Bend, OR Real Estate Podcast with Christine Browning

How is Real Estate Affected by the New Tax Law?

Christine@ChristineBrowning.com (Christine Browning) — Thu, 1 Feb 2018 15:00:00 -0800

There are some pretty big changes coming with the upcoming tax law that recently passed. We asked Dan Parr, of Parr Accounting how those laws will affect real estate, and here's what he had to say.

The 2017 Tax Cuts and Jobs Act was passed into law in late December and will be in place for
2018 and later income tax returns. How does this law affect the real estate market and taxpayers
who own homes?

One major change is that mortgage interest will only be deductible on the first $750,000 borrowed to
purchase or construct a home. The former limit was $1M. This means that the tax benefit for a large
mortgage will not be as impactful when filing tax returns in the future.

Also -interest paid on HELOC loans will generally not be deductible under the new law. The old law
allowed a taxpayer to deduct the interest on the first $100K of a HELOC loan, no matter how the funds
were used.

State and real estate taxes - most homeowners itemize their deduction each year. Beginning in 2018,
the total of state income taxes paid and real estate taxes paid on the primary residence will be capped
at $10,000. This amount was previously unlimited, but did lead to Alternative Minimum Tax for many
higher income taxpayers.

Lastly, the standard deduction allowed by the IRS will almost double-up to $12,000 for individuals and
$24,000 for married taxpayers. Combined with the tax limit mentioned above, MANY more taxpayers
will be claiming the standard deduction in 2018 and later years.

"Just how does this affect taxpayers who own homes?"

Homeowners used to be able to calculate the “after tax' cost of a mortgage payment and
compare this to the rent paid on a similar home. In a 25% federal tax bracket and 9% Oregon tax
bracket, a $2500 mortgage payment (including principal, interest, tax and insurance), was equivalent
to paying rent of roughly $1700. This calculation will not longer be valid due to the tax limit and larger
standard deduction. This does not mean that home ownership will not longer be a tremendous
long-term investment. It will become more difficult to calculate the current benefits.

Taxpayers who have rental property or other investment property may want to “trace' the interest paid
on their primary residence to the purchase of these other investments in order to get better tax benefit
in future years.

Note that even though many taxpayers will not itemize for federal tax purposes due to the increased
standard deduction, they will still have to save all the similar items used in prior years because the
Oregon standard deduction will remain at roughly $4,000 for married taxpayers.

The IRS did not change the primary residence exclusion rules - married taxpayers can still exclude up
to $500,000 of gain ($250,000 for single taxpayers) on the sale of their primary residence if they have
lived in the home as their primary residence two of the previous five years. Congress was considering
changing this to five of the previous eight years.

Section 1031 as it relates to real estate transactions was not changed in the new law. Taxpayers can
defer the gain on the sale of investment real estate as long as they spend the net proceeds (sales
price less closing costs) on the purchase of replacement real estate within 180 days.

If you have any questions about how these changes affect you, reach out to
Dan@ParrAccounting.com. You can also visit his website, here.

I you have any questions about the current real estate market and how prices will move in the coming
months, give me a call. I'm here to help!

Join Us for the Grand Opening of Our New Office

Christine@ChristineBrowning.com (Christine Browning) — Wed, 13 Dec 2017 12:45:00 -0800

We are so excited to move to our new permanent location, 1860 NE 4th Street, Bend, OR, 97701.We are saying goodbye to HomeSmart on December 31 and rolling out our exciting new company, Red Door Realty, in 2018.

Join us at our new office on January 19 for our Grand Opening Party. There will be refreshments and an iPad giveaway. To get a sneak preview of our new office, watch this short video.

If you have any questions about this change or other real estate-related topics, feel free to give us a call or send an email. We'd love to help you reach your real estate goals.

How A Home Warranty Will Benefit You

Christine@ChristineBrowning.com (Christine Browning) — Tue, 31 Oct 2017 08:31:00 -0700

If you’re buying a home, I highly recommend you get a home warranty. There are many benefits in doing so.

If you’re buying a home, should you get a home warranty? Oftentimes during a home sale, it’s natural for buyers to ask themselves this question and wonder whether they really need it. There are a few things you should know about what home warranties can do for you.

When buying a new construction home, it automatically comes with a 12-month warranty for all the major systems and components. When buying a home that’s not new construction, the day you close, you’ll be responsible for any issues that come up. Typically, these issues come up pretty quickly during that first year of ownership.

A home warranty covers all the major systems in the home, and Home Warranty of America even offers roof leak repair, which can come in handy for us central Oregon residents who just endured a winter that featured a lot of snow and ice dams.

The cost of a home warranty ranges from $370 to $500, and that sum can be included in your overall closing costs. The $500 plan covers everything and gives you additional coverage if items need to be replaced, whereas the $370 plan only covers the major systems.

When I’m working with a buyer, I always include the home warranty when I write up the offer and ask the seller to pay for it as part of the transaction. Roughly 75% of the time, sellers don’t mind doing this, and they’re happy to build confidence in the home they’re selling. If you work with our team, we always include this in the offer. If you’re working with another Realtor, ask them to ask the seller to pay for it.

When I’m working with a buyer, I always include the home warranty when I write up the offer.

If the seller doesn’t agree to pay for it, I highly recommend you at least get the minimum plan or find out about getting more coverage. I have a home warranty on my home that I renew every year. When living within a budget, you never know what can happen or what systems might fail that could cost you thousands of dollars.

One of the more common items new homeowners have issues with is water heaters. Sometimes buyers who buy their homes in the summer and turn on their furnace for the first time in fall find out that it’s not working. This happens because when the inspector turned on the furnace during the home inspection, they only did so for five or 10 minutes, which isn’t long enough to pick up on any potential problems. The same potential problem applies to AC units for buyers who buy during the winter.

