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