Lynne Connelley Bend Real Estate

We all know that credit scores are important in our everyday lives from potential job to insurance to, of course, borrowing.  Unless you have just emerged from the jumgles of Borneo (wherever the heck that is), this has become common knowledge.

But how does your lender view these scores, and what is the range for taking out a great loan with excellent interest?

The low end of the credit score range is about 500.  If your score is hovering below 580, your dog can indeed probably get a loan easier than you can with better terms.  If you are lucky, he will allow you to live out back in a cushy doghouse.  I'm not too sure my dogs would give me that choice!

Next, lenders view the range between 580 and 620 as a challenge for lending, and your rates will be higher, but you may be able to get out of your cushy doghouse and into your own home.  Maybe.

Between 620 and 680, lenders consider these scores to be low, but you and Fido will probably be able to obtain a loan, particularly if it is government backed, such as the Rural Development Loan or FHA.  (se my previous blog on these types of loans)

And finally, above 680 you will be eligible for conventional loans at good rates, especially if your scores are above 720.  You will need 20% down payment.  Conventional loans are the easiest to close.

All that said, my attorney jokingly said recently, "600 may become the new 800," meaning that there are so many people with damaged credit that if the banks are ever going to lend money, there must be some consideration for the fact that recent credit hits should be offset by 20 or 30 years of perfect credit.  Will this happen?  It remains to be seen.  Currently, the lenders are too shell shocked for leniency, but in the next couple of years these credit lapses will have to be considered.

So if you are ready to tap into the gold that is real estate in Central Oregon, whether homes, investments or ranches, give me a call, and I will refer you to excellent mortgage brokers who will explain all of this in depth with you and diagnose what is best for you in your situation.

Check the statistics!  National statistics (posted monthly and annually by the National Association of Realtors) indicates that in a healthy market  home ownership is 62%, a number that has held steady historically in all markets for decades.  That is that 62% of the adult U.S. population are homeowners.  In 2006 that reached 69%, and we all know what happened from there.  After the correction we are seeing at present, homeownership is at 64% as prices are dropping, dropping, dropping.  There remain, however, statistically 7% more homes than there would "normally" be that were built to accommodate this increased and perhaps artificial demand,

So who is sopping up this well-priced inventory?  Yes, it is first-time homebuyers, but that will only take up so much of the available homes, particularly in the lower price ranges.  Most people who have recently owned but have sold or lost their homes will become once again renters.  The more important component of buyers scooping up fabulous buys nationally as well as here in Central Oregon in Bend homes for sale, all of our MLS listings and even Central Oregon ranches and farms is INVESTORS!  So come take advantage of this perfect storm of opportunity. 

Call me or email me and I will share with you what at present I believe are great deals, but be aware that you will have to act fast.  I know that sounds like "sales talk," but truly we are seeing multiple offers.  How about a bank owned great home on 10 acres very close to town (Bend) for $269,000?  Offers cannot be submitted until Feb 8, so you do have a little time on this one.  How about a drop-dead gorgeous home in an excellent neighborhood, 3,365 sq ft, 4 bedrooms and 3 baths, magnificent kitchen, cherry floors for $365,000?  And finally, a 3,213 sq ft home with lots of room to spread out, also 4 bedrooms and 3 baths on 1/2 acre with mature landscaping in a lovely setting?

So come scoop up the bargains that are Bend Oregon homes for sale, Central Oregon ranches and farms and indeed much of the MLS listings in Bend and surrounding areas.

I just got an email from an acquaintance who probably watches way too much TV and/or Internet news.  She sent me a link to an article forecasting a new wave of foreclosures.  Maybe.  Maybe not.  But here is what I am seeing, at least in Bend Oregon real estate.  I hate to be an optimist in the market we have experienced in the past 3 1/2 years (has it been THAT long??!!), but I think we can finally be cautiously optimistic.

So what follows is my response to her.  Feel free to email me your thoughts on the subject.  I would love to hear them.

Thanks for the update.  The facts in our market are that our inventory has shrunk to extremely low levels, like about 2 months' supply in some price points.  We still have buyers.  Our company has had increased sales figures every month for the past several months, and November is my best month in I can't remember how long.

Deschutes County is the fastest growing county in Oregon at about 3 1/2%, which is sluggish compared to past years, but it is encouraging.  Unemployment still is awful, but projections over the next few years are excellent.  But projections are just that, projections.  The increase in population is from both in-migration and from increase in current population (babies, family members joining current residents).

