Builders, Land Development and the First-Time Home Buyer

Builders, Land Development and the First-Time Home Buyer

Builders, Land Development and the First-Time Home Buyer

The limited home inventory in Portland is tight and it’s getting tighter.

The real estate market downturn of 2007 caused most land development to come to a grinding halt. Now that the market has picked back up, builders are looking for new projects by purchasing existing homes (such as fixers, entry level etc.) to develop the land. Builders are now directly in competition with the first-time homebuyers for these homes.

How is this affecting home sales?

It’s increasing demand which increases market value if there’s competition for the house. Typically, builders can pay cash, close quickly and waive inspections as they are removing the existing house to build a more expensive home.

Is the City of Portland concerned?

Land use laws and urban growth boundaries direct development in Portland. If there’s a shortage of available land, builders are required to look at existing properties for development. I know several builders that weren’t interested in building in Multnomah county three years ago but they are now.

Tune in to KXL’s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

Follow Us!
Twitter @Rick_Sadle
Pinterest http://www.pinterest.com/ricksadle/
Facebook Page https://www.facebook.com/TheSadleRealEstateTeam

Changing Interest Rates of Jumbo & Conventional Home Loans

Changing Interest Rates of Jumbo & Conventional Home Loans

Changing Interest Rates of Jumbo & Conventional Home Loans

Interest rates for home loans which exceed $417,000 (jumbo loans) have been averaging a lower interest rate than a traditional 20% down conventional loan. Currently, a $250,000 loan is paying a higher interest rate than in jumbo loan.

Shouldn’t jumbo loans have a higher interest rate for putting the bank at a higher risk?

There are some changes changes that are happening in the current lending industry. Conventional loan fees have increased due to lenders sustaining losses. Also, lenders are using jumbo loans to entice wealthy individuals to serve their other financial needs such as brokerage services and financial management.

Is it going to stay this way?

No, it’s temporary. Now the high-end homes are selling, bankers are using the conventional loans to make up for some of the losses. Once the lenders start taking losses on the jumbo loans, it’ll change again.

Tune in to KXL’s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

Follow Us!
Twitter @Rick_Sadle
Pinterest http://www.pinterest.com/ricksadle/
Facebook Page https://www.facebook.com/TheSadleRealEstateTeam

What does it say if my home doesn’t sell quickly?

Selling A Home

What does it say if my home doesn’t sell quickly?

One out of every seven homes in the Portland area is selling in less than three days. What does it say if your home doesn’t sell in less than three days?

It says you listed with the wrong Realtor.  Not every home can sell that fast, but if your house isn’t selling in the first couple of weeks, it’s probably one of three things; you got the wrong price, the wrong condition or the wrong marketing.

Is it good for my house to sell quickly?

It depends. If your home sold in three days above asking price, you would say yes. There is a lack of inventory right now. There is a high demand and a lack of supply.  It’s simple economics.

How does a lack of inventory affect the sale of my home?

In a market with this much demand, it’s not a bad idea to price your house just a little below current market value. You’ll get buyers emotionally involved and excited about the house which hopefully results in multiple offers.

Why would sellers price their home below market value? Shouldn’t sellers price their home above market value?

No. When we advertise an overpriced home, buyers know that it’s overpriced because it will sit on the market. If the house was priced properly, it would have sold.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

Follow Us!
Twitter @Rick_Sadle
Pinterest http://www.pinterest.com/ricksadle/
Facebook Page https://www.facebook.com/TheSadleRealEstateTeam

Should buyers & sellers purchase a home warranty?

Home Warranty

Should buyers & sellers purchase a home warranty?

Quite honestly, home warranties are a great idea.

When we’re selling a home, it’s something we use as a value proposition. We market the home warranty to potential purchasers. During the transaction, a home warranty can help with inspection or repair negotiations.

Recently we had an inspection on one of my listings where the inspector found that the furnace was functional but it was near the end of its useful life. In lieu of replacing the $3500 furnace, the seller offered the buyer a home warranty. If something goes wrong in the near future, for a service fee of $60, the buyer will have the furnace repaired.

