Real Estate in Eugene

FSBO'S in decline

2010-03-08T15:22:00.000-08:00

In this strong buyers' market with more mainstream listings than usual to see with a realtor, we're seeing fewer and fewer For Sale By Owner homes for sale. It's not that you can't sell your home this way, but make sure it's below other prices compared to your competitive listings. The way we're pricing ours these days is much more influenced by the competition currently for sale than it used to be. If onhly one in 20 is going to sell, yours had better look like the "best buy". Unfortunately, sellers can't always afford full, mainstream services. My company won't purposefully avoid your home if you're selling it yourself, but frankly, we won't know about it unless one of our buyers finds it. So, offer to work with realtors on the selling side and let them know somehow about it. I hope this helps!

Foreclosure news in Eugene

2010-01-04T17:25:00.000-08:00

Listings are up, and there are more sales than usual for this time of year. That's the good news. But there are a rush of newly listed bank owned properties. No one really knows how extensive the bad loans/assets are on the banks' books, and it looks like the theory is right on target that they'll let them out in batches. Realtors aren't thrilled to see them, as no one should be. They hurt the value of nearby properties and they are a tragic indication of the state of our economy. My clients tell; me that their lenders are not interested in re-configuring their existing loans even when they are "upside down" on the value. Major disappointment, since we all thought5 part of the bailout was tied to helping people save their homes.

It's was rare in 2009 for our company to list a home that had so much equity in it that the sellers could take up to a 20% "hit" and still have some net proceeds.

My advice is to never never take out an equity loan unless it is to improve the home the loan is on. Too many people took on additional debt on their homes and used the money for unrelated things. I have a great financial advisor, and I strongly suggest that others use one , too. If you're in trouble with your mortgage, consulting a real estate lawyer would be money well spent. (I know, you don't have any.) I'm not sure if Legal Aid (a non-profit legal service) works with home owners, but that would be worth investigating.

Let's hope that 2010 brings new employment opportunities to the millions who have lost their jobs. meanwhile, BUY AMERICAN! Happy New Year.

Real Estate Trends in Oregon

2009-12-27T16:53:00.000-08:00

I wish I could say we're out of the woods. But here in Eugene/Springfield, there are signs that the market is improving. This month's Multiple Listing Service Market Update showed an increase in volume for November as well as a 2.50 % median increase in prices from the month before. My opinion is that this is due at least in part to a reduction in the inventory of distressed properties (short sales and foreclosed) as they were purchased and now out of the market. There has been an unusual number of "good" property listed in December, indicating that sellers feel more confident about their prices.

However, the median sales price from a year ago (November '08) was still down 3.5%. I'll be surprised if values decline much from now on.

Foreclosures have been flooding the market in the final weeks of December. The banks have been holding back releasing them, so this is far from over. The good news for sellers is that brokers, buyers' lenders, and buyers have all discovered that buying a foreclosed property can be a real nightmare. One of the biggest challenges has been getting repairs done (and PAID FOR!) that are increasingly being required by lenders of new loans. Of course, it depends on the policies of the bank that owns the foreclosed property, but in general, they don't want to pay for any repairs. So many buyers are looking for a more conventional transaction.

Short sales (where the seller still owns the property but wants to avoid foreclosure by getting the lender to accept less than is owed) are even worse. The longest transaction we had for buyers on a short sale was 9 months! And there is NO ONE willing or able to pay for repairs. So beware!

All this is good for people who are not selling under duress, however. The tax credits both for first time buyers and repeat buyers (restrictions apply), have helped a lot to stimulate sales. Only time will tell, but barring another economic crisis, we see a brighter season ahead for 2010.

Let's hope the employers see a good uptick so people can become employed again! Happy New Year to all.

Tax Credit extension

2009-11-05T09:10:00.000-08:00

The Senate has passed the extension of the first time homebuyers $8000 tax credit and have added a $6500 credit for people who have owned a home for 5 of the last 8 years! It hasn't been signed into law yet but is expected by the end of the week. (Details to follow). This should re-fire the engines of the recent surge in home sales that fell off as soon as time had run out to get a loan closed by the end of this month. Good news for home buyers, sellers and the economy!

