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

Winter is a great time for Bend, Oregon Real Estate deals!

Temperatures are dropping and so is the number of homes that are currently selling. The majority of homes are usually sold during warmer months, particularly April through September. However, cold weather seems to offer homebuyers a better bargain.

Often, people who list their homes during the winter are moving out of necessity. Many people don't want to move their families during the middle of a school year, and most homes have more curb appeal to sell faster during warmer months. If a job transfer, school, or financial hardship is dictating a timeline for the seller, it can often lead to a better bargain for the buyer.

There are fewer buyers in the market from November through March, which you can use to your advantage as a homebuyer. It's inconvenient to go house shopping when it's cold outside, and most people don't want to move during the winter. With fewer buyers, there's less competition. If you decide to buy a home this winter, don't be afraid to negotiate the price. You may want to ask for more inclusions. However, make sure you are reasonable. The seller can always wait for the next buyer if your demands are too high.

Because of the slower market, industry professionals have more time to devote to your real estate search. Lenders are usually able to process your paperwork quickly and get you approved.

Now is your chance to get into the Bend Real Estate Market, don't let this opportunity pass you by. .

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

Tax Credits are Great Incentives to Go Green Now!

There's never been a better time to "go green." Federal tax credits for energy efficiency (available through 2009 and 2010) are amazing incentives to build energy efficient homes and upgrade existing homes.

Through 2010 existing home owners can save 30 percent of the cost of upgrades, up to $1,500, according to the US Environmental Protection Agency and US Department of Energy's Energy Star program.

Qualifying tax credits are available for:

• Windows and doors


• Insulation


• Metal and asphalt roofs


• HVAC


• Non-solar water heaters


• Biomass stoves

There's more great news on energy-saving tax credits. Many existing homes and new construction projects are eligible for tax credits at 30 percent of the cost with NO upper limit through 2016.

Get credit for:

• Geothermal heat pumps


• Solar panels


• Solar water heaters


• Small wind energy systems


• Fuel cells

Tax Credits Mean Great Returns (on your taxes and your investment)
A tax credit is not the same as a tax deduction. A tax deduction reduces the amount of taxes you owe. A tax credit actually reduces your taxes dollar-for-dollar.

Some states and communities are also chipping in to save energy by offering additional tax incentives for energy-efficient homes. Check out your stat's energy office website or call to find out more about area incentives!

Win, Win Savings
There's really no way to lose with energy-saving incentives.

You can save at least 30 percent on upgrades to your new or existing home.

1. You will save on utility bills every month


2. Your home will be more efficient and therefore more comfortable


3. You do your part to protect the environment


4. Research and access local and state funds for even more savings!

To find out if your project qualifies for the energy-saving tax credit, visit the Energy Star website at http://www.energystar.com.

Need help finding out about area incentives? Contact us today and be sure to ask about our most energy-efficient listings!

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

10 Reasons to buy a Home in Bend Oregon

Enough with the doom and gloom about homeownership.

Sure, maybe there's more pain to come in the housing market. But when Time magazine starts running covers that declare "Owning a home may no longer make economic sense," it's time to say: Enough is enough. This is what "capitulation" looks like. Everyone has given up.

After all, at the peak of the bubble five years ago, Time had a different take. "Home Sweet Home," declared its cover then, as it celebrated the boom and asked: "Will your house make you rich?"

But it's not enough just to be contrarian. So here are 10 reasons why it's good to buy a home.

1. You can get a good deal. Especially if you play hardball. This is a buyer's market. Most of the other buyers have now vanished, as the tax credits on purchases have just expired. We're four to five years into the biggest housing bust in modern history. And prices have come down a long way- about 30% from their peak, according to Standard & Poor's Case-Shiller Index, which tracks home prices in 20 big cities. Yes, it's mixed. New York is only down 20%. Arizona has halved. Will prices fall further? Sure, they could. You'll never catch the bottom. It doesn't really matter so much in the long haul.

Where is fair value? Fund manager Jeremy Grantham at GMO, who predicted the bust with remarkable accuracy, said two years ago that home prices needed to fall another 17% to reach fair value in relation to household incomes. Case-Shiller since then: Down 18%.

2. Mortgages are cheap. You can get a 30-year loan for around 4.3%. What's not to like? These are the lowest rates on record. As recently as two years ago they were about 6.3%. That drop slashes your monthly repayment by a fifth. If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.

