Wednesday, June 18, 2014

PICKING THE RIGHT NEIGHBORHOOD IS AS IMPORTANT AS PICKING THE RIGHT HOME

When most of us shop for a new home, affordability is at the top of our "important requirements" list. While this is clearly an important factor, finding the right neighborhood involves a slew of other considerations. Here are some of the factors to think about before settling on your new location.

Cost: Your income, credit scores and debt combine with the down payment, mortgage term, interest rate and current real estate market to determine how much house you can afford. Property taxes also have an effect on housing cost by neighborhood so be sure to investigate if the area is getting a steal or getting the short end of the stick when it comes to return on tax dollars.
It's a good idea to think about the places you visit frequently and how close or far away they will be.
 (You can also check your credit scores for free on Credit.com to get an idea of where you stand before you begin your search.)

Proximity to Schools: Even if you do not have children, proximity to good public schools instantly adds value to your neighborhood and property, which can be crucial when it comes time to sell the home. Be sure to look into the public and private education in your area and calculate the costs and convenience factors of each if you do have children.

Safety: Understanding the crime rate in your neighborhood is an important step to making the decision of where to live. It's important to take into account the violent and property crime numbers and how they compare to other neighborhoods you are considering.

Demographics and Growth: Diversity, population and neighborhood characteristics are all important aspects that make a big difference on a neighborhood. Investigate how the neighborhood has grown in recent years -- and who and how many people live there -- to do determine if it is somewhere you would fit in or stand out.

Access: When picking your next home, it's a good idea to think about the places you visit frequently and how close or far away they will be. From grocery stores and pharmacies to banks, laundromats and gyms, evaluate whether the options around your potential dwelling include what you need or like at a reasonable cost. You may want to try out your commute as it can greatly impact your quality of life.

Finding the right neighborhood for you and your wallet is a personal experience. While it may not always be foolproof, it's a good idea to research the above factors for a potential home before signing on the dotted line!

*courtesy of AOL real estate
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Tuesday, June 10, 2014

FORECLOSURES HIT 8 YEAR LOW

Foreclosure activity across the United States dropped to an eight-year low in May as banks reclaimed fewer homes and foreclosure starts saw their lowest levels in years, RealtyTrac said in a report on Tuesday. RealtyTrac, which tracks and maintains housing market data, said 109,824 properties across the country were at some stage of the foreclosure process in May. That marked a 5 percent decline from April and left foreclosure activity -- foreclosure notices, scheduled auctions and bank repossessions -- 26 percent below the year-ago level.

May was the 44th consecutive month foreclosure activity was down on an annual basis, a sign of the housing market's steady progress toward recovery. "This is showing that foreclosures are fading further into the rear-view mirror in most places," Daren Blomquist, vice president for RealtyTrac, told Reuters. "This is good news for the housing market."

Lenders reclaimed a total of 28,373 properties in May, down 6 percent from April and the lowest level since July 2007. Repossessions were down 27 percent from a year ago. Nationwide, 47,085 properties were set for foreclosure auctions, the fewest since December 2007, the month the nation fell into recession.

Foreclosure starts also were at a multiyear low, with lenders starting the process on 49,240 properties in May, down 10 percent from the previous month and down 32 percent from a year ago. The decline brought starts to their lowest level since December 2005. With one in every 436 homes in foreclosure, Florida continued to have the nation's highest foreclosure rate, followed by Maryland, Nevada and Illinois.

"I think the numbers will continue to drop and could flatline by early next year," Blomquist said.

*courtesy of AOL Real Estate
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Wednesday, June 4, 2014

GREAT ADVICE FOR HOMEBUYERS VISITING OPEN HOUSES

Open houses are the gold standard in real estate. They've been around for decades and will be ingrained in the buying and selling of homes for years to come. But as a buyer, are you making the most of your open house visits?

Here are some best practices for buyers at all ends of the homebuying spectrum.

Use the open house to learn the market without committing: For the most part, open houses are just that -- open. They make it possible for anyone to see a property in a certain time period, without an appointment or even being a very serious buyer. New buyers should leverage the open house opportunity to get a feel for the market. In today's world, using online search tools, mobile appsand the open house, a buyer can start to get a feel for pricing and the market before committing to an agent. Most importantly, open houses are some of the best ways for buyer and agent relationships to start.

You don't have to sign in (but don't be rude): The biggest fear of some newer buyers is that a real estate agent at an open house will be all over them, ask for their contact information and then start harassing them for the next three weeks. It does happen, but it's also common courtesy to at least recognize and say hello to the agent at the open house. Don't forget, in addition to trying to sell the home for her client, for safety reasons, the agent is keeping a look out for who is coming and going. It's polite to say hello and introduce yourself to the agent, but you can also politely decline to sign in.

