The Salem Oregon Real Estate News

Custom Property Blog Sites

2008-07-03T00:17:25Z

If you are selling your home, you want every marketing advantage that you can find. Print media is expensive and the effectiveness is difficult to track. With homes taking longer and longer on the market to sell, print media can eat up an advertising budget very quickly.

Custom property websites are not a big secret. They have been out for a while. I had it in my business plan to incorporate them into some listings this year to see what kind of results I would get for my sellers.

Now Lane Bailey, did a really great property blogsite that cost him about $1500. That home is a luxury home which allows for a luxurious blogsite. Not all homes can afford that kind of advertising. He used WordPresswhich has several good templates for blogs.

I have always used Blogger, and did my blogsites from there. It is very intuitive and super easy to use.

I have three such listings that needed a more nitty, gritty and yes significantly cheaper version of Lane's site. I also couldn't spend the 20 hours or so creating it, that Lane did for his client.

So for $10 and about 4-6 hours worth of work, I created simple custom blogsites for my clients.

5120 Hill Villa

38808 Main St

4307 Rogets

I installed statcounter on all of these blogs and promote the property website everywhere. Each site has had between 200-500 views within the first 30 days of listing. If you want an excellent way to promote the sale of your home during this challenging market, this is one way to make it stand apart.

Sellers, with the market being as challenging as it is, make sure you hire an agent trying innovative marketing tools to market your home.

South Central Neighborhood Association (SCAN) in Salem Oregon

2008-07-03T00:10:44Z

Salem has 19 neighborhood associations within it's confines. The South Central Association is located just south of the downtown area and includes the Bush park and Fairmount Hills Neighborhoods.

This area has access to good parks, and is close to downtown for residents that want to head to the main city library or to Bentley's for a good meal.

4 parks are within the associations boundaries including Pringle Creek Park, Fairmount Park, Bush Pasture Park, and Gilmore Field.

Bush Park holds the annual art festival which draws thousands of people. Bush Park has several events that occur throughout the year.

Residents of this neighborhood association are very active and have worked with the city to improve the parks within it's boundaries. Their newsletter is available online.

Homes within the confines of the South Central Neighborhood Association are varied in architecture and price. Fairmount Hills and Bush Park tend to have more expensive homes, but as you head farther south, the homes become more affordable.

The South Central Neighborhood Association meets montly at South Salem High School. If you are interested in learning more about the types of homes available in this neighborhood, just email me (melina@tomsonburnham.com).

Photo Courtesy of Mr. Thomas

Dear Mr. Top Producer

2008-06-27T13:32:39Z

Dear Mr. Top Producer since 1990,

I want to thank you for following up with for your sellers with a somewhat desperate call to me for feedback from my showing of your listing.

It's nice to know that you mentioned in the voice mail 3 times that you really wanted pricing feedback, but it would be okay if I gave you other feedback, if I wanted. I imagine that is how you got your top producer status, knowing how to price a home well.

As you know I am nice and provide feedback when I can, as I would hope you would do for me. Being busy I just shot you off an email letting you know, what you really already knew, is that the home is overpriced.

We looked at 15 homes and picked the one that was in better condition and priced well.

Now...normally things would end there, but I need to let you know that your email reply back of

Hi Melina,

Thanks for the feedback. What would uou suggest the price needs to be to get it sold.

is not really commensurate with you self proclaimed Top Producing Status. Is this how you Top Produce? Getting other agents to help you price your home correctly? See I'm not a top producer (whatever that means) and so I'm confused.

While I am nice and cooperate when I can, please understand that you and I are competitors. Since you are a principal broker and a top producer, I would expect you to be quite knowledgeable. I bet you have sold more homes than I have with that Top Producer Status of yours.

Anyway, I just wanted to let you know that if you want me to discuss with you about how to price your listing, give me a call about my hourly rates for consultation. I'd be happy to do a CMA for you and get you out of your jam.

Sincerely,

Melina Tomson, just a sole practitioner broker knowledgeable about how to buy and sell homes in Salem Oregon and who doesn't top produce anything...

Handling the strain...real estate therapy 101

2008-06-26T22:40:31Z

Paul Slaybaugh recently wrote a post. You all can go and read it. It's a good post as usual. A couple of days later, I had some floundering clients that inspiried me to write this post. These events did bring up for me the issue of mental health, stress, and real estate.

In my previous life, I was a child and family therapist. I worked with families who were in danger of having their children taken by the state (or who did lose them) as well as children in foster care. There isn't anything that I didn't read about with regard to child abuse.

One of the things that I have learned is that detachment is a self-preservation tool. It is what makes us able to handle and cope with difficult situations. Detachment is a balance that needs moderation though. Being too detached can lead to apathy and lack of compassion. Too little detachment and you get suckered into helping everyone and become easily overwhelmed. One of my early posts was on setting boundaries in real estate.

