Real Estate Information Archive


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Thinking of Flipping a House in Eugene? Here's What to Know

by Galand Haas

Good Morning!

Last week, I wrote about the challenges with "flipper" properties. This week I am expanding on that with this informative article about "flipping" homes from Realty Times.

Turn on HGTV or any number of other channels almost anytime during the day or night and you're bound to find at least a couple of shows about flipping houses. Some provide a cautionary tale about overextending yourself financially or making other rookie flipping mistakes, but the vast majority end up with a profit of $30,000, $60,000, or $100,000+ in profit for a couple of months (or a couple of days, in the case of one new flipping show).

Enticing, right? If you're getting ready to plunk down cash to flip a house here in the Eugene real estate market, here are a few things you need to think about.

1. Make sure you've got the money

Sounds obvious, but…do you really know the financial stakes involved? According to Investopedia, "The first expense is the property acquisition cost. While low/no money down financing claims abound, finding these deals from a legitimate vendor is easier said than done. Also, if you're financing the acquisition, that means you're paying interest." Investopedia continues, "Every dollar spent on interest adds to the amount you will need to earn on the sale just to break even."

If you're planning to pay cash, you won't have to worry about interest, but you will have carrying costs including utilities, property taxes, and HOA fees where applicable.

Here are a few other options for buying property to flip, courtesy of "If you don't have enough cash to purchase a home, the next cheapest source is a home equity line of Credit (HELOC). These are low-interest, variable-rate lines of credit that are secured by either your primary residence or an investment property. Typically, the HELOC rate is set about 1–2% above the prime rate. You need to put the HELOC in place before you bid on any homes; then you can bid on the home as a ‘cash deal,' rather than as a ‘financing deal.' Many investors use hard money loans or other conventional mortgages to finance their flips. Because of the higher interest rates and points paid at closing, both will reduce your net profit considerably, and are not recommended for flips unless absolutely necessary." Well said.

2. Buy in the best location you can

"Expert house flippers can't stress this enough," said MoneyCrashers. "Find a home in a desirable neighborhood, or in a city where people want to live." And keep in mind the convenience factor—for the potential buyers, certainly, but also for you. "You will work on this house daily in the weeks and months to come. Do you really want to work all day, and then drive an hour to get home? Don't invest in a house too far away from where you live; you will spend more money on gas, and it will take longer to fix up the house."

3. Work with a realtor...or become one

Tying to maximize profit by selling a flip yourself rarely works out well if you don't know what you're doing. If you think trying to figure out if the wall you want to take down is load bearing is complicated, just try to figure out disclosures and conditions without going to real estate school. The money you spend on a Realtor commission can be well worth it for the ability to concentrate on other things and know the sale is in good hands.

Beyond getting the home sold, good real estate agents can be helpful in other important ways when it comes to flipping. "They can help you find great deals, get you comps, help you connect with lenders or contractors, and a lot more," said BiggerPockets. "Don't settle for an average agent though—find a great investor friendly agent."

4. Check the comps. And check them again...

In Oregon, of course, home sales are public record so coming up with a list of comparable properties (comps) sounds easy. The sold price of homes is readily available. But you need to be very certain that your comparables are really comparable to each other. There are lots of factors to consider, beyond even square footage, outside appearance, and number of bedrooms. Speaking of comps…you can't make a smart decision on buying, fixing up, and flipping a house if you aren't aware of the prices in the neighborhood. And that might be easier said than done. In states like Texas, Montana, and Idaho (and 5 other states), home sales are not reported and are not public record like they are in states like California. In short, do your research so you know what you're up against. 

5. Make smart updates

Knowing where to spend your money is key to a successful flip. You don't want to leave key areas untouched but you also don't want to over-improve for the neighborhood. "Home improvements that increase the value of a home might include upgrading kitchen appliances, repainting the home's exteriors, installing additional closet storage space, upgrading the deck, and adding green energy technologies," said MoneyCrashers. "On the other hand, avoid home improvements that won't increase the selling price, like installing a pool, installing a whirlpool bath, or adding a sunroom to the house."

This is another good reason to use a Realtor who is a local expert: they'll be knowledgeable about specific updates that are important in the Eugene-Springfield Oregon real estate market.

6. Use good products

Scrimping on construction costs may seem like a good idea if it means your financial commitment is lower, but low-end materials might not get the home sold or fetch the sales price you want.

