Watch Vacant Homes

A fire broke out in a vacant Happy Valley home last night. The home was known by neighbors to be a popular spot for transients, and was owned by an estate. Whether your house or a house in your neighborhood is vacant because its for sale, foreclosed on, or the owners are just on an extended trip, it is important to keep an eye on them. If your house is for sale and vacant, either you or the listing agent should be checking on it at least weekly. Make sure that all doors and windows are secure so that transients can't get in, and that all fireplaces and candles are not left burning. Also, having a pre-listing inspection will alert you to any electrical issues that could cause a fire.

http://www.oregonlive.com/news/index.ssf/2009/09/fire_burns_vacant_happy_valley.html

Sellers- Is a Short Sale Right For You? 6 Questions to Answer

I always warn buyers of short sales, they often can take too long to close, and may not ever close after months of being in escrow. For sellers the issues are different, to qualify as a short sale the home can no longer be worth the amount that has been borrowed against it, and the sellers have to have reasons why they can no longer pay the mortgage. Not a good position to be in, it does happen, and if you think that you are in this position, answer the following questions:

1) Does your home qualify? Check with your mortgage holder, but usually there has to be a drop in home values, a mortgage that is in or is near default, and a home owner who is unable to pay due to hard times.
2) Does your Realtor know what to do with a short sale? There are special certifications, or your realtor can have been through the process before, either way make sure that they are willing to stick it out!
3) Have you talked with your lender? There is a special packet of information that each lender will require, and a protocol to follow. Talk to them first to get the ball rolling, and make closing easier for the buyer in the future.

4) Will I accept the tax consequences of a short sale? Contact a tax specialist to see what the impact will be for you, you don't want to get a surprise tax bill after going through the long short sale process.

5) Can I handle the impact it will have on my credit? A short sale will damage your credit, consult with a financial advisor to see how much, and if that is the best option for you.

6) Do I have alternatives? Some lenders are willing to renegotiate your monthly payments, and the government program Hope for Homeowners can give you more information. Think outside of the box, if the payments are the problem consider taking in a roommate, or renting the whole house out while living in a smaller apartment.

If you do need to do a short sale, get a qualified team behind you, a Realtor, tax expert, a financial advisor, and an attorney are all good resources for information and support.

Portland Architecture and Design Festival 2009!

October is the month of many festivals in Portland, including the Architecture and Design Festival. The complete scheduler is here: http://www.aiaportland.org/ad09/events/

The first tour is for Small Spaces/Big Ideas http://www.aiaportland.org/ad09/events/Small-Spaces-Big-Ideas.htm. This ties into a new trend with home owners- buying and staying in smaller homes even as their families grow. Many urbanites do not want to move into even medium sized homes on the outskirts of the city, let alone the (gasp) suburbs. Schools in Portland are improving, as are neighborhoods around the city, so there is no need to move, whether they have kids or not.

Another tour that looks interesting and ties into how Portlanders live is the Ride the Rails Tour http://www.aiaportland.org/ad09/events/transit-tour.htm. With MAX expanding every year, and people of all sensibilities riding the bus, train and lightrail, this tour should open people up to seeing the city in a new light.

Fed Gives Mortgage Tips

The Federal Reserve decided that part of helping avoid another mortgage crisis is educating consumers, so they have 5 tips on what to do when looking for a mortgage on a home you are buying or when you are refinancing.

1. Know Your Budget- Your real budget, which includes what you actually bring home after taxes, and all of your expenses, not just the ones you admit to in public. Being realistic about how much you spend each month will keep you from getting in over your head.

2. Shop Around- Check with at least 3 lenders to see what you qualify for, what their rates are, and if they offer any special programs.

3. Know the Loan Costs- Each lender will put things a little differently, and either charge you more in fees up front, or give you a higher interest rate. By knowing exactly what each one is charging will help you decide who can give you the best deal.

4. Weigh the Risks and Benefits- Because each lender determines some of the fees and rules of the loan, find out what they all are so that you can get the right loan for you. Be wary of pre-payment penalties, balloon payments, and adjustable rates.

5. Ask Home Owners You Trust- Friends and family that have recently bought or refinanced might have a good referral to give you, or a name of who to avoid. Also ask if they could go back and change something, what would it be? You can then use that as an example of what not to do.

Credit is tight now, and it can be difficult to get a loan, but if you are considering buying now or in the future, talk to a lender today, they can at least put you on the right track if they can't get you a loan now.

http://realtytimes.com/rtpages/20090917_tips.htm

August Median Sale Prices for Portland Neighborhoods

North Portland: July- $234,500; August- $231,000- down $3,500

NE Portland: July- $244,000; August $249,900- up $5,900

SE Portland: July- $215,800; $211,000- down $4,800

West Portland: July- $363,300; August $327,500- down $35,800

Lake Oswego/West Linn: July- $355,000; August $405,000- up $50,000

Milwaukie/Gladstone/Boring/Clackamas/Estacada:July- $275,000; August- $262,500- down $12,500

North, NE, and SE saw little change from July to August, but West Portland and the swanky suburbs of West Linn and Lake Oswego saw huge differences. West Portland's median sale price dropped over $35,000, which is not good for this urban area. The exciting upside of this months numbers is West Linn and Lake Oswego, which rose a whopping $50,000. Prices overall may continue to fall, but it is always nice to see such a dramatic increase.

