Archive for Real Estate Information
A New Resource for First Time Homebuyers
A New Resource for First Time Homebuyers
Coldwell Banker Corporation has just added a new resource for First Time Homebuyers to its web site ColdwellBanker.com. The First-Time Home Buyer Resource Center includes videos, articles and tools to answer questions and guide new home buyers through the real estate search process. If you’re thinking about buying a home for the first time in Corvallis, Albany, Philomath or for that matter, anywhere in Oregon or the U.S., this site would be worth a visit.
If you want to ask questions or need help buying your first home, Contact Dava.
What is Escrow?
My clients that are buying and selling homes in the Corvallis and Albany areas frequently, ask ”What is escrow? 
In general, “escrow” is the neutral third party that holds instruments (deeds or other documents that convey ownership); funds (or other items of value); or evidence of title for real or personal property. In Oregon, the escrow agent is typcially a Title Insurance Company (but this does not always have to be the case).
In a real estate transaction, “escrow” is the neutral third party that holds the deeds, collects and disburses the funds and follows instructions on behalf of the parties to the transaction.
It is the function of escrow in a real estate purchase transaction to make sure that all the instructions (which are really the terms of the sales agreement and the lend, er instructions) are followed; that all bills are paid (through the instruction of the buyer, the seller or the lender) and that funds are disbursed (lender loan proceeds, seller’s proceeds and any excess monies deposited by the buyer to the buyer).
Escrow follows the instructions of the parties to the transaction to determine how proration of taxes and other re-occuring charges such as homeowner association fees are handled. Escrow also makes sure that appropriate parties such as taxing authorities, homeowners associations, water districts and so forth are notified when there is a change of ownership. Escrow does not typically notifiy public utilites of changes of ownership. An owner that is selling should notify their hazard/homeowners insurance of the sale (but not until the sale is completed and the sellers proceeds are disbursed.)
Escrow is also responsible by law for the collecting of information and reporting of sales information to the state and federal government in the event of a possible income tax liability on the part of the seller of real estate. It’s important that sellers and buyers understand the tax ramifications of their transactions prior to closing. Escrow will send out questionnaires to be completed early in the process to help alleviate problems that can arise from tax consequences of a sale (such as FIRPTA and State and Federal witholding requirements), if for some reason you do not receive paperwork from the escrow company early in your transaction, you will want to check on it.
Escrow is not allowed to act independently. In general, once a buyer’s earnest money deposit is “in escrow” escrow cannot release those funds without express instructions from all parties. Escrow is not allowed to proceed with finalizing or cancelling a transaction without instructions from all parties. If there is a dispute that arises from disagreements from any of the parties to the transaction, escrow must wait for instructions between the parties that are consistent before they act upon them.
It’s important the that escrow agent: be finanacially responsible (and have financial strength); have expertise in handing complex transactions; act in a manner to assure that payment of liens and other encumbrances is accomplished; provide single point of contact for coordination of flow of documents and funds; remains an impartial third party.
If you need more information or have specific questions I can answer, please get in touch. Contact Dava
Not a Bank | Not a Well | Not Cold |Coldwell Banker and George Washington’s Teeth
Another humerous video by Coldwell Banker illustrating that Coldwell Banker is a Real Estate Company, not a bank!
Just for fun. Evidence that even though real estate is a serious topic, it can also be fun!
Coldwell Banker Home Listing Report
Coldwell Banker Releases its Annual Home Listing Survey Report
On Wednesday, June 15, 2011, Coldwell Banker released its annual survey which provides a “snapshot” of the average listing price of four-bedrooms two-bathroom homes that appeared on ColdwellBanker.com in a 6 month period, covering more than 2,300 North American Markets. This year’s report is more extensive than ever before and covers more markets. As a Coldwell Banker agent, I appreciate it that Coldwel Banker provides excellent interactive tools for buyers and sellers making the information easily accessible and useful.
Jim Gillespie, chief executive officer, Coldwell Banker Real Estate LLC said, “We’ve included nearly ten times more markets than ever before, which gives us unmatched real estate insight into thousands of North American cities…. We know that home buying remains a deeply personal lifestyle decision, and we believe that reports like this, along with trusted real estate agents, will help today’s buyers make smart decisions .”
