Let’s imagine Lake Oswego home buyers trying to find a home on their own.  For this post we’ll call them Mr. & Mrs. Buyerson.

Mr. and Mrs. Buyerson start their search online looking at every imaginable site out there.  I can already see the stress mounting.

They cannot find the phone number of the listing agent and when he does trying to get a callback can be challenging.  Imagine trying to get 10 different listing agents to show him their properties and lining up appointments……

They might also call only to find that the property is no longer on the market.  Many of these online sites are not up-t0-date.  They may have wasted time and got their hopes up by looking at properties that are not available.

Now, Mr. and Mrs. Buyerson may be sophisticated enough to recognize a property listed as a short sale and understand the some of the ramifications of buying one of these properties, but many other Portland home buyers don’t.

They may approach the listing agent on purpose thinking that he is going to get a deal by going directly because the listing agent does not have to split his commission.  Let me  take a second to point out who is paying that commission.  Mr. Sellersby is paying the listing agent to sell his home at the highest price.  Mr. Sellersby is paying the realtor who is listing his home whether that listing agent brings in the buyer or the listing agent pays a buyers agent to bring in a buyer.  In who’s best interest is it for Mr. and Mrs. Buyerson to go directly to the realtor listing the home?

There are way too many things that can go wrong when Lake Oswego real estate buyers try to buy a home by themselves.  I will point these out by showing what can go right if Lake Oswego real estate buyers use a Lake Oswego buyer’s agent.

Let’s see the benefits of using a Lake Oswego buyer’s agent:

Mr. and Mrs. Buyerson sit down with a Lake Oswego buyers agent and together they discuss the criteria for the search.  One of the first thing that the Portland buyers agent will ask is that the buyers talk with a lender and get a pre-approval.  Without this nothing can be accomplished.  The buyers agent will know the limits of the search and they buyers will not be disappointed by having set their heart on homes they can’t afford.

Their buyers agent will build a search that will update at least daily and send out new listings to him which will not include homes that have been sold.  And trust that most everything that is on the market will be on the MLS so the buyers don’t have to worry that they are missing something, although I am sure they are still going to peek.

The home buyers make themselves available to visit the homes at appointment times that the Lake Oswego buyers agent has set up for them.

If any of the homes are a short sale, their buyers agent can find out the background.  How many liens are on the property; what kind of experience the listing agent has with short sales; has the process been started; all important things to know in order to decide whether making an offer on the property is viable.

Finally, and maybe most importantly, their Lake Oswego buyers agent is going to be representing Mr. & Mrs. Buyerson alone.  When a listing agent is representing both sides of the transaction impartiality is a problem.  Remember who is paying the commission – the seller.  Put yourself in the position of someone trying to negotiate both sides of the deal while not divulging to one party what they know about the other one.

Last but not least, hiring your own Lake Oswego buyers agent is going to cost you nothing. Searching for you next Lake Oswego real estate purchase with you own Lake Oswego buyer’s agent is the best money you will never spend.

To view Portland real estate listings, click on the map

Rich Peralta is a real estate professional in the Portland Metro Area, including Lake Oswego, Tualatin and  West Linn Real Estate.

He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com

Contact him  for more information on Portland,  Lake Oswego or West Linn Real Estate!

Originally posted on West Linn Real Estate.

Attracting a these types of buyers means having a “top dollar” home.  Here comes question number two, do you have a “top dollar” Lake Oswego home for sale?  Has it been maintained like one?  Have you invested in the home like it is one?  Put yourself into the mindset of someone who is willing and able to pay top dollar.  What would they want out of a home?  In my years of working with buyers I would have to say that all buyers want perfection.   The difference is top dollar Lake Oswego buyers are willing to pay for that perfection.  They want to walk into a home and not have to do anything…at all. Not even the tiniest little thing.   And, if you’ve prepared or staged your home well, they might even ask you to leave the furniture too.  Anything beyond replacing a light switch cover is not what they are bargaining for when they are paying “top dollar.”  In fact, a true top dollar home may even convert a rock bottom priced home searcher into a buyer, because they view that particular home as “worth it.”

