Real Estate Information Archive

Good Monday Morning!

Here are the residential home sales numbers for October of 2014.  October was one of the best sales months in the Eugene and Springfield area in years.  Note that the inventory of homes currently on the market for sale has declined to 3.8 months of active inventory.  This is also the lowest inventory of homes actively for sale that we have seen in many years.

If you are considering the sale of your home, I have one word of advice and that is to get your home on the market," NOW"!  Take advantage of the low inventory and lack of competition.  It won't last!

393 Lenore LOOP Price: $249,000 Beds: 3 Baths: 2 Sq Ft: 1649 Pristine & brand new! This beautiful home offers spacious entry, laminate wood floors, granite counters, vaulted ceiling, gas fireplace & Great Room. Dining area with slider, kitchen with stainless steel appliances, island, eating bar & recessed lig... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Now that we are well into Fall and the weather has certainly changed, it is that time of year to make sure that your home is prepared for the weather ahead.  Here is an informative article from Realty Times that gives you some great inofrmation on winterizing your home.

April may bring showers, but winter weather can bring all sorts of other unexpected and expensive damages to your home. Fall's cool temperatures are a reminder that winter days are on their way - take stock of what you may need to do to prepare your home beforehand, and you'll be ready for the onslaught of ice and snow. Here are several simple, cost-effective tasks you can do now to make the transition into the colder months easier.

1. Clean Out Your Gutter

Once the leaves are off the trees it's time to clean out your gutters. Poorly maintained gutters can damage the roof of your home as well the exterior. When snow and ice mix with clogged gutters, it's a recipe for disaster, inside and out. Leaves and debris will prevent moisture from running off the roof, resulting in ice dams and water leaks. Before flurries form make sure to clear out any waste that's accumulated, and also be sure to note any missing or broken pieces and have them repaired. Remove potentially hazardous branches, or structurally unsound trees that could pose problems under the weight of snow or in the midst of a dangerous windstorm.

2. Have Your Heating System Checked

You don't want to be the person waiting in the frigid cold for a repairman to come when your heater stops in the dead of winter. Instead, have an inspector come in and make sure that the system is well ventilated and running smoothly before the first cold snap hits. Inspections generally run between $70-$100. If you live in an area where winter storms consistently knock out both electricity and heat, consider investing in a small generator. Learn more about what you can do to ensure that your system is operating properly, and give yourself time to make any needed repairs before winter comes and the heating companies are overbooked.

3. Have a Snow Preparedness Kit

It's happened to all of us. Waking up to discover a solid two feet of fluffy white snow layering the ground, only to realize that we've just got one old, dull shovel to dig ourselves free. Before stores are bought out of the necessities, make sure you have everything you need in case of a blizzard:  a shovel, flashlights with extra batteries, one or two bags of road salt to coat the driveway, sidewalk, and walkways, and an ice scraper or two. Keep an emergency kit in a designated spot, and when you awake and find yourself trapped in a winter wonderland, you won't be stuck trying to come up with new and inventive ways of unearthing your car tires.

4. Reverse Your Ceiling Fans

Ceiling fans aren't only useful in the summer months. If your fan has a reverse switch, you can keep your home extra warm in the winter by reversing the cycle of the blades. Having the blades rotate in the opposite direction will create an updraft. Since heat rises, this pushes the hot air down and re-distributes it throughout your house. It's especially useful for homes that have high ceilings.

5. Caulk Doors and Windows

In the depths of winter the average home can lose nearly one third of its heat through drafty windows and doors. If the gap between your windows and doors is greater than the width of a nickel, it's time to reapply some exterior caulk to prevent this heat from escaping. Silicone caulk is highly recommended due to its non-shrinking quality and impermeability to the harsh elements. Block drafts from coming under doors with "draft dodger" door stoppers. You can easily make your own at home. Taking these extra steps will ensure that when the temperature drops, the cold and unforgiving air will stay outside where it belongs, and save you any money you'd be spending on additional heating.

