Archive for Buyers

My Corvallis Oregon Move–7 Things that Worked for Me

My Own Recent Corvallis, Oregon Move

I recently sold my home of 11 years in Corvallis, Oregon and moved to a rural subdivision just outside Corvallis (technically in Benton County, but still with a Corvallis zip code).  The “new” home on a very big lot (nearly 3/4ths of an acre), similar in vintage to the “old” house, a little larger,  a little “newer” (1963 vs 1959) and it has a shop.

I’m pretty experienced at “moving”.  We moved around a lot when I was a kid (something like 14 or so different times before high school) and there are a lot of moving stories associated with all those moves. All-in-all, I have to say the process went very well this time.  Of course, I think I had the best real estate agent around…  Even so, we had our ups and downs.  There is rarely a home sale process that occurs without some “challenges”.

We needed to sell the home we lived in, so that we could move the money and buy the home we wanted. A fairly normal scenario, but it can be a tricky process.  The one thing I can say that worked in our favor was that I do know how to do this. I even listened to my own advice.

Here are the 7 things that worked for me.

  1. Prepare the house to be sold for market (commonly called “staging” but oh, so much more than “decorating”  
    1. Finish projects—the ugly old half bath finally got a face lift
    2. Fix what needs fixing—refinished some wood flooring, put back closet doors, installed new appliances, replace glass in windows with seals that were compromised, fine tune to the nth degree
    3. Eliminate anything that’s excess—pack away items that are specific to us, clear out closets, haul away excess (how in the world did we accumulate so much stuff?) and stash the rest–preferably off site
    4. Touch up paint—this one item has the biggest impact and is the least expensive to do
    5. Touch up the landscaping—weed, mow, bark dust etc.  Haul away that “extra yard stuff”
  2. Do a market analysis—list within the confines of that analysis. This is a crucial step. Going over won’t bring an “offer”.  Listen to feed back from other professionals (even though this is what I do, it’s difficult to be objective–but used my own judgment as well, some thought I could list higher…)
  3. Take many, very good, photos, publish the very good photos in real estate specific web sites that are well trafficked the local MLS (Willamette Valley MLS), ColdwellBanker.com, ValleyBrokers.com,  Realtor.com and nearly every other web site known to the real estate world.
  4. Disclose everything I know. Detailed information. No guessing,  ”just the facts, ma’am”
  5. Negotiate the best offer. Received two offers, focused on the best. In contract within 6 days of publishing to MLS. No worries from the home inspection (because we knew pretty much what we had). Sweated out the appraisal (it was fine—I thought it should be, but these are weird times)
  6. Move! (the seller of the house I purchased gave me early possession—that won’t always work, but there’s almost always a solution).  We hired a local professional mover, because after all, we are not kids anymore.  Get in touch with me if you need his name.
  7. Closed! Signed papers, used a local, lender. Everything there went like clockwork.

Of course there will be some glitches.  Some of the things that happen right after a move are funny, some are not.  We are very happy with the new place.  No, the boxes are not yet unpacked, but the bird feeders are up and we’re looking forward to the next phase.

Related posts: What is Staging and Why Bother?

Why A Home Protection Plan

Why A Home Protection Plan (Warranty)


Your home is one of your biggest investments. Unexpected repair or replacement costs can put a strain on your budget, especially with the other expenses associated with moving.

The home protection plan offered by Coldwell Banker (via American Home Shield) provides peace of mind to both the seller and the buyer during the time in which the home is on the market (seller protection) and for at least one year after closing (buyer protection).

The plan offers quick relief from hassles and expenses when covered items break down during the course of the listing or the first year of home ownership.

What is a home protection plan? It is a service contract (not really a warranty, but commonly referred to as that) that covers repair or replacement of many of the most frequently occurring failures of home systems and appliances. A home protection plan pays for repair or replacement of any covered item that breaks down due to normal wear and tear or items that fail due to typical use. The owner at the time of the service call pays a minimal service charge.

When a seller purchases a warranty during the listing period, they:

  1. are protected in the event that a covered component fails while the home is listed
  2. are protected in the event that a covered component has failed, and the failure is discovered during the course of a home inspection (for either a buyer or a seller)
  3. have the peace of mind of knowing that some of the expenses, that could become problems during the course of selling the home, are minimized

When the buyer obtains a warranty they have the peace of mind of knowing that their potential for major home repairs are mitigated during the first year of home ownership, often a time when savings are at a low point.

Warranties are renewable, so buyers have the option of purchasing additional coverage after the first anniversary of their home ownership.

Some of the most common items I’ve seen handled by the Home Protection Plan for my clients have included: Plumbing repairs, electrical repairs, heating system repairs, and appliance repairs.