Buying and selling a home is a stressful transition in someone's life. Regardless of the reasons why, it is hard. It can be harder due to foreclosure, death, divorce, or other traumatic events. Paul's post made me think about what I do with my clients to ease them through the transition and I thought I would share my thoughts with you.

Acknowledge the stress. I tell my sellers during the listing presentation that selling a home is stressful. DON'T sugar coat it. It sucks. Tell them it will be stressful, but that is why they are hiring you...to reduce their stress.
Prepare your clients. People's stress level rises when they are surprised or hit with an unexpected event. For example, it our current market, I tell ALL of my sellers, expect lowball offers. They know BEFORE we list to expect one. If we don't get one, excellent. If we get one, there is no stress because I PREPARED them for it. Prepared clients are less stressed, and as such can make faster and better decisions for themselves.
Confront the ugly. As someone who had to talk with parents about how we don't use meth while watching our kids, or letting strange men sleep with our children, I say to agents get a backbone, put in into perspective. You aren't having to do that...The agent who won't tell their client that the ugly wallpaper has to go, or that the house STINKS, is not acting as a professional. While I understand that you might want people to like you, the fact is that by lying to them and not pointing out the obvious, you are insuring that your fear will come to fruition. They will dislike you because you are setting yourself up to fail. A house the smells like 50 ferrets isn't going to sell for the same as a house that doesn't. I don't care how similar they are.
Be upfront about your clients behaviors. Paul referred to his client as the nuisance client. I know exactly what he is talking about because we all have felt that way. In our efforts to be polite to each other we don't point out behaviors that bother us. It's just not nice. We are engrained to play nice from day 1. If your client is acting in a way that is stressing you out, confront them about it. I will have to do a separate post about dealing with personality conflicts.
Handle the crap. Real estate agents are handlers of crap. Clients are paying us to be detached because they are typically unable to do so. I handle the crap and am very careful about HOW I present crap to my clients.

Buying and selling a home can cause positive stress (ie so much excitement that they don't think clearly) or negative stress (transaction nightmares) for both parties.

Part of being a real estate agent is acting as a "mini-therapist" in helping people through these transitions. Helping clients manage their emotions during the transaction makes for a smoother transaction for you as well as for them. If you are able to master the art of people, you will find that you have incredibly loyal clients.

I will do a mini series of "real estate therapy" if people are interested. If you have a topic or personality type you want help with, let me know and I'll write about it.

South Salem Neighborhood Open House Sunday June 29th 1:00-4:00 PM

2008-06-26T22:04:55Z

Gas prices are high and agents know buyers need to conserve gas. I want to let you know that we agents, from different brokerages no less, have banded together to make it convenient for buyers to come and view our listings.

We have the first South Salem Neighborhood Open House planned for this Sunday from 1:00-4:00.

Here is the map of the homes on the tour. All of these homes are a short jaunt to each other, making it a gas savings for buyers.

Stop on by. I'll be at 5120 Hill Villa with the strawberry lemonade and brownies!

If the map doesn't load follow the link for the Open House Map.

Is your client setting you up?

2008-06-25T22:41:27Z

I take the words buyer agent very seriously. My buyers sign a buyer agency agreement with me, and one of the terms in the agreement is whether or not they want me to search the FSBO listings for them.

Most of my buyers want me to look, knowing that they would have to pay my fee if the seller won't. They want to see everything. Obviously a main source of FSBO listings is Craigslist.

During my typical search through Craigslist, I came across these two posts. Now normally, I wouldn't think a lot about them.

One of them said

Great Family Home

and the other

Comfortable Family Home in Family Friendly Neighborhood

Now as agents, we are cringing at the fair housing issues implied in these descriptions. If you were just an agent searching these and looking at the listings, you would have gotten a shock to discover, when you called the phone number, that these homes were listed with agents. That's right agents.

Now, one was listed with a local cheap guy, but the other was a large franchise. I am assuming that the seller's were trying to "help" their agents by advertising their homes on Craigslist for them. The agents names were nowhere on one of the ads, but was added in the other one. I recognized the addresses since I'd just been to both of these homes in the past week.

It really hit home for me, the importance, and I think an addition to my listing agreement, of requiring any seller placed advertisements to be run through an agent. I don't like my sellers to place ads, due to this very issue, but I'm not naive enough to think that I control them. I don't think the one seller realized that by placing her agents name on the listing and adding the verbiage that she did, how much trouble that agent could get into.

With the internet and email, I make it a point to send my clients links to where ever I list them, so they understand the property is being marketed. If you are selling a property and you don't feel like your agent is marketing you in the right places, please talk with your agent first before placing an ad. You may be unintentionally setting your agent up.

38808 Main St Scio, OR

2008-06-24T11:10:41Z

I love the character of old homes. I love the details that our newer homes seem to lack.

This home in Scio, OR was built in 1905. Imagine being over 100 years old and going strong!

