6 Reasons Why Selling During the Winter May Be the Best Decision Ever

Here are six reasons why selling your home in winter is a great idea.

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Forget what you’ve heard about spring—winter is where home sellers can flourish! Today we’ll be going over six reasons why winter is a great time to sell your home:
 

1. Potential buyers tend to be more serious. In spring, you’ll find tire kickers and lookie-loos who are more interested in finding out what they should price their own homes for. When you list in the winter, people looking at homes are looking to buy. Your home will also stand out because there are fewer homes on the market in this season.
2. Parents have time to look. School’s in session and things have settled down. Parents have had time to think things through and begin looking for an upgraded home. They’re also wanting to avoid the competition of other buyers in spring.
3. Senior citizens want to downsize. They often want to list during the winter because there are fewer sellers, which ensures a better price for their homes.
4. There’s less competition. Because buyers are more serious and there are fewer houses on the market, your home is an immediate option.
5. Buyers have more money. After the first of the year, many buyers have more money due to bonuses and tax returns.
6. Employees are transferred and need homes. This is the time of year where corporations transfer employees, meaning these people need homes fast.

You’re playing the odds when you sell your home, and the odds of selling your home are greater in the winter. If you’d like help with your real estate needs, have any questions, or need more information, feel free to reach out to me at 541-284-8068. I look forward to hearing from you.
 

Merry Christmas and Happy New Year

The holiday season is finally here. We hope you and your family enjoy all that it has to offer.

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As the holiday season approaches, I wanted to make sure and reach out to wish all of you a merry Christmas and a happy new year. The holiday season isn’t always bright and cheery for everyone. The holidays are difficult for many, especially for those who have lost loved ones. Try to pass it on this holiday season and bring some light into someone else’s life. If you help others be happy, you’ll be happy too.

6 Crucial Tips for Sellers Who Plan to List This Fall

When listing in the fall, there are six critical tips all sellers should follow.

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Given the high level of buyer demand still left over from the market’s summer months, fall is actually a great time to sell. And with interest rates on the rise, buyers and sellers alike can benefit from striking a deal as soon as possible.

Even so, it’s important to realize that today’s average interest rate (5%) is still historically low compared to the previous average of 7%.

With all of this in mind, here are six key tips sellers should follow when listing in the fall:

1. Don’t over-improve your home. Making your home look its best is great, but don’t invest too much money on projects that won’t bring a high return.


2. Declutter and depersonalize your home. Buyers want to be able to imagine themselves living in your home. Family photos or other highly personal touches, therefore, may make it difficult for them to do so. A messy environment, too, can be off-putting for buyers.


3. Freshen up your curb appeal. Your home’s curb appeal will serve as a buyer’s first impression, so it’s essential that your property’s exterior looks its best. Even just mowing your lawn and adding fresh mulch can go a long way.

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Selling without the guidance of a real estate professional would be a major mistake.

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4. Don’t limit the number of showings. The more people who view your home, the better chance you’ll have of earning top dollar. Your property should always be in show-ready condition while it’s on the market.


5. Don’t overprice your home. Even though we’ve been in a seller’s market for several months now, market conditions have begun to shift. Smart sellers today know that listing at fair market value is the best way to generate buyer interest and earn the best possible price. An overpriced home will earn far less money than one that was priced correctly from the start.


6. Don’t sell your property on your own. Working with an agent will not only help you secure superior results for your listing, but it will also help you avoid potential legal issues. Real estate agents are trained to understand all of the ins and outs of the listing process. Selling without the guidance of such a professional would be a major mistake.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Remodeling—Is It the Right Choice for You?

 Is remodeling the right way to go for homeowners? The truth is that it depends on whether you plan to stay there or not.

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The answer to whether remodeling your home is the right choice for you depends on your motive. For example, if you’re looking to improve your surroundings and you plan to stay at your home, then go ahead and pursue whatever projects you have planned and can afford.

