Answers! to Your Real Estate Questions

Answers! to Your Real Estate Questionshttp://davesuttonhomes.com/Most of what's on my blog is answers to questions I've been asked in the daily dealing with clients. If you have a question, ask it here (as a comment to any blog entry). I love to answer questions. What's yours?en-usWed, 02 May 2012 17:35:00 GMT10GDRSSFeeds v1.0Short Sales in 30 days? New FHFA Guildelineshttp://davesuttonhomes.com/blog/2012/05/02/short-sales-in-30-days-new-fhfa-guildelines<div>One of the biggest headaches with short sales has been how long it took lenders to respond to offers.  My personal experience ranges from six weeks to six months, with the average much closer to the six months end.  Sometimes the lender's response is "no", and the buyer has just wasted months during which they probably could have bought a home that was not a short sale.  </div> <div> </div> <div>New guidelines from the Federal Housing Finance Agency (Fannie Mae and Freddie Mac) require the lenders to respond in three business days and give the buyer an answer in 30 days, under some circumstances up to 60 days.  </div> <div> </div> <div>If, and it's a big one, lenders can't just ignore this or find a way around it (am I being too cynical?) this change will make short sales much more marketable and be a boon to both sellers and buyers.  The new guideline takes effect June 15, so we'll soon see.  <br /> </div> <div> </div> <div>The National Association of Realtors news release with all the details is <a href="http://bit.ly/HSSPUo">here </a><br /> </div><P><a href="http://davesuttonhomes.com/blog/2012/05/02/short-sales-in-30-days-new-fhfa-guildelines" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/05/02/short-sales-in-30-days-new-fhfa-guildelines#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/05/02/short-sales-in-30-days-new-fhfa-guildelinesWed, 02 May 2012 17:35:00 GMTRefinance Your Upside-Down Mortgage? Possibly!http://davesuttonhomes.com/blog/2012/04/24/refinance-your-upside-down-mortgage-possiblyLenders continue to be more flexible, and government programs and guidelines continue to evolve as well.  Mark Boeck, the Windermere Mortgage Branch Mgr. in my office announced that some upside down mortgages can be refinanced to a lower rate, which of course lowers your payment in the process.   The detailed information is <a href="http://davesuttonhomes.com/docs/HARP.pdf">here.</a><P><a href="http://davesuttonhomes.com/blog/2012/04/24/refinance-your-upside-down-mortgage-possibly" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/04/24/refinance-your-upside-down-mortgage-possibly#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/04/24/refinance-your-upside-down-mortgage-possiblyWed, 25 Apr 2012 08:49:00 GMTPortland Homes for Sale at 8-year Lowhttp://davesuttonhomes.com/blog/2012/04/12/portland-homes-for-sale-at-8-year-low<div>In the Portland Tri-County area, the number of detached homes listed for "normal" sale (excluding bank-owned and short sale) is the lowest it has been in at least eight years.  This chart  shows, by quarterly average, the number of homes for sale (the bar) and the number which for which sales are pending (the line).  The first quarter 2012 average number of homes for sale is less than half that at any time from 2007 through 2009.<br /> </div> <div>This chart helps explain why my Windermere Lloyd Tower office is frequently seeing ten or more offers on a listing.  Many nice homes, priced at market, are selling in a week.  If you've been considering selling, now is definitely the time. </div> <div style="display: block; height: 288px; padding: 0 0 10px 0;"><img src="http://davesuttonhomes.com/images/1Q_2012_inventory_lowest_in_8_years..png" alt="" align="left" height="288" width="531" /> </div><P><a href="http://davesuttonhomes.com/blog/2012/04/12/portland-homes-for-sale-at-8-year-low" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/04/12/portland-homes-for-sale-at-8-year-low#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/04/12/portland-homes-for-sale-at-8-year-lowFri, 13 Apr 2012 10:41:00 GMTHow Much Down Payment to Buy Today?http://davesuttonhomes.com/blog/2012/03/24/how-much-down-payment-to-buy-today<div><img src="http://davesuttonhomes.com/images/Home-Calculator.jpg" alt="" height="143" width="95" align="right" />In survey after survey, renters say they think it takes 20% down to buy a home today. </div> <div> </div> <div>WRONG!</div> <div> </div> <div>With good credit and reasonable debt to income ratios, home purchases are being made in and around Portland, OR with FHA loans that require only 3.5% down, and just this week our Portland Windermere Mortgage manager told me ZERO % down <span style="text-decoration: underline;">conventional  </span>loans are again available.  <br /> </div> <div> </div> <div>I just completed a purchase with a buyer who paid 3.5% down AND the seller gave him a 3% credit for closing costs besides!</div> <div> </div> <div>Let's talk about how little it takes to get you into a Portland area home of your own today.  I respond to text, email or phone.  Your choice, but do it today (yes, I work evenings and weekends).  You're waiting for what? <br /> </div><P><a href="http://davesuttonhomes.com/blog/2012/03/24/how-much-down-payment-to-buy-today" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/03/24/how-much-down-payment-to-buy-today#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/03/24/how-much-down-payment-to-buy-todayTue, 27 Mar 2012 15:48:00 GMTBuying More Affordable than Renting in 98 of 100 Largest US Metroshttp://davesuttonhomes.com/blog/2012/03/24/buying-more-affordable-than-renting-in-98-of-100-largest-us-metrosYou read it right.  Accordng to Trulia's Rent vs. Buy index, buying is now more affordable than renting in 98 of the nation'largest metropolitan areas - even New York, LA and Boston.<br /> <br /> Read the whole story <a href="http://bit.ly/GDql9D. "><a title="" target="" href="http://bit.ly/GDql9D">here </a></a>and let me show you how that's true in Portland, OR.<P><a href="http://davesuttonhomes.com/blog/2012/03/24/buying-more-affordable-than-renting-in-98-of-100-largest-us-metros" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/03/24/buying-more-affordable-than-renting-in-98-of-100-largest-us-metros#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/03/24/buying-more-affordable-than-renting-in-98-of-100-largest-us-metrosSat, 24 Mar 2012 15:16:00 GMT"Housing Crisis to End in 2012 as Banks Loosen Credit Standards"http://davesuttonhomes.com/blog/2012/03/08/housing-crisis-to-end-in-2012-as-banks-loosen-credit-standards<div>That's the conclusion of DSnews.com, a news source for "the mortgage default servicing industry"</div> <div>A link to the whole story is below.