The home has interesting architecture in that it has more classic Victorian lines with a hint of Arts and Crafts style.

The wide front porch is just screaming for a porch swing and lemonade or iced tea on a hot day.

I could go into details about all of the built-ins, mouldings and trims, and other accents that are in the home, but if you head to the property website, it has all the details as well as a virtual tour.

You can email me, melina@tomsonburnham.com, for more information or to schedule a showing. I'll bring the lemonade.

I never, almost never, tell my clients what to do

2008-06-23T14:56:08Z

These are uncertain times for many people. Projections are that many areas are going to continue to decline with regard to the real estate market. Gas prices are soaring, food prices are going up, home equity lines are being slashed, foreclosures are continuing...need I go on?

Buyers are worried about buying a home and having it decline in value and sellers are watching home prices go down around them. Who to believe, what to do...This ambiguity is troubling and overwhelming for many of our clients.

I take pride in making sure I lay out all of the options for my clients. I firmly believe in the power of choice for my clients, and respect that their choice may not be the same one I made.

Twice today, once by my buyers and once by my sellers, I was asked, "What would you do?"

Both times, I squirmed in my seat, dread filling my soul...how I loathe that question...

One of my buyers struggling with making a decision about a home purchase asked me "What would you do?" I hemmed and hawed trying to get them to see all of the options, doing my best to avoid the question. The choice: They were trying to decide which home to write an offer on, between the final two. It was like comparing broccoli to pears. A solid home that was a serious cosmetic fixer in a GREAT neighborhood at below market value, or a great home in a GOOD neighborhood AT current market value.

I suggested they not write an offer, "You're not ready," I said. I don't do "buyer's remorse" with my clients, you are either solid and we write, or you think about it until you are solid. That's when the dreaded question occurred..."What would you do?"

The second time with one of my sellers, we were talking about an offer. Should they take it?

"What would you do?" This question seems so simple. As agents we are constantly giving our opinions about homes, neighborhoods, and pretty much anything you let us. We froth at the mouth at the thought of giving our opinions on real estate. This is what we do. The problem with this question is that it can sway our clients into making a decision that may not be the right one for them. By answering this question, I was going to take on some responsibility for their choice.

I NEVER tell my clients what to do.

NEVER.

Their home, their decision.

I present data, information, and analyze it for them. They decide what the best choice is for them.

Today, I was pinned in a corner. Today, with our current economy, it is not easy to make choices. Today, clients can be so overwhelmed: are they making the right choice?

My clients were so totally overwhelmed with the massive amounts of information flying at them from all directions. It was clear to me that my clients were not going to be able to make a decision without my opinion. So, I caved in and told them what I would do.

After today, I can say, I almost never tell my clients what to do.

An interesting proposition

2008-06-18T12:10:09Z

As usual, I was reading my blog feeds to get a feel for what's new in real estate. I have been very busy lately, so my opportunities to blog have been limited. I finally had some time, so I spent last night catching up.

Jeff Brown, a real estate agent in CA, proposed A different model for other agents to consider. I am a firm believer that variety in any busines is important and that one size does not fit all. I am all for innovation and doing things differently in real estate. I know BB feels that we are screwed with Google Base, but I firmly believe that customers want to use real estate agents, just not in the same capacity as years before.

Jeff works with investors, that is his niche and his model is based upon that niche. For investors, only one thing matters and that is profits. Homes are strictly a business proposition: either they pencil out or they don't. Jeff's model was to have sellers pay a monthly fee of $500-$1,000 per month rather than pay a commission upon the sale of the home. It is no big secret in real estate that pricing is key. Many agents take overpriced listings and hope the seller comes to some sense of reality before the listing expires.

For investor's that flip properties, this might be appealing. Depending upon price range, if an agent could sell the home in 90-120 days, the investor could save a lot of money.

This method would insure that agents have "good sellers" meaning sellers that WANT to sell their homes. If you are not motivated, you wouldn't be willing to shell out that kind of money. Now Jeff specializes in investors and plans to try this model with that niche.

The buyer agent would still get a nice commission so that part of the equation would remain intact.

I found it an intriguing idea, and while Jeff only plans to use it in his niche, I could see this being an option for more expensive homes as well.

For all of you home seller's out there, would you be willing to pay a monthly flat rate for real estate services, knowing the potential to save a lot of money?

Why you should be a statistics fiend

2008-06-14T23:55:58Z

I'm a statistics fiend. Gimme data, lots of data, the more the better.

I am a firm believer that if I am going to invest my time or money into something, I need to be able to measure outcomes. It's one of the things I love about internet advertising for my clients. I know how many views, clicks, etc occured for a particular marketing piece. The same is true for my blogging.

A couple of months ago I put statcounter on my blogs to see "what was going on." What were people reading, how long were they reading, and what keywords did they use to get to me. I have found the keywords a great source of ideas for blog topics, as well.

If you aren't using some type of tracking for your blog, you should be.

