Own Oregon Real Estate

If you’re considering selling your home, one of the most important steps will be to find a qualified listing agent and sign a listing agreement.  A listing agent is a real estate professional representing you in selling your property. 

Why is your selection of a listing agent so important?

A good listing agent will have extensive knowledge of the local market to help you determine a reasonable asking price and advise you on any improvements you should make before advertising your home.  They should have strong connections with other realtors in your area and effectively market your home to buyers’ agents and prospective homebuyers.  Once offers roll in, you’ll depend on your listing agent to be a strong negotiator and get you the fairest price in the sale.

After you find the real estate agent you feel will serve your needs well, you’ll be asked to sign a listing agreement.  If this is your first home sale, you may not know what’s included in an agreement or what the terms mean.

What should you expect in a listing agreement?

This contract makes the designated real estate your official representative.  It lays out the duties and expectations of both parties:  you and the agent.  Here’s an overview of what will be included:

1. Contact details.  As with most contracts, the document will outline the names and contact information of all parties involved.
2. Listing price.  You will agree to a specific asking price for your home to avoid misunderstandings between you and the agent.  You can change the price later using an amendment form.
3. Agent fees.  Real estate agents charge a percentage of the selling price of a home as a commission.  This is how your agent earns their living.  A typical commission is about 6%, and most contracts will outline that it should be split between the buyer and seller.  However, most negotiated sales contracts will include a provision for the seller to pay the full commission.
4. Agent duties.  Everything you expect your agent to do should be outlined in this section.  For example, you should make sure listing your home on a multiple listing service (MLS) and hosting regular open houses are included.
5. Property description.  This section outlines important items that will or will not be included in the sale.  For example, you should clarify what will happen with large appliances not affixed to the structure, like washers, dryers, window air conditioning units, freezers, and refrigerators.  If you are taking something that is usually left behind (like a favorite chandelier), ensure it is included, so there is no confusion by any party in the sale.
6. Agreement duration.  This is the timeframe that you are locked into this contract with your real estate agent.  An appropriate duration will depend on how quickly homes sell in your area.  If it’s too short, your agent may not find it worthwhile to try to sell the house fast enough, but if it is too long, you won’t be able to choose another agent if the first one isn’t working out.  You should also see a protection period that will require you to pay a commission even after the agreement duration if a previous prospective buyer returns to buy your home after the agreement duration expires.
7. Conflict resolution.  You and your real estate agent may have a disagreement or be unsatisfied with the other party.  This section should outline how conflicts will be resolved.  If your contract includes an arbitration or mediation clause, you might not be able to hire an attorney to represent you in the event something goes wrong.
8. Type of listing agreement.  This section should indicate which type of agreement applies to your contract:
   • Exclusive right-to-sell listing.  This is the most common and provides the listing agent and their brokerage exclusive rights to sell your home and get the sales commission.
   • Exclusive agency listing agreement.  This is similar to the exclusive right-to-sell provision except that it provides a carve-out to allow the sell on their own without any agent to avoid paying a sales commission.
   • Open listing agreement.  In this situation, the seller can use multiple agents to advertise the home, and the agent who finds the buyer is the one who will earn the commission.
   • Net listing agreement.  These are illegal in some states.  In this agreement, if the agent sells the home for more than the listing price, the agent gets to keep the extra proceeds.

As you can see from these descriptions, the listing agreement includes essential information about your sale process.  It is a formal contract, and you should take the time to read it carefully and ensure it accurately reflects your expectations.  Most provisions are negotiable, so it’s best to have a conversation with your real estate agent about any questions or concerns you have.

Ready to sell your Southern Oregon home?

The best place to begin your journey is with an experienced real estate agent like Gail Schoeneberg.  Gail has extensive experience and knowledge, including marketing financing and buyer and seller representation in the Southern Oregon market.  Armed with current information about home sales throughout Southern Oregon and a long list of potential homebuyers at the ready, Gail will help you make good decisions to achieve the best price for your home in the timeline you have for selling it.  

Contact Gail Schoeneberg today at 541-840-1909.  Together, we’ll get your home sold.

The choices for a residence are seemingly endless.  Families can choose apartments, duplexes, single-family homes, rural properties, suburban neighborhoods, and many more.  Your investment in a home is one of your single most important financial decisions, so it should align with your needs and desires.  Many individuals deal with deciding between purchasing a condo or a home.  Both represent home ownership, but the responsibilities and benefits of each are very different.

What is the difference between a condo and a single-family home?

