HAFA rules helps Lake Oswego home sellers

Effective April 5, 2010 the new HAFA rules will join HAMP to help Lake Oswego home sellers.  What does this mean?

In simple terms – HAMP is the loan modification program for home owners trying to hold on to their home by reducing the monthly mortage.  On the other end of the spectrum is the new HAFA  program.  Rules put into place to speed up the process by putting guidelines into place for the short sale.

For Lake Oswego home owners that have attempted the HAMP program and were not successful with the outcome, now have an option to first attempt a short sale under the new rules of the HAFA program before foreclosure.

Lake Oswego home buyers of short sale properties also benefit from this new law as lien holders are now held to a time line to respond to offers and closing transactions.

If you are considering buying or selling a short sale property in Lake Oswego or the surrounding communities, call or ping me.  Let my knowledge benefit you.

Regards,

Roberta Nopson 

503-495-5231

Lake Oswego new construction – what’s selling.

2009 brought a lot of press to the real estate market across the country.  Construction softened as buyers sat on the side lines.  Builders dumped land and many went under.  How did Lake Oswego’s new construction real estate market shake out?

At minimum, builders are hoping 2010 will bring buyers back to the middle to upper luxury market of Lake Oswego.  With just under 100 new homes marketed in 2009, this upscale quality driven buyer still exists they are just few and far between.  High end Homes by Eslinger closed 8 of the 32 homes sold, followed by Rennaissance, Monogram, Silver Oak and Schenbrien.  Still a tough builders market as 5 (16%) of the sold homes were bank owned.  New construction saw an average sales price of $964,753 down substantially from the highs of the past 2 years.  In the price range many trickle up transactions need to happen to move one of these.  Not an entry level market here.

Good news is that Lake Oswego new home inventory has come down and there are only about 60  remaining., with most builders are working closely with contract lenders to offer below market interest rates and terms that are favorable to the buyer.

Lake Oswego is not alone in the lessons learned by builders, buyers, and sellers.  Prudent financial decisions move ahead of the emotion.  Builders have slowed build outs, giving way to the custom home.  The custom home market is headed back to just that; custom to that buyer. 

Looking for more information about the real estate market in Lake Oswego – call me 503-495-5231.

Visit our main website now.

Tax Credit Extended and Expanded

Hot off the Press – 11/5/2009

House of Representatives today joined overwhelmingly, the Senate to PASS and EXPAND the 1st time home buyers tax credit.  The new credit will be expanded to include existing home owners. 

This will have positive impact to the Lake Oswego/West Linn markets among others, that tend to be a more step up communities.  The increased income levels will open the door to more families being able to take advantageous of the tax credits.  

$8000 1st time home buyer extended

$6500 Existing home owners have been added

Income limits for Married filing jointly has increase to $225,000.

Visit my web site for more information.  www.RobertaNopson.com

Short Sales – the new norm?

What has been in the press is here in Lake Oswego, West Linn and many Portland areas – the short sale.  Yes real estate prices have come down and that makes opportunity knock on the buyers door, but lenders are knocking on doors as well.  Overall Lake Oswego and West Linn have seen the average price come down 12-18% year to date and many areas of Portland range in the high 20’s.

Great news for those sitting on the side lines with cash stashed for a down payment and interest rates below 5%.  The step up buyer of the McMansion has many to choose from, but not so great news for a seller that is upside down because they did a refi at the peak in 2007 to consolidate bills, take a lifetime vacation, or send kids off to college. Or maybe 100% financing with an 80/20 loan package.  What are their options now.

The answer is “It Depends”.   Pretty grey I know…

Every home owners situation is different; as different as the many lenders that own the paper or are serving the loan.  How many liens are against the property?  Does the seller have other assets?  Does the loan have MIP or are the HOAs on lien as well?   These are just the starting questions in our conversation with a distressed homeowner.

NAR - National Realtors Association has stepped up their position to help real estate home owners, buyers and their agents understand that this may very well be the “New Norm” in real estate transactions.  They have established a standard to assure Agents have the knowledge and tools to navigate the short sale and foreclosure waters. 

SFR – Short Sale & Foreclosure Resource is a designation given to those agents that have completed course work and demonstrated an understanding of the options, pitfalls, and opportunities facing the real estate industry today.  I work together with you and your lender as your 3rd party representative, and do not charge a fee for this service.

Sellers – there are many options for us to discuss.  You may be seeking a loan modification, forbearance, reinstatement or another of the many “Loan Work Out Options”.  Should none of these meet acceptable terms and a short sale is your next step, we can help. 

