Golden Realty Blog

Today, economists are finally reporting good news about the economy, stating that it appears to be in “recovery mode”. But, it’s going to take more than a single news story before the American consumer believes in their hearts that the “recession” is over. Based on statistical indicators the unemployment rate has slowed, housing inventory levels are decreasing and median prices are increasing. These are definitely good signs for a more stable economy and more specifically, a healthy housing market.

While this is really exciting news, the reality is it will take awhile for consumers to feel the effects, especially in areas like Eugene/Springfield. Here in Lane County, our housing market took longer to feel the affects of the “recession” and so it will take a bit longer to feel the recovery as the experts are now reporting.

However, we are experiencing an excitement in the housing market that some economists say they haven’t seen in 3 years. What is driving this excitement and engaging buyers, can be attributed to continued low mortgage interest rates, decreasing home prices and the $8,000 tax credit for first-time buyers. Does this mean prices have hit bottom? If the economic indicators are correct the housing market is stabilizing…what would you say?

We remain optimistic that these national indicators are just the beginning of the economic recovery both nationally and here in our neck of the woods.

Before hiring a REALTOR to represent your interests in the sale of your home, ask them the following questions. Although there are no right or wrong answers, how each REALTOR answers the questions will give you a good idea of the experience, professionalism, knowledge of the market, and customer service you would expect to receive from that REALTOR.

• How long have you been a licensed REALTOR?

• Do you work as a full-time REALTOR?

• Do you have assistants that work for you?

• How many homes did you list last year that sold?

• How many homes did you list last year that failed to sell?

• How many of the listings you took did you actually sell yourself?

• How many houses did you sell last year?

• What was your average list price to sale price for your listings?

• What is the RMLS average list price to sale price?

• What are the average days your listings are on the market?

• What are the RMLS average days on the market?

• Where do you advertise and how often?

• How do you communicate with seller’s and how often?

• Why should I hire you?

Selling a home in today’s Buyers market can be challenging. Understanding a little bit about the dynamics of real estate sales, can mean the difference between success and failure in selling a home during a buyers market. The secret to selling in any market is PRICE. With the market changing daily it is important to find the “sweet spot” in the price where the buyer’s interest is maximized and the seller’s expectations are met.

Here are some mistakes that sellers often make when pricing their home:

• Setting a price on how much money they need or want to make from the sale
• Setting a price based on what the neighbor’s house sold for
• Setting a price based on what they owe on the mortgage of the property
• Setting a price based on what they paid for the house
• Setting a price based on homes that have sold in a different area of town or neighborhood
• Setting a price based on the tax assessed value
• Setting a price based on what zillow.com or trulia.com shows as comparables
• Overpricing

Here are some suggestions to set the right price for your home:

• Determine the current value of your home for the current market conditions by consulting with a professional realtor
• Set the price right from the beginning
• Set the price below other comparables
• Look at the absorption rate (the length of time it would take to sell the current inventory of homes for sale). This will give an accurate snapshot of what the market is really doing.
• Set the price based on the value of the home
• Be realistic

The bottom line to successfully selling a home in a buyers market is to price it right. Setting the right price requires careful and detailed research of the real estate market. An experienced, knowledgeable realtor should possess the tools to assist a seller in maximizing their profits and accomplishing their goals.

Spring is in the air and it is a great time to buy! The $8000 tax credit for first time homebuyers, record low interest rates, record high inventory and lower median house prices, all contribute to why now is the time to buy.

Home values long-term have and will continue to rise. Although values fall in some years, on average over the past 30 years, the median price of existing homes has increased more than 6% every year. To learn more click here Housing Market Facts.

To stay updated on the latest market trends in Lane County, Oregon - Click on the link below to view the latest Market Action trhrought the 1st Quarter of 2009. 

1st Quarter 2009 Market Trends

The most trendy buzz words being thrown around with regard to the real estate industry these days are short sale, foreclosure & REO. Although these terms are heard multiple times a day, does the general public really understand the meaning of these words? Assuming that it is understood that these buzz words relate to the housing crisis and the decline of house prices throughout the nation, here is a quick, in a nut shell explanation that should help explain the basics of each.

A short sale is the sale of real estate in which the proceeds from the sale are not enough to pay off the balance owed on a loan. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosure. A short sale typically is executed to prevent a home foreclosure. In a short sale situation, the homeowner/debtor sells the mortgaged property for less than the balance of the loan, and based on the lenders approval, turns over the proceeds of the sale which is generally less than the full debt amount. The advantages of a short sale to the home owner are the avoidance of a foreclosure on their credit history, partial control of the monetary deficiency and it is typically faster and less expensive than a foreclosure.

