A level head in real estate since 1989.

Inside Real Estate
Let Me Help You!
503-312-8038
Follow My Blog
lesliejones
Leslie Jones
Principal Broker
    Years of Experience: 22

    GRI: Graduate, Realtors Institiute
    CDPE: Certified Distressed Property Expert
    Green: NAR Green Designation
    CIAS: Certified Investor Agent Specialist

Direct: 503-312-8038

Office: 503-287-8989



Company Info

RE/MAX equity group
237 NE Broadway
Portland, OR
503-287-8989


Real Estate Tools

Schoolsschools

Communitiescommunities

Calculatorscalculators

Archive for April 2011

I Love a Road Trip! Portland to Points South

Friday, April 29th, 2011

My daughter is 14, and fast approaching the time when a family car trip won’t rank on her list of things to do.  But for now, we’re still good.  This timing coincides with my realization, not that I had to think all that hard, that she has not been to Yosemite!  “The Valley” played a big part in my childhood and adolescence, and I really do want to share it with her.  As with many road trips, once you’re driving that way…   So as the trip started taking shape, we decided to add on a visit to my dad’s mountain cabin, located on the eastern slope of the Sierra Mountains, a few hours south of Mammouth.  And since we’re driving, and she’s never been to Crater Lake, we’ll stop there on our way down.  Yet to take shape is the drive back.  Do we just drive the quickest routes and get home in two days?  Or do we take advantage of some of the countryside we could pass through and take longer?

Here are some details.  We’ll leave Portland on a Tuesday morning and drive to Crater Lake for a late lunch at the lodge.  The best route looks to be I-5 to Oregon 58, and then US 97.  Estimated driving time is four hours and fifty two minutes.  I’ll get us reservations for lunch at the lodge to be sure we aren’t disappointed.  After lunch and some sightseeing we’ll head west to I-5 and south.  I’d like to get pretty far that day, but will stop in Yreka for the night.  I don’t want to be too tired and weary for the Mt Shasta portion of the drive.  On a previous trip we stayed  at the Best Western Miner’s Innin Yreka.  It was forest fire season then.  Yreka was full of smoke and our motel over ridden by fire fighters.  This trip will be in mid-August, so this could be a repeat.  My friend Lucy Wainwright Roche does a great song, “Next Best Western”.  We’ll think of her.   YouTube Preview Image

The  next day we’ll get up and out early for the drive to Yosemite.  Our lodging choices, since we were somewhat late in planning this trip were either the tent cabins in Curry Village or the Yosemite View Lodge at El Portal.  We’re meeting family there, and few in our party were excited by the tent cabins, walk to bathrooms and reported presence of pesky bears.  And, The Valley can be quite hot in August.  So we’ll be at the Lodge at El Portal, with a bit of elevation and coolness and access to bathrooms sans bears.  We’ll have three days in Yosemite which will give us ample time for hiking, bike riding and lunch at the venerable Ahwahnee.   As a kid we were always on our way backpacking and didn’t seem to have the money for such luxuries.  I realize that part of these trips with my kid is reliving or re-doing things I did as a kid…my way.  So lunch at The Ahwahnee it is.  I hope she enjoys it.

From Yosemite we’ll head up over Tioga Pass on Highway 120 to Highway 395, and then we’ll head south to Big Pine.  Tioga is the highest highway pass in California, a bit shy of 10,000 feet above sea level.  The drive is spectacular, and nothing like the passes in the Cascades of Oregon and Washington.  Highway 395 meanders though high desert, sheep country and of course past Mammoth Lakes.  We’ll arrive at my dad’s  mountain cabin by early afternoon, and hope not to interrupt his afternoon nap. 

Dad’s cabin sits a short walk above the Big Pine Creek Trailhead.  For years dad rock climbed in this area; Palisades Glacier, Temple Crag and all that.  As a kid we often camped at Third Lake.  In his later years he bought the cabin, which is a Forest Service lease.

A few photos of the peaks up the Big Pine Creek trails:

And lastly I had to include this one of the cabin in winter.  There is a cabin in there:

For now, the plan is, after a few nights at The Cabin, to make a fairly quick drive back to Portland.   Mapquest predicts the drive will take 14 hours and 49 minutes; two days as I’ll be the only driver.  As there are several months between ow and the beginning of the trip, I can imagine a loner route home could emerge.

When Can it Make Sense to Spend Money to Sell that House?

