‘Tis the season

Hi friends! So with most of the real estate market trends being similar, it’s no surprise that the Corvallis real estate market follows the seasonal patterns buying and selling homes. Spring and summer are the seasons when the majority of buyers and sellers are active. However, don’t be scared away if you are still on the prowl for a home or especially if you are thinking of selling! Corvallis saw a great December last year for sellers in particular. Inventory was quite low and houses that came on the market were often picked up right away, some with multiple offers. That may spell bad news for buyers, but be aware, there are great gems that hit the market in the slower season, you just have to be quick!

Corvallis Neighborhood Break Down- Corvallis Center

 

The center of Corvallis is characterized by flat lots, many of the homes built across the decades starting from historic homes built in the early 1900’s to as recent as the 90’s. Many of these homes have mid-century modern styling, craftsman bungalows and can be single or double levels. All amenities of shopping, entertainment and the historic downtown Corvallis are very close by.

Don’t Forget!

Don’t forget, Clients, I post updated information monthly on statistics and absorption rates, as well as a quarterly newsletter! See the below links to take a look!

Corvallis Absorption Rate as of 8_7_14

South Willamette Valley Statistics: July 2014

Newsletter: Summer 2014

Corvallis Neighborhood Break-Down: NW Corvallis

 

The northwest quadrant of Corvallis is a very desirable location for many people. This area is characterized by many trees surrounding the homes and the area has more hills than the rest of Corvallis. Many of the homes are custom homes from the 70’s and 80’s with other varying ages of homes as well (this is generally the case in the area referred to as Witham Hill). Some of the homes retain the same characteristics from the decades they were built, but there are also many nicely updated homes. Many of the homes are split-entry type homes to accommodate for the hilly terrain. The Timberhill neighborhoods are characterized by some condominiums and townhomes as well as new construction. There is a large recreation center (the Timberhill Athletic Club) and access to trails for hiking. Winco foods and various other shopping is located close by. Prices in this area of town can be anywhere from the upper $200’s to as high as $700’s. These neighborhoods are located in the Hoover, Jefferson and Wilson elementary school districts and the Cheldelin middle school and Crescent Valley High school districts.

Corvallis Neighborhood Break Down

 

Many of my clients are relocating their lives to the Corvallis area. I truly love working with individuals that are new to the Corvallis area because I myself am acquainted with the process of moving to a whole new town and the stresses of moving. On my first meeting with my clients it involves pulling out a map of the Corvallis area. I often explain the different neighborhoods to them and the general homes and characteristics of that area of town. Stay tuned for the first installment of the Neighborhood Breakdown. And for those that are already Corvallisites, feel free to comment and add suggestions as well!

Your Relationship with Your Agent: Part 3 “How does my agent get paid?”

Every so often, I come across someone (client or stranger) who asks me “So how do you get paid?” Very good question I say! And it can vary from region to region, but in Oregon, here’s the deal:

1. A broker lists a home for a commission (usually a percentage of the sales price-this varies too)
2. When the home sells, the listing broker shares part of their commission with the broker who brought the buyer to the transaction (or they can represent both sides- not recommended in my opinion).
3. The agent gets paid after the deed is recorded-and that’s if everything goes according to plan and the sale goes through to the end!

This all seems very simple…The other question I get is, how come you guys get paid so much to sell a house! Welllllll, let me break this down:

1. We work for free until a home closes. Yes, you heard that right. I don’t have a salary and I won’t actually give you the statistics on how many homes actual get to the point of recording compared to those that don’t.
2. We pay for marketing. Whether it be marketing a home or paying for advertising for our services, we pay for it. Flyers, business cards, website advertising, supplies, etc.
3. Errors and omission insurance- yep, gotta have that.
4. Company franchise fee and split. I work for a company, I pay them to use their services and to help me market myself.
5. Health insurance- we pay for our own health insurance.
6. Taxes- yep, we have to pay those too!
7. Referral fees- when another broker sends a client your way (thank you, that’s awesome) they ask for a referral fee.
8. National Association of REALTORS membership- being a designated REALTOR isn’t free 🙂
9. Multiple Listing Service- that awesome program that I help you find homes with and is pretty much my life source, I pay a fee each month for that.
10. Gas- we kind of drive a lot…..

