Real Estate Information Archive

Good Monday Morning!

It is not just the Eugene and Springfield area that is having a hot Real Estate market.  Nationally, the housing market has been robust and just as in Eugene and Springfield, home prices are on the rise as well. Here is a short and informative article about the national housing market from Realtor.com.

Frazzled home buyers may need to sit down and take a few deep breaths before reading any further. Those rapidly rising home prices have hit an all-time high—and show no signs of slowing down before Labor Day.

The median price of an existing (i.e. not newly constructed) home across the nation reached $239,700 in May, according to a recent report from the National Association of Realtors®. That’s up 3.8% from April and 4.7% from May of 2015.

The previous peak was last June at $236,300.

“The price increases are a natural result of the very strong demand for homes against very limited homes for sale,” says realtor.com’s chief economist, Jonathan Smoke. “It’s pent-up demand… coupled with the lowest mortgage rates we’ve had in three years.”

He predicts prices will continue to surge this summer as buyers fight over the not-nearly-enough residences on the market. But there is hope: the mad rush for available homes is expected to taper off come Labor Day, Smoke says.

“There’s a higher probability that interest rates will go up [in the fall]. School is back in session, which means fewer [parents] are looking to move,” he says, adding that the presidential election will cause some potential buyers in certain areas of the country, like Washington DC, to postpone home buying decisions.

The high prices have been a boon to sellers who are putting their properties on the market and cashing in.

“More homeowners are realizing the equity they’ve accumulated in recent years and finally deciding to trade-up or downsize,” NAR chief economist Lawrence Yun said in a statement. “Repeat buyers are using the proceeds from the sale of their previous home as their down payment.”

Residences also continued to fly off the proverbial shelves at the highest volume for the month of May since 2005—before the financial crisis walloped the world economy. This May, the number of sales hit 526,000, a 11.9% jump from April and a 6.3% rise from May of last year, according to the report. Those numbers were not seasonally adjusted, which is to say they weren’t smoothed out over a 12-month period to account for seasonal fluctuations.

The cost of becoming a homeowner is by far the highest in the West, home to astronomically expensive areas like San Francisco and nearby Silicon Valley, according to the report. The median home price in the region was $346,900 in May and the number of sales rose 0.9% year-over-year to 114,000.

The next most expensive region was the Northeast at $268,600, according to the report. The region also saw the fewest sales, at 69,000, in May. But the number of existing homes sold jumped 11.3% from the same time a year earlier.

The region was followed by the South, where the median home price hit $211,500. The warm weather region saw the most sales at 211,000, a 8.2% rise from a year earlier.

Last up was the Midwest, where prices reached $190,000. The number of sales reached 132,000 in May, a 5.6% bump from May of 2015.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

2484 Crowther Drive

Price: $299,000    Beds: 3    Baths: 2    Half Baths: 1    Sq Ft: 1911

This Heitman Custom Home has been beautifully maintained and offers wonderful amenities and details. Some of the features include crown molding, tray and vaulted ceilings, wainscoting, custom cabinets, hardwood and tile floors, granite and abundant ...View Home for Sale >>

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Good Morning!

If you are purchasing a home, one of the most important steps is to have the home you are purchasing inspected by a professional home inspector.  This way you will not have any surprises after you have purchased your home.  The following is an article from "Realty Times" that gives you some suggestions on how to get your home inspected.

If you're hiring someone to inspect the home you want to buy, or you're a seller trying to find out if there are any hidden problems that need fixing before you put your home on the market, here are five things you need to know:

1. You can choose your home inspector. Your real estate professional can recommend an inspector, or you can find one on your own. Members of the National Association of Home Inspectors, Inc. (NAHI), must complete an approved home inspector training program, demonstrate experience and competence as a home inspector, complete a written exam, and adhere to the NAHI Standards of Practice and Code of Ethics.

2. Home inspections are intended to point out adverse conditions, not cosmetic flaws.

You should attend the inspection and follow the inspector throughout the inspection so you can learn what's important and what's not. No house is perfect and an inspection on any home is bound to uncover faults. A home inspector will point out conditions that need repair and/or potential safety-related concerns relating to the home. They won't comment on cosmetic items if they don't impair the integrity of the home. They also do not do destructive testing.