Saturday, April 23rd, 2011

The April/May issue of Realtor magazine (the trade magazine for the National Association of Realtors) has some great tips both for Realtors and home buyers and sellers.  One that caught my eye is an excerpt from Home Gain’s 2011 Home Sale Maximizer Survey on “Worth-the-Price Fix-Ups”. 

In this market we’ve been saying we’re in a pricing war and a beauty contest.  The market doesn’t seem to reward such big fix ups as kitchen remodels by giving a return on that investment.  And for awhile we’ve been advising sellers not to spend much of  anything on preparing a home for sale.  But smaller projects may have a place. This market has lots of properties in not great shape, combined with buyers expecting the picture perfect, like they see on television, homes.  What to do?

The Realtor article highlights six projects under $1000, and their average expected return.

#1 Cleaning and decluttering; estimated cost: $290, return: $1990. 

#2 Brightening (clean windows, replace curtains, update lighting fixtures etc); estimated cost: $375, return: $1550. 

 #3 Smart staging (rearrange furniture, new accessories etc);  estimate cost: $550, return: $2194.

#4 Landscaping enhancements (bark mulch, add bushes and plants); estimated cost: $540, return: $1932.  

#5 Repairing electrical or plumbing (ground fault interrupt outlets where needed, under sink leaks etc); estimated cost $535, return $1505. 

#6 Replacing or shampooing dirty carpets; estimated cost $647, return: $1739.

In general, buyers are drawn to houses where the seller has put some effort getting their home ready to sell.  Many buyers are turned off by and won’t even consider houses that feel as though they are in disrepair.  Sometimes the difference in doing some work before marketing a home can be the difference in the home selling or not.  Lastly, items that will most certainly be issues in the buyer’s home inspection should be addressed up front.  Some repeat offenders we see in most inspections; working and properly vented bathroom fan, pressure relief valve and earth quake strapping on the hot water heater and improper hand rails (especially on basement stairs).

I’m glad to give your house the once over if you have questions about potential projects. Give me a call.

A Bit More on Short Sale vs. Foreclosure and such

Thursday, April 21st, 2011

Through our RE/MAX Regional leadership, I had an opportunity to hear some updates from Bank of America  on their short sale processes. 

As with many lenders, through that lovely process of mortgage backed securities, the majority of mortgages are actually owned by investors; retirement funds, municipalities , private investors and the like.  In the case of bank of America, approximately 72% of their loans are investor owned.  In short sales, Bank of America must confer with and get the approval from these investors.  So B of A is only able to fully negotiate on 28% of their loans.  No wonder this is a convoluted process.

Just before the mortgage crisis first hit, in 2006, Bank of America had four people working in their loss mitigation department.  Today they have approximatley 2800.  We see this reflected in their approval times.  In 2009 it took an average of 65 days to get an approval on a short sale.  Today that number has dropped to 51 days.

In tracking foreclosures vs. short sales, Bank of America has found they get an average of 18% more return on a short sale vs. taking the house to foreclosure.  In time, one can hope investors will get with the program and be more willing to work with short sales.  We were assured that investors make their decisions completely based on what will bring them more money (or less loss as the case may be).  So while we often think a cash sale might be more attractive than a financed sale, the approved short sale will always be the one that nets the investor the most money.

Lastly, most short sales these days do not consider the sellers remaining debt as paid in full, nor their obligation fulfilled.  Instead, the seller is considered to still owe that difference between the loan amount and the sale price.  We’ve been wondering if and when we’d start seeing lenders going after that deficiency.  Bank of America says, at least for their loans, whether or not to pursue the deficiency will be up to the individual investors.  So we won’t be seeing  any blanket policies on deficiencies.

The Ongoing Question; is a short sale or foreclosure better?

Monday, April 18th, 2011

Liz Pulliam Weston, in her “Money Talk” advice column, ran an interesting question and response regarding how short sales and foreclosures are viewed by our friends at Fair Issac, the folks who almost invented credit scoring formulas. 

In the real estate industry, the common view is that a short sale is a better option for a homeowner than foreclosure for a variety of reasons.   Often foreclosures take longer and so the homeowner is usually delinquent on the payments longer.   Foreclosures and how they appear on a credit report can effect one’s ability to get certain jobs; security, banking, payroll, some schools, finance etc.  Foreclosures have been around a long time so we’ve had a chance to see trends in how they are reflected in credit scoring.

