My Blog About the Bend Real Estate Market and General Real Estate Ramblings

New Standardized Good Faith Estimate Effective January 1 2010

Cheri Smith (Total Property Resources) — Wed, 09 Dec 2009 16:35:53 -0600

Loreena Yeo posted a great summary of the standardized good faith estimate lenders will be required to provide as of January 1, 2010. This should make it easier for consumers to comparison shop for home loans.

Via Loreena Yeo - Broker|Realtor(R) of www.Frisco-TX-Homes.com (214) 783-2210 (3:16 team REALTY):

For the longest time, there was no standardization in good faith estimates presented by Lenders when a loan application is made by a borrower. No standarization here means some lenders disclose a variety of information on the previous GFE while others do not disclose at all. In efforts to facilitate a better shopping experience for the consumers, HUD requires all lenders use the new standardized format for Good Faith Estimates effective January 1 2010.

At first glance, the standardized format of the Good Faith Estimate is easy to read, understand and digest by the average borrower.

The summary of the loan is displayed on the 1st page with answers about the loan such as:

(1) Can your interest rate rise? (Indicates if it is an adjustable rate mortgage)
(2) Even if you make payments on time, can the loan balance rise? (Indicates if it is a negative amortization loan)
(3) Even if you make payments on time, can your monthly amount rise? (Indicates if the account is escrowed or not)
(4) Does the loan have a pre-payment penalty?
(5) Does the loan have a balloon payment?

Lenders are held to a higher standard of accountability with the use of the standardized Good Faith Estimate. "Good faith" in the past will now be more of certainty, especially when it comes to the Lender charges. HUD requires that Lenders be sure to know how much they intend to charge their borrowers based on the information the borrowers provided.

The new Good Faith Estimate also utilize the Lump & Dump concept whereby HUD feels that the borrowers have been provided too much information in the previous good faith estimates. Items "A" on Page 2 of the GFE includes all origination charges. They are no longer broken down into Loan Origination Fee, Processing Fees, Tax Service Fee, Funding, Lender Feeds, Doc Prep Fees, Broker Yield Spread Premium, etc. Only information that could affect the loan is broken down into 2nd part of "A". According to HUD, the "bottom line" numbers is what the consumers care about.

This section of the Good Faith Estimate must be the same (ie. Zero Tolerance for differences) and borrowers can expect them to be the same on the HUD-1 settlement statement - if the terms and conditions of the loan are the same. Should there be a difference, HUD considers this Breached Tolerance and this breach will be cured with a credit at the closing table or writing a check to the borrower within 30 days of closing.

This brings Lenders to more accountability towards the accuracy of their good faith estimates to their clients. It is a good thing.

Other considerations could be expected should there be changed circumstances on these No Tolerance items above (ie. Lender charges). A changed circumstance may include acts of God, war, disaster, new information not known by the Lender, other information found not to be inaccurate.

There are other charges associated in purchasing the property. These items are found as part of "B" on page 2 of the GFE.

The similar lump & dump concept for Title charges in Section 3, 4, 5 and 6. These charges can deviate up to 10% on the HUD-1 statement - assuming that the borrowers services identified by the Lender. The total of these charges of page 2 on the GFE constitutes the "B" total.

Along with the "A" total and "B" total, these costs add up to make the Total Estimated Settlement/ Closing Costs. However, this is NOT to be confused with Cash Needed for Settlement. Items A and B DOES NOT account for Seller's concessions, property tax and HOA prorations, etc.

Page 3 of the Good Faith Estimate is also known as the "finishing touches" for the loan. It gives borrowers instructions on what cannot be increased at settlement, what may increase up to 10% and what could potentially subject to change.

There is also a tradeoff table for borrowers to see the various choices as provided by the same lender. Same loan with lower settlement charges or same loan with lower interest rates.

Last but not least, the GFE also provides a section to allow borrowers to compare various loan offers in the Shopping Chart section.

The use of the form is MANDATORY. In the past, lenders have created their own formats and some not providing one at all. The new rules as directed by RESPA must be furnished to borrowers:

Within 3 days of loan application.
A loan application is deemed taken by a lender with the borrowers' names, social security numbers, incomes, estimate purchase value, loan amount, other information deemed necessary by lender and property address.
This form must only be utilized if there is a specific property address.
While home buyers have used the GFE to shop for lenders, they could no longer do that. Without a property address, the industry believes that lenders will come up with "preliminary" GFEs without the actual property address.

Without 10 days of GFE issuance.
The GFE will be good for 10 days after the borrower receives it. The borrower MUST express an intent to proceed with the terms and conditions of the loan based on the GFE provided within 10 days business. After 10 business days, the lender is no longer bound by the issued GFE.

This is HUD's effort in facilitating consumer comparison shopping of Lenders. It is not the most perfect version out there but it is a much simpler method for an average consumer to understand. What this new GFE does not address is it does not specify the loan product (FHA, Conventional, VA, etc.) and it also does not inform the borrower the actual monthly payments in Principal, Interest, Property Taxes and Home Insurance (PITI). It only addresses the Principal, Interest and Mortgage Insurance (if applicable). The lender may furnish these information on other documents.

Download the new GFE here.

Related Articles:

How to Compare Lenders and Good Faith Estimates

Mortgage Interest Rates Spiked Higher Than Normal

100% Home Loans

Time Value of Money in Closing Costs

Myths about Tax Assessments vs. Property Values

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Contact:

Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

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Copyright © 2009 by Loreena Yeo (3:16 team REALTY)
Originally posted on New Standardized Good Faith Estimate Effective January 1 2010.