The systems in the home that don’t get used are the ones that might get rusty or break down faster, and there are differences in usage patterns from one homeowner to another. If you have large family moving into a home where a smaller family lived, you’ll get more wear and tear in a home, and that’s why you see breakdowns happen almost immediately after the family moves in.

All of this is why we encourage all of our buyers to get a home warranty when purchasing a home. Hopefully the seller will pay for it, but if they don’t, you can get it incorporated into your closing costs through your loan.

If you have any questions, I’ve included a brochure in this blog which talks about the main things a home warranty covers. As always, if you have any other questions or you need to buy or sell a home in our central Oregon market, don’t hesitate to reach out to me anytime. I’d be happy to help you.

The Role of Appraisals in Home Selling

Christine@ChristineBrowning.com (Christine Browning) — Tue, 12 Sep 2017 07:39:00 -0700

Appraisals aren’t just important for homebuyers. They’re just as important for home sellers.

Home appraisals are typically ordered by lenders who want to determine the value of a home before they decide to approve a loan to purchase it. They also need to know the value just in case the buyer defaults and they have to take over the property and sell it.

An appraiser looks at three to six recent comparable sold properties in order to determine its value. One of the problems with this method is that appraisers don’t have a chance to walk through any physical properties—they just have online data. That data may or may not be accurate.

While appraisals are typically thought of in terms of buyers, sellers need to be aware of them too. There are a few different ways in which you can help your home appraise to where you want it to.

Make sure your home presents as well as possible.

The easiest way is to make sure the home presents as well as possible. This involves opening blinds, turning on lights, and making sure the yard is perfect, among other things.

Another thing that could be helpful is leaving out a list of features and upgrades that you’ve made to your home to show how it’s unique. This could potentially increase the home’s value in the appraiser’s mind. If they don’t know if something is new or remodeled, they will assume that it’s not and you’ll miss out on the added value.

If you have any questions for us about appraisals or if we can provide assistance of any kind, give us a call or send us an email. We look forward to hearing from you.

Why a Professional Realtor Is a Better Choice

Christine@ChristineBrowning.com (Christine Browning) — Wed, 2 Aug 2017 13:49:00 -0700

Many sellers considering selling their homes themselves to avoid paying commission to a Realtor. Today I’m here to talk about why that’s not the best idea.

Today I’m with my listing partner Amy Moser to discuss some of the dangers of trying to sell your home by owner.

Many sellers consider selling their homes themselves to save on the 5% to 6% commission that comes with using a real estate agent. But statistically, homes sell for more money when they’re represented by a Realtor. According to the National Association of Realtors, they sell for 16% more than if they were a For Sale By Owner property.

When you list with a Realtor, your home is put on the Multiple Listing Service (MLS) and exposed to thousands of Realtors who are working hard to find suitable properties for their clients. Additionally, most serious buyers are working with a Realtor because it doesn’t cost them anything to do, as the commission is paid by the seller.

If you’re trying to sell your home by yourself, you have all of your personal contact information out for anyone to look at. Without an agent, there is no one to screen these individuals before they call and ask to walk through your home. According to Amy, these sort of buyers are usually looking for the best deal, the biggest discount, and won’t qualify for traditional financing, so they’re looking for someone to carry their mortgage, which will be you.

Most people are not that brutally honest.

When you hire a real estate agent, you have access to all the most current real estate contracts, legal disclosures on your property, representation on what is included and not included, and reduced liability if the deal falls through. By working with a Realtor, you will be able to avoid buyers that prey on sellers who don’t have representation.

The last piece that I want to talk about is that selling a home is a lot of work. “There are many parts prior to even getting an offer on your home,” Amy says. Some of these parts include marketing for your home, and then a checklist of items that need to be taken care of that protect you as the seller during the process, like inspections and appraisals. “Very few real estate transactions go through without any hiccups,” Amy says.

Another benefit to hiring an agent is they can act as a buffer to receive any feedback on the home after showings. Most people are not that brutally honest and feel uncomfortable telling a seller about things they think the seller should improve on to their face. Having an agent to take in that information and communicate it to the seller can help get the home sold faster and for more money.

If you have any additional questions about the benefits of hiring a professional Realtor, or you’re looking to buy or sell a home, give me a call. I’d be happy to help!

Also, take a look at our latest 360 degree home tour! You can explore each corner of the listing at Morningwood Way as if you were there in person. Click here to check it out.

Why You Can't Trust Computer-Generated Home Valuations

Christine@ChristineBrowning.com (Christine Browning) — Fri, 30 Jun 2017 09:04:00 -0700

Many people turn to websites to try and find out what their home is worth but fail to realize how inaccurate these computer estimates can be.

Are online home values accurate and trustworthy? I get this question quite often.

The truth is that when you consult a website for a valuation of a property, the value it kicks back isn't accurate. This is because you're asking a computer to generate a value for your home based on multiple sources of data. However, that data may or may not be anywhere near your actual property.

This could be data from the county, including your home's square footage, lot size, and bedroom/bathroom count. A computer certainly doesn't know whether your house has been remodeled or updated at all. On the other hand, a computer also won't know if your home is the only one in the area that hasn't been updated and sold for a premium.

There are too many details about homes that a computer can't possibly know.

A computer also can't account for things like your property backing up to public land, being on the busy street, being on a golf course, or opening up to a park or preserve. There are simply too many details about homes that a computer can't possibly know or understand.

If you've thought about selling your house and you'd like to know what the actual market value is, I'd love to come out and give you a personalized market evaluation of your home. In the end, your home is worth what an able buyer is willing to pay for it, not what a computer says.

If you'd like to know what your house is worth or you have any other questions about the Bend real estate market, you can always give me a call or send me an email. I'd be honored to help you!

