The Real Estate Lens

Help Me Get to London

2011-08-11T10:17:00.000-07:00

Call me self-serving but I want to win a trip to London. By clicking on the link below you can vote for my submission in a contest through a company called DocuSign. I use it in my real estate practice and find it invaluable! Please take 15 seconds to click on the link below and then vote for my submission...then share the link with ANYONE you know so I can use the power of the internet to get like a million votes!

http://apps.facebook.com/wheredoyoudocusign/contests/142267/voteable_entries/27783217

Thanks!

Garett

Should You Pay Off Your Mortgage Early?

2011-07-07T09:16:00.000-07:00

Found a really good article today that goes over whether it is smarter to keep paying on your mortgage or to pay it off early. Take a look and then give me your feedback...have YOU paid off your mortgage early? What benefits or what issues have you run into? Let me know!

Click Here for article.

4th of July - Tips to Parading!

2011-06-30T10:48:00.000-07:00

Fourth of July Parades: Tips to Organize Your Own Neighborhood Parade

There’s nothing quite like a Fourth of July parade, with fire engines, marching bands, and kids riding bikes decorated with red, white, and blue streamers. But you don’t have to go to the big city to find a classic July 4th celebration. With just a bit of planning, you can organize your own neighborhood parade that will bring out the smiles and American flags. Read

Visit houselogic.com for more articles like this.

What to Do This Weekend...

2011-06-25T07:45:00.000-07:00

Looking for something fun, exciting or worthwhile to do over the next few days? Click here for some inspiration!

Mortgage Rates: Best of Year!

2011-06-23T14:03:00.000-07:00

Looking for the perfect time to buy or refinance? RIGHT NOW is actually the best time with interest rates at their lowest levels of the year. Take a look at this article and let me know if you need me to refer you to one of my trusted lenders.

CLICK HERE FOR ARTICLE

Gifts to Family Members? Notify the IRS.

2011-05-31T11:07:00.000-07:00

REALTOR® Magazine-Daily News-Real Estate Gifts to Family Members? Notify IRS

Click the link above for a quick article on why the IRS is cracking down on family members that don't report "gifts" of more than $13,000 during a real estate transaction.

Buying Power Rising!

2011-05-23T11:51:00.000-07:00

I was just sent an email from one of my lender friends letting me know that rates on a 30 year conforming loan were now at 4.5%. The rates have dropped a bit over the past couple of weeks and that only helps your buying power.

Consider this: a 1/2% drop give you an additional 5% in buying power. With the average home price in the metro area hovering around $200,000, that means you can now buy a $210,000 home for the same monthly principal & interest payment. That extra $10,000 in buying power could make the difference from settling to getting what you want!

Want to know what you could qualify for? Just give me a call and I'll make sure one of my trusted loan officers gets in touch with you.

Oregon Economic Forecast Released

2011-05-17T16:58:00.000-07:00

The State of Oregon has released it's Economic Review and Forecast which shows reason for optimism. Take a look at the report and decide for yourself! As for real estate, and like I said at the beginning of the year, 2011 looks like the transition year as we begin to leave behind the crummy news and look forward to positive signs. Slow and steady wins the race...

Repeal of $600 Landlord Reporting Law

2011-04-14T09:18:00.000-07:00

Last week Congress passed legislation that repeals a provision enacted in 2010 that required owners of rental properties to track and send out IRS Form 1099 to any person or company that did $600 or more in work on the home. The 2010 legislation was far over-reaching and would have put a burden on so many people. The National Association of REALTORS® led the fight to get this law repealed. For the full article, please click here.

REALTOR® Magazine-Daily News-Renting May Soon Get Pricier

2011-03-17T16:11:00.000-07:00

If you are renting right now and think it's a pretty good deal, you may be in for a shock: rents are going up quickly. It's time to think about taking advantage of the great home values we have are the the metro area before it's too late. Call me today so I can show you why it is better to buy now and not wait!

REALTOR® Magazine-Daily News-Renting May Soon Get Pricier

The Best Lebanese Food

2011-02-27T20:26:00.001-08:00

I'm always looking for good eats. One of my favorites is Nichola's in downtown Gresham. I'm not sure if it's the flavorful rice, the tender beef or the fact it's extremely affordable but whatever the case I'm just glad it's just down the street from my house.

Dos & Dont's of Garbage Disposals

2011-02-25T09:29:00.000-08:00

Down the Drain: Garbage Disposal Dos & Don'ts

If your kitchen has a garbage disposal, you know how easy it makes mealtime clean up. But what you may not realize is that your disposal comes with some pretty important rules. Here are some of the most vital:

Do:

Insert food slowly. Stuffing it all into your disposal at once can cause clogs and shorten the life of your system.
Grind hard materials. Many people think food like chicken bones or small fruit pits are a no-no, but they can actually help clean the walls of the disposal.
Use cold water for at least 20 seconds. This will solidify grease so that it can be ground up. Also, make sure that all food particles are washed completely down the drain.
Keep it clean. One good way to eliminate drain smells is by grinding citrus fruit peels. You can also add a few drops of dish soap and let the disposal run for a few minutes.

Don't:

Use hot water. This will make grease liquefy and build up, which can clog the drain.
Grind fibrous or expandable foods. The former, like celery stalks and onion skins, can tangle up the disposal. The latter, like pasta and rice, can clog it.
Turn off the motor too quickly. You'll want to make sure all food particles are completely ground. Once done, continue to run the water for at least 15 seconds to flush out particles.
Wash coffee grounds down the drain. While they won't harm the disposal itself, they can clog pipes and drains.
Forget to use it. Lack of use can cause rusting and corrosion, which can lead to premature system replacement.