</div> <div> </div> <div>The other part of the story is that, at least for the Portland Tri-County area we may have passed the proverbial "bottom of the market".   The average sold price for a detached home (not including bank owned or short sales) has gone up every month since last September.  The number of homes currently for sale is the lowest in more than five years. <br /> </div> <div> </div> <div>Last week, one of my officemates called a seller the day after the home was listed to schedule a showing, only to learn the seller had accepted one of multiple offers that day - the day after it was listed!  Multiple offers on desirable homes are now the norm not the exception.  <br /> </div> <div> </div> <div>Have we passed the "bottom of the market"?  Leave a comment with your thoughts.  <br /> <br /> </div> <div>For the full DSnew.com story <a href="http://bit.ly/xlXYeC">click here</a></div> <div> </div> <div> </div><P><a href="http://davesuttonhomes.com/blog/2012/03/08/housing-crisis-to-end-in-2012-as-banks-loosen-credit-standards" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/03/08/housing-crisis-to-end-in-2012-as-banks-loosen-credit-standards#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/03/08/housing-crisis-to-end-in-2012-as-banks-loosen-credit-standardsThu, 08 Mar 2012 10:34:00 GMTWhat Home Buyers Need to Know about Appraisal Management Companieshttp://davesuttonhomes.com/blog/2012/03/02/what-home-buyers-need-to-know-about-appraisal-management-companiesWhere did the "Appraisal Management Companies" come from?  How were appraisers handled before and what was wrong with that?  What's wrong with Appraisal Management Companies?<br /> <div> </div> <div>Appraisal Management Companies were created by regulation in reaction to appraisal practices of some lenders during the RE bubble.  At that time the lender selected the appraiser.  Not a bad concept, you might say, since it's the lender whose money is at risk they should have the right to be sure they got a good appraiser.  </div> <br /> However, what happened too often was that the lender picked the appraisal amount as well as the appraiser, and many appraisers went along with that for the business, resulting in inflated appraisals.  That was just one part of the whole mess, but it produced regulations that say the lender cannot pick the appraiser.  It must be done by an independent third party.<br /> <br /> What's wrong with that?  1) it adds cost because the Appraisal Management Company must earn a profit, and 2) worse, some send appraisers from far away who are not familar with local real estate conditions.  Many times that results in an artificially low appraisal.  If that happens to you, appeal the appraisal.  Our office does that frequently and in about 2/3 a higher appraisal results.<P><a href="http://davesuttonhomes.com/blog/2012/03/02/what-home-buyers-need-to-know-about-appraisal-management-companies" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/03/02/what-home-buyers-need-to-know-about-appraisal-management-companies#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/03/02/what-home-buyers-need-to-know-about-appraisal-management-companiesFri, 02 Mar 2012 10:38:00 GMTWhat Does Master Investor Warren Buffet Say About Buying Real Estate?http://davesuttonhomes.com/blog/2012/02/27/what-does-master-investor-warren-buffet-say-about-buying-real-estate<div>Well known investor Warren Buffet (Berkshire Hathaway) was interviewed on CNBC.</div> <div> </div> <div>See his intriguing and blunt thoughts about buying a home (video and transcript) <a href="http://www.cnbc.com/id/46538421">here </a><br /> </div><P><a href="http://davesuttonhomes.com/blog/2012/02/27/what-does-master-investor-warren-buffet-say-about-buying-real-estate" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/02/27/what-does-master-investor-warren-buffet-say-about-buying-real-estate#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/02/27/what-does-master-investor-warren-buffet-say-about-buying-real-estateMon, 27 Feb 2012 17:35:00 GMTWhat's the first thing to consider when home shopping?http://davesuttonhomes.com/blog/2012/01/29/whats-the-first-thing-to-consider-when-home-shopping<div>You probably already know the old saw about the most important factor in a home's price is  "location, location, location".  Of course that's somewhat different for different people.  No one wants to live downwind from a hog farm, but some people think across from a park (or school, or freeway entrance, or...) is a terrific location and others don't want to be near that <br /> </div> <div> </div> <div>But if you're concerned about getting the right home for a payment you can live with, you also need to think about more than just the purchase price.  Your montly payment is affected by taxes and HOA dues if it's a condo or sometimes a PUD.  </div> <div> </div> <div>Then, besides the purchase price, closing costs can be a factor.  I just helped a client buy a house in Portland for which the seller paid 3% of the sales price to cover all the closing costs.  But there are two parts to "closing costs".  One is all the actual costs of closing, like loan fees and title insurance and a dozen other pesky little costs.  The other is "prepaids" - all the ongoing costs of owmership that a lender will require to be prepaid, such as taxes, insurance and a few more.  In the example I noted, these came to about another 3%.   </div> <br /> <div>I hope I've demonstrated that the right place to start a home search is with a good mortgage broker.  Most are happy to spend 15 minutes on the phone with you (or face to face) to ask you a few questions about your income, assets, debts and the like, and then give you a good idea of how much payment you can afford, and what that will translate to in terms of a home purchase price.  If those numbers are something you can live with, then you need to 1) make formal application for a loan, and 2) find a local Realtor to show you how much home you can buy for the payment you're comfortable with.  </div> <div> </div> <div>Finally, the one thing all sellers want to see with any buyer's offer is a preapproval (and not just a "prequlification") letter from a lender.  <br /> </div> <div> </div> <div>I know all that can seem like a huge, complicated and frightening process, but that's mostly just because you don't do it all day every day like the mortgage brokers and Realtors do.  They will guide you through the process step at a time and when it works right (which it usually does), you wind up with the right home for you and enjoy it for years to come.  <br /> </div><P><a href="http://davesuttonhomes.com/blog/2012/01/29/whats-the-first-thing-to-consider-when-home-shopping" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/01/29/whats-the-first-thing-to-consider-when-home-shopping#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/01/29/whats-the-first-thing-to-consider-when-home-shoppingSun, 29 Jan 2012 09:07:00 GMTWhich Way Should We Choose to Hold Title?http://davesuttonhomes.com/blog/2012/01/06/which-way-should-we-choose-to-hold-titleYour offer's been accepted, you've had the home inspection, financing is in order and then someone asks what about what form you want to hold title.  "Well, both of us" you answer.   Not good enough.   Oregon has four forms of holding title (not including trusts, which is also a good answer in some situations).  Click <a href=" http://davesuttonhomes.com/docs/Vesting_Options_Individuals.pdf">here </a>for a brief description of the four forms of holding title in Oregon, courtesy of Fidelity National Title in Portland<P><a href="http://davesuttonhomes.com/blog/2012/01/06/which-way-should-we-choose-to-hold-title" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/01/06/which-way-should-we-choose-to-hold-title#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/01/06/which-way-should-we-choose-to-hold-titleFri, 06 Jan 2012 12:26:00 GMTA 2,000 SqFt 4-BR 2-BA house for $28,612? How can this be? IT CAN'T, and here's whyhttp://davesuttonhomes.com/blog/2012/01/03/a-2000-sqft-4-br-2-ba-house-for-28612-how-can-this-be-it-cant-and-heres-whyAbout once a week I get asked about something like this.  Essentially, "How can such a nice big home be selling for such a low price?  And why is there a street name but no house number in the "listing"?<br /> <br /> Sorry to be the bearer of bad news, but that home is not really for sale, and will never be sold for that price. <br /> <br /> What you're seeing is not a listing (note no street number) but a solicitation by RealtyTrac to sign up for their ($49.95/mo) service providing information on foreclosures (which would get you the street number of a home that's in one of three stages of foreclosure<br /> <br /> 1) Homes which  have received a Notice of Default (NOD) which is simply the lender's notice that the owner is behind (usually three months) on the mortgage payments. If the owner can catch up or make a loan modification or other arrangements, the home will never be on the market (until the owner decides to sell). <br /> <br /> 2) Homes is in Auction stage, meaning a date has been set on which the home will be sold at auction if the owner does not get current or make other arrangements.  Auction dates are commonly postponed serveral times before any sale actually takes place.<br /> <br /> 3) Homeswhich have actually been through the foreclosure auction and are now owned by the bank, but are not yet for sale. Banks own many foreclosed homes today and it appears they are dribbling them in to the market to prevent the further collapse of values that would result were all banks to put all their foreclosed homes on the market at once.   It is not unusual for a year to go buy between foreclosure and actual listing for sale.  Yes, all foreclosed homes are listed with a local Realtor when they are actually for sale.  No, there is no way to buy a bank owned home before it is listed.  <br /> <br /> So where does the impossibly low price come from? It's probably either the amount that the owner is behind on payments or the amount of one mortgage on the home (and there are probably two and maybe three mortgages total). <br /> <br /> I hope that helps you (and others reading this) understand why these "listings" are not what they appear to be, <br /> <br /> If you want a list of foreclosures that ARE actually for sale, I (or most any good Realtor) will be happy to provide that FOR FREE!  Click <a href="http://davesuttonhomes.com/Search-for-Homes.html">here</a> then select "Foreclosures". <P><a href="http://davesuttonhomes.com/blog/2012/01/03/a-2000-sqft-4-br-2-ba-house-for-28612-how-can-this-be-it-cant-and-heres-why" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2012/01/03/a-2000-sqft-4-br-2-ba-house-for-28612-how-can-this-be-it-cant-and-heres-why#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2012/01/03/a-2000-sqft-4-br-2-ba-house-for-28612-how-can-this-be-it-cant-and-heres-whyTue, 03 Jan 2012 14:45:00 GMTWhen Is the Best Time to Buy A House?http://davesuttonhomes.com/blog/2011/10/27/when-is-the-best-time-to-buy-a-house<div> <h1>The "Right Time" to Buy a House </h1> </div> <div>There are so many factors that are part of deciding the "right time" to buy a house that there is no "one size fits all" answer.  Let's take a look at some of the most important.</div> <div> </div> <div> <h2>1) House prices</h2> House prices are a supply and demand function.  Lots of buyers and not very many houses for sale = high house prices. Lots of houses for sale and not very many buyers = lower house prices.  Right now in Portland, the number of homes for sale has been trending down for the last six months, which is holding home prices down. </div> <div> </div> <div> <h2>2) Mortgage rates</h2> <div> In 2006 the mortgage payments for a median priced home in Portland would have been about $1600/month.  Today, it's about half that - $800.   Today's mortgage rates are the lowest  in my lifetime and I bought my first house in 1964.</div> <div> </div> <div> <h2>3) Stop Lighting a Match to Rent Money<br /> </h2> </div> <div>Today in Portland, most people can buy a home for the same as they're paying in rent.<br /> </div> <div>When you rent, the landlord can raise the price at the end of your lease, and Portland rents have been on the rise for the last 2-3 years.  A fixed-rate mortgage payment will never go up.  Mortgage interest is tax deductible.  </div> <div> </div> <div> <h2>4) It's YOUR house</h2> </div> </div> <div> You can paint the living room the color you want, put in a better dishwasher, change the floor covering, upgrade the kitchen...the list can go on, but the joy of having YOUR house is impossible to quantify.  <br /> </div> <div> <br /> </div> <div> <h2> </h2> </div><P><a href="http://davesuttonhomes.com/blog/2011/10/27/when-is-the-best-time-to-buy-a-house" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/10/27/when-is-the-best-time-to-buy-a-house#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/10/27/when-is-the-best-time-to-buy-a-houseThu, 27 Oct 2011 13:50:00 GMTThe Joys of Home Ownershiphttp://davesuttonhomes.com/blog/2011/10/21/the-joys-of-home-ownership<div> <div>Carla Davis Hill has written an insightful column on the subject in Realty Times:</div> <div> </div> <div>"Today's experts spout off the latest statistics about long-term wealth, home values, and interest rates, yet there's a much more sentimental side to homeownership. In fact, many home buyers are drawn to homeownership for these warm and fuzzy reasons. </div> <div style="float: right; margin-left: 5px"> <a href="http://www2.realtytimes.com/rtnews/linktracker.ag?Open&TYPE=RealTimes%5CHouseValues_InnerArticle_C19&LINK=http://info.marketleader.com/form/3758" target="_blank"><br /> </a> </div> <p>Owning a home allows you to put down roots, both figuratively and literally. On one hand you become part of a neighborhood and community. When you rent, neighbors come and go as quickly as leases renew. Homeowners, however, tend to stay put longer. </p> <p>What does this mean for you? You can develop, many times, lifelong relationships. This also means your home will see you through many of life's important milestones." <br /> </p> </div> <div>Read the full article <a href="http://linkd.in/q7BEqy ">here</a></div><P><a href="http://davesuttonhomes.com/blog/2011/10/21/the-joys-of-home-ownership" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/10/21/the-joys-of-home-ownership#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/10/21/the-joys-of-home-ownershipFri, 21 Oct 2011 12:00:00 GMT"It's Time to Buy That House" says The Wall Street Journalhttp://davesuttonhomes.com/blog/2011/10/20/its-time-to-buy-that-house-says-the-wall-street-journal<div>"Houses are more affordable than they've been in decades - and a comparison of prices to yearly rents suggests houses in many markets are a better investment than stocks and bonds."</div> <div> </div> <div>To read the full Wall Street Journal article click <a href="http://linkd.in/pYgoNn">here </a><br /> </div> <div><br /> </div> <div> </div><P><a href="http://davesuttonhomes.com/blog/2011/10/20/its-time-to-buy-that-house-says-the-wall-street-journal" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/10/20/its-time-to-buy-that-house-says-the-wall-street-journal#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/10/20/its-time-to-buy-that-house-says-the-wall-street-journalThu, 20 Oct 2011 19:07:00 GMTI Just Found My Dream Home, but it's Pending. Should I Make an Offer?http://davesuttonhomes.com/blog/2011/10/15/i-just-found-my-dream-home-but-its-pending-should-i-make-an-offer<div>That's a common question, and you can't really get a meaningful answer until your Realtor contacts the Listing Agent to learn the exact stage of the sale.  <img src="http://davesuttonhomes.com/images/iStock_Dancers.jpg" alt="" align="right" height="158" width="117" /></div> <div> </div> <div>Pending status occurs the minute a seller and buyer have agreed on a price and terms for a sale, but that's just the first step in a dance that provides many, many opportunities for either party to break a leg, step on the other's foot, or run out of music.   <br /> </div> <div><br /> </div> <div>If 1) it's set to close in the next few days and 2) all parties seem to be dancing smoothly, then it's probably time to look for your next Dream Home instead.</div> <div><br /> </div> <div>On the other hand if 1) it's a few weeks away from the closing date, OR 2) all parties are not dancing so smoothly, the the seller would probably be very receptive to a back up offer.  </div> <div><br /> </div> <div>Keep in mind that if it's pending the seller is under contract to sell to that buyer, and it will go ahead unless the buyer a) can't get the loan they need, b) the home doesn't appraise at the sales price, c) the home inspection turns up something that buyer and seller can not agree on how to resolve (seller fixes or credits buyer some amount), OR d) a relatively small number of things occur that make the seller want to cancel. </div> <div> </div> <div>So the answer to the question depends on how smoothly the partners are dancing and how close they are to the agreed closing date.  The best answer for that comes from your Realtor's conversation with the Listing Agent.   </div><P><a href="http://davesuttonhomes.com/blog/2011/10/15/i-just-found-my-dream-home-but-its-pending-should-i-make-an-offer" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/10/15/i-just-found-my-dream-home-but-its-pending-should-i-make-an-offer#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/10/15/i-just-found-my-dream-home-but-its-pending-should-i-make-an-offerSat, 15 Oct 2011 20:02:00 GMTShadow Inventory? What's that, and what Does it Have to do with Home Prices?http://davesuttonhomes.com/blog/2011/09/30/shadow-inventory-whats-that-and-what-does-it-have-to-do-with-home-prices<div>Shadow inventory refers to homes in one of three stages of foreclosure:  </div> <div> </div> <div>1) Homes in serious delinquency, usually defined as more than three months past due on payments</div> <div> </div> <div>2) Homes actually facing foreclosure</div> <div> </div> <div>3) Homes owned by the lender because the foreclosure process is complete, even though these homes are not yet listed for sale.  </div> <div> </div> <div>With real estate prices being driven in large part by supply, if the shadow inventory is lower, then fewer homes will be coming up for sale, reducing the future supply and having a positive impact on home prices.  <br /> </div> <div> </div> <div>A friend at First American Title recently shared some information about the Shadow Inventory that I think shows cautiously good news about the future of the housing market.  It's from CoreLogic a well-respected data and analytics company.  Keep in mind these are national statistics<br /> </div> <div> </div> <div> <p>"As of July 2011, the current residential shadow inventory declined slightly to 1.6 million units, representing a supply of 5 months. This is down from 1.9 million units, a supply of 6 months, from a year ago, and follows a decline from April 2011 when shadow inventory stood at 1.7 million units.  This moderate decline in shadow inventory is being driven by a pace of new delinquencies that is slower than the disposition pace of distressed assets.  CoreLogic estimates the current stock of properties in the shadow inventory, also known as pending supply, by calculating the number of distressed properties not currently listed on multiple listing services (MLSs) that are seriously delinquent (90 days or more), in foreclosure and real estate owned (REO) by lenders. Transition rates of "delinquency to foreclosure" and "foreclosure to REO" are used to identify the currently distressed non-listed properties most likely to become REO properties. Properties that are not yet delinquent but may become delinquent in the future are not included in the estimate of the current shadow inventory. Shadow inventory is typically not included in the official metrics of unsold inventory.