Price & Condition

Did you read the “Real Estate Matters” column in Sunday’s Oregonian?

Ilyce Glink wrote an interesting piece on “Four Ways to Make Your House Stand Out in a Buyer’s Market”

“Whether the listing is old or new probably won’t make as much of a difference as the condition, price and how the local neighborhood economy is functioning” writes Ilyce.

I absolutely agree.

And, while most of the time, a seller cannot control the economy. They can completely control the other two factors.

CONDITION

When buyers have many houses to look at that offer generally the same amenities and options, then what spurs the decision to buy any particular one?

Whether we like to admit it or not, most of us select our next home based on an emotional response. The house just grabs us and we can picture raising children there, entertaining there, working from home there or a combination of a whole list of needs.

In order for a buyer to make that leap, all other distractions must be removed.

Take out all the wedding pictures and kids toys. Clean up the clutter. Start packing everything you can because, after all, YOU ARE MOVING. Everything must sparkle; there is nothing quite as icky as someone else’s dirt.

PRICE

Listen to your listing agent and price your house to SELL.

If your agent is a professional, she will be telling you the truth about the market, not just what makes you feel better.

Any house in the same general price range and same general area as your house is your competition and you should know how the competition is doing.

Many, many buyers spend a lot of time looking at one type of property and then end up buying a completely DIFFERENT type of property because IT IS AN EMOTIONAL process.

So, if you are selling a twenty year old house in a nice area, be assured that you are indeed competing with the new sub division 5 minutes away.

Latest Case-Schiller Index

New numbers out from Case Schiller may indicate a potential end to the slide in the housing market, at least in Portland and 7 other major markets that reported a slight uptick from March to April.

See below for opening paragraphs, for full article see The Oregonian Business section June 25th, 2008

Click here for full Oregonian Article

Portland home prices still in slide from year ago
by Ryan Frank, The Oregonian
Wednesday June 25, 2008, 7:50 AM

“Despite the year-over-year figures, a housing index shows a potential sign that prices have bottomed out.

Portland-area home prices in April declined 4.7 percent from the same month a year ago, a leading U.S. housing index reported Tuesday. That drop is the most since the index began reporting in the 1980s.

Portland tied for the third-smallest price decline among the nation’s top 20 markets surveyed in the Standard & Poor’s Case-Shiller index. But the region recorded its fourth month of year-over-year price declines, also a first since the index began.

There was a glimmer of good news.

Portland home prices peaked in August and had fallen every month since. But for the first time since last summer, prices ticked up slightly from March to April, a potential sign that prices have bottomed out. Portland was one of eight that reported such an uptick.

“If there is anywhere to look for possible improvement, it would be that the pace of monthly declines has slowed down for most of the markets,” David M. Blitzer, the index’s chairman, said in a statement.”

Off the Beat Ideas: What To Do In & Around Portland, OR

Gosh, it’s only Tuesday and it’s already been a crazy week.  Sorry for the delay for this week’s Off the Beat Ideas but I figure if I get it up here sometime today, I’m still within my self-inflicted deadline to post something every Tuesday.

The Old House Fair
Architectural Heritage Center – 701 SE Grand
June 28, 10:00 AM to 5:00 PM
http://www.visitahc.org/special.html

Bring your questions and photographs to the experts who love vinatage homes and understand period-authentic renovation.  See useful demonstrations and get new ideas you can apply to your own old house projects.  Admission is FREE to the fair and the educational programs.

21st Annual Waterfront Blues Festival
Waterfront Park – SW Natio Parkway
July 3-6, schedule of performances

The Safeway Waterfront Blues Festival is the largest blues festival on the West Coast and the second largest in the nation.  This year’s festival will feature more than 120 performances on five stages.  The festival is a benefit for the Oregon Food Bank with blues fans donating $545,000 and 103,500 pounds of food to fight hunger last year.  Why not listen to some great music and help fight hunger at the same time!  Admission is a suggested $10 plus two cans of food.

Hopworks Urban Brewery Intergalatic Washoe Tournament
Hopworkds Urban Brewery – 2944 SW Powell
July 6, 2008
http://www.hopworksbeer.com/

Play the game that is sweeping the West Coast beer scene – Washoes, a cross between horseshoes and skeeball, played with one-inch washers.  Teams of two will compete for the title of “Intergalatic Washoe Champion”.  If you’re not familar with Hopworks Urban Brewary (HUB) you should be!  HUB is Portland’s first Eco-Brewpub offering all organic handcrafted beers, fresh local ingredients, and a sustainable building with a relaxed atmosphere.  Check it out!

