Stellar Realty Northwest

Every time you turn on the radio or TV you're likely hearing about what MAY be happening to stimulate our economy. There are first time home buyer programs cropping up everywhere, all of them with slightly different guidelines. One program that looks fairly flexible is the "Oregon Mortgage Lenders Association Home Purchase Assistance Program" for first time home buyers. The cool thing about how this works is that using funds available fom the OREGON HOUSING AND COMMUNITY SERVICES DEPARTMENT, their lender members can make available to their clients a 0% interest $1500 second mortgage to use toward either a down payment and/or closing costs, along with matching assistance from their lender member (or other qualified source) valued at a minimum of $500. Who is eligible for this 0% interest loan?

· First time home buyer

· Occupy the property as your primary residence

· Household income can't exceed 80% of area median income om the county where the home is purchased

· No major credit obstacles

· Have no more than $5,000 in liquid assets after the transaction closes

· Successfully complete an approved homebuyer education course

· Be a legal Oregon resident (or be pursuing permanent residency)

In addition, eligible properties include any new or existing single family residences located in the State of Oregon. This loan may be used in conjunction with FHA, VA or Rural Development loans. For more information, call one of our team members.

Everyone wants to know when home prices will bottom out. According to one of Portland's housing consultants who spoke at a homebuilders meeting, September of 2009 is when we'll see the typical home price fall to $261,000, what he's considering the "bottom". His prediction is that following that drop we will return to "normal" appreciation rates of 6% annual growth. At that rate, the housing market will return to the 2006 prices in 2012. Since we all know that the '06 prices were inflated, this is helpful in trying to decide when to sell your home if you bought high in the 2005-2006 boom. The Oregonian Business writer Frank Ryan pointed out in this morning's business section that recovery in value is likely to be uneven, as conditions vary by neighborhood, and at this point Clark County and east Clackamas County continue to be the hardest hit in the housing collapse. For investors and buyers, this means opportunity as many sellers will be more willing to negotiate with the knowledge that a quick recovery in Spring is unlikely.

Initially you may think that this is a huge savings for you as a seller, but think again. If you look at the numbers, a different story unfolds: according to the National Association of Realtors, the typical FSBO home sold for $145,000, as compared with average sale price of $175,000 for sellers who had agent representation! The extra $30,000 more than covered the commission AND netted more proceeds to the seller. Here's a REALscenario that took place just last week on our team here at the Mannila Besaw Group:

Our listing agent, Scott, met with a client that was trying to sell their house as FSBO. They had already planned on listing their house with the Mannila Besaw Real Estate Group but wanted to see if they'd be able sell their home FSBO first and save some money. They posted some craiglsist ads and delivered 500 flyers throughout the neighborhood advertising an open house. They received an offer for $419,000 which they had countered. Scott pointed out that he was pretty sure he could get a higher price, and he told the seller to rescind their counter immediately, and the seller acted quickly. Scott listed the house and within 48 hours had 4 offers, and the seller accepted an offer for $469,000! One of the HUGE benefits of working with a quality agent is their market knowledge, which in this case proved to be very valuable.

In addition to the extra $50,000 that the seller received, think about the legal consequences that could occur if even one disclosure is not filled out properly. When using an agent, you get the peace of mind knowing that a professional has completed the contract and all forms correctly for the protection of the seller. Another thing sellers often don't think about is the fact that many buyers are not comfortable giving feedback about the home directly to the sellers, as sellers are not objective about their home and may be defensive about any criticism. Many buyers will just GO AWAY and look for another home rather than negotiate directly with a seller. Please let us know if this information is helpful to you, at the Mannila Besaw team we LOVE real estate!

The difference is representation. Let's say you drive past a home you're interested in, and then you call the listing agent off the sign or flyer; did you know it's their fiduciary duty to get the highest price possible for the seller and represnt their best interest? The law says that they CAN represent both parties however in THIS market where buyers want the BEST deal possible, that doesn't happen unless you have an agent who is sole agent for you, working as hard as possible to get you the lowest price or most favorable terms. Typically the total commission for the transaction is set by the listing agent, then split in some fashion with the Buyer's Agent (BAC). So this means there is NO COST to you to have your own representation. At the Mannila Besaw Group, we have 3 Buyer's Agents who can work for you, please let us know if you think this blog is helping you navigate the changing market we are in!

With the flurry of marketing for "Loan Mods" that has hit the Portland/Vancouver market, it's important to understand what's NOT being said in that :30 radio spot; Loan Modifications are not re-finances, and they're not free! Attorneys (and some Loan Officers and Realtors) are attempting to negotiate with banks to keep customers in their homes. There are definitely some scenarios where homeowners in default can avoid foreclosure and re-negotiate their current loan product. The catch is that the fees (which range from $500-$5000) are generally paid up front and there is no guarantee that the bank will actually negotiate.The time frame is the same as a short sale, typically 1-3 months. If you think you're a candidate for a Loan Mod, give us a call here at Mannila Besaw Group, we have several loan officers that are open to doing these programs.