It may take a cash offer for you to get top dollar if there aren’t enough comps to justify your price.  Or, in the alternative to an all cash buyer, it may take a buyer willing (and able) to pay over the appraised value for your home.  Is the home the type of investment someone would want to sink a great deal of cash into?

Are all the major systems of your home up to date and in good working order?  At a minimum this includes the electrical, plumbing, heating/cooling, and roof.   Has the home kept up with the times and been updated within the past 8-10 years?  Is the paint fresh, updated, and are the colors in keeping with modern tastes?  What is the condition of the kitchen and bathrooms?  Are the appliances 10 or more years old?  Is the flooring stained, worn, or damaged?  Is the landscaping full, appealing, and well established?  Does the home have curb appeal?  And importantly, how does your home stack up against the current competition in your market?

It is hard to take a step back and view your Lake Oswego home for what it has to offer in the market.  The bottom line is if you want attract a top dollar buyer, you better have a top dollar home to sell.

To view Portland real estate listings, click on the map

Rich Peralta is a real estate professional in the Portland Metro Area, including Lake Oswego, Tualatin and  West Linn Real Estate.

He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com

Contact him  for more information on Portland,  Lake Oswego or West Linn Real Estate!

Originally posted on West Linn Real Estate.

An Updated Report on Single Family Detached Homes for Sale from August 15, 2011 for Lake Oswego Real Estate

This last week in Lake Oswego, OR the median list price for real estate is at $549,950.   The per square foot asking price came in at $198 per square foot.  48% of listings had a price decrease and 12% reset their DOM (Days On Market) by re-listing.  The average DOM was down to 191 days.

Median home specs are as follows; 2942 sq foot home with 4 beds, 3 baths on a 1/4 to 1/2 acre lot.  14 new single family detached homes for sale in the Lake Oswego real estate market this week while 14 other homes were absorbed.  This brings the active listings to a  total of 428.

The most expensive 25% of listings have a median home price of $1,196, 000.  The median specs for these homes are 18 years old with 4224 sq ft, 4 bedroom and 3.5 baths on lesss than a 1/2 acre lot.  There are 5 new listings in this range of Lake Oswego real estate with 2 being absorbed so the total is at 107.  The Lake Oswego homes for sale in this range are on the market for an average of 234 days.

While the lease expensive 25% of  listings have a median price of $309,000 and have an average DOM of 153.  This range of Lake Oswego homes for sale are on average of 41 years old on just under 10,000 sq ft lot, 1792 sq foot homes with 3 beds and 2 baths.  Four new listings came up for sale with 7 being absorbed bringing the total to 107 in this range.

To view Lake Oswego real estate listings, click on the map

Rich Peralta is a real estate professional in the Portland Metro Area,  Lake Oswego and  West LinnReal Estate.

He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com

Contact him  for more information on Portland, Lake Oswego & West Linn Real Estate!

Originally posted on West Linn Real Estate.

Click on map to search Portland Real Estate

The median list price in Lake Oswego, OR this last week was $566,500.   The per square foot asking price came to $202 per square foot.  38% of listings had a price decrease and 11% reset their DOM (Days On Market) by re-listing.  The average DOM was down to 190 days..

Median home specs are as follows; 2916 sq foot home with 4 beds, 2.5 baths on a 1/4 to 1/2 acre lot.  13 new single family detached homes for sale in the Lake Oswego real estate market this week while 13 homes were absorbed.  This brings the active listings to a  total of 402.

The most expensive 25% of listings have a median home price of $1,195, 000.  The median specs for these homes are 20 years old with 4212 sq ft, 4 bedroom and 3 baths on lesss than a 1/2 acre lot.  There were 4 new listings in this range of Lake Oswego real estate with one being absorbed so the total to 100.  The Lake Oswego homes for sale in this range are on the market for an average of 256 days.

While the lease expensive 25% of  listings have a median price of $299,900  and have an average DOM of 162.  This range of Lake Oswego homes for sale are on average of 44 years old on just under 10,000 sq ft lot, 1756 sq foot homes with 3 beds and 2 baths.  Five new listings came up for sale with 4 being absorbed bringing the total to 101 in this range.

