Real Estate Information Archive

Good Monday Morning!

Today while the inventory of homes is low, I see buyers panic buying at times.  This does not always lead to the buyer getting the best house or even a house that will meet their needs.  If you are in the market for a home, take your time.  This might mean missing out on a few homes, but in the long run your patience will pay off.  Also, know what you are lookng for and think the process out.  Here is a checklist of things to think about when choosing a home.

If you're in the process of buying a house or are getting ready to, you may be overwhelmed by all the possibilities - and all the details. It can be easy to lose sight of some of the things that are important to you when you're seduced by pretty countertops or kids playing out on the street. Making a checklist of those must-haves will help keep you on track.

Is the bedroom count and general floorplan workable? You may be tempted by a house that's nicely staged and has that elegant-yet-warm feel you want. But look beyond the furnishings to make sure what you need is what the house has.

Is there a place for your dogs to hang out? And is there a place for the dog bowls to go? This only seems like a little thing until you're moved in and are constantly tripping over their food. When the dogs are part of your life, you'll want the house to accommodate them, and you.

Is there a place for your kitchen garbage can? See above. This "little thing" will drive you crazy. Is it enough to keep you out of the home? Probably not, but it's worth noting for situations where you can't decide between a couple of homes. It might be the little things that make the difference.

What direction does the house face? Facing west is great when it means you get to watch the sunset every day. It's not so great when it means your electric bill costs as much as your mortgage from May to September because your air conditioning is running 24–7.

Where are the structural walls? If you're planning an extensive renovation, it might be a good idea to bring in an engineer to make sure the walls you want to remove won't bring the house down.

Is there enough pantry space? A poor kitchen layout, and one that isn't easily remedied by a renovation, is a deal killer for many people.

What shape is the floor in? Look carefully. Replacing floors can be a big and expensive undertaking. Even if you have an inspection and the floors are in decent condition, they may not match your style. It'll be up to you to decide if you can live with them.

Where's the nearest Target? If location is important to you and the house you're looking at is over the mountain and through the woods, think hard about what you're willing to compromise. It might be that you start to hate being so far removed from amenities once the shine of a new house has worn off.

Where is the nearest Starbucks? Not a coffee drinker? Doesn't matter. The "Starbucks Effect" means higher home appreciation if you live within proximity.

Is there an HOA? This is important to know if you're looking to paint your home purple and display your collection of flamingos on the lawn.

How are the schools? Even if you don't have kids and never plan to, a good school district is important to home values. Pay special attention to the possibility of being rezoned. This happens quite often in growing areas, and, while you won't always know what's going to happen in the future, impacted schools and districts and chatter about coming changes might give you reason to pause.

What are the acoustics like? If there's a ridiculous echo coming from the upstairs bonus room, think about what that's going to sound like with two young kids playing.

Is the wiring what you need? If you need your home to accommodate all the latest technology, you may have some extensive rewiring to do. Checking it out before you buy will help you feel confident you can achieve your goals.

How's the yard space? Too little, or too much, space can make the day-to-day living less than ideal.

What's the neighborhood makeup? Seeing a lot of young couples on the street? Or maybe it's mainly older couples you're seeing. Spending a little time in your neighborhood you're considering can tell you a lot about who your neighbors could be, and whether you'll fit in.

Are there sex offenders nearby? Unfortunately, checking to make sure the people around you are decent is a reality today. Family Watchdog allows you to enter an address and see if there are any sex offenders in the area.

Did you schedule an inspection? You may be tempted to buy a home as is, especially in a hot market, but if you forgo an inspection, you'll be on the hook for any issues that arise with the home down the line.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1471 Barrington Ave

Price: $575,000    Beds: 5    Baths: 3    Sq Ft: 3756

Luxurious and grand! Great room with surround sound speakers, Brazilain cherry hardwood floor & gas fireplace. Huge theater/bonus room prewired for surround sound. Open kitchen with cherry stained cabinets, island, LED under & above cabinets & toe k...
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Good Monday Morning!

Right now the Real Estate market in the Eugene and Springfield area is highly competitive.  Record low mortgage interest rates, a renewed interest in our area from out of state buyers and an extremely low inventory of homes for sale has made our current market very challenging for buyers.  The following is an article from "Realty Times", that gives some advice to anyone attempting to purchase a home during our current competitive home market.

