Tag: pending

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Foreclosure Freeze/Shortsales/Market Conditions

The news has been full of headlines about the new crisis in the mortgage industry, this time affecting foreclosures. So it seems like an opportune time to look at not only foreclosures, but also shortsales and the latest market update from RMLS.

The Foreclosure Freeze
There is now discussion that the foreclosure process, which has pretty much swamped the big lenders like Bank of America and Wells Fargo, has been mishandled. The accusation is that the paperwork involved in the foreclosures was often reviewed and processed by unqualified people and by people who did not read what they were signing. I do not know if this is true or not, but I do know that I have counseled people who are in foreclosure who have not only felt powerless, but have felt that the bank was not answering their letters, returning their phone calls, or being responsive. Obviously there is going to be anger for a person in this position. That combined with the current media coverage does make me feel that we will see litigation.

Gregor Watson, a principal with McKinley Partners, recently gave a best to worst case assessment of what this means:
Best case: this is only a technical glitch. It will require some re-tooling of the process, but the process will get back on track and foreclosures will resume. This is needed to allow the glut of foreclosures to work their way through the market and then be out of the inventory.
Medium case: people will enter into significant litigation that could take years to sort out. This could slow and extend the downturn of the housing market.
Worst case: the housing market is brought to a halt because Title Companies refuse to insure mortgages involving foreclosed homes. (This would not bring the entire market to a halt: simply the foreclosures. Still, a big problem)

On the positive side the Philidelphia Inquirer reported yesterday that Bank of America intends to begin resuming foreclosure proceedings stating that they have a legal right to do so despite accusations that documents used in the process are flawed. This bodes well for the possibility that the better scenario may result. We shall see….

Shortsales
When the whole shortsale phenomenon began a few years ago I will admit that I was a skeptic. It reminded me of the buy-a-house-with-credit-cards schemes. Just too simple to be true. Really? You could just ask your bank to forgive part of your mortgage so that you could sell it for less? Really? As time has gone by I have come to see that not only are shortsales here to stay, they are a significant part of the market.

I think shortsales do present remarkable opportunity, as do foreclosures. It allows a house to be sold for market value and not have an asking price that is based upon a value/debt that is several years old. But shortsales are not for everyone. I want to make if very clear that if you are a homeowner considering a shortsale, you need professional and legal advice far beyond the scope of what I am discussing here. So I want to directly address buyers.

The buyer best suited to benefit from a shortsale is the investor. This is because the shortsale is so uncertain and the process takes months. A buyer who is shopping for a home may have the patience for this, but is usually not in a position to wait 3-5 months and then learn that they lost the house to another bid or that the shortsale was not approved. Whereas an investor is not waiting with a moving truck full of furniture. If it works, it works. If not, that’s OK too. For the investor able to be patient, it can present real opportunity. I have personally seen several homes here in Lake Oswego that sold for values that made my jaw drop in the shortsale scenario. Just know what you are getting into.

Keeping it Local
Here in Lake Oswego we currently have an active listing inventory of 626 listings (condos and houses). Of those 37 are Bank-owned Foreclosures and 70 are shortsales. And this means that about 82% of the market is neither a foreclosure nor a shortsale. It’s a home owned by someone who is not in it upside down and who has perhaps even taken loving care of it. So there is a house out there for you whether you are an investor, a home buyer looking for a personal residence, or even a home buyer looking for a personal residence with the patience of an investor.

Also keeping it local, the latest RMLS Market Action Report offers the following information about area 147, which is Lake Oswego and West Linn Combined
Total active listings = 1025
Total pending sales = 84, a decrease of 24.3% over the same time one year ago
Average sales price = $432,200
Average days on the market = 186
Change in values over the same time last year = -9.3%
Change is closed sales, year to date = -22.3%

I consider myself to be a very positive person. The thing to do in this economy is look for how it can work in your favor. That may mean waiting, but that may also mean pouncing on opportunity. The subject today is pretty complex. Please contact Linda or myself for more information, to ask questions, or to get property information. We are here to be of help.
Dianne

