April 12th, 2010
What is a Short Sale? Simply put, a short sale is the sale of real estate where the property owner owes more to the bank than it is worth. Due to financial hardship, the seller is unable to make payments to that lender. The lender is entitled to approve this type of sale since they may potentially suffer a financial loss.
A Short Sale transaction is unique and involved in that the seller and buyer, with assistance from their brokers, actually collaborate on a Proposal that the buyer will present to the seller’s financial institution. Generally, the lender is not contacted until the proposal is complete.
The property can be a “bargain”, and the proposal might request that the lender consider a price that’s lower than what the seller originally paid. However, in order to satisfy the seller’s lender, the current asking price should fall within the range of the property’s “fair market value”.
A Short Sale is an “as-is” purchase. This relieves the seller of any additional expense that could become apparent through inspections. If renovations or repairs are necessary they should be fully documented.
The experience of a broker comes into play in determining whether a particular Short Sale should be pursued. A seller who owns multiple properties may not be eligible for this type of sale. Buyers interested in a quick sale, may want to concentrate effort on “approved” Short Sales.
Every financial institution has an independent philosophy of what constitutes a reasonable Short Sale offer. Knowledgeable brokers will assist the seller and buyer in determining down payment, price, and whether a cash offer is beneficial to their proposal.
Read the entire article at our Guide to Short Sales.
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November 3rd, 2009
Question:
Our house in Eugene has an inadequate crawl space – perhaps 10” in some places. We had a good vapor barrier put it at great cost, $1200.00, because it was rough. But it is in now — is this a problem when selling?
Answer:
The truest answer to your question is ~ “it depends”
The condition of the crawlspace and what may be described as “Inadequate Clearance” could stop a sale at two different intervals. The 1st would be at the buyer “Professional Inspection Level” – depending on the advice the inspector relates to the buyer the buyer could find this to be a liability that the buyer finds too great to continue forward.
If you are going to encounter a problem in the sale it is more likely that it would be at the appraisal and financing stage of the process. Certain financing approaches have different requirements than others. VA (Veteran’s Administration) financing for instance has traditionally been more concerned with sub area clearance then other types of financing.
We have developed strategies that minimize the possibility of this hiccup occurring which include having the property pre-inspected prior to marketing so that known issues are brought forward before we have a sale in progress. This way we can resolve deficiencies ahead of the stress of a “Mid Sale Moment”.
Thanks for your contact through our blog. Please let us know if we can help.
Dave
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September 11th, 2009
Winters coming there’s no stopping it!! Cooler nights start me thinking about heating systems?? Funny how that works?? As a certified Eco Broker, I came across this information as part of my educational requirements and thought you might enjoy it.
Radiant Floor Heat
Technology Snapshot & Benefits:
Radiant floor heating can be extremely cost-effective and comfortable. There are three types of radiant floor heat: radiant air floors, electric radiant floors, and hot water radiant floors. Hot water radiant floors, or hydronic systems, are the most cost-effective systems for homes or buildings in heating-dominated climates. Hydronic systems heat water in a boiler and pump the heated water through tubing underneath floors. Most find radiant floor heat to be one of the most comfortable types of heating, because heat is evenly distributed from the floor, warming up the feet and body first. The benefits to radiant floor heating are numerous and include increased levels of comfort due to the silent operation of the system. Radiant floor heat eliminates drafts and dust problems associated with forced air systems. Additionally, radiant floor systems are invisible. There are no heat registers or radiators.
Estimated Cost Savings:
The estimated cost savings associated with the use of radiant floor heating range from 10-40% on utility bills. Due to the fact that radiant heated floors distribute heat evenly, homeowners can set their thermostat 2-4 degrees less than in a forced air heating system, which leads to reduced energy costs. Contact your local utility company to confirm what a 2-4 degree temperature decrease would equal in savings.
Compared to other hydronic heating systems, radiant floor heating allows for lower boiler temperatures, saving energy and increasing boiler life expectancy. A 45-year life is not unusual.
Issues:
With radiant floor heat, some floor coverings perform better than others. Ceramic flooring is the most common. If you want carpeting, install a thin carpet with dense padding and use as little carpeting as possible. Some floors take longer to heat than others. If a floor is allowed to cool completely, make sure to give adequate time for the floor to heat-up.
When working with a hydronic system, it needs to circulate water continuously using valves and manifolds. These valves and manifolds can be prone to mechanical and maintenance issues as well as sedimentation. If a hydronic installation develops a leak, it can be challenging to repair.
Regional Issues:
Radiant floor systems can also be used to cool spaces. Currently, the available systems are only appropriate for dry climates.