Are You Now in a Floodplain?

2011-02-08T12:34:00.000-08:00

Remapping of Floodplains Surprises Some Owners

The Federal Emergency Management Agency has been remapping America’s aging floodplains for the last eight years, taking into account changes along waterways brought by development, storm patterns, and natural processes.
While FEMA is only about two-thirds of the way through the project nationwide, some home owners are already finding out that their property’s boundaries are now being designated as flood zones. The redrawn floodplains are leading some home owners to have to buy costly flood insurance, which can equate to hundreds or even thousands of dollars annually.
Home owner Amy Marren says she was surprised when she recently received notice from her lender that she needed flood insurance for her home in Wayne, Pa. She now has to pay a $2,400 annual policy, after an insurance agent told her the house was zoned like it were a “beach house.”
"It's an emotional issue," says David Bollinger, a hazard-mitigation specialist in FEMA's Philadelphia region. "People are upset with us at times."

To find flood maps and other information from FEMA, visit www.fema.gov.

Source: “Remapping of Floodplains Costly for Some Homeowners,” The Philadelphia Inquirer (Feb. 6, 2011)

Home Sales Tied Directly to Who Wins the Super Bowl

2011-02-06T09:55:00.000-08:00

Actually, I have no idea if that is true but it sure sounds like it's a possibility. To my credit, and to make my blog seem credible, I did take two minutes to research the comparison on Google. Alas, I could not find any evidence that the Super Bowl winner has any say in US housing trends.

Wouldn't that be something if it did? What about in Green Bay or in Pittsburgh? If the Packers win, are fans in such a state of euphoria that they call their favorite Realtor and say, "Wow! I wasn't going to do this but the football gods have spoken so now it's time for me to buy that green and gold house down the street"? If the Steelers manage to eek out a win (shudder the thought), will the good folks in Western Pennsylvania start calling their loan officers to get approved for a loan? Maybe. Who's to say they won't?

What if you win that office pool? If you win each quarter and the final score you could find yourself a few hundred bucks richer...enough for a home inspection. Just sayin'.

At any rate, I will be watching Super Bowl XLV with a high level of interest but only because I'm a huge Green Bay Packers fan. If one of my real estate clients calls me after the game to tell me they want to buy a new home because prices are fantastic and interest rates are rock-bottom, well then, I guess it just proves my theory.

Enjoy the day with friends and family. Eat lots of food you really shouldn't. Relish in the commercials and call me if you have an itch to buy or sell some real estate. Just make sure to call me after the game.

When Should You Post to Craigslist?

2011-02-04T09:48:00.000-08:00

If you are like me, you want to maximize your exposure when it comes to selling items on Craigslist, eBay or any other online clearing house. Whether you are advertising homes (like me) or want to get rid of that stationary bicycle machine that never seems to get any use, there are certain hours of the day that work better than others.

You have about a 4-6 hour window of opportunity to capture the attention of potential buyers. Looking at the graph to the left you can see that the most and highest activity is generated beginning at 4:00pm to 5:00pm (when people are close to getting off work) and then again between 8:00pm and 11:00pm (while at home relaxing with a glass of vino).

But what day is best to post? The graph below shows that, believe it or not, Tuesday along with Friday are the best days to post at the times we discussed above.

I can't give you a scientific reason why Tuesday is on par with Friday. Maybe because most people are too busy actually working on Monday to spend a lot of time researching Craigslist. Maybe it's because of the "Hollywood Effect". New DVD's are released on Tuesdays. Blockbuster and Hollywood Video bring out the new movies on Tuesday. RedBox releases new movies on Tuesday. As for Friday, well everyone knows that that's when theaters put on new first-run movies. Like I said, this is not scientific. Heck, it's not even my idea, but it's plausible, right?

Good News for U.S. Buyers...

2011-01-27T10:18:00.000-08:00

...not so good for Hong Kong buyers.

Global Survey: U.S. Homes Are Most Affordable
United States real estate offers a lot of bang for your buck, according to a new survey that shows U.S. homes are the cheapest relative to incomes among English-speaking nations.

Australian homes — which have a median price of $454,000 — were found to be the most unaffordable among English-speaking nations, according to the report by consulting firm Demographia, which examined affordability in the third quarter of 2010. The median home in Australia costs 6.1 times the gross annual median household income. What’s more, 85 percent of the homes in Australia’s major cities were more than 5.1 times average income, according to the survey.

On the other hand, U.S. homes have a median home price of $168,000 and homes cost only three times yearly income or less

Australia has gone from being "the exemplar of modestly priced, high-quality middle-class housing, to now the most unaffordable housing market in the English-speaking world," the report noted. "Each of the least affordable markets were characterized by more restrictive land use regulation, which materially increases the price of land and makes housing less affordable."

The priciest city for real estate, in general: Hong Kong, with homes costing 11.4 times income. (The report considers any markets where home prices are 5.1 times household income or more very unaffordable.)

Prices in Hong Kong have increased by more than 50 percent in the past two years, due to low interest rates, an expanding economy, and buyers flooding in from China.

The United States boasted the most affordable major markets. Atlanta was the most affordable big city, in which the median home price is $129,000.

Meanwhile, the most unaffordable markets in the U.S. were mostly found in California: San Francisco (homes cost 7.2 times income), San Jose (6.7 times), San Diego (6.2 times), New York (6.1 times), and Los Angeles (5.9 times).