Check back next week for a special 4th of July edition of off the beat ideas, events in and around Portland! 

Kori 

Decoding Real Estate Language

Whether you’re a first time home buyer or someone who’s bought and sold a number of properties, real estate terms can become a little overwhelming when you don’t use them in your daily vocabulary.  We thought we’d pull together some key terms to help you decode your real estate transaction – hopefully, you’re working with a Realtor (even better, with Maria or I) and they are explaining every aspect of the transaction but it’s always a good idea to keep yourself informed as well.

Assessed Value
A tax assessor`s determination of the value of a home in order to calculate a tax base.  This is different from Market Value.

Average Price
The price of a home determined by totaling the sales prices of all houses sold in an area and dividing that number by the number of homes.  This is different from Median Price.

Backup Offer
A secondary bid for a property that the seller will accept if the first offer fails.

Closing
The final procedure in which documents are signed and recorded, and the property is transferred.  The important word to note is recorded – you may sign a few days prior to closing in order to have the documents “record” on your closing date so you may take possession.

Earnest Money
Money a buyer gives with an offer to purchase a property to show intent. Also called a deposit.  The earnest money is refundable to the buyer for a number of reasons but there are also circumstances when the funds would be released to the seller – your Realtor will explain the circumstances when funds are released or refunded.

Escrow
A neutral third party holds the documents and money involved in a real estate transaction and ensures that all conditions of a sale are met.. Escrow also refers to a special account that a lender establishes to hold monthly installments from the borrower to cover property taxes and insurance.

Escrow Agent (Officer) 
A neutral third party who ensures that all conditions of a real estate transaction are met.

Gift
A cash gift a buyer receives from a relative or other source. Lenders usually require a “gift letter” stating that the money will not have to be repaid.

Good-Faith Estimate
An estimate from an institutional lender that shows the costs a borrower will incur, including loan-processing charges and inspection fees.  You should receive a good faith estiamate if you are a buyer or seller prior to closing.

Liabilities
A borrower`s debts and financial obligations.

Lock-in
When interest rates are volatile, many borrowers want to “lock in” an interest rate and many lenders will oblige, setting a limit on the amount of time the lock-in is in effect.

Market Value
The price that a piece of property sells for at a particular point in time.

Median Price
The price of the house that falls in the middle of the total number of homes for sale in that area.

Mortgage Insurance
Required by lenders in some loans to protect them from a possible default . Most loans with less than a 20% down require private mortgage insurance, or PMI.

Possession
When a buyer signs the papers and receives the keys to the house, the buyer officially takes possession.  Again, similar to “closing”, signing often takes place several days prior in order to have documents “recorded” so the buyer may take possession.

Recording
The filing of a specific document to the appropriate government entity.

Secondary Mortgage Market
A market of packaged home loans that are resold as securities to investors. Major players are Fannie Mae and Freddie Mac.

Seller Carry-Back
An agreement in which the seller provides financing for a home purchase.

Title Company
Firms that ensure that the title to a piece of property is clear and provide title insurance.

Obviously, this is not everything you need to know but a few key terms that come up often.  For more definitions visit RealtyTrac’s Real Estate Glossary.

Oregon Property Team’s – Friday Fun Facts

Wow, the sun is shining – it’s a great day to be an Oregonian!  I thought we’d feature some more adventurous “Cliff Claven” facts this week to get you motivated to get out there and get active!  Have a wonderful weekend!

Did you know?

The first American woman to summit Mt. Everest, the world’s highest mountain standing at 29,035 feet, grew up right here in Oregon?  That’s right, on September 29, 1988 after 29 days on the mountain, Stacy Allison, from Woodburn, OR became the first American woman to summit Mt. Everest.

So you think it rains a lot in Portland, OR – think again!  According to a study conducted by San Francisco-based WeatherBill, Inc. Mobile, Alabama topped the list as the soggiest city in the 48 contiguous states.  The Pacific Northwest doesn’t even make the list until Olympia, WA pops up at #24.  So, why do we get such a bad rep?  Well, Portland, OR does have more overall days where it may rain; however, most of our rain falls in the winter – making our winters mild but a little damp and our summers comfortably warm and dry, not humid.  The next time someone asks, how can you handle all the rain?  Tell them to take up skiing or shoeshoeing, it only rains in the winter, which means snow in the mountains (again, another great reason to live in Portland, Mt. Hood is only an hour and a half away).  Oh, and did you know, Mt. Hood is the most frequently climbed glaciated peak in North America!