Three Things to be Aware of When Shopping for a Home…

Here’s some basic advice from CBS MoneyWatch.com that will help buyers in the Corvallis, Albany, Philomath or other markets in the mid-Willamette Valley.  Most buyers are starting their research process on the Internet, and there’s a ton of data out there.  Not all of it accurate, so it takes some time and experience to filter out the good from the bad. I think this is great advice. What do you think?

Don’t Miss Out | Existing Homeowners may qualify too!

home_eligibility_buttonDon’t Miss Out!

Some existing homeowners who purchase a replacement personal residence may qualify for a tax credit as well.  Here’s a link to a guide that can help you determine if you qualify or not. Timing is crucial and of course, check with your tax advisor for complete details. This eligibility test works for either existing homeowners or first time homebuyers.

Tax credit timing:  You must be in a contract by 4/30/2010 and close by 6/30/2010 to qualify.  We are not anticipating this credit to be extended.  The industry leaders that worked so hard to accomplish getting this credit passed, have publicly stated that they will not be asking for more.

If you’re interested in buying, time is running out; you need to get into the market sooner rather than later.  I specialize in residential real estate in Corvallis, Albany, Philomath, Lebanon and surrounding areas of the mid-Willamette Valley in Oregon.  I’d be happy to help you work your way through the process.

Check to see if you qualify for a home buyer tax credit (first time or current homeowner)

Note: Test provided by Alishia Jones, Mortgage Loan Officer, Bank of America, Corvallis, Oregon.

Money Matters

Money Matters

  • Federal Housing Administration (FHA) is rolling out new guidelines soon (April) for their loan programs, increasing the up-front Mortgage Insurance Premium (MIP) to 2.25% (currently at 1.75%).  For every $10,000 in loan amount, this translates to a cost of $50.00 extra in closing costs.  For example, if you were to borrow $200,000 the additional cost would be $1,000.
  • FHA is also reducing the amount that a seller can contribute toward closing costs from up to 6% of the purchase price to 3%.
  • The first time homebuyer credit is expiring soon as well.  April 30th is the deadline for a written contract to be in place; June 30th is the last date for that contract to close.
  • Attention existing homeowners; you too may be entitled to a tax credit.  There are many out there that are unaware that if you purchase a replacement primary residence (in contract by April 30th, Closed by June 30th) you may qualify for a $6,500 tax credit.


(Certain conditions apply for transactions to be eligible for tax credits—check this web site: http://www.homebuyertaxcredit.com/  and get advice from your professional tax advisor)

Important Items To Look For In A Home Inspection

Important Items to Look for In a Home Inspection


For Buyers and Sellers

Home inspections can vary from simple one page check lists to extensive multi-page documents.  When evaluating written reports and/or selecting an inspector based on the report produced, there are several
important factors to consider:

  1. What is the scope of the inspection; what systems, fixtures, and components are inspected? Does the report include general information to improve the reader’s overall knowledge about the property in addition to reporting problems? How much of the property is inspected? Is there a systematic approach to the inspection?  Knowing what is included in the inspection report is key to knowing if the inspection is thorough. Obtaining information about the status of all components (those in good condition as well as those needing attention) provides you with a benchmark of condition for ongoing maintenance.
  2. Is the report easy to read? Is the layout straightforward and is redundancy avoided? Is there a summary that supports the details? Are the items numbered and in categories that are easy to follow? A report that’s easy to read and identifies items by category and/or room as well as numbers makes communication with others regarding the findings easier.
  3. How detailed is the report? Does it include photographs of the findings? A picture paints a thousand words. Photographs make it easier to understand items included in the report.
  4. Is an electronic version of the report provided? Frequently the report needs to be distributed to others in order to work through negotiations and contractor evaluations. A report that’s easy to forward on to others streamlines those processes.
  5. How quickly will the report be provided? Often times there are tight time lines associated with negotiation of inspection related items. Prompt delivery of the inspection is an essential element of the inspection process.
  6. Does the report “package” include items of added value? Some inspectors provide coupons, home
    maintenance checklists and simple home repair guides as added value to their reports.
  7. Is the inspector available to answer questions after the fact? Being able to communicate with the inspector about the specifics of the report and clarification of findings helps simplify the corrective action process.

How Would You Spend Your Tax Credit?

How Would You Spend Your Tax Credit?

