Eugene Real Estate Podcast with Gary Raze

Q: Where’s Our Market and How Can I Help Those in Need?

Garyraze@remax.net (Gary Raze) — Mon, 21 Sep 2020 11:53:00 -0700

Although the real estate market is hot, our main focus is on helping those in need.

In August, the Eugene real estate market actually saw a 9% decrease in listings. Part of this could be attributed to COVID concerns, but it’s something to keep an eye on nevertheless.

On a similar note, our inventory continues to be quite low. Nationally, the U.S. average is three months of inventory. Here in Lane County, we have just one month of inventory. A balanced market is around six months of inventory and anything less is a seller’s market.

The median price in August 2020 for Lane County was $328,000, up 11% from August 2019. The average time on market is just 36 days.

What’s in store for the future of our market? A national survey I read this morning is predicting that prices will continue to rise, inventory will remain low, and interest rates will remain around 3%. That’s good news all around for buyers and sellers.

What’s not good news is what’s happening around our state. Lane County and several other areas of the state are experiencing extreme hardships due to wildfires and many of our friends and family are without homes.

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We want to help as many people as possible both financially and materially.

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We want to help as many of you as possible through the donations of funds and items that we are currently collecting. I encourage you all to find as many ways to help as possible. You don’t have to donate money; you could help people find lodging, store possessions, house pets, or move livestock to name a few. I’ve lived in this state for 73 years and have never seen this kind of catastrophic event in my life. Reach out if you’d like to join us in helping those in need.

If you have any other questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Q: Could You Benefit From a Refi?

Garyraze@remax.net (Gary Raze) — Thu, 3 Sep 2020 13:52:00 -0700

Thinking about a refinance? Here’s some great info to consider.

There are plenty of reasons to refinance a home, but of course there are also just as many reasons to hold off on making that financial decision. You can only know whether a refinance is in your best interest as a homeowner if you have all the basic facts. What, exactly, is refinancing good for?

There are two common types of refinance, the first being a cash-out refinance. This is typically used whenever a large sum of money is needed to cover other expenses like medical bills, major home improvements, a child’s college tuition, or even to pay off high-interest credit card debts. Of course, debt consolidation does present a pitfall; if you lower your credit card debt significantly but fail to keep that debt low afterward, then you haven’t gained anything. Provided you implement good money management skills, this type of refinance can be a smart play.

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Lowering your rate from, say, 5% down to 3% is huge savings!

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The other popular option is a rate refinance, the purpose of which is to lower the interest rate on your mortgage. Lowering your rate from, say, 5% down to 3% is huge savings! If a refinance were to cost you $4,000 once but save you $200 every month after, it’ll take less than 20 months to break even. From then on, you’ll be saving incredible amounts of money. A rate refi, therefore, is also a smart move financially.

I encourage you to check in with your financial advisor or lender for a clearer picture of your money makeover. In the meantime, you can give me a call or send an email if you have real estate-related questions or are ready to buy or sell in today’s market. I’m always here to help!

Your Latest Lane County Market Update

Garyraze@remax.net (Gary Raze) — Mon, 27 Jul 2020 15:16:00 -0700

According to the latest numbers, Lane County is a seller’s market.

What’s happening in the Lane County market now that we’ve reached the midpoint of 2020? Let’s start by reviewing the year-over-year statistics from last June.

Listings are down 18% compared to June 2019, but pending contracts are up 5.6%. This is interesting because it means we have very low inventory. Last month, I was hopeful because our inventory had increased to two months’ worth, but now we’ve dropped back down to 1.3 months (roughly 37 days).

In a normal market (which we’d love to see again), there is usually about six months’ worth of inventory. At that number, buyers and sellers are on an equal footing. At the moment, we’re in a strong seller’s market, so you can see why there are so many multiple-offer situations happening.

Home prices, meanwhile, continue to ratchet upward: The average price is $338,000, and the median price is $310,000. Just a quick reminder: The median price is the price near which most homes are selling, whereas the average is what you get when you add up all the sale prices for homes sold in a specific area within a specified time frame and divide that total by the number of properties sold.

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The average price is $338,000, and the median price is $310,000.

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Here are the latest interest rate averages as of July 15:

Conventional mortgage: 2.875%
15-year mortgage: 2.5%
VA, FHA, and USDA loans: 2.75%

It seems like I keep saying this over and over, but these rates are record lows. Just when we get used to a new low, they drop even lower! Now, I’m not sure when this will end, but sooner or later, they’ll creep back up.