Well folks, that’s the breakdown. Its kind of cut and dry, but its a fact of life. I know it seems like we get paid a lot for what seems like a minimal amount of work, but hopefully the breakdown above helps you understand the behind the scenes aspect and the process. Being a real estate agent can be a very successful and enjoyable career, but we do put in our time and money. And if you have a great agent, they put in a little extra time 😉 I love my clients, and in the end, the feeling is almost always mutual (at least I hope it is!) . I love going the extra mile for those awesome people who make me want to come to work everyday!

 

Common Real Estate Terms

Sometimes I use a term and there is a blank start looking back at me. Oops! Sometimes we real estate agents forget that everyday common terms to us, may not be in the vocabulary of everyone. I know I do this more often than not! However, here are some real estate definitions to add to your vocabulary (if you really are interested ;))

 

Adjustable rate mortgage

When applying for a home loan, you can get an adjustable-rate mortgage or a fixed-rate mortgage. An ARM usually has a specific interest rate for a set time and then the interest rate fluctuates. Most of these mortgages have a cap on how high the interest rate may increase.

 

Amortization schedule

First off, amortize basically means to reduce a debt. An amortization schedule is a detailed breakdown that illustrates how much interest and principal of the mortgage has been paid off and how much remains with each payment.

Closing

The final step in a real estate transaction, a closing is the transfer of the title of the property for money or other considerations.

Down payment

The down payment is the amount of money that a buyer pays upfront in order to purchase a property. This amount is typically between 5% and 25% of the value of the property.

Escrow

When a third party holds property, cash and the property title until all conditions of the property agreement have been satisfied. The third party, likely a lawyer, will then hand over the assets to the respective parties, as outlined in the agreement.

Fannie Mae/Freddie Mac

The Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation are twogovernment-sponsored​ enterprises that purchase mortgages from lending institutions. Their purpose is to promote stability and affordability in the housing market.

Flipping

Flipping is a way to invest in real estate with the goal of purchasing a property to re-sell it. Investors profit from the resale of the property if its market value increases either through price appreciation or repairs and remodeling.

Good faith estimate

A good faith estimate is an approximation of the total cost of the purchase of property. It is provided before the mortgage loan is secured so the homebuyer can compare the offers of different lending institutions.

Lien

A lien occurs when a legal claim is put on a property in order to receive payment for debt or for services rendered. The holder of the lien can sell the property in order to recover the money owed.

Points

Mortgage points are upfront charges the lender may add to the overall price of the mortgage. One point is equal to 1% of the total amount of the loan.

Preapproval

Preapproval from a bank locks in an interest rate for a specific amount of time. It is an in-depth process that requires a potential buyer to provide a lending institution with proof of income and debts. The lender will most likely check your credit report in this process. If you’re considering getting pre-approved for a home loan, it’s smart to make sure your credit is in good shape before you apply. You can get a breakdown of your credit strengths and weaknesses using the free Credit Report Card, which also updates two of your credit scores for free every month.

Prequalification

When a potential buyer is screened by a lender or third party to see how much the buyer can borrow as well as the terms of the loan. This is purely informational and does not obligate the lender.

Prime rate

This is the interest rate that commercial banks offer to their best customers. This generally means large corporations that are the most creditworthy.

Underwater

When a property’s market value is less than the balance of the money owed on the mortgage, it is said to be underwater. This is usually associated with a drastic decline in the market value of the property.

Underwriting

The process a lender undergoes in determining whether to extend credit. A lender makes its decision based on a variety of factors including the borrower’s credit scores, credit history, income, other debt obligations and property value.