Banks have taken their head out of the sand and are positioning themselves to help.  They really do not want any more homes in their inventory.   In the past 60 days Bank of American has hired over 5000 employees to assist in moving these files along (they have all the Country Wide & Greenpoint paper as well as others). 

Should this be the road that makes the most sense – Remember, you “apply” for a short sale in much the same way as you made loan application to purchase the property.   They want all the financials that support your distressed position.  Now is not the time to get tricky. 

There is so much I could write on the subject, but every situation is different.  Let’s discuss yours.

Roberta Nopson, ABR, SFR

503-495-5231

info@lakeoswegohomesellers.com

Real Estate’s new buzz words…

Distressed Properties.  Foreclosures.  Short Sales.  Those are the terms that characterize much of the real estate press these days. What does all this mean to market value here in Portland or Lake Oswego Oregon?

Fortunately for many our home values did not surge like many areas of the country. Oh yes they did climb from 2004 – 2007, but climb was an easy steady tick. Which is why our bubble is so much smaller than the rest of the nation. Our past 12 month median sales price for the metro area is down 6.9%. There are pockets that are harder hit than others, but we are not even in double digits as a whole.

Yes, we have many home sellers that are in challenging times to say the least. More homes are coming on the market than are selling. It is not just adjustable rate mortgages that have put sellers into the market, maybe that much has more to do with the local job market. (And those in Salem just raised  business & individual taxes again! What are they thinking!) If Oregonians don’t have a job, they cannot afford their mortgage, let alone pay more taxes.

More homes are coming on the market, and many may be due to our shrinking employment options. There lies the price crunch.   More home on the market = lower market value.

Motivated Seller – one who will allow their agent to ‘advertise’ seller motivated. This is a seller that wants offers and possibly can take a big hit and not go through a short sale and damage credit.

Short Sales – This is a seller that has tried to sell and has now lowered the price again, and again, needing an offer to take to the bank to start the negotiations.

Foreclosures – Bank owned property that the bank really doesn’t want but had no choice once the timeline was at its end.

People are worried that their homes won’t regain value. I don’t think there is any doubt that they will, though not at the up tick pace we saw a few years ago. Many think the short sale is the answer to their devalued home. Many more need to rethink the purpose of their home. We got into trouble because many home owners were using their house as a bank. Borrowing from it, by refinancing it over and over. The whole idea of home ownership is to build equity not spend the equity. 

After so many people have gotten in to trouble buyingMcMansions (there is a glut on the market right now), I try to remind buyers today of the many stages in home ownership.  If you are a first time buyer, you don’t go shopping for your dream home the first time up to bat.

If you are in the market to buy or sell your home.  Give me a call 503-495-5231.  I would welcome the opportunity to earn your trust.

Lake Oswego May home trends

The end of May has brought a stretch of lasting sunshine and some home buyers into the market.  Lock box activity continues to increase week over week as more homes are being shown to potential buyers. 

There seems to be quite the range in pent up home needs.  While April only had one home close over 1M, May has 5 that went pending.  Good sign for the Lake Oswego market, where the average listing price in hovering around 875K.

Don’t discount the other end of the spectrum, of the 63 homes that are now pending, 20 are under 300K.  Many condo’s in the Mtn Park area fall into this category and it is a good price range for the first time buyer  taking advantage of the $8000 tax credit or the investor looking for ready to rent properties.

Short Sale and/or REO (bank owned) still represent around 15-19% of the transactions here in Lake Oswego.  Not a segement for everyone, as it can really test your patience, but we cannot ignore this element as it pulls on pricing.  

If you are feeling the pinch and are considering your short sale options, give me a call 503-495-5231.  We can separate fact from myth.

What’s selling in Lake Oswego

Hard to believe it’s May already and the home selling season is in full bloom.  With just over 600 homes on the market – one is sure to be what you are looking for!

April sales in Lake Oswego stayed in line with the trend we have seen since December with the average selling price still under 500K @ 473.9K.  It was a mixed bag of closings when we take a closer look;  23 total closings – 6 condos 17 single family homes.

Pricing was aggressive and looks like investors are moving back in the market as Cash is King – averaging 17% off original list price of the 7 cash closings.

Buyers with conventional financing are still able to negotiate an average of 10% off original list.  A few distressed properties also closed.   4 short sales & 2 bank owned accounting for about 25% of the transactions.

Lake Oswego Luxury homes are still quite slow with only one at 1.4M closing.  A contemporary view property up on Crestline.

Overall, whether it was a condo, sf home under 500K or in the 700-800K range, buyers are buying neutral easy to move in homes.  

If you are a home owner needing to get your home on the market – give us a call; 503-495-5231 or email info@lakeoswegohomesellers.com

one even at 1.4 for a view property up on Crestline.

