Living Beaverton - Your guide to everything Beaverton

A lot of insurance companies have their renewal time at the beginning quarter of the year. As the bill gets bigger and bigger each year, you are wondering what to do to lower it.

• Most people insure their home for the cost to buy a new home. When deciding how much to insure your home for, don't include the value of the land. Only the cost of rebuilding.


• Inquire about special discounts with your present insurer. Are you eligible for a long time customer discount? Can you get a discount for also having your automobile insurance with them? Do they offer a discount to you if you are over the age of 55?


• Ask your employer if they offer a group coverage rate. Just like health insurance, some employers offer home and auto coverage at a discounted group rate.


• Call around! Even through your present insurer may offer long term discounts, it still may be a far better value to go somewhere else.


• Is your home safe? Ask you insurer to do an evaluation of your home and if they give a discount on insurance if this is done. (Smoke Detectors, Burglar Alarms, Carbon Monoxide Detectors)


• Raise your deductible to $1,000 or maybe $2,000 if your insurer will let you. This maybe able to save you over 20% on your monthly payments.

Finally, review the insurance company's financial rating. You want to hire a company that has an A+++ rating to insure that the company is strong enough, that if there should be a major disaster, that they will be able to pay your claim. 



Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

You started prepping your home to put on the market. This is the time to consult a Realtor®. Why, you may ask? The professional Realtor® will help you with hints that will make your house a home to a potential buyer. A competent professional Realtor® will not try to list the home until it is ready. They want to see you get the most for your home and not worry about losing it to another agent, because they wanted to do what was right for you.

The thing I do with most of my clients is I take them out to the street in front of their home and put them in my car. I then tell them, "OK, you are a buyer who I have just pulled up with. Now let us get out of the car and evaluate your home and tell me if you would buy it?" This really scares most sellers immediately because they realize that the curb appeal that was there when they bought their house is no longer there. They thought they were selling their home, when what they were really selling is a picture. A buyer wants something that they can take a picture of and show their friends. "Look what we just bought!"

When you have lived in a home for a long time, clutter happens. No avoiding it! But now you want to move. Why not pack everything up except the essentials? Empty the closets, the garage, and even the kitchen. You are going to have to do it anyway, why not do it now? A buyer wants to see a home that has plenty of storage for all their clutter, but if you have every space filled to the roof in the home, they look at it and say, "This house doesn't have enough room for all our stuff." The sad part is, they end up buying the house 2 blocks down for $10,000 more that has 200 less square feet.

Time to have a painting party! Invite all your friends over for pizza and pop, and have them help you paint your home in record time! Paint your walls in white or off-white colors. The reason for this is it makes the home more inviting and seem more open.

This is a big one and is the most difficult for most sellers. Take down all the personal photos and colorings from all walls and the refrigerator. When potential buyers come into a home they look at that stuff and comment. Yes they like it, but it takes their mind off the purchase of you home. They see you in it, instead of trying to move themselves in mentally.

Finally, go to a new housing development and take a look at the model home. Does your home look like this? The reason model homes sell is because the home is staged. This means that they took the home and made it look livable, but not lived in. This is a major difference.

Remember a buyer needs to feel welcome, like they were walking into their own home. If they feel like they are home, it will be easier for them to imagine themselves living there.




Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

When you put your home on the market your agent assumes that you want to sell your home as quickly as possible for the highest amount of profit. If this not what you have in mind, you need to tell your agent up front what you want.

Do you own an investment property? Do you ever worry about how you are going to make money with that property? Most investors think the only way to make money is the rent. This is just not the truth! If you have a real estate agent that is telling you this property will make you money for years to come is doing you a disservice. YOU can make up to 19% on your investment property without ANY money out of pocket!

Most owners of rental property only look at the money they bring in each month. This is not the way to look at rental property. It is just one of the four ways a rental property can make you money. The four parts are: debt service, cash flow before taxes, taxable income and appreciation.

