Category: Buying Advice

What to do when buying real estate in Lake Oswego, Oregon

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Linda’s “News & Notes”

1) Some Interesting Updates on the Portland Area Market:

–       (According to RMLS)

  • Home sales in the Portland area showed marked improvement when compared with the same period (December) a year prior. “Closed” sales were up 52.6%, “Pending” sales rose 40.9%, and “New Listings” rose 11.9%.
  • In addition, the average sale price was down 2.5% compared to Dec. 08.
  • The average sales price for the 12-month period of 2009 was down 12.1% from the previous year.

2) Tax Credits: The “First Time Home Buyers” tax credit was extended to this Spring (yikes… getting close) and there has been an additional tax credit extended to those “Buying Up” who have lived in their current home for five years and are buying a property of less than $800,000.  Both of these tax credits expire in April: The contract must be inked by April 30th, and the closing must be by June 30th.  If you or someone you care about are considering taking advantage of this amazing opportunity, you really must start looking for a home now to make the timeline.

3) Interest Rates to Rise: According to Carrie Bay of DSNews.com (among many others), interest are projected to begin rising, and have risen .25% already within the past month.

4) F.H.A to Raise Standards for Mortgage Insurance: No date has been set yet, but the word is “summer”. (ANOTHER reason to put your home-buying plan in motion now…)

–      (excerpted From David Streitfeld of the NY Times)

  • Borrowers who get an F.H.A.-insured loan will soon have to pay a higher initial insurance premium. The new premium will be 2.25 percent of the value of the loan, up from 1.75 percent. 
  • Starting this summer, sellers will not be able to offer as much help to buyers to pay their closing costs. The maximum amount of assistance will drop to 3 percent of the value of the property, from the current 6 percent.
  • Left largely untouched by the changes is the most controversial aspect of the agency’s program: a provision allowing buyers to make a down payment as low as 3.5 percent. Private lenders these days require at least 15 percent.
  • Borrowers who want to put the minimum down will now be required to have credit scores of at least 580. Previously, there was no minimum score. (This is a relatively decent bar though, so this rule may have little effect.)

5) Attention Investors: Yay! HUD has decided to waive the 90 day seasoning financing contingency for buyers!

-(From Pat Goodell of Academy Mortgage ~ 503 380 0953)

Effective February 1st,  2010, there will no longer be a requirement for a seller of a property to be on title for 90 days or more in order for approval of an FHA backed loan. This is incredible news, since the majority of buyers in today’s market are FHA buyers! The 90 day seasoning issue has long been an issue for investors and agents when working with short sales. This is changing on Feb 1st. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.”

–          ***Linda’s note: There are a few minor restrictions on this.  Let me know if you’re interested & I’ll send you the entire document with more detail.

6)Credit Card Companies Get Slapped w/Restrictions: We all know how hard the new mortgage guidelines have hit some potential home-buyers.  Sometimes it seems like every time you turn around the consumer is facing yet another hurdle from the banking industry.  Well, this time the consumer is being offered protections that should make it easier, less expensive, and less confusing to do business with, or work to pay off credit card companies.   Here’s an excerpt from the Federal Reserve’s Announcement:

The Federal Reserve Board on Tuesday approved a final rule amending Regulation Z (Truth in Lending) to protect consumers who use credit cards from a number of costly practices. Credit card issuers must comply with most aspects of the rule beginning on February 22.

“This rule marks an important milestone in the Federal Reserve’s efforts to ensure that consumers who rely on credit cards are treated fairly,” said Federal Reserve Governor Elizabeth A. Duke.  “The rule bans several harmful practices and requires greater transparency in the disclosure of the terms and conditions of credit card accounts.”

Among other things, the rule will:

  • Protect consumers from unexpected increases in credit card interest rates by generally prohibiting increases in a rate during the first year after an account is opened and increases in a rate that applies to an existing credit card balance.
  • Prohibit creditors from issuing a credit card to a consumer who is younger than the age of 21 unless the consumer has the ability to make the required payments or obtains the signature of a parent or other cosigner with the ability to do so.
  • Require creditors to obtain a consumer’s consent before charging fees for transactions that exceed the credit limit.
  • Limit the high fees associated with subprime credit cards.
  • Ban creditors from using the “two-cycle” billing method to impose interest charges.
  • Prohibit creditors from allocating payments in ways that maximize interest charges.

Consumers can learn more about changes to their credit card accounts by accessing a new online publication. “What You Need to Know: New Credit Card Rules.” It explains key changes consumers can expect from their credit card companies as a result of the new rules. The Board plans to release additional “What You Need to Know” publications in conjunction with other major rulemakings

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Broker’s Tour in L.O.~Tuesday, Jan. 19, 2010

I thought I’d bring you along with Dianne and I to see some of what was on Brokers’ Tour Tuesday in Lake Oswego.