Foreclosure is the legal and professional process in which a lender, bank or any other lien holder, obtains a court ordered termination of a home owner’s interest in a property. The process begins when a homeowner defaults or falls behind on their payments and a notice of default is filed with the courts by the lien holder. There are four option in resolving a foreclosure including; get current on the loan by paying all the missing payments, selling the property in the open market, selling the property at auction, or the bank repossesses the home after a sale at auction was unsuccessful. This now becomes what is called an REO or Real Estate Owned property. When the foreclosure process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs incurred.

REO or Real Estate Owned is a class of property owned by a lender or bank after an unsuccessful sale at a foreclosure auction. The bank repossesses the property and begins the process of trying to sell the property on its own. It will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a REALTOR. Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property.

Craigslist has become a popular tool for home buyers and sellers. However, it it a portal not without controversy. For those who are not familiar with Craigslist - according to Wikipedia, Craigslist is a centralized network of online communities, featuring free online classified advertisements.

Recently Golden Realty posted a home for sale on Craigslist, advertising an upcoming open house. We started to get inundated with phone calls from people who were interested in renting this particular property. We were all very confused until we figured out that we were victims of a SCAM!

Here is what happened. A ’scammer’, apparently from out of the country, created a post on Craigslist advertising a home for rent using the information from Golden Realty’s post of a home for sale and advertised it for a really low rental fee. This scammer provided a fraudulent email account using an innocent person’s identity, making it seem as if all this was legitimate. When interested parties contacted the scammer, they were instructed to mail him a Cashiers check and then he would forward on the keys to the home.

Hopefully most people can recognize a scam when they see one, especially if something seems too good to be true. Evidently this is not the first time - nor the last, that Craigslist will be a feeding pool for scammers. In fact it would seem as if scams and fraudulent activity occur frequently on Craigslist because on every page, there is a link, typed in bold that warns users…AVOID SCAMS AND FRAUD.

The Golden Rules

If you open it, close it.

If you turn it on, turn it off.

If you unlock it, lock it.

If you break it, repair it.

If you can’t fix it, call someone who can.

If you borrow it, return it.

If you use it, take care of it.

If you make a mess, clean it up.

If it’s in the way, move it.

If you move it, put it back.

If you don’t know how to operate it, leave it alone.

If it doesn’t concern you, mind your own business.

For the past few days we have been fortunate to see the sunshine and blue sky in Eugene. Everywhere you go you can hear the hum of the lawn mowers, the smell of fresh cut grass, and the sight of daffodils about to burst to life. Spring is in the air and it reminds us that there is hope and light amid all the dark, grey  clouds of winter. This is kind of like the economic doom and gloom we have been hearing about everyday in the media. It makes it easy to overlook the encouraging trends and positive news that is affecting the current real estate market.

There is no doubt Spring is also in the air in regards to the downturn of our Nations economy. Like the hum of lawn mowers, super low interest rates are the buzz of the lending industry. Today’s home buyer can get some of the lowest rates in history. Like the smell of fresh cut grass a new tax credit for first time home buyers offers a scent of relief for buyers who will now be able to buy their first home and have $8000 essentially given to them. This will bring a large number of buyers into the market place. Like the daffodils about to burst, the recent news of the increase in home sales in boom to bust markets like California, Nevada and Florida, shows the leveling out of inventory and stabilizing prices, ultimately leading to an increase in consumer confidence.

Your senses may be coming to life with every sign of Spring, but remember to also notice the signs of Spring within the real estate market. Spring home buying has never been so fun!

The price of a home is a marketing tool. Simply stated, the price gets a pool of buyers within a certain price range to look at the home and discover all the wonderful things about the property and whether or not it fits their particular needs. The value of a home…now that is another story.

A motivated seller should, in theory, be setting the price of their home at, below or near the true value of the home. However, there are many factors involved in setting the price of the home, including the expertise of the listing agent, money owed, location of the home, amenities with in the home, and the list goes on.

In this ever changing market and the market conditions, the only way to find out the true value of the home is to MAKE AN OFFER! The price tag is just a starting point. So if you are a buyer and find a home you desire to purchase, don’t complain that the price is too high, or that the counters are not granite, or that the landscape is too bare…just MAKE AN OFFER. Then and only then will you have the ability to negotiate the price and discover the true value or worth of the home in today’s marketplace.

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Harlie has entered a contest. If she wins she will get $10,000 to donate to her favorite animal charity.  Please help her by clicking on her photo above and voting for her. And also let all your friends know so they can vote too.

Thank you for your support. Your vote is truly GOLDEN!