Source: “U.S. Homes Most Affordable in English-Speaking -- Except in S.F. and S.J.,” Bloomberg News (Jan. 24, 2011)

Hot Design Trends Debut at International Builders’ Show : Styled, Staged & Sold

2011-01-25T16:59:00.000-08:00

Want to know what the latest trends are when it comes to building a new home? Even if you are remodeling and are thinking of selling in the future, take a look and get some good ideas.

Hot Design Trends Debut at International Builders’ Show : Styled, Staged & Sold

REALTOR® Magazine-Daily News-Owners, Renters Favor Owning a Home

2011-01-20T12:28:00.000-08:00

REALTOR® Magazine-Daily News-Owners, Renters Favor Owning a Home

That Makes NO Sense

2011-01-15T11:06:00.000-08:00

This past week as I was making contact with various lenders on my short sale listings, I had the pleasure of speaking with Jenna G. She is the negotiator for the Home Affordable Foreclosure Alternatives (HAFA) short sales for Chase Mortgage. That wasn't a type at the beginning of the last sentence. Yes, Jenna is the only HAFA negotiator for Chase (at least according to her). I asked her if she was serious and she replied with a resounding, "Yep".

Why? Why is she the only negotiator dealing with HAFA files? There are, of course, other negotiators dealing with short sales - just not ones where HAFA is concerned. We, as REALTORS® wonder why the process has to take soooooo long to get an approval. Buyers and sellers wonder the same things. With short sales playing such a large part in our nation's housing issues, one would think Chase could hire one more person to help with the workload. Just one. Heck, that would cut in half the time it takes to get an approval!

Oh, and did I mention that Jenna G. is not allowed to email us REALTORS® with approvals or questions or anything? It's true. Jenna G. is only allowed to talk with me on the phone and and written communication must be done via fax. Welcome to 1980.

It's time to step it up, Chase. It''s time to bring communications into the 21st century. It's time to hire a few more people and help move our housing industry forward so that the economic recovery can be complete.

Tables Turn in 2011 on Rent vs. Own

2011-01-13T09:30:00.000-08:00

Rents have surged as home prices have dropped, which have prompted some to ponder whether homeownership is really worth it. Moody’s Analytics data has suggested that it makes more financial sense to rent than buy in many U.S. cities, but Moody’s chief economist Mark Zandi now says that is about to change.

"By mid 2011 and certainly by end of 2011, buying will be superior to renting in most parts of the country," Zandi says.

Home prices are expected to fall further, making more homes affordable, whereas rent prices are expected to continue to rise this year.

The following are a few of the top cities where it makes more sense to buy than rent, according to Moody data. (Experts often recommend buying when the price-rent ratio is below 15 and rent when it’s above 20.)

▪ Cleveland: 11.43
▪ Pittsburgh, Pa.: 11.71
▪ Detroit: 12.32
▪ Phoenix: 12.35
▪ Atlanta: 12.82
▪ Tampa, Fla.: 13.08
▪ Orlando, Fla.: 13.1
▪ Cincinnati: 13.74
▪ Las Vegas: 13.89

Source: “Rent vs. Own Ratio to Flip in 2011?” Fortune (Jan. 4, 2011)
Reprinted from Realtor Magazine

Changes in HAFA (and they're good ones)

2011-01-09T10:00:00.000-08:00

Treasury Department Amends HAFA Program to Increase Borrower Eligibility

On December 28, 2010, the Treasury Department released an update to the Home Affordable Foreclosure Alternatives Program (HAFA). The changes will increase the number of eligible borrowers who may participate in the program and should expedite approvals:

(1) A borrower's reason for relocation no longer needs to be connected to employment nor be of a certain distance from the property. Borrowers may have moved up to 12 months before certain dates in the HAFA process but may not have purchased another home.
(2) Servicers are not required to determine if the borrower's total monthly mortgage payment exceeds 31% of gross income. Borrowers will still be required to show a hardship.
(3) Servicers are now required to communicate approval, disapproval, or a counter offer no later than 30 calendar days after receiving an (i) executed sales contract, (ii) Alternative Request for Approval of Short Sale, and (iii) a signed Hardship Affidavit.
(4) If an unsolicited borrower requests HAFA, the servicer has 30 calendar days to determine the borrower's eligibility and, if eligible, send the borrower the Short Sale Agreement.
(5) HAFA will no longer impose a 6% cap on payments to each subordinate mortgage/lien holder. The $6,000 aggregate limit is still in effect.

The update also clarifies vendors of the servicer may not be paid from the real estate commission. Servicers must implement the changes by February 1, 2011.

For more information, click here.

2011 Brings Lots of Change

2011-01-08T11:54:00.000-08:00

So, by now you have no doubt heard the news. In case you missed it, I have taken on the position of Branch Manager at the John L. Scott Portland Metro office in Gresham. This is a big move for me because for the past nine years I felt pretty ensconced at my previous office. I spent over half my real estate career with one office and now the change has come and I am ecstatic about it!

I have the opportunity to work with some great people at John L. Scott while at the same time I get to continue to help my clients with all their real estate needs. This new year looks to be shaping up to be great so stay tuned!

Most Overvalued Markets

2010-10-28T07:45:00.000-07:00

According an annual survey from The Economist, the United States is one of only 4 countries where housing is actually undervalued. The U.S. sits at -2.1% while the most undervalued housing market is Japan coming in at -34.6% of value.

Now, the title of my post is "Most Overvalued Markets" so I guess I should tell you the Top 10. If you plan on moving to any of these countries any time soon, plan on paying a little too much for your home!

NAHB Welcomes New Appraisal Guidance from Federal Reserve | RISMedia

2010-10-27T08:25:00.000-07:00

NAHB Welcomes New Appraisal Guidance from Federal Reserve | RISMedia

Even though it took a little while to put in place, these new requirements will help new construction weather the storm of bad appraisals.