What do we DO on tour??? Well, we check out properties that are new on the market or that have had a major change such as remodeling work or price reductions. We also enjoy visiting with each other & learning more about the properties (this is a great way to find out material information that is not included on the listing sheet), and you should know that Realtors LOVE to eat on tour! Usually we’ve been at meetings all morning and are ravenous by the time we get out to tour.  Dianne calls it the Pavlov Response… she postulates that even when we don’t tour, we automatically get hungry on Tuesdays at 11:00…  I think she’s right!

I was not able to post everything we saw on Tuesday, but I’ve got quite a bit to show you… Let’s get going! (all photos used with permission ~ remember that you can enlarge any photo by clicking on it)

We headed over to Westridge to 51 Hillshire Dr., to visit a custom contemporary home set up above the road and surrounded by luscious landscaping, giving it peaceful views out the many bright windows.  We were met by Debbie Todd who answered questions and showed us around with warmth and hospitality. This one is stately, with 4306 SF, 4 bedrooms, a formal but open entry, master suite on the main floor, high vaulted ceilings, hardwoods, great room with gorgeous kitchen (yes, that’s Dianne in the kitchen), fireplace and access to the spa/patio area (also accessible from the spacious master).  Daylight basement offers pool table area, 1/2 bath, media area, and a beautiful wet bar.  Three bedrooms are upstairs (one non-conforming). The flow of this home is so elegant, and the feel so open and peaceful… I would highly recommend a look.  This one is set & ready to welcome it’s new owners with style & comfort from day one.

From Westridge we drove to 2057 Summit Dr  in Summit Heights where the neighborhood is nestled up the graceful slope from Lake Oswego. This particular home is a totally remodeled 4 bedroom, 3 1/2 bath 1975 Craftsman with panache. I mean, this home shouts easy, comfortable living from the street as you enter the circular drive.  It is just a ‘superstar’ sitting there waiting for the perfect occupants. Set back a ways from the road, we meandered up the walk and were met by Susy Darm, another charming local Realtor with tons of information about the property to share. It is 4589 SF on a .45 acre lot overlooking the lake with beautiful views from the upper deck & grand master bedroom.  The outdoor living options begin with the main level deck that wraps from the porch around to the side… vaulted with forest views & accessible from the kitchen and dining areas.  Did I mention the kitchen?  Let’s just say stunning slab granite, Dacor Pro stove, Sub Zero, Viking, alder cabinets, and an open/airy feel.  The great room is wired for surround sound, there are three fireplaces, one of which boasts an alluring river pebble fascia. I could go on & on… media & game room, stellar bathrooms… but really, this one needs to be seen in person.

Leaving Susy, we decided to finish up our tour with the new construction  home at 567 6th Street in First Addition. We walked through this one about a month or two ago when it was in full building mode… we gingerly stepped through the home being careful not to trip and trying to visualize the finished result.  It was fun to see the transformation yesterday.  Shari Newman met us in the beautiful kitchen featuring one of my favorites… Carrera Marble for back-splash.  It offers 2568 SF of brand new home, with 4 bedrooms and 3 1/2 baths.  Floors are luxurious, dark hardwoods. Bathrooms feature granite and elegant fixtures & finishes.  The generous master is conveniently located on the main level. Upstairs also opens to three more bedrooms, one of which has high ceilings and could probably also be used as a game or media room.  Little touches than really shine include the brass gutters, and slatted wood ceilings on the front porch.  Style.

Well, that wraps up our Broker’s Tour for this week.  Hope it was fun tagging along with us! We’re always here to take a call & show you property if you find something that “speaks” to you.

If this is making you want to tour yourself, I’ll be holding 371 6th St. Open on Sunday in Lake Oswego from 2:00 – 4:00 PM.  This is a sweet 3 bedroom, 3 1/2 bath custom rowhouse in First Addition. C’mon down! We can chat.

Very Best,

Linda

You may reach me at:  503 318 2116

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Looking Back at the LO Real Estate Market of 2009

Red man statueI think the best thing I can say about the Lake Oswego real estate market of 2009 was that it wasn’t 2008. Remember a year ago? We’d seen the collapse of some of the Nation’s largest banks, the first bailout/stimulus package had been put into play, and the entire Nation was in a wait and see mode as the country transitioned to a new Presidency. It was a very difficult time. And it makes today’s market feel, well, pretty darn good.

Let’s start by looking at the Portland Metro area.

  • At this time last year the RMLS was reporting 19.2 months of inventory.  In other words, to sell all of the active listings at the pace that properties were then selling, it would take 19.2 months.  Today that same inventory is just 7.1 months.  Whew!
  • Closed sales from November of 2009 (the most recent report available at the RMLS) are 72.4% greater than they were in November of 2008.  Don’t get too excited about that one.  It’s a reflection of just how horrible sales were in November of 2008 and how great they were comparatively in 2009.  Putting better perspective on it requires doing a 11 month average of January-November for 2008 and then 2009.  When this is done the closed sales are greater in 2009 by 2.6%.  Still, an improvement.
  • November of 2009 compared to November of 2008 has pending sales up by 19.9%
  • November of 2009 compared to November of 2008 has new listings down by 7%
  • We have continued to see a decline in home values of 11.4%, year over year.