Housing Inventory Plummets in Bend

Cheri Smith (Total Property Resources) — Fri, 13 Nov 2009 17:09:17 -0600

A recent article in The Bulletin indicates that the local real estate market may be shaping up for recovery. The number of homes for sale is roughly 50% off its peak of August 2007. Low home prices, low interest rates, and the tax credit incentive have all contributed to the increase in home sales. An inventory of 6 months is considered to be a balanced market. Anything less signifies a seller's market and anything greater indicates a buyer's market. For homes listed at $300,000 or less, which is the most active segment of the market, the inventory is currently 3 months. Bend's median home price seems to have bottomed at $195,000 in April of this year and currently sits at $220,000.

Read the entire article: Housing Inventory Plummets in Bend

Bend Real Estate Statistics October 2009

Cheri Smith (Total Property Resources) — Thu, 05 Nov 2009 19:59:03 -0600

During the month of October there were 1275 homes for sale, 239 contingent sales, 352 homes pending, and 210 sales. The inventory is down and the sales are up compared to the last few months. In fact, the last time we saw this many sales in one month was towards the end of August 2006 when the market started to cool. Roughly 250 properties were taken off the market last month. Some were terminated or withdrawn and others expired. Some of these properties might be relisted but this tends to be the time of year that many homeowners that weren't able to sell during the summer give up. This is why it's important to keep your home on the market if you're serious about selling. There's much less competition and buyers that are willing to look in the dead of winter are serious about buying.

Once again, most of the sales were in the $200,000 - $250,000 price range, although I have noticed an increase in activity in homes priced over $500,000. Twice as many homes over $500,000 sold in October compared to September. 12 homes sold over $1,000,000 compared to 3 in September. 5 of those sales were in Pronghorn, several of which were part of a bulk deal. The other sales included:

$1,050,000 5 beds/3.5 baths, 3709 sq. ft. home at 456 NW Kansas St. downtown.

$1,200,000 4 beds/5 baths, 6772 sq. ft. home at 3450 Greenleaf Way in North Rim on Awbrey Butte

$1,250,000 4 beds/4.5 baths, 5580sf home at 1518 NW 1st St. on the Deschutes River

$1,769,000 4 beds/4.5 baths, 6035sf home on a 1.27 acre lot in Sunset View Estates.

$1,800,000 5 beds/4 baths, 5500sf home at 437 Drake Rd.

$2,800,000 5 beds/7 baths, 10,881sf home at 61886 Bunker Hill Ct. in Broken Top.

Below is a quick comparison of the previous 6 months. Here's a link to the full stats: October 2009

	Active	Contingent	Pending	Sold
October	1275	239	352	210
September	1543	264	328	173
August	1546	236	211	153
July	1751	238	275	184
June	1789	236	297	158
May	1829	205	242	138

3rd Quarter YTD Statistics Available For Bend

Cheri Smith (Total Property Resources) — Sat, 17 Oct 2009 12:45:47 -0500

Each quarter the MLS compiles year to date sales statistics that compare the current market to previous years. The 3rd quarter statistics have been released. The MLS breaks the statistics into groups including single family homes, townhomes/condos, manufactured homes, single family homes on acreage, manufactured homes on acreage, and bare land/lots. For this post, I focused on single family homes and bare land/lots. In summary, the number of single family homes sold in Bend is up 20.39% compared to this time last year but the median sales price is down 29.1%. For homes on acreage, the number of sales is up 27.85% but values are down 41.7% compared to this time last year.

Bare land has taken a much bigger hit. The number of lots or parcels sold is up 20.9% compared to this time last year but the median sales price is down 60.54%. The minimum sales price was $15,000 and the max was $1,099,000. There are some incredible deals on bare land and lots right now. A 10 acre lot in The Highlands at Broken Top that sold for $1,395,000 in 2006 recently sold for $425,000. One acre homesites in North Rim on Awbrey Butte that were listed at around $700,000 are now selling for around $300,000. Lots in unfinished subdivisions are selling at really low prices. 53 lots sold in the $20,000 - $30,000 price range.

Bend's Best Buys - Pronghorn Estate Home $844,000

Cheri Smith (Total Property Resources) — Fri, 16 Oct 2009 12:16:22 -0500

This Italian inspired home in Pronghorn was originally listed at $2,695,000 in May 2008. It features a gourmet kitchen with Amarillo Pearl granite, off-white cabinetry, bronze fixtures, travertine tile, wine storage and an adjacent formal dining room. The great room has exposed beams, a gas fireplace with adjacent built-ins, and beautiful chandeliers. The spacious outdoor living area has a large courtyard and a fireplace. The Separate Casita will make your guests feel right at home. The 1 acre lot alone sold for $540,000 in 2006. Now this 4 bedroom, 4.5 bath, 4664 sq. ft. home is available for $844,000. It is a short sale.

Bend Real Estate Statistics September 2009

Cheri Smith (Total Property Resources) — Mon, 05 Oct 2009 09:34:43 -0500

During the month of September there were 1543 homes for sale, 264 contingent sales, 328 homes pending, and 173 homes sold. Sales were up in September compared to August but the number that really stood out to me was the number of homes pending. Pending sales are way up. I think it's probably first time buyers trying to close in time to get the $8000 tax credit. Most of the pending sales are in the $200,000 - $250,000 price range and within that range, the majority actually fall between $200,000 - $225,000. However, pending sales over $500,000 are also up. In August, there were 21 pending sales over $500,000. In September, there were 42. When you look at the chart below, know that active listings did not decrease by 200 from July to August. I recently changed the way I calculate the active listings so that time shares and manufactured homes being sold without land are no longer included.