Interest Rates Trump Tax Credit

2010-09-22T13:39:00.000-07:00

Opportunities like this don't last forever

Home mortgage interest rates are at unbelievably low levels right now but they seem to be taken for granted. How odd is it that very few people focus on how changing rates affect purchasing power. These low rates actually pencil out to be better than the expired $8,000 First Time Home Buyer Tax Credit.

Consider a $250,000, 30 year mortgage at 4.375%. The monthly principal and interest payment would be $1248 per month. The same monthly payment at $5.375%, where rates were a year ago, would be for a mortgage of $222,870. That is over a $27,000 difference or 3.5 times bigger than the tax credit. That is just one way to look at the difference.

Looking at the difference in payment for the same mortgage amount, the principal & interest payment on a $250,000, 30 year mortgage at 5.375% is $1,399 per month, or $151 per month more compared to the 4.375% rate. In just 5 years, the savings would be over $9,000! And over the live of a 30 year loan the savings would be more than $54,000.

These numbers are mind boggling! Yet, first time buyers tripped over each other clamoring to purchase a home prior to the end of the tax credit on April 30th, 2010. Even in the face of the lowest interest rates in our lifetime, buyers just aren't rushing to purchase. As soon as the economy starts to move in a positive direction, interest rates will increase. As a buyer, today's rates should be very motivating.

When I first became a Realtor in 1993, interest rates were around 9%. At the beginning of 2000, rates were at 8%. Make no mistake, you will see rates like these again. The difference in monthly payment at 8% compared to 4.375% for the same loan amount of $250,000 is an additional $586 per month. Don't take the low rates for granted.

Get out and buy some real estate!

Money & Energy Saving Tips

2010-07-13T11:20:00.000-07:00

Save Money By Growing Fruit Trees

Money really can grow on trees! Cut your grocery bill while improving your landscape by planting and growing a fruit tree. Read
Start a Compost Pile

Save money and grow healthier plants by recycling yard and kitchen waste into nutrient-rich compost. Read
Save Money with Your Edible Garden

An edible garden featuring vegetables and herbs can save you a bundle if you keep it simple and raise plants that offer high yields. Read
Water-Saving Irrigation Strategies

Simple, low-cost watering systems help you save water and money but still have a great-looking yard. Read
Plant Trees To Save Energy and Grow Value

Plant a tree to add value to your home and have a positive impact on the local environment. Read

Visit houselogic.com for more articles like this.

Strategic Default? Think Again.

2010-07-12T14:42:00.000-07:00

In late June, FannieMae announced policy changes to discourage strategic defaults—defaults by borrowers who have the capacity to pay or who do not complete a workout alternative in good faith. Borrowers who engage in strategic defaults will be ineligible for another Fannie Mae-backed loan for seven years from the date of the foreclosure. In addition, Fannie will also seek deficiency judgments, if allowed by state law. In July, Fannie plans to issue instructions to servicers detailing the new policies.

Click here to read it straight from the horse's mouth...

New Rules for Homes Built Prior to 1978

2010-06-15T15:21:00.000-07:00

If you are planning renovation, repair, or painting (RRP) on a home built before 1978, you should be aware of EPA rules that require such work be done by certified contractors who must follow EPA work guidelines. This may complicate or add expense to such projects. RRP rules in Oregon are jointly administered and enforced by the Construction Contractors Board (CCB) and the Department of Human Services (DHS). For information visit: http://www.oregon.gov/DHS/ph/lead/Renovation_Repair_Painting_Rule.shtml

Homeowners who do their own work in their own home are exempt from RRP rules. EPA does, however, urge homeowners to read EPA's Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools. Homeowners can also call the National Lead Information Center at 1-800-424-LEAD (5323) for more information or visit EPA’s website at: http://www.epa.gov/lead/pubs/renovation.htm

Don't Water a Dead Plant

2010-06-10T16:06:00.000-07:00

This blog post is much more personal than I am used to writing. Maybe I should be more personal in my blogging - I don't know as I'm still rather new to it.

I was getting some education this morning and one of the quotes that stuck with me was, "Don't water a dead plant." (thank you, Dirk Zeller). Although the speaker was referring to prospects that never seem to want to buy a home, the analogy can be used for pretty much anything. Life, and the relationships we grow, need to have nourishment on a constant basis - not just when the relationship is about to falter.

I'm certainly no green thumb but I've managed to keep the one plant I received from my grandmother's home after her passing alive and well for over 5 years now because of the weekly watering. That plant means more to me than most people know - hence the keeping it alive. In my real estate practice I have always wanted to keep in touch with my past clients on a regular basis. Well, life has a way of messing with the most well-laid plans.

Count this post as the first step of a long-overdue process by which I commit myself to keeping in touch with my past clients, friends and co-workers (yes, even though I work in the same office, sometimes I don't see or speak with some associates for months).

My grandmother's plant is sitting at my house waiting for me to water it. I think I'll do that tonight as soon as I get home.

Where to invest? Check the map!

2010-04-03T08:41:00.000-07:00

Looking for a way to narrow down the search for a good rental home as an investment? Take a look at this map of the Portland metro area. It shows the vacancy rates for residential properties and breaks it down by area.

This is just a starting off point but right now, with interest rates still low (but trending upward) and housing prices at amazingly low prices, rental homes make a lot of sense. Give me a call and I'll show you how you can make it all work!

New Incentives for Short Sales Take Effect April 5th

2010-03-23T08:15:00.000-07:00

Potential buyers of short-sale homes might consider waiting until April 5th before making a formal offer.