If you take your present investment property and purchase a new property, with only the equity that you have built in your current property you could do this year in and year out with  NO out of pocket expenses. With the help of the right real estate agent you could buy a duplex that could not only put money in your pocket each month, it could also pay for the mortgage, be a great tax write off and with the appreciation could earn you 19% or more on your original investment! That original investment was paid for you by the equity in your present rental property.  This 19% can also be earned EVERY YEAR and I will gladly sit down with you and show you how this can be done.



Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

This topic is very important to me. I've seen a lot of mis-information out there and want to clear some of it up. I am a real estate agent, my career of choice. My job is to put people in to homes, not take them out of it. Foreclosure is something that NEVER has to happen. It is true, it does happen, but with the right information it can be avoided.

Don't avoid talking to your lender...this is the worst thing you can do. The lender doesn't want your home!

There are a lot of questions that need to be answered before you continue to go forward and make an informed decision. The first question that I would ask yourself is "Has the situation that caused the default been resolved?" If your answer is yes, then your next question is that if you were all of a sudden brought current "Could you continue with your house payments without a problem?" If your answer was yes again, then you can, 90% of the time, keep your home and avoid foreclosure. (Don't fall for the short sale con-artist) My suggestion to you at this point, is to call your lender and try to set up a one-time forbearance. (A forbearance is a postponement of loan payments, granted by a lender or creditor, for a temporary period of time. This is done to give the borrower time to make up for overdue payments.) Also you could possibly have the default amount added to the end of the loan.

Now, let us take a look at your options if you answered no to either of the earlier questions. If you still want to try to keep your home and have enough equity, if you act fast enough you maybe able to refinance and lower your payments. Hopefully giving you enough space between your current payments and what the payments will now be that you can afford to keep the home.

OK, worst case scenario you can't afford to keep up on payments, the situation hasn't been resolved and you don't have enough equity to refinance. Now you are being told the only option you have is to sell your home on a short sale and get nothing in return besides not having a foreclosure on your record. DON'T BELIEVE THAT! Even with NO EQUITY you can make $25,000, $50,000 or maybe even $100,000 on the sale of your home. The key is hiring a Realtor that understands creative financing and has buyers that are ready, willing and able to buy today.

If your home is worth $300,000 and you owe $299,999 most people will tell you your only option is to give your home back to the bank. THIS IS NOT TRUE!

If you have a loan for $300,000 at 6.5% and your default amount is $7,000 and your Realtor charges 6%.

If you sell your home on creative financing you can sell your home for $310,000 with 10% down.

$31,000 down ($18,600 for Realtor fees, $7,000 for your bank)

Leaving you $5400.

Now if you finance the remaining $279,000 at 7.5%

Your monthly payment on $300,000 @ 6.5% = $1896.20

The payment from the new buyer at $279,000 @ 7.5% = $1950.81

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

Are you thinking about investing in Real Estate, but feel that it is just to expensive? A great way to get into real estate with a lot less expense is getting in to the condo market.

As prices continue to rise along with the interest rates. First time home buyers are priced out of the home market and turn to either renting or buy a condo, As a way to build equity for themselves.

How does this help you the investor? First if you have a condo, you have a great pool of renters, willing to help you pay your mortgage. Then the first time buyers are helping you increase the starting price of condos as more and more people compete for the same inventory.

As your equity in your condo increases, you now can use that equity to buy other condos.  Wouldn't you like someone else to pay your mortgage every month and get you one step closer to retirement.

Your saying to yourself that you don't have any money for a down payment. Did you know that you can use your retirement to buy investment property. Talk to your accountant on how to buy investment properties and have any profits earned remain tax free in your retirement years.

After owning 3 or 4 condos you can at that point do a 1031 exchange and buy a plex and have all your money in one spot every month. Then start the process all over again.

For more information on buying condos, 1031 exchanges or buying with your retirement call today.

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

According the National Association of Realtors in 2006, there are expected to be 14% of homes sold without representation of a Realtor®.

What was the number one reason given by the homes sellers that they didn't want to use a Realtor®? The answer was they wanted to save the commission. In 2005 thought, the average home represented by a Realtor® sold for 17% more than one sold "For Sale by Owner", just to save a 6% commission.  

In 2005, 5% of buyers in FSBO transactions had a Realtor® represent them and the seller ended up paying on average of 2.5% to the buyers agent. An agent representing the buyer does exactly that, represents the buyer. If you were in court you wouldn't want the lawyer representing your opponent to also represent you.  

