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

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

Home Buyer Trends

Home Buyer Trends

How does the current home buyer trends compare to 2013?

It’s been fascinating to watch. Last year was the year the first-time home buyer and investor. Low interest rates coupled with appreciating home prices made sense for existing home owners to stay put while it gave an opportunity for investors & first-time homebuyers to enter the marketplace.

This year, as prices have been appreciating, we’ve seen current homeowners selling their existing homes and moving up.

Will the “move up” market impact price?

Absolutely. With the influx of homes on the market, it has created more of a demand which we feel indicates that the prices will continue to increase.

Will this be beneficial for higher-end or lower-end homes?

It seems to be more beneficial for higher-end homes as homes over $500k are starting to sell.

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
Facebook Page

What is a Boomerang Buyer?

What is a Boomerang Buyer?

A “Boomerang Buyer” is someone who lost their home due to foreclosure or short sale but could be back in the market to buy another home.

Are there many boomerang buyers out there?

There are literally millions of ex-homeowners who lost their homes and may qualify to buy a home again.

How much of the factor could the boomerang buyers be in the housing market recovery?

There are a millions of potential purchasers which could have a very significant impact on the market. In fact, FHA has introduced the “Back To Work Program” to assist these buyers. The program allows buyers to obtain an FHA insured loan in as little as 12 months after a short sale or foreclosure as long as they can prove it was due to a qualified hardship.

If you’ve had a short sale or foreclosure over twelve months ago and you are thinking about purchasing a home, contact a Realtor and Mortgage Broker to see if you qualify.

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
Facebook Page

Copyright © 2013 Portland's Real Estate Advisory.