That’s the date the federal government will begin offering lenders financial incentives to hasten the process. Under the new rules, banks will seek a BPO before the property is listed for sale and let the sellers know a minimum number they are willing to accept. If the sellers bring a buyer with a good offer, the lender must accept it within 10 days.

Not all sellers are eligible for the program, dubbed the Home Affordable Foreclosure Alternatives (HAFA), but enough are that it is probably worth waiting.

Source: The Wall Street Journal, June Fletcher (03/19/2010)

If you are looking to buy a home on a short sale or sell your home short, give me a call. I hold the Short Sale & Foreclosure Resource certification from NAR and have successfully helped many clients navigate through the tricky short sale process.

Harmful Legislative Acts Defeated!

2010-02-26T10:46:00.000-08:00

You can thank The Oregon Association of REALTORS® and their members for helping to defeat the following proposals in the most recent legislative session:

House Bill 3661 -- New Restrictions on Domestic Wells -- Following an unsuccessful attempt to place new restrictions on domestic wells in the 2009 Legislative Session, the concept emerged and was defeated once again in 2010. Domestic wells have been demonstrated to have a negligible impact on Oregon’s water resources and a new, permitting process would be a costly, lengthy and unnecessary process for landowners.

Senate Bill 1060: Navigability -- An effort to create a statutory right to recreational use of Oregon waterways (up to the high mark and beyond) was defeated in the Senate Committee on Environment and Natural Resources. If successful, this legislation would have granted public access to land that is privately owned and would severely limit the private property rights of landowners adjacent to ANY body of water in Oregon. Additionally, efforts to establish a task force to review the issue of navigability during the 2010 interim fell short in the Senate by a vote of 15 to 15.

Portland Home Values

2010-02-25T12:13:00.001-08:00

Zillow Home Value Index

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12 Hot Home Ideas

2010-02-01T09:31:00.000-08:00

People today seek to personalize, economize, and make the most of their space—inside and out.

Today’s home owners seek style and comfort, but they’re ever mindful of the toll that our choices can take on the environment. These 12 home-furnishings trends reflect current priorities and aspirations. Some of these phenomena will inevitably fizzle, while others will become mainstays of the home, but for now they are attracting lots of industry and consumer buzz. Here’s a rundown:

#1 Induction cooking

Why trendworthy: Thirty percent more efficient than gas or electric.
Cropping up in more and more homes, induction cooking uses a power coil to produce a high-frequency electromagnetic field that heats only the contents of a magnetic pan, leaving the surrounding surface cooler to the touch. By maintaining a precise temperature, it immediately stops heat generation when the cook element is turned off or cookware is removed, and it doesn’t produce an open flame that heats up a kitchen, says Malte Peters, product manager for cooking products at BSH Home Appliances, parent company of Bosch and Thermador. One downside: Special cookware must be used. Retail prices range from $1,500 to $4,399.

#2 Environmentally friendly cabinetry

Why trendworthy: Popular with green movement.
With sustainable products continuing to draw fans, more kitchen and bathroom cabinets are expected to be fabricated from green materials, says John Troxell Jr., director of design at Wood-Mode Inc., a large manufacturer (www.wood-mode.com). But it’s not materials alone that make consumers pick one line over another, Troxell says. "Where materials come from, how cabinets are manufactured, and whether they’re finished without pollutants will be more important. While bamboo is renewable, it comes from halfway around the world, so is it environmentally friendly given transportation costs?" asks Troxell. He predicts greater interest in indigenous walnut and cherry, less in endangered mahogany and rosewood.

#3 Energy-sipping refrigerators

Why trendworthy: Pares the electricity consumption of a standard guzzler.
Future refrigerators will be better insulated to improve energy efficiency. The challenge is to add insulation without reducing interior space, says Matthew Kueny, senior manager of product development at Miele, which is working to provide a solution (www.miele.com). Also on the horizon: New interior lighting that’s more energy-efficient and that better illuminates dark corners without distorting the look of the food, which is common with the blue hue cast by LED lighting. Miele refrigerator-freezers start at almost $7,000, while simpler conventional models start at $600.

#4 Integrated stone composite sinks

Why trendworthy: They blend seamlessly into a countertop for a cleaner look, plus they’re more durable and easier to clean.
Stainless steel sinks are still common, but stone composite designs built into a countertop are coming on strong, says Tim Maicher, director of marketing at Blanco (www.blancoamerica.com). The prime motivator is growing consumer demand for easier to clean, more durable surfaces that don’t scratch or stain. Blanco’s Silgranit II line offers another perk: multiple colors and textures. The designs will reflect demand for longer, deep models, yet not so deep that aging home owners have trouble setting down or removing pots and pans.

#5 White and beige color palettes, some grays and pinks, bold accents

Why trendworthy: Less intense colors to calm jittery nerves.
Color seers may disagree about which palette will dominate, but they note that softer backdrops are everywhere—offering serenity to soothe frayed nerves as the economy remains turbulent. Mary Lawlor, color stylist with Kelly-Moore Paints (www.kellymoore.com), thinks whites and beiges will remain most popular and that bright colors will provide accents. Anne McGuire and Sue Kim, affiliated with Valspar Manufacturing Co. (www.valspar.com), see the most popular colors as water-inspired blues and greens, along with underwater corals. And Sylvia O’Brien, founder of Colour Theory (www.colourtheory.net), notes that earth tones provide tranquil reactions to the technical coldness in our midst and pink, especially with a pearlized finish, is popular as an accent because of its perceived healing power.