As always, if you want to know more about our Lane County market or have any real estate needs at all, don’t hesitate to reach out to me. I’m happy to help.

Q: What Do You Need to Know to Take Advantage of Our Market?

Garyraze@remax.net (Gary Raze) — Fri, 10 Jul 2020 10:42:00 -0700

Here’s what you need to know to take advantage of our market.

If you’re looking to take advantage of our Eugene real estate market, there are two important changes that have occurred over the past few months (primarily due to the pandemic) that you need to be aware of.

First, interest rates have dropped. Last year, we thought they would go up during 2020, but the bottom line is that they haven’t. Last year they averaged roughly 4.2%, but this year the average has fallen to 3.2%. They may creep back up in the future, but at the moment they’re historically low.

If you’re a buyer, this means you must do your part to lock in a low rate. Just because you get approved for a loan doesn’t mean you’ll get the best rate. You need two factors working in your favor to get a low rate: your debt ratio and credit score. You need to improve your debt ratio and lower your debt.

Second, the peak listing season has been delayed to June through August, so don’t panic—there is plenty of time to get into the market. I will say this, though: It’s not about timing the market; it’s about how much time you are on the market. Year over year, the median home price has risen from $285,000 to $320,000. This is a pretty steady increase, and I’ll assume it will continue to rise.

This means the best time to buy a house is whenever you can. The housing market will always increase over time, and right now it’s fair to think that it will increase at a yearly rate of about 5%.

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The best time to buy a house is whenever you can.

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In other words, if you bought a $300,000 house right now with a monthly mortgage of $1,800, you’d gain $83,000 worth of equity in five years. Keep in mind, that’s just the appreciation. That doesn’t even coin the five years of payment toward your principal. That also doesn’t count all the tax benefits you receive just by owning a home. Think about that: You can increase your equity by $83,000 just by living in a house. On the other hand, if you rented for five years for $1,800 a month, you’d pay the property owner $108,000 during that time.

Anyone who knows me knows that I’m a proponent of homeownership, and that’s just one example of why you should get into a home as quickly as you can.

If you’d like to start your home buying journey or have any real estate needs, don’t hesitate to reach out to me. I’m here to help.

Q: Why Is Our Market Like a Coiled Spring?

Garyraze@remax.net (Gary Raze) — Thu, 11 Jun 2020 09:02:00 -0700

Our market has a lot of pent-up demand that will soon be released.

Right now, our real estate market is like a coiled spring. We know that it’s getting ready to explode soon. For the last few months, inventory has risen slightly, but things are changing now. Our average price is still up year over year, and this summer will be like a regular spring market. Buyer demand is increasing, and more and more sellers are getting their homes on the market. To learn more, watch this short video.

Q: How Do You Buy & Sell During COVID-19?

Garyraze@remax.net (Gary Raze) — Tue, 12 May 2020 13:29:00 -0700

Buying and selling homes during COVID-19 isn’t as hard as you’d think.

How in the world can you buy or sell a house during the COVID-19 pandemic? It’s actually not as hard as it might seem.

If the property is vacant you can often view it in person with your Realtor as you would normally. However, if the home isn’t vacant, things will go a bit differently.

For an occupied home, your Realtor will need to bring preventative measures like masks and gloves to protect you, the homeowners, and themselves. Have the Realtor be the one to open cupboards, drawers, and doors with a gloved hand.

Many Realtors have also implemented sign-in sheets; these can help with contact tracing—if someone involved with the transaction does come down with COVID-19, we’ll be able to contact others who might’ve been exposed.

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It’s just safer to make sure that you, your Realtor, and the homeowner are being protected.

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One other, easy safety measure is to have only your Realtor go into the homes that you wish to view and have them do a virtual tour via FaceTime, Google Meet, or a similar app. Once you’ve selected a home to put an offer on, then you and your Realtor can go in for an in-person walk-through.

Since Oregon isn’t a hotbed of viral spread we’ll probably begin to relax our quarantine measures in the near future. For now, it’s just safer to make sure that you, your Realtor, and the homeowner are being protected.

If you have any questions about buying or selling amid the pandemic or concerning real estate in general, please reach out via phone or email. I would love to help you.