So get out there and enjoy our beautifu state!

Kori   

Short Sale or Foreclosure – What’s the difference? Part 2 – Foreclosures

Here’s the final chapter to our two part series – Short Sale or Foreclosure – What’s the difference?  Click here if you missed part one.

The foreclosure process is a legal proceeding implemented by one or more lenders after a significant lack of payments by the property owner. 

Three months behind is often the deadline at which the lender (bank or other financial institution) issues a “Notice of Default” and begins the process of taking back the property and evicting the current occupant.  However, in these times of mortgage upheaval, some lenders are not filing a notice until much later. 

(If you are a seller who is getting into trouble, please know that your lender may be willing to work with you and help you even if you get months behind.  TALK to them and try to work it out before you throw in the towel.)

In a foreclosure situation, all sorts of things can happen.  Even in the depths on of the process, the sellers can redeem themselves by paying up the arrears and curing the default or they can try to sell the house and generate enough proceeds to redeem themselves to the lender, although in a market where prices are not appreciating this can be tricky.

In the event the seller does none of those things and the property arrives at the auction, the new buyer (you) might purchase the property “on the courthouse steps”.  As exciting as that sounds, it is not like a normal property purchase. 

Chances are you might be buying a house you have never entered let alone inspected with no clue as to its condition.  It is not uncommon for disgruntled sellers, or their tenants, to strip anything they might consider of value from the property before vacating.

The seller may even still be living there and unwilling to leave so you may find yourself having to resort to eviction procedures. 

And lastly, you will almost certainly have to pay CASH for the property, no mortgages, so you will be handing over cash in the form of cashiers’ checks.  (More than one, in large and small amounts – they don’t make change).

Maria

Off the Beat Ideas: What To Do In & Around Portland, OR

We hope you’re all enjoying this fabulous weather and have had an opportunity to get out and enjoy our beautiful state!  This week – more wine tasting (but this time a little closer to home) and a couple local art festivals.  If you’re trying to think of what we featured last week, visit the Oregon Property Team’s Local Events archieve.

Vicinato Wine Bar (vi-ci-ná-to) noun: a neighborhood or local area
NE 46th & Fremont, Portland, OR
June 19th, 7:00 PM
http://www.vicinatowinebar.com

Join wine makers, Cody Wright and Matt Giannone of Purple Hands, for a free wine tasting this Thursday at Vicinato’s (aka VBar).  These young wine makers both grew up around wineries & vineyards, and both made wine at home, an enthusiasim that has grown into Purple Hands!

45th Annual Lake Oswego Festival of the Arts
George Rogers Park & other Lake Oswego locations
June 20-22, 2008
http://www.lakewood-center.org/

Don’t miss the 45th annual Lake Oswego Festival of the Arts, George Rogers Park & other sites in Lake Oswego, this Friday June 20 through Sunday June 22nd.

Special exhibit at the Lakewood Theater of the Arts
Painting With Fire: Wood Fired Ceramics. This exhibit will feature the largest gathering of wood fired ceramics ever assembled in the state of Oregon. Developed over 6,000 years ago, this art form is being rediscovered across the globe, not only as an ancient tradition, but also as an expressive tool for contemporary art. The exhibit will feature the works of leading regional, national and international artists. Lectures, displays, and demonstrations featuring the techniques of this art form are also scheduled throughout the three-day Festival.

Last Thursday – Art Walk on Alberta
NE Alberta (click here for a map)
June 26, 2008 – 5:00 PM to 9:00 PM
http://www.artonalberta.org/last_thursday.aspx

Don’t miss Last Thursday, next week on Alberta.  Since 1997 the galleries, studios, restaurants and other art venues on Alberta have opened their doors for a celebratory evening of art.  Street vendors and performers line the sidewalks with their handmade goods and unique talents making for a fun filled evening for people of all ages. 

Check back next week for more off the beat ideas for events in and around Portland!

Kori 

Oregon Property Team’s – Friday Fun Facts

As our close friends and clients have come  to learn – we’ve changed the layout of our monthly “snail mail” piece – we have a new look and feel (oooh, listen to that old marketing lingo coming out) and we’ve started a little seriers called, Did you know?  A little fun fact about something Oregon.