#6 Condo home offices

Why trendworthy: To help home owners maximize small spaces—and obtain a tax deduction.
Owners of single-family homes have long been able to convert a bedroom, den, or basement to an office, but down the road more condo buyers and apartment renters will find homes with small, dedicated spaces for business use, says Robert Kaliner, president of the Ascend Group, developer of the luxury Georgica condominiums in New York, where each glass-wrapped unit will have a home office (www.georgicany.com). Steve Kliegerman, executive director at Halstead Development, which is marketing units with home offices in another New York building, The Fitzgerald (www.thefitzgeraldcondos.com) in Harlem, sees a couple of factors behind the trend: Older, retrofitted office buildings tend to come with nooks that lend themselves to becoming small offices, and the home office tax deduction gives these spaces special appeal.

#7 Interior wall treatments besides paint

Why trendworthy: Easier to install; more personalized patterns, colors, textures.
Less popular in recent years, wall treatments other than paint are making a comeback, says Atlanta-based interior designer Brian Patrick Flynn, who cites several reasons: new bolder graphic wallpaper patterns, some in shiny metallics and textured leathers, and easier and less costly application due to new primers. Wallpaper is cropping up on a single focal wall, which saves money. Flynn predicts more home owners will cover an entire wall with an enlarged photo printed in sections.

#8 Do-it-yourself projects

Why trendworthy: Less costly, more personal.
The DIY trend keeps growing as home owners look to cut costs and return to basics. Instruction is readily available in classes, on the Web, and in books. Example: Designer Fu-Tung Cheng (www.chengdesign.com), who helped make concrete a chic, green material for interior surfaces, is now helping even non-handy home owners construct concrete countertops with his book and DVD, Concrete Countertops Made Simple (Taunton Press, 2008). "The DIY movement represents a trend away from overly complex projects that require professional expertise. The simpler designs are also more timeless and individualistic and more likely to touch the heart," Cheng says.

#9 Outdoor curtains

Why trendworthy: Even backyard "rooms" require some privacy.
As more people construct "rooms" in their backyards for purposes such as swimming, cooking and eating, and relaxing under a pergola, the need for curtains has arisen. New fabrics stand up better to outdoor conditions and visually soften hardscape surfaces. They also screen out nosy neighbors, says designer Flynn. Fabric runs $12 to $80 per square foot, plus installation.

#10 Dual-flush, environmentally efficient toilets, plus more healthful designs

Why trendworthy: Greater recognition that liquid and solid waste have different flush requirements.
Though widely available abroad, dual-flush toilets—with separate mechanisms to handle liquid or solid waste—are gaining attention here, says Lenora Campos with Toto USA, a leading toilet manufacturer (www.totousa.com). The main challenge isn’t convincing home owners to buy the models, she says, but getting them to remember to use the right button. More companies may follow Toto’s lead to construct toilets with glazed concave rims and water nozzles that repel bacteria and wall-mounted models that make cleaning underneath easier. Toto’s Aquia II dual-flush models run from $457 to $686, while the company’s conventional single-flush models range from $350 to $525.

#11 3-D HDTV

Why trendworthy: Images are becoming more lifelike.
HDTVs display a beautiful picture, but they can’t offer a 3-D presentation like your local IMAX movie theater does. The reason: True high-definition 3-D in the home currently lacks a standard and is still too expensive for most consumers. That should change, in part because electronics manufacturers are developing a standard format. When that happens, prices should drop, says Dave Pedigo, senior director of technology for CEDIA (the Custom Electronic Design and Installation Association), a national trade association.

#12 Relaxation retreats

Why trendworthy: Increased need to unwind.
Who cares about a home being a castle when most just want a place to unwind? Atlanta architect Johnna Barrett (www.barrettdesigninc.com) has designed several relaxation rooms, where creature comforts include natural materials, color kinetics, programmable LED lighting, candlelight, aromatherapy, a sound-blocking machine, flat-panel TV with DVD player, refrigerator with purified water, and a door. Depending on room size and amenities included, a retreat room could cost from $3,000 to $10,000.

Barbara Ballinger is a freelance writer for REALTOR® magazine.

Top 10 Most Undervalued Markets

2010-01-27T14:57:00.001-08:00

The 10 Most Undervalued Housing Markets

Nationwide, only 87 markets are in the overvalued category, according to a newly released 2010 report compiled by IHS Global Insight and PNC Financial Services.

That means 242 of the 299 largest U.S. housing markets are selling for prices that even bankers think are less than fair market value. The judgment is based on a comparison of median home prices, local interest rates, population densities and income, plus historic premiums or discounts.

Here are the 10 most undervalued areas, according to the study:

Las Vegas, -41.4 percent
Vero Beach, Fla., -39.8 percent
Merced, Calif., -37.7 percent
Cape Coral, Fla., -36.8 percent
Houma, La., -34.6 percent
Port St. Lucie, Fla., -33.3 percent
Warren, Mich., -32.3 percent
Vallejo, Calif., -31.9 percent
Modesto, Calif. -31.8 percent
Stockton, Calif., -31.8 percent

Source: CNNMoney, Les Christie (01/27/2010)

FHA Relaxes Resale Rule

2010-01-26T08:41:00.000-08:00

Effective February 1, 2010 the Department of Housing and Urban Development (HUD) will relax FHA rules that prohibit insuring mortgages on homes that are owned by the seller for less than 90 days -- a move that could help expedite the rehabilitation and resale of foreclosure properties.

In a housing market where tighter lending requirements have made FHA financing the only option for some buyers, this 90-day policy has (1) kept some homebuyers from being able to purchase affordable homes and (2) prevented the quick resale of foreclosed properties, which affects the ability of communities to stabilize and rebuild.

