Real Estate Talk Blog for the Willamette Valley

Real Estate Talk Market Update for March 29, 2008

(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

• SOLD/Pending (past 90 days) – 152
• Average price – $216,857
• Median Sale Price – $205,000
• Average Days on the Market – 171
• Average Dollar per Square Foot - $131.28
• Current Active Listings – 403
• Average Price of Active Listings - $268,084
• Months of Inventory – 7.95

Corvallis

• SOLD/Pending (past 90 days) – 112
• Average price – $301,373
• Median Sale Price – $267,000
• Average Days on the Market – 126
• Average Dollar per Square Foot - $168.85
• Current Active Listings – 204
• Average Price of Active Listings - $356,670
• Months of Inventory – 5.46

Lebanon

• SOLD/Pending (past 90 days) – 37
• Average price – $155,057
• Median Sale Price – $146,250
• Average Days on the Market – 122
• Average Dollar per Square Foot – $117.06
• Current Active Listings – 154
• Average Price of Active Listings - $202,978
• Months of Inventory – 12.49

Today– 29 March – The Cabinet Man – Home storage issues? Peggy was here to talk about the options that are available and how to make the most of the space you’ve got. Cabinet Man is a local (Eugene) business

Upcoming Guests Scheduled:

April

03 April – Nancy Weber, Construction Contractor’s Board (CCB). Issues surrounding hiring a licensed contractor. How to check the license status? What to check for? Oregon’s law with regard to flipping houses and the requirement to hold a contractor’s license.

12 April – TBD

17 April – Real Estate Luncheon. Our monthly round table discussion about current events in the mid-valley and national real estate markets. Tentative scheduled guests include: Bill Higby (Willamette Community Bank), and The Broker Duo (Keller Williams).

26 April - TBD

Real Estate Talk Market Update for March 20, 2008
(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

• SOLD/Pending (past 90 days) – 145
•    Average price – $213,648
•    Median Sale Price – $199,900
•    Average Days on the Market – 172
•    Average Dollar per Square Foot - $129.98
• Current Active Listings – 408
•    Average Price of Active Listings - $270,351
•     Months of Inventory – 8.44

Corvallis

• SOLD/Pending (past 90 days) – 109
•    Average price – $302,126
•    Median Sale Price – $272,300
•    Average Days on the Market – 115
•    Average Dollar per Square Foot - $170.04
• Current Active Listings – 195
•    Average Price of Active Listings - $354,152
•    Months of Inventory – 5.37

Lebanon

• SOLD/Pending (past 90 days) – 39
•    Average price – $152,207
•    Median Sale Price – $139,900
•    Average Days on the Market – 125
•    Average Dollar per Square Foot – $116.37
• Current Active Listings – 151
•    Average Price of Active Listings - $202,980
•    Months of Inventory – 11.62

Last – 20 March – Real Estate Luncheon; our monthly round table discussion about current events in the mid-valley, and national real estate markets.  Guests included: Nancy Kruse (Keller Williams Mid-Willamette), Debbie Berg (Umpqua Bank), and Kris Nelson (First American Title Co.).  * This show will also aired on Saturday March 22 as an encore performance.

Upcoming Guests Scheduled:

March     29 March – The Cabinet Man – Home storage issues?  Peggy will be here to talk about the options that are available and how to make the most of the space you’ve got. Cabinet Man is a local (Eugene) business

April

     03 April – Nancy Weber, Oregon Construction Contractor's Board.  Nancy will be talking about why you should hire ONLY licensed contractors, how to find out the license status, things to check for...and recent changes to Oregon law about flipping houses.

     12 April – TBD

     17 April – Real Estate Luncheon.  Our monthly round table discussion about current events in the mid-valley and national real estate markets.  Tentative scheduled guests include: Bill Higby (Willamette Community Bank), and The Broker Duo (Keller Williams).

     26 April - TBD

Greetings from the trenches!

I attended the Willamette Association of Realtors® General Meeting yesterday, we hold them every month and they come with an educational component...this week we had Nancy Weber from the Public Relations division of the Construction Contractor's Board.  She gave us some great information that I'd like to pass on to you.

1. Oregon law just changed regarding "flipping" houses.  Previously you (by law) HAD to be a licensed contractor in order to buy, fix up, and re-sell a house for profit.  Now, you can legally "flip" up to 3 houses a year and not hold a license...BUT you must still hire licensed contractors to do the work!  That means ALL the construction work (if it ain't landscaping, cleaning, or simple touch up painting!)

2.  The risks of hiring UN-licensed contractors is bigger than any money you save.  We've seen horror stories on the news about seniors that have been taken advantage of by unlicensed contractors (especially after natural disasters).

    Get the CCB number and then, check it out!  Go to http://www.hirealicensedcontractor.com/ (the CCB web page).  From here you can check out the status of the license. Make sure it's ACTIVE and you can also see any disputes (pending, active, or resolved). 