For the full report: Coldwell Banker Home Listing Report.
While visiting this page, take a look at the charts included in the press release or compare the price of your home to other markets by filling out the data at the lower half of the page, check out the infographic for a visual of the ten most affordable and ten most expensive markets or check out the ranking of your community in comparison to other communities in your state with the State Survey List.
The High Cost of Not Getting Professional Help
Buying or Selling Investment Properties (Real Estate) When Involved in a 1031 Exchange, it’s what you don’t know and don’t do that can really cost you.
This is a really good article about getting the correct level of assistance when involved with a complex real estate transaction. I think the lesson translates to a great deal of things we do in LIFE. Also, a reminder that the courts don’t really care what the “intent” is when the rules are not followed in regard to IRS rules and laws. It’s what you do that counts, not what you meant to do.
In this case the taxes were due and penalties were applied.
Protect Oregon Homes
Protect Oregon Homes
In Oregon, the Oregon Association of REALTORS® is mobilizing residents across the state in support of Initiative Petition 5 to constitutionally protect your real estate property from a sales tax.
A real estate transfer tax is a sales tax on your property. It is a form of double taxation that lowers homeowner equity; negatively impacts the process of buying and selling a home; and unfairly targets property owners and lower income residents alike.
Learn More About The Issues
- What is a Real Estate Transfer Tax?
A real estate transfer tax is a state or local government imposed tax that is collected when you transfer ownership of your home, land or commercial real estate. Typically, once the tax is initiated, the rate can be increased by the state, county or city at any time. - What is the language of the constitutional amendment being considered?
Amends Constitution: Prohibits real estate transfer taxes, fees, other assessments, except those operative on December 31, 2009.- Result of “Yes” Vote: “Yes” vote prohibits state/local governments from imposing taxes, fees, assessments on transfer of any interest in real property, except those operative December 31, 2009.
- Result of “No” Vote: “No” vote retains existing law, prohibiting local governments from imposing real estate transfer taxes/fees (with exceptions), allowing state legislature to impose such taxes/fees.
- Summary: Amends constitution. Current statutory law prohibits a city, county, district, or other political subdivision/municipal corporation of this state from imposing taxes or fees on the transfer of real estate (with certain exceptions). However, the state legislature has the authority, subject to governor approval, to impose such taxes and fees or to change current statutory law. Measure prohibits the state and any city, county, district, or other political subdivision or municipal corporation from imposing taxes, fees, or other assessments based upon the transfer of any interest in real property or measured by the consideration paid or received upon the transfer of any interest in real property. Measure exempts from the prohibition any taxes, fees, or other assessments in effect and operative on December 31, 2009. Other provisions.
- Does Oregon currently have a Real Estate Transfer Tax?
The State of Oregon does not impose real estate transfer taxes; however, Washington County in the Portland metropolitan area does impose a tax on the sale of real property. - Do other states impose a Real Estate Transfer Tax?
Currently 36 states impose transfer taxes on real property, and even more impose sales taxes on most purchases of personal property as well. As state and local governments search for additional sources of revenue, they are increasing or adding sales taxes. - How would a Real Estate Transfer Tax work?
Each level of government that imposes a tax would charge a percentage of the sale price (rates typically vary from 0.1% to 4%) when you sell your home or real property, thus there could be multiple layers of taxation on a single transaction. The tax is imposed whether or not you make any profit on the sale. - Wouldn’t a Real Estate Transfer Tax just be rolled into the cost of a mortgage and not impose a heavy burden on the buyer?
Some jurisdictions impose the tax on the seller of the property, so it would have to come out of the profits (if any!) of the sale. This is money out of the pocket of the homeowner who has paid property taxes for years, thus opponents of real estate transfer taxes argue that it is an unfair double tax. Other jurisdictions do charge the purchaser of property; however, any increased cost to purchase a home will negatively impact whether or not the buyer can afford to purchase the home. - Why is this measure necessary if we don’t have a transfer tax currently? Couldn’t we just work to defeat one if the state legislature or our local government proposes it?
After having passed the largest tax increase in Oregon’s history in the 2009 Legislative Session, we can’t afford to take the chance when people’s homes and hard-earned equity are at stake. During the past five legislative sessions there have been ten attempts to authorize such a tax. - Why is it necessary to amend the State Constitution?