Until recently we’ve not had enough short sales concluded by enough different borrowers to get a sense of those credit score trends.   In Liz Pulliam Westons’s column in The Oregonian, she mentioned a link to a Fair Issac Banking Analystics blog.  It is interesting to see the credit damage from mortgage delinquencies and the varying types of short sales, foreclosures, deeds in lieu of foreclosure and what not.   As far as credit scores specifically go, short sales and foreclosures look to be quite similar.  Keep in mind, when viewing this chart that the comparison is just for how Fair Issac sees things.  Scroll down and read some of the comments that do a good job talking about the other real world factors that can make one option, foreclosure or short sale, better than the other.

If you have questions about short sales or foreclosures, I am a trained Certified Distressed Property Expert and would be glad to talk with you.

New Portland Area Market Stats

Saturday, April 16th, 2011

Our multiple listing service just released the most recent market stats for March 2011.  Just as our office has been seeing a marked increase in activity, the region has also been doing more real estate business.

Both closed sales and pending sales are up from February 2011.  Comparing March 2011 to February 2011, closed sales jumped a whopping 50.4% while pending sales rose 26.5%.  Spring is the begining of our busy season and these numbers back that up.   My buyer clients have been bemoaning the lack of new inventory on the market.  It seems like they just don’t have that much to choose from.  They are right. There are fewer houses on the market than there have been since May 2010, with only 7.1 months of inventory.  Since January 2009 we’ve only seen inventory this low twice.  And in January 2009, our inventory was at 19.2 months!

Year to year, the numbers are down.  Closed sales are down 10.2% from March 2010 to March 2011. Pending sales for the same comparison are down 16.2%.  I am not surprised by this as last spring we were staring down the end of the homebuyer tax credit.  This created a bit of an artificial bump in real estate business.

Click here for a link to the Portland area report from RMLS.

Smog Eating Roof Tiles?

Tuesday, April 12th, 2011

A recent ditty in the Journal of Light Construction (yes, I do read scintillating things don’t I?) touched on smog eating roofs being installed by KB Homes.  My curiousity was piqued.

MonierLifetile,  a Boral roofing company, indeed makes such a tile.  Their website explains the technology, ” The BoralPure™ SMOG-EATING Technology works via a catalyst embedded in the upper portion of the roof tile. When exposed to sunlight it speeds up oxidization reducing nitrogen oxide, which can be generated from fossil fuel burning processes resulting from operation of motor vehicles. Working much like a catalytic converter does in a car; SMOG-EATING Tile transforms harmful substances into safe ones, protecting the quality of the air we breathe.”

The claim is that 2000 square feet of the tile eats up nitrogen oxide equivalent to a car driving 10,800 miles.  That is pretty good.  Now, a 2000 sq foot roof is a big roof.  Per the JLC article, KB Homes is intstalling these roofs in California, where I suppose there are more ranch style homes, and hence larger roofs.  A quick search of KB Homes website didn’t turn up anything on these roofs, though I’m guessing it is contained within their Energy Star or Built to Order sections.  As an aside, I did notice that KB Homes is using the Home Energy Performance Guide and provides a performance profile on each of their new homes.  Kudos to KB Homes.

Hawthorne/Mt. Tabor Sweetie

Tuesday, April 5th, 2011
We’ve just put this sweet bungalow on the market.  It is nestled on the quiet part of SE 49th, just south of Hawthorne.  This location gives great access to  both Mt Tabor Park for outdoor activities and Hawthorne Blvd. for great food, shopping, night life.  Not to mention public transportation.    Mt Tabor Park is one of Portland’s jewels, with so much to offer.  This park has 190 acres which includes tennis courts, basket ball,  amphitheater in the volcano’s “cone”, reservoirs, hiking trails, the soap box derby route, an off leash dog park, play grounds, covered picnic areas and sweeping views.
 

1839 SE 49th Ave, Portland, Oregon

 The house is listed for $389,900.  It has many classic features of an old bungalow including lots of unpainted woodwork and built-ins, hardwood floors and a lovely fireplace: 

 

The kitchen was remodeled adding space and finished with subway tile, cork floors, classic cabinetry and light fixtures.  A sun/breakfast room is adjacent. 

 

There is a bedroom, bath and den on the main floor, and a spacious master bedroom, third bedroom and bath upstairs.  The basement is unfinished, with plenty or storage and project space.  The house has forced air gas heat and on demand (tankless) hot water. 