Preparing this month’s postcard and looking at the plethora of odd tid-bits we’ve collected, Maria had a great idea! We should share a few of these little factoids with our blog community as well.  So, here’s to the first of what will become a weekly little “Cliff Claven” session.

Did you know?

Oregon’s official state nut is the hazelnut. Even better, Oregon is the only state to have an official nut!  So, the question that came to our minds, what IS the difference between a hazelnut and a filbert, is there? Well, we had to find out so we looked to the experts, the Oregon Hazelnut Marketing Board for the answer!

The Seaside Aquarium, in Seaside, OR was the first in the world to successfully breed harbor seals.  They also hold the worldwide record for housing the oldest harbor seal, Clara, who lived to a ripe old age of 35 (typical lifespan of a wild harbor seal is 15 years and in captivity, 20 years).

Oregon is one of only two states in the US that does not have self-service gas stations, the other, New Jersey.  Just like Oregon, New Jersey state officials have been threatening to remove the ban on self-serve stations - which seems to be passing with flying colors! (sarcasm – the acticle I found was from 2006)

We hope you enjoyed our little collection of Oregon Fun Facts – please come back next week to see what other little gems we’ve uncovered.

If you have any fun facts about Oregon you’d like to share or if you’d like to be added to our “snail mail” monthly mailer list for current listings, send us an email at info@OregonPropertyTeam.com

Latest RMLS Market Action – May 2008 Stats

The stats are out a little early this month with the 15th falling on Sunday (by the way, don’t forget about Dad this Sunday).

There’s some good news this month:

From April to May this year, closed sales were up 17.8% (1,863 v. 1,582) and pending sales grew 2.6% (2,124 v. 2,070).  New listings dropped 2.1% (5,182 v. 5,295)

RMLS Market Action May 2008

Check out the complete RMLS Market Action Report – and remember, please do not be intimidated by the length, only the first four (4) pages pertain to the Portland Metro Area.

Short Sale or Foreclosure – What’s the difference? Part 1 – Short Sales

In this market, we are reading a lot about homeowners getting into trouble with their mortgage payments. There are many degrees of distress.

I have listed several properties where the amount left over after paying off the mortgages was very small, but the seller was not in trouble at all.

I have also assisted sellers who are in a short sale or foreclosure situation and are in dire straits.

What does that mean and what is the difference?
This week, short sales.

SHORT SALES
In simple terms, a short sale will occur when a property is to be sold at a price that will not generate enough proceeds to pay off the loans on the property. Literally speaking, there is a shortage of funds.

This happens for many reasons not the least of which might be depreciating property values or excessive refinancing.

The reasons the seller is selling in these circumstances can vary too. Often, the seller is keeping up on payments, but the danger signals are sounding. If they can’t get out from under, their ability to keep up with their mortgage is in question.

Sometimes, they are just fine with the payments, but it is just a case of bad timing. They have to sell the house and move because of job transfer or other conditions and cannot afford to hold the house until market conditions change.

In either circumstance, the transaction can be tricky.

In a normal transaction, the buyer’s agent presents the buyer’s offer, there might be a few days of negotiation with the seller, but an agreement is reached and the house becomes PENDING and is taken off the market.

If the house won’t sell for a high enough price to cover all the mortgages and other costs, the seller has two options to consider.

1. The seller will have to bring additional cash to closing to satisfy the debts and expenses of the sale.
2. The seller must negotiate with the lender(s) to get them to agree to accept a lower amount than is owed.

In either case, the funds are literally “short” of what is needed to close, hence the term “short sale”.

In the second situation the lender (bank or other financial entity) is referred to as a third party in the transaction and must approve the sales agreement.

In the event third party approval is required, a buyer can make a perfectly good, full price offer on a short sale and think that all is well, but the offer is not a deal until the bank agrees, and sometimes, that can take WEEKS.

In the meantime, the listing agent has a duty to keep marketing the house and if another offer comes in, that will be presented to the bank as well and the first offer may be upstaged.

Every situation is different and some third parties are easier to communicate with than others, but one thing I have learned when it comes to short sales is, ironically, they are hardly ever SHORT.

Check back next week for our detailed explaination of Foreclosures and how they differ from a Short Sale.

Maria

Next Page »