HouseLogic: A Resource for Homeowners

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NAR created this site to help consumers become more informed, responsible homeowners which in turn results in a more stable housing market.  As a homeowner, it’s in your best interest to maintain and protect your home for your own enjoyment and your overall financial investment.

Footnote and Disclaimer: From time to time, NAR may ask you to partner on issues or legislation that may impact you as a homeowner.  It’s up to you whether to participate in these causes.

I hope you find this site beneficial.  I have already marked a number of articles for future reference – we all need a little guidance when it comes to knowing what, when and how to protect our homes.

~Kori

Barbara Corcoran – A Tycoon’s Tips

Okay, here’s another article from the March/April 2010 AARP Magazine – I’m sharing these articles because for those of us that are not yet subscribers, we wouldn’t get this information otherwise.

Now, I’ve got to tell you, I’m feeling “wise beyond my years” – last week I offered my commentary regarding the state of the market when I posted the RMLS Market Action – January 2010.  I specifically said, this is a great market… why, because values are still soft and money is cheap!  Here’s the advice of real estate mogul Barbara Corcoran from the current issue of AARP:

BUY NOW!  That’s the hot advice of respected housing expert Barbara Corcoran, who says she’s never seen a better time to purchase a home.  “Typically when real-estate prices are low, interest rates are high.  This is the first time I’ve seen cheap money and cheap prices simultaneously.  This is the good old days we’ve dreamt about.”

Corcoran has a knack for timing.  Having parlayed a $1,000 loan into the high-end New York City real-estate firm she started, The Corcoran Group, she sold the company for $66 million in 2001, before the market cratered.

Now, as an investor on ABC’s ”Shark Tanks”, Corcoran encourages buyers to jump at the abundance of good deals.  “It’s the perfect time to snatch a bargain or to up-grade,” she says.  And when does she think the market will rebound?  “Real estate is slow to unwind and fast to recover.  I suspect we’ll make up most of the loss of the last four years within the next 18 months.”

Now, that’s a bold statement but she is THE expert!  I said it’s a great time to buy for the exact same reasons and from a business perspective, I hope she’s right.  I believe we’ll see a rebound in the next 18 months, I’m just not sure if that will include a recovery of the losses we’ve seen over the past four years.  I actually hope that’s not the case- of course I want to see home values on the rise – as a REALTOR and as a home owner – however, I want to see a sustainable recovery.  If we regain the losses of the past four years in 18 months we will see inflated prices again and the dream of home-ownership out of reach for many first time buyers again.  Thankfully, Portland’s pendulum has not swung as aggressively to one side or another as it has in other markets (Arizona, Nevada, California, Florida) which also means our recovery should be less dramatic as well.  As Martha would say, “that’s a good thing”.

The moral of the story – it is a great time to buy.  Even if you miss out on the tax credit, values are still great and rates are still low.  I’d love to help you take advantage of this “perfect storm” and if you’ve been thinking about jumping into the market and have the means, you could still make the tax credit deadline as well – which is the whip-cream and cherry on top.  Give me a buzz or drop me a line and we can get started today building your real estate portfolio.

~Kori

Stepping Out on the Town

Here’s a great little plug for our beautiful city of Portland, Oregon from the March/April 2010 AARP Magazine (no, I’m not a subscriber yet but these things come across my desk so I thought I’d share with everyone).  AARP featured four cities (North, East, South and West) and it was Portland who won the bid for best urban location to to explore by foot on the West Coast!  Here’s what they had to say:

Walkers love Portland, even with its drizzly climate.*  Maybe it’s because city blocks in this flat locale are half the standard length (200 versus 400 feet).  Or maybe it’s because a special building code requires every new facility or major renovation to add pedestrian-enticing attractions – retail space, a restaurant, or artwork – at street level.  Basically, locals think you’re nuts iif you drive, especially downtown, where you’ll find the Portland Art Museum and the Oregon Historical Society.  And if you walk over to the nearby Pearl District, you’ll find the world’s largest independent bookstore.  The more than one million titles of Powell’s City of Books are spread over 68,000 square feet – which takes up an entire city block.