Looking at the specifics of Lake Oswego:

  • There are currently 396 single-family homes for sale and 130 condos.  Of the single-family homes, 96 are priced at over $1,000,000 and 54 are priced at $350,000 or less.
  • There are currently 49 single-family homes and 12 condos with pending sales.
  • In the last 12 months 393 single-family homes and 95 condos have sold and closed.  Of those 42 cost $1,000,000 or greater and 93 were priced at $350,000 or less.  In those high-end homes, 7 were priced over $2,000,000.
  • At the pace that $1,000,000 and greater homes are selling, based upon the performance of the last 12 months, there is still 2.2 years of high-end inventory.  And that also means that the less expensive homes ($350,000 or less) has just 7 months of inventory.
  • The average sales price is $419,300.
  • Property values saw a decline of 12.9% in the last 12 months.
  • Average days on the market (length of time between listing a home for sale and accepting an offer) is 163 days.

I just can not leave this subject entirely without doing my compulsive comparison of affordable homes in Lake Oswego versus Sellwood, a neighborhood in SE Porltand.  I like to do this because I used to live in Sellwood, so I think I have a good idea of the area, and because I remain convinced that Lake Oswego is misunderstood by buyers.  Many people assume that Lake Oswego is just too expensive for their budget.  This is, in fact, not true at all.  At this time there are currently 54 houses for sale in Lake Oswego priced at $350,000 or less, whereas in Sellwood there are currently just 27.  Lake Oswego is a good place to find an affordable home.

  • The least expensive home in Lake Oswego is a short-sale property that needs work.  It’s priced at $169,000 and has 1382 square feet with 3 bedrooms and 2 full baths.  It’s on a quiet street near Waluga Junior High School.  Offers have been submitted to the lender for 3rd party approval.
  • The least expensive home in Sellwood is a short-sale property that is being sold “as is”.  It looks to me like it needs some work but is in better condition than the LO property.  It is priced at $209,000 and has 850 square feet (120 of that in the basement) with 2 bedrooms and 1 bath.  It too has received an offer and is waiting for lender 3rd party approval.
  • The most expensive home in Lake Oswego remains the 5.5 acre private island in Oswego Lake that is priced at $19,500,000.  Built in 1929, it has 13,500 square feet with 5 bedrooms and 6 1/2 baths.  There are waterfalls and a lake side pool.  To arrange a showing, buyers must provide verification of funds. Yep, LO has those kinds of houses too.

We will never be able to foresee the future.  We can only look at the present and the recent past to get an idea of what to expect ahead.  My prediction is that the tax incentives for 1st time buyers, and now for repeat buyers as well, will continue to boost sales.  I think people intending to sell who are serious will continue to price their homes at reasonable levels that will attract an offer.  I also think that people have been beat up in the last couple of years and realize that many mistakes were made.  Even if the economy improves, I predict caution from home buyers for many years.  People will shop carefully and make home choices carefully.  I will also tell you that from my perspective, having survived the housing market of 2008, and now the market of 2009, I am really looking forward to 2010.

Linda and I want to wish you a safe, healthy, and happy New Year.

Yours in real estate, Dianne

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Changes to the lending environment

stafford rocksBoth in my personal experience, as I see transactions through escrow to closing, and in the continuing education classes I have lately been taking, I am seeing some very strong changes in lending guidelines. These changes are coming from the Federal Government as part of addressing the mortgage crisis that our country has recently endured. I think that it is important, no matter where you fit into the real estate picture, to understand these changes and adapt your expectations and behavior to accommodate them. The days of having a credit score and a pulse to get a mortgage are over. The days of a 30 day escrow are going to be rare, and here is why:

The first big change in lending practices happened June 1 of 2009 with the implementation of MIDA, the Mortgage Improvement Disclosure Act. This Federal law requires that every time a borrower receives a Good Faith Estimate (the paperwork that lays out estimated costs to obtain a mortgage) the borrower must be given a 7-day disclosure period in which to become knowledgeable of the terms of the mortgage and either accept those terms or shop for a better deal. It makes sense. Buyers are faced with a very large and important financial decision. They need to understand what they are doing and approve of the loan product that they will be obtaining. It gives a borrower some breathing room in the process so that they are not pressured into a loan that they will later on regret. Where it gets dicey is if any changes happen to the loan while it’s in escrow. Every time a change occurs that affects the APR by more than 1/8th, a new Good Faith Estimate must be issued and a new 7 day disclosure period must pass. So let’s say that a buyer does not lock their interest rate until just prior to closing and the rate changes. The lender can not allow closing of the sale until that 7-day disclosure period has passed. A more common variable would be if the buyer has a home inspection and chooses to have the seller pay some of his closing costs in lieu of repairs. When the seller pays the buyers closing costs it changes the buyers Good Faith Estimate and a new 7-day disclosure period must pass. This is not going to be a big deal if all parties go into the escrow period understanding how important it is to allow time for disclosure periods and being aware of what can trigger them. I think it is more important than ever to lock in your interest rate early in the escrow period so that you don’t get thrown for a loop at the last minute.