	Active	Cont.	Pending	Sold
September	1543	264	328	173
August	1546	236	211	153
July	1751	238	275	184
June	1749	236	297	158
May	1829	205	242	138
April	1825	171	232	119

A lot of buyers right now have a hard time accepting that it's possible to pay full price for a home and still be getting a good deal. Sometimes it takes writing a few low offers and missing out on homes in multiple offer situations for that to click. I've worked with several first time buyers recently and all were looking at homes priced at $150,000 or less. This is a hot price point right now. Multiple offers in the first couple of days on the market is the norm. When my clients ask me what they should offer, I provide them with info on recent sales and say, "Someone is going to write a full price (or higher) offer for this home and get it. Do you want it to be you or one of the other buyers?"

One of my favorite sales statistics is the average % of list price received. This shows how the sales price compares to the list price. For the month of September, homes that sold in the first 30 days after being listed sold on average for 104% of the list price. Yes, you read that correctly. On average, homes that sold within 30 days of being listed sold for more than the list price. Homes that sold after 31-60 days on the market sold for 99% of list price. If I focus on the hottest segment of the market, which is homes priced at $250,000 or less, it's 105% in the first 30 days, 103% after 31-60 days, and 97% after 61-90 days on the market.

Here are the complete statistics for the month of September: September 2009

I thoroughly enjoy running statistics so If you're curious about sales in a particular neighborhood or price range, send me an email. I'm happy to look at anything.

Almost Famous - My Guest Appearance on OPB Radio

Cheri Smith (Total Property Resources) — Wed, 30 Sep 2009 13:46:22 -0500

I'm a very regular listener of OPB radio. My radio alarm clock is set to OPB and it's a programmed station in my car. Button number 1 in fact. As you can imagine, I was more than flattered when the executive producer of Think Out Loud, Sarah Rothenfluch, called me to invite me to be on the show as a guest. The topic was "Home Buying" and the $8000 tax credit for first time buyers. She called yesterday at 3:00pm to see if I could be on the show this morning at 9:00am. First I felt flattered, then incredibly nervous. That's not much time to prepare! She asked me a few questions over the phone then told me I'd be asked pretty much the same questions on the show. That gave me some confidence. I thought I handled the questions over the phone pretty well, and I'd have a little more time to prepare before the show.

When they called this morning, I went back to nervous. I was on the show via telephone. I sat in my office with the door closed while the rest of the agents in my office sat in the reception area and listened to me on the radio. Turns out, all of the questions Emily Harris asked were completely different than the questions I was asked on the phone. I really didn't feel prepared at all, but I survived. After they thanked me for being on the show and I hung up, my husband called to congratulate me. I could hear chatter outside of my door but I couldn't quite hear what they were saying. I opened my door and saw smiling faces and heard lots of applause and Well Done! Nice Work! etc. I breathed a huge sigh of relief. I did it. I really can't remember what I said because I was so nervous but I remember at least having an answer to all but one of the questions, which I do have an answer to now, and it's no. I'm still not brave enough to listen to the show online but if you want to, here's the link:

http://www.opb.org/thinkoutloud/shows/home-buying/#slakr007-09-30-09-10-23

Bend Real Estate Statistics August 2009

Cheri Smith (Total Property Resources) — Mon, 21 Sep 2009 17:28:22 -0500

There are currently 1546 active listings, 236 contingent sales, 211 homes pending, and 153 homes sold in August 2009. The median sales price is $225,000. I think it’s interesting that there are 326 homes for sale under $200,000 yet that’s not the most active segment of the market. The majority of the sales are over $200,000. Affordability is an issue in Bend. Now we have homes available for less than $200,000 but buyers are focusing on the higher priced homes. We even have about 100 homes for sale under $150,000.

Of the active listings, 86 are bank owned and 309 are short sales. Of the pending sales, 62 are bank owned (30%) and 40 are short sales (19%). Roughly 50% of pending sales are distressed sales. Of the homes that sold in August, 56 were bank owned (36%) and 26 were short sales (17%). Roughly 53% of the sales in August were distressed sales.

Some people like to gauge the market in terms of months of inventory. When the market is viewed this way, certain price ranges are doing much better than others.

Under $250,000: 470 active listings/88 sales = 5 months inventory

$250,000 – $500,000: 582 active listings/50 sales = 11 months inventory

$500,000 – $1million: 359 active listings/13 sales = 27 months inventory

Over $1million: 135 active listings/2 sales = 67 months inventory

While the number of sales in August 2009 is up compared to August 2008 (when just 117 homes sold) the current median sales price of $225,000 is down from $282,900 in August 2008.

If you’re a first time buyer, there are only 70 days left to take advantage of the $8000 tax credit. Remember, you must close on the purchase of a home by November 30, 2009.

View the complete statistics: August 2009 Statistics

Bend's Best Buys - West Side Remodel (Now Pending - 9/2/09)

Cheri Smith (Total Property Resources) — Wed, 26 Aug 2009 16:47:35 -0500

(Now Pending - 9/2/09) This new listing caught my eye since I drive by this house regularly. It's located at the corner of 14th and Jacksonville on the west side. This 3 bed/2 bath, 1830 sq. ft. home was built in 1919 but recently remodeled. Some of the upgrades include granite counter tops, alder cabinets, distressed hickory and tile flooring, and a wood burning fireplace in the living room. The large lot is beautifully landscaped. This is a great location between Newport Ave. and Galveston Ave. and just a few blocks from the river.

New West Side Modern Home in Bend (Already Pending - 9/3/09)

Cheri Smith (Total Property Resources) — Wed, 26 Aug 2009 16:44:17 -0500

(Sale Pending - 9/3/09) When this brand new modern home first hit the market at $219,900 I planned to write a blog post about it but it went pending after about a week on the market. It's back on the market with a new price - $199,900. The home has 2 bedrooms/2 baths, and 952 square feet. It does not currently have a garage but the seller has the plans for a 2-car garage and is willing to build it at cost. The home is located at 1405 NW Ithaca Ave. It is not a short sale or bank owned.

