Blythe Creek's Mt Hood Real Estate Blog: January 2013

Wednesday, January 23, 2013

Shifting from A Buyer’s Market

As the market shifts from a buyer's market, it's good to know how to improve your chances to have the seller accept your offer.

Once you decide on a home, don't waste time; write an offer and submit it as soon as possible. Competing with another buyer happens more frequently than you'd expect. Multiple offers are a seller's advantage but here are some tips to level the playing field:

Realistic offer - don't give the impression you're trying to "steal" the property. Submit comparable sales that justify your offer.
Pre-approval letter - this satisfies seller's biggest concern that an unqualified buyer will unnecessarily take the home off the market and the seller will lose other opportunities.
More earnest money - it shows you're serious and makes the seller feel like the contract will actually close.
Minimize contingencies - from a seller's standpoint, each contingency is one more reason why the sale won't go through. They feel the home is "off the market" and they're in limbo.
Shorten inspection period - your agent can help you set a reasonable date but let the seller know you're willing to close prior to that if possible.
Write a personal letter to the seller telling them why you want their home - this can be the emotional connection to the seller that makes the difference in you getting the home.

A seller wants to feel confident that the offer they accept will actually close so they can plan for their next move. Following tips like these can definitely affect negotiations and help put together an offer that is more likely to be accepted.

Monday, January 14, 2013

The Market is “Looking Up”

January is always a good time to take a look at Market Trends. Just how did the previous year shake out when looking at the Total Volume in Residential Real Estate on Mt Hood? Also, where did the Median Price and the Number of Sales stack up when compared to the year before?

So, I decided to take a look at not just last year, but the last ten years of data for the Mt Hood Area, including Welches, Brightwood, Rhododendron, Government Camp and part of Sandy Oregon.
It took until the 3rd quarter of 2012 to finally see the market experience “appreciation” for the first time in years! We have to remind ourselves, that this indeed has been a very challenging real estate market nation wide.

Numbers don’t lie. We have indeed crawled out of a big Hole!!

The 2012 Mt Hood Residential Sale Volume was over $28,000,000 in 2012. The Median Sale Price was $172,000.
Median Sale Price Trend on Mt Hood 2

The ten year Number of Sales per year is indeed one of the most dramatic graphs. Things are indeed back “On the Way Up!”

Check out all unique Homes and Cabins in the Mt Hood area by property type:

Mt Hood Cabins (Private and Forest Service Leased Land)
Mt Hood WaterFront homes and cabins
Mt Hood Golfcourse homes
Mt Hood Foreslosures
Mt Hood Condominiums
Mt Hood View Properties
Mt Hood Homes on Acreage

Interest Rates are excellent and Home Prices are still affordable, a winning combination to to buy in 2013. When looking to buy Mt. Hood Real Estate come to MtHoodRealEstate.net

Saturday, January 12, 2013

Home Warranty or Not when Selling or Buying

It's common for sellers to consider offering and buyers might find it an incentive, but a growing number of homeowners are purchasing the home warranties themselves to limit the unexpected expenses of repairs and replacements.

I have very simple common sense advise on these. Definitely consider it for homes that are in the upper price ranges and definitely for homes that have heat pumps older than 5 to 10 years.

A home protection plan is a renewable service contract that covers the repair or replacement of many of the components in a home. Some homeowners especially like the convenience that it organizes a qualified service provider as well as the cost of the items.
There are a variety of companies that offer home warranties and the coverage may differ but the majority of things will include heating, air conditioning most built-in and some free-standing appliances, as well as other specific items. Additional specific coverage may be available for other things like pool and spa equipment.
Some investors are even placing this coverage on their rental properties to limit the amount of maintenance repairs during the year. It is a viable alternative to managing the financial risk and the stress dealing with unexpected expenses.
If you're interested in home warranties, I'll be happy to send you more information .

Wednesday, January 9, 2013

2012 Market Snapshot: A Year In Review

In 2012 there were 140 Home Sales which includes, homes, cabins and condos in the Mt Hood Area, including Brightwood, Rhododendron, Welches and Government Camp. This is a approximately a 35% increase in the number of sales over 2011! The overall % difference in average sales price compared to 2011 will be published any day from 2012 from RMLS and I will share it at that time.

The Graph on the right shows the volume per quarter in 2012.

