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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.

Certified Distressed Property Expert

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Our office has recently obtained the Certified Distressed Property Expert Certification. A Certified Distressed Property Expert® (CDPE) is a real estate professional with specific understanding of the complex issues confront the real estate industry, and the foreclosure avoidance options available to homeowners. Through the comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.

The current U.S. housing market has caused untold stress and heartache for many American families. Foreclosure is one of the most devastating financial challenges that a family can face and one of the many that can be avoided. The options available for foreclosure are many. The following is a brief explanation of all these solutions, including their benefits and drawbacks.

Reinstatement

A reinstatement is the simplest solution for a foreclosure, however it is often the most difficult. The homeownersimply requests the total amount owed to the mortgage company to date and pays it. This solution does not require the lender’s approval and will ‘reinstate’ a mortgage up to the day before the final foreclosure sale.

  • Benefit: Does not require the mortgage company or lender’s approval.
  • Drawback: Requires that a homeowner be able to pay all back payments, fines, and fees.

Forbearance or Repayment Plan

A forbearance or repayment plan involves the homeowner negotiating with the mortgage company to allow them to repay back payments over a period of time. The homeowner typically makes their current mortgage payment in addition to a portion of the back payments they owe.

  • Benefit: Allows the homeowner to catch up on payments over time.
  • Drawback: Requires that a homeowner be in a financial position to pay not only their current mortgage, but also a portion of the back payments owed. Some mortgage companies will require a homeowner to ‘qualify’ for forbearance.

Mortgage Modification

A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. These typically result in a lower payment to the homeowner and a more affordable mortgage.

  • Benefit: Reduces the payment a homeowner is required to make on a monthly basis and may reduce the principal balance of the loan.
  • Drawback: Requires that a homeowner ‘qualify’ for the new payment and will often require full documentation. Lender has to be actively pursuing modifications.

Rent the Property

A homeowner who has a mortgage payment low enough that market rent will allow it to be paid, is able to convert their property to a rental and use the rental income to pay the mortgage.

  • Benefit: Allows homeowner to keep property indefinitely.
  • Drawback: The issues that can arise with a rental property are many, and rent often does not cover the full cost of property ownership and maintenance.

Deed-in-Lieu of Foreclosure

Also known as a ‘friendly foreclosure’, a deed-in-lieu allows the homeowner to return the property to the lender rather than go through the foreclosure process. Lender approval is required for this option, and the homeowner must also vacate the property.

  • Benefit: Many times in a successful deed in lieu, the lender will forego their right to a deficiency judgment.
  • Drawback: Requires that a homeowner vacate the property, and a deed-in-lieu may be reported to credit bureaus as a foreclosure.

Bankruptcy

Many have considered and marketed bankruptcy as a ‘foreclosure solution,’ but this is only true in some states and situations. If the homeowner has non-mortgage debts that cause a shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these debts, this may be a viable solution.

  • Benefit: Does not require lender approval.
  • Drawback: If a homeowner cannot afford their mortgage payment, a bankruptcy will only stall—not stop—the foreclosure process. Bankruptcy can be costly, is damaging to credit scores, and can only be declared once every seven years.

Refinance

If a homeowner has sufficient equity in their property and their credit is still in good standing, they may be able to refinance their mortgage.

  • Benefit: In some cases, this will lower payments.
  • Drawback: In today’s market, a refinance will almost always raise mortgage payments, and is an expensive process.

Servicemembers Civil Relief Act (military personnel only)

If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act. The American Bar Association has a network of attorneys that will work with servicemembers in relation to qualifying for this relief.

  • Benefit: If qualified, this will lower payments on all consumer debt in addition to mortgage payments.
  • Drawback: Must be active military to qualify.

Sell the Property

Homeowners with sufficient equity can list their property with a qualified agent that understands the foreclosure process in their area.

  • Benefit: Allows homeowner to avoid foreclosure and harvest some of their equity.
  • Drawback: In many cases today, homeowners do not have sufficient equity to sell their property without negotiating a short sale (see next solution).

Short Sale

If a homeowner owes more on their property than it is currently worth, then they can hire a qualified real estate agent to market and sell their property through the negotiation of a short sale with their lender. This typically requires the property to be on the market and the homeowner must have a financial hardship to qualify. Hardship can be simply defined as a material change in the financial stability of the homeowner between the date of the home purchase and the date of the short sale negotiation. Acceptable hardships include but are not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or unplanned relocation, and more.

  • Benefit: A short sale allows the homeowner to avoid foreclosure and salvage some of their credit rating. This also keeps foreclosure off the individual’s public record, and in many cases will allow the homeowner to avoid a deficiency judgment. Borrower may qualify for another mortgage in as little as 24 months (as opposed to five years for a foreclosure).
  • Drawback: Short sales can be a trying process in which a homeowner is best served by contracting with a qualified real estate agent to guide the way. 

This represents only a summary of some of the solutions available to homeowners facing foreclosure. Please call me today for a free confidential evaluation of your individual situation, property value, and possible options. If you or anyone you know if at risk of foreclosure please fill out this short form and we will be in touch with you as quickly as possible.