The other changes that are occurring are a result of the Real Estate Settlement Procedures Act, which goes into effect on January 1, 2010.

The Federal Government has now defined what constitutes a pre-approval on a loan application. In the past a buyer would make a loan application prior to making an offer on a house. That buyer could then provide a letter of pre-approval from a lender showing that they are approved as a borrower but subject to finding a house. The Federal Government is now saying that no loan approvals can be given without an address attached to the approval. So a borrower can get pre-qualified for a loan (credit report pulled and debt to income factored to estimate that they can be approved in the future) but they can not get pre-approved.

The next big change is the change to required Federal forms for both the Good Faith Estimates and for final HUD Settlement Statements. I have seen the new Good Faith Estimate forms and I like them. They look more like a worksheet. And they have very clear sections where the lender must put in total sum numbers for “all other settlement charges”. So many lenders call their fees by different names. So a borrower, when comparing loan programs, would have to compare a variety of charges that, because they had different names, were confusing. By requiring a lump sum figure it doesn’t matter the names of the charges or even the quantity. What matters is the bottom line and this new form makes it easy for a borrower to see the sum total and compare sum totals between lenders. Once the Good Faith Estimate is given the lender is required to allow the borrower 10 days to shop other loan programs. The Good Faith Estimate has blank columns that line up next to the estimate given that allows a borrower to write in the fees they find with other lenders. The finished form will clearly show the borrower the various costs for various programs. I think it is an improvement.

Another change is that there is a 3-day disclosure program for the appraisal. This means that the borrower must be given a copy of the completed appraisal at least 3 days prior to closing so that they can look it over and understand it. The days of the appraisal being given to the borrower when they sign the loan papers, or perhaps even having to request that it be mailed to them, are over. Again, I think this is an improvement. Not only do buyers deserve to see the documentation of value, it just seems like professional courtesy to take this extra step.

Finally, there is what is called the 10% Tolerance. At closing the numbers given in the Good Faith Estimate are lined up against the actual settlement charges on the HUD Settlement Statement. If there is a difference in the charges of 10% or greater, the lender must absorb the difference. This can be done by reducing the lender charges at closing or by reimbursing the borrower within 30 days of closing. Seriously, this is a big IMPROVEMENT for borrowers.

All of these changes are going to mean that if there is a mortgage involved, it will take a little longer to close a transaction. Realistically, you should expect escrow to last about 45 days. And as much as the buyer and seller might be willing to close sooner, the process can not be rushed. These are Federal guidelines that preclude the terms of the written contract.

I have got to share one more word of advice. If you are buying a home and you have made an offer that has been accepted, do not purchase ANYTHING using credit. Lenders are now pulling credit reports just prior to funding the loan. If your credit score has changed or your credit card balances have increased, it can kick your new mortgage right back into underwriting. This recently happened to a buyer of one of my listings. Not only did he have to pay off the new credit card charges, but we had to wait an entire week for the lower credit card balances to be reflected on a new credit report from one of the National credit reporting bureaus. It delayed closing on the purchase for 2 weeks. So much for moving in by Thanksgiving……

So be aware, be patient, and be realistic about what to expect. There is a new lending environment, but for the most part it does benefit the borrower. Change can be a good thing.

If you would like a pdf of the Real Estate Settlement Procedures Act, click here.

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Amazing Deal on Luxury Townhomes in First Addition

LOSixthFrontIt isn’t often that we shine the spotlight on any particular property, but when we heard that the new luxury town homes on Sixth St in sought-after First Addition had just lowered their prices by $100,000 each to $599,900., Dianne and I just had to run over there and take a look.

There are six of these little gems with four of them left & available for purchase. The address is 363 Sixth St., and the LOKitchen 102909ML# if you want to get a preview is 9057549. Each has 2258 SF, 3 bedrooms, 3 & 1/2 baths, 2 levels with additional full finished basements, and probably just everything you’ve been looking for.

First of all, they really are gorgeous. The finishes in these are superior. The first feature you notice inside are the beautiful plank maple hardwood floors. A sleek yet spacious slab granite kitchen with long island, pantry & light beech LO DiningRm 102909cabinets also boasts additional built-ins and smart features like a pull-down bar. The dark french doors to the front porch area off the dining room are a rich contrast, and the white wainscoting throughout adds that crisp old-world cottage feel. The 2-car detached garage out back with private courtyard to the house is an added bonus in First Addition, and from there you enter the great room compete with gas fireplace and more built-ins.

LO BltIns 102909Downstairs you find another gas fireplace and generous media room as well as another bedroom & bathroom w/an additional laundry area for guests or your reclusive teenager. Upstairs is the master bedroom & bath showing off glorious travertine w/onyx, a clawfoot tub & separate shower as well as an additional bathroom w/soaker tub & yet another bedroom. Walk-in closets of course, and the main laundry near the upstairs bedrooms check those final “must-haves” off the list.