Research has shown that the buying, fixing, and reselling of foreclosed properties is often achieved in less than three months time. The temporary waiver, which will expand access to FHA mortgage insurance to many, will be in effect for a period of one year, unless extended or withdrawn by the FHA. With this in mind, now may be an excellent time to contact clients who have recently purchased a foreclosed property and those who may be on the fence about purchasing a foreclosure as a short-term investment.
"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."
To ensure FHA borrowers are protected from inflated prices, the policy has certain restrictions, including:

All transactions must be arms-length and there can be no identity of interest between the buyer and seller.
If the sales price of the property is 20 percent or more above the seller's acquisition cost, the lender must meet specific conditions for the waiver to apply.
The waiver is limited to forward mortgages, and cannot be used under the Home Equity Conversion Mortgage (HECM) purchase program.

You can read the full text of the waiver on HUD.gov:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

What the IRS is NOT Telling You

2010-01-06T11:44:00.000-08:00

I just read an article detailing how the IRS is making it a little more difficult to receive your First Time Home Buyer Tax Credit or the Move-Up Home Buyer Tax Credit. According to Karen Deis, a contributing author for Broker Agent Social, the IRS has put stipulations on claiming your credit that are not generally known to the public. I just wanted you to be aware so that if you have purchased your home after November 6, 2009 there are some things you can't do and some that you must do:

You cannot file a 1040 EZ form to claim the tax credit
You cannot file electronically if claiming the tax credit
There will be a revised Form 5405 to fill out to claim the credit if you purchased after Nov. 6, 2009 but it won't be available on the IRS website for a couple more days (January 8, 2010 is the target date)
The IRS will need extra time to audit the document to make sure you qualify so they are telling tax advisors to expect an average of a 16-week turnaround. They may even ask you for additional information that was not previously needed (i.e. letter from a previous landlord, copy of your driver's license, closing statement from the purchase of your home, etc.)

To see a great (and quick) informational video about the revised Tax Credit CLICK HERE.

The main thing to remember is to make sure to get all of your questions and concerns addressed by a licensed tax professional. I'm here to make sure you are informed before you go into any transaction.

Stats & Trends - November 2009

2009-12-15T11:20:00.000-08:00

The November 2009 residential highlights have been release from the Regional Multiple Listing Service (RMLS) and it shows some areas of improvement:

Closed sales were up 72.4% compared to November 2008 (largest on record for the area)
Pending sales rose 19.9% and new listings dropped 7% over the same period

And some areas of decline were noted:

The average sales price was down 11.4% compared to November 2008
The median sales price dropped a bit from October 2009 ($239,000 v. $245,000 in October)

Overall, the activity levels are up due in part to the extension and expansion of the Homebuyer Tax Credit which allows for and $8,000 first-time home buyer tax credit and a $6,500 move-up buyer tax credit.

The holidays are typically a slower time in real estate but tend to get busy once the New Year arrives so if you are thinking of making the move now may be a good time to start the ball rolling by contacting me to get a plan in motion. Remember, even if you are outside the Portland metro area I can still help you by finding just the right professional to assist you.

Gearing Up for 2010

2009-12-08T12:37:00.000-08:00

Have you begun to see the light at the end of the tunnel (otherwise known as 2008-2009)? Based on the trends over the past six months and what the projections are for the upcoming six months it looks like the worst is over. The residential markets are seeing more activity, inventory levels are dropping and prices seem to be stabilizing.

I'm no Carnac the Magnificent but I have a pretty good feel for how the market will react. The first quarter of 2010 should remain stable with the Homebuyer Tax Credits of $8,000 for first-time buyers and $6,500 for move-up buyers fueling the surge. Once the tax credits expire (April 30, 2010 is the deadline for being under contract) we should see a slight seasonal uptick. What does this mean to you? At some point the prices are bound to start going up. Interest rates are at historic lows hovering near 4.75% and prices are at "OMG that's a great deal" levels.

This should tell you something. Don't kick yourself in the butt 3-5 years from now because you didn't buy your first home, a move-up home or and investment property in one of the greatest buying opportunities you will see.

I'm telling you now: DON'T WAIT!

New Short Sale Guidelines Announced

2009-12-01T10:59:00.000-08:00

The US Treasury Department has decided it is taking too long for short sales to be approved or rejected by mortgage servicers. Several changes have been made and were announced last night that could greatly impact home owners facing foreclosure.

Realtors have complained that sales fall through as lenders bicker over the sales price, what they should receive from the proceeds, and whether the borrower will be held accountable for the debt in the future.
Among the changes designed to help homeowners:

Mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt
Borrowers would receive $1,500 for relocation expenses
Mortgage servicers will receive a $1,000 incentive for completing a short sale and investors will receive incentives up to $1,000 for signing off on payments to subordinate lienholders.

The effective date has not been announced as of yet but I will make the leap and guess it will be right away. This should help stem the tide of foreclosures and reassure homeowners that they have alternatives to simply letting their home go back to the bank. By selling the home, even on a short, homes will have new owners living in them rather than remaining vacant for long periods of time. This helps to stabilize neighborhoods and in the long run will help home values.

Top 10 Reasons to Sell NOW

2009-11-30T15:22:00.000-08:00

People who look for a home during the holidays are more serious buyers.
Serious buyers have fewer houses to choose from during the holidays, so you have less competition.
Houses "show better" when decorated for the holidays.
Buyers are more emotional during the holidays.
Buyers have more time to look for a home during the holidays.
Many people want to buy before the end of the year for tax reasons ($8,000 & 6,500 Tax Credit).
January is traditionally the month for transfers. Transferees can't wait until spring to buy. You must be on the market to capture that market.
You may still restrict showings during your personal family events.
You can always sell now, but specify a delayed closing or extended occupancy until early next year if you so desire.
By selling now you have an opportunity to buy during the spring, when many houses are on the market.

