Victor The Realtor

The nation’s foreclosure activity has fallen to its lowest level in over three years, according to a new report just released by RealtyTrac. Foreclosure filings were reported on 219,258 properties last month, as processing delays lengthened timelines. April’s tally is down 9 percent from March and down 34 percent from a year earlier. It marks the seventh straight month that RealtyTrac has recorded a decline in foreclosures.

Continue reading the full article here:

Foreclosure Activity at 40-Month Low: RealtyTrac.

Data released by the National Association of Realtors (NAR) Tuesday show that distressed properties – including bank-owned homes and pre-foreclosure short sales – made up 39 percent of the first quarter’s existing-home sales. That’s up from 36 percent a year earlier.

Continue reading full article: Report: REOs and Shorts Accounted for 39% of Q1 Existing-Home Sales.

The supply of REO is likely to remain steady for some time, in some cases close to 10 years.  Below is a graphic indicating number of months to clear shadow inventory nationally by county, via Standard & Poor’s.

Distressed homes – typically REOs and short sales – accounted for 40 percent of the existing homes sold in March, the National Association of Realtors (NAR) reported Wednesday.

The trade group notes that these properties generally sell at discounts in the vicinity of 20 percent. Their large market share served to dampen the median existing-home price. For all housing types, it came in at $159,600 last month, down 5.9 percent from March 2010.

Overall, sales of previously owned homes rose 3.7 percent last month as the spring buying season began to take hold. NAR described March’s reading as “continuing an uneven recovery,” following the 9.6 drop recorded in February.

Lawrence Yun, NAR’s chief economist, expects the improving sales pattern to continue.

“Existing-home sales have risen in six of the past eight months, so we’re clearly on a recovery path,” he said. “With rising jobs and excellent affordability conditions, we project moderate improvements into 2012, but not every month will show a gain – primarily because some buyers are finding it too difficult to obtain a mortgage.”

When the tax credit was out, there was a push from our real estate community that spurred a rally in the housing market. Getting seller paid down payment assistance bank on track would be an effective answer if it’s done correctly. Also, something to consider if you received the tax credit and are thinking about selling!

Distressed Properties Claim 40% of Existing-Home Sales.

Sales statistics and market information for the Lane County Area March 2011.

Lane County Market Report

Poll: 22% of Homeowners Have Difficulty Making Mortgage Payments.

In the 2009 Session, legislation was adopted that requires the installation of carbon monoxide alarms in all residences (including all rental units) with a carbon monoxide source at the point of sale on or after April 1, 2011.

To learn more about this new law, visit:

Oregon State Police – Oregon Office of State Fire Marshal Carbon Monoxide.

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

It’s been a real estate must have for decades, the open house. Sellers believe that having an open house will sell their home. Times have changed and so have buyers. I’m going to tell you why open houses don’t work and why they won’t sell your home.

So your home has just been placed on the market and you’re anxious to have your Realtor hold it open to the public. You spit-shine your door knobs and iron your mini blinds. You just know that someone will walk in off the street and offer you full price. Let’s put it in the newspaper and blow up some balloons, we’re going to sell a house today! Wrong.

On average less than 1% of all homes are sold by an open house. Your chances are probably better if you leave a post-it note on your mailbox and the mail carrier buys it.

The majority of foot traffic in an open house are nosy neighbors, bored Sunday travelers, those looking for decorating ideas and people who are not serious about buying a home. If a buyer walks in off the street and they are serious about purchasing, odds are your home won’t be a perfect match. There’s even the grim possibility of having a thief or someone with bad intentions enter your home anonymously.