How to Purchase and Finance a Rental Property

Christine@ChristineBrowning.com (Christine Browning) — Mon, 5 Jun 2017 10:59:00 -0700

Rental rates in the central Oregon market make buying an investment rental property tempting for many homeowners right now. How does that financing work, though?

Have you ever considered buying a rental or investment property? It's a great way to diversify your real estate portfolio. The two ways to do this are converting your home into a rental or pulling some equity out of it to finance a new property that you'll then rent out. Home values have gone up all over central Oregon, giving many homeowners significant equity in their property. To help me explain this topic, I've invited in Matt Bassitt from Northwestern Home Loans.

If you want to pull equity from your home to take advantage of the great rental market we have, there are different lending options. You typically want to have 20% or more equity put down when buying a rental property to avoid having to pay mortgage insurance, but some rental properties are profitable enough to offset this. You can also refinance your mortgage and convert your current home into the rental to buy a larger new home, for example. Whether you convert your current home or buy a new one can affect financing rates in this case.

The central Oregon rental market makes now a great time to invest in property.

Since the mortgage rates you get will be better on your primary residence, you can also refinance your mortgage and stay in the home as your primary residence if you can keep your mortgage loan-to-value ratio below that 80% mark. Then, you can use the equity you've pulled to buy a rental property with 20% to 25% down. Since rates can be 0.5% to 1% higher on a 30-year investment property loan, it can be a smart strategy to pull equity to buy your new residence, get the best possible rate, and then keep your old residence as a rental property.

With this route, there's an intent clause (in basically every loan type) you'll have to sign at closing stating you intend to occupy the house as your primary residence for the next 12 months. So there's basically no way to sneak this past your lender when it comes to investment property.

You can, however, refinance your loan and make a purchase simultaneously. It's common for purchases to be treated with a priority for refinances, which have a three-day decision period unless the property in question is an investment property already.

As you've probably noticed, this process is pretty technical and complicated. If you have any questions about it on the lending side, you can reach Matt Bassitt at 541-323-7000 ext. 202.

If you have any questions for me about rental property or about real estate in general here in central Oregon, don't hesitate to give me a call or send me an email soon. I'd love to hear from you!

Buying a Home After You’ve Had a Short Sale or Foreclosure

Christine@ChristineBrowning.com (Christine Browning) — Fri, 19 May 2017 11:00:00 -0700

If you’ve had a short sale or foreclosure in the past, there are a few things I want to share with you that you should know if you want to buy a home again.

If you’ve had a short sale or a foreclosure in the past, how long do you have to wait to buy a home again and what do you need to do to prepare yourself for that process?

From 2009 to 2013, I worked with many people who had the unfortunate experience of having to do a short sale or a foreclosure during that downturn in the economy. Since then, we’ve seen a complete turnaround with housing values here in central Oregon, so many people are asking me that same question. I’ve brought in Matt Bassitt, owner of northwestern Home Loans, to help me answer it.

There are many different rules and regulations between each loan program, but for the most part, three years is the standard waiting period. If you’re a veteran and you used a VA loan, it might only be a two-year wait. According to Matt, most people in this category have already met the time requirements.

You should submit a loan application and start preparing for homeownership six to 12 months prior to when you think your deadline is. Sometimes the dates recorded in your credit profile aren’t accurate, so that will give you time to work that and other things with your loan officer to improve your credit.

There is a lot of strategy that goes into setting yourself up to buy your next home.

There is a lot of strategy that goes into setting yourself up to buy your next home. I’ve noticed many people who’ve gone through a short sale or foreclosure stop using credit altogether, which is a mistake because that means their credit score and credit history haven’t rebuilt.

There are some fantastic financing options that involve putting down as little as 0%. If you’re getting a tax refund or you’ve been saving up, for example, you can employ that as part of your strategy to buy a great home, secure a great interest rate, and rebuild your credit.

If you would like more information from Matt, you can give him a call at (541) 323-7000 ext. 202. If you have any questions for me about this topic, feel free to give me a call or send me an email. I’d be glad to assist you.

How We Set Ourselves Apart in the Bend Market

Christine@ChristineBrowning.com (Christine Browning) — Fri, 5 May 2017 10:22:00 -0700

What makes working with our team different? Allow me to explain.

When you buy or sell a home, it can be an emotional process. My goal is to capture the romance and happiness that each home has to offer.

Our team is made up of seasoned professionals who provide the very best service and experience available.

There's Amy Moser, a listing partner who helps us strive to always be the best we can be and put the needs of our clients first. I'm best known for my outstanding marketing skills. I have a degree in marketing, and I believe that a home's online presentation is more important than ever.

Don't take it from us though, take it from Jessica Jensen, who we helped find her perfect home.

"My husband and I don't have any financial experience, so working with Christine was amazing because she walked us through every step of the process and made sure we knew exactly what was going on and that we were getting a good deal," says Jessica.

I always strive to provide the best customer service and expertise possible.

The thing I enjoy most about meeting the new people who move to our community is exposing them to just how amazing it is. I love showing people how to get the most out of living here in Bend.

"Christine's knowledge of each neighborhood and the individual value that they have to offer is invaluable to a buyer, and it has helped me in my buying process," says Jeanette Sampson, who also bought a beautiful home with us.

I always strive to provide the best customer service and expertise possible so my clients can count on me as their trusted real estate advisor. Real estate is a relationship business, and I want to be your Realtor for life. If you'd like to learn more about working with us to buy or sell a home in Bend, don't hesitate to give me a call or send me an email. I’d love to tell you more!

The Truth About Using a First Time Homebuyers Loan, Again!

Christine@ChristineBrowning.com (Christine Browning) — Thu, 13 Apr 2017 09:57:00 -0700

There’s nothing stopping you from reusing a home loan to buy another home, but there are some stipulations that you need to be aware of.

