Jul
24
Granite May Be Problem?
Filed Under News, real estate | Leave a Comment
This will come as a surprise to millions of homeowners that upgraded their home or bought a home because of the granite counters but some are claiming high radon levels and other problems. I was surprised by this article that stated there have been claims about granite for over a decade but may have been scoffed at as it is extremely popular. From the article:
With increasing regularity in recent months, the Environmental Protection Agency has been receiving calls from radon inspectors as well as from concerned homeowners about granite countertops with radiation measurements several times above background levels.
The older claims seem to have come from their competition and it wasn’t heeded at the time. The levels seem to be insignificant in most cases and one person put the danger on level of the chance of being struck by lightning.
William J. Llope, a professor of physics at Rice, said his preliminary results show that of the 55 samples he has collected from nearby fabricators and wholesalers, all of which emit radiation at higher-than-background levels, a handful have tested at levels 100 times or more above background.
Will this become the next mold problem, which seems to have died down, or will people ignore the possible dangers, if there are any, the way they ignore bike helmets and Nutrasweet?
photo via http://flickr.com/photos/olivepress/
Jul
23
Foreclosure News
Filed Under foreclosure, real estate | Leave a Comment
Foreclosures slow down in Denver. It may be due to new rules lengthening time for seller to repay.
This article claims declining values are the main reason for foreclosures now, not subprime loans.
New laws have slown down foreclosures.
Hawaii is comparatively low in foreclosures.
Jul
20
9 Options When Facing Foreclosure
Filed Under foreclosure, selling, short sale | 2 Comments
So you are behind in your payments. Banks are calling; telling you some odd scenarios- basically trying to scare you. Foreclosures and short sales are the number one thing people ask me about. So here are your 9 options when facing foreclosure.
1. Do Nothing - If a homeowner does nothing, they will most likely loose their home to a foreclosure auction. Loan applications generally ask if the applicant has ever been foreclosed upon. Credit reports also disclose this damaging information. Not the best option.
2. Payoff/Refinance - Completely paying off the entire loan amount plus any default amount and fees. Usually this is accomplished through a refinance of the debt. New debt is at a normally higher interest rate and there may be a prepayment penalty because of the recent default. With this option, there should be equity in the home.
3. Reinstatement - Paying the entire default amount plus the interest, attorney fees, late fees, taxes, missed payments and fees.
4. Loan Modification - Utilizing the existing mortgage company to refinance the debt or extend the terms of the loan. This may allow the homeowner to catch up at a more affordable level. To qualify you must prove to the lender you have fixed the problem that caused the late payment.
5. Forebearance - Lender may be able to arrange a repayment plan based on the homeowner’s financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.
6. Partial Claim - A loan from the lender for a 2nd loan to include back payments, costs and fees.
7. Deed in Lieu of Foreclosure (some call it jingle mail as people just send the keys back) - Give the property back to the bank instead of the bank foreclosing. Banks generally require the home be well maintained, all mortgage payment and taxes must be current. Most loan applications ask if this has ever happened. This seems silly. “The house has to be in good shape and everything current.” They would prefer to wait for the actual foreclosure than to accept a house behing in payments. That sounds unlikely.
8. Bankruptcy - This option can liquidate debt and/or allow more time. You need to talk to a qualified attorney. But here are the basics.
- Chapter 7 (Liquidation) To completely settle personal debt.
- Chapter 13 (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-5 years. I have heard this very strict and most plans don’t succeed.
- Chapter 11 (Business Reorganization) A business debt solution.
9. Sale - If the property has equity (money left over after all loans and monetary encumbrances are paid). The homeowner may sell the home without lender approval through a conventional home sale. In this case, the homeowner will get cash from the sale. On the other hand, a Short Sale, also known as a pre-foreclosure sale, can be negotiated with your lender by your Real Estate Professional if what is owed is MORE than the property’s value.
More on Short Sales and Foreclosures to come.
Jul
15
I have a post about the Beaverton numbers from the June 2008 Market Action.
Click here to read the post.
Jul
14
June 08 Portland Market Action
Filed Under Market Action, Uncategorized, portland | Leave a Comment
The full Market Action Report is here.
