(1) “SOLD” statistics include both SOLD and PENDING
(2) Months of Inventory Calculation based on the rate of sales in the previous 90 days.
Albany
Corvallis
Lebanon
Last Show - Thursday, August 7 / Saturday, August 9. Dave was on vacation with his family this week…Encore airing of my earlier show with Dale Henson of Willamette Valley Bank on your credit score.
Upcoming Guests Scheduled:
August
Upcoming Show topics that I’m working to put together for you:
- 1st Time Home buyer – Down Payment Assistance programs
Are you a First Time Home Buyer? Do you want to participate in Real Estate Talk? Dave is looking for someone to go through the process “on the air” by working with him, and letting the listeners know how things are going throughout the entire process. The person(s) selected will receive some nice gifts as a way of saying “thank you.” Jay Chase Inspections will provide the Pest and Dry Rot Inspection at no charge to the buyer(s) selected for this program. For more information, contact Dave at realestatetalk@kgal.com.
¨ SOLD/Pending (past 90 days) – 189
o Average price – $215,803
o Median Sale Price – $185,000
o Average Days on the Market – 130
o Average Dollar per Square Foot - $131.52
¨ Current Active Listings – 463
o Average Price of Active Listings - $258,863
o Months of Inventory – 7.35
¨ SOLD/Pending (past 90 days) – 160
o Average price – $300,682
o Median Sale Price – $269,900
o Average Days on the Market – 103
o Average Dollar per Square Foot - $168.35
¨ Current Active Listings – 251
o Average Price of Active Listings - $340,348
o Months of Inventory – 4.71
¨ SOLD/Pending (past 90 days) – 58
o Average price – $164,015
o Median Sale Price – $145,200
o Average Days on the Market – 117
o Average Dollar per Square Foot – $112.19
¨ Current Active Listings – 168
o Average Price of Active Listings - $185,688
o Months of Inventory – 8.69
Last show: Saturday, August 30 – Chip Cover, Conser Design and Construction. Getting ready for the fall. Home improvement projects you should be working on now before the weather turns.
Thursday 4 September (encore 6 Sept) – Anna Balkema, Willamette Neighborhood Housing Services – Down Payment Assistance Programs (HP-AP, HomeStart, City of Corvallis) – Discussion about other programs which may be coming available next spring (about March).
Saturday 13 September - Mary Hartley, ReMax Integrity. Which home upgrades mean the most? If you can’t sell in the near future and want to invest in your home, where are the best places to consider upgrades and remodeling to enhance both the functionality and the value of your home.
Thursday 18 September (encore 20 Sep) – Real Estate Roundtable - Short Sales and Foreclosures – should you buy one? Guests - TBD
Saturday 27 September - TBD
Thursday 2 October (encore 4 Oct) – Ana Norlander, Windermere Willamette Valley. The Earnest Money Agreement – an overview of the important clauses you need to understand, and the decisions you have to make as both a buyer and as a seller.
- Home owner’s Insurance – what you need to know during the buying process; also, when do you need Flood Insurance and how does it work?
I have met with a number of clients over the past few weeks who want to start the process of buying a home. I've met them because they called me on the phone to ask about a listing I had, or one that was in my office.
As many experienced real estate professionals know, the only thing you can "sell" on such a call is an appointment and its always my goal to spend a whatever time it takes on the phone, giving them the information they need, and working to build a rapport so that I can meet with them to become "their agent."
Each of the people I've met in the past 2 weeks this way had one thing in common, they were shopping for a house before they had shopped for a loan. Every one of them was interested in finding a house that was a "great deal" and price was a primary motivator for all of them. Unfortunately, none of them had taken the most important steps in building their negotiating position and this is the critical mistake that many buyers make.
If you intend to negotiate hard on price, you have to remember that the seller is going to want something in return. For many of them it is time - a "quick" closing. Along with this is the idea that accepting an offer that is below their asking price (significantly below for some) should come with some confidence that the buyers can close the deal.
SO...how NOT to buy your dream home:
(1) Don't see a lender in advance. You don't want to have any idea how much you can truly afford. It's better to shop for the house of your dreams, find it, and then find out it is WAY out of your true price range. That sets up all the homes that you CAN afford to be a disappointment.
(2) Don't save up any downpayment fund. It is extremely important that you have no money in the bank to use as a downpayment, or for closing costs. Relying on the availability of 100% financing in today's market is the surest way to failure and disappointment.
(3) Don't identify your true wants and needs for a home. It is more fun to focus on the amenities like granite counters or hardwood floors. It doesn't matter about things like school districts, number of bedrooms, the location of the neighborhood. Travertine cures many ills!
(4) Never comparison shop. Going to open houses in neighborhoods you are interested in and actually comparing the facts and features of the homes is no way to determine what a good value is.
(5) Build up your debt. Putting lots of things on credit cards, opening new accounts, maybe even buying a new car or boat is an excellent way to keep yourself from buying your home. It is even better if you do this AFTER you've already found the house and gotten pre-approved. There is nothing more fun than watching the deal fall apart because your approval (which was based on your debt to income ratios at the outset) is invalidated because of this new debt!