Did you know that if you’ve ever used an FHA loan, a VA loan, or a USDA loan to buy a home, you’re free to reuse those loans if you’re currently renting and want to become a homeowner again?

Today I’m joined by Matt Bassitt from Northwestern Home Loans to explain the stipulations of reusing home loans. According to him, this situation happens all the time.

The VA loan in particular gets misconceived most often as a one-and-done type of deal, but there is no limit to how often you can use it if you’re a veteran of the armed forces. You don’t even technically need to use one VA loan at a time, either. If you’re using a VA loan for a house you’ve turned into an investment property and you want to buy a new property, you can qualify for a new VA loan. However, because some of your eligibility is being used on that first property, you may have to put a down payment on the next one.

There’s nothing stopping you from reusing a home loan.

FHA loans are slightly different in that you can’t use more than one of them at a time. They’re designed for first-time homebuyers, but they’re not exclusive to them. With these loans, you’re allowed to use a different type of loan at the same time. For example, you can use a conventional loan to buy an investment property if you’re using the FHA loan to buy your primary residence.

USDA loans are similar to FHA loans in that you can’t use more than one of them at a time, but with these you aren’t allowed to use different types of loans at the same time. The one thing all three of these loans have in common is you must use them for a primary residence.

If you have any questions about these loans or you’re confused about whether you’d be able to qualify for one, you can reach Matt at 541-323-7000 ext. 202.

If you have any other questions, feel free to give me a call or shoot me an email. I’d love to hear from you!

How Long Will It Take to Sell a Home in Central Oregon?

Christine@ChristineBrowning.com (Christine Browning) — Thu, 16 Mar 2017 11:48:00 -0700

Today I want to go over how long it takes to sell a home in central Oregon.

How long does it really take to close on a home after putting it on the market?

The average timeline in central Oregon is 90 days, or, 45 days from the time that you accept an offer to the time that you close.

The timeline will vary depending on the type of property being sold.

However, it will vary depending on the type of property that you are selling. I do see longer timelines for high priced properties, acreage properties, specialty properties that are located in resort communities, or vacation rental properties.

If you would like to know the timeline for buying or selling a home in a certain area, please feel free to give me a call or send me an email. I look forward to hearing from you!

Spend Your Tax Refund on a New Home

Christine@ChristineBrowning.com (Christine Browning) — Thu, 2 Mar 2017 12:33:00 -0800

Today I’m joined by Matt Bassett with Northwestern Home Loans to talk to you about the possibility of using your tax refund to purchase a home.

It’s tax season in central Oregon and if you’re lucky you’ll get a great big tax refund. Can you use that as a down payment to purchase a home? Of course!

There are several great loan options for first-time homebuyers, some of which don’t even require a down payment. Your tax refund can then be used to lower your principal payment by putting extra down or to cover closing costs.

We have a lot of no money down or low money down options that you can take advantage of with your tax refund.

Meet with a mortgage broker as soon as you know how much you’re getting back.

The best time to meet with a mortgage broker in order to come up with a game plan is as soon as you know how much you’re getting back. It’s always best to plan ahead and meeting with a lender early on will give you a huge advantage when you meet with a real estate agent and start looking at homes.

If you’re looking to buy a home and stop renting, you’ll want meet with a mortgage broker before looking at homes so you know exactly what you can afford and what sort of realistic time frame you need to make a purchase. You don’t want to fall in love with a home and make an offer without knowing what your options are or where you truly stand financially.

I highly encourage anyone getting a tax refund to meet with Matt or a local mortgage broker as early as possible. Using that refund to help fund a home purchase will benefit you way more than taking a vacation or shopping.

Also, a great tip to remember is to never make a big purchase when you are thinking of buying a house. You don’t want anything to slow down or get in the way of a mortgage loan going through, so wait to make those purchases until after you’ve bought a home.

If you have any further questions for Matt, you can reach him at (541) 323-7000.

If have any questions for me about using your tax refund to purchase a home, or if you have any other questions about real estate, feel free to give me a call or send me an email. I look forward to hearing from you!

Is It Worth Filing a Claim if a Winter Storm Damages Your Home?

Christine@ChristineBrowning.com (Christine Browning) — Tue, 31 Jan 2017 08:22:00 -0800

If your house has recently incurred some winter weather damage, here’s how you should proceed regarding your homeowners insurance.

As you know, we’ve experienced record-breaking snowstorms in central Oregon these last couple weeks that have caused significant damage to more than a few homes out there. As a result, we’ve been getting a lot of questions from people about their homeowners insurance and how it applies to this damage.

With this in mind, today we’ve brought in Allison Glasier from Country Financial to talk a little bit about homeowners insurance claims after big storms. Does homeowners insurance cover snow and ice damage? Is it worth filing a claim?

According to Allison, it’s important to be proactive to nullify any damage your home might’ve incurred. If you’re able to carefully and safely remove any snow or ice buildup or have a professional do so, that will help. That’s an important trait in the eyes of insurance companies.

Always be proactive when dealing with winter weather damage.

As to whether it’s worth filing a claim for leakage coming in from the roof or an ice dam buildup, if the damage is above the standard $1,000 deductible that most homeowners have, it’s definitely worth filing a claim.

If you have water that’s coming into your home or into the walls, have an adjustor look at it. The worst thing you can do is ignore it and let it fester until you have a mold problem. When we do a home inspection, there’s a lot of water damage that shows up that you can’t see just walking through the home. Having mold build up can make people ill. Even if you file a claim and someone does an analysis on it and you still end up paying the damage, it doesn’t go on your insurance record.

If you want more information regarding homeowners insurance claims, you can call Allison at (541) 322-9432 or send an email to allison.glasier@countryfinancial.com. If you would like to know more about insuring your home, click here.