3. You'll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you'll get a tax break on capital gains-if any-when you sell. Sure, you'll need to do your math. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.

4. It'll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension-zoning permitted-or paint everything bright orange. Few landlords are so indulgent; for renters, these types of changes are often impossible. You'll feel better about your own place if you own it than if you rent. Many years ago, when I was working for a political campaign in England, I toured a working-class northern town. Mrs. Thatcher had just begun selling off public housing to the tenants. "You can tell the ones that have been bought," said my local guide. "They've painted the front door. It's the first thing people do when they buy." It was a small sign that said something big.

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5. You'll get a better home. In many parts of the country it can be really hard to find a good rental. All the best places are sold as condos. Money talks. Once again, this is a case by case issue: In Miami right now there are so many vacant luxury condos that owners will rent them out for a fraction of the cost of owning. But few places are so favored. Generally speaking, if you want the best home in the best neighborhood, you're better off buying.

6. It offers some inflation protection. No, it's not perfect. But studies by Professor Karl "Chip" Case (of Case-Shiller), and others, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.

7. It's risk capital. No, your home isn't the stock market and you shouldn't view it as the way to get rich. But if the economy does surprise us all and start booming, sooner or later real estate prices will head up again, too. One lesson from the last few years is that stocks are incredibly hard for most normal people to own in large quantities-for practical as well as psychological reasons. Equity in a home is another way of linking part of your portfolio to the long-term growth of the economy-if it happens-and still managing to sleep at night.

8. It's forced savings. If you can rent an apartment for $2,000 month instead of buying one for $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won't. Most, I dare say. Once again, you have to do your math, but the part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.

9. There is a lot to choose from. There is a glut of homes in most of the country. The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.

10. Sooner or later, the market will clear. Demand and supply will meet. The population is forecast to grow by more than 100 million people over the next 40 years. That means maybe 40 million new households looking for homes. Meanwhile, this housing glut will work itself out. Many of the homes will be bought. But many more will simply be destroyed-either deliberately, or by inaction. This is already happening. Even two years ago, when I toured the housing slump in western Florida, I saw bankrupt condo developments that were fast becoming derelict. And, finally, a lot of the "glut" simply won't matter: It's concentrated in a few areas, like Florida and Nevada. Unless you live there, the glut won't have any long-term impact on housing supply in your town.

Written by: Brett Arends

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

Visit Bend Video: Discover Bend Oregon Video

Visit Bend Video: Discover Bend Oregon Video

Do I need to get a Mortgage Pre-Approval?

While it's true that mortgage lenders are tightening the purse strings, home loans are still out there and readily available to those who qualify. The only way you will know if you do qualify is to seek a mortgage pre-approval.

A mortgage pre-approval will help: 

• confirm your eligibility for a home loan


• establish a price range


• give you confidence in the home buying process


• reassure home sellers of your ability to secure a loan

Your loan application information will be the basis for your mortgage pre-approval. Lenders will also weigh heavily three credit reports and income verification. Before you shop for a mortgage pre-approval, review your own credit history. Determine what you can comfortably afford to pay for housing including taxes and insurance.

Before you visit a lender, or fill out a loan application, check your credit report for potential problems. Your credit score will help determine whether or not you get a loan, the terms of the loan and the interest rate you will pay.

Federal law entitles you to one free credit report in a 12-month period from each major credit reporting agency. Get a free report at www.annualcreditreport.com. Check the report for errors and resolve errors before you apply for a loan. You can also call the three major nationwide consumer credit reporting companies for your free report:

• Equifax: 1-877-576-5734; www.equifax.com


• Experian: 1-888-397-3742; www.experian.com/fraud


• TransUnion: 1-800-680-7289; www.transunion.com

Mortgage Pre-approval vs. Mortgage Pre-Qualification

A mortgage pre-approval is not the same as a mortgage pre-qualification. Many people confuse the two terms. A mortgage pre-qualification is the first step to getting a mortgage pre-approval. 

During the mortgage pre-qualification process, a mortgage lender will evaluate your financial status based on information you give over the telephone or internet. It does not usually require an application fee or require you to substantiate income and expense claims. The lender will determine how much you are likely to be able to afford for housing. It is important to be completely honest with your lender and yourself during this process. 