3. Home inspection reports include only the basics.

A home inspector considers hundreds of items during an average inspection. The home inspection should include the home's exterior, steps, porches, decks, chimneys, roof, windows, and doors. Inside, they will look at attics, electrical components, plumbing, central heating and air conditioning, basement/crawlspaces, and garages.

They report on the working order of items such as faucets to see if they leak, or garage doors to see if they close properly. Inspectors may point out termite damage and suggest that you get a separate pest inspection. The final written report should be concise and easy to understand.

4. Home inspectors work for the party who is paying the fee.

The NAHI Standards of Practice and Code of Ethics clearly state that members act as an unbiased third party to the real estate transaction and "will discharge the Inspector's duties with integrity and fidelity to the client." A reputable home inspector will not conduct a home inspection or prepare a home inspection report if his or her fee is contingent on untruthful conclusions.

The inspector should maintain client confidentiality and keep all report findings private, unless required by court order. That means it is your choice whether or not to share the report with others. If you're a seller, you don't have to disclose the report to buyers, but you must disclose any failure in the systems or integrity of your home.

5. Inspectors are not responsible for the condition of the home.

Inspectors don't go behind walls or under flooring, so it's possible that a serious problem can be overlooked. Keep in mind that inspectors are not party to the sales transaction, so if you buy a home where an expensive problem surfaces after the sale, you won't be able to make the inspector liable or get the inspector to pay for the damage. In fact, you may not be entitled to any compensation beyond the cost of the inspection.

As a buyer, you need the home inspection to decide if the home is in condition that you can tolerate. You can use the report to show the seller the need for a certain repair or negotiate a better price. You can also take the report to a contractor and use it to make repairs or to remodel a section of the home.

One thing you should not do when buying a home is skip having the home inspected because of cost or undue pressure by the seller. A home inspection is reasonable, it can save you money in the long run, and it's required by many lenders, particularly for FHA loans. There's a reason why buyers should beware, and a home inspection gives you the information you need to make a sound buying decision.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3686 Yogi Way

Price: $250,000    Beds: 3    Baths: 2    Sq Ft: 1776

Spacious and bright! Lovely one level home on corner lot with RV parking. Stamped concrete in front walkway. Wonderful entertaining space in the huge vaulted Great Room. Living room opens to kitchen and dining area with slider. Well-sized master sui...View this property >>

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Good Morning!

Here are the statistics for the June Real Estate market in the Eugene and Springfield area.  As you can see the month of June shows that our local market continues to be extremely strong and that the inventory of homes for sale continues to decline.  In fact 1.8 months of inventory is the lowest that I can remember seeing in this market.  Of concern is the fact that home prices continue to rise at a rapid pace.  In fact, home values now show that they are at or slightly above pre-recession numbers. This is a concern, because at some point, we will begin to see price resistance from buyers.  The fact that the local economy is not keeping up with home price increases means that many buyers are now going to be taken out of the market because they can no longer afford to buy at the new higher prices.  When we hit this point, it will put pressure on pricing and the market will begin to trend downwards.  Any spikes in mortgage interest rates at this time could be very negative to a healthy Real Estate market here.  

If you are consideriing the sale of a home, this may be your last opportunity to take advantage of this strong sellers market.

June Residential Highlights

Real estate activity in Lane County was mixed this June. Closed sales (524) rose 18.8% compared to May 2016 (441), but fell 2.2% short of the 536 closings recorded last year in June 2015. New listings (671) rose 2.1% over May 2016 (657) but fell 1.3% short of the 680 new listings offered last year in June 2015.

Pending sales (555) ended 0.4% short of June 2015 (557) and were 2.1% short of the 567 offers accepted last month in May 2016.

Inventory decreased to 1.8 months in June, with total market time decreasing to 49 days. Lane County ended June with a total of 959 active residential listings.

Year to Date Summary

Comparing the first half of 2016 to the same period of 2015, closed sales (2,379) have increased 9.9% and pending sales (2,852) have increased 5.8%. New listings (3,402) have decreased 5.3%.

Average and Median Sale Prices

Comparing 2016 to 2015 through June of each year, the average sale price rose 7.4% from $241,300 to $259,100. In the same comparison, the median sale price rose 6.2% from $219,000 to $232,500.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1760 Sweetbriar Ln

Price: $385,000    Beds: 4    Baths: 2    Sq Ft: 1969

Beautiful contemporary craftsman! Features fully remodeled kitchen with long granite counters & island, steel appliances, 5 burner gas Wolf range, cherry wood cabinets. Vaulted ceiling with skylight, hardwood floor and open multi-level floor plan. K...View Home for Sale >>

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Good Monday Morning!