Here is my pie chart for my outside blog.

		Visit Length
		Less than 5 secs
		From 5 secs to 30 secs
		From 30 secs to 5 mins
		From 5 mins to 20 mins
		From 20 mins to an hour
		Longer than an hour

That large green section is the number of people that open and close my blog right away. A good chunk of these are people that are searching for something, hit my blog, and realize that I'm not what they are looking for. The biggest culprit seems to be the Oregonian's Jumble puzzle that they have. Since the name of my blog is the Real Estate Jumble, I get a lot of those...

What I am looking for is the red and yellow sections. People in the yellow spend at least ONE HOUR reading my blog. ONE HOUR. The record appears to be someone who read 53 of my blog posts.

Why is this important?

1) Unlike with AR, consumers don't get points for commenting on my blogs. It's nice to know that SOMEONE reads my blog. So I get motivation to keep doing what I am doing.

2) If I wasn't having people taking a lot of time to read my blog, then my content isn't appealing to the consumer. I am not a Creative Writer with a Real Estate License, so I have to do my best to engage people with the skills I have. I would like that green section smaller, so I still have my work cut out for me, but I'll know progress when my numbers are better.

3) Internet relationships take time. These charts remind me that what I am doing is working, and will garner me business in the long run. Statcounter will tell you your most popular blogs, how often your visiters return to your site, and a myriad of other great information.

So...if you are serious about using your blog as a tool for your business, you really need to become a statistics fiend. Really, it's not as scary as it sounds.

Anti-puffing: a solid marketing plan?

2008-06-12T00:09:08Z

First of all you need to know that I really dislike puffing. Agents know the term puffing: it's what some agents do when describing a property.

Stunning views! (yes the mountains are great, but what about 50 junky cars that my neighbor has on their property right below that view)

or handyman's dream (ie please be cautious of the hole in the floor).

Puffing can lead to misrepresentation if agents aren't careful.

Now, it is important to describe a property accurately, and often times we use adjectives to get our point across. I personally don't like flowery descriptions of properties. I prefer to get the facts, let the photos do the talking, and then make up my mind if a garden is luscious, a view stunning, or hardwoods are amazing, but there is a balance.

Puffing has been a staple in real estate marketing for a long time. There has been a general trend in my MLS to have more accurate desciptions, which I personally appreciate. I think I came across my first anti-puffing description on the MLS today. The PUBLIC remarks started out with

There are no known major problems with this home...

and ended with

Please remember it is the buyers' responsibility to verify all details and measurements inside and outand. (we have a disclaimer on the bottom of every MLS sheet already).

Now, my first thought when reading this was, well...what are the minor problems then?

The house has been on the market for 357 days...Now, as anti-puffing as I am, this is not a solid way to start a conversation about a house. I can't help but look at the words used and think there must be 100 small things wrong with this house. Why the heck would anyone start out that way?

I have no doubt that the verbiage in the public remarks section is turning off many potential clients. As I was screening over 100 homes for my buyers, I know I read it and thought what the heck?

Next!

Creative Writer with a Real Estate License

2008-06-09T22:08:27Z

All you have to do is read the title of this blog, and you can probably guess who it is about.

Paul Slaybaugh, wrote a nice tribute post to Andrew Lenza recently. As all of you know, Andrew made his last post on AR in order to try and gain more balance in his life.

I often wonder how people are able to spend the time they do online, but everyone's lives take different paths and I'm not here to judge someone else's path. I encourage all people to do what is right for them, which may not be the same for me.

There is so much social media out there, that it can be addictive and overwhelming all at the same time.

Since Andrew was unwilling to promote his outside blog, here it is. For those of you that need to get your fix of Lenza humor in the mornings, check him out and give him support. BUT no crap (okay well, just a little) for not posting here anymore.

I know, I look forward to reading some excellent writing by the Creative Writer with a Real Estate License.

Salem Oregon Real Estate Market Conditions

2008-06-09T15:05:17Z

With the end of May, comes the time to look at the monthly market conditions.

The market is currently sitting on a fault line. You know how some fault lines move just a little bit every year so you never have a big earthquake, and others jerk all at once? I feel like the Salem market is a little bit like a big quake waiting to happen.

Market data is showing that prices aren't changing much which is usually an indication of stability in a down market. What is increasing are inventories. What that means is that seller's are holding fairly firm on prices, and some buyers are diving in, but the increasing inventories are indicating that many are not.

What this means is that something has to give. Here are local Salem, OR real estate market reports for the month of May.

Salem May Home Sales Trends

Salem Metro Area Inventories

Salem Regional Market Stats

My concern is that if seller's don't start correcting downward, we may have a 6.0 this fall. The good news is that now, I know what to do during an earthquake.

The Wheel of Fugly

2008-06-06T10:12:38Z

I'd like to welcome our sellers to the Wheel of Fugly...where market stats are going to make you cry.