A mortgage pre-approval is more formal. It will require fees including an application fee and a credit report fee. You will be asked to provide documents to verify employment or other forms of income. The mortgage lender working on the mortgage pre-approval will pull your credit reports and review your credit history. Mortgage pre-approval is a better guarantee of your eligibility than a mortgage pre-qualification. 

Mortgage Pre-Approval Gives You Bargaining Power

Home shoppers are often disappointed when they are turned down for a loan. Home sellers suffer too when their intended buyer is not able to secure a loan. Sellers are wary of buyers who may not qualify for a home loan. A mortgage pre-approval will give you bargaining power.

Our company has a vast network of lenders and other real estate transaction support services. Contact us today for help getting pre-approved for a home loan.

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

What is a Comparative Market Analysis or CMA?

If you're thinking about selling your home or property, a comparative market analysis or CMA is a great way to help you determine the actual value of your home.

You could conduct your own comparative market analysis, but it's best to seek the assistance of a trained real estate professional. Real estate professionals have access to up-to-date geographic-related information about:

- Active, pending and expired real estate listings
- Comparable home sales
- Market trends including the average number of days area homes remain on the market before they are sold
- An area's recent highest, lowest and average home sales prices

When you enlist a real estate agent to provide you with a CMA, you are likely to get more complete information faster. An agent will also help you to analyze the information in a comparative market analysis. A CMA is in no way a price guarantee. There are many factors that go into pricing a home and some of them are very personal including a seller's motivation. Some sellers are financially distressed, or are under pressure to relocate for employment purposes and are willing to drop the price of a home for a quick sale. Other sellers are willing to wait for the right buyer to purchase his or her home at a premium price.

The depth of comparative market analysis reports varies. Ask your real estate agent to explain what you can expect to learn from the CMA he or she provides. At the very least, a standard CMA will include:

Active listings or homes currently for sale. This will give you a snapshot of homes your potential buyers will be viewing and comparing to yours. A seller can list a home at any sales price, so be careful not to read too much into active listings. In the end, a home is worth what a buyer is willing to pay.

Pending listings. A pending listing is a home under contract. This means the sale has not yet closed. Like sold listings, pending listings can help you determine what buyers are willing to pay for property comparable to yours. Because pending sales are still in the legal negotiation process, this information is often kept private.

Sold listings. Appraisers are strongly influenced by the price at which comparable homes have sold in the same geographic area as your home. An estimated market value will be largely based on sold listings.

Withdrawn or canceled listings. Sellers sometimes withdraw their homes from the market and the reasons vary. A change in life circumstances, low offers, and repairs required for buyer financing are just a few. This information can, however, be very helpful in determining how high is too high.

Expired listings. An expired listing is one that has been on the market beyond the length of a realtor contract. Sometimes these properties are overpriced. Sometimes they are not marketed aggressively. Occasionally a seller will change agents in the middle of the sales process.

It is very important to only compare properties that are similar to yours in a comparative market analysis. In some locations, this will be hard to do. Important comparables include:

• Square footage


• Location


• Type and age of construction


• Amenities and upgrades


• Condition

Of all of these factors, you have the most influence over condition and amenities and upgrades. A thorough comparative market analysis or CMA will help you determine whether or not repairs and upgrades will significantly increase the value of your home. It's best to seek a CMA before spending too much money on repairs and remodeling.

Call us today for your comparative market analysis or CMA. We're here to help you price your home right.

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

Don't Make These Mistakes When Buying Your Next Home

You've determined that you're ready to buy a home. You've saved enough for a down payment, you've been searching for properties, and you're ready to make your dream a reality. Buying a home is an exciting process; however, if you're not careful, it can turn into a nightmare. Here are 6 common home buyer mistakes to avoid.

1. Not Budgeting Properly

It's easy to overestimate what you can afford. Although owning a home may be a better investment than renting, it's not necessarily going to be cheaper. Take a good look at your income and expenses for a few months before determining what you can comfortably afford. Make a budget sheet using Microsoft Excel or any other budgeting software. List all your income as well as every single expense, including food, gifts, and even haircuts. Keep in mind any emergency expenses as well.

When budgeting, don't forget about hidden costs including closing costs, homeowner's insurance, property taxes, HOA fees, and décor and furniture to fill your new home.

2. Neglecting your Credit Report Prior to Getting Approved

Your credit score can be either helpful or detrimental to your loan process. Getting a full credit report from all three credit reporting agencies - Experian, Equifax, and TransUnion - before applying for your home loan will not only let you know how credit-worthy you are, it can lead you to possible reporting errors. One study found that as many as 25 percent of credit reports have damaging errors.

