Please President Obama-Stop Helping us!

I was a Realtor in the mid 1980’s when the values of homes in the Portland area dropped.  Interest rates topped out about 19% and then quickly began to go down.  In early 1990, everyone was excited because interest rates fell below 10%.  People were rushing into the housing market because interest rates were so low.  Housing prices also began to rise. You could get a loan for the first time above 90% of the purchase price.

Today, interest rates are around 5%. Some new construction banks are offering rates as low as 4%. Home values in the Portland metro area, however, are continuing to fall an average of 1/2% a month. . In some areas this number is higher.  How much lower does this need to go before the consumer will happily enter the housing market? 

Well, if I had to guess, I would say well into next year.  If we want a quicker recovery, then President Obama and Congress need to stop “helping” the economy. Cut taxes and give all new home buyers the $8000 tax credit and that would be sufficient to jumpstart the housing slump.

I told you the story about the real estate market in the mid1980’s because there was no stimulous package to bail out the falling housing market.  All by itself, and rather quickly, the market adjusted and then began to rise again.  We live in America-the land of opportunity.  With opportunity comes risk. We  don’t need to be treated like children who need mom and dad to get us out of trouble.  The market will adjust on its own.  Please let the market adjust without any more “help”

Time to Clean your Gutter

November 19th, 2008

Don’t forget to clean your gutters this fall.  This could be the single most important thing you can do to maintain your roof.  Overflowing gutters allow water to penetrate under the shingles causing them to lift and promote dry rot of the plywood. Leaves and Debris put weight on the gutters and can also cause them to pull away from the house.

You have two options, hire a contractor to do the job for you, or you can clean your gutters on your own.  For your convenience, I have included a coupon from Guy Rencher- of Action Window and Gutter Cleaning. 503-407-3346. 

 

If you decide to clean the gutters yourself, choose a sturdy ladder, and place it on a firm, level base. A tall stepladder can be easier to use than an extension ladder. If you must lean an extension ladder against a gutter, protect the gutter from bending by placing a short piece of 2 by 4 inside it. Stand on the ladder with your hips between the rails, and don’t lean out over the sides. Never stand on the top two rungs.
If you’re comfortable working from the rooftop and your roof has a very low pitch, this can be easier than working from a ladder. But only do this under extremely safe conditions. Never work on the roof in wet, icy, or windy conditions. Wear non-slip shoes, and never lean over the edge or work near power lines.
When cleaning gutters, wear heavy work gloves to protect your hands since gutters often have sharp metal parts or screw points sticking out into their troughs. Also wear safety glasses or goggles.

SHOULD I RENT OR SHOULD I BUY IN THIS MARKET?

November 18, 2008

Consider this: If your rent is $1200 per month, your annual rent is $14,400. Once the month is gone, so is the money spent to put a roof over your head for that month.  In just ten years, you will have paid (assuming your rent has not risen) $144,000 in rent payments.  It is no wonder your landlord is smiling.  You are voluntarily paying for his real estate!

Assume on the other hand that you have a $220,000 home with a $200,000 mortgage. Your monthly payment is about $1,199 principle and interest, at 6 percent interest and amortized over 30 years .  This amount is nearly equal to the $1200 that was spent for rent each month. There are still the property taxes and home owner’s insurance to contend with, which may be about $350-400 per month in addition to the $1,199. (payment of about $1549) This amount does exceed your rent payment but there are more things to consider.

The interest on your loan (6 percent x 200,000) = $12,000 per year. Assuming you’re in a 30 percent tax bracket, you have a tax savings of $12,000 x 30 percent = $3,600 per year.  This is a write off on your federal taxes schedule A that is not available to renters. Property taxes are also deductable as well.

www.Forbes.com, in the November 5th 2008 article called Buy Real Estate Now, stated that Zillow.com reported in October that half of American homeowners believe their residences are worth just as much now or even more than they were worth a year ago.  It may be safe to suppose that your home appreciates on average 5 percent a year, a reasonable assumption over time. Thus, in one year your $220,000 home is worth $11,000 more, and is now valued at $231,000.

$11,000 + $14,388 + $3,600 = $28,988.

Donald Trump, when interviewed for the article mentioned above said “ For me, I go with real estate all the time. “

The decision is yours, would you rather rent or buy?

November 6, 2008 OPEN HOUSE SAFETY

An open house can be an opportunity to invite prospective buyers to a home that is listed.  It can also be an invitation to trouble.

When you open your home up to complete strangers you have no way of knowing who will come.  I, as a Realtor, do not do many open houses for this very reason.  If I am in the living room showing the home to a potential buyer and another stranger is going through a different part of the house unaccompanied, there is a risk that the personal belongings of the homeowner are in jeopardy.

Open houses can be instrumental in bringing you a buyer, so why not prepare your home ahead of time.  Lock all valuables such as jewelry in a safe or store off site in a safety deposit box.  Keep all credit cards, unopened mail, statements, and documents with personal information such as tax returns, in a safe place as well.  All prescription drugs should be under lock and key. 

Each visitor should be asked to sign in (including their name, address, and phone number) before they are allowed to tour a home.  In the event they do not wish to sign in, they should be excused from the home and reminded that they are able to come back when they are either accompanied by a Realtor or are willing to sign in.  

Property taxes for Multnomah, Washington and Clackamas Counties in Oregon are in.

October 29, 2008

“If you make any money, the government shoves you in the creek once a year with it in your pockets, and all that don’t get wet you can keep.”  —    Will Rogers     

Art credit: Harry Chen Thinks Aloud

 

On October 25^th 2008, the new property tax bills will be sent to homeowners.  If, in your opinion, the current property value is different from Real Market value, then you can appeal the property tax.  For the current tax year, your tax petition must be postmarked or delivered to the county that you live in by December 31, 2008.

 

If you own property, or are a person or business that holds an interest in real property that is subject to property tax, then you are legally allowed to appeal the property tax to the board of property tax appeals.  The real property tax petition can be obtained from the county you live in, and should be available on the day that the tax bills are sent out.  In some cases, you are allowed to have a personal representative with you at the hearing or sign the petition for you.  Please check the details for submitting a real property tax petition.

 

The appeal must include an explanation and evidence of why you think that the property value is incorrect.  Among the sources of acceptable evidence for property value are:

 

Documentation of a recent sale between unrelated buyer and seller (called an arm’s length sale)

 

A recent appraisal done by a licensed appraisal

 

Proof that the property was listed on the open market for a period of time at a price below the real market value on the tax roll

 

A comparative market analysis (CMA) of properties that are similar to the property being appealed in location, size, and quality.  This can be done by a licensed Realtor.

 

Cost of new construction by a professional contractor that took place close to January 1 of the assessment year.

 

Cost to repair your property (must include written estimates of repairs)

 

The board will be reviewing the appeals between February and April.

 

I would be happy to offer you my assistance with a comparative market analysis (CMA) on your home if you choose to appeal your own taxes.  Just give us a call.

                                                              

 

Sheryll Fong

Principal Broker

ReMax Equity Group

1975 NW 167^th #100

Beaverton OR 97006

503-939-2221

 

www.portlandhomesales.net