Nationally, home sales continue their upward trend and home prices continue to climb as well. 

Locally, our home sales remain strong as well, but as I have been saying, change is in the air.  The numbers don't show it yet, but right around mid June I feel the Real Estate market in the Eugene and Springfiel made a change.  I am watching homes that were selling in days with multiple offers now sit for weeks without an offer and I am seeing fewer new buyers entering the market.  The inventory of homes in many areas and price ranges is also creeping up.  This could be seasonal, but I think that it is more than that.  Mortgage interest rates have actually decreased over the past seveal weeks, so the change most likely is the result of home prices increasing.  Price resistance can put the dampers on a market just as fast as interest rate hikes. 

In the Eugene and Springfied area we have watched home prices increase steadily now for several years and now affordability is again becoming a factor.  Two years ago, when home prices were down from the recession and mortgage interest rates were at historic low levels the market here was perfect for buyers and many took advantage of the situation, which caused more demand, lower home inventories and competition.  As the price of homes increased the attractiveness of our local market has changed and now buyers are having a harder time quailifying for loans and dealing with the higher mortgage payments.  It's all a cycle.

Have An Awesome Week!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-July-2016

THIS WEEKS HOT HOME LISTING!

1615 Taney St

Price: $299,000    Beds: 4    Baths: 2    Partial Baths: 1    Sq Ft: 1913

Brand new home! Great quality construction with plaster finished walls, maple hardwood & porcelain tile floor, hickory cabinets, granite counters, 9 ft ceiling, LED dimming lights, 3 skylights one of which opens. Great room layout with gas fireplace...View Home for Sale >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

Over the last few days I have been asked frequently about what effect the economic situation in Europe is going to have on the U.S. housing market.  The gut reaction of the UK leaving the EU is that the stock market here in the U.S. has responded negatively.  This in turn puts pressure on the Fed to continue the current pattern of holding low interest rates and to put any near future rate increases on the back burner.  We may see some immediate reductions in mortgage interest rates as a result, but the sure thing for now is that mortgage rates most likley will not change much until the dust settles in Europe and the economy picks up some momentum here at home.  If other European countries follow the UK, then it could all change.  The reality is that we still have a a economy here at home and with worldwide economic turmoil, mortgage rates may remain low longer than anyone anticipated.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1615 Taney St

Price: $299,000    Beds: 4    Baths: 2    ｽ Baths: 1    Sq Ft: 1913

Brand new home! Great quality construction with plaster finished walls, maple hardwood & porcelain tile floor, hickory cabinets, granite counters, 9 ft ceiling, LED dimming lights, 3 skylights one of which opens. Great room layout with gas fireplace...View Home for Sale >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Today while the inventory of homes is low, I see buyers panic buying at times.  This does not always lead to the buyer getting the best house or even a house that will meet their needs.  If you are in the market for a home, take your time.  This might mean missing out on a few homes, but in the long run your patience will pay off.  Also, know what you are lookng for and think the process out.  Here is a checklist of things to think about when choosing a home.

If you're in the process of buying a house or are getting ready to, you may be overwhelmed by all the possibilities - and all the details. It can be easy to lose sight of some of the things that are important to you when you're seduced by pretty countertops or kids playing out on the street. Making a checklist of those must-haves will help keep you on track.

Is the bedroom count and general floorplan workable? You may be tempted by a house that's nicely staged and has that elegant-yet-warm feel you want. But look beyond the furnishings to make sure what you need is what the house has.

Is there a place for your dogs to hang out? And is there a place for the dog bowls to go? This only seems like a little thing until you're moved in and are constantly tripping over their food. When the dogs are part of your life, you'll want the house to accommodate them, and you.

Is there a place for your kitchen garbage can? See above. This "little thing" will drive you crazy. Is it enough to keep you out of the home? Probably not, but it's worth noting for situations where you can't decide between a couple of homes. It might be the little things that make the difference.

What direction does the house face? Facing west is great when it means you get to watch the sunset every day. It's not so great when it means your electric bill costs as much as your mortgage from May to September because your air conditioning is running 24–7.