The Main Dilemma for Homebuyers and Sellers Right Now

Garyraze@remax.net (Gary Raze) — Tue, 21 Apr 2020 12:46:00 -0700

Whether you choose to enter the market now or wait until later doesn’t matter as much as the question of how the current conditions can help you. Here’s what I mean.

A lot of buyers want to buy and a lot of sellers want to sell, but when is it going to happen? We’re navigating a delicate crisis with plenty of health and safety concerns involved. Many are unsure whether they should wait or whether they should list now. Either option will work, but it all depends on what the pros and cons mean for your specific situation. To learn more about them, watch this short video.

The State of the Market During the COVID-19 Pandemic

Garyraze@remax.net (Gary Raze) — Fri, 10 Apr 2020 11:00:00 -0700

The nationwide stay-at-home ordinances have presented a challenge for all industries, including real estate. Here’s how we’ve adapted.

These are trying times, but rest assured that we’re all in this together. Since many are unsure about how the world can continue to function with everyone sheltering in place, today I thought I’d give you an update on how the market is doing during quarantine, as well as how we in real estate are adapting to the challenge. Many senior banks are allowing borrowers a forbearance on their mortgage payments if their income has been affected by the outbreak. However, there is a difference between forbearance and deferment, so be sure to speak with your lender about the differences and what they mean to you. To hear more, watch this short video.

How Are Mortgage Rates Doing Right Now?

Garyraze@remax.net (Gary Raze) — Thu, 19 Mar 2020 11:27:00 -0700

I’m here with a quick update on the current state of mortgage interest rates. Here’s what you need to know.

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Ron Smith from Flagstar Mortgage joins me today as stories of low interest rates dominate the news. We’ve got a quick update for you today on where rates are now and where they might be headed in the future.

Last week, interest rates dropped to all-time lows. Ron has been locking in rates for homebuyers near 2%, which is unbelievable. He’s been in the industry for over 30 years and has never seen rates this low. About 90% of Americans who already have a mortgage can benefit from refinancing right now, too.

Let’s say you locked in a 4% rate a few years ago. If you refinanced now to 3% or lower, in just a few years you’d recover that difference and recuperate the costs. Then you’ll be able to continue saving that money each month for the life of your loan. It doesn’t always make sense, but when it does, you can save a lot of money and consolidate other debt into a new mortgage.

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You can even consolidate other debt into your current mortgage.

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There is a danger in this, though. If you do get rid of your credit card debt that has a 17% rate and roll it into a 3% mortgage, it makes sense on paper. However, the hard part is keeping the credit card debt from going back up again. When that happens, what have you really gained?

The main purpose of consolidating debt is to get it paid off. A client that Ron is working with right now will have to add $1,000 to his mortgage payment every month, but it’s part of a plan; he’ll be really happy 10 years from now because he’s paying off that debt and building wealth.

If you need to get a hold of Ron for any questions about refinancing or mortgages in general, give him a call at 541 284 8036.

If you have any other real estate-related questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you.

If You Need to Buy and Sell, Which Comes First?

Garyraze@remax.net (Gary Raze) — Mon, 24 Feb 2020 06:50:00 -0800

Buying and selling at the same time isn’t easy, but it certainly can be done. Here’s how we can help.

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If you need to sell your current home and buy a new one, how should you go about it? The good news is that you have options.

If you can buy a new home without having to sell first, you’re in a much better position. You can take the time to find the right home, buy it, then put your current home on the market and move at your leisure.

However, most people are in a position where they need to sell first, then take the money from the sale to fund the new home purchase. You can make an offer that’s contingent on the sale of your home, but most sellers don’t want to accept those kinds of offers. Sellers won’t take a chance on you having to sell your property in order to sell theirs.

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You may need to find temporary housing if you sell first.

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Once you do sell and need to move, you’ll likely need to find temporary housing in the form of a rental, moving in with friends or relatives. Seldom does it work perfectly where you can buy and sell simultaneously and move seamlessly. It happens, but the odds are against you.

If you have a significant amount of equity in your home, you can take a Home Equity Line of Credit (HELOC) out to purchase your new home and have more time to sell your current home.

Buying and selling simultaneously can be a puzzle, but it can be easily resolved. We’ve helped a ton of clients in this situation and we’d be happy to help you, too.

If you have any questions for me in the meantime, feel free to reach out via phone or email. I look forward to hearing from you soon.

Should We Renovate or Buy New?

Garyraze@remax.net (Gary Raze) — Mon, 3 Feb 2020 06:23:00 -0800

Some people need to buy a new home, while others are better off fixing up what they already have. Here’s how they differ.