Prices Reduced @ 919 Bond St. Condos in Bend

Cheri Smith (Total Property Resources) — Wed, 26 Aug 2009 16:24:49 -0500

There are currently 4 condos on the market in the 919 Bond Building. The last time I wrote about these modern condos downtown I remember a list price of $1,500,000. They've had price reductions since then but most recently the prices were reduced from $1,100,000 to $825,000. One of the condos is listed at $849,000.

The floor plans include:

2 bedroom/2.5 bath with 2130 sq. ft. for $825,000

2 bedroom/2.5 bath with 2241 sq. ft. for $849,000

3 bedroom/3.5 bath with 2561 sq. ft. for $825,000

2 bedroom/2.5 bath with 2805 sq. ft. for $825,000

The interiors vary from condo to condo but most have CeasarStone countertops, Viking appliances, bamboo wood floors, Anegre/Wenge cabinetry, cut pile wool carpet in the bedrooms, in-floor heat in the master baths, air conditioning, floor to ceiling slider doors, built in BBQ, double sided fireplace, two master suites, wet bar, and come wired for stereo & security. Also included are two parking spaces in a covered secured lot, storage unit, & 2 ski lockers. Some have city and easterly views and others have Cascade Mtn. views.

Bend's Best Buys - Mill Quarter Townhome

Cheri Smith (Total Property Resources) — Thu, 06 Aug 2009 20:09:57 -0500

This Mill Quarter townhome is located in the heart of Bend between downtown and The Old Mill District, perfect for a buyer that wants hip, urban living. The exteriors were inspired by east coast brownstones and the interiors have a modern, industrial style, complete with brick, steel, and concrete. The ICF (insulated concrete form) construction offers energy efficiency and soundproofing. The interior finishes include cork and concrete flooring, granite and tile countertops, dumb waiter, and stainless steel Viking appliances. This townhome is 1822 sq. ft. with 3 bedrooms/3 baths and is offered at $455,000. It's priced as well as a bank owned Mill Quarter townhome that sold earlier this year for $450,000.

Bend Real Estate Statistics July 2009

Cheri Smith (Total Property Resources) — Wed, 05 Aug 2009 18:24:04 -0500

Of the 184 homes that sold in July, 57 were bank owned and 40 were short sales. Distressed sales made up nearly 53% of the home sales in July. Of the 275 homes pending, 142 are short sales or foreclosures (52%). Of the 1751 homes for sale, 397 are distressed (22%). The average days on market before selling was 229 for the short sales, 134 for the bank owned homes, and 144 for traditional sales. If you're a first time home buyer hoping to take advantage of the $8000 tax credit, this is important to think about.

In order to get the credit you must close on the purchase of your home before December 1, 2009. With the average days on market for short sales at 229, if you're considering purchasing a short sale but haven't already written an offer, it might be too late. Even with foreclosures and traditional sales, you might not have as much time as you think. Multiple offers are very common right now with well priced homes. It's not out of the question to think that you might have to submit 2-3 (or more) offers before one finally gets accepted. Many buyers in the lower price ranges have been beaten out numerous times by higher offers or cash offers with a quicker closing date. If the $8000 tax credit is important to you, don't wait until the last minute to start making offers. You'll need a minimum of 30 days to close, and with lending guidelines becoming stricter, it could even be 45 days.

July 2009 Real Estate Statistics

One of my pet peeves - Bad MLS photos

Cheri Smith (Total Property Resources) — Mon, 03 Aug 2009 17:00:16 -0500

If your home is currently for sale and you have it listed with a real estate agent, do yourself a favor and either pull up your listing on the public MLS site, Realtor.com, etc. or ask your agent to email you the client detail for your home. It's really important that you know how your agent is marketing your home and that you know what home buyers see when they view your home online. Nearly 90% of home buyers are using the internet to shop for homes. The National Association of Realtors asked those internet home buyers which features they found most valuable and 83% said high quality photos. I'll say it again; 83% said high quality photos. Please explain to me then why I find appalling photos like these in the MLS? Make sure to click on the photos to enlarge them and see how bad they really are.

I don't even know what they're trying to say with this photo.

Plenty of counter space and ample storage?

Great yard for dogs, kids, and outdoor entertaining. If the yard looks this bad, don't include a photo.

Nice wall. Does your client come with the house?

Spacious laundry room? Washer/dryer not included?

The absolute worst. This home has been on the market 192 days and still no photos.

These are just photos I came across today while browsing new listings, price reductions, etc. Perhaps I shouldn't judge. Maybe these homeowners told their agent that they really don't want the house to sell so please make it look as bad as possible so we don't have to be bothered with any showings. Another pet peeve is spelling mistakes in the marketing remarks and photo captions. I totally get that a lot of people out there are not good spellers. Please use spell check then, or ask someone in your office to proof read for you. The following photo captions were all included in the same listing. 5 out of the 10 photos had spelling mistakes or typos. Large Corner lot. Comcplete with the white pickit fence. New laminate florring thrughout. Decorater colors. Remoldeled bathroom. Master sweet.

I vow to keep a file with bad MLS photos and I will be updating periodically.

Newly Listed - Green and Modern Home in NW Bend

Cheri Smith (Total Property Resources) — Fri, 31 Jul 2009 12:49:43 -0500

1495 NW Quincy Ave. recently hit the market and, sigh, I am in love. This green and modern home was built in 2007 and features 3 bedrooms/2.5 baths, 3992 sq. ft., and sits on a 0.32 acre lot in the West Hills of Bend. The main level has a great room floor plan, master suite, powder room, and dedicated office with a separate entrance. The lower level has 2 additional bedrooms, a bathroom, family room, and bonus room. Some of the green features include:

Structural Insulated Panel (SIP) construction and passive solar design.
Solar panels with inverter provide electricity for the home with excess being sold back to the power company.
Solar hot water system with tankless water heater and recirculating pump.
Insulation in interior walls and floor is from 100% recycled post-consumer products.
Wood floors are reclaimed and salvaged wood. Carpet is 100% wool.
Local, sustainably harvested wood was used in the millwork, trim, and built-in storage. Low formaldehyde kitchen and bathroom cabinets.
Xeriscaped front yard and extensive use of native, drought-tolerant plants.

