In the wake of the seemingly endless articles on the “state of our current national credit crisis” and our presently challenged local real estate market, it was refreshing to read some good news this week. The New York Times, the front page of the metro section of the Oregonian (Friday 08/29) and some online sources all seem to have “some folks in the know” willing to predict a turn-around in the real estate market by Spring to mid-2009!!! Then Forbes.com put Portland as #4 of their 10 cities “Where Home Prices are Likely to Rise”!! I know that seems a ways off if you must sell right now, but in the scope of things (especially considering that our local market has never suffered like many markets across the nation) that’s not far away. It might be time to purchase that investment property or 2nd home? Here’s the link to the Forbes article:
http://www.forbes.com/2008/08/25/housing-prices-rising-forbeslife-cx_mw_0825realestate_slide_3.html?partner=email
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Federal financing is still uncertain, but the Portland City Council agreed on Wednesday to spend local tax dollars to begin final engineering on the Eastside Streetcar Loop.
Commissioners approved $6.3 million for project management and design and civil engineering services on the $147 million project to build a new 3.3-mile streetcar route across the Broadway Bridge and south to the Oregon Museum of Science and Industry.
Final design has already been delayed two months while the city waits for approval of its $75 million request for Federal Transportation Administration small starts funds.
In June, an FTA analysis of the project’s cost effectiveness found it didn’t meet the agency’s funding requirements. Oregon congressional delegates are attempting to bypass the FTA process, however, and have achieved some success. The project was earmarked for $50 million in the President’s proposed 2009 budget as well as the Senate Appropriations Committee budget.
The city is now waiting for approval from the U.S. House of Representatives Appropriations Committee, which isn’t expected to release its 2009 budget until after the November election. Congress might also delay presenting the 2009 federal budget bill until next February or March.
This would be so fabulous for connecting downtown, the Pearl and the East Bank of the Willamette River….
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Home maintenance ranks low on many homeowners’ priority lists. When the washing machine breaks, you might fix it to keep from having to go to the Laundromat. But, if there’s no pressing need, home maintenance chores are often put off.In the current soft real estate market, homeowners may be less inclined to pay money to make repairs around the house. However, the key to preserving the value of your home is keeping it in good condition.Home maintenance is a necessary part of home ownership. The cost varies depending on the age of the home, its overall condition when you buy it and the climate. Houses with a western exposure may need painting more often than those that face east.Homeowners can have a hard time coming to terms with the fact that they can’t recoup the cost of home maintenance when they sell. Home maintenance is a cost of ownership, as are property taxes, homeowners insurance and mortgage expenses. Whether you deal with them now or after a property inspection, in today’s market there will be an expectation of “market ready”. So, “BE PREPARED”!!Even though you can’t tally your home maintenance expenses and expect a buyer to reimburse you, you do benefit when you sell by keeping your home well maintained. Buyers tend to pay more for homes that are in top condition, particularly in a buyer’s market. Basically, it lessens your buyer’s immediate homeownership “headaches and worries” and in this market, that can be the difference between an offer and a showing.Also, if you don’t take care of deferred maintenance, buyers are likely to adjust the price they’ll pay for your home accordingly. The burden of making the repairs will be on them, so they will factor this into the cost of the house.Summer is an ideal time to take a serious look at your home in terms of getting it ready for the winter months. Track down leaks in windows, doors, roofs, foundations, drainage systems and basements. Have these and any related damage repaired. Water is a homeowner’s biggest headache. Too much in the wrong place can lead to dry rot, fungus and mold problems that can be very expensive to repair. Ideally, your home should be dry inside underneath the house during the rainy season. Remember, we live in Oregon and water is a “state of mind”!Some homeowners can make repairs themselves. Others have little or no experience, and can’t even spot a problem when they see one. I know I’m one! If you fall into the latter category, plan to hire a home inspector, contractor or handyman to inspect your home annually for defects that need to be repaired. Many small repairs like installing weather-stripping, sealing doors or windows, or caulking sinks and tubs can be done by a handyman.Ask your inspector to prioritize the needed repair items. If you’re short of funds, at least take care of the most important items. Call me if you need the name of an excellent inspector. He’s competent not just because he’s licensed, but because he’s done a lot of the repairs and maintenance and construction himself and can give “hands-on” advice!Set a schedule for taking care of home maintenance items like having the furnace and fireplace checked, trimming trees and clearing drains.THE CLOSING: Keep copies of invoices for work performed on your home. It will serve as a good reference for you, your agent and for the next owner of your home.
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Here’s a step-by-step action plan to take in the event that your mortgage is about to start adjusting.1. Try to refi. If you are worried about being upside down on your home (i.e., owing more than it’s worth), you might need to assess how sustainable this home is for you. If you simply bought way more home than you can ever realistically afford with a reasonable mortgage, you should jump straight to #3 and try to sell your home. If other events, like a temporary loss of income, are making it difficult for you to afford your home now but you think you can afford it over the long haul, work with an ethical mortgage broker to see if it makes sense for you to refinance your mortgage, and whether any affordable mortgage options that are sustainable over the long term are available to you.2. Loan modification. Call your lender!! Ask for the loss mitigation department; put together the hardship package they request (usually a bunch of your financial paperwork to show that you really can’t afford the upcoming adjustment); and then try to negotiate a few months with no payment, a reduction in the balance of your loan based on fair market value, an extension of the low-payment period for several more years, a reduction in interest rate, etc. Lenders vary widely in their amenability to making these sorts of arrangements.3. Get extreme about increasing your income. If you truly want to keep your home, consider going to extremes. I’ve seen people avoid foreclosure by renting out rooms, taking second jobs or taking in freelance work on the side.4. Short sale. If you just bought way more home than you can ever realistically afford, trying to liquidate your home through a short sale is a great option. Work with a Realtor who has experience successfully representing sellers in short sales. I’ve even seen homeowners have real estate investor friends purchase their home through a short sale, which may give the seller the opportunity to lease and later buy the home back. I now have a Broker working with me who is familiar with the Short-Sale process and can help you navigate!!!
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I won’t pretend to know what it means, but I’m seeing pricing like it was 2006! And, that my friends, is what’s selling! If you price aggressively and not try to price for the most recent comparable data AND you are staged properly for marketing, the property sells! Right now what’s moving in the local Portland marketplace is priced less than the sparse and oft-times unusual comparable sales data. There is a real estate market out there and it is definitely buying & selling. The buyers are looking for a “deal” or a “steal” but will settle for a present-day market value if the location & condition is good. The sellers are still adjusting (and, rightfully so) to a new & different marketplace. This is very apparent in the condo & townhouse market, where the choices are many & the sellers are competing with new construction and developer/builders who must now offer incentives & builder added options to keep prices “appearing” to not go down within a project. If it’s any consolation, I’ve seen this cycle multiple times and we always “pull-out”. However, I’m sure that’s minor consolation to anyone caught in the “vortex” with a time-based need to sell right now. Just one gal’s opinion!
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Janeese Jackson
Bill Norris