Lake Oswego – Looking for a good deal today?

Most Lake Oswego buyers and sellers in the know understand the phrase ‘real estate is local’.  We hear the news and read the stats that are generalized from national to regional, and sometimes the Oregonian will do a piece on the Portland housing market.  The terms of short sale, bank owned foreclosures and the like are the buzz. 

I get alot of calls and emails from buyers wanting to take advantage of an ‘opportune buy’.  Who wouldn’t.  The buzz has the buyers that have been on the sidelines ready to move back in the market. 

After spending some time with these buyers and/or investors I get the skinny on how they view ‘opportunity’.  Most only want to look at RE0’s (bank owned) or short sales (seller under water).  This leaves a segment of inventory that buyers are forgetting about.

The Motivated Lake Oswego Seller….This is a seller that has given their agent the special authorization to use this term.  The seller wants an offer…any offer.  This is a seller that would bring money to closing to get the home sold.  These are not desperate sellers these are motivated sellers.  This is a seller that would rather pay money than loose their credit rating.

How does opportunity look today in Lake Oswego? 

• 77 short sales being offered
• 16 REO properties
• 25 Motivated Sellers

621 active listings =  19%  opportunity.

Knowing the market and understanding buyers and sellers is what we do.  If you would like more information about the Lake Oswego, West Linn or Portland metro opportune buys.  Give us a call 503-495-5231.

Will designer colors cost you the sale of your Lake Oswego home?

When you think of color most of us think of Devine Color.  Devine is a Northwest original developed in the countryside Hillsboro Oregon in the 90’s.  Color was new and refreshing, it seemed to be all the rage and many Lake Oswego/West Linn home owners where some of the first take its dramatic splash. 

The Street of Dreams homes even had designer color noted hand outs so you could be on the trend fast!  Those whom could afford the color expertise of an interior designer followed their vision thoughout the home.  Dining rooms became shades of red, a warm orange for the family rooms, and yellows for dimly lit rooms, and so on…  I personally love yellows; they brighten your mood and create a positive energy to the room. 

Of course bedrooms were another story, as they became personal to the inhabitant.  Grand Master suites of expresso blends or ocean tidepools, sweet & hot beans color brights of lemon drop & grapes for the preteen girl, spun tales blues & reds for boys.  For those who chose to go to the color wheel alone, made their personal statements, afterall color is art and art is personal right?

Now a few years later these same homes are finding themselves in the resale market.  Sellers are proud of the interior master piece.  Alot of time and money went into its creation and surely a buyer will feel the mood of the home.   Many list agents not wanting to affend or loose the listing, simply state “designer colors thoughout”.   Others who dare, are at the other end of the spectrum and discuss the option to “vanilla-ize” the home.

So which is right?  Alot depends on price range of the home, how intense the master piece, and knowing your buyer.  Is your home to be move in ready or another job for the next interior decorators painter?  There are many shades of vanilla.  Vanilla even has its own color wheel!

A warm shade will create the immediate sense of a cozy home, whereas a too white home or room, becomes invisible and cold.  By using variations of the same warm color,  rather than a contrasting color in each room,  you can create a soothing flow from room to room, and it does not distract a buyers’ eyes.  You want the buyer to see the home not just the color.

Some rooms just need a splash, just enough to help the buyer to remember (fondly) your home.  Go cautionsly with impact color,  a little goes a long way.  Painting could be the easiest task to get your home ready for todays’ buyer, or a new look for your home for you to enjoy.

Is Lake Oswego bubble proof?

Lake Oswego and West Linn seem to share in the same bubble zone.  I love that word… Bubble. It is a nice fun word that doesn’ sound as harsh as its reality.  Lake Oswego Home Sellers are tuned in to the bubble reality.  Property values appreciated 7.8% in 2007, today’s 2008 reality is down -4.6%.  Numbers don’t seem to drastic. 

Key here is when you bought and at what price.  If you were the eager buyer in 2006 that won a multiple bid war on your dream property and need to sell today, your bubble may be about to burst.  If you bought 10 years ago, your property has probably doubled in value.  Historically, property doubles every 10 years or so. 

Price zone is also a factor.   Here is the challenge, since the average price in Lake Oswego and West Linn is above the conventional ceiling of 417K, our buyers need to not only bring money to the party, and they need outstanding credit for those under 5% rates.  Sellers that may be upside down in their property must know what their lein holders policy is on a short sale.  If your clock is ticking, don’t wait for them to call you.  You take the first step.  Don’t know where to start?  Call Lake Oswego Home Sellers.

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