To view Lake Oswego real estate listings, click on the map

Rich Peralta is a real estate professional in the Portland Metro Area,  Lake Oswego and  West LinnReal Estate.

He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com

Contact him  for more information on Portland, Lake Oswego & West Linn Real Estate!

Originally posted on West Linn Real Estate.

Click on map to search Portland Real Estate

Five reasons why Short Sales are not like their name.

1) Bank or Servicer
The “Banks” are quite often the main reason for any delay in the short sale process.  Processing a West Linn short sale can easily be accomplished, but some banks simply fumble the case or goof up the files.  Banks often say that they never received the files or documents, or if they do receive them they turn around and lose the documents or files. The staff is quickly put together or inadequately  trained to deal with the load of work that it takes to complete a short sale.  Many times the person the file was assigned to leaves, quits, gets fired, and they have to re-assign the files.  Or someone just doesn’t move forward with the case or, they never assign files to start with.  Reassigning for whatever reason almost always means, starting over.  In addition, some banks are now using third party servicing companies to process their files which adds another layer of bureaucracy.

2) Investor / Mortgage Insurer
The investor and/or mortgage insurance company can often times be the reason for the delay.  After the short sale application are compiled, sent in, lost, found again, resubmitted, the 3rd different negotiator assigned to the case, reviewed by the bank and initial negotiations have taken place, then files can be submitted to the investor and/or mortgage insurer for their final review.  Some of these entities take 45+ days to review.  After all of that , they still need to issue an approval to complete the short sale.

3) Broker Price Opinion (BPO) or Appraiser
To make sure that they are recovering an acceptable amount for the asset, the bank will order a valuation of the property .  While some banks are using appraisals, others still rely exclusively on a Broker Price Opinion or multiple BPOs.  If the valuation is not accurate, it could take additional time to convince the bank otherwise.  That additional time could amount to a significant delay in processing the short sale.

4) Buyer
One very common occurrence is that the buyer backs out because they got tired of waiting for the approval to move forward on the transaction.  Short sale approvals are often issued to one particular buyer.  It is not unusual for the bank to do some investigation as to whether the buyer is an arm’s length buyer, i.e., not your cousin or your business partner.  Most times if the buyer backs out, the entire process has to start over again.

5) Seller
A distressed sellers in a short sale situation can be their own worst enemy. Many times a short sale seller is so overwrought about their financial situation that compiling the necessary paperwork becomes a very daunting task for them.  This can add to delays in the process. Sellers are often slow to provide the necessary documents for the short sale. Some documents have to be requested from third parties and take time to receive.  Some documents must be compiled by the seller, current profit and loss statements (if the seller is self-employed), financial statements, and one of the most important, the hardship letter.

Its like calling a really big person Tiny or a someone with no hair Curly,a Short Sale is nothing like the name states.

Distressed

Short Sale Rejection

SHORT SALE NAME

To view Lake Oswego real estate listings, click on the map

Rich Peralta is a real estate professional in the Portland Metro Area, including Lake Oswego, Tualatin and  West LinnReal Estate.

He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com

Contact him  for more information on Portland,  Lake Oswego or
West Linn Real Estate!

Originally posted on West Linn Real Estate.

 

 

I cannot stress this more but talk to a home loan specialist when you are thinking (even in the future) of buying Lake Oswego real estate.  While the home loan process is not rocket science, it is not as simple as your online mortgage estimation calculator either.  You might think you can get much more or much less than what you can actually afford.  You will not know until you talk with a mortgage professional.

Here is some general information on what helps figure out your Lake Oswego real estate purchase limit.  Lets keep this basic, your home buying power will ultimately depend on two things; how much you have available for the down payment & how much a financial institution will agree to lend you.

Bottom Line: All of the above are merely guidelines.  Every loan and every applicant will differ.  That is why everyone needs to speak with a lender first rather than try to figure it out themselves.  People who trying to “run their own numbers”  will add or subtract things that are wrong or important.   Talk with a professional to know where you can start searching.

I have some good Lake Oswego lending contacts when you want to start the process.