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News & Notes

  • Mortgage Rates: One thing to remember about what you hear on the news is that good news for the economy in general means rates are going to rise for buying a house.  Bad news for the economy means rates stay where they are if they are low or get lower.  Here’s what MBS Quoteline is saying:  ” The Fed’s recent announcement that it may purchase additional Treasury securities (quantitative easing) to stimulate the economy has magnified the importance of economic news and increased daily volatility. Investors now evaluate each fresh piece of data in terms of its expected impact on Fed policy, and mortgage rates receive an extra benefit from weaker than expected data. In general, weaker economic growth leads to lower future inflation, which is favorable for mortgage rates. In addition, investors now expect higher levels of bond purchases by the Fed after weak data, and the increased demand also would be positive for mortgage rates. Of course, stronger than expected economic news will have the opposite effect and will push rates higher more quickly than usual.”
  • Selling Tip Of The Week: Color is important when selling your home.  I’m sure you’ve heard that it is good to use neutral tones on the walls, and your Realtor can advise you on the latest/most popular shades, but I’ve noticed that some people misinterpret “neutral”.  Neutral does not mean white.  I know that white is fun to play with tone on tone, but if you do too much white, it will make your home feel “cold” and people will have a difficult time “feeling the love”  : )     So, if you’ve got white walls that you think look realy clean and make your rooms look bigger, and off white or white carpet throughout…   you need to talk w/your Realtor about some light taupes or other schemes to bring some warmth into those rooms.
  • Buying Tip Of the Week: Pay attention to the garage in your new home.  What are you going to use it for?  I say there are two kinds of people… those who park in their garage and those who store “stuff” in it.  Does the garage in the home you’re contemplating meet your needs?  I recently had a Buyer about ready to write an offer when they realized that her beloved long-ish minivan would not fit in the garage.  Now she had a choice to make…  the home that fit the rest of the family’s needs… or the car?  In many older homes, garages were not made to fit the longer/larger vehicles of today.  So…  try your car out in the garage if you have any questions about it.  And if you have trouble squeezing it in, you might consider “carriage doors” that open out, as they are mounted on the outer side of the frame as opposed to the inner side which is where up & down sliding doors are mounted, thereby reducing your space.
  • “Should-I-Buy-Now-Or-Wait?-Calculator” – Here is a nifty tool from First American Title Company (came to me courtesy of Pam Edwards in the Clackamas Office… Thanks, Pam!). It allows you to calculate the difference between buying now & waiting… So, let’s say you found a home that is priced at $500,000.  You know rates are good now and are expected to rise, and/but you are thinking that maybe the house will come down in price (let’s say you think it may eventually come down to $450,000.) and so you are considering holding off on your offer.  This tool will allow you to punch in parameters and see just how much the picture would change if interest rates go up and your home lowers in value.  Pretty cool!  Here’s the link:  “Should-I-Buy-Now-Or-Wait?-Calculator” There are some additional tools there as well: Buy or Rent, for instance.

Very Best,

Linda

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Market Activity 10/4-10/10

Market activity in Lake Oswego last week brought us 19 new listings, 7 pending sales, and 6 closed sales.

See below for further details:

NEWLY LISTED (Oct 4-Oct 10, 2010)

Address List Price Bedrooms Baths Sq feet Prop Type
668 MCVEY AVE $129,900 2 1.5 992 CONDO
159 OSWEGO SMT $175,000 2 2 1,506 CONDO
1416 CHERRY CREST DR $259,000 5 3 2,559 DETACHD
14138 KNAUS RD $296,573 4 2 2,001 DETACHD
53 ORIOLE LN $304,900 3 2.5 2,072 DETACHD
17952 Cardinal DR $309,900 3 2 1,702 DETACHD
743 10th ST $325,000 2 1 1,019 DETACHD
5311 CHILDS RD $349,000 4 2 1,764 DETACHD
28 PREAKNESS CT 350000 5 4 2,871 DETACHD
72 CONDOLEA WAY 375000 2 2.5 2,958 CONDO
880 BOCA RATAN DR 399900 5 3 2,364 DETACHD
5916 SUNBROOK DR 459900 3 2.5 2,617 DETACHD
1189 SUNNINGDALE CT 484900 3 2.5 2,072 DETACHD
18064 JENIFERS WAY 549950 3 2.5 2,639 DETACHD
22 SW DEL PRADO ST 559900 5 3.5 4,056 DETACHD
5371 LANGFORD LN 694950 4 2.5 2,950 DETACHD
18094 PILKINGTON RD 739950 3 3.5 3,505 DETACHD
5087 LAKEVIEW BLVD 749000 4 2.5 3,200 DETACHD
4256 LAKEVIEW BLVD 1095000 4 3.5 3,117 DETACHD

