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Eugene Real Estate Market Watch

Pamela J. Windom, p.c.

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Displaying blog entries 11-17 of 17

Short Sale….What is it?..... And…… Is it Something You Should Consider?

by Pamela J. Windom, p.c.

          Simply put……..In a short sale situation, a seller’s mortgage lender agrees to accept a payoff less than the balance owed on the loan.  For a variety of reasons, a seller may find themselves in a situation where a short sale may be the best option. 

          It is important to note that a short sale will appear on your credit report showing as a settlement for a lesser amount, not as a debt discharged. This means that your credit will be “less severely” impacted in a short sale situation than in a foreclosure scenario.  A foreclosure will follow you on your credit bureau report  for 10 years and will severely affect your ability to obtain credit.   

         The important window of opportunity is NOW!!!!  (Home purchases made between January 1, 2009 – December 31, 2009.)  Changes in the current tax code regarding taxation on the phantom income earned on a short sale make now the perfect time to explore a short sale.  Contact your accountant for further details or visit www.irs.gov/pub/irs-pdf/p4681.pdf  ....... either will provide you with details regarding exemption from tax liability that your lender would report on doc 1099C.  Please note **** This is subject to the borrower having a negative net worth.  Read more about this exemption at the IRS website noted above.

Value vs. Price....Consider One, When Determining the Other

by Pamela J. Windom, p.c.

Value, as defined by Webster, is "worth"…"that property or properties of a thing which make it useful or estimable".  It is common that home owners see great value in their home.  They appreciate all of the amenities, the location and all of the special qualities and memories that make a house a home.  Unfortunately, what a home will sell for in the marketplace is most often not what a home owner believes their home is worth.  This is where price comes into play.

 

To find the right price to market a property, one must not only take into account the obvious features of bedrooms, baths, square footage and of course location, location, location…..but also the amenities that add to the quality of the home.  Be advised, appraisers will not give dollar for dollar value to added amenities when appraising a home; however, when all else is equal, the amenities do make the difference.  When pricing your home for sale, remember the adage, more for the same or the same for less and you will have greater success in getting your home sold…..particularly in a declining market.  Purchasers want to know that they are getting a good value for their dollar.

 

What a home is worth ultimately ends up being in the eye of the beholder. 

Absorption Rate...What is it? & Why it pays to be in the know.....

by Pamela J. Windom, p.c.

Real Estate lingo tends to be baffling at times, but understanding the meaning behind the terminology can be of great benefit.  From time to time, I will address different terminology that is not only beneficial to know, but also understand, so you can put it to good use in formulating a plan for the sale of your home. 

Today's Term.....Absorption Rate

Absorption Rate is the length of time it would take to sell the inventory of a given area at the current sales rate.  It is a valuable tool for use in determining a price range for marketing a home for sale. To calculate the current absorption rate, simply take the number of homes that are currently on the market and divide that figure by the number of homes that sold last month……this will equal the absorption rate.

As you prepare to list your home for sale, knowing the current market activity is a must.  I assume that you aren't placing your home on the market just for fun and that you actually do desire/need to sell your home.  Being practical from the "get go", will often save you time and money in the long run.  In a market where prices are declining, being in front of the pack is important.   (This means being competitively priced, so people not only notice your home, but are attracted to it, because it is a good deal.) Bear in mind, a good deal, doesn't mean a fire sale on your end.  If you are priced right from the beginning and your home sells quickly, isn't that better than sitting on the market for 6 months, trying to sell your home, only to watch the market values decline and getting less for your home than you would have if you had priced it ahead of the market to begin with?  Bottom line…..it is better to have the market chase you, instead of chasing the market down.   

 

Knowing Your Options During Difficult Times is a Must!

by Pamela J. Windom, p.c.

         Home ownership comes with certain responsibilities...payments, upkeep and the like.  We enter into it with optimism and in most cases, great pride, knowing that we have worked hard and met one of those milestone goals in our life.  It is a momentous occasion when one actually takes title, is handed the keys and enters their home for the first time.  While everyone shares these final steps of the journey in common, once you cross the threshold, the tale of home ownership becomes an individual journey.  Life happens, circumstances change and what once seemed like the ideal situation can become the source of great stress.

         Some of the most frequent situations we as realtors come upon, that can change your circumstances in the blink of an eye, are loss of a job, divorce, death and medical emergencies.  In our current economy, more and more people are finding that their jobs are being cut and they do not have a contingency plan in place that can bridge the gap until they secure a new job.  It is becoming a more prevalent scenario…..bad things are happening to good people who have had the best of intentions.

         If you find yourself unable to make your house payment, regardless of the reason, I first and foremost encourage you to contact your mortgage company to see if they have options available that will help you avoid foreclosure.  A foreclosure will follow you for years on your credit record. 