Single-family homes are independent units where the homeowner owns all of the home and the property it sits on.  The homeowner is entirely responsible for maintenance, from the interior plumbing to exterior lawns and shrubs.  If something breaks, it’s up to the homeowner to fix it.  On the other hand, the homeowner has almost complete autonomy over their property.  As long as they work within city codes, building regulations, and any homeowner association (HOA) for their neighborhood, an owner of a single-family home can choose to remodel, paint, deconstruct, or build to make it an abode that perfectly meets their needs.

A condominium, or condo, is a hybrid between a single-family home and an apartment (although not all condos are structured in shared buildings like apartments.)  Many of today’s condos resemble connected houses and may be multi-storied.  Condo owners have ownership of the interior of their units only.  That means they are free to remodel, paint, replace the flooring, etc.  However, they do not have control or responsibility over shared services like roofing, landscaping, exterior painting, etc.  Instead, the complex management company or condo association has authority and responsibility for these items.  Some items, such as windows, exterior doors, and HVAC units, may be the responsibility of the condo owner or the complex management company based on the contract. 

Why would you choose a condo or a single-family home?

It really comes down to lifestyle.  Neither option is inherently better than the other.  It depends on what’s important to the owner and their family.

Single-family dwellings

Homeowners that desire complete control over their residences tend to prefer single-family dwellings.  Since they own the house and the land it sits upon, they have nearly full autonomy to do as they please.  While they still need to adhere to city codes, building regulations, and possibly HOA restrictions, they can amend and design it to their liking.  However, they need to have the time, resources, and capacity to manage the home and property maintenance–from replacing the roof to downing dangerous trees. It’s harder to get away for any period of time if the house is unoccupied, but many areas will allow short or long-term rental of residential properties.

Condominiums

Other homeowners aren’t interested in maintaining the exterior of their homes and prefer to leave that to a management company.  After purchasing the condo, the homeowner will be responsible for paying a monthly or annual HOA fee that covers the cost of maintenance and repairs.  Other rules may also apply, such as restricting the owner from renting the unit out on a short-term or long-term basis or limiting the size or number of pets.  

On the other hand, there are many benefits to condo living.  Often, condominium communities have shared amenities such as recreation centers, swimming pools, or maintained parks. It’s easier for condo owners to participate in travel or manage busier lives without responsibility for exterior maintenance.  For example, condos work well for snowbirds who routinely spend months in Arizona or Mexico.  And then, while it may seem small, condo owners often enjoy less expensive homeowners insurance since only the home’s interior must be covered. 

If you’re deciding between a condo and a home, a real estate professional can help you weigh your options.

The best place to begin your journey is with an experienced real estate agent like Gail Schoeneberg.  Gail has extensive experience and knowledge, including marketing financing and buyer and seller representation in the Southern Oregon market.  She will help you determine if buying a home is the right choice.  And, of course, once you decide what you’re looking for, Gail will be at your side until you find the perfect new home for your family.

Contact Gail Schoeneberg today at 541-840-1909.  Your new home awaits.

For quite a while, the real estate world was a seller’s market.  Houses were selling quickly, with offers exceeding the asking price for many properties.  However, with the increase in interest rates, the housing market will likely slow down a little bit as buyers become choosier with their offers.  As power shifts, you may be asked to pay the buyer’s closing costs when negotiating a deal to sell your home.  It’s essential to understand what’s involved and some criteria to think about as you decide whether or not to cover them.

What are closing costs?

During a sale of real estate, both the buyer and seller are obligated to pay many fees as “closing costs.”  Understanding the financial responsibilities of both parties will help you decide what costs, if any, you want to take on from the seller to negotiate a deal.

The seller is usually responsible for:

• Half the escrow cost,
• Owner’s title insurance fees, 
• City or county government fees,
• Agent commissions.

The buyer, on the other hand, has a more significant share of fees to cover:

• Half the escrow cost,
• Buyer’s title insurance and title search fees,
• Deed recording fees,
• Cost of home inspections,
• Flood determination and monitoring fees,
• Pest inspection fees,
• Loan application and origination fees, and
• Appraisal fees.

Is it a good idea to pay the buyer’s closing costs?

You should carefully consider whether or not you want to cover the buyer’s closing costs.  Here are a few factors to help you decide what you should do:

First, you need a clear picture of what the closing costs will include.  It’s often a good idea to cap the dollar amount.  You need to make sure that your sales price, after all of the costs you will pay, is enough to make you feel good about the deal. 