LOKitchen102909Overall, these are just so unique & have that easy-living feel that goes hand in hand with the First Addition lifestyle… you know, walking to all the services, trendy shops and restaurants, not to mention Millenium Park Plaza for a view of the lake & all the festive local activities like Farmer’s Market, open air Movie Nights, Holiday Tree-Lighting festivities and on & on. First Addition is just a strolling kinda place; a small-town feel with all the amenities. Cottage Living LOGrtRm3magazine named First Addition as one of the ten best cottage communities in the country. American Planning Association name it one of the top 10 neighborhoods in America. The accolades go on & on.

Yes, these are nice indeed. But you know, on the practical side, in addition to the location & amazing price when comparing features & finishes to other offerings, there are also NO HOA fees. Compare that with other HOA’s nearby at anywhere from $136./month to $455./mo.

LOMedia RmCome on down & take a look. Bring a Realtor as there has been a lot of interest. They will be held open both Saturday & Sunday from 1 – 4.

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Talking Taxes

Along with the gorgeous fall color, October brings property tax statements.  If you live in Oregon, you will be receiving your statement in the mail in the next week or so.  Property taxes are pretty misunderstood, and not because people are dumb. The simple fact is that they are confusing. I am going to take a shot at explaining them and clearing up some basic issues.

fallcolorThe tax year runs from July 1st to June 30th, but you receive your tax statement in October for payment on November 15th.  No wonder people are confused!  Not only does the tax year not correspond with the calendar year, but you get your statement at a completely odd time as well.  (Is this some sort of a conspiracy?)  So when you pay your taxes in November you are paying in arrears back to July 1 and ahead to June 30.  You can pay your taxes in one lump sum and receive a discount, or you can pay it in thirds with the final third due in May.

Don’t fall behind in your property taxes.  The tax assessor is the only entity that can step ahead of your mortgage lender in lien position.  This means that if you fall behind, the county can actually foreclosure on your home even if you are current on your mortgage.  This is why mortgage companies pay attention to whether or not your property taxes are paid and will be all over you if you let them slide.  I recommend to all first-time buyers, and to buyers who are not yet financially seasoned homeowners, that they arrange for their taxes to be paid as a part of their house payment.  This builds a reserve account that is built up all year so that when November rolls around the full year’s tax bill is on hand, and the taxes are paid on your behalf by your mortgage company.  It makes paying your taxes quite automatic.

fallcolor2Yes, your property taxes will probably go up this year even though your house value has likely gone down.  Right now, this is the most confusing issue about property taxes and is getting a lot of play in the media.  This is happening because of the restriction that was placed onto annual tax increases in the mid-1990’s.  At that time house values were going up quickly and property taxes were going up at the same pace.  This was creating financial hardship because people’s incomes were not keeping pace.  A ballot measure was passed that restricted annual tax increases to not more than 3% per year plus any bond measures passed through public vote.  Bond measures are those ballot measures that supply funding to build libraries, schools, zoos, etc.  Lots of bond measures have been passed in the last 15 years, including an $80,000,000 bond measure that re-built the two High Schools here in Lake Oswego.

When you receive your tax bill you will see two values:  tax assessed and market.  The tax assessed value has increased under restrictions for the last 15 years.  These restrictions have kept the increase to about 3-6% per year.  At the same time the real market value has increased at the rate of the actual market and there were many years with 10-15% appreciation.  You will not see any decrease in property taxes until or unless the market value falls below the tax assessed value.  And because the market value so far out-paced the tax assessed value, they are still pretty wide apart.  And that is why your property taxes will likely be going up this year.

It’s good to know that buying or selling a home does not trigger a tax increase.  The tax assessed value goes with the house to the new home owner.  So the new sale at a value that is much higher than the tax assessed value will not have an impact on the annual property taxes.  (Other than becoming a part of general statistics used in the tax assessor’s office to track valuations).  There are, however, two things that can trigger higher taxes.  I have already mentioned publicly voted bond measures that pass.  These have no dollar limitations.  It is completely at the discretion of the voters.  The second is major remodeling.  This is not the sort of remodeling where you re-do the kitchen or put up a fence in the yard.  (I am providing general information here.  What the tax assessor uses to trigger a tax increase because of remodeling is at his/her discretion, and not mine )  This is the sort of remodeling where you add square footage to the house, or gut a house and re-build it from the studs out.  This will bring in lots of building permits and the tax assessor will be right in there to see how it affects the value.  A total remodel can trigger tax assessments that make the home virtually a new house.

The taxation process is political. And that means it was built from problems that needed to be solved and a solution that was from compromises.  So it’s not perfect.  The biggest area that I see as imbalanced is that the basis for the 3% annual increase happened in the mid-1990’s.  Older homes that had lower market values 15 years ago continue to benefit from those values.  And homes that were newer or in expensive neighborhoods continue to have taxes that are higher in comparison.  Having said that, it is my experience that on average taxes in Lake Oswego/Clackamas County still remain lower than taxes in Multnomah County (Portland), and there is no transfer tax like you find in Washington County (Beaverton/Tigard).