Category is INVENTORY:

Here's the puzzle: __.__% ____ ________ ____ ___ ____ ____ ___ ____.

Spin the wheel: Oh, you got ugly.
Spin it again: Ugh, ugly again. That's a bummer.

Well, you've got a plethora of ugly do you want to solve the puzzle or spin again?

Solve it: 35.79% more listings on the market now than the same time last year.

Category is NUMBER OF SALES YEAR TO DATE

Here's the puzzle:____ ____ ____ __ ____

Spin the wheel: Oh, you got more ugly.

Spin it again: Sheesh...more ugly again. What bad luck.

Well, you've got a boat load of more ugly do you want to solve the puzzle or spin again?

Solve it: 2484 sales year to date (This is the fewest number of homes sold since at least 1996. A 34.5% drop since 2007).

Now here's the final puzzle

Category is PERCENTAGE OF LISTINGS SOLD SO FAR IN 2008

Here's the puzzle:__% _ ___ __ ___ __ ___ ____ ____

Spin the wheel: Oh, you got more ugly.

Spin it again: Oh no! This time you got fugly. That is some crappy luck you have today.

Well, I know you only have more ugly plus a whole bunch of fugly , but do you want to solve the puzzle or spin again?

Solve it: 32% of listings have sold so far this year. (This is half as much as in 2006 and a 16% drop from 2007)

Congratulations! You dear seller, have won a 32% chance of selling your property in a market with 35.79% more inventory.

Hmmm...So what did I win???

A ten month supply of Kleenex (current inventory). Don't worry it's the kind with the lotion in it.

I think I'll wait for the annual half-off sale

2008-06-04T13:45:01Z

I am a voracious reader and many of my favorite bookstores, offer specials such as buy two, get one free, etc. I'm always there stocking up on books.

When I read Ines' blog about CB's 10% for 10 days promotion I was surprised and not surprised. We are in a difficult market, especially in Florida. A promotion like that is fraught with problems for sellers, but Ines talks about it well.

Recently, a blog written for the LA Times was brought to my attention. Apparently a builder in CA was offering a buy one, get one free deal on houses. Buy a 1.6M home and get a $400K one for free. What is so great about this blog is not the blog itself, but some of the comments afterwards. My favorite comment was posted by shockg

Hello Dominoes...I'm calling about your buy 2 medium pizzas with the free 1BR condo on the side.

I was wondering...if I upgrade to 2 large pies can I get a 2BR?

Oh...you still have plenty of those...great. Don't forget to include the dipping sauce and the granite counters.

Sure...I can be ready to close in 30-45 minutes.

It will be cash.

Thanks. See you soon.

Now, I realize that there are many sellers in dire straights in CA and FL and it is certainly not my intention to mock their pain, but these two promotions are really over the top. With Coldwell Banker's 10% off for 10 days promotion and this buy one, get one free promotion it's no wonder than some buyers still don't want to dive into the home market. While I have to give these agents credit for trying something unique to sell these homes, I almost can hear the buyers saying, "I think I'll just wait for the annual half-off sale."

At least I know I tried to make it better

2008-06-02T22:30:51Z

Several months ago, I had a listing with a wonderful seller. We received an offer on his house and we were excited. It was close to full price and considering the rapid decline in the market, we were both happy. The transaction turned into a nightmare after just five days into the contract. As the transaction wore on, I started a list of all of the issues that arose for a formal complaint against the buyer's agent. Her complete disregard for the terms of the contract made me livid and I got some sense of peace knowing that I was going to file a complaint.

Three months later, the transaction finally closed. At this point, I was so tired of dealing with the transaction that I put my complaint paperwork away. I was wavering on filing the complaint...I'm not sure why, but I really needed to think about it. Who died and made me the real estate agent police?

Two days later, I filled out the form, looked up the ORS (Oregon Revised Statutes) that the agent had violated and copied the documents for the Real Estate Agency. I had a strong sense of dread and guilt as I put the last stamp on the envelope and stuck it in the mailbox. I told myself, "You are doing the right thing."

I received a notice about a month later that they were going to investigate the complaint. I really didn't think about it too much until today. It has almost been 6 months since I stuck that paperwork in the mailbox, when I received a call from the investigator assigned to the case. He left a message on my voicemail to call him back. The feeling of dread returned along with my guilt. My stomach churned as I talked with the investigator, as if I had done something wrong. I almost expected him to call me tattle tale and chastise me for turning in my fellow agent.

The investigator wanted to get clear the timeline of events, so we went over the transaction in detail. I could feel my heart pounding and blood pressure rising as we talked about the transaction. He apologized for taking so long to follow up on the complaint, but he was swamped with complaints. That comment made me feel slightly better...clearly other people were filing complaints as well.

He asked me to call if I thought of anything else to add (as if my two pages of comments weren't enough) or if I wanted to know where he was in the process. He stated that he really needed real estate agents to police their own and thanked me for filing the complaint.