Everyday I hear real estate agents say how baffled they are because their Buyers keep losing the house they want to buy due to a multiple offer situation. I feel empathy for Buyers who have spent several weeks or months searching for the home of their dreams, only to find out there are five other people trying to buy the same property. It can be downright frustrating, not to mention time consuming and the emotional roller coaster ride you must feel like you are constantly on.

If you are lucky enough to not be in a multiple situation and having to compete with other Buyers for the home you want to purchase, these items can still guide you on how to make the offer attractive to the Seller.

So, how do you make an offer on the house and actually beat out your competition and get it accepted?  It can be challenging, but there are some tricks to the trade.  As a listing agent, I receive multiple offers on the majority of homes that I list for sale.  My last listing, I received 31 offers.  Did my seller pick the highest price?  No.  There were other factors that were taken into consideration during the decision process.  As an agent representing the Buyer, I have been in situations where we had to compete with other Buyers and we won and it wasn't because we were the highest bidder.  So, how can you make a successful offer on a home?

GET PRE-APPROVED FROM A REPUTABLE MORTGAGE LENDER

A true pre-approval from a lender means that you have provided to that person all your personal financial information and that lender has given said information to an underwriter for approval with the only remaining criteria being, that the home appraises and title is clear.

Why get pre-approved?  It shows the Seller that you are serious and are prepared to purchase his/her home.  Once your offer is accepted, the home is removed from the market and not available to any other Buyers.  So, if the Seller is going to remove his home from other eligible Buyers, it better be for a good, solid Buyer who can go to the closing table without delays from the mortgage lender.

 

CHOOSE AN EXPERIENCED REALTOR TO WORK WITH

This is a large purchase, and I know that sometimes you can get pressured to use your cousin or friend who has their real estate license, because we are all the same, right?  No way!  I always remember the saying...the heart surgeon who graduated at the top of his class is the same as the one that just made it by the the skin of his teeth.  Which one would you pick to do your surgery if they cost the same?  Knowledge from an good Realtor can save you money and help you get the house that you really want.  

DON'T LOWBALL THE SELLER

Before you submit your offer, your agent should have pulled comparables (sold properties in the same area), discussed average days on market for your area and provided you with an estimated sales price of the home that you are about to put an offer on.  If everything comes back acceptable, meaning the house is priced in line with recent sales and there are no signs of delayed maintenance, then it comes down to what you offer.  If the house is priced accordingly and in good repair, offering 25% below asking price to see what the Seller is going to do, is probably going to insult the Seller.  Your result may be a flat out rejection with no counter offer.  What Buyers don't think about,  while you are trying to see how low the Seller will go, you leave the door open for other Buyers to kick you out of the deal.  Now, that doesn't mean you have to pay full price, but the numbers don't lie. That house will sell between the historical sales shown to you.  The Seller and their agent know this.  Unless, you are in a market that is starting to decline, you may get lucky.

PUT A HIGHER AMOUNT DOWN FOR ESCROW

Depending upon where you live, escrow may be called earnest money.  Earnest money is a good faith deposit that basically tells the Seller you are serious about purchasing their home.  The higher the amount, the more skin you, the Buyer, has in the game.  Remember, the Seller is looking for a sure thing.  They want to close with the first Buyer, not the third.  Putting more money down as escrow tells the Seller you are less likely to default or risk losing your money.

Earnest money is credited to you at the closing table.  You do not lose that money if you close.

HAVE YOUR LENDER CALL THE LISTING AGENT

The lender that calls the listing agent, who represents the Seller, and explains that the Buyer is a solid Buyer, credit has been pulled and jobs have been verified, just helped the Buyer move to the front of the line.  Having the lender contact the listing agent does two things.  First, it introduces the lender to the agent, who in turn meets with the Seller.  Second, that agent will and advise the Seller which offers he/she thinks will close.  In addition, competency from a mortgage lender is reassuring and allows the Seller to make an informed decision.  There have been several times in my career that the Seller has not accepted an offer due to the questionable loan approval the Buyer presented and the fact we could not reach the mortgage lender to verify. 