Some additional features you'll love:

Entire house is wired with Cat 5 cable, built-in speaker system for surround sound, and pre-wired for security system.
Commercial-grade stainless steel appliances, European-style flush front kitchen cabinetry, and stainless steel topped kitchen island.
Gated RV parking area.

Home is not listed by agent presenting the information.

Valhalla Heights Neighborhood in Bend, OR

Cheri Smith (Total Property Resources) — Fri, 31 Jul 2009 11:12:26 -0500

When I work with buyers moving to Bend from out of the area, particularly from larger cities, they are usually drawn to NW Bend because of the privacy provided by lots of trees and larger lots. One neighborhood that fits the bill is Valhalla Heights. Valhalla Heights is located where Mt. Washington Dr. meets Shevlin Park Rd., making it close to downtown and the Newport Ave. hub, which has coffee shops, restaurants, and Newport Market grocery store. It's also very close to Shevlin Park, a mostly undeveloped park popular with hikers, joggers and mountain bikers because of the extensive trail system and Tumalo Creek, which runs through the heart of the park.

Most of the homes in Valhalla Heights were built in the late 1970's and 1980's and many of them have been nicely remodeled. You'll even find a few newer homes that were built in 2004-2008. The average lot size is roughly 0.25 acre (about 11,000 sq. ft.) and most homes are surrounded by mature Ponderosa Pines. Home prices in Valhalla Heights currently range from $259,000 - $525,000. Schools in this part of Bend are High Lakes Elementary, Cascade Middle School, and Summit High School. There are CCR's but no Home Owner's Association

$259,000 2424 NW Marken St. - 4 beds/4 baths, 2553 SF, 0.3 acre lot, built 1980

$275,000 2621 NW Marken St. - 3 beds/2 baths, 1661 SF, 0.3 acre lot, built 1980

$395,000 2534 NW Torsway St. - 3 beds/2 bath, 1996 SF, 0.26 acre lot, built 1995

$424,000 2716 NW Nordic Ave. - 3 beds/3 baths, 2360 SF, 0.22 acre lot, built 2002

$439,000 2351 NW Torsway St. - 4 beds/3 baths, 3210 SF, 0.28 acre lot, built 1981

$475,000 2650 NW Nordic Ave. - 3 beds/2.5 baths, 2433 SF, 0.18 acre lot, built 2004

$476,500 2461 NW Marken St. - 6 beds/5.5 baths, 4292 SF, 0.19 acre lot, built 2006

$525,000 2463 NW Marken St. - 4 beds/2.5 baths, 2892 SF, 0.52 acre lot, built 1985

Here's a bird's eye view of the neighborhood from bing.com (click to enlarge).

Bend Real Estate Statistics June 2009

Cheri Smith (Total Property Resources) — Fri, 24 Jul 2009 19:48:40 -0500

To summarize, there are 1789 homes for sale, 236 contingent, 297 pending, and 158 homes sold in June. In the MLS, when I run the stats for more than one type of property (residential, multifamily, etc) it doesn't allow me to choose a residential subtype (townhome, manufactured, etc.) and it automatically includes properties like time shares and manufactured homes being sold without the land. I don't like to include those properties in my statistics so this time I ran the residential statistics separately from the multifamily and farms so I could eliminate the time shares and other subtypes. That's why it looks like there are fewer homes on the market. There are actually 1850 properties for sale, including time shares, etc. Here's how June compares to previous months:

May 2009: 1829 for sale, 205 contingent, 242 pending, 138 sold.

April 2009: 1825 for sale, 171 contingent, 232 pending, 119 sold.

March 2009: 1834 for sale, 129 contingent, 203 pending, 110 sold.

The median price for the active listings is roughly $350,000. There are 876 homes for sale under $350,000 and 873 homes for sale over $350,000. However, the majority of the sales are under $350,000. 80% of the sales (127 homes) were under $350,000 and 20% of the sales (31 homes) were over $350,000. Although a lot of buyers are excited that decent homes are now available for around $150,000 most of the sales were in the $200,000 - $250,000 price range.

I recently had the pleasure of backing up everything on my computer and reinstalling Windows Vista. Since then I haven't reinstalled Adobe Acrobat and I'm not able to create PDF files. Click on the thumbnail version of the stats and it should open up in a new window. From there you should be able to zoom in. If you have trouble, send me an email and I can give you the excel file. You can also try this link:

http://buyinbend.files.wordpress.com/2009/07/june-20092.gif

The Lowest Priced Homes in Bend, Oregon

Cheri Smith (Total Property Resources) — Thu, 23 Jul 2009 20:08:15 -0500

These are currently the lowest priced stick built homes (not manufactured) on the market in Bend. Some of them need repairs but others are move in ready. I mentioned the FHA 203K rehab loan in a previous post and some of these homes would be perfect candidates. For qualifying buyers, this particular loan allows you to finance the cost of home repairs in your loan.

$85,000 - 3 bedroom/1.75 bath, 1176 sq. ft. home in SE Bend. This home is zoned RM and currently rents for $900/month. It's a short sale.

$89,000 - 3 bedroom/1.5 bath, 1360 sq. ft. home on a 0.21 acre lot, close to Juniper Park in NE Bend. Bank owned.