PENDING SALES (Oct 4-Oct 10, 2010)

Address List Price Bedrooms Baths Sq feet Prop Type
44 CRESTFIELD CT $75,000 2 1 923 CONDO
86 KINGSGATE RD $94,900 2 2 924 ATTACHD
15139 QUARRY RD $224,900 3 2 1,328 DETACHD
5160 TUALATA LN $304,900 3 2 1,470 DETACHD
1740 YARMOUTH CIR $510,000 2 2.5 1,960 DETACHD
13596 STREAMSIDE DR $579,900 4 2.5 3,430 DETACHD
2811 ARROWHEAD CT $1,000,000 4 3.5 3,740 DETACHD

SOLD (Oct 4-Oct 10, 2010)

Address Original Price Closed Price BD/BATH Sq feet Prop Type CDOM
6125 FERNBROOK ST $264,999 $230,000 3/1.5 1,271 DETACHD 180
1684 BOCA RATAN DR $248,900 $240,000 3/2.0 1,611 ATTACHD 531
17683 ARBOR LN $339,900 $305,000 3/2.0 1,946 DETACHD 70
875 LEE ST $378,900 $345,500 3/2.0 2,200 DETACHD 483
2329 STONEHURST CT $539,900 $530,000 4/3.0 3,275 DETACHD 12
5700 CHILDS RD $749,900 $749,900 4/2.5 2,865 DETACHD 98

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings

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News & Notes

About Town:

  • What would YOU lock in the vault?  That is what the city of Lake Oswego is asking residents.  On 10/10/10 the city will culminate the celebration of its Centennial with the burial of a time capsule.  Submission of ideas are due by 9/30 HERE.
  • The Foothills Dock is now open!  Ribbon cutting is set for… tonight!  9/30 at 5:30PM.
  • Dianne has given you a heads-up regarding the Lake Draw-Down.  The draw-down will be 22 feet according to the city’s site.  We’re warned of increased truck traffic during this time.  Refill will begin in January, 2011 and continue until May.  Here is a link which includes videos & information on what the lake will look like during the draw-down.
  • October 16 marks this year’s “Neighbors Helping Neighbors” event.  If you would like to contribute your time to helping with yard work, tree & shrub removal, trimming and more… or if you need help yourself, please call: 503 635 0257, or visit the site HERE.

Mortgage Updates from Pat Goodell of Academy Mortgage:

  • Fannie, Freddie and FHA have come out with new condo guidelines that are meant to make it easier for condos to be approved, and for buyers to be able to purchase a condo.
  • FHA will be changing the allowable amount sellers can pay for closing costs/pre-paids.  Currently at 6% and will go to 3% — no date set but expected by the first of the year.

Enjoy that summertime weather for the next few days!   It should be great for touring homes on Sunday.  I’ll be holding two of my listings Open in Lake Oswego on Sunday…. come & say hi!  More on that & the rest of the Open Houses for you on Saturday.

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Market Activity Sept. 20-26, 2010

Last week brought 19 new listings onto the market, 11 pending sales, and 11 closed sales.

There is a new listing worth getting excited about. It’s a condo right on the lake at the East end off of McVey. It was previously listed for $549,000, and is now a foreclosure listed for $140,000. Seriously, waterfront for $140,000. My guess is that the bank who now owns it knows that with the lake level lowered right now for the sewer replacement project, they know it will not show well. But if you are willing to look at a mud bog until next summer when the lake is refilled, you could get yourself one screaming deal. It’s just 992 square feet, with 3 bedrooms and 1 1/2 baths. Give Linda or myself a call if you want more info.

In the mean time, here is last week’s report.

See below for further details.

NEWLY LISTED (Sept 20-26, 2010)