</p> <p> <img src="http://davesuttonhomes.com/images/Shadow_Inventory_Chart.jpg" alt="" align="left" height="426" width="556" /></p> <div> <strong></strong></div> <div><strong>Data Highlights</strong></div> <p> </p> <p style="text-indent:-.25in;"><span style="font-family:Symbol;">·<span style="font:7.0pt "Times New Roman"">        </span></span>The shadow inventory of residential properties as of July 2011 fell to 1.6 million units, or 5-months' worth of supply, down from 1.9 million units, or a 6-months' supply, as compared to July 2010. </p> <p style="text-indent:-.25in;"><span style="font-family:Symbol;">·<span style="font:7.0pt "Times New Roman"">        </span></span>Of the 1.6 million properties currently in the shadow inventory, 770,000 units are seriously delinquent (2.2-months' supply), 430,000 are in some stage of foreclosure (1.2-months' supply) and 390,000 are already in REO (1.1-months' supply). </p> <p style="text-indent:-.25in;"><span style="font-family:Symbol;">·<span style="font:7.0pt "Times New Roman"">        </span></span>As of July 2011 the shadow inventory is 22 percent lower than the peak in January 2010 at 2 million units, 8.4-months' supply. </p> <p style="text-indent:-.25in;"><span style="font-family:Symbol;">·<span style="font:7.0pt "Times New Roman"">        </span></span>The total shadow and visible inventory was 5.4 million units in July 2011, down from 6.1 million units a year ago.  The shadow inventory accounts for 29 percent of the combined shadow and visible inventories. </p> <p style="text-indent:-.25in;"><span style="font-family:Symbol;">·<span style="font:7.0pt "Times New Roman"">        </span></span>The aggregate current mortgage debt outstanding of the shadow inventory was $336 billion in July 2011, down 18 percent from $411 billion a year ago. </p> <p style="margin-left:0in">Mark Fleming, chief economist for CoreLogic, commented, "The steady improvement in the shadow inventory is a positive development for the housing market. However, continued price declines, high levels of negative equity and a sluggish labor market will keep the shadow supply elevated for an extended period of time."</p> <p style="margin-left:0in"> </p> <p style="margin-left:0in"><span style="color:black;">This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipientï¿½s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or web site.</span></p> <p> </p> <strong><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black;">David Bard</span></strong><span style="font-size:8.0pt;font-family:"Verdana","sans-serif"; color:black;"><br /> </span><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black;">Account Executive</span><span style="font-size:8.0pt;font-family:"Verdana","sans-serif";color:black;"><br /> </span><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black;">Title & Settlement Services</span><span style="font-size: 8pt; font-family: "Verdana","sans-serif"; color: black;"><br /> </span> <div><span style="font-size: 8pt; font-family: "Verdana","sans-serif"; color: black;"> </span><img src="http://davesuttonhomes.com/images/CoreLogic_Logo.jpg" alt="" align="left" width="143" /></div> <div> </div> <div> </div> <div> </div> <div> </div> <strong></strong><span style="font-size:9.0pt;font-family:"Arial","sans-serif";color:black;"><br /> <br /> </span>  </div><P><a href="http://davesuttonhomes.com/blog/2011/09/30/shadow-inventory-whats-that-and-what-does-it-have-to-do-with-home-prices" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/09/30/shadow-inventory-whats-that-and-what-does-it-have-to-do-with-home-prices#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/09/30/shadow-inventory-whats-that-and-what-does-it-have-to-do-with-home-pricesFri, 30 Sep 2011 14:58:00 GMTMortgage Rates UNDER 4.00%? Some under 3.00%?http://davesuttonhomes.com/blog/2011/09/27/mortgage-rates-under-400-some-under-300<div>I don't claim to be a mortgage or lending expert, but a couple of lenders send me their rate sheets every week and the last ones I've seen have all the types of mortgages under 4.0%!  ARM's under 3.0%.  If you can afford to pay rent, you can almost certainly afford to buy a home.  </div> <div> </div> <div>While home prices are very attractive now, in the Portland, Oregon area they have been trending steadily upward all through 2011.   You may very well have missed "the bottom of the market".  One thing certain about that elusive bottom - we won't know until it's passed.   There will not be freeway billboards announcing, "TODAY is the bottom of the market!"<br /> </div><P><a href="http://davesuttonhomes.com/blog/2011/09/27/mortgage-rates-under-400-some-under-300" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/09/27/mortgage-rates-under-400-some-under-300#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/09/27/mortgage-rates-under-400-some-under-300Tue, 27 Sep 2011 15:25:00 GMTRent to Own? Why? Are You Sure?http://davesuttonhomes.com/blog/2011/09/27/rent-to-own-why-are-you-sure<div>In another forum, the question was about how to write a rent to own contract to protect the buyer from over paying at the end of the rental period.  My response was another question.   "Why don't you want to buy now?" There are so many good mortgage products available, especially for first time buyers. Mortgages are running near all-time low rates, and home prices have begun, at least in Oregon, a steady march upward since January 2011. </div> <div> </div> <div>Down payments are reasonable - no more than 3.5% and sellers will give credits that might pay even part of that.  VA loans are no money down, as are a couple of other programs.  </div> <div> </div> <div>The issue with any rent to own or lease to purchase program is both seller and buyer are gambling on what the home will be worth at the end of the lease period.   Since no one's crystal ball extends very far in to the future (mine doesn't even get me to tomorrow), it's almost a given that one party will be unhappy with the price pad at the end of the term. Either home prices will increase more than the parties believed at the beginning, in which case the seller is unhappy, or less than first believed, in which case the buyer is unhappyl <br /> </div> <div> </div> <div>Then it brings in the whole question of financing.  What happens if the buyer can't get the necessary mortgage a year from now?  Or they can get a mortgage but rates have increased to the point that the buyer can't live with higher payments. <br /> </div> <div> </div> <div>Rent to Own, or Lease to Buy or whatever you call it, is almost always a bad deal for someone.   Especially with today's rates, buying now is the best answer.  <br /> </div><P><a href="http://davesuttonhomes.com/blog/2011/09/27/rent-to-own-why-are-you-sure" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/09/27/rent-to-own-why-are-you-sure#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/09/27/rent-to-own-why-are-you-sureTue, 27 Sep 2011 15:18:00 GMTFHA Loan Limits Dropped 10/31. Reinstatement passed Congress 11/18-11http://davesuttonhomes.com/blog/2011/09/16/fha-loan-limits-dropped-1031-reinstatement-passed-congress-1118-11<div><span style="font-family: Verdana,Arial; font-size: 12px;"><span style="font-family: Verdana;"></span></span></div> <div>Update 11/20/11<span style="font-size: 12pt; font-family: "Times New Roman","serif";"> </span></div> <div></div> <div>Congress Restores FHA Loan Limits.  <br /> </div> <div> </div> <div>This action will help make mortgages more affordable and accessible for hard-working, middle class families in 669 counties in 42 states and territories.  It reinstates the FHA loan limits (see the amount for each Oregon county below - now back to "Current FHA Loan Limit" ) through 2013.  However, Congress chose not to apply the loan limits restoration to Fannie Mae and Freddie Mac.  Mortgage backed by those two organizations will remain at the 115 percent of local area median home prices up to $625,000.   <br /> </div> <div></div> <div>----------------------------------</div> <div><span style="font-family: Verdana,Arial; font-size: 12px;"><span style="font-family: Verdana;"><span style="font-family: Verdana,Arial; font-size: 12px;"><span style="font-family: Verdana;">FHA loans are about half of the home loans made today. </span></span>The current FHA loan limits have been in place since February of 2008, when Congress set them as part of the Emergency Stimulus Act.  Housing conditions have not improved enough to warrant letting the limits drop.  Here's how the loan limits will change in Oregon counties unless Congress acts.   You might want to let your Member of Congress know how you feel about that.  Oregon members contact information is <a href="http://www.contactingthecongress.org/cgi-bin/newseek.cgi?site=ctc2011&state=or">here</a><br /> </span></span></div> <div></div> <div><br /> </div> <div> <table style="border-collapse: collapse; border: medium none;" border="1" cellpadding="0" cellspacing="0"> <tbody> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">County</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Current FHA Loan Limit</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Limit as of 10/1/2011</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Difference</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p> </p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p> </p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p> </p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p> </p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Benton</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$337,500</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$295,550</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($41,950)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Clackamas </span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <table style="border-collapse: collapse; border: medium none;" border="1" cellpadding="0" cellspacing="0"> <tbody> <tr> <td style="width: 54.15pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="90"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$418,750</span></p> </td> </tr> </tbody> </table> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$362,250</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($56,500)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Clatsop </span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$347,500</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$281,750</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($65,750)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Columbia </span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$418,750</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$362,250</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($56,500)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Curry </span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$351,250</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$327,750</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($23,500)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Deschutes </span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$447,500</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$305,900</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($141,600)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Hood River County</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$393,750</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$371,450</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($22,300)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Jackson County</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$422,500</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$279,450</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($143,050)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Josephine County</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$325,000</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$271,050</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($53,950)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Lane</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$343,750</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$271,050</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($72,700)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Lincoln</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$312,500</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$276,000</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($36,500)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Marion</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$295,000</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$271,050</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($23,950)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Multnomah</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$418,750</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$362,250</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($56,500)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Polk</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$295,000</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$271,050</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($23,950)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Tillamook</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$343,750</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$287,500</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($56,250)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Washington</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$418,750</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$362,250</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($56,500)</span></p> </td> </tr> <tr> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">Yamhill</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$418,750</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">$362,250</span></p> </td> <td style="width: 119.7pt; padding: 0in 5.4pt; border: 1px