Like many bloggers, I have written about the need to have more difficult entry standards in order to increase the professionalism of real estate agents overall. While I was struggling with filing the complaint, I reminded myself that I need to live what I believe. If I am blogging and asking for change, then I need to be actively seeking it. Otherwise, I am an active participant in the problem. So I sent the complaint.

I consider myself a self-confident woman who has very clear opinions on what I believe to be right and wrong. As such, I was surprised that the mere action of "tattling" on someone else could cause such stress for me. I don't typically have any problem telling people what I really think and have plenty of experience confronting people as a therapist. I don't know what the end result will be, but at least I can take solace in the fact that I tried to make it better.

An old idea re-emerges

2008-06-02T12:04:16Z

I had planned to blog today about gas prices. As I logged onto Active Rain, John McArthur, was at the top of my subscribed blog list and so I clicked to read his most current blog. If you haven't read John, you really need to. Anyway, he wrote a fabulous post. He comments on our situation more eloquently than I ever could.

One of the joys of turning 16 is being able to drive. I remember being 16 and just driving around town, not because I had anywhere to go, but because I could. With my friends in the car we would cruise around talking and laughing in the car mile after mile, wasting gas. I was working a lot, and gas was cheap. The cost to fill my tank was easy and like most 16 year olds, I wasn't focused on the long term consequences of wasting gas.

With gas prices rising and expected to continue to rise, our teenagers are finding it hard to fill up their cars. Some teenagers in Kentucky had an excellent solution to this problem. Kudos to the principal of the school for allowing this.

Click here to watch their solution. There might be an ad at the start of the video for a few seconds before the newsstory starts.

4307 Rogets Ct NE Salem, OR 97301

2008-05-30T16:07:29Z

Have you ever walked into someone's garden and thought..."I wish I could do that!" Well this house is one of those homes. The owners have created a wonderful garden retreat in this backyard that is so relaxing, I just wanted to sit and read a book. From the brick patio, to the garden ornaments, to the blooming plants, this garden is truly special.

The house is pretty amazing as well. With an open airy floor plan, natural light pours in from the large windows. Architectural touches such as aches, decorative mouldings, and accent lighting are prevelant in the living room.

The owners installed a large bay window in the dining room that makes you feel like you are merging indoor and outdoor living. The view from the bay is very soothing. If you wanted there is plenty of room on the patio for a hot tub and there is a separate door just off the master bedroom for easier access.

There are many details about this wonderful home that you will want to check out so head to the property website and then call me to show you this home.

And don't worry...if you are like me and only have a medium green thumb, the current homeowner would be happy to take you around the garden and show you how to maintain it.

5120 Hill Villa Ave S Salem, OR 97306

2008-05-29T00:48:42Z

Hmmm...Nice picture of stuff. Okay this agent is doing a crappy job for her sellers, you are saying. Just read on...

Yes, I am posting a picture of stuff because this house that I just listed has this fabulous space in an unfinished "crawl space/basement" type of area. It has its own entry door, so when I saw it I immediately thought about all of the possibilites such as finishing it into a studio apartment for a loved one or a tired of a loved one that you just wish would move out on their own... (Remember that city building/zoning codes will apply so double check with the city).

If those don't work for you, I was thinking a wine cellar, hobby space, or workshop would be great uses of this space. Now the total area is probably close to 1,000 sq feet or so, but the area you could easily finish would be closer to 600. The good news...you'd still have ample storage space.

If you don't like any of my ideas, that's okay. It still is a great place to store stuff.

Now before you think that the house has no actual house, let me share with you a little bit about it...As you can see the rest of the house is indeed finished.

This is a 3 bed/2.5 bath home with approximately 2367 sq feet. If you want all of the details of the house head to the property site to find out more.

I just wanted to share with you what I think are a couple of the best features of the home.

The house has 3 decks which all have views of the Cascade Mountain Range. Unfortunately the day I took photos, it was slightly hazy and you couldn't see the range very well, but the owner was gracious enough to take a sunrise photo for me to share with you. I really didn't want to get up at 5:00 in the morning to go and take a shot, but I AM a dedicated agent...

One of the decks is off the master so it is perfect for having your morning coffee or tea while you watch the sunrise. If you need me to come over to capture that am photo for you, just remember that I take cream and sugar in my coffee.

Are we going about this backwards?

2008-05-20T12:02:14Z

Karen Webster recently wrote about the agent responsibility act that is going to be effective there starting July 1, 2008 in Michigan.

With some states now requiring minimum service standards and these new service disclosure laws...it leaves me wondering why?

Agents want to be seen as professionals and have value. Any buyer or seller who has had a good agent understands exactly what they bring to the table. They get it because they have experienced top notch service.

Many good agents (including myself) have compared ourselves to doctors, lawyers, CPA's etc, but the fact is we are not. It's not because what we do isn't hard and worth it though.