3.   Check out whether or not the licensee is EXEMPT from paying Worker's Comp.  If they are, any subs injured during the job could end up being YOUR responsibility

4.  Pay smart!  Paying for the entire job up front in cash is not the smartest way to approach a big job...it increases your risk.  Some up front money is ok, but make sure that you have a way to verify that the sub-contractors and materials providers get paid.  If they don't...the lien goes against the PROPERTY!

More questions? Contact me or check out http://www.hirealicensedcontractor.com/

Real Estate Talk Market Update for March 15, 2008

 (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

• SOLD/Pending (past 90 days) – 149
•    Average price – $216,512
•    Median Sale Price – $200,000
•    Average Days on the Market – 171
•    Average Dollar per Square Foot - $129.68
• Current Active Listings – 391
•    Average Price of Active Listings - $264,684
•     Months of Inventory – 7.87

 Corvallis

• SOLD/Pending (past 90 days) – 110
•    Average price – $301,060
•    Median Sale Price – $290,000
•    Average Days on the Market – 121
•    Average Dollar per Square Foot - $170.14
• Current Active Listings – 201
•    Average Price of Active Listings - $353,442
•    Months of Inventory – 5.48

 Lebanon

• SOLD/Pending (past 90 days) – 41
•    Average price – $150,432
•    Median Sale Price – $135,000
•    Average Days on the Market – 120
•    Average Dollar per Square Foot – $116.13
• Current Active Listings – 152
•    Average Price of Active Listings - $201,802
•    Months of Inventory – 11.12

 15 March – Scott Lepman, Lepman Properties.  Scott was here to discuss issues regarding property management and investing in real estate

 Upcoming Guests Scheduled:

March

         20 March – Real Estate Luncheon; our monthly round table discussion about current events in the mid-valley, and national real estate markets. Tentative guests include: Nancy Kruse, Keller Williams Mid-Willamette, Kris Nelson, First American Title, and Debbie Berg, Umpqua Bank

     29 March – The Cabinet Man – Home storage issues?  Peggy will be here to talk about the options that are available and how to make the most of the space you’ve got. Cabinet Man is a local (Eugene) business.

In today's real estate market there seems to be a momentum building on the part of buyers take advantage of some avenues traditionally only used by practiced (experienced) real estate investors.  Until recently, many people had never even HEARD the term "short sale" never mind actually trying to buy a home under those conditions. 

So, the question is...Should you buy a short sale?  Let's explore it.

What IS a short sale?  If you've ever tried to buy a new car and use a car that is not yet paid off as a trade in you'll understand the term "upside down" as meaning that you OWE more to the bank than you could sell it for.  If a home owner is in this situation, but still needs to sell the house (job change, relocation, family changes...) they MAY be able to work with the mortgage holder to take less in order to avoid the expensive process of foreclosure. 

The owner bought the home for $200,000 3 years ago with 100% financing (no downpayment).  The market was booming and they took out $10,000 in equity to pay down some consumer debt.  Now, the market has softened a bit and when their life circumstances make it so they MUST sell (let's say a job transfer out of state), the most they could sell the home for is $195,000.  With their REALTOR® they contact the mortgage holder and make arrangements that the listing process will be "subject to a short sale."

Why are you house hunting?  The first question to ask when thinking about buying a home is NOT usually...how do I get a "short sale?"  It's is this the right home for me?  If you are looking for a home it could get a bit disorienting to BEGIN the process with a list of homes under short sale.  If you are looking for investment property, identifying these homes as targets of opportunity MIGHT be a good strategy.

If you find the right home and it IS subject to a short sale...how do you move forward?   Let's assume that you are shopping for a home and not an investment.  In your search you find a nice house that meets almost all your needs, in a neighborhood that you'll be comfortable in.  Your REALTOR® tells you that it is subject to a short sale. 

     Get as much information as you can on the property history.  How long ago was the home purchased by the current owner?  Is it vacant?  Was it a primary residence or a rental?  How much did they pay for it?  What is the best estimate of what they currently owe?  How long has it been on the market?  At what price(s) have they been trying to sell?  How many lenders are or will be involved in negotiating?  Your agent should be able to get most of this information for you, it's public record.  Also, any insights into "why" they are selling/moving may be useful too, although not always as easy to get.

     Craft your offer strategically.  Keep in mind that your negotiations will not be with the owner alone...but with the lender(s) involved.  They are motivated to avoid the foreclosure process, but not in losing more money than they have to...or would otherwise.  Even for the bank, time is sometimes as important as money, so including a quick closing or no contingency of another house to sell first makes your offer more acceptable.  It's OK to come in with a low-ball offer here, assuming that you are serious about buying the property.  There is not quite as much emotion here as in a typical sale, although you still want to keep the tone of the negotiations positive. 