Where are the structural walls? If you're planning an extensive renovation, it might be a good idea to bring in an engineer to make sure the walls you want to remove won't bring the house down.

Is there enough pantry space? A poor kitchen layout, and one that isn't easily remedied by a renovation, is a deal killer for many people.

What shape is the floor in? Look carefully. Replacing floors can be a big and expensive undertaking. Even if you have an inspection and the floors are in decent condition, they may not match your style. It'll be up to you to decide if you can live with them.

Where's the nearest Target? If location is important to you and the house you're looking at is over the mountain and through the woods, think hard about what you're willing to compromise. It might be that you start to hate being so far removed from amenities once the shine of a new house has worn off.

Where is the nearest Starbucks? Not a coffee drinker? Doesn't matter. The "Starbucks Effect" means higher home appreciation if you live within proximity.

Is there an HOA? This is important to know if you're looking to paint your home purple and display your collection of flamingos on the lawn.

How are the schools? Even if you don't have kids and never plan to, a good school district is important to home values. Pay special attention to the possibility of being rezoned. This happens quite often in growing areas, and, while you won't always know what's going to happen in the future, impacted schools and districts and chatter about coming changes might give you reason to pause.

What are the acoustics like? If there's a ridiculous echo coming from the upstairs bonus room, think about what that's going to sound like with two young kids playing.

Is the wiring what you need? If you need your home to accommodate all the latest technology, you may have some extensive rewiring to do. Checking it out before you buy will help you feel confident you can achieve your goals.

How's the yard space? Too little, or too much, space can make the day-to-day living less than ideal.

What's the neighborhood makeup? Seeing a lot of young couples on the street? Or maybe it's mainly older couples you're seeing. Spending a little time in your neighborhood you're considering can tell you a lot about who your neighbors could be, and whether you'll fit in.

Are there sex offenders nearby? Unfortunately, checking to make sure the people around you are decent is a reality today. Family Watchdog allows you to enter an address and see if there are any sex offenders in the area.

Did you schedule an inspection? You may be tempted to buy a home as is, especially in a hot market, but if you forgo an inspection, you'll be on the hook for any issues that arise with the home down the line.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

1471 Barrington Ave

Price: $575,000    Beds: 5    Baths: 3    Sq Ft: 3756

Luxurious and grand! Great room with surround sound speakers, Brazilain cherry hardwood floor & gas fireplace. Huge theater/bonus room prewired for surround sound. Open kitchen with cherry stained cabinets, island, LED under & above cabinets & toe k...
View Home for Sale >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

The good times just keep rolling!  Yes, the home sales market in the Eugene and Springfield area remains hot and at this point in time there is no sign of change.  For those of us who have been involved in the Real Estate world for a number of years, we know that change is on the way.  We just don't know when.  As I told a client last week, in the Eugene and Springfield area you can go to bed one night and the market is hot and wake up the next morning to a cold market.  It sometimes is like somebody just turned off the switch.  This is why I am still advising anyone who is considering the sale of their home to do it now and don't wait until we hit a downturn.  The inventory of homes remains low and there are plenty of buyers out there looking and ready to buy.

Have An Awesome Week!

Video Link: http://eugeneoregonhomesforsale.com/video/This-Month-in-Real-Estate-June-2016

THIS WEEKS HOT HOME LISTING!

2484 Crowther Drive

Price: $310,000    Beds: 3    Baths: 2    Partial Baths: 1    Sq Ft: 1911

This Heitman Custom Home has been beautifully maintained and offers wonderful amenities and details. Some of the features include crown molding, tray and vaulted ceilings, wainscoting, custom cabinets, hardwood and tile floors, granite and abundant ...
View Home for Sale >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

At a recent Real Estate conference that I attended in Seattle, I was talking with some top agents and we were discussing the current national Real Estate market.  It seems that just about every Real Estate market in the country is currently somewhat similar to the one we are experiencing in Eugene and Springfield.  There is a low inventory of homes for sale and high demand. Many of us have been in the business for quite a few years and we all agreed that none of use have experienced a housing market like the one we have today.  We also all agreed that this current market will be short lived.