 

By MSN Real Estate partner

By AJ Smith, Credit.com

Article: How to Clean and Care for Your Home’s Siding

I look at houses, a lot. So there are many things that I notice that either deters buyers because of deferred maintenance or general appearance. Here in the Pacific Northwest, I notice so many homes with moss buildup and mildew on the siding. Taking the time to do some spring cleaning can save you the headache of replacing your siding as often. I posted this helpful article about cleaning and caring for your siding…

Cleaning your home’s siding every year and keeping it in good repair extends the life of any siding and heads off replacement costs.

 

With a bit of preventative maintenance, your home’s siding could be trouble-free for 50 years or more. And that means you won’t have to replace siding as often.

Cleaning siding removes the dirt and mildew that shortens the life of siding. A clean house protects your investment, too. Some real estate appraisers say good curb appeal can add 5%-10% to the value of your house.

Related: How Maintenance Also Adds to Your Home’s Value

Cleaning All Types of Siding

All types of siding benefit from an annual cleaning to remove grit, grime, and mildew. Cleaning an average-sized house may take you and a friend every bit of a weekend. Here’s how to do it:

1.  Start with a bucket of warm, soapy water. Mix 1/2 cup trisodium phosphate (TSP, available at grocery stores, hardware stores, and home improvement centers) with 1 gallon of water.

2.  Divide your siding into 10-foot sections. Scrub each section using a soft-bristled brush attached to a long handle. Work from bottom to top to avoid streaking, and rinse often. (For two-story homes, you’ll be using a ladder, so keep safety foremost.)

Related: Care and Maintenance of Your Deck

What’s a Professional Cleaning Cost?

If you don’t have the time — or the inclination — you can have your house professionally cleaned for $300-$500. A professional team will use a power washer and take less than a day.

You can rent a power washer to do the job yourself for about $75/day, but beware if you don’t have experience with the tool. Power washers can strip paint, gouge softwoods, loosen caulk, and eat through mortar. Also, the tool can force water under horizontal lap joints, resulting in moisture accumulating behind the siding.

A siding professional has the expertise to prevent water penetration at joints, seams around windows and doors, and electrical fixtures.

Inspecting Siding for Damage

All siding: Siding is vulnerable to water infiltration where it butts against windows, doors, and corner moldings. Look for caulk that has cracked due to age or has pulled away from adjacent surfaces, leaving gaps. Reapply a color-matched exterior caulk during dry days with temperatures in excess of 65 degrees for maximum adhesion.

Wood siding: Check for chipped or peeling paint, and cracked boards and trim.

Stucco: Be on the lookout for cracks and chips.

Brick: Look for crumbling mortar joints.

You’ll want to repair any defects before cleaning. The sooner you make repairs, the better you protect your house from moisture infiltration that can lead to dry rot and mold forming inside your walls.

Related: 10 Steps to the Perfect Exterior Paint Job

Repairing Wood, Vinyl, and Fiber-Cement Siding 

Repairs to wood, vinyl, and fiber-cement siding require the expertise to remove the damaged siding while leaving surrounding siding intact. Unless you have the skills, hire a professional carpenter or siding contractor. Expect to pay $200-$300 to replace one or two damaged siding panels or pieces of wood clapboard.

Repairing Brick and Mortar

Crumbling and loose mortar should be removed with a cold chisel and repaired with fresh mortar — a process called repointing. An experienced do-it-yourselfer can repoint mortar joints between bricks, but the process is time-consuming. Depending on the size of the mortar joints (thinner joints are more difficult), a masonry professional will repoint brick siding for $5-$20/sq. ft.

Efflorescence — the powdery white residue that sometimes appears on brick and stone surfaces — is the result of soluble salts in the masonry or grout being leached out by moisture, probably indicating the masonry and grout was never sealed correctly.

Remove efflorescence by scrubbing it with water and white vinegar mixed in a 50/50 solution and a stiff bristle brush. As soon as the surface is clear and dry, seal it with a quality masonry sealer to prevent further leaching.

Persistent efflorescence may indicate a moisture problem behind the masonry. Consult a professional building or masonry contractor.

