FHA Homeowners Armed with Knowledge Program

FHA Homeowners Armed with Knowledge Program

The government is offering first-time home buyers a discount on their mortgage for completing required classes.

The HAWK or Homeowners Armed with Knowledge Program is an FHA program where first-time home buyers receive a discount on their mortgage insurance premiums in exchange for completing education.

The counseling and education covers how to evaluate housing affordability and mortgage alternatives, finance management and rights and responsibilities of homeownership.

The HAWK for New Homebuyers program provides FHA insurance pricing incentives to first-time homebuyers who participate in housing counseling.

For more information about the HAWK program, please visit www.hud.gov.

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.

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Back to Market Housing Programs

Back to Market Housing Programs

Buyers can qualify for a home loan after they’ve been through a foreclosure, short sale or a deed in-lieu-of foreclosure. They are able to qualify for certain programs based upon their baseline and their individual situation.

There are programs available with Fannie Mae and Freddie Mac, the two biggest mortgage purchasers. The loan program shortens the waiting period to buy a home to as little as two to three years after a foreclosure, deed in lieu of foreclosure, or short sale.

There must have been extenuating circumstances such as a loss of 20% of their income for a minimum of 6 months. The buyer is required to prove the loss of income was beyond their control and the hardship led to a foreclosure, deed in lieu of foreclosure, or short sale.

FHA has the “Back to Work Program” which shortens the waiting period to buy a home to as little as one year after a foreclosure, bankruptcy, deed in lieu of foreclosure, or short sale. The buyer must prove their financial hardship that was beyond their control.

Also, we’ve heard of an interesting program called the Mortgage Alternative Program (MAP). It’s a lease-to-own program which allows the buyer to get into a home while they work to qualify for a traditional home loan in the future. Again, the buyer is required to prove the loss of income was beyond their control and the hardship led to a foreclosure, deed in lieu of foreclosure, or short sale.

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.

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Buyer Negotiation Strategies

Buyer Negotiation Strategies

Sellers spend their time, energy and money to get their home ready for the market. When the home goes into the multiple listing service, they are excited because they are moving. However, it’s just the beginning of the negotiations.

Buyers are using different strategies to ensure their offer is accepted by the seller when there are multiple offers on a property. For example, one of the strategies is to offer over the asking price and hope that necessary repairs will be discovered during the inspection period or the appraisal will be less than the sales price. Buyers will ask for a substantial credit as an opportunity to re-negotiate the price with the seller.

To help our sellers combat this tactic, we suggest that when they receive multiple offers, is to accept a second offer in the back-up position. This provides the seller with leverage. When the buyer’s inspection negotiation strategy comes up, the seller can move on to the buyer who is in the back-up position if they aren’t able to come to terms. With advance planning, the buyer negotiation strategies can be avoided.

Some transactions can die because of last minute demands from buyer. Recently, we had a transaction where the buyer offered over the asking price and during the inspection period, they asked for a huge chunk off the price. Luckily, we had an accepted offer in the back-up position and my client declined the buyer’s request. The seller moved on with the buyer that was initially in the second position and the transaction closed.

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.

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Real Estate Websites & Actual Market Value

How accurate are websites in determining actual market value?

Websites, such as Zillow & Trulia, search tax records to determine the homes sq./ft. and input the sq./ft. into an algorithm to determine a value based upon the average price per sq./ft. Unfortunately, they don’t take into consideration, location, condition, upgrades etc.

Zillow and Trulia are a great place to look for real estate trends but as a specific evaluation tool, it’s unreliable.

Condition is a big portion of value and websites are unable to peer into a house and adjust the value based upon the condition.

The Birmingham Alabama Business Journal stated home value evaluation websites accuracy is within 5% of true value only 50% the time.

The best way to find out the true market value of your home is having an actual human determine the value. A real estate agent is able to provide you with a market analysis and take everything into consideration. Besides, a professional market analysis is complimentary.

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.

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Seller Strategies For Buying & Selling

Seller’s Strategies For Buying & Selling

Some sellers who want to sell their home are feeling stuck. They are worried about finding a new home in this market.

I spoke with a seller yesterday with that exact fear. She wants to sell but she’s worried that she won’t be able to purchase a replacement property.

For example, let’s say a seller accepts an offer that they cannot refuse, what would happen if they cannot find a new home?

Planning in advance is essential.

A couple of options is to negotiate a long closing or a rent back period. A seller could rent their property from the new homeowner for a specific period of time after closing.

If you don’t plan in advance, you could have a problem. If the seller fails to follow through with the agreement to sell their home, they can be sued for specific performance.

For example, we had a seller who quit his job and decided to move out of state. We put his home on the market, he accepted an offer, inspections and an appraisal was completed etc. Toward the end of closing, he was offered a new job in Portland and accepted. We asked the buyer if they would let our seller out of the transaction. They wouldn’t as they wanted to proceed with the purchase per the agreement. My seller was forced to choose between being sued or proceed with the sale. He close to sell and purchase another home in the neighborhood.