Have An Wesome Week!

THIS WEEKS HOT HOME LISTING!

393 Lenore LOOP Price: $249,000 Beds: 3 Baths: 2 Sq Ft: 1649 Pristine & brand new! This beautiful home offers spacious entry, laminate wood floors, granite counters, vaulted ceiling, gas fireplace & Great Room. Dining area with slider, kitchen with stainless steel appliances, island, eating bar & recessed lig... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

It can be bittersweet to begin the selling process. Your home is where your life happens, where you have made memories over the years with family and friends. Perhaps now though, you are feeling as if your home has lost its spark. Maybe it's time to say goodbye. 

How do you know when it's really over? 

1. It doesn't help with the housework.

How are you supposed to keep the yard looking nice when the massive shade trees are starving the lawn? Or the two-story stone fireplace that used to be white is now more of a yellowy-beige?

Your house should be helping you out instead of making it more difficult.

2. It's in need of a makeover.

Broken down, randomly working dishwasher. Sticking doors. Warping floors. Sometimes it seems like the walls are actually rejecting paint. Is that even possible?

3. No matter how much you do for it, it's never enough.

As soon as you fix one thing, another one breaks. It's like it's trying to tell you something (It is; it's telling you to move!).

4. It doesn't make you feel sexy.

The shower water smells like dirt and it gets so humid in the bathroom it takes 30 minutes to clear the mirror. Even if you were feeling flirty, you couldn't get a good glance at yourself to make sure everything looks like it should.

Plus, you smell like mud, and that's a definite mood-killer.

5. It talks back.

If pipes that are way overdue to be replaced make embarrassing noises any time you flush or wash, you've got a back talker. And that's no good.

6. It's disrespectful.

The light in the living room flickers for no reason, no matter how many new bulbs you give it. Has it occurred to you it's just trying to get a look up your skirt?

7. All it does is sit around.

Those other houses do stuff. They turn on and off lights. They help you set the air conditioning. Considering it takes four hard slaps on the wall and a good stomp on the floor by the air conditioning unit just to make it pop on, this kind of upgrade may be out of the question. Or at least out of your budget.

8. You're drawn to another.

You're not a cheater. But you find yourself, well, looking at others lately. Driving down other streets and maybe lingering a little too long. Thinking about what life would be like if you lived there.

Maybe the grass really is greener.

And maybe your house would appreciate someone who appreciates it. Maybe it's just not that into you.

So cut it loose. Set it free. Set yourself free. Divorce that house. Your castle awaits.

Article originally written on RealtyTimes

Good Monday Morning!

The housing market in the Eugene and Springfield area remains very stable at this point.  There are some slight variations from month to month with the number of sales and months of inventory, but overall the market remains steady.  Home prices are also remaining fairly steady with the price of home continuiing on a slow, but steady growth curve.  Here are the numbers for Lane County home sale activity from the month of August 2014.

2535 PIERCE ST Price: $359,000 Beds: 3 Baths: 3 ½ Baths: 1 Sq Ft: 2359 Amazing gem in the hills! Beautiful city view from above! Enjoy serenity and privacy while nestled in the trees! Great room layout, recessed lights, skylights, travertine tile floors, vaulted living room ceiling, 2 decks. Granite counters in kitchen... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

Depending upon your stage in life and your economic position, the size of home you purchase can be a large consideration.  This article from "Realty Times" gives some insight into making the home size decision.

Do I purchase a large home or a smaller home? This can be a tricky question to answer. Partly because our needs change over the years and decades. After kids leave home, maybe smaller is better but prior to that, maybe a bigger home is what you're seeking–room for the kids, dog, and tons of the kids' sleepover friends.

The trends reflect our indecisiveness too. Sometimes McMansions are on the rise and then there's the complete opposite: tiny, tiny homes. In fact, you can watch fascinating shows online about families of four with a couple of dogs moving into these tiny well-designed homes or homes on wheels.