The reason that I bring this up is that we may not see a market where homesellers have the kind of edge that they have right now for many years.  We may never see this kind of market  again in our life times.  We have jumped out of the recessed housing market and for the most part home values are at or near pre-recession values in Eugene and Springfield.  With high buyer demand, I am seeing many homes sell in a matter of days at or above full price.  When multiple ofers become the rule and not the exception, you know that we have an extremely strong sellers market right now.

If you are thinking about selling your home in the near future, my advice is act quickly.  Take advantage of this market, because it won't be here for long.  Right now is your opportunity to cash in at top market value.  When this market does change it will most likely come without warning.  The inventory of homes for sale will gradually build as buyer demand begins to fade.  With less demand and more homes on the market, prices will soften and then begin a slow decline.  The timing for this is anyones guess, but it is on the horizon.

If you would like to talk about selling your home in this market, call me and I can give you information on your homes current value and go over the many options that you might have.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3757 Westleigh St

Price: $185,000    Beds: 4    Baths: 2    Sq Ft: 1645

Great townhouse! Townhouse with garage and yard. Four bedrooms and 2 bathrooms. Large kitchen, window shelves and seating. Fenced patio. Located one block from shops, school, park....
View Home for Sale >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Right now the Real Estate market in the Eugene and Springfield area is highly competitive.  Record low mortgage interest rates, a renewed interest in our area from out of state buyers and an extremely low inventory of homes for sale has made our current market very challenging for buyers.  The following is an article from "Realty Times", that gives some advice to anyone attempting to purchase a home during our current competitive home market.

Everyday I hear real estate agents say how baffled they are because their Buyers keep losing the house they want to buy due to a multiple offer situation. I feel empathy for Buyers who have spent several weeks or months searching for the home of their dreams, only to find out there are five other people trying to buy the same property. It can be downright frustrating, not to mention time consuming and the emotional roller coaster ride you must feel like you are constantly on.

If you are lucky enough to not be in a multiple situation and having to compete with other Buyers for the home you want to purchase, these items can still guide you on how to make the offer attractive to the Seller.

So, how do you make an offer on the house and actually beat out your competition and get it accepted?  It can be challenging, but there are some tricks to the trade.  As a listing agent, I receive multiple offers on the majority of homes that I list for sale.  My last listing, I received 31 offers.  Did my seller pick the highest price?  No.  There were other factors that were taken into consideration during the decision process.  As an agent representing the Buyer, I have been in situations where we had to compete with other Buyers and we won and it wasn't because we were the highest bidder.  So, how can you make a successful offer on a home?

GET PRE-APPROVED FROM A REPUTABLE MORTGAGE LENDER

A true pre-approval from a lender means that you have provided to that person all your personal financial information and that lender has given said information to an underwriter for approval with the only remaining criteria being, that the home appraises and title is clear.

Why get pre-approved?  It shows the Seller that you are serious and are prepared to purchase his/her home.  Once your offer is accepted, the home is removed from the market and not available to any other Buyers.  So, if the Seller is going to remove his home from other eligible Buyers, it better be for a good, solid Buyer who can go to the closing table without delays from the mortgage lender.

 

CHOOSE AN EXPERIENCED REALTOR TO WORK WITH

This is a large purchase, and I know that sometimes you can get pressured to use your cousin or friend who has their real estate license, because we are all the same, right?  No way!  I always remember the saying...the heart surgeon who graduated at the top of his class is the same as the one that just made it by the the skin of his teeth.  Which one would you pick to do your surgery if they cost the same?  Knowledge from an good Realtor can save you money and help you get the house that you really want.  

DON'T LOWBALL THE SELLER

Before you submit your offer, your agent should have pulled comparables (sold properties in the same area), discussed average days on market for your area and provided you with an estimated sales price of the home that you are about to put an offer on.  If everything comes back acceptable, meaning the house is priced in line with recent sales and there are no signs of delayed maintenance, then it comes down to what you offer.  If the house is priced accordingly and in good repair, offering 25% below asking price to see what the Seller is going to do, is probably going to insult the Seller.  Your result may be a flat out rejection with no counter offer.  What Buyers don't think about,  while you are trying to see how low the Seller will go, you leave the door open for other Buyers to kick you out of the deal.  Now, that doesn't mean you have to pay full price, but the numbers don't lie. That house will sell between the historical sales shown to you.  The Seller and their agent know this.  Unless, you are in a market that is starting to decline, you may get lucky.