However, if you’re planning to sell your home, it’s a different story. Dollar for dollar, you usually don’t get the same value you put into a renovated home when you sell it.

Here is a list of major remodeling projects coupled with the recovery rate associated with each:

• Installing a patio. The projected recovery rate for this project would only be about 47%, meaning you’d get less than half of what you put into the project back when you sold the home.

• Renovating your bathroom. The projected recovery rate would be around 70%.

• Upgrading your entryway door. This project has a surprisingly high recovery rate—91%.

• Renovating your kitchen. For this project, you should only expect to receive an estimated 59% return.

• Replacing your windows. This remodeling task has a projected recovery rate of 74%.

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Dollar for dollar, you usually don’t get the same value you put into a renovated home when you sell it.

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If you have any questions about real estate or remodeling, don’t hesitate to reach out to us. We’d be glad to help you out.

An Update on Our Lane County Market

What’s going on in our Lane County real estate market as we approach fall? Let’s find out.

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As we approach the fall, many of you are likely wondering what’s going on in our Lane County real estate market. Of course, if you’re anything like me, the coming autumn also means you’ve got something else on your mind: football season.

Believe it or not, these two things are actually somewhat related. This is because when football season arrives, buyers tend to have fewer opportunities to attend open houses.

That aside, let’s take a look at the market itself.

Inventory has increased from the all-time low we saw in March, when there were just 42 days of supply. Now, supply is up to 54 days’ worth of homes. This means if no new homes came on to our market, it would take just 54 days for Lane County to run out of listings.

This puts sellers in the driver's seat. In fact, we would need about 180 days’ worth of supply for buyers and sellers to be on equal ground in our market.

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Sellers are in the driver’s seat, but it’s still a great time to buy.

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As far as median price, we’ve seen a growth of 9% since this time last year, leaving us with a current median price of approximately $272,000. This increase in price is part of a larger upward trend that we’ve been seeing for the past four years. So when will this rapid growth end?

With the number of millennial homebuyers continuing to increase, and interest rates still rising, as well, experts are divided on when we can expect the market to level out. With that in mind, though, the appreciation of home values is expected to slow down to a rate of 3% or 4% in the near future.

The bottom line is this: It is still a great time to buy. So if you want to know how to navigate your specific market, please reach out.

As always, if you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Does Your Homeowners Insurance Policy Cover Your Home’s Appreciation?

With all the recent wildfires in California, I wanted to talk about whether or not you are covered by your homeowners insurance policy if a natural disaster was to strike us.

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Today we’re going to talk about whether your homeowners insurance policy is keeping up with your home’s continual appreciation.

As you know, we’ve had many catastrophes lately with forest fires in California. Could that ever happen to your home here in Lane County? It’s always a possibility.

If you live here, you’re obviously aware of how rapidly our home values have been rising over the last few years. Is your homeowners insurance policy keeping up with your home’s increasing value?

Let’s say you purchased an insurance policy 10 years ago when your home was worth $180,000 and today it’s worth $300,000. Let’s also say we did have a forest fire and the home burned down. Does your insurance policy just cover the $180,000, or does it cover more?

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You want to make sure you’re covered if disaster strikes.

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In reality, your land value is a non-factor. The land stays the same regardless. However, the structure of most insurance companies has an automatic adjustment built in.

Here’s how it works. Many companies look at the material and labor costs in your neighborhood to determine the loss and how much will be paid out. They don’t look at the value that is posted on an appraisal. They want to know how much the home is going to cost them to replace.

I recommend checking with your insurance company, because they each do things in a different way. You want to make sure you’re covered in case disaster strikes.

If you want to know what your home’s current value is, we’d be happy to provide you with a free CMA. You don’t need one for insurance purposes, however.

If you have any questions about your Lane County home or your homeowners insurance, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Are We in for a Market Correction Soon?

Property values continue to rise in Lane County, but I don’t think this trend is sustainable.

 If you’re a buyer, I think you should buy now.