7. Work with good people

Everyone you work with has the ability to make your flip a success or derail it. Partner with those you can trust, and don't forget to make sure they're qualified for their role. A bargain basement subcontractor that does a shoddy job on your floors can end up costing you thousands when you have to have it redone by a professional.

On the flip side, "The real money in house flipping comes from sweat equity, said Investopedia. "If you're handy with a hammer, enjoy laying carpet, can hang drywall, roof a house and install a kitchen sink, you've got the skills to flip a house. On the other hand, if you've got to pay a professional to do all of this work, the odds of making a profit on your investment will be dramatically reduced."

In the Eugene and Springfield housing market, finding "flipper" homes that will have a good potential of becoming a succesful project for you is tough. Using the right Real Estate professional to help you find a good "flipper" property is a must. If you are interested in flipping homes, contact me.  I have had 26 years of experience with finding clients investment properties that give them a good return.

Have An Awesome Week!



1058 E 19th Ave Eugene Home Listings - Galand Haas Real Estate1058 E 19th Ave

Price: $472,000    Beds: 5    Baths: 3    Sq Ft: 3034

Tudor-style home in sought after University of Oregon neighborhood! Living room with wood-burning fireplace. Formal dining with built-ins adjacent to kitchen. Five bedrooms with huge master suite on main level. Plus a sunroom. Wheelchair access. Pri...
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Realities of Flipper & Fixer-Upper Properties

by Galand Haas

Good Morning!

These days, many people are really excited about finding "fixer upper" and "flipper" type properties.  This has been keyed up by the many virtual reality TV shows that feature people purchasing homes in poor repair and re-conditioning them to make thousands of dollars. It all looks so easy on TV. 

The reality is that this can be a very trying experience for anyone in the Eugene and Springfield home market areas if you do not have a great deal of market experience. I am watching people consistently purchasing homes that they want to restore and flip. The majority of them are paying far too much for the home in consideration of what they need to spend on restoration.  The problem comes about when these people try to sell and the value of the home is less than what they have invested or the rents are in the red.  

There are "flipper" homes out there, but you have to be on top of things and you really need to know the market and also be able to accurately assess all costs involved in restoration. Unless you have been doing this for years, it is wise to get help.  Myself and my team are experts in helping investors buy and flip homes or purchase them for rentals. If you are interested in getting into this part of the market and be assured that you make money and not lose money, contact me. We can set a time to meet and get an idea of what you would like to accomplish.  From there, we can go to work for you!

Have An Awesome Week!


28135 Spencer Creek Rd

Price: $1,250,000    Beds: 4    Baths: 4    ス Baths: 2    Sq Ft: 6143

Just minutes from town! This gated country estate is spectacular with an exquisite manor featuring grand staircase, 4 bedroom suites, office, theater room, gourmet kitchen and more. Great shop for RV and storage, creek, waterfall pool, ponds for fis...
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Eugene-Springfield Market Activity for February 2016

by Galand Haas

Good Monday Morning!

The Real Estate market in the Eugene/Springfield area remains strong as evidenced by the following report.  The interesting fact is that inventories of new homes hitting the market remain low and homes prices remain steady.  This could point to a flattening market for the remainder of the year. Here is the February 2016 report.

February Residential Highlights

February brought strong numbers to pending and closed sales in Lane County. Closings (284) rose 37.9% above the 206 closings posted last year in February 2015 and 9.2% above the 260 closings posted last month in January 2016. The last February that saw stronger closings in Lane County was in 2007, when 305 closings were posted for the month.

Pending sales (420) rose 14.1% over the 368 offers accepted in February 2015 and 27.3% over the 330 offers accepted in January 2015. This is the strongest February for pendings in Lane County since at least 2001! The February with the previous record was in 2006, with 408 offers accepted for the month.

New listings (416) decreased 10.9% from February 2015 (467) and fell short (-1.0%) of the 420 new listings offered in January 2016.

Average and Median Sale Prices

Comparing the average price of homes in the twelve months ending February 29th of this year ($244,200) with the average price of homes sold in the twelve months ending February 2015 ($235,700) shows an increase of 3.6%. The same comparison of the median shows an increase of 4.2% over that same period.

Have An Awesome Week!


