Dave Sutton
Windermere Cronin & Caplan Realty Group, Inc.
Dave Sutton :: Direct: 503-505-9722 :: Email: davesutton@windermere.com :: www.davesuttonhomes.com
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What's the first thing to consider when home shopping?
Posted on January 29, 2012
You probably already know the old saw about the most important factor in a home's price is "location, location, location". Of course that's somewhat different for different people. No one wants to live downwind from a hog farm, but some people think across from a park (or school, or freeway entrance, or...) is a terrific location and others don't want to be near that
But if you're concerned about getting the right home for a payment you can live with, you also need to think about more than just the purchase price. Your montly payment is affected by taxes and HOA dues if it's a condo or sometimes a PUD.
Then, besides the purchase price, closing costs can be a factor. I just helped a client buy a house in Portland for which the seller paid 3% of the sales price to cover all the closing costs. But there are two parts to "closing costs". One is all the actual costs of closing, like loan fees and title insurance and a dozen other pesky little costs. The other is "prepaids" - all the ongoing costs of owmership that a lender will require to be prepaid, such as taxes, insurance and a few more. In the example I noted, these came to about another 3%.
I hope I've demonstrated that the right place to start a home search is with a good mortgage broker. Most are happy to spend 15 minutes on the phone with you (or face to face) to ask you a few questions about your income, assets, debts and the like, and then give you a good idea of how much payment you can afford, and what that will translate to in terms of a home purchase price. If those numbers are something you can live with, then you need to 1) make formal application for a loan, and 2) find a local Realtor to show you how much home you can buy for the payment you're comfortable with.
Finally, the one thing all sellers want to see with any buyer's offer is a preapproval (and not just a "prequlification") letter from a lender.
I know all that can seem like a huge, complicated and frightening process, but that's mostly just because you don't do it all day every day like the mortgage brokers and Realtors do. They will guide you through the process step at a time and when it works right (which it usually does), you wind up with the right home for you and enjoy it for years to come.
Post a Comment : Author: Dave Sutton
Which Way Should We Choose to Hold Title?
Posted on January 6, 2012
Your offer's been accepted, you've had the home inspection, financing is in order and then someone asks what about what form you want to hold title. "Well, both of us" you answer. Not good enough. Oregon has four forms of holding title (not including trusts, which is also a good answer in some situations). Click here for a brief description of the four forms of holding title in Oregon, courtesy of Fidelity National Title in Portland
Post a Comment : Author: Dave Sutton
A 2,000 SqFt 4-BR 2-BA house for $28,612? How can this be? IT CAN'T, and here's why
Posted on January 3, 2012
About once a week I get asked about something like this. Essentially, "How can such a nice big home be selling for such a low price? And why is there a street name but no house number in the "listing"?
Sorry to be the bearer of bad news, but that home is not really for sale, and will never be sold for that price.
What you're seeing is not a listing (note no street number) but a solicitation by RealtyTrac to sign up for their ($49.95/mo) service providing information on foreclosures (which would get you the street number of a home that's in one of three stages of foreclosure
1) Homes which have received a Notice of Default (NOD) which is simply the lender's notice that the owner is behind (usually three months) on the mortgage payments. If the owner can catch up or make a loan modification or other arrangements, the home will never be on the market (until the owner decides to sell).
2) Homes is in Auction stage, meaning a date has been set on which the home will be sold at auction if the owner does not get current or make other arrangements. Auction dates are commonly postponed serveral times before any sale actually takes place.
3) Homeswhich have actually been through the foreclosure auction and are now owned by the bank, but are not yet for sale. Banks own many foreclosed homes today and it appears they are dribbling them in to the market to prevent the further collapse of values that would result were all banks to put all their foreclosed homes on the market at once. It is not unusual for a year to go buy between foreclosure and actual listing for sale. Yes, all foreclosed homes are listed with a local Realtor when they are actually for sale. No, there is no way to buy a bank owned home before it is listed.
So where does the impossibly low price come from? It's probably either the amount that the owner is behind on payments or the amount of one mortgage on the home (and there are probably two and maybe three mortgages total).
