Tony and Libby Kelly, CRS, ABR, ePro, SRES, CLHMS, CNHS

We all know the saying Location! Location! Location! but how big of an impact does it really have on home value. How much would your house be worth if you picked it up and moved it across the country?

An index that come out on Wednesday compared similar homes in "move-up buyer" neighborhoods. It compares the prices charged for 2,200-square-foot, four-bedroom, two-and-one-half bath, single-family homes in more than 300 markets around the nation.

$363,401 is the average for the U.S. but in Grayling, Michigan it sells for just $112,675. That makes Grayling the most affordable market in the nation.

La Jolla, California is on the other end of the spectrum. A comparable house there will run you $2.125 million. What does La Jolla have that Grayling doesn't? Weather for one. They don't have rush hour traffic and they are 15 minutes from downtown San Diego.

Grayling has much to love, like all the outdoor activities in and around the Au Sable River, but Michigan has a much slower economy.

Variations are not only between states but within states. California holds 8 of the top 10 highest priced markets, but there are some affordable towns here too. Just north of L.A. is Lancaster where the sample home would go for $165,205 which is almost $2 million less than in La Jolla, California.

Some states have much less variation. Oklahoma's price spread is less than $10,000. In Boise, Idaho homes cost $215,432 compared with $204,518 in Coeur d'Alene

http://money.cnn.com/2009/09/23/real_estate/home_price_comparison/index.htm?postversion=2009092316

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http//:www.TonyandLibby.blogspot.com & pdxrealtynews.com (make sure you leave comments)

Buyers know that the home buyer's tax credit deadline is approaching. It is obvious by looking at the sales contracts signed in August. There were more contracts signed in August than any other month this year. This has caused 7 consecutive months of increases in pending sales, which is a great sign.

The homes that went "under contract" in August should be closing in October or November, just before the Nov. 30 deadline for the $8,000 first time home buyer's tax credit.

Some may be trying to take advantage of this deal even now but many will be disappointed when the closing deadline isn't met. Stricter appraisal standards, delays getting a mortgage and complications associated with short sales are going to keep some from their $8,000.

In fact, some deals are not going through at all possibly causing a pending sale to be counted twice when a home has to be put back on the market and sold again. This could be inflating the numbers.

We may see a sharp decline in home sales once the credit expires so extending it could avoid another disastrous down slide. The government is thinking about whether to extend and expand the tax credit. Expanding it to all home buyers could really rev-up the market!

http://money.cnn.com/2009/10/01/real_estate/August_sales_contracts/index.htm?postversion=2009100110

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http//:www.TonyandLibby.blogspot.com & pdxrealtynews.com (make sure you leave comments)

Pending home sales haven't looked this good in two years and actual closed sales are looking good too. The stock market is coming back and the countries exports are rising faster than our imports.

Things can still trip up our recovery. The inventory is finally ready to go down but some home owners and banks with foreclosures may have been waiting for things to turn around to put their homes on the market. There is also the possibility that the deficit could mean higher mortgage rates. Not to mention job losses are not over and will keep the foreclosures coming.

There is still reason to be positive with inventories currently going down and prices stabilizing, it might just be the turn around we are all waiting for. Then, the jobs will come back.

http://www.realtor.org/rmonews_and_commentary/economy/0910_economy_salesup

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http//:www.TonyandLibby.blogspot.com & pdxrealtynews.com (make sure you leave comments)

Q. Recently I have had a couple sale agreements come across my desk for bank properties. In both cases none of the contracts were signed and the deals were sent to escrow with only buyer’s signatures. What is the proper procedure with files like this when an asset manager refuses or is not willing to sign any documents yet replies with a counter offer and their terms but no signatures?

A. Banks and their asset managers often have no interest in complying with real estate licensing rules or even normal residential real estate practices. Such rules and practices don't apply to buyers and sellers personally because they are not licensed. Binding contracts for sale signed by both parties are a great way to get to a deed, but there is nothing in the law that requires people to have binding contracts if they don't for some reason want one. Real estate licensees have a duty to advise their clients about the potential business (not legal) consequences of the deals they (the principals) enter into and keep copies of the actual documents the parties use in those transactions. Most REOs require the buyer to sign the REO's forms when the buyer makes an offer. Because the REO forms come after the buyer's offer, they are often thought of as (and sometimes even called) "counter offers." They often are not really “counter offers” because they are not signed by the seller. It's more like getting a buyer to sign a purchase order where the buyer agrees to purchase if and when the seller actually agrees to sell. That isn't illegal. Nor does it prevent opening escrow. It just puts the seller in the driver's seat all the way to closing. Buyers need to understand that without the seller's signature, it may be hard to enforce the contract. In this regard, a follow-up email or letter to the seller through the listing agent saying "we understand we have a transaction and will rely on the terms of that transaction to make expenditures and forego other purchase opportunities" will help clarify the buyer's position. You will want to log onto the Oregon Association's webpage at www.OregonRealtors.org and visit the Risk Management Toolkit to look at the new section entitled: "Dealing with REOs.”

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http//:www.TonyandLibby.blogspot.com & pdxrealtynews.com (make sure you leave comments)

Everyone should now know about the economic stimulus package, the credit is good for up to $8,000, or 10% of the purchase price, and applies to people who have not owned a home in the previous three years. Unlike previous credits, this one does not have to be repaid. Obviously this is something you want to get in on if you can, which is exactly the point.

This program ends on Dec. 1st, and because it usually takes around 90 days to close on a house after a contract is signed, some potential buyers are about to let an opportunity pass them by. In fact, many of the best properties are already gone in the lower price points because of those who already took advantage.

Many of the homes left are short sales which are much more difficult than bank owned properties. Because the seller has to get approval from the bank (to forgive a portion of their loan) the process can be extremely lengthy. Getting a bank to simply agree to the sale can take 3 months and by then the deadline will be over.

Many are starting to worry about a Cash for Clunkers effect. Once the credit expires, and the urgency isn't there anymore, will the housing market start heading back down again?

http://money.cnn.com/2009/08/27/real_estate/homebuyer_tax_credit_ending/index.htm?postversion=2009082715

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http//:www.TonyandLibby.blogspot.com & pdxrealtynews.com (make sure you leave comments)