        Because of the current economic situation, many lenders are finding creative ways to help keep people in their homes.  The bottom line is... lenders are in the business of loaning money, not owning real estate.  They really do not want to take possession of your home and carry it on their books until it can be sold.  Options that are currently coming to light are reductions in interest rates, delayed payment options, reductions in loan balances and the willingness of lenders to consider having folks sell their homes as a short sale.  Speak with your lender!!!!  Did I say that loudly enough…..SPEAK WITH YOUR LENDER!!!!  Do not stick your head in the sand.  Find out what your options are.  Take control of the situation and find out what will cause the least amount of damage to your future credit rating.  If a short sale is the best scenario for you, call me (541-431-6498).  You need a professional to guide you through the process and I will be happy to help.    

Wow.....Look What's New !!!! FHA Limits and Tax Credits

by Pamela J. Windom, p.c.

Purchasers that are new to home ownership (haven't owned a home in the past 3 years) can begin to take advantage of the "up to" $8,000 tax credit with no payback requirement,  made available by the federal government.  Visit the following link for more details:  http://www.irs.gov/newsroom/article/0,,id=204672,00.html   What an incredible opportunity to get into the market while prices are down, inventory is high and interest rates are fantastic!  Home ownership is an investment in your future, that comes with immediate benefits!

Another great piece of information to come out in the last couple of days is that FHA lending limits have just been raised back up to what they were near the end of 2008. 

Per the HUD Website, new FHA loan limits are as follows.......

Single Family Dwelling:  $343,750

Two Family Dwelling:  $440,050

Three Family Dwelling:  $531,900 

If you have explored a new home purchase or re-finance option within the last 2 months and FHA was not an option, please check back with your lender.  There may now be funds available to assist you.

As you can see, things are changing at a rapid pace.  Stay tuned.  More to come..........

On the Market or Ready to Sell?

by Pamela J. Windom, p.c.

There is a difference……a big difference. Anyone can put there home on the market, the key to getting your home sold, is having it ready to sell. 

 

First Impressions:

    Stand back and take a long look at your home from the curb. Does it have “curb appeal”?  Do you understand how easy it is for a buyer to drive off and never even get out of the car?  Trim the hedge, clip the grass, wash the windows, put some fresh bark down, plant a few color spot flowers…..give the buyer a reason to want to look inside. 

 

Clear the Clutter:

    Are there coats and backpacks and shoes in your entry hall?.....Put them away.  Make it easy for buyers to move freely about your home and view its features.  Put away excess magazines, family photos, appliances on the counter, etc….  The key is to have people admire your home, not your belongings.

 

Secure the Pets:

    Do you know how your pets react to having people in your home, when you aren’t around?  Be they friendly or otherwise, it is a stressful situation for pets to see strangers in your home when you aren’t around.  If a potential purchaser is coming to view your home, see that your pets are secured, or better yet, take them for a walk or a ride in the car.  The purchasers won’t be distracted by the pets and you won’t have to worry about people interacting with them.

 

Stage:

    Put your best foot forward.  Getting rid of clutter is just the start.  Make sure your colors are neutral, get rid of oversized furniture pieces that detract from the rooms in your home, showcase the natural features of your home and consider bringing in rented, more contemporary furniture. 

 

Price: 

   A very simple motto to follow in our current market is that your home should provide...

                   More for the same…..OR…..The same for Less

 

NOW…Get Ready, Stage and Sell

Market Watch February, 2009

by Pamela J. Windom, p.c.

Is the whole idea of purchasing a home a big puzzle to you?  2009 is all about the variables....the puzzle pieces.  Let me help you put a few of the pieces in place, so you can get a clear picture. 

 

Availability of Money:  Are you thinking it is difficult to get a loan?  Finally, the purse strings are beginning to loosen and money is beginning to flow.  I highly recommend that you make a plan and get your credit cleaned up and in order as a first step toward investing in real estate.  Payoff any small credit card debt you may have and clear it off your record.  If your credit scores are already in good shape…..Bravo! 

 

Interest Rates:  Can they get any better???? Maybe and maybe not.  If you try to time the market to get the best rate, the only way you really know when rates have hit their low, is after they begin to climb again.  Interest rates are fantastic…..RIGHT NOW!  If you are in a position to make a purchase, get the ball rolling.  Visit a lender and get pre-approved, so when you find the house you love, you are ready to lock your loan.

 

Government Tax Benefits:  Federal officials are currently working on legislation as part of the economic stimulus package to help give a bump to the real estate market and get things rolling.  Stay tuned for incentives that may be beneficial to you.

 

Market Inventory:  The inventory of homes currently for sale is high and there are some great deals available.  Getting pre-approved will put you in the best position to negotiate a great deal, when you find the home of your dreams.  Search the home inventory available on this site and get to know the market, so you will recognize a great deal when you see one.

 

Timing:  They say that timing is everything…..Interest rates are fantastic and available home inventory is high, so all you have to do is make sure you are ready to make your move when you find the perfect home. 

Call me today and I can help you put the pieces of the puzzle into place. 

 

 

         

Displaying blog entries 11-17 of 17

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