dotted #7f7c75;" valign="top" width="200"> <p><span style="font-size:9.0pt;font-family:"Verdana","sans-serif"">($56,500)</span></p> </td> </tr> </tbody> </table>   <br /> </div><P><a href="http://davesuttonhomes.com/blog/2011/09/16/fha-loan-limits-dropped-1031-reinstatement-passed-congress-1118-11" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/09/16/fha-loan-limits-dropped-1031-reinstatement-passed-congress-1118-11#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/09/16/fha-loan-limits-dropped-1031-reinstatement-passed-congress-1118-11Fri, 16 Sep 2011 16:19:00 GMTWill I Recover the Cost of Upgrading my (fill in the blank) ? How can I know?http://davesuttonhomes.com/blog/2011/09/01/will-i-recover-the-cost-of-upgrading-my-fill-in-the-blank-how-can-i-knowThe best reference I know (short of an actual bid from a local contractor) for remodeling cost and how it <img src="http://davesuttonhomes.com/images/Bath_blueprint_reduced.jpg" align="right" height="103" width="156" alt="" />affects the value is Home Remodeling magazine's bi-annual issue on the subject, available free <a href="http://www.remodeling.hw.net/2010/costvsvalue/division/pacific.aspx ">here</a><br /> <br /> It defines every remodeling job.  For example a mid-range bathroom remodel is described as:<br /> <br /> "Update an existing 5-by-7-foot bathroom. Replace all fixtures to include 30-by-60-inch porcelain-on-steel tub with 4-by-4-inch ceramic tile surround; new single-lever temperature and pressure-balanced shower control; standard white toilet; solid-surface vanity counter with integral sink; recessed medicine cabinet with light; ceramic tile floor; vinyl wallpaper"<br /> <br /> Then it will give you an estimate of what that will cost, in every major metropolitan area of the county (including Portland, OR), and how much you are likely to recover upon resale.   Basic and upscale remodeling versions are also available which include the same cost vs. value numbers.  <br /> <br /> I think you'll find some surprising numbers. <br /> <br /><P><a href="http://davesuttonhomes.com/blog/2011/09/01/will-i-recover-the-cost-of-upgrading-my-fill-in-the-blank-how-can-i-know" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/09/01/will-i-recover-the-cost-of-upgrading-my-fill-in-the-blank-how-can-i-know#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/09/01/will-i-recover-the-cost-of-upgrading-my-fill-in-the-blank-how-can-i-knowThu, 01 Sep 2011 14:42:00 GMTRealtors® Call on White House to Host Housing Summithttp://davesuttonhomes.com/blog/2011/08/25/realtors-call-on-white-house-to-host-housing-summit<p> Washington, August 23, 2011 </p> <p>To help develop policies that will stabilize the nation's housing market and support an economic recovery, the National Association of Realtors® urges the White House to host a summit of policy makers, industry leaders and government stake holders focused on revitalizing the nation's housing.</p> <p>As the leading advocate for housing issues, Realtors® know that home ownership supports our nation's economy, said NAR President <a href="http://www.realtor.org/wps/wcm/connect/RO-Content/ro/about_nar/fullbio_phipps">Ron Phipps</a>, broker-president of Phipps Realty in Warwick, R.I. Housing and home ownership issues affect all Americans, which is why we need strong policies that will help stabilize the housing market and lead the way out of today'ss economic struggles.<br /> </p> <p>A housing recovery is key to America's economic strength, and NAR wants to make sure that proposed legislation and regulatory rules or changes to current programs and incentives don't further exacerbate problems within fragile real estate markets across the country.</p> <p>A broad discussion among all stakeholders about what needs to be done to put the housing market and economy on a path to recovery could provide valuable recommendations and solutions to promote responsible, sustainable home ownership and stabilize and revitalize the housing industry and economy.</p> <p>Realtors® look forward to coming together and working with President Obama and his administration as well as our industry partners to design a housing recovery plan that will serve our nation, its 75 million home owners and indeed all Americans today and into the future, said Phipps.</p> <p>The National Association of Realtors®, The Voice for Real Estate, is America's largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.</p><P><a href="http://davesuttonhomes.com/blog/2011/08/25/realtors-call-on-white-house-to-host-housing-summit" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/08/25/realtors-call-on-white-house-to-host-housing-summit#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/08/25/realtors-call-on-white-house-to-host-housing-summitThu, 25 Aug 2011 08:17:00 GMTIf Now is Not the Time to Buy, When is?http://davesuttonhomes.com/blog/2011/08/19/if-now-is-not-the-time-to-buy-when-is<div>In 2006, monthly payments to buy the median priced home in Portland (with 20% down) were $1,733 </div> <div><img src="http://davesuttonhomes.com/images/iStock_000003468087XSmall.jpg" width="183" align="right" height="137" alt="" /> <br /> </div> <div> </div> <div>Today, the payment would be just a smidgeon over HALF of that - $879.  Why is that?  There are two factors: 1) the median price of a Portland home is now $220,000, down from $342.700 in 2006, and 2) mortgage rates have dropped dramatically as well (4.537% APR as I write, down from 6.650% APR in 2006).  <br /> </div> <div> </div> <div>My friend Mark Boeck, with Windermere Mortgage, put together a year by year comparison of the cost of buying the median priced Portland home.  You can see how it changes year by year <a href=" http://davesuttonhomes.com/docs/If_not_now_When.pdf">here</a>.</div> <div> </div> <div>I am regularly showing fine homes at that median price in the Portland area - detached or condo.  In fact, half that median price will still buy a nice home.  Just twice that median will buy a spectacular home.  Call, email or text me to see what I mean.  <br /> </div><P><a href="http://davesuttonhomes.com/blog/2011/08/19/if-now-is-not-the-time-to-buy-when-is" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/08/19/if-now-is-not-the-time-to-buy-when-is#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/08/19/if-now-is-not-the-time-to-buy-when-isFri, 19 Aug 2011 12:10:00 GMTHome Prices to Rise 10% in 12 months? Where? Says Who?http://davesuttonhomes.com/blog/2011/08/10/home-prices-to-rise-10-in-12-months-where-says-who<div><img src="http://davesuttonhomes.com/images/Home_Prices_UP_-_small.jpg" height="164" width="164" align="right" alt="" />" Seattle and Portland's prices are expected to stay flat through next March and then record double-digit gains of just over 10% each over the following 12 months."