2685 Valley Forge Dr

Price: $509,900    Beds: 3    Baths: 2    Half Baths: 1    Sq Ft: 2302

Anslow & DeGeneault 2015 Tour of Homes model home. Gas forced air 92% efficiency, exquisite single level, located in beautiful Hawthorne Estates. Easily entertain in Great Rm overlooking backyard. Escape to luxurious owner's ste w/ tray ceilin...View home for sale >>


This Month in Eugene-Springfield Real Estate March 2016

by Galand Haas

Good Monday Morning!

Nationally, the Real Estate market has cooled off a bit.  Even though mortgage rates have continued to decline and and for the most part remain sub 4%, fewer homes were sold in February and home prices tapered off a bit.  Here in the Eugene and Springfield area, the housing market remains robust, but inventories in the price ranges below $300,000 are still in short supply.  As we approach Spring and Summer it will be interesting to see if both the national and local housing markets take off like they did last year. My prediction for the remainder of 2016 is a fairly flat market with little change.  Time will tell this story.

Have An Awesome Week!

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83821 N Enterprise Rd

Price: $399,000    Beds: 3    Baths: 2    Sq Ft: 2332

Beautiful country living! Gorgeous 18.62 acres primarily fenced pasture land. Mountain views, large metal barn, detached garage, roof certification in place. Home is somewhat of a cosmetic fixer. Located within 3 miles of stores and school....
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Consumer Confidence Remains Low Among Potential Home Buyers

by Galand Haas

Good Morning!

 Many would-be homeowners are still choosing to rent instead of buying a home.  Home buyer confidence remains low nationally, even though mortgage interest rates are at historic low levels.  Here is an article from that gives some ideas as to why consumer confidence remains low among potential home buyers.

National optimism? What national optimism? Fewer Americans think it’s a good time right now to buy a home, according to a report released on Monday.

Stagnant wages and climbing housing prices led to a 1.7-point drop last month in consumer optimism toward owning a home, according to Fannie Mae’s monthly Home Purchase Sentiment Index. The index dipped from 83.2 points in December to 81.5 points in January. It ranges from -36.5 to 163.5 points.

“People need to see bigger wage increases to be able to afford a home and collect the down payment,” said Steve Deggendorf, director of strategic research at Fannie Mae.

Just 31% of the survey’s 1,000 participants said it was a good time to buy last month. And only 12% of respondents said their household income was significantly higher than it was a year ago—down 3% from December.

“Jobs are increasing, but wages really haven’t caught up,” said Jonathan Bowles, executive director of the Center for an Urban Future, a New York City–based think tank. He added that it’s become harder for aspiring homeowners to save up for a down payment than it was for previous generations. “It certainly puts homeownership out of reach for a lot of Americans.”

This could lead to a smaller share of Americans who own property, as fewer first-time home buyers have the resources to break into the market, warned Mark Willis, a senior policy fellow at the Furman Center for Real Estate and Urban Policy at New York University.

The bright side was that mortgage rates fell slightly for the fifth week in a row, according to Freddie Mac. The average rate for a 30-year fixed mortgage dipped from 3.79% to 3.72%, and the 15-year fixed mortgage dropped from 3.07% to 3.01%. Five-year Treasury-indexed hybrid adjustable-rate mortgages dropped from 2.9% to 2.85%.

Lower mortgage rates can make buying more affordable, said Jonathan Smoke, chief economist at®. And more potential buyers may be motivated to buy, as rents are also steadily heading up.

“The alternative to buying a home [renting] isn’t more attractive—especially for the longer term,” Smoke said. “Rents already in most places [exceed] what it costs to buy a home with a mortgage.”

Have An Awesome Week!


1014 Yew St

Price: $238,400    Beds: 3    Baths: 2    Sq Ft: 1466

Super Good Sense & quality built! Energy efficient forced air heating & cooling. Hardi plank siding, plaster finished walls, finished garage with sink, and RV parking. Great Room layout, vaulted ceilings, recessed lights, maple cabinets, tile floors...
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Displaying blog entries 1-5 of 5




Contact Information

Photo of Galand Haas Team  Real Estate
Galand Haas Team
Keller Williams Realty Eugene and Springfield
2644 Suzanne Way
Eugene OR 97408
Direct: (541) 349-2620
Fax: 541-687-6411

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