When I got my Master's degree, I spent two years in graduate school which included over 1,500 hours of internship time before I was unleashed on the community. In Oregon you can practice as a therapist with that, or you can get your license which is another 2,500 hours of intense supervision. This license status allows you to bill insurance companies since they now see you as competent.

To get my real estate license in Oregon was 120 hours of class, and a 200 question state test that I needed to pass. It was a piece of cake. Now considering that we are dealing with $60,000-mega million dollar investments, the entry standards are not appropriate.

So while I understand the minimum service requirement laws, and now this service disclosure law, my thoughts seem to be that we are doing this backwards. We are trying to regulate people that have no business doing this in the first place.

I've never signed anything from my doctor that says I understand that he will check my blood pressure, and pulse, listen to my heart and lungs, etc. I just know that is what they will do. What happens when you elevate the entry standards is that you tend to get people that are more committed to the profession. It took a lot of work to get there, and as such they tend to stay there. I think people that are focused on making real estate their profession, are less likely to be unethical (there are no absolutes). Maybe that is an err in my thinking, but I do believe it to be true. I do think if we raised the standards, minimum service requirements and service disclosure laws would not be needed.

I do think we would still have limited service representation since it is a viable model for a few consumers in the marketplace. I just think they would be better. You'd have agents that could explain the program to consumers so that they really understood what they were getting. There really are good limited representation agents out there. I have worked with some. Their clients know EXACTLY what they are getting.

So this brings me to my point...why are we wasting legislative time and creating regulations that are only bandaids to the real problem....

It is just too stinking easy to be a real estate agent. I believe if they would just make entry standards harder and required an internship, laws like this would be mute.

Laurel Springs Neighborhood in Salem Oregon

2008-05-18T22:09:20Z

In the fall, the colors in this neighborhood are truly stunning. The Laurel Springs neighborhood is about 40 years old, which means the oaks and the maples can almost touch each other from across the street.

The large trees and well kept landscapes are the appeal of this neighborhood.

Bounded by River Rd to the west and Azalea to the east, 90% of this neighborhood sits between Acacia and Madrona.

If you approach this neighborhood from River Rd you will enter it on Acacia. Lined with trees, the entry to this neighborhood is consistent with what lies within.

Most of the homes in the neighborhood were built in the 1960's and 1970's so the architecture is consistent with that time. Larger lots and ranch style homes make up a good chunk of this neighborhood.

Special Considerations:

Most of these homes were built 30-40 years ago, so many of them need some sort of updating. The flip side is that you get a larger yard with established trees. Homes that are completely updated in this neighborhood will go for a premium.

School Districts:

This neighborhood is served by Candalaria Elementary, Leslie Middle School, and South Salem High School.

As with all schools boundaries are subject to change from year to year, so double check the boundaries prior to moving.

WVMLS Market Data:

Approximately 11 homes sold last year in the neighborhood an average price of $364,218, and a median home sales price of $320,000. Sold prices ranged from $237,900-$625,000. They averaged 140 DOM. There are currently 13 homes listed as active on the MLS for this area with prices ranging from $269,950-$750,000.

If you need more information about the Laurel Springs area and homes currently available for purchase, please feel free to call or email with questions.

Fannie Mae reverses the declining market policy

2008-05-16T16:58:02Z

Back in December, Fannie Mae came up with their ingenious "declining market" policy. We out in Salem, Oregon weren't impacted by this since we weren't considered to be declining, but many areas were.

The policy required an additional down payment if the house was in a designated declining market. So if there was a ready and able buyer in a declining market, but they only had 3% down, they were forced to come up with the extra funds or walk away.

In this market...we don't want any qualified buyers to walk away.

Thankfully, Fannie Mae has come to their senses and is reversing that policy. As of June 1, 2008, any conventional conforming loans will require a 3% down payment if the Desktop Underwriter is used, and a 5% down payment if the loan is processed manually. This will be uniform across the country.

This doesn't impact Salem Oregon buyers since we were never in a designated declining market, but it will impact our local investors who wanted to purchase in other areas. There are some good real estate deals to be had in some of those designated areas. So...for those buyers out there that wanted to look at a second home in Florida, for example, this is good news for you.

Are we just spinning our wheels?

2008-05-15T21:56:47Z

The National Association of Home Builders released a statement today that builder confidence is down.

"Home builders remained considerably downbeat as market conditions continued to erode in May, according to the NAHB/Wells Fargo Housing Market Index (HMI), released today. The HMI fell a single point to 19, bringing it within one point of the record low 18 set in December 2007 (the series began in January of 1985). "

"With the HMI hovering in the historically low two-point range that's prevailed over the past nine months, the message is very clear: The single-family housing market is still deteriorating and Congress and the Administration must move immediately to enact legislation that will help reverse the trend," said NAHB President Sandy Dunn, a home builder from Point Pleasant, W.Va. "A temporary home-buyer tax credit is just the incentive that many prospective home buyers need to go forward with a purchase and help kick-start a housing and economic recovery."