Lenders change the rules

2009-08-28T09:11:00.000-07:00

It's going to take longer to get a loan because of new lending rules from the government. The purpose is to protect borrowers, but I wish they'd consulted the people who actually work in the industry. If there is any change in the closing costs equal to or greater than 19%, the borrower must be notified by email or hard copy with a 4-7 days waiting period before the sale can be closed. Because the purchase amount often changes close to the end of the process, due to repairs or appraised value (coming in below), I have visions of moving vans parked somewhere and very stressed buyers and sellers. One of our favorite lenders said they'll be over-estimating closing costs to try to create a cushion. I hope this works! It could get dicey. For details, consult your lender. Ask me for a couple of reliable ones.

Homes that Sell Right Away

2009-08-07T21:07:00.000-07:00

Homes actually are selling in a day or two but it depends on a few factors:

It was priced competitively. It doesn't matter what you "want" to get out of the sale of your property, or even what you HAVE to get from the sale. You need a rational evaluation of the competition. Not so much the closed sales as the ones that are on the market.
If it's in a high demand area, such as near the University of Oregon campus, or if it's architect designed, and thus rare, a home will sell pretty quickly (assuming the first provision is met). If there are lots of homes similar to yours for sale in your area, it is probably a different story. Only good pricing and extraordinary marketing will make yours stand out.
If you bought your home for less because it backed up to an expressway, or an apartment building, or was on a flag lot, it still is worth less. Sellers sometimes forget that they got a deal.If the reason you bought for less can't be remedied, it will still sell for less.
Did you buy the nicest house in the neighborhood? That's never recommended, but especially crucial now when a buyer could perhaps buy a home like yours in a better spot.
Hire a qualified, experienced realtor who is involved in the real estate community. They have the connections, the good relationships, and the reputation to get other Realtors to show your home. In general it's a mistake to use the broker who says your home is worth more than any of the others say it is, and are willing to work for less. That has a sound of desperation to it, doesn't it? Referrals are generally the best. Find someone you can depend on.

Good luck in selling your home! The good news is, this is a great time to buy! Don't forget that if you have to take a bit less than you'd like in the sale, you will also be saving on the purchasing end. If you don't plan to buy, well, that doesn't apply.

Home Prices Stabillizing

2009-07-22T09:32:00.000-07:00

Homes in the Eugene Springfield, newly listed, are selling much more quickly as the sellers who have been sittring on the sidelines decide that prices have stabilizd enough to get into the market.l Especially in demand are East , S Eugene and Ferry Street areas where the backlog of inventory isn't that high. The key is to price them realistically and target the buyers in your marketing plan. We see the light beginning to shine at the end of the tunnel!

Rental investments

2009-07-12T18:31:00.000-07:00

We've had a few investors contact us recently about buying rental properties. Normally they'd have been extremely well-qualified, but lenders are requiring no less than 20% down now for investment loans. Be aware that times have changed (!) and it's a good idea to run your plans by a reliable local lender or your favorite realtor before starting your search.

Home Values

2009-05-30T12:19:00.000-07:00

How much is my home worth today? That's what I hear everywhere I go, both from clients and friends, and strangers, too, as soon as someone realizes I'm in real estate sales.

I think it's stabilizing. More homes are being sold for their asking price, and that's a sign that they've become more realistic in pricing. The one area that doesn't seem to decline, is the UO campus neighborhoods. In fact, the average sales price is only down 1% from a year ago. Of course, values were already down a year ago, but that shows that the decline has slowed. Similar evidence in other areas as well, but not as much improvement as the campus area.

STILL people over-price their homes for sale. If you'd like to keep track of what's happening in your nightborhood, we have a feature n our website called "free market anaylsis". It's called a market snapshot, shows a google mapphoto of your home, and all the comps nearby that are listed. Fun to use, and we won't contact you if you use it unless you ask us to:) www.bennettdean.com Enjoy the wonderful weather here in Lane County, and hold on awhile longer if times are tough, or you're needing to wait for your equity to recover. We do see a light at the end of the tunnel!

First time buyers' credit update

2009-05-18T17:59:00.000-07:00

It turms out the use of the credit $8000 for down payment purposes isnt in place yet. Stay tuned... I'll keep this possibility updated.

FHA Announcement

2009-05-17T07:55:00.000-07:00

Big news from FHA this week! The $8000 tax credit for first time home-buyers can now be used at closing to cover the down payment! This is great news for buyers who are currently saving for their first home purchase. With prices at new lows, especially in the $150-$250,000 price ranges, this change creates the possibility for getting into the housing market earlier.

Real Estate Sales Improving!