</div> <div><br /> </div> <div>That's from David Stiff, chief economist for Fiserv, which provides information management and analyses data for the financial services industry.  ""Homes are undervalued in the Northwest," said Stiff, "the economy is diverse and the demographics strong. It has tech, manufacturing and extractive industries (like lumbering and mining) and people are still moving into the area."</div> <div><br /> </div> <div>It's from an August 9, 2011 article in CNN Money.   The forecast is all the more remarkable because the article predictions for the rest of the country are still negative.  The whole article is <a href="http://cnnmon.ie/paU3pK">here</a><br /> </div> <div></div><P><a href="http://davesuttonhomes.com/blog/2011/08/10/home-prices-to-rise-10-in-12-months-where-says-who" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/08/10/home-prices-to-rise-10-in-12-months-where-says-who#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/08/10/home-prices-to-rise-10-in-12-months-where-says-whoWed, 10 Aug 2011 14:44:00 GMTAre the Appliances Included?http://davesuttonhomes.com/blog/2011/08/07/are-the-appliances-included<div>"Everything is negotiable" is a good thought to keep in mind when buying a home. <img src="http://davesuttonhomes.com/images/iStock_000016907829XSmall.jpg" height="168" width="169" align="left" alt="" /></div> <div> </div> <br /> I recently wrote an offer for a buyer which specified that the refrigerator-freezer, washer, dryer and the patio furniture were included. In my experience, refrigerator-freezers usually stay with the house, but certainly not always. In this case, the seller wanted to keep the refrigerator-freezer but was happy to leave the patio furniture. <br /> <br /> If you want the Picasso on the living room wall, ask for it.<P><a href="http://davesuttonhomes.com/blog/2011/08/07/are-the-appliances-included" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/08/07/are-the-appliances-included#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/08/07/are-the-appliances-includedSun, 07 Aug 2011 14:48:00 GMTLet's Buy a Foreclosure at Auction at a Real Bargain Price - NOThttp://davesuttonhomes.com/blog/2011/07/28/lets-buy-a-foreclosure-at-auction-at-a-real-bargain-price-notI regularly hear from people who think buying a home at the sheriff's auction is a great idea.  It is, but only for a very few who 1) can buy for cash that day, 2) are willing to buy without seeing the inside of the home, and 3) have the financial depth to be able to absorb the losses that will inevitably come when they buy something that requires more in repairs than they will recover when they sell it.  <br /> <br /> <strong>How it Works</strong><br /> <br /> The auction clerk begins with a list of homes that, as of that morning, were to be sold at auction today.  Generally speaking, well more than half of those (last time I was there it was 275) will not be sold at that moment because the auction date has been postponed (and sometimes cancelled), usually at the request of the lender.  So the process begins with the clerk reading the information on each of those individually, most often ending with "postponed at the request of the beneficiary") That can take the better part of an hour.  <br /> <br /> <div>When the clerk gets to the list of homes which are actually going to sold that day, about 30 investor's agents gather round.  </div> <div> </div> <div>The clerk announces that these:</div> <br /> 1. are "as-is, where is" sales, <br /> 2) are all-cash sales<br /> 3) all sales are final<br /> 4) those wishing to bid must produce a cashier's check in an amount in excess of any bid they expect to make.  <br /> <br /> The agents then hand over the checks for the clerk's inspection and noting on his list of approved bidders and the bidding begins<br /> <br /> Four out of five homes receive no bid, or no bid above the minimum bid set by the lender,  in which case the home goes back to the lender. <br /> <br /> One in five are actually purchased by an investor.<br /> <br /> <strong>Why You Don't Want to Do it:</strong><a href="http://images.trulia.com/blogimg/f/5/0/e/160659_1264448524645_o.jpg"><img alt="" style="border: 0pt none ; margin: 5px; width: 266px; height: 176px;" src="http://images.trulia.com/blogimg/f/5/0/e/160659_1264448524645_b.jpg" align="right" /></a><br /> <br /> 1) Because you have not been able to see inside  the homes (a "drive-by" is the best you can do), <strong>buying these homes is a significant gamble.</strong>  While most can be renovated without major expense, some will require major expense, or even be a tear down, and there is almost no way to determine that in advance.  Some are missing appliances, plumbing fixtures, copper piping, wiring (I showed one missing both furnace and water heater).<br /> <br /> 2) There may very well be <strong>renters, squatters, or even the previous owners</strong> (technically squatters since they no longer own the home) <strong>still living in the home. </strong>  They are not happy to have a new owner throw them out.  <strong>Some will not go willingly</strong>, to the point that you have to have a Sheriff's deputy with you.  Either way you'd best have a locksmith standing by to change the locks or someone will be back in the next day. <br /> <br /> 3) There may be <strong>mechanics liens or tax liens</strong> that must be paid by the buyer<br /> <br /> 4) <strong>You can not get a mortgage</strong> to buy one of these homes.  You must have cash for the full purchase price to even bid.  <br /> <br /> The <strong>bottom line</strong> is that this is <strong>not the place</strong> for someone <strong>to buy a home to live in</strong>, nor an investor who cannot afford to lose the entire purchase price (by buying a home that requires much more repair than estimated).<br /> <br /> <strong>One Exception</strong>:  Homes foreclosed by HUD are available for both personal and professional inspections.  You can see the ones in your area ONLY with a HUD-CERTIFIED REALTOR.  <br /> <br /> A <strong>Much Better Way</strong>?  Buy a <strong>bank owned home </strong>that has already been through the foreclosure process.  These are not appreciably different than buying any other home with a Realtor.  As a general rule bank owned homes are sold for somewhat less than owner-sold homes, but not likely enough less to permit a profit from flipping.<P><a href="http://davesuttonhomes.com/blog/2011/07/28/lets-buy-a-foreclosure-at-auction-at-a-real-bargain-price-not" target="_blank">Permalink</a> | <a href="http://davesuttonhomes.com/blog/2011/07/28/lets-buy-a-foreclosure-at-auction-at-a-real-bargain-price-not#comments" target="_blank">Comments</a></P>Dave Suttonhttp://davesuttonhomes.com/blog/2011/07/28/lets-buy-a-foreclosure-at-auction-at-a-real-bargain-price-notThu, 28 Jul 2011 14:43:00 GMT