To view Lake Oswego real estate listings, click on the map

Rich Peralta is a real estate professional in the Portland Metro Area, including Lake Oswego, Tualatin and  West LinnReal Estate.

He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com

Contact him  for more information on Portland,  Lake Oswego or
West Linn Real Estate!

Originally posted on West Linn Real Estate.

When you work with a real estate agent to help you find a home, you either hire a  buyer’s agent (one who works for you not the seller) or a dual agent. You have a dual agent if your real estate agent is both representing  the seller of the home you want to buy at the same time they are representing you, the buyer. This usually is a conflict of interest even though it is legal here in Oregon.

When you use a buyers agent you ensure that you have someone who is working only for you and not the seller.  Using a buyers agent will eliminate the dual agency aspect.  Click here to read a post about myths in using a buyers agent.

Lets say a realtor is working with a seller for quite some time.   The listing agent has invested quite a bit of time and money to get the sellers to list their home with that agent.   Numerous meetings with the seller, emails and phone conversations, essentially forming an important relationship with the seller.  That listing agent has promised that seller the highest possible price, and in fact the agent owes his client a legal and fiduciary duty to the sellers during the entire course of the real estate sale.

Now imagine the same agent begins working with a buyer.  These buyers want to use this same Realtor to purchase their Lake Oswego real estate.  The buyer likes that same house the agent is listing for the seller mentioned above.  Now that agent has a legal and fiduciary duty to get his new buyer the lowest possible price and represent them in the transaction.

Here is something to think about, who will the agent fight for the most?  Is this agent going to try and get the lowest price and best terms for the new buyers?  Or will he be looking out for the sellers best interest, who hired him in the first place?   Could there be any conflict of interest?

Here are a few points to why using a buyers agent to represent you in a home purchase will help you avoid that conflict of interest. Making contact and “hiring” a buyers agent from the start of your home search can benefit you when you close your deal.

1.  You have an agent who represents only your interests without a conflict with the seller.   If you hire an agent to represent you as your buyer’s agent, you eliminate those conflicts that can work against your best interests.

2.  You can find and hire a buyer’s agent who has the experience and professional abilities you need as you get ready to spend hundreds of thousands of dollars. The best part is that you as a buyer do not pay for their services. The listing agent is the one who pays the buyers agent who bring in a buyer.  In dual agency, the buyer agent commission (also known as BAC) would be kept by the listing agent essentially doubling his commission.

3.  A buyer’s agent has a focused interest in protecting you, and that means using all of their resources, knowledge and experience to help you find the best home, negotiate the best price, handle all contingencies appropriately, protect you from legal liabilities and contract ambiguities, and in being your transaction coordinator until the close of the sale.

4.  Because your buyer’s agent does not have a legal or fiduciary duty to protect the seller, he can negotiate the price and terms entirely with your interest and preferences in mind.

5.    If your buyers agent is not trying to represent the seller, they will be in it for you and you alone.  Since they don’t represent the seller, there is no dual agency and no conflict of interest from dual agency.

6.  A Lake Oswego real estate buyer’s agent has a desire to help you do your due diligence on the home you wish to purchase to help avoid problem areas that may not be completely pointed out to you by the  agent representing the sellers.

A  professional buyer’s agent will help you find the ideal home without biases, provide you information to help you make and informed decisions about location, help you negotiate the best possible price and terms, and guide you through the transaction in its entirety all the way to closing.

To view Lake Oswego real estate listings, click on the map

Rich Peralta is a real estate professional in the Portland Metro Area, including Lake Oswego, Tualatin and  West Linn Real Estate.

He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com

Contact him  for more information on Portland,  Lake Oswego or West Linn Real Estate!

Originally posted on West Linn Real Estate.

How much do you need for a down payment?

If possible, 20% of the purchase price is a good down payment. Anything less than will usually give way to Mortgage Insurance which can equal hundreds of dollars a month on your mortgage payment. Absolutely none of the mortgage insurance premium will go to the principle balance of your loan. If you can save a 20% down payment, you should be able to avoid mortgage insurance altogether.  Your payment goes down because you don’t have to pay mortgage insurance, but also because you are financing less.   Not having to get mortgage insurance will significantly lower your monthly payment. While it could allow you to qualify for more home, you have to take into account that, if you raise up the cost of the home, you will need also need to bump up your down payment.

