Strategic Realty

solutions for real estate

Government Funding for Your Home Improvements

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If you’ve been contemplating home improvement, especially those that help the environment while reducing monthly expenses, this is a great year to get started on them.

In 2002, Congress passed the Inflation Reduction Act (IRA) which dramatically increased the tax incentives on many home improvements related to energy savings. In Oregon, we’re fortunate to have a non-profit organization that can not only help you navigate through some of these potential savings, but in many cases, add cash incentives themselves. EnergyTrust of Oregon helps businesses and individuals save on their energy costs and improvements and they are a great resource when evaluating some of the Federal incentives that you may be eligible for.

With the passing of the IRA, you may be eligible for up to $14,000 via the “high-efficiency electric home rebate program.”

Income caps apply, but you may get to that maximum by buying efficient, electric appliances: $1,750 for a heat pump water heater, $8,000 for a heat pump that heats and cools their home, and $840 for an electric stove or an electric heat pump clothes dryer.

You can also get rebates on non-appliance upgrades such as $4,000 for an electric load service center upgrade; $1,600 for insulation, air sealing and ventilation; and $2,500 for electric wiring.

In most instances, rebates can be combined with tax incentives plus other cash incentives from place like EnergyTrust, so the savings to homeowners is really significant.

Pro Tip: To get the maximum savings out of these programs, phase your improvements over a few years when practicable. That’s because of the annual limits on savings. For instance, windows are capped at $600, but that cap renews every year for the next decade or so. By phasing your improvements you’ll be able to save money each and every year.

Certified Residential Specialist (CRS)

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Strategic Realty actually has TWO brokers who hold the Certified Residential Specialist (CRS) Designation. The CRS designation is the highest credential awarded to residential sales agents, managers, and brokers.

What is a CRS?

A CRS REALTOR® is a Certified Residential Specialist—one of the top 3 percent of real estate agents in the U.S. CRS agents have more experience and training than the average REALTOR® and are part of a community of REALTORS® dedicated to improving the real estate industry for homebuyers and sellers everywhere.

Why Work With a Certified Residential Specialist Agent?

Buying or selling your home is one of the biggest and most important decisions you’ll make in your lifetime. You need someone you can trust by your side, who is looking out for your best interests and is willing to put all their knowledge and experience to work for you. You need a CRS.

Not all real estate agents are made the same: There are millions of real estate agents out there, and their experience and dedication to their profession and clients varies widely.

The threshold to becoming a real estate agent is surprisingly low. Requirements vary by state, but some ask for as little as 40 hours of training and few ask for more than 100 hours—compare that to the 1,000 hours that are typically required to become a hair stylist.

To become a CRS, however, REALTORS® must meet a number of stringent requirements that combine advanced hours of education and training, experience and success in the marketplace. A CRS agent adheres to a strict code of ethics that binds them to perform in the best interest of their clients at all times.

CRSs are required to have between 25 and 150 transactions and between 16 and 80 additional hours of education beyond what’s required of the typical REALTOR®.

These are agents who are invested in their careers, in buying and selling real estate and in making sure their clients are satisfied. CRS is the sign of a true real estate professional.

Don’t work with the rest, choose the best. Choose a CRS.

The Benefits of Working with a CRS Agent

  • CRSs receive advanced training above and beyond what is required of typical agents
  • CRSs have proven experience through logged transactions
  • CRSs continuously improve their skills and learn about new regulatory developments
  • CRSs adhere to an ethics code not required of other agents

Homeowners Still Have Positive Equity

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If you are a homeowner, you should have noticed a huge boost in your net worth over the past couple of years. Most people have noticed the rising prices and, last year, you knew about the low interest rates. Although prices are softening and interest rates have gone up, a lot of homeowners still have substantial equity in their homes. Here’s how it happens and what it might mean for you, even as we see the changes in the market.

Equity means the current value of your home minus what you owe on the loan.

Over the last few years, with inventory as low as it has been, there was an imbalance between the number of homes available and the number of buyers that were searching for a home to buy. The low inventory and demand caused housing prices to skyrocket in Central Oregon.

And while home price appreciation has moderated this year, and even depreciated slightly in some overheated markets, that doesn’t mean you have lost all the equity you gained during the major Seller’s market we are all adjusting from.

The latest Homeowner Equity Insights from CoreLogic finds the average homeowner equity has actually grown by $34,300 over the past 12 months.

So, despite the headlines, the average homeowner still gained positive equity over the last year in most markets. Keep in mind that the gains may not be as drastic as they were in April or even May, but they are still significant. Another thing to note is the longer you have owned your home, the more equity you may have in it!

What Does This Mean For You?