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If you’re debating whether you should buy a home that needs renovations or just buy brand-new, the answer may or may not come to you quickly.

If you want to renovate, you don’t need that much more of a house, just a little more space. Cost-wise, it makes real sense because you don’t need to spend a whole lot of money and it can make a significant difference. On a 1,000 square foot home, the average renovation costs between $18,000 and $50,000.

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The reasons for buying new are obvious.

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If you were to purchase a new 1,000 square foot home, that purchase would cost you easily $260,000, including the costs of moving and selling.

The reasons for buying new are obvious. You simply want a change, or a job or family situation necessitates it.

So, should you buy a new home or renovate the one you have? There isn’t an easy answer to this question unless you do this: Take out a piece of paper, split it in two, and write down the advantages on one side and the disadvantages on the other. Whichever has the most advantages and least disadvantages is the winner.

If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Buying an Older Home

Garyraze@remax.net (Gary Raze) — Tue, 21 Jan 2020 12:54:00 -0800

Here are a few issues to be aware of when buying a house over 50 years old.

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If you’re buying a home that’s over 50 years old, there are a few common issues for which you should keep an eye out.

First, check the plumbing system. The older pipes in these homes can sometimes be galvanized and rusted from the inside, which can impact flow and give you a poorer water quality. If this is an issue, you can simply replace the pipes with plastic ones and you’re all good. If your home doesn’t have a septic tank, you should also have a plumber inspect your property’s sewage lines connecting to the street. These pipes are generally cast iron, and they can also clog due to rust, old age, and tree roots. This inspection is relatively quick, easy, and inexpensive.

Next, check the home’s windows for their energy efficiency. Most older homes were built with single-pane windows, and if you don’t replace these with double-pane vinyl windows, you’ll let a lot of heat escape and accumulate dew and condensation, which can stain the wooden frames.

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If your ceiling does contain asbestos, you’re better off hiring a professional to remove it.

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Additionally, be aware that older houses tend to have home plans that aren’t very open, meaning they have lots of little rooms and smaller closets, but not many open spaces.

If you’re thinking of doing any sanding or woodworking to your new house, lead paint is another issue to consider. Lead paint isn’t dangerous unless you sand it down, which causes the lead to become airborne. After 1978, of course, lead paint was outlawed.

If the property has a popcorn ceiling, it could contain asbestos. This is another issue that’s easy to test for, but if your ceiling does contain asbestos, you’re better off hiring a professional to remove it than trying it yourself.

If the home is located in the country, you should get its well tested. Also, check whether the septic tank is large enough and its drain lines are clear. Septic tanks over 50 years old are typically 500-gallon tanks, whereas tanks nowadays hold anywhere from 1,000 to 1,500 gallons.

The bottom line is that older homes have a lot of charm, established landscaping, and—in many cases—are located in good neighborhoods, but you shouldn’t forget about these other things before purchasing one.

As always, if you have questions about this or any other real estate topic, or are thinking of selling a home soon, don’t hesitate to reach out to me. I’d be happy to help.

Happy New Year!

Garyraze@remax.net (Gary Raze) — Thu, 2 Jan 2020 08:56:00 -0800

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We just wanted to take a minute to wish you a happy New Year! It’s hard to believe that 2019 has come to a close. It’s been an amazing year thanks to your continued support. The things we’ve accomplished this year, and always, wouldn’t be possible without you. We so appreciate your business, referrals, and friendship, and we’re excited to see what lies ahead. The future is full of possibilities, and we hope you are as excited for this upcoming year as we are. Here’s to making 2020 our best year yet! If you are thinking of buying or selling a home this year, please don’t hesitate to reach out to us with any questions. As always, we are here to help. We look forward to seeing you in 2020!

The Future of Our Market

Garyraze@remax.net (Gary Raze) — Tue, 10 Dec 2019 11:31:00 -0800

With 2019 coming to an end, it’s time to discuss the future of our market.

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What does the future hold for buyers and sellers in our real estate market? You may have heard stories telling you that the sky is falling, but it’s not. On the contrary, the future is still pretty bright.

We do expect a housing shortage, unfortunately, and that will cause prices to continue to rise. Over the course of 2020, we expect appreciation rates to be around 5%, which is a slight drop compared to what we’ve seen in previous years.