Installation (Getting It Done):
The three types of radiant floor heating breakdown further when installed into “wet” or “dry” installations. During the older form of installation, a “wet” installation, cables or tubing are inserted within a solid floor. The solid floor can be a layer of slab concrete, gypsum, or any other material that is installed on top of a subfloor. When applying a “wet” installation consult a professional to determine the floor’s carrying capacity. In a “dry” installation, cables or tubing run in the air space beneath the floor. “Dry” installations are increasing in popularity due to the fact that they are cheaper and faster.
Be sure to get two or three (or more) bids from designers and/or contractors to gain immediate perspective on the actual costs of radiant floor heat equipment installation in your area.
Here’s to a warm and healthy Winter!!
Pam Haggard
Tags: Eco Broker, Eugene Real Estate, Green Technology, Heating
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January 12th, 2009
Ok, so everyone knows the economy is not so great, mortgage loans are hard to get, and there is a glut of inventory on the market and fewer and fewer qualified buyers. The good news?? Well, interest rates are nice and low. Anything else? Hmmm…it may be time for a bit of “tough love” for buyers and sellers out there. If you are a buyer and are worried about housing prices continuing to fall, one thing to remember is you will never know you are at the bottom of the market until you see it in your rear view mirror. Conversely, if you are a seller you may be upset about the fact that you cannot get as much money for your home as you could have in 2005, or you may not be able to net as much after closing costs and commissions, or it may take your home longer than you would like to sell, or you have to do more updating, buyer concessions and repairs than you would like.
Here is a question for you to contemplate whether you are buying or selling: “Why are you buying/selling your home?” Buyers, are you buying a home to live in or to “flip”? If you are contemplating buying a home to live in, then over time your investment will be a good one, regardless of what the market is doing at this moment. It may take more than 6 months to increase your equity, but in the long term, owning a home is a solid investment choice. Sellers, the issue for you is equity — during the time you have owned your home, have you ever refinanced or gotten a home equity loan or line of credit? If so, then you have essentially already spent your equity and although this may sting a little, if you think about it in that way, it may make your net a little easier to swallow.
I think the major issue in the housing market on both sides lately is that folks are looking at their homes as a sort of “ATM” account or a stock portfolio. It is time for a mind shift back to thinking of homes as a place to live in, raise your family and enjoy for the long term, not a way to make a quick profit. Once we change our thinking, the real estate market doesn’t seem like such a scary place, does it?
Thanks for reading, happy new year to all!
Denise
Tags: Equity, Eugene Real Estate, Investments
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October 23rd, 2008
One of the indicators of a shifting real estate market is the aspect of affordability. What is affordability and what does it mean for buyers and sellers? Affordability is simply a measure of an individual’s or family’s financial ability to buy a home. Affordability can be a good economic indicator for any market but it is different for each market. An Affordability Index (AI) can help you assess your needs as a real estate buyer or seller. You can calculate an AI in any market, as follows:
AI = Median Income / Income to Qualify x 100
Income to qualify for a conventional mortgage – a median priced home less 20% downpayment, then take 25% of that to see the required income.
In short, the closer an index to 100, the better: If the index is over 100 – homes are very affordable; if the index is less than 100 – home prices are starting to exceed affordability. Eugene’s index is 95.8 – not bad, all things considered!
If you have any questions about these formulas and what they mean to you regarding your real estate decisions, contact me.
Happy calculating!
Denise
Tags: affordability, Denise Couch, Eugene Real Estate, Housing, markets
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August 9th, 2008
Hello friends of Eugene’s Alternative!
It has been interesting seeing our friends and past clients out on the town the last few months…some approach with a look of quiet understanding and compassion thinking our company must be battling an illness on the level of Stephen Kings “The Stand”.
It is true that the market is not the market of 05′ & 06′ and that overall the velocity of closing through the MLS is off by about 1/3rd of the recent peak. Property values have taken a beating in the outlying areas and upper price ranges (above $600k) however more modest homes in Eugene (South, Southwest and Eugene Core) have held value very well especially when compared to other markets. It is noteworthy that during the last recession Lane County was one of the 1st economies to get hit and the last to recover as our area was re-tooling from a timber dependent economy. This time Lane County is one of the last to feel the squeeze and our hope is one of the 1st to recover.
The fun news is that Eugene’s Alternative has recorded a 20% gain over last years business. “Wow!” and “Why?” are obvious responses; and I have them both. “Wow!” because this was not expected in this market and “Why?” is what this letter is all about – YOU! Our business grows in large part because we ride on the reputation that we have established with our community. I frequently meet new clients who don’t just know one of our past clients but several that have spoken highly about our work. We can’t thank you enough for sending you friends and family our way.