Virtually the same number of homes for sale on the market as last year. As many listings as I have, look to your right, I would have guessed more. Year over year we are down 2.2% for Median Price which doesn’t seem like much in relative terms. I still don’t have much faith in these style of numbers for these reasons -
- Lake Oswego - 77 Sold, 90 Pending and $100,000 between Average & Median Prices ($455K- $554K)
- NE Portland - 212 Sold, 201 Pending and $46,000 between Average & Median Prices ($280K- $326K)
- West Portland - 232 Sold, 261PEND, and $85,000 between Average & Median Prices ($399K- $484K)
Average Prices for June in these three areas were higher than the above Year-to-Date numbers. The higher average price versus May 2008 I believe is due to the higher priced listings selling and the homes in the $200,000 sitting.
There are some good homes for sale in this range but the credit crunch is hitting borrowers in this price range the hardest. The money was easy for them before with No Doc loans and those are all but gone. FHA is in full swing but with debt to income ratios being lowered and minimum credit scores being raised many can’t qualify there either.
I still think you don’t want to have your home on the market come Fall or at least be ready for some low offers from confident buyers. I expect lower prices after September due to all of the upheaval in the market. Though in some neighborhoods I have seen prices drop a lot others continue to rise. Real Estate being local is more than a phrase for different cities, it applies to neighborhoods too.
Jul
14
My Trip To Vancouver, BC
Filed Under Uncategorized | Leave a Comment
I was mesmerized. Though if my friend didn’t break his rental bike, which some question whether it was mine before an earlier stop, I wouldn’t have seen this. I saw 3 stones stacked up that were quite round and thought it was some kind of glue prank. While walking back to where my friend was working on the bike, I saw stack after stack of incomprehensible balancing. Absolutely amazing.
Also I saw a sign that said, “Three Weeks To A Real Estate License” and in the hotel there was a full size, full color banner with a guy and his spiky hair proclaiming, “Six Figures at Will with Luxury Real Estate.” My hair doesn’t spike well so I didn’t follow the sign.
Below is the map of where we biked on Saturday and a placemark where I think the balancing rocks were. Enjoy.
Jul
9
The Portland Real Estate Network
Filed Under Uncategorized | 1 Comment
PortlandRealEstateNetwork.com is collection of REALTOR’s, green consultants, real estate photographers, real estate marketing experts and real estate marketing professionals. And I have been asked to participate.
Over the next week or two other members will be introduced. My introduction just popped up there and my post should be up within an hour or so. Some I have worked with on real estate transactions and others have blogs I read regularly. Even if you aren’t a real estate professional this site will give you an inside look into what we do, local statistics and what we see in the market from our individual perspectives.
You will still always find me here talking about the fun and serious things I think you want to know. Over there you will here me talk about the fun and serious things I think professionals want to hear and you might want to come along for the ride.
Whenever I post I will try to remember to let you know about it. (UPDATE: The first one is up.) You will certainly know if you check out the left side bar where it says, “What I am doing now (more or less)”.
Jul
1
News Links
Filed Under Uncategorized, real estate | Leave a Comment
Philly Sheriff Stops Enforcing Foreclosure Notices.
Fairfax County to buy foreclosed homes.
USDA 100% loans for rural properties in Oregon. These include Sherwood, Newberg, Canby, North Plains and others. This program is getting little attention and they are trying to get the word out. When people think of rural areas Sherwood probably doesn’t pop into their mind. Here is a link to local county offices to check on eligibility requirements.
Jun
30
Cars and Homes
Filed Under buying, selling | Leave a Comment
Of course now blue Mazda 3 Hatchbacks will pop up everywhere but for two months there were none around Portland for a reasonable price. She gave a local dealer a chance but he was $4000 higher and seemed to barely hold in a laugh when she said what she would pay. Allison wanted this color and since she kept her previous car for 10 years it made sense to wait and buy what she wanted.
She found the above car on AutoTrader.com in Missoula Montana on Friday. We left at 6 AM on Saturday and she owned it at 5 PM. I had put her Neon on Craigslist in Montana just to see if we could sell it saving a long trip back in two cars. At 10 AM a buyer called about her Neon and he bought it at 6PM. Within an hour we went from having two cars to one car. Craigslist is good for some things but still hasn’t helped me sell a house yet.