Making the current law permanent is the only way we can guarantee that homeowners will be protected from this tax. A constitutional amendment protects Oregon families and businesses from the possibility of a real estate transfer tax being imposed in the future, stealing the equity that they have carefully built up over time. Amending the constitution puts the people of Oregon on record against the unfair imposition of a real estate transfer tax. - Does this measure take away any existing revenue from state or local governments?
NO. This proactive measure does not negatively affect current school funding, local government funding or state revenues in any way. Instead, it prohibits local and state government from imposing a new real estate transfer tax in the future. The one existing transfer tax in the state – in Washington County – is left in place under this measure. - Does this measure protect both residential and commercial property from a Real Estate Transfer Tax?
YES. The measure explicitly prevents a sales tax from being imposed on the transfer of any interest in real property including agricultural, commercial and residential property.
To calculate your potential transfer tax, sign the petition, or for more information about Protect Oregon Homes, please visit: www.ProtectOregonHomes.com
Fast Facts!
Did You Know?
- Homeowners may deduct mortgage interest and property taxes as an expense against income.
- You may be able to deduct mortgage interest on a second home, second mortgages, home equity loans, and HELOCS.
- You can cancel PMI when your home equity hits 20%, even though your lender isn’t required to cancel it until it hits 22%.
Information provided from the National Association of REALTORS®
Announcing: Coldwell Banker Valley Brokers Property Management
Announcing: Coldwell Banker Valley Brokers Property Management
There is a new property management choice in the local area–Coldwell Banker Valley Brokers Property Management Division, serving Corvallis, Albany, Philomath, Lebanon and other areas in the Mid-Willamette Valley. From apartment and home rentals to commercial and investment portfolios, we offer you a full service management division with experienced and competent managers to serve all your needs.
So whether you are looking for a place to live or need someone to give your property the attention and care it deserves, look to Coldwell Banker Valley Brokers Property Management today.
For more information please visit: www.ValleyBrokersPropertyManagement.com
or call (541) 257-3459
Buyer Question: Is this property a foreclosure or short-sale?
Every so often I am asked if a property I represent is a short-sale or a foreclosure.
I’m always curious about why they ask…
Typically, it’s for one of two reasons
1) The interested party doesn’t want to invest the time and energy in a “distressed” property
or
2) The interested party is interested in getting a “really good deal”.
Both positions have some very valid points and are reasonable positions to take.
A few points to consider:
- It can take months to get the lender to respond to a “short sale” proposal. (Which can take the buyer out of the market (passing up other potential properties while waiting, but there are ways to work around this issue).
- Some lenders are taking a pro-active position and getting their “short-sales” pre-approved during the listing period.
- Some “short sale” offers sit and the property goes to foreclosure anyway.
- The condition of the short sale property can change during the wait.
- Distressed properties are often not as well maintained as non-distressed properties due to the economic constraints of the owners and/or other issues during the period between default and the lender take over.
- Some lender owned properties deteriorate during the vacant period between the time the former owner moves out and the time of sale.
- Some lender owned properties may be conditioned on an “as-is” sale.
- Some lender owned properties were never owner occupied. Leaving a question mark as to maintenance and care.
- Some lender owned properties are not financeable.
- Some lender owned properties are offered to the market with incentives.
- Lenders have an obligation to their share-holders to recover as much as the market will bear when they sell their REOs, which may make it difficult to get that “great deal”.
- Some lender owned properties that are aggressively priced are seeing multiple offers, limiting the “good deal” factor considerably.
- Some short-sale and/or Lender owned properties are a great fit and/or investment for buyer and the transactions work out fine.
I know that there are a million good and bad stories (which in turn can create a million more points to consider…) Anyone considering buying a distressed property would be well served to get some good advice, do their homework and go into the process with eyes-wide-open.
A Commentary about Real Estate Investing
Matthew Ferrara is a very savvy guy when it comes to real estate, practicing real estate and understanding real estate. He often has a lot to say about how things are handled by the government. He’s sharp, witty and cynical at times, but interesting and provides some good food for thought. I recommend this post.
Matthew Ferrara’s Sex Lies and Real Estate
Equal Housing Opportunity. Each Office Is Independently Owned and Operated.