New Construction Quality on the Rise

Builders have less business, but what they are building, is being built with better materials and craftsmanship. On a 1000 point scale purchasers of new construction have raised their scores to 811. The complaints about new homes have also dropped. The cream rises in this environment, and with the competition for jobs, only the best builders with the most competitive prices are actually getting jobs now. New home owners are also putting an emphasis on the quality of materials put into their homes. They are thinking about the long term usage of the home, not of it just a place they can have for a year or two and make a profit on. In the long run this will be great for future buyers, and the market, as the homes built in these recession years become classics that people cherish and maintain.

http://money.cnn.com/2009/09/15/real_estate/home_builder_ratings/index.htm?section=money_realestate

How to Prepare Yard Plants for Fall

Fall feels like it is just around the corner, and as a terrible gardener, I was looking for some advice on what to do in my yard. I found these simple tips:

How to Prepare Yard Plants for Fall eHow.com

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10 Questions to Decide Between a New or Old House

One of the first and most general ways to narrow down your search when you decide you are ready to buy a home is to decide whether you are buying a brand new house, or an older house. There are pros and cons for each category, and within each are vastly differing styles, qualities of construction, neighborhoods, and amenities. Here are some basic things to consider before you rule either one out.

1. The Neighborhood- An established community will have developed parks, shopping, and community relationships. The mature trees and landscaping along the streets might also be a draw.

2. Maintenance and repair- No home is perfect, but the older a home is the more work it will need, and the more money will have to be put in to upgrade appliances, and do large maintenance projects, such as a new roof or repainting the exterior.

3. Home improvement- If you like working around the house, an existing home might be perfect, and if you have no idea what to do if a door has a squeaky hinge, a new house could be perfect.

4. Existing features- Existing homes are usually landscaped, and have fixtures such as blinds already in place.

5. Land- In cities older homes usually have larger lots, and newer developments have smaller yards, but often a common playground or park.

6. Location- Older homes are usually closer to the city center, newer homes are often in subdivisions away from downtown, but near a shopping center or large employer.

7. The opportunity to remodel- If you want to be able to put your own touch on a house by replacing a kitchen or adding on, an older home is a great opportunity.

8. Price- Traditionally, older homes have been cheaper than newer ones, but with the recent foreclosure crisis deals can be found in all categories.

9. Track record- With an existing home you can research the neighborhood, as well as know if a home style has become classic, or was a passing trend. Newer homes don't have that history, but they also don't have the baggage.

10. Traditional layout- Older homes have formal living and dining spaces, while newer homes are more likely to have a casual great room which is open to the kitchen.

For Sale: 3BR/2BA Single Family House in Portland, OR, $210,000

For Sale: 3BR/2BA Single Family House in Portland, OR, $210,000

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Buyer's Taking Advantage of $8000 Tax Credit

Time is running out on the First Time Buyer Tax Credit, and already hundreds of thousands of people have taken advantage of it. Nearly 310,000 buyers have submitted it for their 2008 tax returns, and up to 1.1 million have qualified so far. Most of those buyers are waiting until they file for 2009 to get the cash back, and only then will we know how many first time buyers got an $8000 check from the IRS. The National Association of Realtors estimates that an extra 350,000 homes will be sold in 2009 because of the tax credit.

http://money.cnn.com/2009/09/04/news/economy/first_time_homebuyer_tax_credit/index.htm?section=money_realestate

Foreclosers in Portland are on the Rise!

While the market is picking up for sales of homes, the good news does not spread to those that already own, and maybe loosing their homes in the near future. Foreclosures are on the rise around the great Portland Metro Area. In Multnomah new foreclosure filings are on the rise again after leveling off in the second quarter. The same thing is happening Clackamas and Washington counties. Clackamas has had an 8.5% increase in just one quarter. Washington County saw 5.1% increase in one quarter. More homes will be on the market as short sales, and bank owned once they have been foreclosed on. The market may once again have too much supply, and not enough demand, as one time home owners are turned into renters for at least a few years.

What Will a Mortgage Broker Need to Know?

The first step to buying a home today is getting pre-approved for a mortgage from lender. Be prepared for that first meeting, and be ready to have information on the following things:

1. Employment and income- 2 years if you are employeed, 5 years if you are self-employed

2. Outstanding debts- including student loans

3. Cash reserves and assets- retirement savings and gift funds

4. Down payment- cash you will pay out at closing

5. Loan purpose- new home, refinance, home equity line

6. Property use- primary residence, investment property

7. Property type- condo, single family, duplex