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

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