BE FLEXIBLE WITH THE CLOSING DATE

When making an offer on a house, there are factors to consider about the Seller,  many that may not be disclosed before the offer is written.  If the Seller needs time to find another place to live or is moving across country, being flexible with the closing date may mean more to the Seller than having a higher dollar offer.  I often call the listing agent before sending over the offer and explain that if the Seller needs more time to exit, the Buyers are flexible with the closing date.  This puts less pressure on the Seller during the moving process, which may be what they need.

SHORTEN YOUR INSPECTION PERIOD

There are several times in the contract where the transaction can go sour for the Seller and one major hurdle that Seller must get past is the home inspection.  By shortening your time frame for the inspection process, this limits the window of opportunity for you to withdraw from the transaction.  You may even write into your offer, that you are looking for major defects only in the home and anything less, you are willing to accept up to a certain dollar amount.  This will reassure the Seller that you are not going to walk or ask them to repair a laundry list of small items.

MEET THE SELLERS

This can be a good idea and sometimes not.  If you really want the house, when you go to view it, ask if the Sellers can be there.  Even if it’s just for a few seconds before you really view the house.  Putting a level of humanity into a transaction can go a long way.  Isn’t that true for a lot of different circumstances?   The last home I bought, I met the Sellers and not only bought the home, but probably got a better deal because I was able to compliment them on all the work that they had done.  I did not give away the fact that I was in love with the house and probably would have paid full price.  I just acknowledged what a good job they had done.  Being kind and grateful can go a long way, and perhaps save you a few dollars too.

Making an offer on a home and getting it accepted can entail other elements of the purchase agreement and not just the money.  However, if you still find that you are consistently getting out bid for a home, consider my last alternative....

RAISE YOUR OFFER AMOUNT-ODD NUMBERS

I am not an advocate for recommending Buyers to overpay for a home.  However, there may be times where a home is priced below market in anticipation of getting multiple offers and having the market dictate the outcome.  As an agent that has represented quite a few Sellers, I have done this many times and it works.  So, let me tell you the secret of making an offer on a house during a multiple offer situation.  After comparables are given to you and you know that the home is priced below market, come in close to market value with an odd numbered offer.  Meaning, most people think in terms of even numbers, right?  So, instead of writing an offer at $255,500 for instance, write the offer amount at $257,660.   I have seen Buyers win the offer by $50.  Overpaying for a home, if you are getting a mortgage may mean not passing an appraisal.  This is where hiring that experienced agent truly pays off in really knowing the market values of your desired area.

Understanding that there are steps to making an offer, or a framework, will guide you through the process.  Having good communication with your Realtor is a must and don't be afraid to ask questions.  This is your time and your money.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3381 Arlington Ave

Price: $485,000    Beds: 3    Baths: 2    ｽ Baths: 1    Sq Ft: 2247

Exquisite single level home in beautiful Hawthorne Estates. Custom built home in like new condition. Top-of-the-line upgrades such as Brazilian cherry & granite, high ceilings, recessed lights, gas fireplace, wide halls & grand entry door. Escape to...
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Good Morning!

Homeownership has always been the "great American dream". Here is an article from "Realty Times", that talks about some real monetary advantages of home ownership.

To foster and encourage this dream, Congress has consistently enacted tax legislation which favors homeowners. Indeed, much has been written that our tax laws discriminate against renters, by giving unfair and unequal tax benefits to those who own homes.

Every four years, some candidate for high political office tries to focus our attention on equalizing the tax laws, and repealing the homeowner benefits, but these arguments have consistently fallen on deaf ears. And this coming election year is no different.

For those of us who own homes, here is a list of the itemized tax deductions available to the average homeowner. Every year, you are permitted to deduct the following expenses:

TAXES. Real property taxes, both state and local, can be deducted. However, it should be noted that real estate taxes are only deductible in the year they are actually paid to the government. Thus, if in year 2015, your lender held in escrow moneys for taxes due in 2016, you cannot take a deduction for these taxes when you file your 2015 tax return.

Mortgage lenders are required to send an annual statement to borrowers by the end of January of each year, reflecting the amount of mortgage interest and real estate taxes the homeowner paid during the previous year.

MORTGAGE INTEREST. Interest on mortgage loans on a first or second home is fully deductible, subject to the following limitations: acquisition loans up to $1 million, and home equity loans up to $100,000. If you are married, but file separately, these limits are split in half.