While that small may be far too small, size is a big consideration. It's also something you should think about before you go house-hunting for that perfect home.

Of course,while there are many personal reasons involved in choosing which size home is the best fit, there are also some very important considerations that can help you decide.

Here are few things to help you weigh your options.

The bigger the home, usually the higher the mortgage. You pay for what you get. It's likely the mortgage payments will be more. However, a smaller home with more amenities is sometimes not that far off in price from a larger home that gives you a bit more square footage.

Think about if you are planning to stay in the home a long time. If so, getting a bit more square footage now might be better than having to move again in a short period of time when you may outgrow the home.

Decide how much home you're willing to maintain. For instance, do you want the responsibility of a big back yard or do you want to have something in a planned development, such as a town home, where there is limited yard space to decorate and maintain. That reduced yard size can give you a lot more freedom and leave you with more money in your bank account as opposed to paying for landscaping maintenance.

Do you work from home or might you someday? This is really important these days as more and more people are working from home and setting up desk space on the dining room table is not optimal. If you think you might be working from home someday, look for a home that will have enough space for you to work, even it it's just a screened-off nook somewhere in the house. No doubt, you'll find a good use for the space, whether or not you actually work from home

If you want a bigger home but aren't sure you can afford it, consider your options. Can you get a roommate? Increase your income? Decrease your debt? Or maybe you can wait a little bit longer and save more to get into the home you really want.

The important thing is to think about the size and style of home you want before you start your house-hunting. This will help you target homes that are most suitable for your needs. Be sure to consult with experts to get the best advice and find out how much home you can really afford.

 Have An Awsome Week!

THIS WEEKS HOT HOME LISTING!

4091 SCENIC DR Price: $258,900 Beds: 3 Baths: 2 ½ Baths: 1 Sq Ft: 1836 Delightfully updated home with extras! Shop with workbench, built-ins and sink. Bonus/rec room, 3 sliders, great room layout, RV parking, tons of storage space & utility room. Living room with wood fireplace and extra-wide slider opens to large kitc... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

A large percentage of home sales today are to first time home buyers.  The current market of low mortgage interest rates has given first time buyers an excellent opportunity to become home buyers.  The following is an article from Realty Times that offers some great tips for anyone considering the opurchase of their first home.

Before you start seriously shopping for a home, there's some groundwork you should do to put yourself in the best position to buy a home.

Start early, a couple of months before you talk to a lender or hire a real estate professional.

Check and repair your credit

The Fair Credit Reporting Act requires the three nationwide consumer credit report companies, Equifax, Experian, and TransUnion, to provide you with a free copy of your credit report and FICO scores upon request once a year. You can order the reports by visiting AnnualCreditReport.com, or call 1-877-322-8228.

Each credit report company has its own criteria for scoring your credit report. A lender will usually use the middle FICO score. All three scores need to be as high as possible for you to receive the best interest rates.

If you can, order the reports at least three months before applying for your home loan. If you find a mistake you need to correct, or you want to improve your score by paying down an account, you'll need at least two months before the credit score improves.

You can dispute an inaccurate item on the report by contacting the consumer reporting company and the information provider in writing. Be sure to include copies of your proof.

Don't accidentally raise your scores

Lenders not only look at how much credit you're using, they consider how much credit you have available. However, now is not the time to be opening any new accounts or closing existing accounts.

Don't purchase furniture or a new car or any other big ticket item before buying a home. Lenders are very careful about the amount of debt you have and how much you pay down every month on the debt payments you have.

Get Loan Pre-approval

Don't start house hunting without knowing how much home you can buy. To find out, you have to apply for a loan, which means you're sharing financial information with the lender such as income and work history, student loans, child support or alimony, and credit card balances.

Contact your lender for a preapproval letter. The letter shows that the lender has taken a 1003 loan application, studied your debt ratios to your income, and helped you select a loan program such as fixed rate, ARMs (adjustable rate mortgages), FHA or VA government-backed loans, etc.