Second, make sure the buyer has completed their inspections, and they and their mortgage company have signed off on any expectations.  You don’t want to offer to pay closing costs and then be asked to pay for repair costs you hadn’t anticipated.  Some sellers will offer to pay the buyer’s fees instead of repairs; however, you need to make sure the mortgage company will still approve their loan under those conditions

Finally, before accepting an offer, you want to feel confident the buyer is financially sound enough to be approved for the mortgage.  If they are putting down a significant down payment and want you to cover the buyer’s costs, they are likely in a good position and just desiring a better deal.  However, if they have a minimum down payment, this may be a sign they can’t afford the home, and the deal may fall through.

A good real estate professional can help you make sound decisions about buying and selling homes.

The best place to begin your journey is with an experienced real estate agent like Gail Schoeneberg.  Gail has extensive experience and knowledge, including marketing financing and buyer and seller representation in the Southern Oregon market.  She will help you understand your options when selling your home.  And, of course, if you’re buying a new home, Gail will be at your side until you find the perfect new one for your family.

Contact Gail Schoeneberg today at 541-840-1909.  Your new home awaits.

Oregonians enjoy shopping without sales tax, but we are required to pay state income tax and property tax.  

Property taxes include school district taxes, local government taxes, voter-approved bond levies, and other municipal and county taxes.  The tax amount is based on a percentage of the property’s value, but that’s where it gets tricky.  Even some long-time residents are not sure how Oregon property tax is calculated.

First, how does Oregon Property Tax compare to other states?

Oregon ranks in the middle of the pack at #27 from lowest to highest property taxes in our nation.  Our effective property tax rate is .97% of the property value.  In Q1 2022, the median property value in Oregon was $312,200, making the median property tax $3,037.  

Next, how is property value assessed?

What complicates matters in Oregon is that every home or property has three values:  market value, assessed value, and real market value.

Market value is what people look at to determine how much they think their property would sell for.  Often people refer to a valuation on Zillow, or they may check out what other comparable homes in their neighborhood are worth.  This “market value” is not reported on the tax statement and may be higher or lower than either of the valuations from the tax department.

Instead, Oregon taxes report two figures:  assessed value and real market value.

Real market value is the estimate the government calculates a home or property would sell for on the open market.  County assessors use tools to calculate this value that are far less sophisticated or accurate than those used by realtors or appraisers.  The assessors perform a limited number of exterior inspections every year and combine these results with computerized data to come up with real market value.  They also may perform an interior inspection of a home based on the owner’s purchase of permits for home improvements and expansions.  Some homeowners may be shocked to receive a significant increase in the real market value of their homes based on obtaining a permit for limited home improvements.

Before 1997, property tax was based entirely on real market value.  However, when Ballot Measure 50 was implemented, a new evaluation called the assessed value came into place.

At its beginning, assessed value took a home’s real market value as of 1995 and subtracted 10% from it.  Then, the value was set to increase by 3% each subsequent year.  The purpose of Measure 50 was to limit the amount of financial burden a property owner would realize from one year to the next.

What about a home built after 1995?

For any property constructed after 1995, the county assessors simply determine the real market value and then apply an average gap to determine the assessed value.  In other words, if the average difference between assessed value and real market value is 20%, they would apply that difference to the real market value to create an assessed value.

So how is Oregon Property Tax Calculated based on real market value and assessed value?

Taxes are calculated based on which number is less.  If a real market value is $450,000 and the assessed value is $300,000, the taxes will be based on $300,000.  However, if the real market value takes a dive, the taxes will be calculated on the lowered value.

Contact Gail Schoeneberg with your questions about owning property in Oregon.

If you’re considering purchasing property in Oregon but have a few questions about homeownership in Oregon requires, I’m here to help you out.  I take pride in helping my clients find the home of their dreams while making sound financial decisions.  I will work with you through every stage of home buying, from determining your priorities in a new home to learning about ways to finance your mortgage.  Contact me today to get started at 541-840-1909 or at this link.  

As summer begins to kick in fully and the temperature rises, maintaining your home this season might be a bit of a chore but necessary to ensure its functionality and longevity. Yet there are some key tips to focus on to keep your home looking great and functioning smoothly so you’ll enjoy it even more. If you cover all of these bases for summer home maintenance, your home will be set for fall!

Keep Up to Date with Your Yard

It’s easy during the summertime to set up your sprinklers and call it quits when it comes to the maintenance of your lawn. When it’s cooler in the morning and the evening, it’s the perfect time to tackle some weeding in your lawn and any gardens you have. This makes the inevitable transition from summer to fall much easier on your yard and will minimize the amount of fall yard work you need to do later this year. 

Clean out Gutters and Check the Roof

When it’s not autumn, your gutters don’t exactly seem like a priority when it comes to the upkeep of your house. However, ignoring the cleanliness of your gutters during the summertime can lead to an even harder clean-up this upcoming fall or be detrimental to the potential damage to your house during a summer storm if the gutters are backed up significantly.  This is a good time to examine your roof for any damage or missing tiles or shingles.

