning.

NBC told of two California contractors who had been hired to build or remodel different homes. The owners had paid the contractors hundreds of thousands of dollars to get their work underway. Both contractors got "upside down" as one put it. He took the owners' money but either spent it on his personal bills, or to keep another project going, which he was also "upside down" on. He ultimately declared bankruptcy.

The second contractor simply took that owner's money and left their home in an incomplete condition; worse, he had not properly performed his construction and it had to be torn out and redone.

To add insult to injury, each homeowner was sued by the project's subcontractors and materials providers whom the contractor had not paid. In other words, the homeowners had to pay for the same service twice (plus attorneys fees for fighting all the claims).

These owners made the same mistake thousands of us do each year. Someone refers a craftsman to us and we simply accept that recommendation without doing our own due diligence.

Anytime you hire a contractor, take these steps at a minimum:

1. Get the contractor's license number and call your state contractors board
to see if he/she has any complaints filed. Sometimes the state will only have
knowledge of a complaint. Dig deeper; ask the state for names and contact
information on the complainants. Ask the contractor for an explanation. If
he makes the complaint seem trivial, ask him for the name and number of the
complainant(s) to confirm his statements.

2. Ask the contractor for references. Call those owners and ask if the contractor
was timely, thorough, and clean.

3. Once you select your contractor, make your checks payable to both him and the
subcontractor/materials provider. That way, you won't end up like the owners
above with double billings for services and materials. Be sure the contractor
gets a building permit for the project and that the local inspectors approve
his/her work (foundation, electrical, plumbing, etc) as the project proceeds.
Don't assume the inspectors will automatically do their duty - I heard of a
new home in which the contractor had failed to install attic insulation. The
owner discovered it during winter months when her heating bills skyrocketed.
No inspection had ever been performed.

4. Never give the contractor more than 10 percent down. Then make the payments
in increments as the contractor proceeds.

5. Oregon requires all contractors to pay a $5000 bond in the event they have
complaints filed against them. This bond helps only in small claims...thus
the importance of being diligent in your own investigation of the contractor.

Home warranties boost sale price

2006-08-13T17:47:00.000-07:00

RE/MAX Equity Group, Inc. in Oregon recently commissioned American Home Shield (AHS) to conduct an independent survey. The survey was to learn the effects of AHS home warranties on a home's listing and sale price as well as the time it took to sell the home.

The purpose of this study was to see if a home would sell faster and for more money if it had a home protection plan on it. AHS used a 3d party - Cannon and Company, CPA firm located in Memphis, TN - to guarantee integrity in the survey.

What did the survey report:

1. The median list price of homes with a home warranty was 15% higher than those
with no home warranty.

2. Homes with a home warranty sold for a median price of 14% greater than homes
with no warranty. Specifically, homes with warranty sold for a median price of
$220,000 while those with no warranty sold for $193,000.

3. Homes with a warranty sold in 63 days on median average while those with none
sold in an average 72 days.

Jane and I are among the few who provide a home protection plan for ALL of our
clients. We recognized long ago the value of this service to our clients.

Risks in selling "For Sale by Owner"

2006-07-17T11:27:00.000-07:00

Unless you just returned from being marooned in Borneo or were on a Yak expedition in Tibet, you're no doubt aware that our real estate market nationwide has bounced around from being red-hot to currently luke warm.

This uncertainty creates a lot of concerns by sellers and buyers alike. What is a home really worth? What offer should I accept? What if I get more than one offer? What is an escalation clause? What are my risks in accepting an offer with an escalation clause? How can I be sure my home will appraise at the agreed upon sale price? Do I lose my sale if the house does not appraise?

What happens if my buyer is not pre-approved? Does "pre-approved" really mean the buyer is fully approved to buy my home? What happens if I accept an offer and the buyer then comes to me with a long list of repairs from the home inspection? Do I have to make the repairs? Does the sale fall apart if I don't make them? What information do I need to keep the buyer from sueing me later if he finds something I didn't disclose? The list is almost endless.

Answers to such questions are critical to the successful sale of your home. A real estate attorney or an experienced real estate team can answer those questions and more.

New Central Air and Heat Pump Regulation

2006-07-17T10:27:00.000-07:00

As of January 2006 the US Department of Energy requires stricter energy efficency in all heat pumps and central air systems. In an effort to boost energy efficiency by 30%, all newly manufactured air conditioning and heat pump systems are now required to be 13 SEER ("Seasonal Energy Efficiency Rating") or greater. In previous years the standard was 10 SEER.

One outcome of the new 13 SEER standard is that they are twice as large as 10 SEER units. Therefore they will need larger pads and will take up more space in warehouses and delivery trucks. It also means they may require more than one person to install. This means of course more man-hours and higher costs to both contractors and consumers.

There is an excellent way to avoid these potentially higher costs…a home protection plan. Such plans protect all the major components in your home, such as the furnace, air-conditioner, water heater, electrical, plumbing, and more.

Let us know if you wish more information on this topic.

The Power of Compounding

2006-07-17T10:10:00.000-07:00

Mortgage interet rates are low but heading higher. Suppose you wish to increase your mortgage payment to reduce your dept faster. Let’s see how much interest you would save if you paid off your loan sooner.

Let’s assume you have a $300,000 mortgage at 6% interest-only on a 30-year note. Your monthly payment is approximately $1799.00 on a 30-year interest-only note. The interest paid over 30 years is about $347,000. Add that to the $300,000 purchase price and you have a total of $647,000 into the total payment.

However, if you increase your monthly payment just $100 to $1899.00, you will reduce your payment term by 4 years and save $70,000 in interest. If you boost your payment by $200 to $1999 per month, you will shorten your payment period by almost 7 years and save almost $120,000.

Some precautions to take…ask you lender if you have a pre-payment penalty on your contract, and talk to your CPA or real estate attorney about tax consequences.

How to select a good REALTOR(r)

2006-07-17T10:06:00.000-07:00

Your first order of business is to select first-rate Realtors(r) who are knowledgeable about the area in which you wish to buy or sell. If you are selling, your agents should be enthusiastic about your home (believe me, if they are not, you'll hear it in their voice or manner). You want agents who are truly enthusiastic about your home. Conversely, don't hire "yes" persons. You want agents who are willing to warn you about issues that may hurt your chances of selling at top price.

For example, my partner and I always recommend our sellers hire a professional inspector to learn about serious problems before putting your home on the market. That way, if your home needs a new roof or has water in the crawlspace, you can correct it and turn a negative into a positive.

This positive action helps you in two ways: (1) You may be able to account for that cost of repair when bargaining your sale price. (2) Eliminating a problem ahead of time gives the buyer confidence you are trying to present your home without serious issues. We also offer great tips on how to minimize cost and maximize profit.

If you are buying a home, you want brokers who are keenly aware of matters that can hurt you as a buyer. For example, can they provide you with testimonials from former satisfied clients? Select agents who recommend a home inspector who (1) is computerized and (2) takes pictures of problem areas. Seeing is believing when you're asking a seller to replace a roof or repair dry rot in the crawlspace.

Portland Oregon Real Estate

2006-07-15T13:17:00.000-07:00

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