Your lender will confirm your down payment source, interest rate, type of loan that's best for your circumstances, and the terms of your loan. The lender will give you a loan commitment based on your qualifications. The home you select must meet appraisal, and the underwriting department must approve the loan.

A preapproval letter will open doors for you, pardon the pun. Sellers will be impressed because you're prepared to buy and that a lender has agreed to process your loan. Your real estate agent will have to know the terms of your loan in order to write your offer.

Find out about federal, state, and local government incentives

Get help with your loan rate, closing costs and/or down payments through federal and state housing authority programs. For example, there are also incentives for workforce personnel – police, fire fighters/emergency services personnel and teachers.

Each community is different, so click on HUD's Housing Authorities to find out what's being offered in your community. Your city may be offering tax incentives to revitalize a designated public improvement area.

Narrow the choices

Think about how you want to live. One story or two? Low-maintenance condo or big yard for the kids? New or older home?

Drive through the neighborhoods you're interested in and look at homes. Visit a few open houses in the neighborhoods you will consider. They will usually be listed in your local newspaper with the hours hosted. Be sure to tell the real estate professional hosting the open house that you are already working with a buyer's agent.

With Google maps, video, virtual tours, multiple photos, school reports, neighborhood reports and more available online or on phone apps, you can get a good idea of what neighborhoods, home styles, and home prices are like where you want to live.

Find an Experienced Real Estate Broker or Agent

Buying a first home is a complex process. An experienced real estate broker or agent will assist you all through the process: the home search, comparable homes sold, making an offer, inspection, repairs, and the appraisal, as well as help you find the best value, neighborhood, and quality home for your budget and requirements.

The seller's real estate broker pays your broker or agent out of your loan proceeds. If you don't use your own agent, the seller's broker keeps the commission, so you might as well avail yourself of professional advice. Your real estate broker or agent works in your best interest.

Don't expect perfection

There's no perfect home. You may want all the latest amenities of a new home, but even new homes come at a price, including longer commutes, higher community fees, and bigger pricetags.

Homes that need updating are priced below homes that are up to the minute and move-in ready. That could be to your financial advantage, so try to look beyond outdated fixtures and focus instead on the floorplan and dimensions. Ignore the seller's tastes and imagine each room clean and clear of clutter and with your own things in them.

Most cosmetic changes are relatively inexpensive, and you can even pay for them with your mortgage loan, in some cases. Talk to your lender.

Think long-term investment

Buying a home can be a wise financial investment, if you buy right and hold your home for long-term gain. Because of closing and moving costs, it's nearly impossible to buy a home and sell it immediately for a large gain, but it is possible to sell after a couple of years with no capital gains tax should you make a profit.

According to the National Association of REALTORS^®, home equity growth beats inflation by about one to two percent annually, not to mention government subsidies for home ownership in the form of tax relief and other incentives.

However, if you look at owning a home strictly as an investment, you'll miss many pleasures. Look at your home as a home, rather than part of your portfolio. Buying a home allows you to live in the neighborhood you want for as long as you want, without having to worry that the landlord is going to sell out from under you. Your stake in a home makes you part of the community, committed to making it a better place to live.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

649 ST ANDREWS LOOP Price: $539,000 Beds: 5 Baths: 4 ½ Baths: 1 Sq Ft: 5568 Outstanding value at $96 per sq ft - Hardwood flooring, granite counters, travertine tile, hickory cabinets, two walk-in closets, solid core 8ft doors, creek views, next to Emerald Valley Golf Resort. Too many high end amenities to list. Less than 2... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

Good Monday Morning!

Is a Natiinal Real Estate sales tax fact or fiction?  Read this interesting article from Realty Times for complete details that just might shock you!

On January 1, 2013, the Net Investment tax went into effect. Despite numerous articles and columns reminding consumers that this tax does not apply to every real estate sale, rumors continue to keep flying all over the country, claiming that the Health Reform legislation Congress enacted includes a sales tax on all real estate sales. While there is a tax, it does not apply to everyone.