3. Not Getting Pre-approved for a Home Loan before Searching

Most sellers prefer bids from prospective buyers who are already pre-approved for a home loan. Being pre-qualified and pre-approved are different. Pre-qualification is usually the unofficial process of informing a lender of your credit status, income, and debt. The lender can usually give you a ballpark figure of what type of loan they may offer. Pre-qualification is based on your word alone and doesn't hold much weight with sellers.

Pre-approval is the verification of the information you provided to the lender. This process will give you a better idea of how much the bank will loan you. Getting pre-approved can get you a step ahead other potential bidders that have no pre-approval.

4. Skipping the Home Inspection

You love that old fixer-upper, but skipping the home inspection can cost you as much in repairs as the cost of the home itself. The home inspection should include the overall foundation and structural features of the house, the roof, walls, plumbing, the presence of mold, pest infestations, heating, air conditioning, appliances, and the electrical system. Also, ensure that your inspector is certified with the American Society of Home Inspectors.

5. Picking the wrong neighborhood

You've found a home you love, but do you know what happens in the neighborhood after dark? Do you know the crime rate? What is the traffic like during rush hour? How is the school district?

Knock on your potential neighbors' doors, and don't be afraid to ask questions. Call the school principal, or talk to parents who are waiting to pick up their kids after school. Read the local newspaper to learn more about the community. There are many real estate blogs and community websites on the internet so before buying the home, check out the neighborhood.

6. Using a Bad Real Estate Agent or No Agent

You want a real estate agent who understands your needs and limitations and will work for you and look out for your interests. Get references from friends, family, co-workers, and neighbors. Consider interviewing a few different agents to find out about their activity and experience in your area.

It's definitely possible to buy a home without the help of a professional real estate agent, but realtors have access to all the homes on the market through the multiple listing service (MLS). Unless you are in the real estate business yourself, you'll likely not have any access to the MLS in your area. Real estate agents spend their time sifting through listings, making appointments to show homes, meeting with inspectors, and helping you create a comparative market analysis to determine proper pricing.

The real estate agent you choose could be the greatest asset or biggest obstacle to finding your dream home.

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

Third Quarter National Statistics Show Promising Sales Increase

Third quarter 2009 existing home sales figures are in. The National Association of REALTORS® is reporting a rebound in the existing home market. The association credits the recent increase to first-time home buyers hoping to take advantage of an $8,000 federal tax credit targeting them. In fact, gains in the housing market over the last six months appear to be related to the credit, according to an Oct. 23 report released by NAR.

The term, "existing home sales" refers to:

• Single-family homes


• Townhomes


• Condominiums


• Co-ops

Sales increased 9.4 percent to a seasonally adjusted rate of 5.57 million units in September compared to 5.09 million in August. The sales rate is 9.2 percent higher than that of September 2008 when 5.10 million units sold.

"Sales activity is at the highest level in over two years, since it hit 5.73 million in July 2007," according to NAR an association that represents 1.2 million members involved in all aspects of the residential and commercial real estate industries.

The association's chief economist, Lawrence Yun, attributes the sales increase to the Federal Stimulus Package's First-Time Home Buyer Tax Credit of $8,000 made available to a specific socioeconomic group of Americans. Yun said the tax credit is working, but sites a desperate need for the tax credit to be extended. The tax credit is set to expire Nov. 30. All qualifying home sales must be completed by that date in order for home buyers to be eligible for the stimulus windfall. NAR is pushing for the credit to be expanded to more buyers through the middle of 2010 in order to maintain sales momentum and secure the housing industry's recovery.

While there's talk on Capitol Hill of extending the tax credit, fraudulent claims for the first-time home buyer tax credit have some legislators raising eyebrows. In an Oct. 23 Los Angeles Times business article reporter Tiffany Hsu drew attention to the fact that 90,000 ineligible claimants have applied for the credit including one 4-year-old child.

According to Hsu's article, more than 1.4 million claims have been made for the home buyer's credit. Hundreds of thousands more claims are expected when tax returns are filed in 2010. Feds expect to pay about $18 billion in tax credits. There's talk on the hill of creating better checks and balances and more regulations that specify a minimum home buyer age of 18.