With January right around the corner, a lot of people tend to start thinking about their goals for next year, and these goals include real estate. When setting your goals, it’s always good to be as prepared as possible when it’s time to pull the trigger. If you plan on selling in April or May, for instance, you should start fixing things up around your house right after Christmas so you don’t have to do it all at once. If you’re thinking about buying soon, talk to a lender now.

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When setting your goals, it’s always good to be prepared when you want to pull the trigger.

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On a final note, I have a request to make of you. The holiday season is in full swing, which means everything is bright and cheery, but it’s not a joyous time for everyone. Keep these people in your thoughts and make their world a little brighter if you can. For example, try bringing an extra plate of food to the nice lady down the street who doesn’t have any family. This kind of thing is great to have your kids or grandkids be a part of as a learning experience.

Until next time, if you have any real estate questions, don’t hesitate to reach out to me. I’d love to help you, and I hope you have a happy holiday season.

Is Homeownership Always Better Than Renting?

Garyraze@remax.net (Gary Raze) — Thu, 14 Nov 2019 12:09:00 -0800

Is buying a home always better than renting one? Not in every case, but in most cases, the answer is yes.

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Is homeownership always the right decision when it comes to the debate of whether to buy or rent? Let’s say that you’re renting a home now and thinking about buying, but you also know that you’ll be leaving the area within a few years. In this particular case, homeownership is probably not the best idea because you won’t build up enough equity to make the investment worth it. Even then, it could still be a good idea if you want home security for your family or to turn the home into a rental property. If you’re renting a home for $1,800 per month and you rent for three years, that’s $65,000 that you’ve spent on rent. What have you received? A home to live in, but no other financial benefits. No appreciation, no tax deductions.

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The money you spend on your home purchase will go towards much more than your rent.

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If you buy a home and the mortgage payment is $1,800 per month, that $65,000 you will spend in three years will not only go towards your rent, but for your interest and taxes as well. You will get a portion of what you’ve spent back at the end of the year, and continue to build up equity in your home over time. So homeownership isn’t the right decision in every single case, but it is a wise move in most cases. If you have any additional real estate-related questions for me, don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you soon.

The Latest News From Lane County as We Move Through Fall

Garyraze@remax.net (Gary Raze) — Thu, 31 Oct 2019 12:47:00 -0700

Prices aren’t appreciating like we’re used to in Lane County, but we’re still in a good market.

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For your latest Lane County market update, I’ll do a quick recap of what’s happened since the start of the year and then switch gears to focus on what’s transpired over the last couple of months. We’ve been accustomed to a yearly home price appreciation rate of about 10%, but we estimate that the rate will drop to 6% for 2019. In other words, prices are still rising and we’re still in a good market, but things are cooling off a bit. Since October, the number of pending sales has decreased by 16% compared to the previous month, and the number of closed sales and new listings has dropped 17.5% and 30% during that same time.

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We’ve been accustomed to a yearly home price appreciation rate of about 10%, but we estimate that the rate will drop to 6% for 2019.

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Moving forward, are November and December good months to list your home? There are advantages and disadvantages to consider. There won’t be as many buyers out and about, but there won’t be as many sellers either, so you won’t face as much competition. Furthermore, the buyers who are in the market are more motivated to buy. As always, if you have any more questions about our market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d love to help you.

What Should You Do to Prepare Your Home for Colder Weather?

Garyraze@remax.net (Gary Raze) — Fri, 18 Oct 2019 08:43:00 -0700

If you want to minimize problems in your home this fall, all it takes is a little preparation. Here’s what you need to know.

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I’ve been hearing some rumors that it’s starting to cool off. While I could be talking about the real estate market, the weather is starting to cool off too. Today I have some tips to share that will help you get your home ready for fall: 1. Clear the gutters. If your gutters get clogged up, it causes all kinds of problems and can even damage your siding if not cleaned regularly. If you have a kitchen spatula, you can use that to scoop out your gutters instead of your hand. Make sure you wash it afterward, though! If you have water coming down behind the gutters, that means your gutters aren’t protected with an overlap and that should be fixed as well. 2. Repair any loose or damaged windows or door frames. Seal up any cracks to ensure your home heats efficiently when the weather cools down. 3. Make sure your furnace is running properly. Change your filters, too! The last thing you want to happen is a furnace to break in the dead of winter because you neglected it in the fall. 4. Get a chimney inspection. This can be a very big safety issue if not taken care of.

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Make sure you change your filters.