     Be prepared for a long decision process.   In many cases the home owner AND the mortgage holder (or holders...remember there could be more than 1) are in the decision process.  In the case of lenders, there may be multiple tiers of decision makers.  Typically, you will not get an answer back on your offer in 3 or 4 days.  It could take weeks.  If there is more than one lender involved it can get very complex.  The holder of the first mortgage might be reluctant to take a big loss, knowing that the second mortgage could "go away" in a foreclosure (the 2nd mortgage holder might get nothing depending on what it sells for).  This is where many short sales fail.

    Other things to expect.  Lenders don't want to eat everything.  In some cases, they will ask the agents to take a bite out of their commissions.  If you have a buyer's agreement with your agent,that could put some of the cost on you.  Repairs, a negotiation point in most real estate transactions, are often a big challenge in short sales.  They lenders aren't motivated to give up anything more...and the home owner might not have any funds available to give either. You can ask, but be prepared for taking the property "as-is." 

Summary.  If you are in the market to buy a home (not an investment property), I wouldn't start out actively LOOKING for these properties, but if you happen to come across a short sale it can be a GREAT opportunity.  While there are some challenges to doing so, you can get a great deal on a wonderful home.  Be prepared, be patient, and be realistic, and it could work out for you.

Real Estate Talk Market Update for March 6, 2008

 (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

SOLD/Pending (past 90 days) – 144

   Average price – $220,795

   Median Sale Price – $198,700

   Average Days on the Market – 177

   Average Dollar per Square Foot - $130.08

Current Active Listings – 375

   Average Price of Active Listings - $262,919

    Months of Inventory – 7.81

Corvallis

SOLD/Pending (past 90 days) – 109

   Average price – $286,847

   Median Sale Price – $278,000

   Average Days on the Market – 119

   Average Dollar per Square Foot - $170.34

Current Active Listings – 191

   Average Price of Active Listings - $353,642

   Months of Inventory – 5.26

Lebanon

SOLD/Pending (past 90 days) – 42

   Average price – $151,281

   Median Sale Price – $137,450

   Average Days on the Market – 117

   Average Dollar per Square Foot – $115.73

Current Active Listings – 148

   Average Price of Active Listings - $205,609

   Months of Inventory – 10.57

Last Week – 06 March – Dale Henson, Willamette Valley Bank.  Was in to finish our conversation on credit challenges and what the consumer needs to know to get back on track. * This show will air again on Saturday, March 08 as an encore performance...in our normal time slot from 10-11am.

Upcoming Guests Scheduled:

February

     15 March – Scott Lepman, Lepman Properties.  Scott will be here to discuss issues regarding property management and investing in real estate

     20 March – Real Estate Luncheon; our monthly round table discussion about current events in the mid-valley, and national real estate markets

     29 March – The Cabinet Man – Home storage issues?  Peggy will be here to talk about the options that are available and how to make the most of the space you’ve got. Cabinet Man is a local (Eugene) business.

Real Estate Talk Market Update for March 1, 2008

(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

SOLD/Pending (past 90 days) – 138

   Average price – $224,878

   Median Sale Price – $196,500

   Average Days on the Market – 178

   Average Dollar per Square Foot - $130.82

Current Active Listings – 372

   Average Price of Active Listings - $268,363

    Months of Inventory – 8.09

Corvallis

SOLD/Pending (past 90 days) – 101

   Average price – $290,786

   Median Sale Price – $278,000

   Average Days on the Market – 121

   Average Dollar per Square Foot - $171.60

Current Active Listings – 191

   Average Price of Active Listings - $353,172

   Months of Inventory – 5.67

Lebanon

SOLD/Pending (past 90 days) – 45

   Average price – $151,497

   Median Sale Price – $136,900

   Average Days on the Market – 118

   Average Dollar per Square Foot – $115.21

Current Active Listings – 144

   Average Price of Active Listings - $206,427

   Months of Inventory – 9.60

Last – 01 March – Harry Whitley, Whit’s Quality Home Repairs.  Whit was in his role as Mr. Fixit today, explaining the details of some simple home repairs that we can do; including a drywall repair.

Upcoming Guests Scheduled:

February

     06 March – Dale Henson, Willamette Valley Bank.  Will return to finish our conversation on credit challenges and what the consumer needs to know to get back on track.

     15 March – Scott Lepman, Lepman Properties.  Scott will be here to discuss issues regarding property management and investing in real estate

     20 March – Real Estate Luncheon; our monthly round table discussion about current events in the mid-valley, and national real estate markets

     29 March – The Cabinet Man – Home storage issues?  Peggy will be here to talk about the options that are available and how to make the most of the space you’ve got. Cabinet Man is a local (Eugene) business.