7 Cold Weather Projects to Increase Your Home Value

When it’s warm outside, it’s easy to do outside maintenance work and home improvement projects with your landscaping, painting your home, and adding decks or even sunrooms. But even in the winter months there are plenty of interior projects you can tackle to increase the value of your home.

Here's a handy infographic that you're free to share!

Click Here for Full Article and Infographic to Download & Share

Why Oregon Home Check?
Oregon Home Check offers services that set us apart from other home inspectors:

Extremely convenient scheduling of the home inspection!
There are no inconvenient delays when you come to us. You can schedule the home inspection with ease.

You have real time access to our scheduler - 24/7
You, or your client, can check pricing and availability of our inspections right from your smart phone
Once scheduled, both you and your client receive a confirmation email, so you’re never in the dark about the status of your reservation.

We specialize in the needs of first time home buyers!
First time home buyers are excited and nervous, and everything is new to them! We know this and are dedicated to ensuring that their experience is a pleasant – and informative – one.
We feel that we are not only inspectors but educators as well.

All first-time home buyers receive a complimentary Home Maintenance book, in English or Spanish as desired.
We share information such as when and where to change filters, when and how to winterize the crawlspace, how to maintain the sprinkler system and so on.

When you book your first home inspection with Oregon Home Check, they’ll give you a $100 discount.

Click Here to Book an Inspection

Renting Versus Owning a Home

Christine@ChristineBrowning.com (Christine Browning) — Mon, 12 Dec 2016 13:43:00 -0800

If you are thinking about making the leap from renting to buying your first home, make sure you know the advantages of both.

An incredibly common question that I come across is, “Is it better to own a home or rent?” There are advantages to both options, but I think overall, one is a clear winner.

Let’s start with the advantages to renting.

Unlike owning a home, when you rent, you have no long-term commitment. You also don’t have any property maintenance expenses. Most importantly, you don’t have the responsibilities of homeownership, which can be quite daunting for some folks.

Now let’s talk about the advantages of owning a home.

When you purchase a property, you can lock in a great interest rate and therefore a great mortgage payment. Unlike with renting, where your rent could go up at any time by any amount, owning a home means you will know exactly how much your mortgage payment will be no matter how much time passes.

Owning a home means always knowing what your monthly payment will be.

Additionally, if you own a home, no one is going to kick you out. Landlords can serve notice if they decide to sell the property or even move back in. This leaves you vying for a place to live usually armed with only a 30-day time frame. Talk about stressful.

One of the most fun advantages of ownership is that you can decorate and customize a home to your style. Most renters don’t want to invest in a home they don’t own, and even if they wanted to, they have to go to the landlord and get permission for every single thing they do. It can be a huge hassle, which is why most renters don’t even bother really making a space their own.

Finally, there are fantastic tax write-offs when you own as opposed to renting, as well as the ability to build equity and grow your net worth. Your home’s worth will increase over the years, and during that time, you will pay down the mortgage. When you go to sell, you will pull equity out as far as gains and what you have already paid on the mortgage. Or, perhaps you get the entire mortgage paid off, which would then net you 100% of the selling price.

When you own a home you build your net worth, but when you rent you build your landlord’s net worth.

Overall, owning is much better than renting unless you plan on being somewhere for a short period of time.

If you have any other questions, feel free to give me a call or shoot me an email. I look forward to hearing from you!

What Can You Do Before Listing Your Home for Sale?

Christine@ChristineBrowning.com (Christine Browning) — Wed, 30 Nov 2016 13:57:00 -0800

When you are getting ready to sell your home, don’t neglect proper preparation. It’s the key to selling for the most money possible.

What steps should a seller actually take before listing their home? I’ve got four of them to share with you today:

1. Clean and depersonalize your home. Make it as generic and crowd-pleasing as possible.

You want your home to be generic and crowd-pleasing.

2. Stage your home. You have two main goals when staging. The first is to create a purpose for every space in your home. You also want the home to feel as open and spacious as possible.

3. Determine what your bottom line price is. I like to have my sellers figure out what their actual “balance owed” is on their mortgage. I then work with the title company to come up with three different closing statements. One is the highest price I think we could sell for, one is a mid-range price, and the third is the bottom line price.

4. Set a realistic timeline. Look at what similar homes to yours are selling for on the market and how quickly they are selling. If you’re looking to sell quickly as well, you might want to start off by pricing a little lower to garner interest more quickly. The average days on market will really help you determine a good timeline.

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

3 Ways Home Sellers Sabotage Their Own Sale

Christine@ChristineBrowning.com (Christine Browning) — Fri, 21 Oct 2016 13:27:00 -0700

What are the three biggest mistakes home sellers can make that can sabotage their own sale?

Lack of staging and preparation. Staging involves decluttering and depersonalizing the interior of the house. Preparing it also includes things like carpet cleaning, repainting, and landscaping. From the moment a potential buyer drives up to your property, everything they lay eyes on matters.
Improperly pricing the home. If you price your home too high, buyers won’t even look at it. Your home will then sit on the market and become stale. This will give off a general impression to buyers and Realtors alike that there is something wrong with it. Conversely, you don’t want to price it too low either. Don’t leave money on the table just because you want your house to sell quickly. Would you want to find out after the fact that your neighbor sold their home that was nearly identical to yours for thousands of dollars more?
Hiring the wrong Realtor for the job. I highly recommend that you thoroughly examine what a Realtor invests in their own marketing, online exposure, professional photography, signage, etc. This is everything that determines whether your home gets maximum exposure. You also want a Realtor that has a system in place for fully maximizing every single buyer who has shown interest in your property. This will generate valuable feedback and make it easier to work through any possible objections or concerns you might have.

If you have any questions or are thinking about selling your home, don’t hesitate to give me a call or email me. I would love the opportunity to talk to you!

Why Are ‘For Sale’ Signs Still Relevant?