$89,500 - 1 bedroom/1 bath, 576 sq. ft. home in Deschutes River Woods on a 0.84 acre lot. This home is not quite finished inside. Not a short sale or bank owned.

$93,500 - $100,000 There are several newer homes for sale in the Cascade View Estates neighborhood near the Old Mill District in SW Bend. These homes have 3 bedrooms/2 baths and range from 1148-1235 sq. ft. These are currently renting for about $800/month. All are currently short sales.

$105,000 - 3 bedroom/2 bath, 1476 sq. ft. home in NW Bend. It's a newer home but it needs some TLC. Bank owned.

$107,217 - 1 bedroom/1 bath, 768 sq. ft. home in NW Bend just off Newport Ave and close to downtown. Bank owned.

Include Your Remodeling Costs In Your Loan

Cheri Smith (Total Property Resources) — Wed, 15 Jul 2009 16:03:10 -0500

With homes prices down, many people that couldn't afford to purchase a home a few years ago can now. One of the challenges my clients and I are running into is a good majority of the homes in the $100,000 - $150,000 price range need a lot of work. When you can only afford to spend $125,000 on a home, chances are you don't have an extra $10,000 in the bank to pay for the improvements that are necessary. Fortunately, the FHA 203k loan can help with this.

Dave Woodland with Signet Mortgage in Bend shared some of the details of this loan. With a down payment as low as 3.5%, a home buyer can finance the cost of the improvements into a 30-year fixed rate home loan. The mortgage amount is based on the projected value of the property after the work is completed. The improvements can be major, like a kitchen or bathroom remodel, new roof, or can be used for appliances or cosmetic fixes like painting. You can hire a contractor to do the work or tackle it yourself if it's determined that you are qualified.

I can't tell you how many homes I've seen lately that have been stripped of appliances and fixtures, vandalized, or could be great properties with a little (or a lot) of TLC. This is a wonderful loan program for those properties. If you'd like too take advantage of this loan program, Dave has the details. Send him an email dave@signetmortgage.com or give him a call at 541-318-0888. If you'd like a list of properties that could use a little love, please contact me at csmith@total-property.com or 541-788-8997.

April 2009 Real Estate Statistics

Cheri Smith (Total Property Resources) — Tue, 19 May 2009 13:30:24 -0500

I would like to thank all of you that actually read my blog and website for these statistics. I received several emails from people wondering when the statistics would be available. Sorry for the delay. Between weddings, work, and training for the Pole Pedal Paddle (my team took 3rd!) I've been busy, but here they are.

April 2009 Real Estate Statistics

I'm seeing two distinct real estate markets in Bend. One is the foreclosure market, the other is everything else. I'm working with a few buyers right now that are interested in purchasing bank owned homes and I can't tell you how many times we've run into multiple offers on homes they were interested in. There was a home in The Parks at Broken Top that was listed in the morning and by the afternoon they had 7 offers. It was listed at $270,000 and sold for $285,000. There was another home in Skyliner Summit that I showed and they had already submitted 2 offers to the bank but neither of them had been accepted yet. We submitted an offer but the bank accepted one of the other offers before they had a chance to review ours. That home was shown 36 times in the first week it was on the market.

If you're interested in bank owned properties, you have to be ready to submit an offer as soon as it hits the market. Get preapproved for a loan before you even start looking. The banks will require that you include a preapproval letter with your offer. Make sure your agent calls the listing agent to check on the status before you look at bank owned homes. You'll want to know if any offers have been submitted and also if there are any issues with the home. Many bank owned homes have problems like water damage from frozen pipes. You can find great deals but you have to be ready to act quickly.

You should NOT be paying to search for foreclosures. Many websites out there require you to pay to view their list of foreclosures. Contact me or any Bend real estate agent you know and request a list of foreclosures. Banks list these home through Central Oregon Realtors and they are in the MLS.

Bend Real Estate Statistics March 2009

Cheri Smith (Total Property Resources) — Tue, 14 Apr 2009 13:47:03 -0500

Better late than never eh? There are currently 1834 homes on the market, 129 are contingent, 203 homes are pending, and 110 homes sold in March. The majority of home sales were in the $150,000 - $300,000 range. One big change was that 11 homes sold over $500,000 compared to only 4 in February. Of those sales over $500,000 2 were bank owned and 3 were short sales. Of the 64 homes that sold in the $150,000 - $300,000 price range, 32 were bank owned or short sales.

Although the great deals right now are the foreclosures, if you look at the sales price versus list price, the average was 95%. That means the discount is really in the list price. Although I have seen some sell in the 80% of list price range, once a bank owned home is listed, they are typically getting 95% or more of the list price when it sells. Some are even selling at 100% of the list price. Here are some randomly chosen examples:

A 1933 square foot home with 3 beds/2.5 baths was listed at $179,900 and sold for $175,000 (97.28%).

A 2156 square foot home with 4 beds/2.5 baths was listed at $224,900 and sold for $210,000 (93.37%).

A 2170 square foot home with 3 beds/2.5 baths was listed at $195,900 and sold for $170,000 (86.78%).

A 1763 square foot Bluffs townhome with 3 beds/3 baths was listed at $282,000 and sold for $282,000 (100%).

I wouldn't let these numbers dissuade you from making a low offer because you never know what the bank's bottom line is. The home you like could be one that ultimately sells for 82% of the list price.

Let's move on to home values. The median home price is currently $224,750. One of the toughest things for sellers today is accepting that their home is worth less than they paid for it. Here's some perspective on median home prices:

Median sales price in March 2008 - $289,900

Median sales price 2008 - $289,900

Median sales price 2007 - $345,000

Median sales price 2006 - $353,286

Median sales price 2005 - $280,966

Median sales price 2004 - $230,000

Median sales price 2003 - $197,000

The median home price can be misleading because it's really a reflection of the types of home that are selling. Since the majority of sales are occurring below the $300,000 price point, it skews the median sales price downward. Furthermore, I can break the numbers down to specific areas in Bend (NW vs. NE) and get completely different numbers. Overall, it's as if our real estate boom never existed. If you bought your home in 2004 or later, any appreciation you had is probably gone if you didn't sell your home at the peak.