Why does a FSBO owner home get so much less for their home than one represented by a Realtor®? The best explanation of this is that the more expose a home gets the more potential buyers will see it. Another major factor for why homes that are sold by owner get less is buyer also knows you are not paying a commission and offers less.  

In 2004, 83% of FSBO's listed with an agent after spending thousands of dollars advertising and extra mortgage payments. If you combine that with 75% of Real Estate lawsuits involved a FSBO.

You wouldn't do surgery on yourself, you would hire a doctor. You wouldn't go to court without a lawyer. So why go into on of the biggest transactions of your life without representation?

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

Right now you are thinking it isn't time to insulate pipes. In reality, it is the perfect time. It isn't freezing yet and it is easier to get under the house when it is dry.

There are two ways that pipes can be insulated. The first involves insulating tape and the second involves a foam product.

Here are some simple instructions for either method. (If in the process you should find any leaks, call a plumber immediately)

Insulating Tape is wrapped like a bandage around the pipes The pipes must be completely covered with no gapes.

Pre-cut insulation foam is easier to install and can be purchases at any hardware store. First thing you should do is measure the pipes. The foam comes in various sizes and you want to make sure you have a tight fit for maximum energy savings and protection.

Any pipe that is exposed, especially in non heated portions of the home should be wrapped. The wrapping of a pipe can protect it from freezing during the winter and also keep hot water pipes from losing heat between the heater and the faucets in the house.

If you have a larger home, another way to save money on your water heating bill is to get an inexpensive instant hot water dispenser placed in your home. It avoids you having to run the water for 30 seconds prior to the water getting hot saving you hundreds on your water bill.

For more energy saving tips please visit
www.EnergySavers.gov

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

Who knows more about your home than you? This is the reason that disclosure forms are so important to a real estate transaction. The name of the game when selling your home is

                                                     DISCLOSE, DISCLOSE, DISCLOSE

The importance of this can be the difference between a smooth sale and a lawsuit. If a buyer later finds out that you knew of a problem that you didn't disclose, that is a either a sale that will fail and waste your time or it can be after the sale and the buyer takes you to court and will win.

There are also disclosure forms that cover things such as siding and lead based paint. Siding has become a huge deal to buyers since the LP lawsuit a few years ago. Lead base paint isn't that important to most, but it should be. The dangers that come from lead based paint can be very serious and deadly.

On the plus side, you only have to disclose material facts. Plumbing leaks are considered a material fact, that was a drug house next door is not. Material facts are items that effect the actual structure and or the land that the structure is on.

The best advice I can tell you is to fill out the disclosure form with your Realtor® and if you have a question about something - ask! Remember that your agent represents you. Don't discuss anything with any other agent or buyer. If another agent comes over you need to leave the home. The buyers agent represents the buyer and will try to get information from you that can improve the buyers negotiating power. If a question is asked of you advise them to talk to your agent and they can answer any questions on your behalf.

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739

What is an HOA? HOA stands for Home Owners Association. Here is an example of a home owners association: When you buy a new home you think to yourself "Wow, this home would look great in Forest Green." If the neighborhood that you are planning to buy into has an HOA, you may not have the right to paint your house any color you like.

You need to know what the HOA rules are before you buy a home. An HOA can decide where you can park, the color of your house, if you can put a porch on your home and possibly even the kind of pets you can own. Many people don't look into a HOA until they have already purchased. This is like buying a car and checking out the fine print in the contract after you have parked in the driveway. You can't back out!

When you go to sell your home and you have a strict HOA or an HOA with really high fees, it can actually lower the value of your home. If two homes are exact in every way and one has an HOA due of $110 a month and the other home doesn't have an HOA at all, the one with no HOA will sell faster and for more money, just for the freedom of choice.

So the phrase "buyer beware" really does apply when it comes to shopping for homes with an HOA. For more information on Home Owners Associations please feel free to e-mail me or call me anytime.

Todd Clark - broker
Kastings & Associates
Phone: (503)524-9494
Fax: (503)622-8739