How to Sell a House FAST for Top Dollar

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If you are looking to sell your home, it’s a safe assumption, that you’re looking to sell it as quickly as possible for as much money as possible. After all, selling a home under the best of circumstances is quite stressful. Selling it and ending up with a price that is well below your original asking price can be downright impossible.

If you are looking for ways to sell your home fast and make as much money as possible while doing it, we have some experience that might help. Strategic Realty and its trusted brokers are experts in selling property in Central Oregon.

Below are some top tips for selling your home fast, and some of the most impactful things you can do might surprise you!

Assessment and Preparation of your Home

There are many things that can affect the value of your home in Central Oregon. Real estate cycles, our seasonal market conditions, the economic trends, supply and demand, and of course even the number of homes currently listed for sale. Assessing and positioning your home for sale is an important step where money can be made. Perform an in-depth analysis of where the market tells you your home fits. As most homeowners can only see the currently available homes on the market, this will usually take a qualified professional with access to deep statistics on past sales.

Focus on the things that you can control like; curb appeal, condition issues, online marketing, and exposure to the buyers in our marketplace. You will want to assess your financial goals, the number of comparable properties for sale and get your home show ready.

Add Value Through Home Improvements

One of the best ways to sell your home fast in Central Oregon for the greatest price is to make desirable renovations to your home that can improve the value by thousands of dollars or more. For example, based on many professional studies, doing a job like a bathroom remodel can increase the value of your home significantly. Updating countertops, windows, trimming the bushes, and getting a fresh paint job can also have a major impact on the final amount your home will sell for.

Before you decide to go through with any type of home improvement with the hope of increasing the value of your home, you should talk with a REALTOR® to learn about how much the improvements you are considering will really impact the final value. After all, you do not want to spend thousands of dollars on a renovation that will end up making your home harder to sell? Make sure that you will get a great return on the new expenses you are adding to your home. Also know that a clean, well-staged, uncluttered home always has better odds of getting a higher price.

Know your Target Buyers Needs

Obviously, the best time to sell is during a seller’s market, because a seller’s market condition is going to push prices up. That is especially true if you are selling a home that offers people a ton of value. No matter the market you will want to think about who your target customer is when you’re selling. For example, if your home has a large number of bedrooms and is in a great public school district, your home may be more valuable to a young family. Or if you have a home with a master bedroom on the first floor, that is in a great location close to shopping, doctors, and entertainment your home could be in more demand from retirees. Think about comparing your home to the new construction homes in the area. How does it compare?

Keep in mind if you have the upgrades that are in high demand it could affect the value of your home. Dark cabinets, ceramic tile floors, laminate countertops, dark or jewel tone paint, will all decrease a home’s value since they tend to be dated and out of style. Upgrades that are in demand are quartz countertops, light-colored custom cabinets, light washed wood-tone floors, and open floor plans that include kitchen, living, and dining rooms as open space.

Price it RIGHT The First Time

Sometimes all it takes to sell your home fast is the right price. Your goal should be to set the right price from the beginning. Setting a price that ‘you believe it’s worth’, rather than what ‘it is actually worth’ may feel like a good idea, but this can end up hurting you in some really important ways. Even if you find a buyer to pay an unusual price, you still have to convince their appraiser that the home is worth it.

First and foremost, if you have to keep reducing the listing price, it will lead to more days on the market which can sometimes lead to buyers asking “what is wrong with this home?”

This delay in a sale could end up looking really bad for the home. Even worse, you could end up reducing the price even lower than something that you would actually be comfortable selling for. Additionally, when buyers see price reductions they may feel like they can make low-ball offers due to the perceived loss in value.

When you are thinking about putting your home on the market, consult with the local Central Oregon REALTOR®, at your home, in order to get the most accurate home value. Many of the online home value tools may give you ‘an idea’ of price, but these values can vary wildly and are often proven to not be accurate. Zillow Home Values in Central Oregon are NOT precise or accurate. The valuations online are based on computer algorithms that can not view the inside of your home, see the condition, or give you the most accurate information. Only a professional who does this every day can give you the most up to date information. Giving you a price without seeing it in person is like a Doctor giving you a diagnosis before they have even seen you.

Understand The Local Market Trends

One of the most important things you should keep in mind when you are preparing to put your home on the market for sale is the location and the neighborhood. Your home’s competition will ultimately determine its value. Currently we are seeing more inventory and slower pace of sales driven by higher interest rates. If new construction homes are available in your local market, then they are driving the competition. Even if your home is just a few years old, it still has to offer better value than what buyers will will see in the new construction homes.

One of the top things you can do to sell your home fast for the most money is to talk with a local REALTOR® and pick their brain. Setup a meeting in your home and discuss not only the current market conditions but also the condition of your home and possible improvements you can make. Give us a call today and setup an appointment. We can help you create a plan to set you up for success!

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!

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No matter what you’re trying to accomplish with real estate, we’re here to help. Let’s start with a real estate conversation. Let us know how I can help.

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