If you’re a buyer shopping around and attending open houses without a buyer agent, you could get yourself into a negotiation/privacy issue. A lot of new home buyers don’t realize this, but the last thing you want is to buy a home without your own representation. If you go to open houses and talk with the seller’s agent, the information they gather on you could be used against you if you buy that home. Make sure to contact a buyer agent and let them make appointments for you. Also, this way, you won’t be contacted by a ton of different agents and your own agent will get to know what fits you. I always encourage my buyers to call, text or email me if they want to go out on the weekend and look for homes. I’m happy to schedule the appointments for you and make sure you’re represented. A lot of new home buyers want to just go out alone and browse. What if you actually like something while window shopping? Your own agent may not be able to assist you. You could end up stuck using the agent at the open house.

Most open houses are held open by new agents or the seller’s agent. If you’re a home buyer, working with a new agent is like having heart surgery performed on you by a brand new doctor. You’re taking a possible risk. The first thing any home buyer should do if they’re interested in buying a home is get their own buyer agent before hitting the streets on Sunday. Find an agent you’re comfortable with, one with experience, someone who is flexible with appointments and is full-time.

The Dirty Secret… Realtors hold open houses for two reasons: To appease the seller because they’ve requested it and believe it will help, and to pick up new buyers.

That’s right, most Realtors utilize open houses on Sunday for gaining new business! People that walk through the door are greeted by the Realtor and usually the conversation goes like this: “Hi, come on in I’m so and so with so and so company, (shake hands) Have a look around and let me know if you have any questions. I’ll be here.” When the potential buyers come back the Realtor asks, “So what did you think about the house?” Most of the responses are not enthusiastic and lead to something like, “It’s a little too small for us, It’s not really in our price range, It’s not exactly what we’re looking for.” etc. The Realtor then asks, “Well, what are you looking for? I can help. In fact, I have a list right here of other homes in the area.” There you have it.

The chances of someone walking in off the street and that property being the exact home to fit their entire list of needs is almost impossible, especially in a buyer’s market and there being so much to choose from.

The problem with the open house is:

• Realtors aren’t always able to accompany strangers while they walk through the home.
• It’s a waste of a buyer’s time to visit properties that don’t match their criteria.
• It’s a waste of the seller’s time to leave all day and stage the home each Sunday.
• It’s a waste of the Realtors time to advertise it and spend all day sitting in your home.
• It can lead to unnecessary foot traffic and the potential of theft or broken items.
• It makes the property/sellers look desperate if there are too many.
• Odds of a home selling that day are slim to none.
• Even if there is a serious buyer, they often feel rushed or the home becomes smaller with so many people in it and they don’t get the feel of the full potential and leave.

My favorite downside is the security risk.  You are taught all your life not to let strangers in your home, and then you put it up for sale and invite the whole town in!  Do you know who these people are?  Every year we are notified as agents about the criminals posing as home buyers, while stealing jewelery, prescriptions, or who know what at open houses.  Maybe it’s time to quit doing them or invest in a “nanny-cam”.

You’re better off focusing the time on marketing the home online and locally. A Realtor all day on Sunday can do so much more with their time for your benefit than sitting in your kitchen waiting for strangers to walk through.

Adding open houses to the newspaper is a thing of the past. Most buyers are online now and don’t have time for print ads. They have access to full photos and information of your home. They’ll decide online or from their agent if they want to “walk through” your home. It’s better to have them schedule an appointment with their agent and have their own private time in your home to slowly view it at their own pace. It’s safer and more reliable. Buyers that are working with a buyer agent are going to actually buy a home.

I won’t deny that there are open house success stories.  The question is, would that home have sold anyway?  Personally, I have never had a listing that didn’t sell if it was priced correctly and available for the buyer to get information or view it.  I say instead of asking your real estate agent to hold your home open on Sunday, instead ask them to spend a few hours marketing your home online. If they don’t know how or what else to do besides putting it on the MLS, putting a sign in the yard and an ad in the paper, you have a problem. It’s probably time to interview a new agent. Internet marketing is number one in today’s real estate market! Open houses were number one in yesterday’s real estate market.

Victor Gerth
Principle Broker
Off & Running Real Estate
victor@offandrunningrealestate.com
541.501.1363
Fax:  531.743.0210