To many people, 20% would be out of reach in the time to purchase a home. If one cannot save the 20% as a down payment, try to shoot for 5-10%. While the minimum amount required for common financing is 3.5%, anything less than 20%, you will likely have mortgage insurance up-front, monthly, or even both.

What to do before the house hunting starts?

Talk with a Buyers Agent

When do we start getting serious?

To view West Linn real estate listings, click on the map

Rich Peralta is a real estate professional in the Portland Metro Area, including Lake Oswego, Tualatin and  West Linn Real Estate.

He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com

Contact him  for more information on Portland,  Lake Oswego or West Linn Real Estate!

Originally posted on West Linn Real Estate.

The median list price in Lake Oswego, OR this last week was down $10,000 to $575,000.   The per square foot asking price held at $198 per square foot.  44% of listings had a price decrease and 21% reset their DOM (Days On Market) by re-listing.  The average DOM was down to 226 days, 2days more than the prior week.

Median home specs are as follows; 3051 sq foot home with 4 beds, 3 baths on a 1/4 to 1/2 acre lot.  34 new single family detached homes for sale in the Lake Oswego real estate market this week while 16homes were absorbed.  This brings the active listings to a  total of 387.

The most expensive 25% of listings have a median home price of $1,249, 000.  The median specs for these homes are 14 years old with 4321 sq ft, 4 bedroom and 3.5 baths on lesss than a 1/2 acre lot.  There were 9 new listings in this range of Lake Oswego real estate with 2 being absorbed so the total is at 91.  The Lake Oswego homes for sale in this range are on the market for an average of 294 days.

While the lease expensive 25% of  listings have a median price of $304,450 up from $299,974 the prior week and have an average DOM of 174.  This range of Lake Oswego homes for sale are on average of 42 years old on just under 10,000 sq ft lot, 1766 sq foot homes with 3 beds and 2 baths.  12 new listings came up for sale with 4 being absorbed bringing the total to 96 in this range.

To view Lake Oswego real estate listings, click on the map

Rich Peralta is a real estate professional in the Portland Metro Area,  Lake Oswego and  West LinnReal Estate.

He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com

Contact him  for more information on Portland, Lake Oswego & West Linn Real Estate!

Originally posted on West Linn Real Estate.

Click on map to search Portland Real Estate

The median list price in Lake Oswego, OR this last week is at $585,000.  This is up from last week of $579,900.  The per square foot asking price came down one dollar to $198 per square foot.  47% of listings had a price decrease and 22% reset their DOM (Days On Market) by re-listing.  The average DOM was down to 224 days, 4 days less than the prior week.

Median home specs are as follows; 3080 sq foot home with 4 beds, 3 baths on a 1/4 to 1/2 acre lot.
22 new single family detached homes for sale in the Lake Oswego real estate market this week while 28 homes were absorbed.  This brings the active listings to a  total of 365.

The most expensive 25% of listings have a median home price of $1,195, 000.  The median specs for these homes are 14 years old with 4288 sq ft, 4 bedroom and 3.5 baths on lesss than a 1/2 acre lot.  There are no new listings in this range of Lake Oswego real estate with 5 being absorbed so the total is at 91.  The Lake Oswego homes for sale in this range are on the market for an average of 290 days.

While the lease expensive 25% of  listings have a median price of $299,974 and have an average DOM of 183.  This range of Lake Oswego homes for sale are on average of 40 years old on just under 10,000 sq ft lot, 1780 sq foot homes with 3 beds and 2 baths.  Ten new listings came up for sale with 13 being absorbed bringing the total to 92 in this range.

To view Lake Oswego real estate listings, click on the map

Rich Peralta is a real estate professional in the Portland Metro Area,  Lake Oswego and  West LinnReal Estate.

He can be reached at 503.961.2181 or by e-mail at rich.peralta@exprealty.com

Contact him  for more information on Portland, Lake Oswego & West Linn Real Estate!

Originally posted on West Linn Real Estate.

Click on map to search Portland Real Estate