Ok, I'm obviously being a bit tongue in cheek here. Here's the bottom line. If you want to buy a home start at the beginning and don't take shortcuts. Figure out how much you can afford, create a budget to get you there, start working with a lender EARLY. When you call that Realtor, ask them to show you houses that meet your needs, IN your price range, and then work with them to create the strongest negotiating strategy possible for your situation.
Have a great day!
Dave
Last show: Thursday, August 21 / Saturday, August 23 – Kelly Gardner of Pinnacle Mortgage will be Dave’s guest and the topic will be Loan Modification. This is an alternative to short sale and foreclosure for many people. Kelly will explain the options and who it works for.
- Short Sales and Foreclosures – is it the best way to buy in today’s market?
- Upgrades that count - Many people are remodeling and upgrading their homes during this period, taking advantage of low interest rates, but with selling being the wrong thing for them. Which upgrades can you do to make the most impact on your future plans to sell?
Saturday, August 16 – Donna Jo Merrifield (Coldwell Banker Valley Brokers) will be here to talk about the Oregon Property Buyer Advisory and Seller Disclosure requirements.
Thursday, August 21 / Saturday, August 23 – Kelly Gardner of Pinnacle Mortgage will be Dave’s guest and the topic will be Loan Modification. This is an alternative to short sale and foreclosure for many people. Kelly will explain the options and who it works for.
Saturday, August 30 – To Be Determined
I received this article in my e-mail and thought I would share it here for you all...just in case you hadn't heard about.
Saturday, August 2, 2008 - Page updated at 12:00 AM
By Kenneth R. Harney
Syndicated Columnist
WASHINGTON — Anybody who's been sitting on the sidelines hesitant to jump into real estate until conditions settle down should know these dates: April 9, 2008, through June 30, 2009.
They mark the eligibility time span to qualify for the home-purchase tax credit created by the massive housing bill approved by Congress and signed by President Bush.
If you have not owned a house during the past three years — or are considering buying your first home — and can go to closing before the end of next June, you may be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file as a single person).
The new credit is expected to benefit hundreds of thousands of buyers, although Congress set no limit on how many can qualify. Since the specifics changed during the past month as the Senate and House negotiated a final compromise, here's a quick overview of the credit in its final form:
• The basic idea: To jump-start housing sales and clear out local unsold real-estate inventories, Congress is offering tax credits to pull in new purchasers.
Buy any house — new, old, any location or condition, any price range within the designated time period — and the IRS will cut up to $7,500 off your tax bill for this year or next.
For example, if you're an eligible buyer of a home this year and you owe the IRS $4,000 on your total 2008 income tax bill, a maximum tax credit of $7,500 could wipe out everything you owe plus get you a $3,500 refund.
The new home-purchase tax credit is what the government calls "refundable": If your tax bill is less than the credit amount, you get the difference back from the Treasury.
• Eligibility rules: Do you own a home now? If so, you're not eligible for the credit. Did you sell your home more than three years ago and now rent? You are eligible. The same is true if you've never owned a home before.
Close on a house before June 30, and you can claim a credit of up to 10 percent of the purchase price of the property up to a maximum of $7,500. If your adjusted gross income exceeds $150,000 ($75,000 for singles), the credit maximum begins to phase down in increments.
You cannot claim the credit if you are an illegal immigrant, financed the property using a state or local housing agency tax-exempt bond mortgage or do not plan to use the house as your principal residence.
• Payback: Unlike some past tax-credit programs, this one requires beneficiaries to repay the credit over an extended period of years.
Starting in the second tax year after purchase and continuing for up to 15 years, taxpayers are expected to make pro-rata repayments to the government on their federal filings.
Over a 15-year payback period for the full $7,500 credit, the cost would be $500 a year.
If you sell the house before the end of the repayment period and you have no gain on the sale, you won't be expected to pay the credit back from the proceeds.
If you have a net gain, the "recapture" cannot exceed the amount of your gain.
In other words, the federal government is taking on all or much of the risk that the value of your new house won't increase over time.
At its core, the new tax credit functions very much like an interest-free loan for up to $7,500. You pay the principal back in increments over time, but there's no interest charge to you.
Rob Dietz, an economist for the National Association of Home Builders, says the new credit not only will pull first-time buyers into the market but will also have a powerful "multiplier effect" as thousands of sellers of these credit-assisted houses go out and buy replacement homes for themselves — extending the impact into the move-up segment.
How do you claim the credit? If you pass the eligibility tests and buy before June 30, 2009, you simply request the credit on your tax return for 2008 or 2009, which will be modified for that purpose.
Even if you purchase in 2009, you can take the credit against your 2008 taxes by filing an amended return.
The homebuilders association is launching an educational Web site, www.federalhousingtaxcredit.com, with additional information for consumers.
Kenneth R. Harney: kenharney@earthlink.net
Copyright © 2008 The Seattle Times Company
Last – Saturday, August 2. Polly Cappalo (Winderemere) was Dave’s guest and the topic was Creative Marketing techniques and innovative ideas to help get your home SOLD in a buyer’s market.
