Localism: Jackson County, OR

Caveat Emptor in Real Estate is Dead

Thu, 04 Dec 2008 17:48:43 -0600

A long time ago, back in the 80's, back when I thought a senior was someone over 55 years old..... When you bought a house, most of the time you didn't get an inspection and you bought as is.

Thankfully, things have changed over the years and now it is standard practice to get a home inspection. Most of the time, the seller will pay for some repairs. But there is a misconception with first time home buyers according to REBAC, that a seller will pay for or will repair all the repairs listed on the inspection report.

Although, in these times, it is very likely that home owner sellers (not banks) will pay for and/or will repair everything, it is not always true. I find that it sellers are ok with the health and safety items, but not necessarily the upgrades.

So yes, the roof will probably get fixed, but don't expect a life-time guaranteed top of the line roof. A seller will probably fix the one scratched area of hard wood, but not refinish all the floors. In other words, if you are a buyer, expect the house to be in good condition when you move in, but don't expect a new house.

I have good credit, why is getting a loan so hard?

Wed, 03 Dec 2008 18:43:19 -0600

In the old days (before 2006), all it took to get a loan was to pass the breath test. If you were breathing, you got a loan. Now things are a little different. However, according to REBAC, many first time home buyers don't know these new facts.

Although, I am not a lender, and a good lender can give you all the details, I do know a few important details. Again, in the "old" days, as long as you had decent credit and some down payment, you were able to get the lowest interest rate. Now, interest rates vary in little increments from the lowest quoted price on up. So for each slight deviation from perfection, your potential interest rate adjusts up.

Many loan programs that used to exist like 0 down loans and 0 down, no document loans are no longer around or much harder to qualify and obtain.

Which loan is the best for you? 15 year, adjustable, etc? Now more than ever it is important to find a qualified lender to pre-qualify you before you buy. Not only can the lender help you determine how much you can afford, they can help you decide which products will serve you best.

Investors May Finance Up To 12 Properties

Wed, 03 Dec 2008 15:16:14 -0600

Here in Southern Oregon where we haven't experienced the same level of real estate market devastation as California, Florida, Nevada and Arizona there is still a silver lining to be found in our beautiful puffy cloud skies.

With market values in Jackson County Oregon roughly 8% lower in our year over year statistics, we've also seen a steady contraction in the inventory of available homes for sale - also 8% lower year over year.

As is customary when the general populace begins to think we are seeing some great values, there are buyers coming out of the wood work...450 of them, to be exact, from August 1^st through October 31, 2008 in the Rogue Valley.

Many of these buyers are investors, savvy, experienced, and taking advantage of some great bargains. Until recently, these investors might be able to take out purchase money financing with no limitation on the number of financed properties they owned. This has just changed:

Guideline changes EFFECTIVE IMMEDIATELY!

Max LTV for investment properties is now 65%.
Cash-out on 3-4 unit investment properties is limited to 60% max LTV.
The number of financed investment properties owned by one borrower is limited to 10 (this does not include their financed owner-occupied and/or second homes).
Out-of-State investors are strictly case-by-case, and limited to 60% max LTV.
At this time, there are still no exceptions allowed under the Non-Owner Occupied program.

For Investors meeting Fannie Mae Underwriting criteria (680+ credit score) you may put as little as 15% down, but cannot have more than 10 financed properties INCLUDING YOUR PRINCIPAL RESIDENCE AND SECOND HOME.

Still not bad, all things considered. So, Southern Oregon investors, call today for your free consultation, or go online at www.Quality4Loans.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Are Foreclosures the Best Deal?

Mon, 01 Dec 2008 18:42:59 -0600

According to REBAC, many first time home buyers believe that foreclosures are the "best" deal. The fact is that although, many times you can get a good price with foreclosure, there are so many other things to consider.

1. Banks do not have to disclose and even if they did, almost always they do not know anything. I have had two potential sales in the last year where there was an undisclosed boundary line dispute and another with a disputed access to the property. The only reason i knew was because we either knew the neighbor or talked to the neighbor. Both of these disputes could have cost my buyers over $10K.

2. Banks usually make you buy the property "as is" so it is harder to finance. Most sellers will help with repairs.

3. Banks usually do not have real people to talk to. Yes, there are people to talk to, but it is almost like push #1 for this answer, #2 for this. It can be frustrating if you think reason will work. One of my buyers put an offer in on a house for $85K when the bank had it for sale for $107K, the bank countered at $105K. My clients said no. Next day the bank lowered the price to $89K??? and it sold to some one else for $82K. If they were logical they would have taken my buyers cash offer and been better off.

So the moral of the story is "buyer beware" when it comes to foreclosures.

Sign and Close?

Wed, 26 Nov 2008 16:05:10 -0600

The #6 most common myth among first time home buyers according to REBAC, is - all you need to do is agree on the price and sign a document then close. Selling a house is so easy, not!

There are many steps involved in the negotiations and closing of a home other than price. Price in important, don't get me wrong, but so are the other terms. See some of the below.

Closing Date. How many days to close the house from the date the contract is signed? Is there a better time of the month, year for me to close the house? Are there tax implications? Do I get to move on the day it closes?

Contingencies. Loan. Should I be able to make the purchase contingent upon my ability to get a loan? What about the appraisal?

Contingencies. Condition. Should I buy the house "as is" or have an inspection? Should I require certain repairs to be completed before I move in? How can I make sure the repairs are done correctly?

Contingencies. Title. Do I need title insurance? Why? Should I worry about easements?

Having a good agent help you as a buyer evaluate these terms and others, is a key to making sure you get the home you think you are buying.

Happy house hunting?