Interest rates remain at historically low levels at about 4 7/8%.

My recent sales are some cash buyers and some financing their purchase, some buyers moving from other areas (Carlsbad, Utah, Carmel, Vegas) as well as current residents moving up or moving to Bend from other Central Oregon towns.  In-migrating people are moving because of family in our area and/or quality of life.

So I know the bad and the ugly.  I know that the new foreclosures are people who did NOT have subprime loans but simply have become unemployed or underemployed and that we may see new foreclosures to add to the current ones.  By the way, I am seeing more mortgage modifications coming through, which is great.  Those homes will not come on the market now. 

If you are waiting to buy in Central Oregon because you feel our market will further deteriorate, you may well be right.  I can only tell you from my perspective that inventory (supply) is way down and buyers (demand) continue to want to buy homes, some first-time homebuyers and some move-up or moving from elsewhere.  So that is my two cents (or maybe a full quarter's worth!) from the inside, national news be as it may.

I am very excited to announce the first development in Central Oregon sensitive to the needs of the physically challenged.  Built to be compliant to ADA standards, these beautiful homes will feature vaulted ceilings, gas fireplaces, lots of natural light, lovely low maintenance landscaping and green features.  But not just a pretty face! 

As you transition through the stages of your life, you will appreciate sensitive planning including:

Kitchens with front panel appliance controls for easy access, glasstop electric range, full extension drawers and shelving;

Plumbing including anti-scald faucets, curbless roll-in shower, long lever valves, shallow laundry tubs, comfort height toilet seats (optional heated seats);

Security including sweeping illumination, panic buttons, multiple "all on at once" exterior light switch locations.

In addition to these features, you will love the ample space provided in each room for maneuvering a wheelchair or walker.

Give me a call at 541-408-6720 or email me at Lynne@LynneConnelley.com to review the floor plan (see on this site) and have us customize your last home.

•  single story "ADA Compliant" - MLS® $195,000

Pettigrew Highlands, Bend

Property information

You have probably heard about foreclosure auctions and heard they take place on the courthouse steps.  Is that really true?  Well, it really is!

The world of forecosure auctions is complex and requires research and the knowledge base to know what to research.  You will also need to know where to find those answers.  But the months and months of late payments, fees, attempts to sell a property, attempts to negotiate with the lender or lenders all culminate in the finality of the auction.  At that time the lender requires a minimum bid, and bidders can choose to make higher offers or not bid at all.  In Oregon, since we are a Deed of Trust state, the auction is final.  Final.  There is no period of time in which the former homeowner can reinstate his/her loan. 

Even in beautiful Bend, Oregon, we are seeing a rise in foreclosures, and any search of Bend Oregon homes for sale, Central Oregon ranches and farms or investments can be enhanced by reviewing the upcoming foreclosure auctions.  These are in some cases in the MLS listings for Bend, but in many cases the properties are not listed at all.  If the banks do not have bidders who acquire the property, they will come back on the MLS eventually as bank owned property.

Recently I did attend such an auction with investors who were interested in a particular home.  We read the posting on a foreclosure website (there are several -- call me or email me if you want some suggestions) along with the amount that the lender was requiring as a minimum bid.  We researched the home, drove by it and pulled public information on it -- age, size, liens, etc.  In addition, a market analysis I did showed that if it went for around that minimum bid it would be an excellent price for which to purchase the home.

At auction you will need cash or proof of cash to show to the "crier," the person hired to read the information about the property and conduct the auction.  Then you literally gather in the courthouse on the stairs and the auction begins. 

You can get a great deal at a foreclosure for a personal residence or investment property, but let the buyer beware!

Each Tuesday morning we brokers have the opportunity to tour MLS listings in Bend, OR, which invariably yields interesting finds and equally interesting homes to stay away from! 

This "sneak peek" helps me guide you to desireable homes you may not have noticed in your searches or mine, and sometimes I have seen a home in which you may have an interest that is undesireable for reasons such as location near the railroad or a busy street or interiors or exteriors that need major work.  Some clients are looking for just that so they can improve the property for investment or their primary residence -- or both -- and some don't want to inherit a "science project."  See my blog on the FHA 203(k) program for fixers.