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As most people are already aware, home sales continue to rise in Lane County. Over the past 12 months, property values have also risen to the tune of 8.4%. This is great news for sellers, but not for buyers.

Does this mean we’re in for a market correction soon? There are two prevailing opinions about this.

Some experts predict that property values will increase by 4% every year for the next several years, mostly due to millennials entering the market with more zeal than they have in the past. Others maintain that we can’t sustain such growth without running into an affordability issue, and we’re already having affordability issues as it is.

If I was a betting man, I’d predict that Lane County can’t continue this increase until more industry develops. For example, property values in Portland are rising more quickly than ours, but they also have more industry.

If you’re a buyer, you can either buy now and hope values keep rising so your home’s value does as well or wait for a correction. The problem with waiting for a correction, though, is no one knows if or when that will happen. It could be several years from now, so renting for that length of time definitely wouldn’t be advantageous. Another issue to take into consideration is interest rates will continue to rise, which hurts both buyers and sellers.

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The problem with waiting for a market correction is nobody knows when that will happen.

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With that being said, my advice to buyers is to buy as soon as possible.

If you have any other questions about our market or any other real estate needs, don’t hesitate to give me a call. I’d be happy to help you.

What You Need to Know About PMI

Are you looking at buying a home and putting less than 20% down? Your loan will require you to purchase private mortgage insurance, or PMI.

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What is PMI?

PMI is private mortgage insurance. It is essentially an insurance policy that protects the lender from you not being able to pay your loan. PMI is a monthly fee rolled into your mortgage payment and is required for all conventional loans that have down payments less than 20%.

For conventional loans, once you have built up equity of 20% in your home, you can cancel your PMI and remove the expense from your monthly payment. With FHA loans, however, PMI costs stay with the loan for its duration. Once they have reached the 20% equity level,many people change their FHA loan to a more conventional loan. As the buyer, you pay a monthly premium and the lender is the beneficiary.

PMI costs vary based on your loan-to-value ratio, the amount you owe on your mortgage compared to its value, and your credit score. The better your credit score, the better the rate you are going to get on your private mortgage insurance. You can expect to pay between $30 to $70 per month for every $100,000 you borrow.

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People purchase private mortgage insurance because, even though it is an extra cost, it enables them to buy a home much sooner.

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If your credit score was 800, you could expect to pay $68 a month on a $200,000 loan. If your credit score was 625, meanwhile, you’d pay $268 per month for your private mortgage insurance.

The average down payment last year, according to the National Association of Realtors, was about 10%. For first-time homebuyers, the average down payment was 5%. This means that a lot of people are paying private mortgage insurance.

Why though? While it is an extra cost, it enables you to buy a home much sooner. If homes are appreciating at a certain rate, the sooner you can buy, the better off you are. This helps compensate for the sting of private mortgage insurance.

If you have any additional questions or are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.

How Do Reverse Mortgages Work?

Do you know how reverse mortgages benefit senior citizens? If not, let Ron Smith of Opes Advisors explain.

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What are reverse mortgages? How do they work? To help explain, I have with me Ron Smith, a reverse mortgage expert from Opes Advisors.

I understand that reverse mortgages once had a bad reputation, but that is no longer the case.

It is true that there was a time when, for reverse mortgages, the bank went on title with you, and that is no longer happening. Now, they are simply a loan or lien against your property like a regular mortgage. That way, when you pass away or move out of the house, your heirs get the property just like normal; the bank doesn’t take it over.

There was also once a concern about, say, if one of the borrowers was less than 62 (the minimum age to be eligible for a reverse mortgage) and the older spouse who had the mortgage passed away, what would happen to the spouse? That issue has also been taken care of. Now the spouse can just stay in that house.

Can you clarify what a reverse mortgage actually is?