PUT A HIGHER AMOUNT DOWN FOR ESCROW

Depending upon where you live, escrow may be called earnest money.  Earnest money is a good faith deposit that basically tells the Seller you are serious about purchasing their home.  The higher the amount, the more skin you, the Buyer, has in the game.  Remember, the Seller is looking for a sure thing.  They want to close with the first Buyer, not the third.  Putting more money down as escrow tells the Seller you are less likely to default or risk losing your money.

Earnest money is credited to you at the closing table.  You do not lose that money if you close.

HAVE YOUR LENDER CALL THE LISTING AGENT

The lender that calls the listing agent, who represents the Seller, and explains that the Buyer is a solid Buyer, credit has been pulled and jobs have been verified, just helped the Buyer move to the front of the line.  Having the lender contact the listing agent does two things.  First, it introduces the lender to the agent, who in turn meets with the Seller.  Second, that agent will and advise the Seller which offers he/she thinks will close.  In addition, competency from a mortgage lender is reassuring and allows the Seller to make an informed decision.  There have been several times in my career that the Seller has not accepted an offer due to the questionable loan approval the Buyer presented and the fact we could not reach the mortgage lender to verify. 

BE FLEXIBLE WITH THE CLOSING DATE

When making an offer on a house, there are factors to consider about the Seller,  many that may not be disclosed before the offer is written.  If the Seller needs time to find another place to live or is moving across country, being flexible with the closing date may mean more to the Seller than having a higher dollar offer.  I often call the listing agent before sending over the offer and explain that if the Seller needs more time to exit, the Buyers are flexible with the closing date.  This puts less pressure on the Seller during the moving process, which may be what they need.

SHORTEN YOUR INSPECTION PERIOD

There are several times in the contract where the transaction can go sour for the Seller and one major hurdle that Seller must get past is the home inspection.  By shortening your time frame for the inspection process, this limits the window of opportunity for you to withdraw from the transaction.  You may even write into your offer, that you are looking for major defects only in the home and anything less, you are willing to accept up to a certain dollar amount.  This will reassure the Seller that you are not going to walk or ask them to repair a laundry list of small items.

MEET THE SELLERS

This can be a good idea and sometimes not.  If you really want the house, when you go to view it, ask if the Sellers can be there.  Even if it’s just for a few seconds before you really view the house.  Putting a level of humanity into a transaction can go a long way.  Isn’t that true for a lot of different circumstances?   The last home I bought, I met the Sellers and not only bought the home, but probably got a better deal because I was able to compliment them on all the work that they had done.  I did not give away the fact that I was in love with the house and probably would have paid full price.  I just acknowledged what a good job they had done.  Being kind and grateful can go a long way, and perhaps save you a few dollars too.

Making an offer on a home and getting it accepted can entail other elements of the purchase agreement and not just the money.  However, if you still find that you are consistently getting out bid for a home, consider my last alternative....

RAISE YOUR OFFER AMOUNT-ODD NUMBERS

I am not an advocate for recommending Buyers to overpay for a home.  However, there may be times where a home is priced below market in anticipation of getting multiple offers and having the market dictate the outcome.  As an agent that has represented quite a few Sellers, I have done this many times and it works.  So, let me tell you the secret of making an offer on a house during a multiple offer situation.  After comparables are given to you and you know that the home is priced below market, come in close to market value with an odd numbered offer.  Meaning, most people think in terms of even numbers, right?  So, instead of writing an offer at $255,500 for instance, write the offer amount at $257,660.   I have seen Buyers win the offer by $50.  Overpaying for a home, if you are getting a mortgage may mean not passing an appraisal.  This is where hiring that experienced agent truly pays off in really knowing the market values of your desired area.

Understanding that there are steps to making an offer, or a framework, will guide you through the process.  Having good communication with your Realtor is a must and don't be afraid to ask questions.  This is your time and your money.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

3381 Arlington Ave

Price: $485,000    Beds: 3    Baths: 2    ｽ Baths: 1    Sq Ft: 2247

Exquisite single level home in beautiful Hawthorne Estates. Custom built home in like new condition. Top-of-the-line upgrades such as Brazilian cherry & granite, high ceilings, recessed lights, gas fireplace, wide halls & grand entry door. Escape to...
View Home for Sale >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

With mortgage loans remaining at historic low levels and the brisk housing market, I find many home buyers making huge mortgage loan mistakes.  Here is a recent article from "Realty Times", that just might help you if you are in the market for a mortgage loan.