*Little rain fact: Hilo, Haiwii (129.9 inches) has more average annual rainfall than Portland, OR (36.3 inches)

So, the AARP article mentioned a few of our great “walking” areas but almost every pocket of Portland has a great little “urban” walking area (for the purposes of this article we won’t mention all the non-urban areas like Forest Park, Tryon Creek, Johnson Creek, etc. which are natural areas within our urban areas) - check out the Willamette are of West Linn, Woodstock in Southeast, Hawthorne/Belmont in closer-in Southeast, Alberta Arts in Northeast, Mississippi in North Portland, Sellwood also in close-in Southeast, First-Addition in Lake Oswego, and so many more areas.  Here’s great resource - Walk There! 50 Treks in and around Portland and Vancouver.

I comment regularly about the wonderful place we live – it doesn’t get much better and the word is getting out.  Have a great day and enjoy our beautiful city and the surrounding areas this week by foot!

~Kori

Government Mortgage Plan aids 12% of Borrowers

This is not the sign you want hanging in your neighborhood, that’s why this article is something positive to share. 

I know some may feel this is another attempt by the government to “give-away” money but the reality, this program has also helped those criticizing the government’s mortgage assistance program (aka Loan Modification) by allowing their neighbors to stay in their homes and avoiding foreclosure.  We used to say, that a short sale or foreclosurewas not a valid comp when pricing “non-distressed” properties but the reality is, those properties are competition and do very much impact the value of every one’s homes.  As the banks be better with their short sales processes, these “distressed” properties become even more of a threat.  This month, I had two transactions closing on the same day – one, a typical transaction (not short) – the other, a short sale.  The short sale closed in 35 days from writing the offer – the “typical” transaction was delayed by two-and-a-half weeks (which is why the two ended up closing on the same day).  Why, the lender did not have the financing documentation complete (that’s another rant about Mortgage Banker vs. Bank that I don’t need to get into right now).

My point in sharing this article today, it’s important to support the programs the government has implemented to help the housing market.  Real Estate effects everyone!  If you are living in a structure – whether you own it or not, the market effects you.  Landlords have been foreclosed upon and have never told their tenants until the Sheriff comes to remove them from the property.  Rents been paid but the landlord hasn’t been applying it to the loan.  Or, like I mentioned above, if you own property, you certainly want a healthy market (not a crazy market but one where people can stay in their homes – have you seen the yard of a foreclosed home?)

This article is the “good news” – let’s continue to support these programs as we continue to work towards a healthier market. 

Posted on February 17, 2010 at

WASHINGTON (AP) — The government’s mortgage relief plan has helped about 12 percent of borrowers who signed up since President Barack Obama announced the program a year ago.

The Treasury Department says that as of last month, about 116,000 homeowners had completed the application process and had their loan payments reduced permanently. That compares with more than 1 million homeowners who started the process.

More than 61,000 homeowners have dropped out so far, either because they failed to make payments or didn’t return the necessary paperwork.

Treasury officials say they are working with the mortgage industry to speed up the approval process.

Happy Friday all!

~Kori

Claiming The Federal Housing Tax Credit

Well, it’s tax time and for those of you who were first-time home buyers in 2009 or were “move-up” buyers in the last couple months of ‘09, may be eligible for the Federal Housing Tax Credit.  Hopefully, you spoke with your accountant, CPA or other financial professional prior to signing on that dotted line to make sure you actually did qualify if you’ve been expecting to get the credit (tax credit eligibility).

Now, how do you claim the housing credit?

The tax credit is claimed on your federal income tax return, specifically, home buyers need to complete IRS Form 5405 to determine their tax credit amount, and then claim that amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of hte 1040 income tax form for 2008 returns).  Please note that although the Form is titled “First-Time Homebuyer Credit,” this is the correct form for claiming both the $8,000 first-time homebuyer tax credit and $6,500 repeat buyer tax credit.

No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase. In cases where a HUD-1 form is not used, such as for construction of some new homes, you should attach a copy of the certificate of occupancy in lieu of the HUD-1. Homebuyers should be sure to read the instructions for the revised IRS Form 5405 to be sure they meet the new program requirements.