Repairing Stucco

Seal cracks and small holes with color-matched exterior acrylic caulk. Try pressing sand into the surface of wet caulk to match the texture of the surrounding stucco. Paint the repair to match.

To repair larger holes and cracks, you may want to call in a pro who’s familiar with stucco work. A professional charges $200-$1,000 for a repair job, depending on the size of the damage. Repainting the patch to match your siding will be up to you.

Removing Mildew

Stubborn, black spotty stains are probably mildew. Dab the area with a little diluted bleach — if the black disappears, it’s mildew. Clean the area with a solution of one part bleach to four parts water. Wear eye protection and protect plants from splashes. Rinse thoroughly with clean water.

By: John Riha

Published: November 7, 2013

Read more: http://members.houselogic.com/articles/how-to-clean-siding/preview/#ixzz37HCPlJnG

Article: Does a Zero Down Loan Really Exist?

A few years ago, there were hundreds of zero down home loans available. Are there any loans left that don’t require a down payment?

Zero Down Loans Harder to Find

Since we’ve all sobered up, there are only a small handful of them left. While it’s good to have choices, easy zero down loans caused many home buyers to buy before they were really ready to take on such a serious financial commitment. Zero down first time home buyer loans may or may not be the best choice for you. Let’s take a look.

Always have 3 to 6 months worth of mortgage payments in savings in case of job loss or unexpected expenses.

What are your options right now if you don’t have money for a down payment?

• VA (Veteran’s Administration) Loans. You’ll need a Certificate of Eligibility which, among other requirements, means you have to have served in the Armed Forces.  SeeVA site for eligibility rules.  If in doubt, ask your Mortgage Professional about the specific requirements.

• USDA Rural Housing Loan. This was created to stimulate home buying in designated rural areas. The flexibility within the definition of these areas may surprise you, so be sure to discuss this option with your lender.

Loan programs can run out of funds or availability so ask a Mortgage Professional about programs you read about on your own.

• Smaller banks and credit unions. They sometimes have zero down loan programs for first time home buyers. These programs have dwindled considerably in the last few years and some are no longer available. Ask both your Buyer’s Agent and Mortgage Professional if they know of any programs because they can be hard to find.

• Your employer. There aren’t many of these programs left, but a few employers were giving their employees a gift of 3.5% for a down payment. Be sure to ask your boss!

– Article From: http://fearlesshomebuyer.com/lesson/does-zero-down-really-exist/?phpMyAdmin=2QY0MsER2snFt-jC56kiv-uzCI3#sthash.09co212n.dpuf

Your Relationship With Your Agent Part 1

So you are on the fence whether or not your need an agent right? For buyers and sellers, there are both similar and different reasons why it pays to have an agent on your side. Today I’m going to talk about Buyers…

So you are on the search for your perfect home. You have been looking on the internet and found some that you like and want to see. You have also been to open houses to check homes out for yourself and have either been ignored, pestered or maybe charmed by an agent but still haven’t picked one because (as most of America likely agrees) its hard to trust people that are trying to “sell” you something.

Well in a perfect world (well, in my world too) your agent should be trustworthy and make you feel comfortable when you are around them. They have fiduciary duties to you when they represent you. They should communicate effectively and make sure that your questions get answered promptly. They are not there to “sell” you a home, they are there to advise you on the process of buying a home! In the end, it all comes down to who you trust and feel the most comfortable with. By choosing an agent instead of hopping around from open house to open house and calling all the different brokers on a sign again and again, you are missing out on a great benefit. And best of all, in my area, the buyers almost never (certain situations apply) pay for their agents commission. What a deal!

So lets say you have chosen your agent and they are excited and willing to help you. What can you do to make this relationship soar? Communicate! Now don’t worry, all buyers go through an evolving level of wants and needs, and things change. That is to be expected. But communication is key for you getting the most out of this relationship and it will help your agent to find you a home in the least painless, least stressful way possible. Do I have you convinced? Stay tuned for more….