Address List Price Bedroom Baths Sq Feet Prop Type
44 EAGLE CREST DR $100,000 2 1 908 CONDO
668 MCVEY AVE $140,000 3 1.5 992 CONDO
4085 JEFFERSON PKWY $168,900 2 2.5 1,851 CONDO
10 ORIOLE LN $299,500 3 2 1,654 DETACHD
6173 WASHINGTON CT $314,000 3 2 1,440 DETACHD
16026 PARKER RD $330,000 3 1 1,620 DETACHD
4260 SOUTHSHORE BLVD $349,000 2 2 1,268 DETACHD
106 KINGSGATE RD $349,900 3 2.5 1,669 DETACHD
2602 ORCHARD HILL PL 409900 3 2.5 2,568 DETACHD
17187 CARLSON CT 435000 4 3 2,082 DETACHD
979 DEVON LN 457000 4 3.5 2,162 DETACHD
2250 PARK RD 499000 3 2 2,072 DETACHD
19263 MEGLY CT 559900 5 3 3,213 DETACHD
17981 MEADOWLARK LN 584900 3 2.5 3,250 DETACHD
5975 NEWCASTLE DR 649000 4 2.5 3,339 DETACHD
1969 PALISADES TERRACE DR 775000 4 2.5 3,930 DETACHD
312 9th ST 782850 4 2.5 2,640 DETACHD
453 9th ST 797950 4 3.5 2,859 DETACHD
3030 Childs RD 999950 5 4.5 7,076 DETACHD

PENDING SALES (Sept 20-26, 2010)

Address List Price Bedrooms Baths Sq Feet Prop Type
200 BURNHAM RD $149,000 2 2 1,335 CONDO
18462 DON LEE WAY $179,900 4 2 1,904 DETACHD
16200 PACIFIC HWY $184,900 2 2 1,190 CONDO
1070 HALLINAN $321,000 3 1.5 1,653 DETACHD
32 CHURCHILL DOWNS $379,900 4 2.5 3,016 DETACHD
1000 ATWATER RD $389,900 4 3 2,200 DETACHD
17491 BLUE HERON DR $459,900 4 2 2,396 DETACHD
230 4TH ST $475,000 3 3 2,165 DETACHD
13143 VERMEER DR 499000 3 2.5 2,288 DETACHD
14246 KIMBERLY CIR 615000 4 2.5 3,520 DETACHD
844 5TH ST 829000 3 3 2,590 DETACHD

SOLD (Sept 20-26, 2010)

table >

Address Orig. Price Close Price CDOM Sq Feet Prop Type
6011 SHAKESPEARE ST $195,000 $196,000 1 1,318 DETACHD
5060 FOOTHILLS DR $229,500 $210,000 32 1,252 CONDO
18929 INDIAN SPRINGS RD $324,900 $324,900 7 3,380 DETACHD
595 6TH ST $349,000 $349,000 3 893 DETACHD
19 FALSTAFF ST $500,000 $405,000 169 3,207 DETACHD
19451 SW DOGWOOD CT $559,900 $527,900 104 3,547 DETACHD
577 2ND ST $595,000 $535,000 211 1,459 CONDO
3030 WESTVIEW CT $859,000 $727,500 677 3,415 DETACHD
5288 DENTON DR $759,000 $739,000 62 3,240 DETACHD
3540 RED CEDAR WAY $919,000 $740,000 177 4,100 DETACHD
1318 HORSESHOE CURV $1,275,000 $1,090,000 165 3,554 DETACHD

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings

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“How Are Things In The Market Right Now?”

“How Are Things In The Market Right Now?” Hmmm… I guess I’m writing more of a philosophical or “opinion piece” today. This is such an interesting question… I hear it every day in one form or another.  Often it is accompanied by “Things are pretty bad, aren’t they?  I hear they’re getting worse.” or “I’m ready to buy but think maybe I should wait till prices drop more.” or “I read that….”   All of these are motivated by a combination of media influence, a desire to make good decisions, and some good ‘ole car-wreck-neck-jerking thrown in.  We are all in the same boat, and Realtors have some inside knowledge that folks would like to have. The truth is, aside from offering some statistics (local, please), and some of what I’ve heard experts predicting, I always say the same thing… “I don’t really believe in statistics… in my own life anyway.”   Real Estate is like that as a profession.  You need a combination of faith, perseverance, and real skill to offer clients in order to achieve successful outcomes. I usually say ( in addition to the numbers or current trends I’m aware of), “Things are pretty good here in my world”.  What you really need to assess is:  How are things in your world?.

You’ll notice that there are fewer Realtors around than there used to be.  One thing you can be sure of; The Realtors who are in business right now are in business for a reason…  namely the three I outlined above. Talk to your Realtor, and begin to assess your own situation.

Is the market in the right shape for your purpose right now?    I don’t know- Ask yourself:

  • Are you needing a bigger home/Is your family growing etc?
  • Is there a change in your living- or relationship-status that necessitates some movement?
  • Are you being transferred in your job?
  • Would you really like to (or do you need to) downsize?
  • Is a change of schools for your kids in order?
  • Have you been wanting a real estate  investment opportunity?
  • Do your friends all live on the other side of town?