Christine@ChristineBrowning.com (Christine Browning) — Tue, 11 Oct 2016 10:57:00 -0700

If all buyers are shopping for homes online, then why do Realtors still use signs and flyers in the front yard? If you are selling your home, there are three top reasons why you absolutely want a ‘For Sale’ sign in your yard.

First of all, the sign helps buyers and other Realtors find your home. Directional signs and the front yard ‘For Sale’ sign indicate that this is the correct home that the buyer wanted to look at. As you probably know, GPS is not always accurate, and sometimes the number on your house is not easy to spot from the street. A great real estate sign helps buyers and Realtors see that your property is the correct property they are looking for.

The sign lets buyers know they have found the right home.

If buyers are in the neighborhood looking at other properties, the ‘For Sale’ sign helps them discover your property. Buyers often limit their home search to certain criteria, such as the size of the house, the number of bedrooms, or the price of the home. As a result, your home might not make it on their list. However, if they see a ‘For Sale’ sign in your yard, they may think, “Wow, that home is gorgeous! It’s just what I’ve been looking for.” Without the ‘For Sale’ sign, they would not even know that your home is for sale.

Finally, keep in mind that renters and neighbors can bring attention to your property. Other homeowners in the neighborhood will see the sign and tell their friends or family members. If a renter loves living in that neighborhood and sees the sign in your yard, they may decide to buy your home. Sometimes you might even have neighbors who love the neighborhood but didn’t quite buy the right house. In that case, they may be interested in buying yours.

As you can see, yard signs and flyers are still incredibly important tools for home sellers despite the rise of the online home search. If you have any other questions about selling your home in this current market or about real estate in general, give me a call or send me an email. I would be happy to help you!

The 6 Least Desirable Home Features

Christine@ChristineBrowning.com (Christine Browning) — Tue, 6 Sep 2016 10:30:00 -0700

When you’re selling your home, you want it to look as good as possible to potential buyers. In order to accomplish this, you also need to pay attention to what potential buyers don’t want to see. We have compiled a list of some of the least desirable home features out there so you’ll know what turns buyers off. Here is what you should avoid:

1. Laminate countertops. Hard surface countertops made of granite, quartz, or even porcelain are a gold standard and an absolute must for homeowners.

2. Brightly colored walls. Colors like orange, pink, red, and purple might work for your style and furniture, but they are not appealing to a potential home buyers who are trying to envision themselves living in the home. Paint your home in neutral colors to make your home a blank canvas to potential buyers.

3. Carpet in the main living areas. Buyers like to see solid wood or wood laminate floors instead of carpet in the main living areas. It’s much easier to clean, and will help showcase your living areas beautifully.

4. Updated kitchen appliances. Buyers spend a lot of time in the kitchen and want to come in and imagine all the fantastic meals they will be preparing and enjoying with family. If you have outdated appliances, look at getting them updated.

5. Lack of light. While you might enjoy having your windows and blinds closed for a dim and relaxing environment, buyers don’t want to walk through a cave-like home. Open up those windows and bring in natural light to make the home inviting and bright.

6. Outdated lighting and fixtures. This is an easy update you can make prior to selling. Head over to a hardware store and get new lighting fixtures and door hardware for less than $1,000 and it will change the entire look of your home. Use brushed nickel or oil-rubbed bronze instead of brass.

If you have any questions for us, don’t hesitate to give us a call or send us an email. We look forward to hearing from you.

Is Deschutes County a Buyer’s or Seller’s Market?

Christine@ChristineBrowning.com (Christine Browning) — Wed, 27 Jul 2016 11:53:00 -0700

Looking to buy a home? Check out our free home search
Looking to sell a home? Check out our free home value report

Is Bend experiencing a buyer’s market or a seller’s market? I get this question almost every day. It’s a tough question because the answer depends on the price point that we’re discussing.

I did some research to break down where we’re seeing a buyer’s market and where we’re seeing a seller’s market. Historically, we have a seller’s market when there are fewer than five months of inventory. It’s a buyer’s market if we have more than five months of inventory.

When I looked at homes priced up to $500,000 in Deschutes County, we showed only 1.7 months of inventory. Going up to $700,000, there were still only four months of inventory showing, which means in Deschutes County, if you’re a buyer looking for a home costing $700,000 or less, there is not a lot of inventory or options. Sellers get to be picky and require full price or close to full price.

Buyers will also have to settle for a little bit less than their ideal, just because there are not a lot of options.

“

The type of market we’re in depends entirely on the price point.

”

What’s interesting is that when you look at a price point higher than $700,000, the supply jumps up to eight months. At more than $900,000, we jump up to 11 months of inventory. That indicates that there are not a lot of sales going on, and buyers have more options. If you’re a seller at that price point, you may need to drop your price or really make some concessions to work with a buyer if one comes along.

So remember, when looking at a buyer’s market vs. a seller’s market, in Deschutes County, it all depends on the price point.

If you have any more questions, or you’re thinking about buying or selling a home in Bend, give me a call today. I look forward to hearing from you!

Curb Appeal Is a Must to Pull Buyers In and Keep Them Interested

Christine@ChristineBrowning.com (Christine Browning) — Fri, 29 Mar 2013 08:07:00 -0700

Watch on your mobile device >>

The last thing a seller wants to happen is for a buyer to express interest, only to drive away because the exterior does not appeal to them. Believe it or not, this happens and it happens all the time. One of the ways you can avoid losing buyer interest is to spruce up your home’s exterior by creating an inviting and interesting outdoor area that will intrigue buyers to make them want to see more. Keep in mind, that first impression tells them what they might expect in the rest of the home.

Create a Smooth Drive Up to the House

The last thing a buyer wants to see is a cracked driveway that can only indicate further maintenance issues ahead. Stains and unsightly discoloration is also a negative. Depending on the condition of your driveway, consider getting it resurfaced. It can cost about $2,000 but the return on that investment can be the difference between getting and not getting an offer on the home.