In the NAR report, Yun praised the market's improvement, but said it still has a long way to go. "Despite spectacular gains in the stock market, principally from the financial sector recovery, most of the 75 million home owning families have more wealth tied to their homes. Home values could soon turn consistently positive and help the broad base of middle-class families, but we are not there yet," he said. "We're getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth and to fully remove consumer fears, which would then revive the broader economy. Without a firm foundation for middle-class wealth recovery, the post-recession economic growth likely will be one of the weakest in U.S. history."

On Nov. 13, 2009, NAR will release the 2009 National Association of Realtors® Profile of Home Buyers and Sellers. The report is expected to demonstrate that more than 45 percent of homes sold in the last year were purchased by first-time home buyers. A separate practitioner survey shows distressed homes accounted for 29 percent of transactions in September.

Prices are still low and lenders are willing to finance homes for qualified buyers. Contact us today to begin the search for your quality, affordable home.

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

Managing Your Investment Property

Real estate can be one of the best investments you can make. If you plan on investing in and managing rental property, organizational and management skills are a necessity, along with a working knowledge about real estate matters. Here are 5 tips for managing investment property.

Screen Tenants Well

Evaluate prospective tenants by utilizing background checks, credit histories, personal references and employment histories. Require every applicant to provide credit and employment references. Don't be influenced by personal references. Contact previous real estate agents, landlords, employers, accountants, and/or bankers. Ask the question:

Do you believe the applicant(s) would be able to pay $x per month for y months and keep the property clean and in good condition?

Set Expectations for Tenants

Talk with your tenants and set expectations. Ensure that payment arrangements are clear verbally and in the lease. Be consistent. Make late fee assessments clear in the lease agreement and collect late fees when necessary.

Let all tenants know upfront they need to get any changes to the property approved by you. Let them know that any unauthorized changes can result in a loss of the security deposit. When managing investment properties, you want them to appeal to a broad population. Keep carpets and walls relatively neutral and avoid any exotic colors. Ensure that your tenants know they are free to make cosmetic upgrades as long as they are approved by you first.

Take pictures of the inside and outside of the house before a tenant moves in and/or out. Be sure the pictures are dated.

Consider Using a Professional Managing Agent

Utilizing the services of an experienced, professional managing agent can save you time and hassle. Professional Managing Agents have detailed up-to-date knowledge of the residential tenancy legislation, an understanding of local vacancy and rental movements, a background in repairs and maintenance, a reliable network, an awareness of housing price movements, and knowledge of insurance and property taxation.

A Professional Managing Agent can help you manage inspections, property showings, tenant issues, and hiring an agent allows you to remain somewhat anonymous acting as the buffer between you and the tenant.

Consider the cost carefully as hiring a Professional Managing Agent will reduce your income. Across the country, property management fees normally run from 7% to 10% of income on averag

Cover Your Assets

Obtain liability, fire, theft, and other insurance on rental property. As a landlord, you should have commercial insurance, not a typical homeowner's policy. In addition to insurance, you need to have at least one Limited Liability Company (LLC) to protect your assets rather than owning the property personally.

Be Realistic

Have reasonable expectations as an investor. Don't expect to buy an investment property and immediately enjoy a positive cash flow, meaning the rent you collect exceeds all of your out-of-pocket expenses. Many investment property owners go 3 to 5 years before cash flow turns positive. Immediate positive cash flow usually happens when the investor makes a large down payment and has relatively low mortgage costs.

Have an idea of how much rent you can charge. Research how much comparable properties rent for. A good rule of thumb is to set the rent at 95% of the current market value. Rental properties which are listed just below market value attract the best referenced tenants and maintain minimum levels of vacancy and repair/maintenance.

Owning investment property can be very rewarding, but you can't expect to sit back and collect income year after year without doing any work on your property. Investment real estate can be a worthwhile investment if you are well prepared to face any challenges that may come along.

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

Considering a Short Sale?

A short sale is when a Lender agrees to accept a mortgage payoff amount for less than what is owed. In a short sale, the homeowner generally cannot continue to make their mortgage payment.

Although short sales can be appealing because they are usually priced below market value, there could be some drawbacks. Consider the following when deciding whether or not to put an offer on a short sale.

Does Your Agent Have Short Sale Experience?

If your agent has no experience with short sales, hire a new agent that does. Agents with short sale experience know how to expedite the transaction while protecting your interests. Agents with short sale experience also know how to deal with the Lender once an offer has been made. The Agent should send your loan preapproval letter, a copy of your earnest money deposit, and a list of comparable sales that support your offer on the home to the Lender.