Without going on and on on this topic (because that would be pretty easy to do), I hope this explanation is helpful to you as you receive your tax statement in the coming weeks.  And if you are re-locating to the area, I hope it helps you to understand what to expect.

Dianne

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8K Tax Credit

The buzz in real estate right now is the $8000 tax credit for first-time homebuyers. While there is talk of the credit being extended, at this point that is an unknown. This puts pressure on anyone thinking that they may want to take advantage of it.  In order to benefit, you must close on your purchase by November 30th. Because putting a loan in place now takes about 45 days, and because there is a long holiday weekend for Thanksgiving, a buyer who is going to receive this credit needs to make an offer on a home in the next week or so.

This has got me reflecting on what sort of a home I would be interested in if I were in a position to take advantage of this opportunity. After going through the current inventory in Lake Oswego, here are 4 properties that I believe are great homes that would be ideal for a first-time buyer.

Kingsgate113 Kingsgate Rd Priced at $275,000, this house has 3 bedrooms, 2 full baths, and a 2-car attached garage.  It’s located on the South slope of Mountain Park, so it is really convenient to the Kruse Way corridor, I-5, and Hwy 217.  Oak Creek Elementary School is just down the street, and PCC Sylvania Campus is close by.  While the lot is smaller (about 4000 square feet) it is extremely private.  So you can have the easy care of a small yard, but the benefit of privacy.  That’s a tough combination to find.  Probably the most striking feature of the house (besides the master on the main, the hardwood floors, the wet bar, and the gas fireplace) is the 2-story vaulted ceiling.  Architecturally, this house is wonderful and unique.  This is not a cookie-cutter house.  When you walk in the door, you will say “Wow”.

kingsgate2

Goldendiningroom4447 Golden Lane Priced at $229,000, this is an end-unit condo with 2 bedrooms, 2 full baths, and a 2-car, attached garage.  It has expansive South facing windows so that the interior is light and bright even on those short, winter days.  The kitchen has new granite counters and there are new laminate floors.  Like the property above, this home is on the South slope of Mountain Park.  Living in this location, you benefit from the Mountain Park recreational facilities.  There are 15 miles of walking trails, tennis courts, a swimming pool and a weight room.  Living in a condominium means that you don’t have to take care of a yard or worry about maintenance of the exterior.  It’s ideal for someone with a busy job or who likes to travel a lot.

Tree Rd15139 Tree Rd Priced at $298,900, this house has 3 bedrooms , 2 full baths, and a 2-car garage.  It’s in a great location at the end of a dead-end street.  There are hardwood floors throughout.  It has a formal living room, but what I like is the openness of the greatroom for the kitchen, dining room, and family room.  There is a masonry fireplace made with used bricks that is warm and inviting.  I like to point out to anyone buying a one level home that the demand for these homes will only increase.  As the population ages, the need for homes that appeal to older people is going to get bigger.  So I do believe that one-level homes make great investments.

Tree Rd 2

18690 Don Lee Way Priced at $299,000, this house has 3 bedrooms, 2 baths, and a 2-car garage.  It’s on a lot that is nearly a quarter of an acre and just spectacular.  It’s in great condition with a new roof, new siding and windows, and a new furnace.  There are hardwood floors in dining room and the living room, and there are tile floors in the kitchen and in the entry.  The kitchen and both bathrooms have been updated.  The fireplace has a very classy looking slate surround and built-ins on both sides.

Don Lee WayI think what is striking about all of these houses is what good condition they are all in.  Under $300,000 in Lake Oswego is the lower end of the pricing spectrum.  You would normally think that this would also mean that you have to compromise by buying a house that perhaps needs some updating or some work to improve it.  That is not the case here.  You can buy not only an affordable home, but a home in great condition.  Add to that the fact that you can then get an $8000 tax credit from the Federal government and you are talking a perfect storm of opportunity.

I hope you have enjoyed learning about these properties.  If you would like more information, or if you’d like to make an appointment to view any of these properties, please contact Linda or myself and we would be happy to be of help to you.

Dianne

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Notes & Scribbles

Tax Credit ~ The First-Time Home-Buyers’ $8,000.  Tax Credit is, of course, the talk of the town (the nation, actually). It is acknowledged that it is and has been helpful in spurring the real estate market (activity in related price ranges is steady if not occasionally feverish… especially lately!)   There is much talk about extending the deadline from the current November 30th date to an as-yet-undetermined date in 2010.  While it is generally agreed that the housing market is turning the corner, and a large part of this growth is related to the tax credit, there is also concern being expressed about dispersing more government money in light of recent history.  So… nothing is decided as of now. There are talks about plans to:

  • Extend it to all home-buyers,
  • Not extend it at all,
  • Increase it to $15,000.,
  • Extend it and keep the terms the same,
  • Offer it only to service members who have been out of the country,
  • Etc.