If you're an active buyer, you should make yourself known to the agent. Let the seller's agent know who your agent is and don't be afraid to express interest. When it comes time to review an offer with a seller, listing agents like to put a face to a name.

Watch the other buyers: You can tell a lot about the activity and marketability of a home by watching the other buyers. If you observe a lot of people walking in and out quickly, the home probably has some issues. Are the buyers hanging around, asking questions of the listing agent and huddling in the corner talking to their spouses or partners? If so, it could be a sign this is a well-priced and "hot" listing. If you're interested too, observing other buyers at the open house could help you learn about the competition.

Ask the agent questions: The real estate agent is there for a reason. It's his or her job. If he or she is the listing agent, ask questions. The agent is a direct line to the seller and should know more than anyone about the property and the seller. Your agent can funnel your questions to the listing agent. But if you're there, ask away. Watch the agent's facial expression and reaction to your questions. If it's a competitive market, ask questions such as: "Why is the seller selling?" "Is there a certain day to review offers or have you had a lot of showings?" In a slow market, ask how long the property has been on the market and what the seller's motivations are. A good agent will engage you because it's good for his seller.

Be open to meeting your future agent: When considering a new doctor, lawyer or CPA, you don't get the chance to see them in their element until you've decided to work with them. Not true for real estate agents. Some of the best buyer/seller/real estate relationships begin at open houses.

A good agent is wearing two hats at the open house. In addition to watching the serious buyers and getting feedback for the seller, an active agent is also looking to interact with future clients.

Face to face, informal and relevant, the interaction with an agent at an open house is important. You can get a feel for a person just from a brief meeting. If you sense the agent could be someone you could work with, ask some open-ended questions, such as "How's the market?" and "What areas do you cover?"

Why open houses have been around for decades: At any open house, there are people at every stage of the homebuying game, from just testing the waters to looking at homes daily, making offers and working closely with an agent. For someone new to the market, it's helpful to know the best practices for visiting open houses and interacting with the real estate agent. For more experienced buyers, the open house is an opportunity to make a second or third visit, getting a closer look at the details and uncovering things you may have missed earlier. There are lots of reasons why open houses have been around for decades -- and why you should take full advantage of them.

*courtesy of AOL Real Estate
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Thursday, May 22, 2014

MEMORIAL DAY WEEKEND EVENTS IN PORTLAND!


2014 Memorial Day Weekend Events:



courtesy of pdxpipeline.com
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Tuesday, May 6, 2014

OREGON IN TOP 5 FOR HOME PRICE APPRECIATION

Home prices continued their steady climb upward in March and are helping crimp home sales in this year’s spring buying season, according to a report from analytics firm CoreLogic.
With a rise of 11.1 percent in March from the same month a year ago, home prices have now risen year over year for 25 consecutive months, the report said. Prices rose 1.4 percent from February.
Low inventory, tight credit and high price conditions helped keep transaction volume low, providing signs that the spring buying season may be sluggish this year, CoreLogic noted.
“March data on new- and existing-home sales was weaker than expected and is a cause for concern as we enter the spring buying season,” said Mark Fleming, chief economist for CoreLogic, in a statement.
Anthony Hull, Realogy’s chief financial officer, also noted that home sales during the spring buying season seemed poised to be lower than expected in the firm’s first-quarter earnings report.
In March, only Arkansas out of all U.S. states saw a year-over-year drop (down 0.3 percent) in its home prices. Home prices in Colorado, Washington, D.C., North Dakota, South Dakota, Texas and Wyoming all surpassed previous highs in March.When distressed homes are excluded, home prices were up 9.5 percent year over year in March.
The five states that saw the greatest home price appreciation (including distressed sales) in March were: California (17.2 percent), Nevada (15.5 percent), Georgia (12.4 percent), Hawaii (12.3 percent) and Oregon (12.2 percent).
The five states that saw the greatest home price appreciation (excluding distressed sales) in March were: California (13.2 percent), Nevada (11.8 percent), Florida (10.9 percent), Maine (10.6 percent) and Hawaii (10.6 percent).