Do You Have Time?

Short sale transactions aren't speedy and require time for the Lender's approval. Some short sales can take a year or longer to close. Some Lenders submit short sales to a committee, but most can make a decision within two to three months. Get a name and phone number for the appropriate contact at the Lender. Don't send an offer blindly to a department. Consider giving the Lender a timeline to respond.Even once an agreement is struck, there is still no guarantee the short sale will go through.

Are You Willing to Negotiate?

In many cases, the Lender will reject your initial offer and come back with a counteroffer. Determine beforehand what your absolute highest limit is, and don't be afraid to walk away if the Lender won't meet your figure. Homes that are priced below market value will receive multiple offers. You want to make an offer that will beat the competition yet still be below market.

Did You Check the Public Records?

Make sure the Lender has already approved the short sale. If the seller has not actually gone into default yet, the bank may not be interested in a short sale. The bank may also not be interested in a short sale if it can get more money by foreclosing. Also, ask the seller or his agent what liens are on the property and which Lender is the primary lien holder. Your agent can also find out who is on title, whether a foreclosure notice has been filed, and how much the Lender is owed. This is important because it will help you to determine how much to offer. If there is more than one mortgage loan on the property, it could be problematic, and at the least, much more time consuming.

Have you Weighed the Pros and Cons?

If you are considering putting an offer on a short-sale, proceed with both caution and patience. Some short sales are priced below market value, creating a great opportunity for buyers to purchase a home when they otherwise might not be able to afford one. On the other hand, many banks have little interest in selling homes below market value. The listing price could merely be the amount the listing agent thinks the bank might accept, rather than what the bank has agreed to. If the home is priced far below market value, the seller may be trying to generate a bidding war, which could just be a waste of time.

Because it can take the Lender so long to reply to your offer, it's in your best interest to keep looking at other houses while you wait. Don't be afraid to proceed with purchasing another home if it's in your price range and is a simpler purchase. Make sure your agent writes a short sale purchase agreement to allow you to retain flexibility. However, short sales can be a great deal for some buyers and do occasionally close successfully.

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

The Value of Long-Term Homeownership

Despite the decline in home prices over the past few years, the National Association of Realtors (NAR) recently released a survey concluding that moving into a new home, particularly over the long-term, is a good investment.

The typical seller is experiencing positive returns, and the vast majority of homeowners see their property as a good investment, according to the latest consumer survey of home buyers and sellers.

Although typical sellers had been in their previous home for eight years, up from seven years in a 2009 study, first-time buyers plan to stay for an average of 10 years. Repeat buyers plan to hold their property for 15 years.

NAR 2010 President Vicki Cox Golder said the pattern of home buyers purchasing with a long-term intent has solidified over the past few years. "This underscores two simple facts - homeownership encourages stability, and the longer you own, the better your investment. . . Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property."

According to the NAR, even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent.

Paul Bishop, NAR vice president of research, said "Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks," he said. "Even with the turmoil created by the housing boom and bust, this indicates the long-term view of homeownership as a fundamental goal and value remains sound. In fact, the single biggest reason most people buy a home is the simple desire to own a home of their own, cited by 31 percent of respondents, including 53 percent of first-time buyers.

"Clearly the agenda here is sustainable homeownership," said Ron Phipps, incoming president of the NAR. "We know homeownership matters. Long-term, it is very, very important. But we want to make sure that people who are buying homes are able to enjoy them and support them over the longer haul. . . There are people who need to rent, and that is fine. . . The market should accommodate that. But the majority of families are better off with homeownership for the long term.

"I think it will be interesting to watch," said Phipps. "The market will be very creative in what it encourages. I like the entrepreneurial nature of developers and Realtors in figuring out what that future is. Right now, I am much more focused on the near future. The long-term market is strong."

Other benefits of long-term homeownership include:

• Social cohesion and stronger communities. Long-term homeowners move less than renters, and therefore, they stay in the same community longer.


• Educational achievement. Studies show that the decision to stay in school is more frequent for those raised by parents who are homeowners compared to those whose parents are renters. Also, changing schools frequently due to moving can negatively impact a child's educational outcome.


• Civic participation. The longer a homeowner is part of a community, the more likely he is to be politically active and vote in local elections. Long-term homeowners have a higher membership in voluntary organizations.