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5. Have your air ducts cleaned by a professional. It not only cleans up the air in your home, but it ensures there are no leaks either. 6. Cover outside faucets with a styrofoam cup and disconnect all of your hoses. That’s where your problems will start when it starts to freeze outside. 7. Clean up your yard. Clear debris, do your pruning, and be sure to fertilize your grass. Trim any tree limbs that are close to power lines as well. These are just a few simple things you can do to make sure your home is protected as we head toward the colder months. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

What Can You Do to Sell Your Home Quickly?

Garyraze@remax.net (Gary Raze) — Mon, 16 Sep 2019 09:43:00 -0700

Are you in need of a quick home sale, but don’t want to discount your home? Here are some tips to help get you there.

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Life happens, and that means you might have to make some life changes immediately, such as selling your home. What can you do to expedite this process? The first thing you need to focus on is price. You don’t want to price your home too low because you can end up leaving a lot of money on the table. If you list at market value, however, you might not sell as quickly as you want. I think that if you lower your price by 1% to 2% below its value, buyers will recognize that value and see your home first. This usually leads to multiple offers, which leads to bidding wars. In many cases, you can end up selling higher than market value because you offered a bargain from the start. The next thing to think about is decluttering your home as much as possible. If your home is empty because you've already moved to another state, you need to get it staged to have that home looking its best.

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Pricing slightly below market value can lead to multiple offers.

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You also need to be flexible with showings. If you have restricted showings, you’re going to lose out to a quick sale. It should be available at all times to be shown. Offering an incentive is not a bad idea. For example, you could offer to pay for the buyer’s closing costs, or offer a vacation to a timeshare that you own and aren’t using. If you have any questions for me in the meantime about what you can do to sell your home fast and for top dollar, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

What the Apparent Cooling of Our Market Means for You

Garyraze@remax.net (Gary Raze) — Tue, 3 Sep 2019 11:23:00 -0700

Is our market entering a cooling period? Let’s discuss.

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It seems like our market has been losing some momentum of late, but is it? Well, we’re receiving mixed signals, so the answer is not so clear cut. To get a better idea of what’s going on, let’s compare July’s market stats to this month’s numbers: Between the end of July and now, pending and closed sales actually increased by 2.5% and 4.5%, respectively. Less encouraging is the fact that new listings have gone down by about 1.5%.

Now, if we compare the year-over-year numbers for the first seven months of 2019, we see some definite signs of cooling. For example, pending sales have fallen 6.3% year over year and closed sales are down 7% compared to this time last year. New listings have also seen a year-over-year dropoff—almost 8.5%.

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And when it comes to interest rates, a win for buyers is a win for sellers.

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Do these numbers give at least some indication that the market is cooling?

The short answer is yes, which will likely come as a welcome change for buyers currently occupying the fence. But there’s more good news: Just a few days ago, the 30-year rate for buyers with good credit dropped to 3.5%—the lowest it’s ever been! Meanwhile, the 15-year rate dropped 3%. Obviously, this is fantastic news for buyers, but it’s equally good for sellers. Since we don’t have a crystal ball that allows us to see into the future, we can never be too certain of what’s to come, but I can predict with some certainty that interest rates can’t fall any further. And when it comes to rates, a win for buyers is a win for sellers. This is a golden moment in our market, so don’t let it pass you by! If you have any questions or if you'd like to discuss your opportunities in today’s market, please feel free to give me a call at 541-554-5825 or you can send me an email at GaryRaze@Remax.net. I hope to hear from you soon!

Downsizing: Are You Ready?

Garyraze@remax.net (Gary Raze) — Fri, 16 Aug 2019 11:28:00 -0700

Families tend to move into bigger homes as they grow, but, once children grow up and move out, parents are left with a large, expensive home without enough people to fill it. For many, this signals the perfect time to downsize into a smaller home with less maintenance and less financial liability.

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You can use the equity that you’ve built to buy a new home.

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If you no longer need your larger home, think about all the costs you can cut by downsizing. You can use the equity that you’ve built to buy a new home and invest in your retirement fund.

If you or someone you know is in a situation where they could benefit from moving into a smaller home with less maintenance, don’t hesitate to give me a call or send me an email today. I look forward to hearing from you soon.

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What’s in Store for Our Lane County Market

Garyraze@remax.net (Gary Raze) — Mon, 5 Aug 2019 08:47:00 -0700

Our Lane County market is headed for a shift, but there’s still good news for buyers and sellers.