For most buyers, the mortgage is the largest monthly expense they will have. Yet most borrowers will do little to no preparation, negotiation, or shopping to get the best deal. And they end up paying much more for their loans than they need to. You? You're smarter than that, or you wouldn't be reading this article. Here are five of the biggest mistakes that can cost you real money.

1. Believing advertised rates are what you'll pay

Unless you have perfect or near-perfect credit, most advertised rates are out of your league. To get boasting rights on a rate that good, you have to pay part of a point (one percent of the loan amount), or more to get the best rates.

Your lender will go over your credit with a fine-tooth comb to find anything to raise the rate. That includes qualifying you at the beginning of the transaction, and then running your credit again a day or two before you're supposed to close on the home and loan. If there's been any change in your debt-to-income ratio, goodbye low mortgage rate.

2. Not comparing lenders

Just like everyone knows two or three real estate agents or more, everyone knows a loan officer or a mortgage broker. A loan officer works for a bank or savings and loan and can only offer you loan packages that the bank has put together. A mortgage broker prequalifies you just like a loan officer, and shops your deal around to various lenders.

Whether you talk to a loan officer or a mortgage broker, you're going to have to share personal financial information in order to get a realistic rate. Reputable brokers will show you what certain banks and credit unions quoted and you can pick the loan you like best.

If you'd rather do your own shopping, consider talking to a local bank, a national bank, a credit union, and a savings and loan, but remember, unless you give them personal information and permission to run your credit, it's just talk.

3. Not paying attention to terms

Advertised rates even for those with perfect credit aren't what you will actually pay. The true cost of the loan is the APR or annual percentage rate, which includes fees from the lender.

Understanding loan terms is harder than shopping for a new mattress. There are so many ways lenders can inch up the fees. A loan origination fee is also called a processing fee. It pays the loan officer or mortgage broker, so this fee can vary widely. You may pay one lender more for an appraisal than another might charge you.

One lender may charge more for pulling your credit than another. It's all in your good faith estimate, which you don't get until you've applied for the loan.

All terms are negotiable, so don't be afraid to ask what a particular fee is for and can it be reduced or eliminated.

4. Waiting for a better rate

It's great to have bragging rights on a low rate, but you don't want to lose the home of your dreams over a quarter of a point in interest.

There's a big picture here you could be missing. No matter what your interest rate is, you're going to pay thousands of dollars in interest up front before you make any serious gain in equity. If you go all the way to the end of your loan's term, you'll pay so much interest that you could have bought the same home two or three times.

Instead of focusing on the percentage rate, work on how quickly you can build equity. Make one extra payment a year. Pay $25, $100, or $500 extra per month and you'll more than offset the rate you're paying.

Down the road, if rates drop through the floor, you can refinance, but even that's not an ideal solution. You'll pay loan origination fees, title search fees, appraisal fees and so on -- enough to equal the closing costs you paid the first time around.

And don't forget, you'll start the amortization schedule all over again -- with most of your payments going to interest instead of principal.

5. Choosing the wrong type of loan

Many families were hurt post-9/11 when lenders opened the spigots and gave a loan to almost anyone who could sign the paperwork. Suckers bought homes that were too expensive using balloon loans with low teaser rates.

The type of loan you choose should depend on current market conditions and how long you plan to stay in your home, not how much home you want to buy.

Current market conditions favor fixed rates, because rates are rising from all-time lows. Yes, they cost more than hybrid loans or adjustable rate loans, but the base amount is fixed and doesn't change. Only your taxes and hazard insurance will cost you more over the years.

If you get an adjustable rate mortgage, you are at the mercy of market conditions. While there's a cap on how high your interest rate can go, it's still a risk.

If you plan to stay in your home five years or more, get a fixed-rate mortgage. If you plan to sell your home sooner, you're taking a risk. It takes most borrowers five years just to earn back their original closing costs in equity.

Once you've narrowed your choice of lenders, ask them on the same day to give you a quote. If you wait even one day, rates may have changed, so you're no longer comparing apples to apples.

If you need a good lender, contact me.  I have a list of great local lenders that I can provide you with.

Have An Awesome Week!

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