We continue to strive to be the best presented company on the internet and I think we have done it! Our goal is to have anyone who Googles “Eugene Oregon Real Estate” on alternativerealtor.com within 3 – 4 clicks. Alternativerealtor.com is now represented 4 places above “The Fold” (initial visible page) when folks are searching for real estate information for Eugene.
Alternativerealtor.com integrates:
- A real estate blog
- Video
- Virtual tours of all of our listings
- On-line Real Estate chat - A licensed REALTOR answers questions in real time
- “Click to talk” where a party can enter a phone # and will get a immediate call back
- Real Estate Searches with Google Maps!
- Podcasts are on their way!
The Web; what a way to communicate!
You may have noticed new faces! We have added staff to service the additional business and I could not be happier with the group of folks that I see when I come to work. The volume of business these folks have been doing has been exceptional and their style without compare.
Thanks so much for your support. We hope to see you and your friends in the near future.
Dave and Pam
dave@alternativerealtor.com
pam@alternativerealtor.com
Tags: Eugene Real Estate, Thanks, updates
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August 3rd, 2008
Seller’s Disclosure forms are questions written by the State of Oregon & the Federal Government that seller’s answer for the review of the buyer or interested buyers concerning the condition and history of a specific property.
In the State of Oregon Seller’s Disclosures are required in almost all real estate transactions. Court appointed receivers are one example of an entity that is exempt from disclosure law.
From my perspective Seller’s Disclosure Statements are the heaviest legal document in real estate because they survive the transaction. Seller’s must tell buyer’s what they know to be defective. If seller’s do not then the they can be held liable into the future. Seller’s Disclosure Statements are the most central document to litigation when there are issues after a sale is closed.
Questions range from the mundane: “Has the roof ever leaked?” to the exciting “Has this property ever been used as an illegal drug manufacturing or distribution site?”. My favorite question in the Oregon Seller’s Disclosure form is the last: ” Are there any other defects affecting this property or its value that a perspective buyer should know about? If so please attach additional information” …In short; bare your soul if you are selling…you will feel better and stay out of the cross-hairs of the buyer’s legal council.
Sellers are given 3 options for answers on most questions “yes” “No” & “Unknown”. Because “Yes”, “No” & “Unknown” my be inadequate to answer the full depth of the disclosure. We council seller’s to add an addendum to the disclosures and write the full extent of what is known.
From the buyer’s perspective it is a fair to ask seller’s for additional written information during sale process if the disclosures are less than fully descriptive.
Buyer’s have 5 days to review the Seller’s Disclosures and revoke their offer if they are not satisfied. The 5 day review period starts upon receipt of the document.
Seller’s Disclosures are the mechanism that relates known defects to buyers from sellers for the protection of both.
For a copy of the most current Seller’s Disclosures Statement give us a call.
Dave
302-5999
dave@alternativerealtor.com
Tags: defects, due dillegence, liability, review period, Seller\'s Disclosures
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April 18th, 2008
Here is a little info on the current market in our area…
March Residential Highlights
Looking at March 2008 compared with March 2007, the number of new listings decreased 9.5%. Additionally, the number of closed sales declined 29.1% and pending sales decreased 28.7%. See table above. At the month’s rate of sales, the 2,074 active residential listings would last 8.4 months.
First Quarter/Year-to-Date
When comparing market activity for January-March 2008 with the same period in 2007, new listings fell 1.5% (1,770 v. 1,796). Closed sales dipped 30.3% (643 v. 923) and pending sales decreased 27.4% (809 v. 1,309).
Appreciation
Comparing the average sale price for the 12 months ending in March 2008 with that of the 12 immediately prior, it appreciated 2.3% ($264,500 v. $258,500). Using the same formula, the median sale price increased 2.1% ($232,900 v. $228,000).
All information from Market Action March 2008 provided by RMLS
Tawnya Madsen, Broker
Tawnya@AlternativeRealtor.com
541.729.2350
Tags: Average, Current Market, eugene, Lane County, Real Estate Market Action, RMLS
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April 17th, 2008
I enjoyed this thought today.
If an investor owns 10 properties and puts them on an amortization schedule such that one property is paid off every year the investor can refinance that property on a 10 year amortization schedule and live comfortably for the rest of their life…(Living for Free…wow)
Here is the really fun part…that income is tax free!
Now…lets go get those properties…(We know of a screaming deal on a duplex that is not yet on the market..call quick)
…I bet you know that loans with shorter amortizations schedules offer the benefit of lower interest rates, significantly less interest paid and a pay-off date visible from the starting line.
Summoning the cash needed to make these investments cash flow positively can be a short term drain that pays off in the peace of mind of owning a self sustaining investment.
Dave
dave@alternativerealtor.com
541-302-5999
Tags: income property, Rentals, Retirement
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