The Average Sale Price in 2012 was $138,257 and the Median Sale Price was $172,000. The Average Price went down but the Median ticked slightly up which is a good indicator of where the middle ground is going, hence the health of the local market.

Now some additional statistics:

25% of the transactions were Distressed Sales with 20% REO or Bank Owned Properties. That is down from 36% Distressed Sales in 2011!!!!
Waterfront Properties accounted for 30% of the transactions in 2012, which was slightly up from 2011.
Forest Service Leased Land Cabins accounted for 15% of the total sales again in 2012

Mt Hood Real Estate For Sale in the Villages of Mt Hood includes Welches Oregon Real Estate, Brightwood Oregon Real Estate, Government Camp Oregon Real Estate and Rhododendron Oregon Real Estate plus Mt Hood Lots and Land It is an excellent time to buy with interest rates the lowest they have been in close to FIFTY (50) Years!
When looking for Mt Hood Real Estate come to MtHoodRealEstate.net for the latest information.

Tuesday, January 8, 2013

The Question All Tenants Should Ask: Should I Continue Renting?

The question plaguing every tenant who wants a home of their own is whether they should continue to rent or is it the right time to buy?

The combination of good prices and low mortgage rates make it considerably cheaper t alt

o own than rent in most markets. Assuming a person is qualified with a down payment and won't be moving for several years, there may not be a better time to buy a home.
In the example below, the total house payment is $1,281.01 compared to $1,500 to rent the same home. Before you consider any of the financial benefits attached to home ownership, it's cheaper to own than to rent.
The net cost of housing falls to $764 or just more than half the house payment when you consider the principal reduction due to normal amortization, a modest appreciation and the tax savings along with a reasonable maintenance expense that a tenant would not have to pay.
One of the biggest benefits is the growing equity. As the value goes up, the unpaid balance goes down. A favorable leverage causes their low down payment to grow to $40,609 in a short seven years based on a modest 1% appreciation.
alt

There's an expression often heard in real estate circles: "Whether you rent or buy, you pay for the house you occupy." You're either buying it for yourself or you're helping the landlord buy it.
Check out a Rent vs. Own to see how your numbers will compare to this example or call me to do it for you.

Mortgage Debt Relief Act Extended Through 2013

Good News!
Lawmakers managed to extend the Mortgage Forgiveness Debt Relief Act as part of their 11^th hour deal to avoid the fiscal cliff. For those owners contemplating a short sales, this means that you may not be liable for taxes on debt forgiven. The law, established in 2007, was set to expire Dec. 31, 2012 and was extended for another year.
For sellers, the Act only applies if you lived in the property as your personal residence for two of the five last years and it only applies to purchase money or money used to make capital improvements to the property.
Always consult a legal professional when reviewing the option of a short sale.
Mt Hood Real Estate For Sale in the Villages of Mt Hood includes:

It is an excellent time to buy with interest rates the lowest they have been in close to FIFTY (50) Years….still!!!
When looking for Mt Hood Real Estate come to MtHoodRealEstate.net for the latest information

A Very Happy and Prosperous New Year for 2013

After spending the holidays with family and friends, this is a time of the year to start thinking about changes to make in our lives, both personal and in business. We wanted to share one of ours with you.

Our goal is to become your REALTOR® for life. We want you to think of us first when you need to buy or sell and

that you’ll recommend us to your friends too. That kind of trust has to be earned and we’re committed to helping you be a better homeowner even when you’re not buying or selling.
The strategy is simple. A well-informed homeowner will make better decisions. We’ll periodically offer information through articles and social media on a wide variety of home-related topics like maintenance tips, tax law changes, financing suggestions, insurance, equity building strategies, and rental property investments.
Please contact us if you need a recommendation on a service provider. Our experience has built a list of reputable and reasonable contractors that you can rely upon. When you have any kind of home-related questions, I hope you’ll have the confidence to call us.
Happy New Year. We sincerely look forward to helping you or your friends.
Mt Hood Real Estate For Sale in the Villages of Mt Hood includes:

November 2012 Mt Hood Closed Residential Sales

Here is a list of Homes, Condos and Cabins closed in the month of November in the Villages of Mt Hood from Alder Creek to Government Camp on the Western slopes of Mt Hood. This area includes homes in Welches, Brightwood, Rhododendron, Government Camp and Sandy, Oregon.