Equity, of course helps you increase your overall net worth, but it can also help with other goals, like buying your next home, buying an investment property, and making major home improvements. Selling your current home could result in more cash from closing to provide you with a largerdown payment, or cash for other uses!

If you have been on the fence about wether or not you should sell, because you weren’t sure what the news has meant for you or your situation, you can take a deep breath. You likely still have substantial equity and we are here to help you know just how much might be there for you.

Bottom Line

If you are considering a move, the equity you’ve gained over time can make a big impact. To find out just how much equity you have in your current home, and how you can use it to fuel your next purchase, give us a call.

What Does Under Contract Mean in the Real Estate World?

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With so many popular terms in the real estate industry how is the consumer supposed to know what they all mean? Mortgage, appraisal, earnest money, due diligence, the list is truly endless. One of the more popular terms you will hear REALTORS® and lenders use is the term “under contract”. But what does that really mean?

There are many times where a buyer will look at real estate listings and find one that really grabs their attention. It has everything they have been looking for, but it is listed as either “Pending” or “Under Contract”. Buyers who have no idea what those terms mean usually find themselves feeling a bit uncertain. Many ask “is it sold?” “can I still buy it?”, and unfortunately the answer is not exactly transparent. To fully understand this we have to deep-dive into the strategies of negotiating a real estate transaction. Our guide below will help you understand what this all means and show you how we can help you through these situations.

Under Contract Listings Explained

The common understanding of “under contract” would leave most assuming that the home is sold and no longer available. In the real estate world it truly means something very different.

A house that is listed as “pending” or “under contract” in real estate terms indicates that the seller has found a buyer for the house, and that that buyer and seller have come to an agreement on some of the terms for the buyer to purchase the home.

An obvious question might be, if an agreement has already been made between buyers and sellers, why are houses listed as under contract still available for viewing to prospective customers?

This is because, despite the fact these properties are under contract, there is still a possibility that the deal may fall through, thereby giving another interested buyer an opportunity to seal the deal.

Under contract refers to a status in which the seller of the property has an agreement with a potential buyer, but the house is technically still advertised on the market because the agreement isn’t finalized yet. There are still contingencies that will need to be met before the property can be considered sold.

Contingencies

That brings us to the wonderful world of contingencies. Contingencies are certain conditions that have to be met or completed/agreed upon before a real estate transaction can be closed. Below is a list of the most common contingencies you will find in a standard residential sales agreement:

Sales Contingencies – this contingencies states that the offer to buy a home will only close if the buyer is able to sell their currently property. These are quite common in the real estate industry and sometimes can include the sale of multiple properties in order to purchase one.

Financial Contingencies – these are measures taken to prove to the seller that a buyer is able to purchase the property and has been approved for the mortgage needed to acquire the property.

Inspection Contingencies – this is a time period determined by the offer to purchase for the buyer to have the home and property inspected by a professional home inspector. This is also a time for a buyer to negotiate repairs that may be needed on the home.

Appraisal Contingencies – this is the agreement between the buyer and the seller that the home will be appraised, and that the value determined by the appraisal must be the purchase price or higher. If the appraisal comes back below the value of the purchase price in the sales agreement a new price may need to be negotiated or the transaction may need to be canceled.

Contingent VS Pending VS Under Contract VS In Escrow

Essentially these all mean the same thing. These titles are usually determined by the Multiple Listing Service (MLS).

We can assure you that “contingent” and “pending,” do in fact mean the same things as under contract. 

In the past, a “contingent” listing used to specifically mean that the buyer still had to sell their home (or homes) in order to close the deal. Nowadays, though, it is no longer limited to only this kind of contingency (sales contingency) and can imply other forms too. You may also see a term “Contingent Bumpable”. In our MLS system the “Contingent Bumpable” means the seller is still accepting offers and that their current offer can be “bumped” out under certain circumstances.

At any rate, a house listed as “under contract”, “contingent”, or “pending”, indicates that the house has a potential buyer with an agreement in place.

Under Contract Summary

Closing a transaction in the real estate world requires a few more steps than just writing an offer and closing the deal. To just name a few, there is the listing period, showings, negotiating, accepting an offer, clearing all the contingencies and then finally closing escrow.

Houses listed as pending or under contract have only made it through the initial offer being accepted and there is still a lot of work to be done. Houses in this phase of the process can still fall through and it happens often.

If you find your perfect home and it is listed as pending don’t give up. Contact your broker and see if there is a chance to put in a backup offer on the property. You never know what might happen!

Office Location

Our full-service brokerage is strategically positioned in downtown Bend, Oregon, close to the city's heart. We invite you to visit us and allow us to demystify the complexities involved in the process of buying and selling.

325 NW Vermont St., #107 Bend, OR 97703

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