2009-03-20T09:07:00.000-07:00

It looks like the $8000 tax credit for first time buyers is starting to have an effect. We have TWO pending sales for first time buyers ourselves. What I predict will happen is that the owners who are reluctant to "move up" into that over $250k price range will see the smaller homes selling , and prices stabilizing in that range, and will decide to list their nicer, smaller homes, and get that larger home at today's prices. Hard to believe, but there aren't very many affordable, yet well maintained homes available. And still there are way too many over-priced homes on the market!

Lenders are more and more demanding about verifying information about the buyers and the properties (and this is a good thing), but if you have good credit and choose a home to buy that isn't a major "fixer", a 30 year conventional or FHA loan still can be done within 30 days. The natonal pundits keep telling us that no one is lending, but that isn't true. Using a local lender may be the decisive factor there. No question that many of the huge national lenders are in disarray, but most local banks and mortgage houses are in good shape. Ask your realtor (or us) for three referrals to lenders you can count on. And don't let fear rule your decision-making. It's a good time to buy!

Should you move now?

2009-02-23T14:37:00.000-08:00

We've noticed at Bennett and Dean Real Estate that some homes are moving very fast (2 or 3 days) while others wallow in the marketplace for as much as 2 years.

Currently it's all about price (and somewhat about location (rarity=demand) but it's mostly about price range. Anything priced to sell below $220k (even better under $200k) has a good chance of selling quickly, assuming it has no problems that can't be resolved (such as a dump next door). And the higher priced homes (over $500k) that are also well priced, also without problems. The range that is hurting the most is the middle. That second home purchase where the sellers either want to move up or downsize. Surprisingly, there isn't much to look at in that range. Because, if you have a house to sell before you can buy the new one, you may be worried that yours won't sell for what you need. So, if you don't HAVE to move, you're sitting still. Remember though, if you're moving up, and you have to take, for example, a 10% "hit" on your $300k home you'll also be saving 10% on the $450k one. Do the math and you'll see that you "net $$15k in the trade.

This doesn't work so well when you're moving in the other direction (to a lower priced property).

So how is this going to turn around?

I believe that the $8000 tax credit for first time home buyers will start to deplete the inventory of first time homes. As they sell, those sellers will likely "move up". And prices will stabilize when there is more activity. Sort of a "bottom up" effect.

Watch future postings for updates about my theory...

Market Update

2008-11-25T22:26:00.000-08:00

As the normally slowest market time rapidly approaches, it is timely to get a realistic picture of what is happening locally. We have more listings than usual coming on for this time of year, but when people are relocated or when there is an estate to settle, timing isn't always ideal. Of course there are distressed sales, as we are all aware. But it interesting to note that, when a nice home comes along that is well priced at market value, it goes pending in only a few days. This assumes that the property is well located and in good condition. The buyers are out there but often not finding what they want to buy, or, in some cases, sellers are still unrealistic about pricing.

Since the Northwest was about the last market to sieze up, I predict it will be the first to come back. When that will happen no one can know. But I believe we'll see a rebound before next summer, based on pent-up demand.

Declining Real Estate Values

2008-11-10T10:38:00.001-08:00

We have a unique situation in Lane County to recover more quickly than many areas of the country once the economy starts an upward trend. Because we do not have a manufacturing economy here, much of our downtrend is caused by buyer paralysis. Our company has about 25 buyers, with about 20 of them either in a "wait and see" pattern or unable to sell their homes in other parts of the country. The others are eager to buy but haven't yet because of still-overpriced listings, or lack of the properties they're seeking.

Most of our listings have sold, one recently in only 3 days on the market, and with a full price offer. That was because the sellers agreed to price it below the competition. Within 2 days of the pending sale, a home that had been on the market for many months on the same street, lowered their price to match ours, and was sold within days. So it's all about knowing the current market values. If you don't have enough equity in your home to price it a bit lower than the competition and if you don't HAVE to sell, we recommend waiting. I predict that we'll have a bounce back next season.

Questions about real estate?

2008-04-07T16:22:00.000-07:00

As a principal broker in the Eugene and Springfield areas of Lane County, Oregon, I'd be happy to answer any questions you might have about:

What's happening to home values in our area?
Is this a good time to buy or sell?
What's the best way to sell my property?
What should we do to get ready to sell?
What's the best way to find properties to buy?
OR: ask your own question.

Lane County is still a very desireable place to live. Ask for links about your interests.

Mary Bennett and Christopher and Kate Dean are affiliated with Bennett and Dean Real Estate, 854 Fox Glenn Ave. Eugene, Oregon 97405. We have combined experience of over 20 years. I'd be happy to engage in dialog with anyone who wants to talk about real estate. Mary Bennett