If you do not know which of thedocuments in your mound of paperwork is the HUD-1 or you’ve misplaced your closing documents, contact your REALTOR, they should have copies of everything in their files as well.

~Kori
*Source the National Association of Home Builders

RMLS Market Action – January 2010

Comparative Chart of Mortgage Rates Over Past 20 Years - Click Image

The January RMLS Market Stats are out however, I never know quite what to think of January real estate stats – coming off the holidays is difficult and when talking about year-over-year in the Portland area we need to remember our extraordinary December ‘08/January ‘09 with “Artic Blast”.  We did see a 34.7% rise in sales activity when comparing January ‘10 to January ‘09 in the Portland Metro Area.  However, we are not seeing the “increases” everyone wants to see quite yet… rise in values!

Values are still soft and are forcasted to remain soft for several years.  The “recovery” will not be a dramatic sweep but rather a gradual climb; which in reality creates a more sustainable market. 

So, I know everyone wants the “good news” and there is great news!  Rates are still great and are projected to continue hovering around the 5% mark through the end of the year.  So, let’s think about this… we thought the market was “fantastic” in 2004, 2005, 2006 – at least if you were a seller but remember, sellers usually turn around and become buyers – so, what did 2004, 2005, 2006 really present?  Inflated home values and mortgage rates between 5.5% – 6.5% or more.  So, you paid more for your house and more for the money you used to purchase the house.  Today’s market presents the perfect opportunity to BUY and not only a primary residance but an opportunity to create or expand your real estate portfolio.

Did you know, the current Home Buyer Tax Credit for the “move-up” buyer does not require that you sell your current home?  It also does not require that you “move-up” at all – you could downsize – the newly purchased home simply needs to be your new primary residence.  What a fantastic opportunity!  You start building a real estate portfolio, the feds pay you $6500 for doing so, you get less expensive money and greater value for your dollar.  This sounds like a great market to me!

If you would like to talk about how you can take advantage of this fantastic market, give me a buzz, I’d be happy to help you build your real estate portfolio – whether your a first-time buyer or a “move-up” buyer, nows a great time… but it’s running out.  Free money is available until April 30, 2010 – you must be under contract prior to the end of April and close by June 30, 2010 in order to collect the tax credit.

~Kori

Energy Efficiency and the Historic Home

Green Renovation in Seattle, WA

Just because your home is older or historic, does not mean it is energy-inefficient and it doesn’t mean that you have to replace all the original windows with vinyl.  This Saturday, the Architectural Heritage Center is featuring a program lead by Joy Sears, of the Oregon State Historic Preservation Office (SHPO), offering easy and relatively inexpensive ways to make your home more energy efficient while keeping its historic character intact. Whether you want to do-it-yourself or hire someone to do the work for you, this workshop will provide you with the information needed to get the job done right. You’ll even learn about contractors who specialize in historic repairs and suppliers of energy efficient products.

Joy has served as a Restoration Specialist for the Oregon SHPO since 2005. Prior to joining Oregon SHPO, she worked as a Restoration Specialist for five years with the South Dakota SHPO. She received her masters in Historic Preservation from the University of Oregonin 2001, where she worked on the restoration of Villard Hall, a National Historic Landmark.

COURSE INFORMATION 
Date:Saturday, February 20th
Time: 10 am – 1 pm
Cost: $10 per person
Location: Architectural Heritage Center (AHC)
701 SE Grand Avenue
Portland, OR  97214
Register on-line or call 503-231-7264

If you’re not able to attend this course this coming weekend but have an interest in preservering your historic home while making it more energy efficient, check out these additional resources or contact the AHC for local guidance.

• National Trust for Historic Preservation
• Repair or Replace Old Windows: a visual look at the impact
• General Weatherization Links & Resources

Remember, when you are thinking about making your home more energy efficient to be more “green” – think about your overall “green” impact.  An existing home is often more green when you think about the fact the materials are already in place and the energy to create the structure has already been exhausted.  Restoration is often the more “green” choice.

~Kori