View the March 2009 Real Estate Statistics here: March 2009 Real Estate Statistics

Update on the Homeowner Affordability & Stability Plan

Cheri Smith (Total Property Resources) — Wed, 11 Mar 2009 21:05:20 -0500

The Making Home Affordable plan is part of President Obama's strategy to get the economy and housing market back on track. It is estimated that this plan could help up to 9 million homeowners avoid foreclosure. On March 4, 2009 the Treasury Department released detailed guidelines of the plan. I am summarizing what I think are the key components from the Treasury Department's website. For more information, click on the following links:

Making Home Affordable Q&A

Making Home Affordable Fact Sheet

Making Home Affordable Summary

Eligibility Self Asssessment Tool

The 3 main elements of the plan include:

1. Home Affordable Refinance Program - Under this program eligible borrowers may refinance loans that the GSEs (Fannie & Freddie) own or guarantee, which amounts to about half of all outstanding mortgages. Currently the refinance option is only available for conforming loans owned or securitized by Fannie Mae and Freddie Mac. The owner must be current on their mortgage payments, the property must be owner occupied, the borrower must have sufficient income to support the new mortgage debt, and the first mortgage may not exceed 105% of the current market value of the property. For example if the property is worth $200,000, the borrower must owe $210,000 or less on their first mortgage. If you also have a second mortgage and your total debt exceeds 105% of the current market value, you may still be eligible for a refinance on your first mortgage if the second mortgage holder agrees to remain subordinate to the new first mortgage.

To find out if your loan is owned by Fannie or Freddie, you can call these numbers or visit these websites:

For Fannie Mae: 1-800-7FANNIE (8am to 8pm EST) www.fanniemae.com/homeaffordable

For Freddie Mac: 1-800-FREDDIE (8am to 8pm EST) www.freddiemac.com/avoidforeclosure

2. Home Affordable Modification Program - This $75 billion program provides loan modifications at no cost to borrowers who are at risk of default or already in default, and are experiencing a hardship. Loans eligible for the modification program include most conventional loans: prime, subprime, adjustable, loans owned by lenders and loans in securities. The borrower must be an owner-occupant in a one to four unit property, have an unpaid principal balance that is equal to or less than $729,750 (for one unit properties and higher for two to four unit properties) a loan that was originated before January 1, 2009, a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31% of the borrowers' gross monthly income, and have experienced a significant change in income or expenses, to the point that the current mortgage payment is no longer affordable.

In most cases, the modification will be accomplished by an interest rate reduction to as low as 2% if necessary. One of the goals is to get the borrower's debt to income (DTI) ratio down to 31%. Borrowers will get a three month trial modification and if they remain current on their payments after the trial period, their loan servicer will execute a modification agreement. If the modified interest rate you are given is below the current market rate, your rate will be fixed for a minimum of 5 years. On the 6th year, your rate may increase no more than 1 percentage point per year until the rate reaches a cap equal to the market interest rate on the date the modification is finalized.

In certain cases, a rate reduction might not be enough to get the borrowers DTI ratio down to 31%. In those cases, the loan servicer can extend the amortization period (i.e. a 40 year loan term rather than a 30 year loan term). If that still doesn't do the trick, the lender must forbear principal. In this situation, you can certainly expect a ballon payment in the amount that was deferred when you sell the house, pay off the loan, or refinance in the future.

3. Supporting Low Mortgage Rates by Strengthening Confidence in Fannie Mae and Freddie Mac - in other words, we're giving Fannie and Freddie more money. The goal of this portion of the plan is to provide liquidity, stability and affordability to the housing market.

There is a lot of great information available about these refinance and modification plans and I have only provided a summary. Please do your homework and if you think you might qualify, start gathering the information your lender will need to make a determination about your eligibility. Call your lender and ask about the Home Affordable program.

Bend Real Estate Statistics February 2009

Cheri Smith (Total Property Resources) — Wed, 04 Mar 2009 15:18:01 -0600

There are currently 1832 homes on the market in Bend. In February 76 homes sold, 171 are pending, and 94 are contingent. Of the 1832 homes for sale, 372 are short sales or foreclosures assuming the listing agent coded the house correctly in the MLS. Since I know that at least one of the sales in February was bank owned and it was not coded that way, I'm sure there are more than 372 distressed properties on the market.

The trend continues with the high end market being very slow. Again, there wasn't a single sale over $700,000. There were 4 sales over $500,000 and the winners are:

$699,000 - 3249 square foot home in Broken Top built in 2006. It was a short sale.

$600,000 - 3113 square foot home in the Fall Creek neighborhood of Broken Top built in 2002. It was bank owned.

$550,000 - 2700 square foot home on 5 acres with Cascade views and irrigation. It was not a short sale or bank owned.

$515,000 - 3600 square foot home in River Rim. The agent did not disclose whether it was a short sale or bank owned but the home was sold AS-IS at $142/square foot and the lockbox code was an REO related phrase. Hmmmm.

4 of the 5 homes that sold in the $450,000 - $500,000 price range were short sales or bank owned. Of the distressed sales, two were in Northwest Crossing, one was in Shevlin Crest, and one was a home on acreage north of Tumalo.

The lowest price/square foot was a Mt. Bachelor Village condo that sold at $58.63/square foot. The second lowest was a single family home in Forum Meadows that sold at $78.67/square foot.