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As we know, the real estate market crashed in 2007 and 2008 and bottomed out around 2011. Since then, our Lane County market has appreciated by almost 10% per year, but lately, that rate has slowed to 5%

What does this mean? It means we’re reaching the peak of the market. We’re in year seven of our current market cycle, and we’ve never exceeded a seven-year run of appreciation, so that’s as good of an indicator as any that we’re in for a shift.

Another indicator is interest rates. At the end of 2018, rates hovered around 5% range, and they were expected to be close to the 5.25% mark at this time, but that hasn’t happened. In fact, they’ve decreased, and as of the filming of this video, they’re expected to be at 4% or lower. Why the decrease? The economy is expected to slow down, which means now is the time to sell your home at the very top of the market.

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The economy is expected to slow down, which means now is the time to sell your home at the very top of the market.

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Many sellers are noticing that home values are higher, and they’re taking advantage of that. As the law of supply and demand dictates, the more inventory increases, the more demand diminishes. At the moment, listings average about two to three offers before selling. Last year, the average was about seven.

If you’re a buyer, the drop in interest rates makes now the perfect time to buy—especially if you’re currently renting. If you buy now, your monthly mortgage payment would be lower than your rent.

If you have any other questions about our Lane County market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d love to help you.

Pick the Best Offer With These 5 Tips

Garyraze@remax.net (Gary Raze) — Tue, 2 Jul 2019 14:38:00 -0700

Deciding between multiple offers on your home will be much easier if you follow these five tips.

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So you’ve received multiple offers on your listing. Congratulations! Today I’ve got five tips for ensuring that the selling process goes off without a hitch:

1. Stay organized. Design a spreadsheet that includes all offers along with a table of all criteria that’s relevant to your decision. This way, you can go down the line and compare each offer against these criteria. Having an organized process of elimination will help inform your decision.

2. Create a sense of urgency. Part of this is having your Realtor set and announce a specific review date for any and all offers that come in. By doing that, interested buyers and their representation will know how long they have to place their offer, and they’ll understand that indecision could mean a missed opportunity.

3. Obtain information on every buyer who makes an offer. Your Realtor should make it their mission to learn as much as they can about the types of buyers you’re dealing with. Are any of them all-cash buyers? Contingent buyers? These are things that will likely have a major bearing on your sale.

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Having an organized process of elimination will help inform your decision.

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4. Inquire about all offers with a loan officer. If the loan officer sees an offer in a favorable light ahead of time, the chances of it going through go up exponentially, so make sure your Realtor brings your offers to a mortgage professional before you make a decision.

5. Don’t cut ties with buyers who aren’t your first choice. Once you’ve accepted an offer, ask the second- and third-place buyers whether they wish to place a back-up offer. The incentive for doing that is they can lock out any additional offers in the event that the deal you’ve accepted fails to come to fruition. Should that happen, their backup offer would be moved to the first position.

If you don’t already have a spreadsheet, as mentioned in point No. 1, we’d be happy to provide you with the one we’ve developed for free! Just contact me and I’ll send a copy for you and your Realtor to use.

And if you have any other questions about how to best handle your multiple-offer situation or about real estate in general, please email me at GaryRaze@Remax.net or call me at 541-554-5825. I’d be happy to help!

Should You Borrow Money From Relatives to Buy Your First Home?

Garyraze@remax.net (Gary Raze) — Mon, 10 Jun 2019 09:33:00 -0700

For today’s topic, we’re going to discuss whether borrowing money from a relative to purchase your first home is a wise move.

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Especially for younger buyers, having the financial wherewithal to purchase their first home comes with its challenges. With home prices continuing to mount, breaking into the market for the first time can be difficult.

If you’re one of these first-time buyers, how can you get into a home?

The obvious answer is to borrow money from a relative, but it’s important to recognize the good, the bad, and the ugly associated with this course of action.

Let’s first consider the good. It could be that your parents or grandparents have set aside funds with the express intent of helping you get into your first home, giving you a leg up. There’s no real downside to this because your relative saved money for that very reason.

Alternatively, if you’ve established a retirement plan such as a Roth IRA or the like, you can borrow from that account to pay for a home without penalty. Check with an accountant or a professional who’s familiar with your situation beforehand, though.

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It’s important to recognize the good, the bad, and the ugly associated with this course of action.