Check Pipes and Water Based Appliances

While springtime is often known for causing an influx in leaky pipes and appliances, summer can be equally devastating if not checked. With cooler temperatures comes the condensing of pipes, and as the weather heats up–especially with the summer heat–expansion could be rapid and lead to some sudden cracks due to pressure. 

You might even find leaky faucets or showerheads during this time due to a similar process. Ensuring these appliances are in good working order during the summer protects your house from mold and wood rot. 

Replace Air Filters and Clean Air Vents

When the air conditioning operates more frequently, the air filters might be getting a run for their money. Ideally, you should change your air filter every 3-6 months. If you haven’t, you should begin to schedule your air filter replacements during this time. Cleaning in and around the air vents is recommended because the buildup of dust, dirt, and other debris can quickly accumulate in a house’s ventilation system during spring. 

Check for Drafts

On the topic of air conditioning, it’s wise during this season to ensure that you have no active drafts coming from anywhere within your house. Unlike other seasons, it’s harder to detect drafts with the AC going consistently throughout the day and will be more expensive as your AC could be escaping through the drafts outside and not even cooling down your home. 

Curious to know more about summer home maintenance or how to prep your home for sale?

The best place to begin your journey is with an experienced real estate agent like Gail Schoeneberg.  Gail has extensive experience and knowledge, including marketing financing and buyer and seller representation in the Southern Oregon market.  Armed with current information about home sales throughout Southern Oregon and a long list of potential homebuyers at the ready, Gail will help you make good decisions to achieve the best price for your home in the timeline you have for selling it.

Contact Gail Schoeneberg today at 541-840-1909.  Together, we’ll get your home sold.

As July kicks summer into full swing, traveling to different locations may get your mind racing about moving. Seasonal housing purchase trends are a real thing and can be very interesting to look at and dissect.  Summer sale trends can be very informative regarding whether or not you should consider investing in a house during the warmer months.  If you’re wondering when is the right time to buy a home, here are a few tips for you.

Seasonal Trends

Looking at monthly sale trends reveals what the market will be like when you’re submitting an offer on the home of your dreams. While there is no right and wrong time to buy a home, these trends will give you a good idea of what you’ll be up against during your hunt, and what you may need to do to have your offer accepted.

Early Summer

Not only does the temperature heat up in the summer, but so does the competition to buy homes.  It’s common for “moving mania” to increase once school gets out in June, so shoppers will find a greater selection of homes available but will also be met with more buyers presenting competitive offers.  If you can make swift decisions and deal with a hectic process, you’ll also enjoy the advantage of being able to sell your home more quickly during this time and make the transition to a new neighborhood easier.

Late Summer

During the month of August, the market begins its gradual decline into the holidays so a lot of the craziness subsides. During late summer, homebuyers should be very serious when it comes to purchasing a house and put down a very strong offer. Low-ball offers might not make the cut as the inventory begins to shrink.  On occasion, you can find really good deals on homes not purchased during the early months of summer as sellers may get desperate, but you need to act quickly.

Winter

Typically, as the seasons cool down the urge for potential homebuyers to purchase declines. This can be explained away mainly due to the holiday seasons with Halloween, Thanksgiving, and Christmas all within a three-month span.  Inventory shrinks as homeowners don’t want to be in the midst of cleaning, packing, and staging their homes during the holidays.  Buyers tend to not house hunt when they’re busy focusing on family and celebrations, so house prices tend to dip lower.  Also, the homes’ days on the market are prone to being longer. Some sellers may even repeatedly lower the asking prices during these months.

So when is the right time to buy a home?

Regardless of these trends, the best time for you to buy a home is when you and your finances are ready for the responsibility.  Or, you might come across the home of your dreams when you least expect it, and if financially feasible, there should be no reason to wait for another season.  

Your best course of action is to contact an experienced Real Estate Agent.  Gail Schoeneberg has decades of experience and will work directly with you to understand your needs and help you achieve your goals.  Regardless of the time of year, give Gail a call at 541-840-1909.  She’ll help you make the best decisions for you and your family.

Renovating a home before placing it on the market has become a popular decision as it can potentially increase its market value and ensure the house is up to date for modern homebuyers. Whether homeowners choose DIY or hire professionals, updating a home to match current trends before selling may seem like a good idea.  However, some of those trends could be harmful overall to selling a house. Here’s a short list of renovations to avoid when selling your home.