There is still a pretty large misconception that with bank owned properties, you can write a low ball offer and easily get it accepted. Let's say a home is bank owned and listed at $500,000. I can almost promise you (almost) that you're not going to be able to buy this home for $300,000. Typically the list price is very close to their bottom line. In fact, if you look at the list price versus sales price, on average, the bank/seller is getting 96% of the list price. So that $500,000 home could more realistically be purchased for $480,000.

Furthermore, foreclosures are not always the best deals in a particular neighborhood. Northwest Crossing is a perfect example. The price/square foot of some recent bank owned sales were $208/SF, $210/SF, and $220/SF. The price/square foot for some non-bank owned sales in NWX were $149/SF, $176/SF, and $179/SF. Many homeowners that bought well before 2005 probably have a bit of equity in their homes and can afford to list at very competitive prices. If someone bought an 1800 sq. ft. home in 2006 for $400,000 and someone else bought an 1800 sq. ft. home in 2002 for $250,000 and both need to sell today, the person that bought in 2002 can list their home at a really low price without having to do a short sale. If you're looking for a great deal, don't think that you have to focus on foreclosures. Ask an agent to show you the best priced homes in your price range. You might get lucky and find a motivated seller that's even willing to make a few repairs on the home, rather than buying an AS-IS foreclosure that was trashed when the owners moved out.

View the complete real estate statistics here: February 2009 Real Estate Statistics

Amazing Opportunities at Shevlin Reserve - Modern Townhomes

Cheri Smith (Total Property Resources) — Fri, 27 Feb 2009 20:27:23 -0600

Shevlin Reserve, which features 12 sleek and sophisticated modern, single-level townhomes in NW Bend, now has 4 bank-owned townhomes available ranging from $350,000 to $595,000. That's great news for buyers but bad news for owners that paid nearly $900,000. Modern design typically strives to integrate the indoor and outdoor environments and Shevlin Reserve does just that. The single level townhomes have a low profile and are situated on larger lots. They feature modern and sustainable touches like concrete radiant heat floors, wool carpet, stainless steel countertops in the kitchen, floating cabinets, Italian light fixtures, and a wall of 23 foot tall windows in the living room that open onto the outdoor living area via German engineering. Some of the townhomes have Cascade Mountain views.

Here's the catch (ah, you knew it was too good to be true didn't you) - 3 of the townhomes are not finished. There are 2 listed at $350,000 and they are far from being complete. They are framed and the windows are in but if you require much more than that to live happily you'll have some work ahead of you. These are the 2341 square foot floor plan with 3 bedrooms/2.5 baths. You can bring your own builder/contractor to finish the job or the bank has someone that can finish them. A third townhome, listed at $595,000, is nearly finished. When I visited, most of the cabinets, sinks, and flooring were in and the appliances were in the garage. The 4th townhome is completely finished. The 3rd and 4th townhomes are the 1801 square foot floor plan with 2 bedrooms/2.5 baths.

There is another great deal at Shevlin Reserve listed at $519,000. It's the 1801 square foot floor plan and it's completely finished. The owner just wants to sell and sell quickly. He paid much more when he bought it in 2006 but he owns it outright so you get the satisfaction of a short sale deal without all the hassles of a short sale. This townhome has walnut floors and the darker cabinets so the interior feels very warm. It also has Cascade Mountain views.

Shevlin Reserve townhomes are located off of Shevlin Park Rd. in NW Bend.

Help for Homeowners Through Loan Modification & Payment Reduction

Cheri Smith (Total Property Resources) — Wed, 18 Feb 2009 17:17:19 -0600

Yesterday President Obama signed the American Recovery and Reinvestment Act into law. That act includes the Homeowner Affordability and Stability Plan, which could be a very positive thing for the housing market. After a quick scan of the Executive Summary and Q&A, I think it looks great. Some of the highlights include:

1. Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices.

2. Create A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners.

3. Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac.

So what does all that mumbo jumbo really mean and how might it help you if you're a homeowner struggling to make your payments? Here is some additional information from the White House Q&A.

If you are current on your mortgage payments: The objective of the Homeowner Affordability and Stability Plan is to provide creditworthy borrowers who have shown a commitment to paying their mortgage with affordable payments that are sustainable for the life of the loan. Eligible borrowers who stay current on their mortgages but have been unable to refinance to lower their interest rates because their homes have decreased in value, may now have the opportunity to refinance into a 30 or 15 year, fixed rate loan. Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments. Refinancing will not reduce the amount you owe to the first mortgage holder or any other debt you owe. However, by reducing the interest rate, refinancing should save you money by reducing the amount of interest that you repay over the life of the loan.

If you are behind on your mortgage payments: The primary objective of the Homeowner Affordability and Stability Plan is to help borrowers avoid foreclosure by modifying troubled loans to achieve a payment the borrower can afford. Lenders are likely to lower payments mainly by reducing loan interest rates. However, the program offers incentives for principal reductions and at your lender's discretion modifications may include upfront reductions of loan principal. By providing mortgage lenders with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage. In addition, the plan provides incentive payments to the borrower if they make timely payments on the loan once it has been modified. The incentive will accrue on a monthly basis and will be applied directly to reduce your mortgage debt. Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.

If you think you might qualify and would like to take advantage of this modification program, you'll need to gather information for your lender, including:

Your montly gross income (from pay stubs, etc.)
Most recent income tax return
Information about any second mortgage on the house
Payments on each of your credit cards (if you have balances)
Payments on other loans such as student loans and car loans

Complete eligibility details will be announced on March 4th, 2009 when the program starts. Mortgage lenders will begin accepting applications after that. Only the mortgage on your primary residence is eligible for modification. Mortgages on second homes or investment properties are not eligible. Mortgage companies are not required to participate in this program but because the government is offering incentives, it is expected that most major lenders will participate.