These are just a few of the reasons you might want to take advantage of the current really low prices, and really low interest rates. So… for those three variations on questions I get about the market:

  • Assess your own local market data, and talk to a mortgage broker about your own unique set of facts pertinent to your choice to act or not.  Then make the Right Decision for you based on more than rumors or innuendo.
  • As far as prices go… no one really knows for sure, but one thing is true: According to the experts, interest rates are not going lower….  So even if you wait for home prices to lower a little more (assuming they do… locally in the metro area , according to RMLS, sold prices increased from July2010  to August 2010 by 0.8%… & 1% from August ’09)   you will have negated any benefit by most likely settling for higher interest rates.
  • When reading or listening to news reports about real estate- “Consider the source”… and the subject matter.  Very often folks are hearing national information on the national news, and while that can be interesting in gauging where markets might be headed based on experiences in the past (what states declined first… what states followed in both negative and positive trends, and in what order…) the only really relevant information to your particular situation is local.  The adjunct to that of course is how that information intersects with your personal goals.

Read our Market Activity Report every Monday. Talk to your Realtor.  Talk to a Mortgage Broker.  Get the facts and then decide for yourself.  Life is happening everywhere… all at the same time!  : )  Don’t let fear and natural but morbid fascination with negative news stories run your life.  (That’s MY two cents!  : ) Very Best, Linda

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Market Activity September 6-12, 2010

Market activity last week brought us 10 new listings, 11 pending sales, and 3 closed sales.

See below for further details.

NEWLY LISTED (September 6-12, 2010)

Address List Price Bedrooms Baths Sq. Feet Prop Type
2 MOUNTAIN CIR $160,000 2 1.5 1,504 ATTACHD
5063 FOOTHILLS DR $225,000 2 2 991 CONDO
17335 ASHLEY CT $294,900 3 2.5 2,161 ATTACHD
532 2ND ST $350,000 2 2.5 1,394 CONDO
1551 WOODLAND TER $499,000 4 2 2,712 DETACHD
5188 MADRONA ST $549,000 3 3 3,183 DETACHD
17682 MARYLBROOK DR $649,900 4 2.5 3,799 DETACHD
3883 TAMARACK LN $669,000 4 2.5 2,898 DETACHD
13978 Westcott CT 675000 3 3 3,361 DETACHD
1088 WESTWARD HO RD 725000 2 2 1,837 DETACHD

PENDING SALES (September 6-12, 2010)

Address List Price Bedrooms Baths Sq Feet Prop Type
200 BURNHAM RD $139,000 2 1 1,216 CONDO
16250 PACIFIC HWY $139,000 2 2 1,327 CONDO
6125 FERNBROOK ST $239,000 3 1.5 1,271 DETACHD
1496 BOCA RATAN DR $249,900 3 1.5 1,403 ATTACHD
875 LEE ST $349,900 3 2 2,200 DETACHD
2329 STONEHURST CT $539,900 4 3 3,275 DETACHD
18263 ANDUIN TER $575,000 4 3 3,100 DETACHD
550 MIDDLECREST RD $584,900 3 2.5 2,240 DETACHD
13566 STREAMSIDE DR 598000 3 2.5 3,123 DETACHD
5657 VICTORIA CT 689900 4 3 3,421 DETACHD
1641 ENGLEWOOD DR 695000 4 2.5 4,204 DETACHD

SOLD (September 6-12, 2010)

Address List Price Closed Price Bedrooms Prop Type Baths Sq Feet CDOM
745 BERWICK CT $549,000 $520,000 3 DETACHD 2 1988 143
2125 RIDGE POINTE DR $879,000 $790,000 4 DETACHD 3.5 3489 171
13764 KNAUS RD $1,375,000 $1,200,000 4 DETACHD 4.5 4805 52

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings

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Market Activity Aug 30-Sept 5, 2010

Market activity last week brought us 16 new listings, 12 pending sales, and 13 closed sales.

See below for further details.