This week I saw Bend, OR, homes for sale that have value or could have at an adjusted price and I saw in the category of Central Oregon Ranches and Farms one property that is lovely and all set up for horses, llamas or your favorite critter to graze in your pasture.

In the category of potential value were two homes on about 3/4 of an acre.  Both are single level, and both have lovely gardens.  The prices are $225,000 and $258,000.  The latter has potential for the addition of additional living units.  The former probably should sell for about $200,000. 

In the vein of NOT a good value were two homes that were in poor shape (one was downright scary), near busy roads and only one bathroom.  One was priced at $110,000 and was about $50,000 overpriced at that!  It was, however, on a large 1/2 acre lot.  The other was near Wilsom, a busy street, and priced at $159,900.  Definitely way too high.

As far as farms and ranches, there were two homes on about 10 acres priced in the high $600,000 range that are as different as night and day.  The first (the LESS expensive of the two!) is an exquisite single-level home in an idyllic setting with an expansive great room with vaulted ceilings, Cascade views, lovely spaces for yoga, office, and family space plus a beautiful master suite with two executive walk-in closets.  In addition, the main home has a 3-car garage, and the outbuilding has another garage large enough for a motor home and a shop plus an attached 3-stall barn.  Pastures are set up for grazing,  An expansive back deck of Trex is perfect to take in the mountain views and watch your grazing horses. 

And the second of these two ranches has a home that has small, cramped spaces, two levels, tiny kitchen, a laundry room that is a long and narrow walk-in closet, wood accents that make the home feel dark and not cozy and no views.  A guest home is cute, but it is the only outbuilding.  No horse set-up.  Almost the same price.

Need help sorting out the good buys from the junk in our market?  I'd love to help!  Give me a call or drop me an email at Lynne@LynneConnelley.com.

OK, I have to admit it.  I was not up for tour today.  I was tired and preparing to be grouchy.  BUT SEVERAL OF TODAY'S LISTINGS WERE SPECTACULAR AND ENERGIZED ME AS I TOURED THEM.

Every Tuesday we have a Multiple Listing Service meeting of brokers and tour properties that are new on the market.  We see Bend, OR, homes for sale, Central Oregon farms and ranches and in general MLS listings in Bend in the four quadrants.  Today was the northwest quadrant, which encompasses majestic Awbrey Butte and downtown properties among other west side homes.  Usuallly we see Craftsman, sometimes we see views and always the prices seem to be too high.  BUT NOT TODAY!!!!

Let me talk about some gems that are available for your viewing pleasure.  All three that I will talk about are on Awbrey Butte, and all three are special.

First, I saw an exquisite home in the older and charming West Hills neighborhood, which has mature trees and a mix of smaller and estate homes.  This home began life as a small, run-down one that has been gutted and transformed into what can only be described as a sanctuary as much artwork as home.  Touches include such amenities as bamboo ceiling in the master bath, private patios, walnut floors, angled walls with built-in desk, a Japanese soaking tub, a deck with private sitting area and separate dining area built in.  You feel as if you are entering an upscale spa with a mix of contemporary, Southwest, Zen and Oriental complemented by landscaping by the owner whose profession it is to design public gardens and spaces.  I have already shown this home to one couple and would love to show it to you.  The price for this private spa is $895,000.  You make your own.

Next I saw a spacious (3,400 sq ft) and open single level home with a feeling of privacy with extensive Cascade views that strike you from the moment you enter the front door.  Spaces flow easily and beautifully, and a crowd of 100 would be comfortable in the great room, large gourmet kitchen and extensive deck.  The price has been dropped to $699,000 and is awaiting your touches.

Third on our tour was an understated and contemplative retreat, also with Cascade views, that was quietly elegant and yet cozy.  Antique gates in the entry lead to a mahogany footbridge that suspends over native rock outcropping. Situated on a spectacular and very private 1.29 acres, the home is 4,466 sq. ft. with 3 bedrooms, 3.5 baths and has two master suites, three fireplaces with custom stone mantels, gourmet kitchen with Wolfe professional range, Sub-zero refrigerator and large pantry with prep area & wine storage. Designer touches of beiges, whites and artwork add that Architectural Digest flavor without the pretension.  A lower level home theater w/HDTV & Bose surround sound complete the feeling of total peace in this sanctuary.  This is offered at $1,200,000.

Sometimes as Realtors we are privileged to enter into other worlds and imagine the possibilities.  Today was one of those days.  I can picture you in one of these special spaces.  Can you?