The important thing to remember if you are a first-time home-buyer, or care about one, is that right now there is an opportunity to get an $8,000. tax credit. That means real money coming to you when you file for 2009.  We do NOT know how the debate will play out regarding extending or not extending it… AND right now there is still time to take advantage of it, but you must act now.

Oil Tanks (Reminder & Update) ~ The standards for levels of contaminants are under review. In particular, ethyl benzene and naphthalene have been changed to a “carcinogenic” classification, and therefore cleanup requirements are also changing. There is now concern over the possibility of  fumes potentially penetrating a home from underground & causing harm. Remember, if you have an oil tank underground on your property that has not been decommissioned, or if you are a Buyer considering a property with one: Underground oil tanks have a life of approximately 40 years.  After that, they leak… and what they leak is toxic.  Homeowners can be held liable for damage to soil from leaking tanks, and therefore, proper soil testing and decommissioning through a DEQ-certified environmental service is the wise choice.  If you are a Seller in this situation, I would highly recommend just doing this now and getting it out of the way.  It makes your home more attractive to potential Buyers, removes an objection, and protects you and the environment at the same time.

Loans ~ There are truly all kinds of loans out there right now for all kinds of Buyers.  FHA loans are a  current favorite, and the FHA 203 (b) is a little easier to qualify for than most conventional loans these days. There are also “Flex”  loans for teachers (administrators & school nurses can also apply!), police, and firefighters. Other than the FHA loan I mentioned, you usually want a credit score of 640 or higher, and for all of them you’ll need 3 to 3.5% down. Talk to your favorite mortgage broker for more information, or give me a call and I can refer you to some great resources.

Homes on Slopes ~ Some precautions, in light of current information gained from recent slides in Portland, Lake Oswego and surrounding areas are worth noting:

  • At no point should drain water be discharged onto slopes in an uncontrolled manner. Investigate energy dissipation devices to prevent erosion at discharge points.
  • Make sure that any fill used on the slope is “engineer-fill”.  Not all fill is able to handle the specialized drainage requirements of sloped properties.
  • Make sure gutters remain clear in order to prevent over-saturation in areas not able to handle runoff.
  • Keep drainage ditches or berms clear during the rainy season so that they do not direct water into areas where erosion & damage may occur.
  • Keep drain inlets, outlets and weep holes at foundation, retaining walls, driveways etc clean at all times.  Remove debris to prevent clogging.
  • Notice any wet spots on the property.  This may indicate either natural seepage, or leaking water or sewer line problems. Seek professional advice immediately.
  • Regularly check irrigation systems. Drip systems are preferred on hillsides.
  • Make sure roof drainage is not connected to a subsurface disposal system unless it has been approved by a geotechnical engineer.
  • Keep water from accumulating next to foundations, retaining walls or basements.
  • Guard against over-saturation on the hillside, as once this has occurred, damage can result very quickly and without warning.
  • Seek the advice of a good Engineering firm. One source is:  GeoPacific Engineering, Inc.

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Open Houses for Sunday September 27th, 2009

Sunday is going to be a great day to visit some open houses. We are enjoying a wonderful Indian Summer so the temperature will be pretty much perfect with plenty of sunshine and 28 houses being held open for your viewing pleasure.

62nd front2In particular I want to point out a progressive open house tour being held in Southwood Park. 5 homes are being held open within just a couple of blocks of each other, including my listing at 13638 SW 62nd. Remember that this neighborhood is in unincorporated Clackamas County (which means low taxes), but has Lake Oswego Schools (great for kids and re-sale values). My listing was price reduced this last week from $319,900 to $299,900. That is for a house with 4 bedrooms, 3 full baths, two family rooms, and a 21 x 11 utility room. It needs some cosmetic updating, but has a 50 year metal roof, new windows, and new paint inside and out. If you visit all 5 houses on the tour, your will receive a $5 Starbuck’s gift card. Watch for hellium balloons and lots of open house signs. You’ll find my signs on Lesser Dr to follow them in to the property.