• Lower crime rate. It is easier for homeowners to recognize perpetrators in stable neighborhoods.


• Better quality of home. Long-term homeowners spend more time and money maintaining their property. Neighbors can also influence other homeowners to improve their property, resulting in a better overall quality of the community.

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

Bend, Oregon Foreclosure and Short Sale Report ~ September '10

Active Residential Listing Report ~ September 7, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1469	670	245	311
Active Short Sales:	414 (28%)	200 (30%)	23 (9%)	56 (18%)
Bank Owned Listings:	173 (12%)	114 (17%)	16 (7%)	51 (16%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond dropping to 40% and 47% combined distressed listings I would say we have leveled off and are starting to decrease. Combine this with the number of homes being sold and the decreasing supply things are starting to change for the positive. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend Oregon Foreclosures and Short Sales Report ~ August '10

Active Residential Listing Report ~ August 2, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1493	654	238	298
Active Short Sales:	442 (30%)	203 (31%)	18 (7%)	58 (19%)
Bank Owned Listings:	164 (11%)	92 (14%)	17 (7%)	46 (15%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond dropping to 41% and 45% combined distressed listings I would say we have leveled off and are starting to decrease. Combine this with the number of homes being sold and the decreasing supply things are starting to change for the positive. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend, Oregon Foreclosure and Short Sale Report ~ June '10

Active Residential Listing Report ~ June 2, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1441	660	223	291
Active Short Sales:	473 (33%)	216 (33%)	21 (9%)	69 (24%)
Bank Owned Listings:	132 (9%)	74 (11%)	11 (5%)	39 (13%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond dropping to 42% and 44% combined distressed listings I would say we have leveled off and are starting to decrease. Combine this with the number of homes being sold and the decreasing supply things are starting to change for the positive. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend, Oregon Foreclosure and Short Sale Report ~ May '10

Active Residential Listing Report ~ May 5, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1465	676	202	301
Active Short Sales:	468 (32%)	227 (34%)	21 (10%)	72 (24%)
Bank Owned Listings:	155 (11%)	88 (13%)	9 (4%)	46 (15%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond dropping to 43% and 47% combined distressed listings I would say we have leveled off and are starting to decrease. Combine this with the number of homes being sold and the decreasing supply things are starting to change for the positive. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend, Oregon Foresclosure and Short Sale Report ~ April 2, 2010

Active Residential Listing Report ~ April 2, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1283	587	182	269
Active Short Sales:	438 (34%)	208 (35%)	17 (9%)	72 (27%)
Bank Owned Listings:	127 (10%)	71 (12%)	9 (5%)	33 (12%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond dropping to 44% and 47% combined distressed listings I would say we have leveled off and are starting to decrease. Combine this with the number of homes being sold and the decreasing supply things are starting to change for the positive. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend, Oregon Foreclosure and Short Sales Report ~ March '10

Active Residential Listing Report ~ March 2, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1378	629	176	294
Active Short Sales:	490 (36%)	232 (37%)	21 (12%)	76 (26%)
Bank Owned Listings:	162 (12%)	94 (15%)	13 (7%)	47 (16%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond hitting 48% and 52% combined distressed listings I would say we have a ways to go. Even though these numbers have been rising over the past year, the number of homes being sold has risen and the supply has fallen considerably. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend, Oregon Foreclosure and Short Sale Report ~ Feb. '10

Active Residential Listing Report ~ February 1, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1323	617	171	294
Active Short Sales:	479 (36%)	230 (37%)	21 (12%)	70 (24%)
Bank Owned Listings:	161 (12%)	94 (15%)	8 (5%)	41 (14%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond hitting 48% and 52% combined distressed listings I would say we have a ways to go. Even though these numbers have been rising over the past year, the number of homes being sold has risen and the supply has fallen considerably. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend, Oregon Foreclosure and Short Sale Report ~ January '10

Active Residential Listing Report ~ January 4, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1256	576	167	267
Active Short Sales:	454 (36%)	213 (37%)	19 (11%)	68 (25%)
Bank Owned Listings:	148 (12%)	96 (17%)	9 (5%)	35 (13%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond hitting 48% and 54% combined distressed listings I would say we have a ways to go. Even though these numbers have been rising over the past year, the number of homes being sold has risen and the supply has fallen considerably. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262