NEWLY LISTED (August 30-Sept 5, 2010)

Address List Price Bedrooms Baths Prop Type
49 OSWEGO SMT $85,000 1 1 CONDO
3924 CARMAN DR $199,000 2 2.5 ATTACHD
23 GREENRIDGE CT $235,000 2 1.5 ATTACHD
5713 SW KENNY ST $284,900 3 2 DETACHD
4347 SILVER CT $312,000 3 2.5 CONDO
9 ORIOLE LN $335,000 3 3 DETACHD
132 MIDDLECREST RD $364,900 3 1 DETACHD
12139 SW ORCHARD HILL WAY $399,000 4 2.5 DETACHD
200 BURNHAM RD 429000 3 2 CONDO
1900 GREENTREE RD 449000 4 3 DETACHD
2634 ORCHARD HILL PL 449500 3 2.5 DETACHD
1033 YATES 549900 4 3.5 DETACHD
17590 BLUE HERON DR 850000 4 3 DETACHD
100 GARIBALDI ST 999500 5 3.5+.5 DETACHD
4464 LAKEVIEW BLVD 1399000 3 4 DETACHD
1300 FAIRWAY RD 4490000 4 3.5 DETACHD

PENDING SALES (Aug 30-Sept 5, 2010)

Address List Price Bedrooms Baths Prop Type
512 S STATE ST $99,900 1 1 CONDO
45 EAGLE CREST DR $119,900 1 1 CONDO
41 GREENRIDGE CT $175,000 3 2.5 ATTACHD
74 GREENRIDGE CT $259,900 3 2.5 ATTACHD
541 2ND ST $499,000 2 2 CONDO
15 SCARBOROUGH DR $499,000 5 3.5 DETACHD
577 2ND ST $535,000 2 2 CONDO
339 6TH ST $549,900 3 3.5 ATTACHD
1050 Schukart LN 599000 3 3.5 DETACHD
3030 WESTVIEW CT 795000 4 2.5 DETACHD
490 COUNTRY CLUB RD 869900 5 4 DETACHD
16772 ALDER CIR 1995000 4 3.5 DETACHD

SOLD (August 30-Sept 5, 2010)

Address Orig./Price Close/Price Bedrooms Prop Type Baths CDOM
5857 CARMAN DR $190,000 $162,000 2 DETACHD 1 92
668 MCVEY AVE $329,998 $252,000 3 CONDO 1.5 647
116 TOUCHSTONE TER $299,000 $270,000 3 CONDO 2.5 327
1851 KILKENNY DR $450,000 $305,000 4 DETACHD 3 2
75 CONDOLEA WAY $389,000 $369,000 3 CONDO 3 133
1480 Hemlock ST $388,800 $369,000 4 DETACHD 3 92
16 PARTRIDGE LN $419,000 $385,000 3 DETACHD 2.5 104
13909 MAJESTIC CT $399,900 $415,000 4 DETACHD 3 126
26 INDEPENDENCE AVE $574,000 495,000 4 DETACHD 3 117
5722 CHARLES CIR $599,900 560,000 4 DETACHD 2.5 69
17446 BRYANT RD $795,000 730,000 4 DETACHD 4 1515
13777 Cameo CT $1,950,000 1,400,000 5 DETACHD 4.5 411
95 IRON MOUNTAIN BLVD $1,550,000 1,400,000 4 DETACHD 5.5 631

Criteria: Homes in the 97034 and 97035 zip code, listed, pending or sold between the dates listed above as reported by the Regional Multiple Listing Service (RMLS). DETACHD refers to Single Family Detached Residence, MFG refers to manufactured housing, and ATTACHD refers to single-family residences with some portion of the structure attached to another property, but not constituting CONDO ownership. DOM stands for days on market, or the number of days from when the listing became active and when it received an acceptable offer, with CDOM standing for “cumulative days on market” accounting for “refreshed” listings

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More Control Issues

I wrote a couple of weeks ago about what you have control over when Selling your home and what you do not.  I promised to address some “control issues” around Buying as well, and so here are a few thoughts:

Lenders:  Do you have control over whether you are approved to purchase a home that you fall in love with? Yes. When you begin your search for a new home, the first stop ought to be a good lender.  A decent percentage of home Buyers do not begin this way, and it is the source of much disappointment and frustration.  I often will take Sellers out looking for properties when I list their home on the market so that they can begin to get an idea of what they like & don’t like in a new home, (and it gives them the opportunity to see how other homes are presented… giving them *hopefully* an incentive to tidy theirs up and create a good showing : )  Very often these clients of mine poo poo talking to a lender before we venture out… they think they know about what they are approved for, and/or will tell me they talked w/someone awhile back who approved them for such & such.  I’ll admit to giving in at times to Buyers who have not yet been to a lender or who have not handed me an approval letter as yet, and I will tell you I have seen tears when people think they’ve found “the one” & then decide that’s a good time to talk to a lender. Here are some pointers:

  • Get the facts up front before you begin looking for properties.  That way you are only looking at homes you would be actually able to purchase. In any undertaking, you want to begin with facts so that you can make good decisions about how to proceed.
  • Don’t worry about taking a lender’s time before you have a property in mind.  This is what they do.  They are used to it.
  • Listen to your Realtor and any other qualified advisors when you are looking for a good lender.  Get a good referral.  You should have at least three from which to choose. ***The lender is the entity holding the most amount of control in the end stages of any mortgage transaction.  A lender who knows and works well with your Realtor will be inclined to nurture the process… especially in the end stages.  And one who is experienced and skilled will be able to field any last-minute issues that may arise so that you actually get to the completion of your transaction.

Negotiating – Do you have control of the negotiation process? Yes.

So, you’ve fallen in love with a property, and you are “countering” with the Sellers over various items.  Your job is to keep a cool head, and remember what is important to you.  Your Realtor will give you good advice on pros & cons of different options, and in the end, it is your decision how to proceed.  Remember your budget and look at the bottom line.  That said, also give some thought to how important a few dollars a month may or may not be to you if you are achieving other goals.  Remember… You’re in the driver’s seat. You get to decide what’s right or wrong for you.

Earnest Money or Promissory Note? – You make this decision too, and the one about how much it will be.  I advise my clients that the earnest money is their statement to the Seller reflecting their sincerity (earnestness : ) in wanting to purchase their home.  The Seller will be taking their home off of the market if they accept your offer, and so you are showing good faith, and in the event you do NOT abide by the contract you are, in essence, compensating them for taking their home off the market for you for a time.

An earnest money check always gives a better impression with an offer (and you are trying to get them to agree to accept your offer right?) than a promissory note. The exception to this would be if you are out of state and making an offer without the ability to hand your Realtor an earnest money check.  People tend to understand this circumstance.

Your earnest money goes toward the bottom line of your transaction, and is held by the escrow office as a neutral third party while your transaction is in process.    If, for instance, you find something during your inspection period that causes you to want to retract your offer, escrow will return your earnest money, and you can begin looking for another suitable property.  The contract also states that you must be able to get funding… so if you are not able to obtain funding through no fault of your own, you should receive your earnest money back as well.  If the home does not appraise for at least the sale price, and either you, the Seller, or both of you are unwilling to negotiate price or come to some other arrangement, you should receive your earnest money back. The only way to lose your earnest money, really, is to violate some term of the contract.  As long as you meet the time lines in the contract, and perform as you have agreed, your earnest money is safe.

Well, I hope that these tidbits were helpful.  That’s enough discussion of  “control issues” for now…  I’ve got to run and assist some fantastic Buyers in making some decisions of their own!

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“Control Issues”

I seem to keep bumping into a concept lately that I thought might be nice fodder for a post in the Blotter.  How much control do you think you have in general in your life?  How much control would you LIKE to have?  …Are you sure?

In real estate there are certain things we can control and certain things we cannot.  I thought it might be fun to delve into some examples of this:

  • If you are selling your home, do you have control over the location? Well, no.  BUT, when making a decision about where to buy, that would be a good time to look down the road and take that property’s location into account for future resale purposes.  If you are getting a REALLY good deal on a home because of where it’s located, you might want to think twice.
  • If you are selling your home, do you have control of it’s condition? Absolutely.   Now, you may say, “I only have a certain amount of money to spend on getting this place ready for sale”, but in the end, you are making the decisions, and have been making the decisions… and now here you are.  Control of this factor aside though, no matter what kind of financial position you are in, this is always an issue when selling your home… “How much should I put into this home I am moving out of?”  When I am working with a client in a position where there are limited funds, we sit down together first and I go over my list of items that will make the property most appealing to the greatest number of Buyers.  THEN, we get real.  Some things, like paint, are inexpensive, and realistically can be handled by the homeowner themselves. Some things require professional assistance.  Sometimes it is just a matter of rearranging a few pieces of furniture and perhaps doing your moving “sort-through” now & considering it work you’ll have to do to move anyway… Tends to make it purposeful and even fun!  Goodwill will love you, and a storage facility or a POD might be a good option to clear your home of things that only make the rooms look smaller.  You’ve heard it before: “The way you live in a house is NOT the way you sell a house.”  So… you do have control of how your home will present to the Buying Public.  Just lay out the facts & pragmatically decide the best way to address each issue.  Buyers in this market are picky… they can afford to be with the number of homes from which to choose.  You have to reveal the gem that is YOUR home, and when you do, someone else will walk in and love it the way you did when you were in that position.
  • Do you have control over the terms of an accepted sale agreement? Yes.  You may not agree with me, but after all the options have been presented and discussed between you and your Realtor, you get to say yea or nay.  It’s your house and you don’t have to sell it for terms that are not to your liking.   Now… do you sometimes have to give a little here or there in order to make your transaction happen?  Yes.  For instance, when there are repairs requested that you are advised will, or may, be required by the Buyer’s lender, it might be in your best interest to make them so that you can close… that is if you want to.  If there are safety issues or other significant ones that have been uncovered in inspection, many will also want to address those prior to close.  The Golden Rule tends to work well here, and usually you are in the process of negotiating terms for your own purchase, so you get to enjoy a 360-degree view of how it feels to be on either side. Again though, you are in control.  You can always say “no”, and the chips will fall where they fall.
  • Are you in control of price & your home’s position in the marketplace? Yes.   You obviously don’t control what other people have sold their homes for around you, or what has happened in the market in general, but after your Realtor presents you with comparable data (i.e. available facts), you make the decision regarding what number will go on your flyers and on the MLS. Many Realtors will let you know that they will or will not take on a listing depending on the “reasonableness” of the price desired by the Seller.  You still are the one who makes the final decision on price, and perhaps the decision on whether to work with that person or not.  As a Realtor myself, I will tell you that most Sellers want to price their property too high for the market (sorry… it’s true : ).  Consider that a Realtor who is advising you does not have much of an incentive to talk you into pricing your home too low…  being as their compensation is based on the sale price.  Worth a thought.  I’d venture a guess that you are probably being given the straight scoop.  I like to tell my clients that all we are doing is looking at the facts, and pricing accordingly…  why would you do anything less?  Dianne and I have been reporting that the facts show homes selling now seem to be the ones either very new on the market, or very old listings that have dropped their prices considerably & often.  Ask yourself how long you want to be on the market, and how many price reductions you are willing to go through if you price against what the facts are telling you.  You will gain the most exposure when your home is fresh on the market.  Take advantage of that and price it right. Also.. remember that you are most likely buying as well…  any market conditions will be in effect on either side of the negotiation table.
  • Are you in control of marketing your home and the exposure it gets? Yes.  That is your Realtor’s job, AND, you are part of this conversation and deciding what kind of promotion you want.   Talk to any prospective Realtor about how they plan to garner exposure for your listing.  Look at the words they are choosing for your promotional pieces and make sure you like how the property is being presented. Make sure their is a good deal of Internet exposure, and that all the details about your home are factual.  It’s also a good idea to go over marketing with your Realtor on a periodic basis to gauge feedback and results. Give your input, and make sure to voice any concerns, but then trust your professional, and put your energies to how the house itself  is presenting each day to prospective Buyers, and to your own search for a new home.
  • Are you in control of the timing of your transaction? No.    You really never know when that Buyer will walk in your door and have the reaction “This is the one!”.  You need to have your Windex ready every day as you leave for work & at least briefly touch each of your sinks & fixtures.  You want them to shine when that Buyer walks in. Check your home’s entrance as you leave to make sure that there is that great first impression just waiting for the right moment. Once that happens, and your Buyer has arrived, there are a few things you CAN control about timing, such as when you are willing to be out of your property- unless there is a set date that the Buyer absolutely needs… If this happens, then you are back to “Do I want this transaction to go forward?”… I have not said that there may not be a few hard decisions here & there : )   For the most part, this is why you picked the Realtor you did.  Let them help you through any rough spots.  In the end stages of your transaction, the Buyer’s lender will truthfully have a good deal of control over what happens in what kind of time frame. Know that even if the timing seems like a roller coaster ride, all the dominoes will fall into place and the timing really will, most always, take care of itself with some good choices, and sure, steady footing as you move to close.  Accept help from your Realtor during this time, and get ready to move into your new home!

This seems like a lot for now.  The subject of “Control” and under what circumstances you have it and to what degree is such a rich subject.  I promise I’ll come back to it, and perhaps focus on the Buying angle next time.   In the meantime… Happy Summer!

Very Best,

Linda