Address List Price # BR # BTHS Total SF Prop Type Open
1547 BOCA RATAN DR $219,900 2 1.1 1,008 ATTACHD 1 to 3
13363 SW 64TH AVE $264,900 3 1.1 1,120 DETACHD 1 to 4
13561 SW 62ND AVE 269000 – 289000 3 1.1 1,594 DETACHD 1 to 4
13638 SW 62ND AVE $299,900 4 3 2,268 DETACHD 1 to 4
17752 SCHALIT WAY $329,900 3 2 1,463 DETACHD 2 to 4
13448 SW 61ST AVE $335,000 3 3 1,911 DETACHD 1 to 4
13224 SW 63RD AVE $338,000 4 2.1 1,694 DETACHD 1 to 4
9 DA VINCI ST $399,900 3 2 1,768 DETACHD 12 to 2
14371 SHERBROOK PL $495,000 3 2.1 2,550 DETACHD 2 to 4
3254 DUNCAN DR $500,000 4 3.1 3,997 DETACHD 2 to 4
2525 DELLWOOD DR $519,000 5 3 2,836 DETACHD 12 to 2
4018 COHO LN $539,000 3 2 2,489 DETACHD 1 to 4
11 MORNINGVIEW CIR $547,000 3 2.1 2,921 DETACHD 1 to 3
14867 TWIN FIR CT $579,000 6 3.1 3,641 DETACHD 2 to 4
2545 DELLWOOD DR $599,000 5 3.1 3,843 DETACHD 2:30 to 4:30
1040 UPPER DEVON LN $649,000 3 2.1 2,640 DETACHD 2 to 5
2044 RIDGEWOOD RD $799,000 4 2 2,519 DETACHD 2 to 4
1809 HEADLEE LN $1,125,000 2 2.1 3,836 DETACHD 1 to 3
18143 SIENA DR $1,197,000 5 4.1 4,152 DETACHD 1 to 3
18246 BELLA TERRA DR $1,294,000 4 3.1 4,052 DETACHD 1 to 3
17464 RIDGEVIEW LN $1,298,950 4 3.1 4,407 DETACHD 2 to 4
622 OAK MEADOW DR $1,325,000 4 3.1 4,171 DETACHD 2 to 4
664 OAK MEADOW DR $1,355,000 4 3.1 4,198 DETACHD 2 to 4
18110 Siena DR $1,394,000 4 3.1 4,311 DETACHD 1 to 3
657 OAK MEADOW DR. $1,395,000 4 3.1 4,371 DETACHD 2 to 4
17364 RIDGEVIEW CT $1,425,000 4 3.1 4,436 DETACHD 2 to 4
2572 GLEN EAGLES PL $2,395,000 5 4.2 6,490 DETACHD 12 to 3
13961 KNAUS RD $2,450,000 4 4.2 6,614 DETACHD 3 to 4:30

Enjoy the day and please take advantage of the progressive open house tour in Southwood Park.

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Industry Trends, Good or Bad?

hanging basketAs with our entire society, the real estate community is rapidly changing due to the expanding availability of computer technology and the Internet.  I have found myself musing on this subject because of a telephone call I got yesterday.  A gentleman wanted information about a house that I have listed for sale.  As I always do when I speak to someone about real estate, I asked him if he was already working with a Realtor.  Not that it will make any difference in my answering of his questions, I just want to make sure that he has adequate help and I also don’t want to step onto the toes of any other Realtors.  His response to me was that he had 3 different agents helping him, but that he didn’t think any of them were really working for him. This was because all 3 had set up e-mail programs that sent him listing information, but that none of them made the effort to speak to him in person.  Hmmmm……

I can see, as a professional, how easy it would be to fall into this pattern.  The Internet is absolutely amazing.  Our local RMLS was the first multiple listing service in the United States to go fully functional as a website.  It is constantly upgrading with more and more services.  One feature it has is a client profile program.  This allows Realtors to set up a client profile that automatically searches listings to hunt for homes that fit any particular clients criteria.  It then sends an e-mail to that agent whenever a match is found.  At this point, it will even send that match via e-mail to the client as well, if that function is added by the Realtor when the profile is set up.  It is a simple process to set up and convenient to both the Realtor and the client.  And this is where I think things get gray.  Where is the human contact?

I am as guilty as the rest.  I love technology.  I am on facebook, I tweet, as you can see, I blog.  But I have also been in this business since back in the days when every two weeks we got a printed book the size of your typical phone book.  It had all of the local listings, about 16 to a page, each with a little box with facts and one black and white photo.  We would thumb through the book to find houses that our buyers might like.  Then we’d load our buyers in our cars and drive all over town to see houses.  Looking back, I think it must have been a huge pain in the you know what for buyers.  All that time to see houses that someone else thought you might like.  It worked because it was the only method available.  Today, my clients can look at 16 color photos of each house, with a map link to preview location, and perhaps even a virtual tour, before they ever get into my car to go see the interior.  Today my clients tell me what they want to see and not the other way around.  It saves time, gas, and frustration.  It is soooooo much better.

I think the weakness in our current system is that we may loose touch with the human element.  Ultimately a client needs someone who understands their concerns and who listens to their needs.  You are trying to buy a house, but your are also needing someone who manages your concerns as you negotiate the sale, deal with the home inspection, and, especially today, help you arrange financing.  You need to build a relationship with your Realtor as you look for a home so that you know that your Realtor really is working on your behalf.  The human element is perhaps more important today than ever.

There is a balance that needs to be found.  Just as a Realtor who doesn’t have technological savvy will fall behind in the industry, I think a Realtor who relies too heavily on the techno factor and looses touch with the human needs of their clients will also fall behind.  And, call me old fashioned, there is still nothing quite as nice in business as a hand-written thank you that comes in the mail.

Linda and I are both commited to working within that balance.  We pride ourselves on being “up” on technology, and we both are commited to listening to your needs and helping to make your real estate dealings a successful experience for you as an individual.   I think that we can both honestly say that we start out in our dealings working with clients, but those clients end up becoming friends.  It is my favorite part of my job.

Dianne