Cash, Conventional or FHA?

Some people want to know whether they should apply for an FHA loan or Conventional loan. Some people ask if cash buyers have more power.

Well to put it simply, without really having to say it, CASH WINS!...most of the time. Obviously if the FHA or Conventional buyer has a much higher offer, that bank or homeowner is more likely to entertain it. But not always.

When a buyer comes in with cash it shows that they have the funds to close and will not have many condititions to meet before they can close.

A Conventional loan buyer has more power than an FHA buyer because he/she is putting down 20% of the sales price. So a seller knows that the buyer has more interest in the property and is perhaps a more solid buyer. They are less likely to fall out of escrow.

FHA is the hardest due to the fact that FHA buyers have to go through a rigorous, and I mean rigorous, process to get qualified. Sometimes a buyer is not always honest about their financial situation when qualifying for a loan. So when they receive their prequalification it may be on false terms, the loan will not be approved and the buyer will lose that property. Unfortunately this costs everyone time and money, including the buyer.

So if you are going to apply for a loan always be completely honest to the loan officer because they will find out everything about your financial situation.

Conventional is stronger and remember, CASH WINS.

Troy Batson ~ Broker
Duke Warner Realty
1033 NW Newport Ave
Bend, Oregon 97701
541.678.3725 or 541.382.8262
troybatson@dukewarner.com
troybatson.com

Go Green, save money!

Solar Homes are Lighter on the Pocketbook

There's a huge push in Central Oregon to conserve energy and cut related costs. Homes with energy-saving features are likely to be much more marketable today and in the future. Whether you're building a new home or remodeling a home, let the sun shine in to heat and (get this) cool your home.

Homeowners can start today by designing homes that take advantage of the earth's natural and renewable energy resources. Solar homes meet the basic criteria for energy efficiency and environmental responsibility.

Passive Solar Homes Save Energy, Money

Passive solar homes use heat from the sun to heat and cool homes. A home might be entirely or partially warmed by the sun depending on the home's design and the stage at which solar design is incorporated.

Large windows serve as heat collectors. Heat absorption is maximized with the perfect angle. An absorber in an indoor wall, or on the floor in direct sunlight collects and stores the sun's energy. The energy is moved through the home via a distribution system that relies on radiation, conduction and convection alone. It is possible to eliminate a heating bill with solar energy. Passive solar energy incorporates many natural elements including wind and trees. Design elements like landscape features, overhangs, and careful landscaping also come into play.

An active solar system uses fans and blowers to help distribute the heat. This usually requires photovoltaic panels to collect solar energy. The energy is then turned into electricity.

It might seem like an oxymoron to suggest you cool your home with the sun, but there is a wide variety of systems available to cool homes including, but certainly not limited to the use of a coolant that absorbs and actually dissipates heat from a structure.

Even if you're not building a new home and don't want to remodel a home entirely, you can take advantage of easy-to-install features to conserve energy including trees, insulation and window dressings that allow you to let the sun shine in when you seek warmth and block it out when you're trying to cool you home.

If you're looking for an energy efficient home, contact us today. If you have a green home you're ready to sell, let us guide you through the selling process.

Troy Batson ~ Broker
Duke Warner Realty
1033 NW Newport Ave
Bend, Oregon 97701
541.678.3725 or 541.382.8262
troybatson@dukewarner.com
troybatson.com

Remodeling doesn't always add up

According to Remodeling magazine's 2010 Remodeling Cost vs. Value Survey, done in partnership with the National Association of Realtors (NAR), most people planning a home remodeling project will pay a lot more for the job than they will get back in return when they sell. The report claims that on average, only 60% of remodeling costs in 2010 would be recouped by homeowners.

The report acknowledges that curb appeal continues to "play a strong role in a home's resale value." Because of this, the most lucrative of the remodeling projects was replacing the garage door. The report claims this is because garage doors "improve curb appeal in a way that can affect a potential buyer's first impression and, consequently, a home's resale value." According to Lawrence Yun, chief economist for NAR, curb appeal is essential if you want to sell your home. He stated, "In today's buyers market, given the large inventory, where people have so much selection, it's important to have the exterior catch the eye so they're willing to step inside."

Aside from replacing the garage door and a few other exterior projects, most remodel jobs returned a lower percentage of their costs in added home value than they did in 2009.

According to the survey, these remodeling projects will get you the most bang for your buck:

Project	Cost	Resale Value	Cost Recouped
Steel Entry Door Replacement	$1,218	$1,243	102.1%
Garage Door Replacement	$1,291	$1,083	83.9%
Fiber Cement Siding Replacement	$13,382	$10,707	80.0%

All other remodeling projects in 2010 recouped national averages below 80%, with home office remodeling and sunroom additions offering the lowest returns.

Two jobs tied for the best return on a midrange remodeling investment costing more than $10,000. Adding a wood deck or doing a minor kitchen remodel (which involves replacing cabinet doors and counters, buying new appliances, sinks and faucets and repainting walls and trim) each recouped 72.8% of their costs. Remodeling your basement or adding an attic bedroom can get you a higher return (approximately 70%) than adding a wing to your house.

Despite the falling percentages of returns on remodeling projects in 2010, it's important to remember that renovations can also improve the livability and enjoyment of your home. If you love your neighborhood and community, but your home is older or needs minor improvements, it's likely to cost you much less to remodel your current home rather than buying a new one. Replacing old, inefficient products and appliances with highly efficient ones may get you a decent return when you sell and, in the meantime, save you money on your utility bills.

If you chose to remodel, find ways to reduce the cost of your remodeling projects. Otherwise, getting a significant return will be much harder.

Troy Batson ~ Broker
Duke Warner Realty
1033 NW Newport Ave
Bend, Oregon 97701
541.678.3725 or 541.382.8262
troybatson@dukewarner.com
troybatson.com