I hope that helps you (and others reading this) understand why these "listings" are not what they appear to be,
If you want a list of foreclosures that ARE actually for sale, I (or most any good Realtor) will be happy to provide that FOR FREE! Click here then select "Foreclosures".
Sorry to be the bearer of bad news, but that home is not really for sale, and will never be sold for that price.
What you're seeing is not a listing (note no street number) but a solicitation by RealtyTrac to sign up for their ($49.95/mo) service providing information on foreclosures (which would get you the street number of a home that's in one of three stages of foreclosure
1) Homes which have received a Notice of Default (NOD) which is simply the lender's notice that the owner is behind (usually three months) on the mortgage payments. If the owner can catch up or make a loan modification or other arrangements, the home will never be on the market (until the owner decides to sell).
2) Homes is in Auction stage, meaning a date has been set on which the home will be sold at auction if the owner does not get current or make other arrangements. Auction dates are commonly postponed serveral times before any sale actually takes place.
3) Homeswhich have actually been through the foreclosure auction and are now owned by the bank, but are not yet for sale. Banks own many foreclosed homes today and it appears they are dribbling them in to the market to prevent the further collapse of values that would result were all banks to put all their foreclosed homes on the market at once. It is not unusual for a year to go buy between foreclosure and actual listing for sale. Yes, all foreclosed homes are listed with a local Realtor when they are actually for sale. No, there is no way to buy a bank owned home before it is listed.
So where does the impossibly low price come from? It's probably either the amount that the owner is behind on payments or the amount of one mortgage on the home (and there are probably two and maybe three mortgages total).
I hope that helps you (and others reading this) understand why these "listings" are not what they appear to be,
If you want a list of foreclosures that ARE actually for sale, I (or most any good Realtor) will be happy to provide that FOR FREE! Click here then select "Foreclosures".
Post a Comment : Author: Dave Sutton
When Is the Best Time to Buy A House?
Posted on October 27, 2011
The "Right Time" to Buy a House
There are so many factors that are part of deciding the "right time" to buy a house that there is no "one size fits all" answer. Let's take a look at some of the most important.
1) House prices
House prices are a supply and demand function. Lots of buyers and not very many houses for sale = high house prices. Lots of houses for sale and not very many buyers = lower house prices. Right now in Portland, the number of homes for sale has been trending down for the last six months, which is holding home prices down.2) Mortgage rates
In 2006 the mortgage payments for a median priced home in Portland would have been about $1600/month. Today, it's about half that - $800. Today's mortgage rates are the lowest in my lifetime and I bought my first house in 1964.
3) Stop Lighting a Match to Rent Money
Today in Portland, most people can buy a home for the same as they're paying in rent.
When you rent, the landlord can raise the price at the end of your lease, and Portland rents have been on the rise for the last 2-3 years. A fixed-rate mortgage payment will never go up. Mortgage interest is tax deductible.
4) It's YOUR house
You can paint the living room the color you want, put in a better dishwasher, change the floor covering, upgrade the kitchen...the list can go on, but the joy of having YOUR house is impossible to quantify.
Post a Comment : Author: Dave Sutton
The Joys of Home Ownership
Posted on October 21, 2011
Carla Davis Hill has written an insightful column on the subject in Realty Times:
"Today's experts spout off the latest statistics about long-term wealth, home values, and interest rates, yet there's a much more sentimental side to homeownership. In fact, many home buyers are drawn to homeownership for these warm and fuzzy reasons.
Owning a home allows you to put down roots, both figuratively and literally. On one hand you become part of a neighborhood and community. When you rent, neighbors come and go as quickly as leases renew. Homeowners, however, tend to stay put longer.
What does this mean for you? You can develop, many times, lifelong relationships. This also means your home will see you through many of life's important milestones."
Read the full article here
Post a Comment : Author: Dave Sutton
"It's Time to Buy That House" says The Wall Street Journal
Posted on October 20, 2011
"Houses are more affordable than they've been in decades - and a comparison of prices to yearly rents suggests houses in many markets are a better investment than stocks and bonds."
To read the full Wall Street Journal article click here
Post a Comment : Author: Dave Sutton
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