In an effort to make the sale & purchase as easy as possible, plan in advance.

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.

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The Current Real Estate Market & Cash Buyers

The Current Real Estate Market & Cash Buyers

CNN has reported that the number of cash real estate transactions in the first quarter of 2014 more than doubled compared with last year. What’s causing this?

I think it’s the shortage in inventory. It’s causing multiple offers on properties. If you want to make your offer as strong as possible, it’s best to offer cash or a large cash downpayment.

Sellers are selecting the strongest offer and sellers are specifically looking for buyers that are able to pay cash and close quickly. When a buyer pays cash, the seller doesn’t need to be concerned about an appraisal and the strict underwriting guidelines.

According to CNN, Miami, New York, Boston, and the California Coast are attracting foreign cash buyers. Is it the same in Portland?

Yes. If you come over from a foreign country to buy a real estate in the United States, it’s likely that you do not have a credit score or credit history. Therefore, it’s likely that you will need to pay cash to purchase a property in the United States.

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.

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Pocket Listings

Pocket Listings

A pocket listing is where a seller signs a listing agreement with a broker but they don’t want the house marketed on the Multiple Listing Service (MLS). Due to the current housing market, this practice is becoming less common.

What’s the benefits and drawbacks of pocket listings?

The main benefit is convenience. Many property owners want to sell their house but do not want the aggravation associated with showing the property.

However, if you aren’t marketing your home on the MLS, you’re not exposing the house in the entire market so it’s harder to determine market value.

For example, if I’m going to sell candy and I’m going to sell it to one person, it’s worth $1. However, if 30 buyers want the same candy, it increases the value of the candy to perhaps $15.

What’s your experience with pocket listings?

As a general rule, we don’t encourage our sellers to keep their property as a pocket listing because it doesn’t fully represent the seller. We’ve had occasions where sellers signs the listing agreement but they aren’t ready to have the house exposed to the market. In the meanwhile, if someone wants to buy the house, they want to sell.

Recently, one of our buyers heard about a house for sale directly through the seller and we submitted what we felt was a fair market value offer based upon the comps. The seller decided at the last moment to expose the property to the entire market and they ended up getting $15,000 or $20,000 more than what we had offered.

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.

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Neighborhood Expert

Neighborhood Expert

Do you need a neighborhood expert to sell your home?

No. Anyone can go to Google and get all the facts they need about a neighborhood.

Will a real estate agent marketed as the “neighborhood expert” be able to provide information to a purchaser that’s not available online?

There’s so much information on the internet, I don’t feel that hiring a neighborhood specialist is necessary. In my experience, neighborhood specialists are Realtors that market to specific sellers in a specific area. I believe a Realtor’s true value lies in their negotiation skills and ability to use the internet obtain market information.

Has the Internet been a positive influence on the real estate market?

Absolutely. We have better informed consumers and skilled agents that have the ability to serve a larger population.

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.

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WHAT IS RADON?

WHAT IS RADON?

Should we be concerned about radon?

Radon is a gas that can be in the soil. It’s the number one leading cause of lung cancer after smoking in the US. Also, reports have shown that one in four homes in the Portland area has an elevated level of radon.

What tests are available for Radon?

Since Radon is located in the soil, it can come up through a crack in your foundation. Do-it-yourself tests are available for purchase at most hardware stores. You would collect the samples and send it to a lab. Also, professionals can perform a test for less than $200.

Would a do-it-yourself & professional test yield the same results?

I would recommend starting with a do-it-yourself test. Carefully follow the directions and if your lab results show Radon, I would recommend hiring a professional to complete a test. The professional will collect more data than the standard do-it-yourself test. Also, if their test reveals levels of Radon that requires mitigation, they can give you a bid to remove the gas from your home.

Do homebuyers perform Radon tests?

Although, it’s not common knowledge to the average homebuyer, we recommend our clients to test for Radon as it’s prevalent in our area.

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.

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16831 SE Knoll Ridge Ter

16831 SE Knoll Ridge Ter

16831 SE KNOLL RIDGE TER Milwaukie, OR 97267
RMLS Listing #: 14692626

Stunning custom home on corner lot boasts views, cathedral ceilings, hardwood floors. Gourmet kitchen incl granite slab counters, double oven, breakfast bar, walk-in pantry & Frigidaire SS appliances. Luxurious master suite w/double-sided fireplace, balcony, jetted tub, walk-in shower & HUGE walk-in closet. Beautifully landscaped & fenced rear exterior w/raised beds & deck for al fresco dining.

http://www.searchingportlandhomes.com/listing/mlsid/210/propertyid/14692626/

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

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