So What's The Bottom Line?

You may have fewer actual showings during the winter months, but more qualified and motivated buyers.
The reason is you have less competition, resulting in a quicker sale and a better price for you!

As always, I am here as your real estate resource, whether you live in my neighborhood or across the country.

Have a WONDERFUL holiday season!

Loan Modification Help

2009-11-24T12:35:00.000-08:00

For homeowners who are being ignored by their banks regarding a loan modification, here is something I received from my in-house counsel at RE/MAX Equity Group that should help.

Call the Office of Controller of the Currency (OCC) 1-800-613-6743 or go to their website http://www.helpwithmybank.gov/. They control the money to the banks. File a complaint. You have 45 minutes to type and a few thousand characters only. Within a few days you will get a call from the Bank President's Office. They get your information once and for all. You get a letter that they have everything. Then you get a letter of forbearance with your new terms for period of 3 months. That's where we are now. If you stick to the plan you should get a new policy with these terms.

In other words, if you are trying to modify your loan and are getting nowhere fast with your current efforts - complain! Make your bank hear you! I would love to hear back from people that have gone this route and have successfully received a quick response. Let me know! If you need assistance with anything you know I am here to help.

Streamlining The Short Sale Process

2009-11-20T13:12:00.000-08:00

When you owe more on your home than it is valued at and you need to sell you run into a situation called a Short Sale. You've probably heard this term on the news or have read about it online or read it in the (gasp) newspaper. If you are in the real estate business this term has been burned into your vernacular because of the slow economy and the decline in real estate values.

Short sales can be an arduous, forest-clearing (lots of paperwork), time consuming task. The owner needs to fill out various forms, their Realtor needs to fax a ton of paperwork and makes lots of calls to the mortgage holder, and then everyone waits for a response from the bank. And waits. And waits. And waits. But maybe, this will all change shortly. The US Department of the Treasury will be announcing plans shortly that should help to speed up the short sale process by quite a bit.

Now, the details are not out yet (and when they are I will let you know) but the main thing to focus on is that the it looks like the initial response time from the mortgage holder(s) may be cut down from weeks or months to 48 hours. This is because the use of standardized forms and cash incentives to the mortgage holder will help streamline the process. This is great news for all parties involved in a real estate transaction that is subject to a short sale. A faster turnaround time, a possible allowance to help the seller move, and buyers that don't walk away from a short sale because it's taking too long to close. As more information is released on this I will pass it on to you!

A Matter of Perspective

2009-11-17T14:10:00.000-08:00

Have you decided to hold off selling your current home and buying a new one because your home may not be worth what it once was? Why? Investing in a down market can be very advantageous.

Suppose your home was worth $200,000 in 2008 but has lot 20% because of the sluggish economy. That would make the value at $160,000. I know you are thinking, "But I just lost $40,000. How is this a good thing?". Well, the same market that dipped your value 20% also caused the home you are going to buy to drop by the same amount. It's all a matter of perspective. So, let's say you want to buy a bigger home to accommodate the growing family (remember those two weeks last winter when no one could leave their home???). The house that fits you perfectly was on the market in 2008 for $350,000 but because of the same sluggish economy, the price is now 20% lower at $280,000. Taking the $40,000 you "lost" on the sale of your home and factoring in the $70,000 drop in purchase price of a larger home in the same market you now have a net gain of $30,000! And, when the market recovers (and it will recover), your new home will appreciate at a higher dollar amount (10% appreciation on a $200,000 home is only $20,000 while 10% appreciation on a $280,000 home is $28,000).

You can choose to look at the market in one of two ways. I say, let's look at it in a positive way. As I said before...it's all a matter of perspective.

Investors Delight

2009-11-10T13:31:00.000-08:00

A few years ago when someone would call my office from out of state looking for an investment purchase under $150,000 I had to tell them that there really wasn't any such thing in the Portland metro area.

Oh, how the times have changed.

As of this writing there are 232 single-family, detached homes currently available under $150,000 (35 of those being under $100,000). There are also and additional 843 single-family, detached homes currently available between $150,000 - $200,000.

I know that not everyone is able to take advantage of these investment opportunities because they don't feel secure enough in their current job or have lost some of their investing zeal with the drop in the Dow. But, if you are ready, willing and able to make the commitment to invest and hold for the long term you will be in a much better place years down the road when this recession has long been forgotten.

Expanding the Extension

2009-11-09T13:08:00.000-08:00

While Congress vacillated on the finer points of modifying the Homebuyer Tax Credit, they did do the one thing that was necessary: they passed it! Now, not just first-time homebuyers are eligible for a tax credit. Move-up buyers now can get in the game if they meet certain requirements. Take a look at the following explanation of how the newly revised tax credit could affect you (Tax Credit Info). If you have even thought of getting into the real estate market to take advantage of these remarkable times please remember that you only have a limited time. In order to qualify for the either the $8,000 first-time buyer tax credit or the $6,500 move-up buyer tax credit you need to be under contract to purchase a home by April 30, 2010.

Not only does this expanded version of the tax credit benefit a multitude of buyers its reach also extends to everyone involved in home building/remodeling all the way to appliance manufacturers, cable companies, home decor retail stores and carpet cleaners (just to name a few).

Interest rates are still below 5% for the majority of home loans and the requirements for loans now is different than it was just one year ago. Make sure you talk with a professional about all your options.

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