In those two months she talked to a private seller in Bend who was overpriced as well. He gave her a little hope that he would drop the price but then played some games and she didn’t hound him like he probably expected. He said he would give her an answer after he checked with some dealers. If he was trying to use strategy it didn’t work.
When I posted the Craigslist ad for her I also checked it for a Mazda 3. Lo and behold there was one 40 minutes outside of Missoula Montana, on the way there! She called and the owner’s husband had taken it to Coos Bay! It would take too long to explain what went wrong here but it didn’t work out. Even though there were health issues pushing the sale of the car, he wasn’t willing to try even a little to make it work. We saw too many things going wrong and one of them did. We were glad we decided to go to Montana and get it from a dealer.
So this got me thinking about real estate of course. Some people are skeptical of FSBO’s. Some buyers feel a sense of legitimacy when an agent’s sign is in the yard. I had a flat fee seller that was going to try to find a house on their own to try to save buyer’s agent commission (this rarely works I hear). After two weeks, they called and asked for help because agents and owners wouldn’t call them back. I wondered if people doubted their interest just because they weren’t with an agent.
The Dealers she had contacted said they would call her if they found her very specific “Blue Mazda 3 Hatchback“. Two of the auto dealers called her Saturday while we were driving and said, “We found you a car!” Brand new sedans, not blue and $5000 more than what she would pay. Really…does this work on anyone but the desperate? I may understand why they called if someone said “I am looking for something with four wheels and four doors.” but she was very specific. Which is how used-car salesman get a bad name.
When I first got into real estate I picked up a buyer because the agent had them fly from Maryland to look at a condo that didn’t accept her two large dogs but had “great window coverings.” Her range was $400,000 to $600,000. I found 4 condos in the $400,000 range and two under that. She told me the previous agent couldn’t find anything under $500,000. Which gives real estate agents a bad name. She bought a condo for $425,000.
But this trip story mostly goes to show my belief that the picky buyer is going to win in this market. Allison was willing to go to Montana for what she wanted. It is easier for buyers to find the “one” home now or even the “two” homes.
The losers, i suspect, will be homes in large developments, or Mcmansions. 100’s of homes with the same floorplan where nothing stands out. Another loser in this market will be people who are wishy-washy. They will drive themselves crazy because they will love 5 homes but can’t pull the trigger because a couple of new homes come up everyday. Then they are heart broken when one of the five sells.
Oh and we saw endangered species. The quickly disappearing Hummer, towing a boat traveling 75+mph. I do love Montana’s speed limit in the fuel efficient Mazda. Then again Allison was paying for the gas.
Jun
27
Numbers and Stuff
Filed Under buying, portland, real estate | Leave a Comment
For awhile I was reporting on the numbers, statistics and prognostications that I found quite often. It is seductive to report the good news about our market. Makes us feel good. But the numbers are interpreted by whoever compiles them and compared to other numbers that someone else put together and there is at least a little bias or expectation by that person. One of the things Freakonomics did was look at research just a little different and see other outcomes, proving that it isn’t so straightforward to predict the future.
When RMLS says that average time on the market is 84 days, do you really believe that on that 84th day you will receive an offer? No. They should include the number of price drops and the percentage off of list price too. But even then it might not show seller concessions because that is private information as deemed by RMLS. So we go back to numbers and interpretations. See where it gets sticky?
The Case-Shiller Index came out and said Portland is up 0.3% March to April according to Ron Ares. We use the numbers of the past to guess the future. Few people do this really well besides Warren Buffet. The experts are really good explaining what happened but even then they disagree. There are even people who believe that the earth is flat.
I also on’t like that NAR and a couple of real estate companies are pushing that this is the “best time to buy a house”. It may be true but it sounds disingenuous coming from them. Even if it was true would you believe a car salesman that said a used car was only driven by a little old lady to church but that she was atheist?
These are historic lows in interest rates and if they rise you might regret it but you can’t time the market. Many people bought in to the market at the top because they felt they were missing out (watching the numbers). Many people are skipping the market so they don’t get trounced (watching the numbers).
If it fits your budget, do it and if it doesn’t, than don’t. In stocks for the typical person is that you add a little every month regardless of the market. You will ultimately buy at some dips and some highs but in the end you average in a good price hence the name “dollar cost averaging”. So buy when it fits right, not just because you are supposed to buy which sounds silly but it happens more than you think.