Landscaping Should Be Neatly Maintained and Inviting

It does not matter if you have a lush garden or just a few bushes and flowers – the key is that your lawn and garden space is well maintained and inviting. If your grass is not green or is uneven and ill-maintained then buyers will assume the rest of your house is in the same apparent disarray.

Make People Want to See What’s Behind the Front Door

By creating an eye-catching visual presentation in the front door and surrounding area, you will almost guarantee a buyer’s interest in seeing more. Use updated colors of the season that pop and work well with the rest of your home’s exterior. Place interesting accessories and thoughtfully arrange the front porch so that buyers can visualize living and enjoying that outdoor space.

Dust Off the Cobwebs (and Other Unsightly Messes)

Buyers’ eyes go directly to anything and everything that isn’t perfect and as a first impression you simply can’t afford to leave a less-than-perfect image of your home. So even the slightest dirt, cobwebs or mess on the outside of your home will be very noticeable and could end up in a lost sale.

Don’t Ignore the Garage Door

Too many sellers neglect to realize just how much impact their garage door has on the home’s appearance. Not only should the door be in good shape but also it should be clean and help to frame the entrance in a stylish way. It goes without saying that a garage door with dents, dings or other problems would detract from buyers’ perceived value of the home.
~
Once you list your home, it takes a good amount of time, energy and expense to get buyers to request to see the home. So the last thing you want to happen is for them to turn away from the home because of a negative first impression. Contact us today to learn more about how you can spruce up your home so buyers can’t wait to see more the moment they set eyes on it!

HomeSmart Realty Explains the Judicial Vs. Non-Judicial Foreclosures

Christine@ChristineBrowning.com (Christine Browning) — Mon, 11 Mar 2013 08:19:00 -0700

Watch on your mobile device >>

On March 14 at 2pm at our offices, HomeSmart Realty will be holding a special presentation to help our clients, friends, neighbors and associates to understand the differences between our state’s two types of foreclosures. Until recently, we only saw a prevalence of the non-judicial variety but now we are seeing more judicial foreclosures taking place.

If you are facing this situation or someone you know could potentially find themselves in a foreclosure situation, it is critical to understand what to expect.

Through our presentation, you will learn valuable information about the length of time each is expected to take, how each is handled and other important details about the process.

Call us today to confirm your attendance. Though an RSVP is not required, we’d love to know you’re coming and as always we welcome the opportunity to bring you valuable information to help you in all your real estate endeavors!

Ten Questions Every Homeowner Should Ask an Agent

Christine@ChristineBrowning.com (Christine Browning) — Thu, 7 Feb 2013 07:48:00 -0800

Watch on your mobile device >>

As you embark upon what will be one of the most important transactions of your life – whether buying or selling a home – you should be absolutely certain that you are happy with the real estate agent you have hired to help you manage it.

To help you with this all-important hiring process, here are ten important questions to ask an agent before you decide on whether or not to hire them:

Question #1

How Close Do You Get in Sale Price Related to Asking Price?

It is important to ask for this information as it relates to the past 60 days. Given that many agents are not that active in the market, you would be best served to obtain the most recent information possible. As a seller, your agent’s ability to come close to the asking price is a strong attribute and can mean a difference of thousands of dollars in your transaction.

Question #2

How Many Days on Average Does It Take You To Sell a Home?

What’s the average number of days on the market for properties listed by your prospective agent? Since this statistic can reach as high as six to nine months and in some cases and as much as a year, it is important to ask how your prospective agent ranks on the scale.

Question #3

What is the Rate of Homes Sold on a Monthly Basis?

Knowing the absorption rate of homes similar to yours that are on the market allows valuable insight as to how the market is performing for your particular needs. Not only does it give sellers a glimpse into the system and how it would translate to their own sale but it also presents a broader view of the entire market in general.

Question #4

What Do You Do Differently To Get Homes Sold?

Especially with the current trying economic times, many agents have been faced with adversities trying to sell the homes on their list. One of the best ways to learn whether your agent is a self-starter is to find out what they have done in the past when they were unable to successfully sell homes. Ask why the agent feels the home(s) did not sell and then find out what they are doing differently to get them sold.

Question #5

What Percentage of Deals Do You Represent the Buyer Versus Seller?

Some agents work primarily with sellers while others work mostly with buyers and still others are experienced with dual-agency deals. Depending on your needs, you will benefit from an agent that specializes in one of the two. It is important to ask which side of the fence your prospective agent tends to represent.

Questions #6

How Many Homes Did You Sell Last Year?

Nothing speaks louder than numbers. A very important statistic, ask what the total number of homes sold last year was and if possible try to get a more long-term picture of the agent’s performance in this regard. You can also ask for a month-to-month breakdown to see if there are certain stronger months.

Questions #7

Can You Provide a List of the Ten Most Current Clients You Have Worked With?

Rather than rely on the given list of referrals that many agents have handpicked, it’s a good idea to obtain a list of clients that are currently working with this Realtor. It will provide a much-needed glimpse into the agent’s performance on various stages of real estate transactions.

Question #8

How Much of Your Work Day Do You Dedicate to the Real Estate Industry?

You want an agent that is 100% committed to their job and if they are focusing more on a day job with real estate being a secondary thing, you run the risk of inaccessibility, lack of knowledge and experience plus lackluster motivation. Find out how they feel about the real estate industry and whether they are passionate about their work.

Question #9

What is Your Style of Marketing – Proactive or Reactive?

What is your potential agent’s style of working? Does he or she speak to a large number of people each day? Are they proactive or reactive in nature when it comes to marketing? See how this lines up with your real estate needs. Are you in a hurry to buy or sell? Does a laid back agent hinder your efforts? Or does slow and steady work better for you?

Question #10

What Does Your Daily Schedule Look Like?

