The Alternative Blog

Q&A: Inadequate Crawl Space

2009-11-03T16:11:00.000-08:00

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

Winter is on the Way

2009-09-11T14:08:00.000-07:00

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

Let's Get Real about Real Estate

2009-01-12T10:51:00.000-08:00

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

Are we in an “affordable” market yet?

2008-10-23T16:44:00.000-07:00

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

Eugene's Atlernative Update and Thanks!

2008-08-09T16:52:00.000-07:00

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

What are Seller's Disclosures and why do I care?

2008-08-03T14:30:00.000-07:00

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

Market Action Update for Lane County 2008

2008-04-18T17:55:00.000-07:00

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

Living Free on Residential Investment Propeties...

2008-04-17T22:17:00.000-07:00

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

Charming Eugene,Or. home

2008-04-09T15:38:00.000-07:00

What is a "FSBO"?

2008-04-09T15:17:00.000-07:00

"FSBO" is an acronym for: For Sale By Owner. In the real estate world you might hear them referred to phonetically as a "Fizbo". For Sale by Owner properties are easily found in craigslist.com under Oregon, Eugene, Real estate for Sale. Click here

Many sellers will attempt to sell their properties themselves prior to seeking professional representation. Most are open to compensating a buyer's agents if a buyer is professionally represented. (This means that there is often no cost to a buyer to seek professional representation)

Eugene's Alternative represents many buyers in FSBO's transactions every year.

Our clients are counseled to have Eugene's Alternative make the first contact with the seller to build the relationship, assess the story of the property and schedule a viewing time. Eugene's Alternative then reports back to our clients with the information and timing. Having Eugene's Alternative make the 1st contact is important because we have a high level of success negotiating buyer's agent compensation paid by the seller when Eugene's Alternative makes the 1st contact.

The sale fall-through rate without a professional representative is very high. Some of the qualities that professional representation brings to a transaction are:

Safety - All agreements are reviewed by a licensed Broker who has experience and understands the requirements of a legal real estate transaction in the state of Oregon.

Professional Perspective - There is nothing more dangerous to a transaction than two confused and emotional parties trying to work through a difficult negotiation alone. When trust between the buyer and seller is compromised the transaction's environment can become toxic. Having a smooth handed professional in the middle, listening, reacting to, or leading parties through a tough spot can make all the difference to the success of a sale. A good Realtor can take the pressure off of the individuals and bring smooth & quick resolution to issues that can otherwise progress to a danger.

Quality Team Members - Eugene's Alternative brings years of experience with quality people in the real estate community. We have developed relationships with outstanding folks in these fields and more:

Mortgage Finance
Title and Escrow
Home Inspection
Pest and Dry Rot Inspection
Law
Surveying
Licensed Contractors of all kinds (Building, remodeling and repair)
Architecture
Landscaping
Staging

Experience - There is no substitute for experience. Understanding the landscape of a negotiation and transaction can prevent or cut short problems before they become a threat.

David Koester
Pricipal Broker / Owner
Eugene's Alternative
302-5999
dave@alternativerealtor.com

Pets in Cottage Grove

2008-04-09T12:26:00.000-07:00

Question: How many dogs can I have at my house in Cottage Grove?

Answer: According to the City of Cottage Grove, no more than three dogs per household are allowed. If you want more, you must apply for a kennel license. Hope this helps.

John Baumann
654-2060
john@alternativerealtor.com
Eugene's Alternative

First Impressions

2008-03-29T12:22:00.000-07:00

QUESTION:
We are about to sell our home. Friends suggested that we invest time and money to improve its "curb appeal." The home has its original entrance and landscaping. Do you think updating the front yard will help sell the house? Is there a rule of thumb we should follow in determining a budget for exterior updates?

ANSWER:
Thanks for your question.

You get one chance to make a first impression. If a buyer's emotional reaction to your home is positive, that equals more money on your closing statement. Most buyers, when presented with a property that leaves them feeling that they have to start by remodeling or entering into "heavy project mode" will discount their offer or simply buy a different property that does not have that requirement.

First impressions are no longer made in front of the home. Virtual tours and photographs on the internet are a buyer's first introduction to a property over 80% of the time. This is why Eugene's Alternative uses only professional photographers and virtual tours for all of our listings. It is also why home sellers need to think about more than the perspective from the "curb" regarding how your home is viewed for the first time.

As the market becomes more competitive for sellers, investing in the condition of one's home is no longer an option to achieve a timely sale at or near the asking price. Paint and landscaping choices are always the best bang for the buck for a positive exterior presentation. We are quick to recommend new flooring, light fixtures, plumbing fixtures, and counter tops, for a positive interior presentation. Kitchens and bathrooms are the places to start on the inside, and the front entry is the place to begin presentation changes on the outside.

There is no rule of thumb regarding budget as different properties warrant different investment levels based on their needs, price point potential, and their direct competition.

Please contact us with any additional questions.

all the best,
John & Dave

1031 Tax Deferred Exchange

2008-03-09T13:19:00.000-07:00

QUESTION:
Can inherited property, such as a home that was once a
primary residence, be used in a 1031 transaction?
And, if so, should the property have remained vacant,
or produced income (rental) following inheritance?

ANSWER:
A 1031 Tax deferred exchange is a transaction that allows a party the ability to reinvest their capital gain in a "Like Kind" property within certain time limits and rules without creating a taxable event. (read: really cool tax law)

A CPA and a licensed 1031 facilitators are good team members with your Realtor to see if this type of option is a good one for you.

Some basic rules of a 1031 include the need to identify up to 3 potential destination properties within 45 days of closing your initial sale transaction and an the absolute of having all purchase transactions closed within 180 days of closing the transaction.

It is also required that the acquisition price of the exchange property or properties exceed the sale price of the property that is being exchanged.

The 1031 exchange must be disclosed in writing within the connecting transactions.

In an exchange all money must flow through a licensed exchange facilitator.

Eugene's Alternative is versed in the ways of the 1031. We would be happy to consult with you further to see if this a good option to utilize in realizing your real estate goals.

Dave

Welcome To The Alternative Blog of Eugene's Alternative REALTORS

2008-03-04T08:50:00.000-08:00

This Blog is designed to provide a public forum for any questions related to Eugene and Eugene Real Estate. All queries will be answered as soon as possible. This Blog is administered by a licensed real estate broker. What do you want to know?

Pose your Question