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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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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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.

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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.

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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

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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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