You must understand the concept of an acquisition loan. To qualify for such a loan, you must buy, construct or substantially improve your home. If you refinance for more than the outstanding indebtedness, the excess amount does not qualify as an acquisition loan unless you use all of the excess to improve your home. However, any other excess may qualify as a home equity loan.

Let us look at this example: Several years ago, you purchased your house for $150,000 and obtained a mortgage in the amount of $100,000. Last year, your mortgage indebtedness had been reduced to $95,000, but your house was worth $300,000.

Because rates were low last year, you refinanced and were able to get a new mortgage of $175,000. Your acquisition indebtedness is $95,000. The additional $80,000 that you took out of your equity does not qualify as acquisition indebtedness, but since it is under $100,000, it qualifies as if it was a home equity loan.

Several years ago, the Internal Revenue Service ruled that one does not have to take out a separate home equity loan to qualify for this aspect of the tax deduction. However, if you had borrowed $200,000, you would only be able to deduct interest on $195,000 of your loan -- the $95,000 acquisition indebtedness, plus the $100,000 home equity.

The remaining interest is treated as personal interest, and is not deductible.

POINTS. When you obtain a mortgage loan, some lenders will allow you to pay one or more points to get that loan. The more points you pay, the lower your mortgage interest rate should be. Whether referred to as "loan origination fees," "premium charges," or "discounts," these are still points. Each point is one percent of the amount borrowed; if you obtain a loan of $170,000, each point will cost you $1,700.

The IRS has also ruled that even if points are paid by sellers, they are still deductible by the homebuyer. Points paid to a lender when you refinance your current mortgage are not fully deductible in the year they are paid; you have to allocate the amount over the life of the loan. For example, you paid $1700 in points for a 30 year loan. Each year you are permitted to deduct only $56.66 ($1700 divided by 30); however, when you pay off this new loan, any remaining portion of the points you have not deducted are then deductible in full.

Needless to say, if you have any questions about these tax benefits, discuss them with your financial and legal advisors.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

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Good Monday Morning!

Even during this time of a strong Real Estate market in the Eugene and Springfield area, there are homes that hit the market and fail to sell.  The primary reason for homes not selling in any market is pricing.  Homes that are priced above their competition will sit and be looked at, but may not get offers and typically will not sell.  One of the primary factors that effects the value of a home is it's condition.  Here are some ideas as to how to upgrade the condition of your home to get a higher sales price.

When it comes to looking at houses, we do tend to judge a book by its cover. That’s why it’s so important to make sure your home looks as appealing as possible, both inside and out, if you want to get top dollar when you sell. U.S. News & World Report talked to real estate experts, who said these home improvements will help boost your selling price.

Improve your landscape. Keep your lawn neat, trim the bushes, clear out any old or tired-looking shrubbery and replace with new ones, add color with potted plants or garden beds, and top everything off with a fresh layer of mulch or rock.

Spruce up your entryway. Paint the front door or replace it, and update your house numbers and mailbox.

Change out light fixtures and plumbing fixtures. Replacing outdated fixtures with more modern ones gives your house an instant lift.

Return rooms to their original uses. If you use the extra bedroom as an office, turn it back into a bedroom.

Replace dirty or worn carpet. Prospective buyers can tell the difference between new carpet and cleaned carpet, and often, cleaning it just isn’t enough. If you have hardwood floors underneath the carpet, your best bet might be to refinish them and forego carpet completely.

Remove window treatments, unless they are current and high-end. Your window treatments probably won’t match a prospective buyer’s décor, so you’re better off removing them. Plus, uncovered windows let in more light.

Depersonalize. House hunters want to imagine themselves in your home, so remove obvious and identifying personal items, like photos and knick-knacks.

Clean thoroughly. Make every inch of the house sparkle and shine by deep cleaning it. And then think about hiring a house-cleaning service to do it, too.

Paint every room. A fresh coat of paint in a neutral color appeals to everyone. It freshens up the house, making it look newer and more modern.

Consider replacing textured ceilings. For some buyers, popcorn ceilings are a deal-breaker. If your home was built before 1979, the ceilings could contain asbestos, so you would need to hire a professional to remove the texture. If it’s a newer house, you can scrape the ceilings yourself or, if your ceilings are high enough, you could just install drywall over them to create new ceilings

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2685 Valley Forge Dr

Price: $524,900    Beds: 3    Baths: 2    ½ Baths: 1    Sq Ft: 2302

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