The typical schedule of a real estate professional can be very telling. By asking for a copy or general idea of how they conduct their day in terms of their work, you can get a good idea of how much time is devoted to the profession and what kind of business they are running.

How Soon Can I Buy a Home After a Short Sale or Foreclosure?

Christine@ChristineBrowning.com (Christine Browning) — Mon, 7 Jan 2013 08:25:00 -0800

Watch on your mobile device >>

Contrary to popular belief, a short sale does not have the same impact as a foreclosure when it comes to your credit outlook and buying another home. It turns out that with FHA loans you can typically get into another home just two years or so after a short sale. You do have to have an approved hardship such as divorce, job relocation or death. This does not apply to anyone merely trying to take advantage of the distressed sale market.

Homeowners Should Stay Current On Payments, Despite a Short Sale

The single most important thing to keep in mind is how you treat your debts leading up to the short sale. As long as the preceding 12 months are handled with care and all payments are up to date, most loan officers and underwriters will not have a problem with lending you money again.

Distressed Homeowners Need to Put a Plan of Action Into Place to Rebuild Credit

It’s important to have a solid plan in place. But even then, many homeowners are forced to stop making payments on their home, which leads to short sale or worse, foreclosure. If that were to happen the next step is to work hard at rebuilding your credit. This is where it can take anywhere from two years or more to get back into a home. The variance comes in a couple different areas. First, if you have some money to put down on a home it will likely increase your chances of being able to borrow after a short sale or foreclosure. With a conventional loan if you have 20% of the purchase price to put down, you can reasonably expect to move in 2 years after a foreclosure. It will be 3 years if you have 10% to put down and so on.

Creditors Will Scrutinize Those Credit Scores

Another factor is your credit score. Many people are able to maintain a good credit score despite being in situations of financial hardship. This works to their advantage when they go to buy another house.
~
The most critical piece to keep in mind is to maintain your payments and not be late on anything – even if you are facing short sale or foreclosure. Second, work to develop a game plan and then do whatever it takes to achieve your plan of action. For more information on this or anything else about a home in distressed situations, call your mortgage broker today.

One promising development that will also impact homeowners opting for short sale to relieve their financial hardship is that the Mortgage Forgiveness Debt Relief Act has been extended for another year. There had been much speculation as to whether or not this would happen in 2012 with the deadline the last day of the year but at the very last minute Congress decided to extend this benefit. Instrumental in helping struggling homeowners to get back on their feet, the Act provides tax relief by waiving the tax liability on discharged debt that would otherwise be considered income.

~
As always, we welcome the opportunity to serve you with this – and any other real estate concerns you may have. Contact us today so we can begin making your real estate dreams become a reality!

The Fiscal Cliff and The Mortgage Debt Forgiveness Act

Christine@ChristineBrowning.com (Christine Browning) — Thu, 3 Jan 2013 07:18:00 -0800

Mortgage Debt Forgiveness Act and the Fiscal Cliff

Mortgage Forgiveness Debt Relief Act Ends; How Does This Impact Your Taxes?

Christine@ChristineBrowning.com (Christine Browning) — Fri, 28 Dec 2012 07:42:00 -0800

Watch on your mobile device >>

For months now, the issue of whether or not the Mortgage Forgiveness Debt Relief Act will be extended has been on the minds of countless homeowners facing short sales as well as myriad industry professionals waiting and wondering.

Today, on the eve of the New Year – there is still no official word on the extension of this program. And while our government works at solving the Fiscal Cliff situation that looms in the air, we can only wait and watch then hope for the best. In the interim, however, it’s important to note that there are several misconceptions about the impact on this latest development, as clarified by Dan Parr, CPA.

Sellers Can Avoid Taxation on Their Short Sale in Three Ways

A common misconception centers on debt cancellation taxation in that most people neglect to realize there are three ways a seller can avoid taxes.

1. Primary Residence Exclusion

2. Bankruptcy Exclusion

3. Insolvency Exclusion

In case of primary residence exclusion, the seller owns and occupies the home and the debt cancellation is not taxable as per the Mortgage Forgiveness Relief Act. This is the area of debt exclusion that will be impacted by the new changes taking place.

Bankruptcy and insolvency exclusions result in no tax liability for dischargeable debt, regardless of the Act not being extended. With respect to insolvency, a scenario affecting many Americans doing short sales these days, as long as the seller’s net worth is less than the loss amount, the seller is considered “insolvent” at the time of sale and qualifies for the tax liability exclusion. This applies to both investment and primary residence homes.

Foreclosures and Short Sales Incur Tax Liability

A common misconception about debt cancellation and the corresponding tax liability is that foreclosures and short sales do not apply. In actuality, the same rules apply and the owner would have to qualify for one of the three tax exclusions as mentioned above.

Taxes Will Be Incurred Regardless of 1099 Receipt

Most homeowners think that if they do not receive a 1099 that represents the transaction, they are not then required to claim the debt cancellation on their tax filing. This is incorrect. The truth is that while a lender may or may not send out a 1099 income statement, it is very important that the seller report the taxable event for the year that the debt cancellation occurred.

Keep in mind that in all likelihood, the Act will be extended – of course it’s only our speculation at this point but this has been a program in action since 2007 and though we are seeing an improvement in the housing market overall, there is still much room for a full blown recovery. Perhaps in another two or three months we can expect an extension that would take into account the previous months of the year.

For information directly from theIRS on this topic, click here for further insight >>

If you have any questions about this, or other real estate related matters – I invite you to contact us today! We look forward to helping!

For any additional tax questions, please contact:

Daniel Parr, CPA

Parr Accounting Group, Inc.

855 SW Yates Ave, Suite 101

Bend, OR 97702

PH: 541-382-4664 x113

Fax: 541-330-2488

dan@parraccounting.com