Typically they are used when somebody has a fixed income, like Social Security or a pension, and they just do not have enough money to make it through the month. We do a loan on the house, at which point, they can either get an income stream, a lump sum of cash, or a line of credit; then they can just take what they need when they need it. As time goes by, they just use those funds to help them pay their bills and live their life. Medical reasons are the one of the primary motivators for reverse mortgages. There is no payment required, although you are welcome to make a payment if you would like. Once you move out of the house, it goes to your estate, allowing your heirs to either pay it off or sell it.

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Reverse mortgages are used when somebody has a fixed income, like Social Security or a pension, and they just don’t have enough money to make it through the month.

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You said that you don’t have to pay it back if you wish—obviously, it will come due at some point, so how does that work?

Once you no longer live in your house, your heirs can sell the house to pay off the loan, or pay it off themselves without selling it. Whatever money is left goes to the estate.

It sounds like a good plan to help senior citizens stay in their homes for a longer time if they lack a good pension plan.

It absolutely is. For example, we are doing one for a lady whose husband passed away. She receives $1,000 a month from Social Security, but her house payment is $796 a month. Through the reverse mortgage, she won’t be getting a lot of money, but we’re going to make that payment go away.

How can people get in touch with you to learn more about reverse mortgages?

They can call me directly at (541) 284-8036. I would be happy to answer any questions for them.

I would like to thank Ron for coming and speaking with me. If you have any real estate questions for me, please feel free to reach out to me. I hope to speak with you soon!

10 Questions to Ask a Potential Agent

Choosing a real estate agent that fits your needs is crucial to the success of your home selling. Today I have a list of the 10 things you should be asking.

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If you are one of the many people thinking about selling your home, there are some things that you should know when considering a real estate agent. You probably already know that you need a good agent. But how do you find that good agent? I made a list for you of the 10 questions you may want to ask when hiring an agent so that you know what to look for.

First of all, you should interview at least three agents. You want to get a good feel for the one that is perfect for you. The following questions are a good way to find out if they are a good fit.

1. What makes you different from the others? Do they have a unique marketing plan or program in place that the other companies don’t?
2. What is the company’s track record and reputation. Ask how many homes the agent has sold in the last year. That is really more important than the company that you go with.
3. What is your marketing plan? What will the Realtor plan to do to help sell and get you top dollar for your home quickly?
4. How many homes have you sold in the last year? That is going to give you a good idea of the productivity of this Realtor. Also, make sure that they are familiar with the neighborhood you are living in.

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Make sure that they are real familiar with the neighborhood you are living in.

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5. Who takes control of advertising? Do you have control over your own marketing? This could make a big difference because if they own their own marketing they can advertise as much as they want to for your home.
6. What is the difference between the listing price and the sale price? Many times, it is close. That is going to tell you that they list the home correctly.
7. How long does it take you to sell a home? This is a big deal because if it takes a long time, the agent is probably not marketing as strongly as maybe they should be.
8. How many buyers are they working with at the moment? This doesn’t mean that the agent is going to sell to their buyers, but it does give you an idea how many people they can share that information with.
9. Do they have a reference list or a testimonial list that they can share with you? You may want to hear from people that have worked with them before to find out the positives and negatives.
10. What happens if you aren’t happy? Are you allowed to cancel your listing if you are not happy with the agent’s work?

If you would like to know more about what to ask when interviewing a potential real estate agent or are interested in selling your home with me, please don’t hesitate to contact me. I look forward to speaking with you soon.

Your April 2018 Market Update

What is going on in the market today? Here is an update for Lane County.

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Today I have your monthly market update for Lane County. In terms of home activity for the month of April, there is actually some good news: the number of listings is up 42% from the month before.

The bad news is that we’ve had an upswing in pendings, as well. As a matter of fact, those have wiped out all our inventory gains. We’re down to 1.4 months’ worth of inventory. That means if we have no additional listings come on to the market, we will sell all of what we have in about 42 days. 

Of course, this makes purchasing a home quite a bit more difficult for buyers, especially because there are a lot of multiple offers going on at the moment. What does that mean for all of us?