The Health Care and Education Reconciliation Act of 2010 was signed into law by President Obama on March 30, 2010. It is a comprehensive and extremely complex piece of legislation. One section (1402) is entitled "Unearned Income Medicare Contribution" and does impose a 3.8 percent tax on any profit on the sale of real estate – residential or investment.

But it is aimed at high-income consumers, who comprise a small majority of American citizens.

Let's look at the true facts of this new law.

First, it is not a sales tax, nor does it impose any transfer or recordation tax. It is often called a "medicare" tax because the moneys received will be allocated to the Medicare Trust Fund, which is part of the Social Security System.

Next, if your income (technically called "adjusted gross income) is less than $200,000, you are home free. The income thresholds are clearly spelled out in the law. If you are married and file a joint tax return with your spouse, the law will apply only if your income is over $250,000. (If you and your spouse opt to file a separate tax return, the threshold is reduced to $125,000. For all other taxpayers, you have to earn more than $200,000 in order to be under the new law.

The up-to-$500,000 exclusion of gain for married couples filing a joint tax return (or up-to-$250,000 for single taxpayers) has not been repealed. Nor has the right to deduct mortgage interest and real estate tax payment been eliminated.

How is the tax calculated? It is a complex formula that could be called "the accountant's protection act". As a taxpayer, you (or your financial advisor) must determine which is less: the gain you have made on the sale of your house or the amount that your income exceeds the appropriate threshold.

Complicated? Yes. Let's look at these examples. Your adjusted gross income is $150,000. You sell your house and made a profit of $400,000. There is no change in the way you determine your gain: you take your purchase price, add any major improvements you have made over the years, and subtract that number from the net sales price. Based on this formula, you and your spouse have owned and lived in the property for at least two out of the five years before it was sold. Accordingly, you are eligible to exclude all of your profit; you are not subject to the new 3.8 tax. Keep the money and enjoy.

Change the example so that your adjusted gross income is $300,000. Since you are eligible to take the profit exclusion of up-to-$500,000, once again you do not have to pay the Medicare tax; your entire gain is excluded, and thus there is no profit to tax.

But let's assume you strike it rich and have made a profit of $600,000. Your income is $300,000. You can only exclude $500,000 under current law, so you will have to pay capital gains tax on the remaining balance. The rate currently is 20 percent, so you will owe Uncle Sam $20,000 ($100,000 x 20%).

But since your income is over the threshold, you now have to pay the 3.8 percent tax. But on what amount?

As indicated earlier, the tax is based on lesser of your profit or the difference between the threshold and your income. Your profit is $100,000. The difference between your income and the threshold is $50,000 ($300,000 - $250,000). In our example, the lower number is $50,000, and you will have to pay an additional $1900 to the IRS (3.8% x $50,000).

According to statistics provided by the National Association of Realtors, the median average sales price for homes in the United States (as of July, 2014) was $213.400. Clearly, none of these homes could make a profit of even $250,000, so if you qualify for the exclusion of gain requirements, you will not be impacted by this new law. Those requirements are: you have to have owned and used the property as your principal residence for two out of the five years before it is sold.

Of course, in homes where a large profit will be made, some home owners may be hit with this tax. But the large profit that you make should offset the nominal tax that has to be paid.

Since the law applies to all forms of real estate, including vacation homes, you should consider consulting with your tax and financial advisors as to your exposure.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

141 KOURT DR Price: $240,000 Beds: 3 Baths: 2 Sq Ft: 1846 Beautiful energy star rated home! New laminate floors and carpet, interior sprinklers, vaulted ceiling, skylights & architectural ledges. Living room with gas fireplace, kitchen with eating bar opens to dining room with slider to back. Master suite ... View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!! 

The Eugene and Springfield Real Estate market is very interesting right now.  There seems to be good buyer activity in the home price ranges of $175,000 and below.  Above that it is spotty.  Homes above $300,000 just are not getting many showings right now. We need the upper end home market here to take off!