Updating your kitchen – The kitchen can be the heart of the house for many families, so sprucing up your kitchen to something modern and trendy might be on the top of your list and your budget. However, many current kitchen trends come with the issue of sacrificing functionality for aesthetics. While recreating your kitchen, keep in mind functionality and flow. If you’ve been researching DIY renovations, you might have noticed many documented “fails” of drawers being blocked off by other drawers, poorly placed gas pipes being jeopardized by newly installed counters, and disturbed overall flow.  It’s important to make sure your renovations continue to make sense for buyers, not just look good.

Undermining the structure of your home – With renovation comes the eagerness to change room layouts, but always keep in mind how large or small a room is. Some current renovation trends revolve around changing a floor plan’s intended purpose, for example, changing a study into a bedroom. While a change like this may not sound out of the ordinary, the placement of this bedroom could now feel awkward for potential buyers. 

Choosing granite – Granite has gained an express amount of popularity within homes since the start of the early 2000s. Granite is heavy, sturdy, easy to clean, nice to look at, and expensive. Granite can easily make you go over your budget if you don’t plan accordingly, and there can be a few natural flaws that could set you back on your renovations.  There are other great materials you can choose from that are equally beautiful but far less costly.

Installing large showers – Going all out to make a modern bathroom is on the top of many renovation to-do lists, but similar to the kitchen concerns, it’s essential to prioritize spacing and usage over trendy appearances. If you’re installing a new shower, consider the space between the shower and the toilet and cabinets, for example.  Installing a large shower might seem like it prioritizes comfort; however, it may be at the sacrifice of good functionality.  Hiring a professional for plumbing work is best since mistakes can lead to considerable problems like mold and flooding.

Ready to sell your Southern Oregon home?

The best place to begin your journey is with an experienced real estate agent like Gail Schoeneberg.  Gail has extensive experience and knowledge, including marketing financing and buyer and seller representation in the Southern Oregon market.  Armed with current information about home sales throughout Southern Oregon and a long list of potential homebuyers at the ready, Gail will help you make good decisions to achieve the best price for your home in the timeline you have for selling it.

Contact Gail Schoeneberg today at 541-840-1909.  Together, we’ll get your home sold.

You’ve likely heard about FHA loans in the media, or perhaps a friend recommended you look into getting an FHA loan to buy a home.  FHA loans are government-backed mortgage loans designed to help you purchase a home with fewer financial requirements.  For example, they can be helpful if you have debt or a less than ideal credit score, including experiencing bankruptcy or collections.  One question I get from clients is, “How do FHA loans work?”  Here’s a quick overview to introduce you to this product.

Why do people apply for FHA loans?

FHA loans help homeowners who may not qualify for a traditional mortgage loan.  They are backed by the Federal Housing Administration (the FHA).  That means the government protects your lender against loss if you default on your loan.

What are the requirements to qualify for an FHA loan?

Not everyone or every home qualifies for an FHA loan.  First, the home must meet some requirements, including:

1. An appraiser approved by the FHA must appraise the home.
2. The home you are purchasing must be a primary residence, not an investment, rental property, or vacation home.
3. An approved inspector must look at the property and conclude that it meets minimum property standards.

Second, the borrower must meet specific qualifications:

1. For a FICO credit score of at least 580, the borrower must make at least a 3.5% down payment.
2. With a FICO score between 500 to 579, the borrower must put down at least 10%.
3. Mortgage Insurance is required.
4. The borrower’s debt-to-income ratio must be less than 43%.
5. The borrower must have proof of employment and a steady income.
6. The borrower must move into the home within 60 days of closing.

How much can I borrow with an FHA loan?

Of course, there are limits to how much you will be approved for based on your specific situation, including your debt-to-income ratio, your income, and your job history.  However, there are caps in place even for those in the best cases.  The Department of Housing and Urban Development assesses home values in various regions of the United States.  For high-cost areas like large cities, the agency set the maximum loan amount at $970,800 for 2022.  In lower-cost areas, the limit is $420,680.  There are also set limits for single-unit dwellings versus multiple-unit properties.  You can learn more about the limits for a specific area on Hud.gov.

Do FHA loans have better interest rates?

Not necessarily.  FHA interest rates tend to be similar to other conventional mortgages.  You may be eligible for a slightly lower interest rate simply because the government-backed protection makes your loan less risky for the financial institution, so that you may qualify for a lower rate.

If you want to learn more about how FHA loans work and if this is a good fit for you, contact me today!

I take pride in helping my clients find the home of their dreams while making sound financial decisions.  I will work with you through every stage of home buying, from determining your priorities in a new home to learning about ways to finance your mortgage.  Contact me today to get started at 541-840-1909 or at this link.