Recently we’ve seen a small increase in the number of homes people are putting on the market. The reason they’re doing that is simple: they know that at this time there’s a shortage of listings, making it a good time to sell.

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Don’t let the market situation scare you one way or the other.

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We also know that interest rates are starting to creep up. If you’re thinking about selling a home but aren’t sure if you should list now or wait until, say, the fall, the interest rates will be higher then. That won’t work to the advantage of the buyer or seller. Now is certainly the better time to put your home on the market.

You also need to remember that, yes, our inventory is lacking, but it’s going to improve. The average amount of inventory is six months’ worth, and the average interest rate is about 6%. We are well below both of those numbers.

If you have any questions or need help buying or selling a home, please feel free to reach out to me. I’d love to sit down and discuss your situation.

A Springtime Outdoor Home Maintenance Checklist

I have some spring maintenance tips for your the outside of your home that will have your yard looking its best.

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I dressed up just for springtime today to give you a quick spring outdoor maintenance checklist. These tips will have your home looking its best in no time:

• Clear your lawn of debris such as sticks and branches
• Rake the leaves in the garden beds and the corners of the yard
• Replace your old mulch with fresh new mulch
• Divide and take care of your perennials
• Wash off the outdoor furniture
• Take care of and clean your bbq
• Reattach your hoses to your faucets
• Apply weed killer and fertilizer to your lawn and overseed bare spots
• Power-wash, sand, and stain your deck if needed
• Clean the siding and touch up the paint
• Wash your outdoor wood furniture
• Check the propane tank on your grill
• Repair any broken screens
• Clean your gutters and exterior windows
• Fix and seal any cracks in your driveway
• Plant your summer flowers and bulbs and cut down any woody stems from your plants

Lastly, a quick note on power-washing. It’s easy to select the wrong setting on a power washer and make divots in the wood siding of your house, so double-check that you have it on the “spray” cycle when you use your power washer. I know from experience!

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These tips will get you ready to enjoy your first week of great springtime weather.

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If you have any more questions about outdoor home maintenance items or you’re thinking of buying or selling a home in our market, don’t hesitate to reach out to me. I’d be glad to help you.

Some Quick Tips About Pre-Approval

Is it hard to get pre-approved? Today, I have some quick tips about what you’ll need in order to be pre-approved.

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Suppose you’re ready to buy a house: what do you have to do in order to get pre-approved?

Overall, it’s not very difficult to get pre-approved. First, you need to choose who you want to work with, whether it’s a bank, a credit union, or a mortgage broker. 

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Overall, it’s not very difficult to get pre-approved.

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No matter which one, they’ll all ask for the same items. You’ll need the last two years of your tax statements, so be sure to have those printed off and ready. Additionally, you’ll need the last two months of your bank statements and pay stubs, and you’ll also need a photo ID.

Those are my quick tips for you today. If you have any questions, feel free to reach out to me. I’d be glad to help.

A Few Tips and Tricks to Save for a Down Payment

There are many ways you can save for a down payment. Here are a few tips that can save you anywhere from $5,000 to $10,000 in a hurry.

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What can you do to save for a down payment if you plan on buying a home soon? Here are a few tips and suggestions to realign your savings program.

First, set your goal as far as how much home you want to purchase. Talk to your lender and find out what your down payment for your particular price tag would be. Once you know what you need for your down payment, you can start saving for it.

Next, assess your spending habits. Write down what you spend every week. When you do that, you’ll realize that you maybe didn’t really need that Starbucks coffee.

Speaking of that, I know most people like Starbucks and you might too, but most people also spend at least $5 per day there. If you think about it, you can say as much as $2,000 a year by not going to Starbucks and instead making your own coffee or just going to McDonald’s like I do (it’s all about the dollar menu!)

Another step to consider is shrinking your TV package. Do you really need a large TV package for all of those programs that you can only watch one at a time?

Once you know what you need for your down payment, you can start saving for it.