The statement went on to say:

"Despite the Federal Reserve's concerted efforts to lower short-term interest rates, free up credit markets and shore up the national economy, the housing market has shown no evidence of improvement thus far. In fact, conditions have continued to deteriorate in recent times," said NAHB Chief Economist David Seiders. "The latest HMI shows that even fewer builders now foresee market conditions improving over the next six months compared with our April survey, and builder ratings of buyer traffic through model homes also have dropped off over the past month on a seasonally adjusted basis. This certainly adds fuel to the argument that targeted policy stimulus, in the form of a temporary tax credit for home buyers, is essential to halt the housing downswing and remove the heavy drag being exerted by housing on overall economic growth."

I don't know...call me crazy, but I really don't see how a $7,500 tax credit is going to do a whole lot. Many buyers are worried about the value of a home going down by double digits. My buyers are concerned by overpaying by 10% which would be a $20,000-$50,000 loss of value in their eyes.

Do I think that $7,500 will bring buyers looking...yes...will it get buyer's buying...I don't think so. The fact is that people still have to be able to afford the mortgage payment. With homes floating to such high prices, they needed to correct and in some areas still correct in order to make the payments affordable. A tax credit doesn't make the house affordable, just more enticing.

So I'm left to wonder why we are spinning our wheels?

Spin: FHA limits raised

Spin: Jumbo loan criteria changed

Spin: Subprime bailout

Spin: Tax credit

Okay...enough...I'm dizzy now.

The bottom line is pretty simple to me...can a buyer afford the monthly payment for a home or not? Our home price to income ratio (historically around 3.0-3.5) is still too high here in Oregon. This means that if people want to own a home, they have to be "house poor." I am seeing more and more people, not agreeing to do that. As long as home prices are not in line with current incomes, they won't be affordable, and people won't buy houses.

Maybe my problem is that I'm too simple when it comes to the market. Maybe if I stare at that spinning wheel long enough, it will make more sense.

The end of open houses?

2008-05-12T23:18:23Z

I know, I know this topic has been debated left and right ad nauseum. This is not about that....well okay sort of...it's really more about being able to spend your Sunday's in your pajamas.

I always get the NAR Profile of Home Buyers and Sellers, and this year was no exception.

I rarely do open houses (2 in the past 4 years). I think they are ineffective and the risks are not worth it, for me. I know there are those agents that swear by them, and for new agents a way to potentially generate business, but is that really true...

I don't think there is any argument that open houses rarely sell houses. When you look at the overall statistics, it is clear they don't sell a house. The issue has always been that they are good potential client generation tool and therefore valuable to real estate agents. I think that needs to be rethought.

In the 2007 survey they list the top 5 ways that a buyer found their agent

43% were referred
11% used their previous agent
8% found them online
7% used an agent off a sign
6% found them at an open house

What is interesting is that last year, in the 2006 survey, finding an agent at an open house was the #2 way. So the fact that open houses are falling in the ranks as a way to find buyers, AND we already know they are ineffective in selling houses...what's the point?

With 8% finding us online and only 6% at an open house, how would you rather spend your Sunday...sitting at an open house or spending 30 minutes blogging online?

Me...I'll take my jammies, coffee, and the comfort of my leather chair any day.

Current market conditions for Salem Oregon

2008-05-08T14:16:21Z

You will always hear agents talking about the market in simple terms: it boils down to supply and demand. So lets look at Salem Oregon's current market conditions based on supply and demand for the first trimester of the year (January -April).

Demand :

There have been 526 home sales in the first trimester
There were 738 homes sold in Salem, OR in 2007 for the same time frame.
This is a decline in demand of 28.7%.

Supply :

There are 1466 homes listed during the first trimester.
In 2007, there were 1537 homes listed in the same time frame.
This is a 4.6% decrease in supply.
At current market performance rates, it will take 10.6 months to sell all of the homes that are on the market in Salem,OR now.

Escrow :

There are 167 homes in escrow at present.

Prices :

The Average Sold Price appears to be stabilizing at present:
The average sold price for the first trimester was $219,669. (7.2% decrease from 2007)
In the last 180 days, the average sold price is $224,456.
In the last 90 days, the average sold price is $220,805.
In the last 30 days, it is $230,715.

Absorption Rates :

The 30 day rate is 138 homes per month.
The 90 day rate is 141 homes per month.
The 180 day rate is 134 homes per month.

What does all of this mean if you are trying to sell a home in Salem, OR?

The absorption rate is holding fairly steady right now. Homes are selling. While prices have been steadily declining over the past few months, there was a price bump in April. I don't expect that trend to continue in future months. I would continue to expect too see another 5-10% decline in prices over the following months. I would also expect to see absorption rates go down as many people list their homes on the Spring market, only then finding out about the lack of qualified buyers to purchase homes.