COLDWELL BANKER REAL ESTATE STUDY FINDS CONSUMERS’ ANTICIPATED ‘SMART SPENDING’ OF HOMEBUYER TAX CREDIT WILL AID ECONOMIC RECOVERY

83 Percent of Current Homeowners Surveyed Say They Would Spend Tax Credit on Repaying Existing Debts, Home Improvements, Savings/Investments and Household Expenses

Coldwell Banker Real Estate LLC today announced the findings from a new survey that looked at how the recently expanded federal homebuyer tax credit, which opened up the credit to existing homeowners, might impact the economy.  Of the more than 1,000 homeowners surveyed, 83 percent responded that if they were to purchase a home and qualify for the tax credit, they would engage in “smart spending” or put the money toward paying off existing debts, home improvements, savings/investments, or everyday household expenses.  Only 6 percent of respondents indicated that they would spend the money on what are commonly referred to as luxury items such as a vacation or a shopping spree.

According to the survey, the top way homeowners would spend their $6,500 tax credit in a “smart” way would be to pay off debts (34 percent), followed closely by making home improvements (29 percent) and putting it into savings and investments (28 percent).

In addition, Coldwell Banker Real Estate found that 20 percent of homeowners indicated they were more likely to consider purchasing a home than they were six months ago, after learning about the $6,500 federal tax credit. The tax credit, which previously only was for first-time homebuyers, is now available to existing homeowners who sign a binding contract before April 30, 2010 and close on the purchase of a home before June 30, 2010. To learn more about the details of the expanded homebuyer tax credit, go to www.coldwellbanker.com

If you’re considering purchasing a home in Corvallis, Albany, Lebanon or Philomath (and surrounding areas of the mid-Willamette Valley); I’d like to help you meet your goals.  I work with buyers and sellers at all price levels. Please get in touch and we can get started today.

Other resources for information about the tax credit:

National Association of Realtors frequently asked questions about the tax credit

I.R.S. information abut the tax credit

Expanded and Extended Tax Credit Information–From the Expert

Questions and Answers from the Expert about the Expanded and Extended Tax Credit

Sellers and Buyers in and around the Corvallis and Albany, Oregon real estate markets can benefit from a clear understanding of the opportunities the Expanded/Extended Home Buyer Tax Credit provides.

An excellent source for answers to questions you may have about the expanded and extended tax credit for First Time Home Buyers and Long Time Home Owners that are thinking of making a change can be found at the Q & A page for the I.R.S.  The ultimate resource for information about taxes, tax credits and all other information that relates to the Expanded and Extended Tax Credit for buying a home.

It is possible to have parent (or other family members) assist in the purchase and still be eligible for credits.

If you are currently a homeowner and meet the other requirements, you do not have to sell your existing home (you could rent it out), but you do have to occupy the newly acquired home and meet all the other requirements.

You do not have to “buy up” or, in other words pay more for the new house.

Read the Questions and Answers about the tax credit for Home Buyers. This is truly a limited time opportunity.

I.R.S. Information about the Expanded and Extended Tax Credit

As always, seek the advice of a qualified tax advisor if you have questions about tax laws and how they pertain to personal circumstances.

Coming Soon | 5 Bedrooms | 3.5 Baths | $399,900

I have a another new listing coming on the market very shortly and just wanted to let everyone know about it before it gets here!

This dream home located in North Albany is complete with all the amenities. Chef’s kitchen with dramatic black granite counter-tops, spacious island, stainless steel appliances, and stunning wood cabinets, combines with dining area and family room to create “Great Room” style living. Spacious and bright main level has formal living room with gas fireplace and formal dining room. Upper level master suite features gas fireplace, jetted tub, and huge walk-in closet. Second master suite on the main level is ideal for guests or extended family living. Excellent outdoor living spaces, pond with water feature, underground sprinklers, and RV parking.  5 bedrooms, 3.5 baths, approximately 3733 sq. ft.

Located east of Corvallis and easy commute to Corvallis employment, including Oregon State University.

Home Buyer Tax Credit De-Mystified

Agent with Key

The extended/expanded tax credit is getting a lot of press and a great deal of mis-information is being spread around.  Here’s a Questions and Answer Session provided by the National Association of REALTORS® that may help provide some clarity.

 

NAR Frequently Asked Questions Homebuyer Tax Credit Changes
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001

The following are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit. 

Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

Question: I am a first time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phaseout range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as he lived in that house for 5 years straight what he did since 3 years doesn’t impact eligibility.
 
Question: I am an eligible first time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30. 

If you are thinking of buying or selling a home in Corvallis, Oregon or the surrounding cities of Albany, Philomath or Lebanon or anywhere in the Mid-Willamette Valley.  I’m here to help.

As I’ve said before and will no-doubt say again, if you want expert advice about the 2009 Tax Credit, or the Expanded/Extended Tax Credit, consult with a qualified, tax expert.  Typcially a real estate agent and/or mortgage lender do not have that expertise.

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