*courtesy of Inman News

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Wednesday, April 30, 2014

MORTGAGES ARE EASIER TO OBTAIN THAN MOST PEOPLE THINK

Are you on the home-buying sidelines this spring because you think you wouldn’t be able to qualify for a mortgage? Do you know what sort of FICO credit scores are being accepted by lenders at the moment — they’re lower than they were a year ago — and whether your score might now be good enough?
You may be part of the surprisingly large crowd of folks who fear the home-loan unknown. A new national consumer survey found that 56 percent of all potential purchasers of homes — people who don’t own now but hope to during the coming 24 months — say they’re out of the market because they don’t want to face the possibility of rejection by lenders. Even 30 percent of current homeowners believe they wouldn’t pass muster today.
Using a statistical sample of 1,055 Americans 18 and older, survey research firm OmniTel — polling on behalf of mortgage lender loanDepot — documented widespread uncertainty and lack of specific knowledge about current market conditions relative to qualifying to buy a home. According to the survey, 74 percent of potential buyers who would need a mortgage concede that they have not scoped out the current market or taken the steps needed to qualify. Many potential buyers believe that they need near-perfect credit scores to get a home loan. Half of those surveyed said they had no idea what minimum FICO score is needed for a mortgage and nearly a fifth (18 percent) said the minimum score might be 770 or higher.
Debt-to-income ratios are another insurmountable obstacle in many potential buyers’ eyes — enough so that they don’t even try to obtain a mortgage. Most lenders use two forms of debt ratios: a “front end” ratio that compares the monthly costs of the proposed new mortgage and other housing expenses with the applicant’s monthly income; and a “back end” ratio comparing all recurring monthly debt obligations, including housing expenses, student loans, credit cards and the like, with the applicant’s monthly income. Roughly a third of all potential buyers on the sidelines believe their debt ratios are too high.
But what’s the statistical reality on debt ratios, FICO-score minimums and down payments? What are lenders approving? The best answers come from Ellie Mae, a company whose loan origination and tracking software is widely used by lenders. Every month, Ellie Mae analyzes a huge sample of new mortgage originations nationwide and issues an overview report rich with the sort of detail that buyers sitting on the sidelines could use.
Here’s what it found in its report on March, released last week:
●Thirty-three percent of all new loans last month had borrower FICO scores below 700. A year ago, it was just 27 percent. (FICO scores max out at 830, which is considered excellent credit; applicants with scores under 700 present higher credit risks to lenders.) Federal Housing Administration-insured home-purchase loans had an average FICO in March of 684. Conventional mortgages, those designed for purchase by investors Fannie Mae and Freddie Mac, still have relatively high FICOs: They averaged 755 in March, but that was down slightly from 759 a year before. Lenders are doing far fewer refinancings this year, so they are loosening up on FICO minimums for purchasers.
●Debt ratios also are more generous than many sidelined potential borrowers probably imagine. FHA’s average front end (housing costs) ratio last month for purchase loans was 28 percent. In other words, if your projected housing and mortgage-related costs represent 28 percent of monthly income, you’re average. Fannie Mae and Freddie Mac loans averaged 22 percent ratios on the front end. Back end (total recurring debt) ratios for FHA averaged 41 percent. For Fannie and Freddie, it was lower: 34 percent.
●Down payments can be small if that’s what you need. FHA’s average down payment last month for home purchases was 5 percent, but many borrowers put down just 3.5 percent. Fannie and Freddie also allow 5 percent down, provided you can pay mortgage insurance premiums. Down payments on VA loans can go to zero if your veteran status allows you to qualify. Department of Agriculture loans — which are designed for home buyers who live in small towns — also allow for down payments of zero.
The point here: If you’re on the sidelines, check out what’s really going on in the mortgage market. There may be more opportunities — even in an era of tighter underwriting — than you think.



*courtesy of the Washington Post
 
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Tuesday, March 25, 2014

ONLY IN PORTLAND!!



We're number one.

Portland's status as the world's preeminent tree-hugging destination is now official.

Guinness World Records, the collector and officiant of records big and small, recognized Portland's 2013 summer tree hugging event as a world record.

Last July, 936 people simultaneously hugged a tree at Portland's Washington Park for one minute.

The July 20th event, put on by the Hoyt Arboretum, Treecology Inc, and Friends of Trees, shattered the previous record of 720 tree-huggers. The United Kingdomheld the previous mark, set in 2011.

It can take months for Guinness to confirm a record, even then, records often switch hands multiple times during the course of several years. 

Scotland attempted to break Portland's record just a few months after last summer's event but fell short.

Did you miss the event last year and feel like hugging a big old tree? Don't fret.

Portland will look to build on its record on July 12, according to the Bureau of Environmental Services' website.



*courtesy of oregonlive.com
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