For more information about this house, contact me at 503-312-8038 or leslievjones@gmail.com.  The house will be open on Sunday, 4/10/2011 from 1:00 – 3:00 pm. 

My Rant About Short Sales; and it isn’t what you’d think

Friday, April 1st, 2011

Most of you by now are familiar with the term short sale; when the market value of a home for sale is less than the indebtedness.  Many realtors have ranted for a few years about the ineptness of the banks holding those loans in processing and responding to and closing short sale transactions.  This is not that rant.

Over time, the lenders holding the loans on short sale properties have figured out how to do them.  They have instituted processes and formulas allowing these transactions to be addressed on a predictable timeline with predictable milestones.  In addition, some government programs, HAFA and HAMP have added layers of steps and protections for sellers in this position.  Generally, and there will always be exceptions, short sales can move more quickly and smoothly than they did a few years ago.

This rant is about the plethora of real estate agents who consider themselves short sale specialists and the wild variety of medieval theories and processes these agents have put into play.  These “experts” see THEIR method as the best, even if it thwarts multiple listing service rules and regulations and may not be in the best interest of their client, the seller.  An aside; being a realtor can take a fair amount of confidence and ego, especially in marketing yourself.  But some of us have a hard time keeping our ego out of other people’s transactions (a whole different rant).

Here is MY short sale method, which of course, is the right one ;)    A buyer writes their offer subject to the approval of the underlying lender.   The seller may counter that offer to achieve what they hope is the best price.  That best price offer is then submitted to the lender for approval.  No other offers are solicited, the house is marked as having  a pending offer.   Once the lender approval is obtained, the transaction becomes “normal” with timelines for inspection and such commencing at that time.

Some of the other schemes out there, that drive me crazy.

1)  Multiple offers are collected and forwarded to the underlying lender at various times, while the listing remains active in RMLS.  My rant: the poor lender is trying to process this file, but keeps having to reset the tasks and such as these offers come in; clogging the system and slowing things down.  In addition, buyers think properties are available when they may well not be.   Who knows?  Our multiple listing service has a spot  to show whether or not any offers have been received which can at least give agents and their buyers a hint that it might not be available.  Many agents decline to use this field.  Another note; sellers needing to do a short sale often have the clock ticking on an impending foreclosure.  Getting a short sale approved quickly is often a huge priority for a seller.  Good buyers who are ready to buy and pre-approved may not wait around for this ongoing process; often leaving lowballers and those of questionable financial ability to ride it out.  Getting approval, with foreclosure looming and having a sale fall apart on the buyer’s financing is not in the seller’s interest either.

Another method: The seller doesn’t sign a buyer’s offer.  One or more unsigned offers are sent to the underlying lender.  Unsigned contracts don’t bind anyone to anything. So the sending multiple offer issues above are compounded by nothing being binding.  Lord knows what the lender is approving or how the buyers may or may not be feeling once they get a response.  This has the same issues as above.

In approving short sales, most lenders limit, usually to zero, the amount of money or assets a seller can take from the transaction.  The lender doesn’t want to take a loss while the seller walks away with $’s.  The lender does, then, look at the seller’s assets and if there is cash lying around,may require the seller to pay some of that (retirement accounts are generally exempted).   Many houses, when they were bought, had personal property as a part of the transaction; that cool stainless steel fridge,  wolf range etc.  Now, when going into a short sale, some agents are suggesting the seller remove or hide these appliances from the lender. The seller can then sell these separately and pocket the money.  This feels a bit like loan fraud; hiding something froma  lender is rarely good.  I don’t wajt any part of one of these transactions.  So in a sense, those houses aren’t really on the market either.

As a managing broker who actively lists and sells real estate I see new versions of short sale “prowess” daily, and long ofor a simpler time.

Market Recap

  • Avg. Sales Price: $276,800

  • Avg. Days on Market: 165

Free Market Alerts

Get local reports delivered to you

 
Ask Me a Question

Do you have questions you need Answered?

Recently Asked Questions
    Featured Listings
    » View More Listings

    - Copyright © 2010 Inside Real Estate, LLC

    Inside Real Estate does not endorse the agents on this site, and does not guarantee the content submitted by the site's members. Blog and page entries, content, and other information contributed by agents that are members of the site are accountable to the particular agent.