You can also think about canceling your gym membership. I myself had a gym membership for three years and I never lost a single pound. A lot of us sign up for a gym membership, pay our dues, but never even step inside the gym.

Also, consider selling any extra items in your house that you haven’t used in a while. Even in the garage, you can find items that will sell for a couple thousand dollars easily and in a hurry.

Another thing to think about is getting extra points on your credit cards. Switch your credit cards so you get points on them and pay for items through a point system as opposed to just cash.

Lastly, save some money through your tax return. It’s always nice to see a couple thousand dollars coming back to you at the end of the year, and it’s also nice to spend that extra money.

These tips can save anywhere from $5,000 to $10,000 in a short amount of time. If you have any other questions about saving for a down payment or you’re thinking about buying or selling a home soon in our market, don’t hesitate to give me a call or send me an email. I’d be happy to speak with you!

The Reality of Life Insurance and Its Benefits

Life insurance isn’t a popular thing to talk about. However, it’s so important that your family is taken care of if the worst happens.

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Why in the world would a real estate professional be talking about life insurance? Well, as most of you know, I enjoy having personal relationships with my clients after I’ve helped them out professionally. I keep in touch with them after the transaction and from time to time I hear some really sad stories.

Over the last few years, I’ve seen people pass away and leave their spouses with nothing because they always felt like they couldn’t afford life insurance. It’s very disconcerting when you know that someone is left with nothing in the wake of a tragedy.

Your policy doesn’t have to be an expensive one.

I think that you should do everything in your power to get in touch with a life insurance professional. It should be someone you know and trust. It should be someone who can set you up with a low-cost plan to protect your family with life insurance in some way.

None of us are getting out of here alive, so the more that you can protect your family, the better off they will be. Keep in mind that the younger you are the less expensive the life insurance policy will be.

I’m not here to sell you life insurance. I just hate it when I see a family in financial distress in the wake of a tragedy simply because they weren’t aware that they could afford life insurance.

I hope you take this message to heart. If you have any questions for me in the meantime, don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you.

Looking Back on Our 2017 Market and Making a Few Predictions for 2018

Prices rose and inventory dropped in our market in 2017. In 2018, you can expect inventory to remain low and prices to continue to rise.

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What happened in our market in 2017? What’s going to happen in 2018?

First, let’s talk about how our 2017 market did compared to 2016. 

The average sale price rose $24,000 to $287,900. The median sale price also rose $23,000 to $260,000. The bottom line is prices rose just about 10%, which was something we addressed throughout the year. In contrast, the average days on market dropped 33% to 56 days. This means if you put your house on the market, you can expect to have a very good chance of selling it within 56 days. Of course, some properties go much quicker than that. 

Looking toward the future of our 2018 market is where things get interesting. Here are a few conservative predictions.

Prices are expected to continue upward between 4% and 7%, and interest rates are expected to increase to 4.5% to 5%. Inventory, however, is expected to remain low, and there are a few reasons why. 

Whether you’re a buyer or a seller, you’re better off acting sooner rather than later in 2018.

First, Oregon is the second-largest moving destination in the country, which means we’ll have the continual pressure of people moving into our area and not enough homes to service all of those people. 

Second, millennials are ready to buy homes. They’ve been patient and saved up their money, and the market is ready to absorb these buyers. 

Now that we have an idea of what’s going to happen, what’s the potential of waiting to buy or sell—say—six months down the road in 2018? If you had a $250,000 mortgage and the interest rate rose from 4% to 4.5% in that six-month span, your payment for the same house would increase $162 per month. 

My advice for both buyers and sellers is to act quickly. Prices will continue to rise, but buying is still a much better option than renting. Furthermore, the rental market is crazy and the price of rentals exceeds the cost of a house payment. 

If you have any more questions about how our market will unfold in 2018 or you’re thinking of buying or selling a home soon, feel free to give me a call or shoot me an email. I’d love to help you.