Bobby Stevens ~ Eugene, Oregon Realtor

I encourage every one of my sellers to get a whole house and pest and dryrot inspection up front, before I list their home in the MLS and launch the marketing campaign. Sometimes the reaction I get is "That's the buyers responsibility - why should I pay for an inspection?"

This is what I tell them:

For many buyers and sellers, the most stressful event in a real estate transaction is the review of the inspection report.

For the buyer (who begans to question whether they overpaid the moment after they sign acknowledgement), the report represents the potential for getting out of the deal with earnest money in hand. Other potential drawbacks about the property or neighborhood are re-visited, and competing properties began to look more attractive in comparison. Fear of choosing the wrong home is intensified - "What else might be wrong that the inspector couldn't see?" The buyer doesn't want to make a mistake, and if there is any doubt in their minds, the path of least resistance is in the opposite direction of your home.

For the seller, a surprise defect revealed in the report could mean losing a strong buyer, losing marketing momentum and incurring unexpected costs that change the dynamic of negotiations in favor of the buyer. Even when a defect can be corrected quickly and inexpensively, the percieved value of the home has become less, and a home that is back on market after a pending sale arouses suspicions in the minds of realtors, who don't want to be responsible for selling their buyers a lemon.

If a sale is going to fail, this is usually the time it bites the dust, often despite heroic measures on the part of sellers and realtors to remedy problems and keep all parties at the table.

3 out of 5 of my sellers will usually pay for a whole house and pest & dryrot inspection up front when I advise them of the benefits:

1. You get to choose a superior inspector and have some control over the inspection process - the buyer may even waive their own inspection after reviewing a well written report - especially if repairs are completed and documented.
   
2. You can share the report in advance and set buyer expectations before offer is written - If the buyer really wants the home, they will rationalize small defects and proceed with the offer. If they are on the fence, this good faith gesture may keep them interested and asking questions.
   
3. You get the chance to repair any defects before the property even hits the market, making the home a better value compared to the competition. Your agent can use the reports as a marketing tool!
   
4. In the event that a buyer proceeds with their own inspection and a questionable defect is reported, you already have a second opinion in hand, and your inspector will return and re-inspect to determine the validity of the new defect - usually at no charge to you.

A pre-listing inspection is one of the pro-active steps a seller can take to create an advantage for themselves. And in our current market, sellers who want to sell quickly and get the best price need all the help they can get!

Bobby Stevens
541 225-8081
bobby@alternativerealtor.com

Inventory, listings, sales, and sale prices decline for the September 2008 reporting period.

Each month the RMLS (Regional Multiple Listing Service) publishes market statistics for it's service area. As a Eugene area Realtor I focus on the data for Lane County. Being intimately familiar with these numbers helps me to serve my clients, both buyers and sellers, in a changing market.

For the month of September, total inventory stands at 10.2 months, up from 8.1 in August and up from 8.0 one year ago. This means at the current rate of sales, with no new listings entering the market, it would take over 10 months to sell all of the approximately 2,460 currently listed properties.

New property listings have decreased 5.4% and closed sales are down 13.3% since September 2007. Average sale price is down 4.3%, median sale price down 4.2% when comparing the 12 month period ending September 2008 with the same period ending September 2007.

These numbers suggest that:

1. Sellers must ensure that the condition of their property is superior, that their price is competitive, and that their Realtor is a master at marketing and negotiation if they wish to sell in a reasonable time frame.

2. Buyers have access to a vast number of housing options, and the opportunity to purchase at value prices, if they can obtain financing, and especially if they can pay cash.

3. Agents must work with a high level of dedication and focus to serve the interests of their clients, and to ensure the future of their careers through the current downturn and into economic recovery.

If you need to buy or sell in the Eugene/Springfield area and want top-notch representation, I'm here to help.

Bobby Stevens
541 225-8081
bobby@alternativerealtor.com

The Laurel Hill Valley is a unique little enclave in East Eugene. The main route in, Riverview Street, is poorly maintained, and without sidewalks, which adds a rural flavor, and there is an intersting mix of old and new development in this peaceful neighborhood.

I was dropping off flyers at one of my condo listings early yesterday morning and got a chance to shoot some wild turkeys (digitally of course).

We see quite a few of these in the south hills and outlying areas around Eugene and Springfield, usually traveling in what appears to be a family group.

The lighting in this shaded glen was not the best, but I stopped the car, turned on the flashers and grabbed my camera.

The big birds were polite enough to wait until I snapped my zoom lens on and I was able to a get a couple of decent shots off before the walked sedately across the road and climbed the bank into the forest.

More information on this neighborhood:

Laurel Hill Valley neighborhood association website

Hendricks Hill Homeowners association

I hope I'm the first to congratulate Fred Chamberlin on reaching 60,000 points on Active Rain in just a few months!

Fred is an encyclopedia of information in the world of Real Estate finance, with a high expertise in government loan programs of all kinds, and his blog should be required reading for anyone seeking funding advice in this uncertain age.

There are many options and programs available, despite the current crisis, and I would not be aware of a number of them if it weren't for Fred's prolific and tireless efforts at the keyboard. Fred also shoots great pictures to document his adventures, and takes great care of his two canine companions.

Thanks Fred, for being a great AR contributor, an inspiration, and a friend!

Here's how to get in touch with Fred:

Fred Chamberlin
Alpine Mortgage Planning
FChamberlin@alpinemc.com
Office Phone:(541) 342-7576
1200 Executive Pkwy Suite 100,
Eugene, OR, 97478

According to a survey by Remodeling magazine, homeowners can expect less of a return on upgrades than in the recent past.

In the bubble years of '05 & '06, nearly half the projects undertaken could be expected to return up to 90 cents on the dollar, but in the past two years, nothing has even come close, based on the magazines' survey of thousands of real estate professionals. Consumer Reports magazine has gone a step further and surveyed licensed appraisers, but regional differences in home values make it difficult to gauge what portion of your remodeling dollar you get back at closing time.

Projects that pay:

Deck additions still top the list at 85.4% of value recovered, based on a national average.

Minor kitchen remodels can return 83% of the investment if you focus on cosmetics like cabinet door replacements, flooring, paint, and energy efficient appliances.

A bathroom remodel could return 78%, while a bath addition is only good for 66%.

Replacing windows with wood double hung units will return up to 81%, and vinyl comes in a close second at 79%.

Projects that don't pay as well:

Home office remodel- 57%, Backup power generator - 58%, Sunroom addition - 59%.

What's a homeowner to do?

• First, think of upgrades as helping to maintain the value of your home - not necessarily increase it. Unless you're filming an episode of That 70's Show, green shag carpet and harvest gold appliances aren't going to get buyers lining up with earnest money checks.
  

• Second, take care of the less glamorous maintenance items like the roof, plumbing, and crawl space moisture control. In my experience, defects in these areas can create a cascade of problems that are both costly to repair and send prospective buyers running for the next house when they pop up in an inspection.

• Finally, if you plan on staying awhile (5 or more years), forget about what buyers may want, and invest in what makes you happy. We're back in a cycle where owning a home is more about what you get out of it on a daily basis, than what your appreciation will look like next spring. Business and economic cycles are beyond individual control, but owning a comfortable and efficient home can buy more peace of mind than money in the bank!

Bobby Stevens, Eugene's Alternative Realtors
541 225-8081
bobby@alternativerealtor.com