What is the cost of a home warranty?

A one year home warranty will cost approximately between $400-$500 depending on which company and add-ons you choose. They’re definitely worth the money.

We purchase one every year for our house. Our oven stopped functioning so we filed a claim with the home warranty company. They weren’t able to repair it due to it’s age (they couldn’t find the parts to repair it) so they purchased us a brand new $1200 oven.

Our buyer specialists search for homes that offer complimentary home warranties as it provides additional protection for the buyer. However, if we cannot find a home where the seller is offering a home warranty, we suggest for our buyers to purchase one themselves.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

Follow Us!
Twitter @Rick_Sadle
Pinterest http://www.pinterest.com/ricksadle/
Facebook Page https://www.facebook.com/TheSadleRealEstateTeam

16672 Fir Lane

16672 Fir Lane

16672 Fir Lane Lake Oswego, OR 97034
RMLS Listing #: 14172536

Stunning Monogram custom home brimming w/ high-end amenities boasts main level living w/ gourmet kitchen w/slab granite counters, island, wine storage & Butler pantry. Great room living w/fireplace & exposed beam ceilings, formal dining, office w/fireplace. Impressive master suite w/ two walk-in closets. Upstairs features large bonus room, three bedrooms two w/en-suite baths. Private backyard w/patio & water feature. Deeded lake access.

http://www.searchingportlandhomes.com/listing/mlsid/210/propertyid/14172536/

For 24-hr recorded information and current price, call
1-800-358-1829 ext. 2491

Follow Us!
TWITTER: @Rick_Sadle
PINTEREST: http://www.pinterest.com/ricksadle/
FACEBOOK PAGE: http://www.facebook.com/TheSadleRealEstateTeam

Four Downtown Condo Buildings Are in Litigation

Four Downtown Condo Buildings Are Tied Up In A Court Fight Over Construction Defects

There’s HOA litigation due to leaky plumbing products for the Elizabeth, the Avenue Lofts, the Benson Tower, and the Edge Lofts. All of these HOA’s are suing the Victaulic company for failing gaskets and other piping products. The lawsuit states that the widespread failures have caused property damage and without repair, further damage is inevitable.

When a homeowners association files a lawsuit, buyers are going to have a challenging time finding financing. Fannie Mae and Freddy Mac typically decline to purchase mortgages for condos involved in litigation, which causes lenders to withdraw financing. Essentially, this limits the sellers to cash-only purchasers until the litigation is resolved.

In terms of the total number of sales, let’s say out of hundred sales, perhaps 15 of them would be cash purchasers. This low percentage would greatly decrease seller’s potential pool of buyers and therefore affect the price of their condo.

The typical outcome to homeowners association litigation is a settlement. In this case, each of the HOA associations are suing for approximately $2M each. However, if the settlement doesn’t cover repairs, court costs etc., owners could be assessed for the remaining balance.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to Real Estate advice from the expert himself, Rick Sadle.

Which neighborhood are hot and which ones are not when it comes to home sales?

Which neighborhood are hot and which ones are not when it comes to home sales?

Which neighborhood are hot and which ones are not when it comes to home sales?

According to the latest figures, as usual, Northeast and Southeast areas are the winners. In northeast areas like Laurelhurst, Irvington and Alberta, we have as much as 13.5% appreciation. Impending sales are up 18% versus the same time last year.

Overall, people selling their houses are getting an average of 99% of the list price that they asked for. But for the properties in Northeast and Southeast close-in, they are averaging about 100% of the list price.

Our average sale price is $307,000 and it’s been a while since we’ve seen that figure. But even though the mortgage’s been so hot, the affordability index is 136, which meanst he family earning the median income of $68,300 can afford 136% of the mortgage payment of a medium priced home in Portland.

If someone wanted to buy a second house for rental, anywhere below is the price point $225,000 which is also the same for first time buyers.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to Real Estate advice from the expert himself, Rick Sadle.

Follow Us!
Twitter @Rick_Sadle
Pinterest
Facebook Page

Copyright © 2013 Portland's Real Estate Advisory.