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Now, I’d like to share a brief example that’s representative of the bad (plus the ugly): About four years ago, I happily assisted one of my clients in her home sale, from which she extracted $75,000 to $100,000 in equity.

I recently learned that, with that money, she helped her children get into their first home. By doing so, however, she exhausted all of that money. What’s worse, she didn’t have a retirement plan in place. Because her children couldn’t return the favor financially speaking, she’s now stuck with little money to live on month to month.

Therein lies the problem with relatives lending money to children or grandchildren in order for them to buy a home. Without having a keen awareness of what it means for their financial future, some people, unfortunately, give in to emotion and pass along money that’s vital to their own livelihood to their children or grandchildren.

A word of advice: Think twice before borrowing funds from a relative for your home purchase. If you do borrow from them, make sure you’re borrowing surplus funds that don’t eat into their own retirement system.

If you have any questions about today’s topic or anything else real estate-related, feel free to give me a call at 541-554-5825 or email me at GaryRaze@Remax.net. I’d be happy to help!

How Can Buyers Compete in a Tight Seller’s Market?

Garyraze@remax.net (Gary Raze) — Tue, 28 May 2019 12:44:00 -0700

The key to winning the home you want in a tight seller’s market is following a few simple tips.

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Here in Lane County, as we close the book on May, we’re down to 1.8 months of inventory. This means there are more buyers out there than there are available homes.

As a buyer, what can you do to make your offer more attractive to sellers without overpaying for the home you want?

First, have your agent call the listing agent and find out as much as they can about the seller. Why are they moving? What’s their moving date? Have they already purchased a new home? Knowing the answers to these questions will help you craft your offer. For example, if you find out when they need to move, you can adjust your closing date so it’s more appealing.

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In this market, why would anyone choose a low offer when they have other offers that are either at or above their asking price?

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Next, make sure you have a strong pre-qualification and offer a good earnest money deposit. The higher your deposit is, the safer your offer looks.

Also, try minimizing your inspection timeline. The average timeline for completing inspections is about 10 days, so if you tell the seller you can get yours done in, say, three to five days, that sends a clear message that you’re ready to buy now and you won’t be picky in terms of what repairs you ask for.

Whatever you do, don’t try lowballing the seller. Remember, they’ll likely have more than just your offer to look at. In this market, why would anyone choose a low offer when they have other offers that are either at or above their asking price?

If you’d like to know more about how you can compete in a seller’s market or you have any other real estate questions for me, don’t hesitate to reach out to me. I’d be happy to help you.

Preparing Your Home Before the Inspection

Garyraze@remax.net (Gary Raze) — Mon, 13 May 2019 10:24:00 -0700

Before your home gets inspected, check off these easy-to-fix items so they don’t show up in the final report.

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Let’s say you’re a seller and you’ve received an offer on your home. In the ensuing days, an inspector will come to the home and check for various items of concern—rot and pests are a few examples.

As the seller, you can act preemptively and take care of a few items before the inspector has to be the one who flags them. Here’s how:

First, make sure all lightbulbs inside and outside your home are working. When it comes time for showings, illuminate your home a little more by installing brighter bulbs—especially if yours are a little older and have dulled.

You’ll want to check and potentially replace your CO2 and carbon monoxide detectors as well. Your current detectors may have served you well for the last ten years, but being as they’re older models, the inspector will make a note of that in the report.

Ensure that your water heater is secure in the event of an earthquake by tying two straps, not just one, to it. Next, clear any debris that may have collected around your electrical panel, your attic space, or underneath your house. The inspector needs to have unobstructed pathways and access to these areas.

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As the seller, you can act preemptively and take care of a few items before the inspector has to be the one who flags them.

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For those who have pets, be sure to place them in a carrier or take them with you when leaving the home to let the inspector conduct their work.

Also, every toilet in your home will need to be squeaky clean before the inspector sets foot in your home.They will use a moisture detector to establish whether any seepage is coming out from the wax rings, so scrub the area around the base of the toilet.

Another thing that will catch the inspector’s eye is the downspout. If yours run straight down and water isn’t being properly diverted away from the home, you can expect to be flagged in the final report. To avoid this, purchase a plastic downspout diverter—they’re inexpensive, and they’ll funnel the water about nine to 12 inches away from the home.

Those are just a few easy and quick loose ends up to tie up in your home before having an inspection done. If you have any questions, please feel free to text or call me at 541-554-5825 or shoot me an email at garyraze@remax.net. I look forward to talking with you soon!