Lynne Connelley Bend Real Estate

Bend, Did You Know You Have a Hot Real Estate Company Right Here?

Lynne Connelley — Thu, 19 May 2011 00:07:00 GMT

Yep, it's true. Almost everyone I am sure knows and recognizes the Coldwell Banker brand for real estate, a national company with franchises in every state of the country with more than 1,000 offices. I am sure that most people do not know what a gem we have right here in Central Oregon, Coldwell Banker Morris Real Estate, a company I am proud to be affiliated with as a broker. Among those many, many offices we stand out as the 9th top producer among offices with 50 to 100 agents (and we only have about 52). The first quarter of 2011 showed that we were #43 top producing company in the United States.

So how does that help you, Mr. Buyer or Ms. Seller? We bring national attention to your listing, Ms. Seller, and we pay to use the top technology and advertising in selling real estate in Central Oregon. How many other companies do you see running full page color ads in the local paper? STILL after all these rough months and years we have never failed to fully market your property. We have experienced, obviously top producing agents bringing in listings to show you first, Mr. Buyer, including high end properties, including bank owned properties, and including commercial properties. The experience and education level of our agents is unparalleled not only in Central Oregon but in the country. You are well served by me and by Coldwell Banker Morris Real Estate. It is a combination that works. For you.

How To Pick Your Realtor

Lynne Connelley — Tue, 10 May 2011 21:18:00 GMT

OK, this is a big DUH! A Realtor must see houses to be an effective advocate for you, whether you are buying or selling. LOTS OF HOUSES! LOTS OF DIFFERENT PROPERTIES, both residential in town and farms and ranches. I am talking of at least 10 homes per week in all categories. WHY?

In pricing your home to sell, your Realtor must have a keen perspective of the market as to what is selling and what is not. When she views homes on the Internet listed on the Multiple Listing Service that will be competition for you, she must have some familiarity with at least some of those homes to properly advise you on positioning your home to sell. You want to be IN the market, not ON the market, right?

In showing you homes, often I have had a buyer mention something that was not necessarily in their original criteria for a home but which reminded me of a home I saw, maybe even a For Sale By Owner property. In more than one such case I have put together happy sellers and happy buyers for their perfect home. The MLS listings are very one-dimensional, and it takes an experience professional familiar with the inventory to match you with that perfect home.

I said this is a big DUH, but many Realtors seldom leave their office to tour their office listings, weekly MLS listing tours, For Sale By Owner homes and homes they can preview for clients. Give me a call to be matched up to your perfect home or to position your home correctly to sell.

Where the DEALS are in Bend, Oregon!!!

Lynne Connelley — Tue, 10 May 2011 20:50:00 GMT

Daily I hear buyers who want a REAL DEAL in this market. After months and months of national news stories about vacant houses, short sales, foreclosed homes and general doom and gloom, apparently many folks out there believe that this dismal picture is reality. At least in Bend and at least for now, it is NOT, particularly under $400,000 in our market. We actually have a shortage of inventory and many very frustrated would-be buyers who keep losing out in multiple offer situations. I know of one couple who just got outbid on their third offer on Bend homes.

But there indeed are still incredible deals to be had, and that price range is $950,000 and up. In the past 90 days in Bend, 8 homes, both residential in town and those on acreage, have sold or are in escrow, or just under 3 per month. Taking that figure of 3 sold homes per month, let's look at unsold inventory. There are a whopping 68 estate homes for $950,000 and up on the market, or almost a 2-year supply if nothing else is added to the mix, which is not going to happen. These are sellers who are -- or should be -- ready to DEAL, and the winner could and SHOULD be you!!!!

Available just in NW Bend are plush custom homes with the Deschutes River roaring past your deck, homes with stunning panoramic Cascade views, ranches with large barns, indoor arenas and beautiful homes including guest homes, a log home on 17 acres with Cascade views, and a 5,600 sq foot home with 5 bedrooms, office, two laundry rooms, wine room, butlers pantry and great views on Awbrey Butte.

Oh, and you want a gorgeous, fully appointed home downtown with river AND Cascade views for a steal? How about under $450,000? Call me today and we will go tour this beautiful home in the Old Mill District.

So luxury real estate is available for a fraction of the prices we saw three years ago, and these homes are yours for the taking. Make an offer!

Price Reduced on 7440 NE Juniper Ridge Road in Equestrian Meadows

Lynne Connelley — Fri, 18 Mar 2011 07:50:00 GMT

Equestrian Meadows, Redmond - Announcing a price reduction on 7440 NE Juniper Ridge Road, a single story. Now MLS® $175,000 - Fabulous New Price!.

Property information

Waiting for the Bottom of the Market?

Lynne Connelley — Wed, 23 Feb 2011 00:06:00 GMT

You may have waited too long!

I can definitely feel the market heating up for bend, OR, homes for sale and even for Central Oregon ranches and farms. Buyers are finding value, which is no surprise, but a surprise is that in many price ranges it is now a sellers’ market, and not a buyers’ market.

Homes under $200,000 are selling so well that there is little inventory. For instance, in Bend 368 homes priced under $200,000 sold in the past 90 days, or 122 a month. There are, however, only 159 active listings in that price range currently.

In the $200,000 to $300,000 range we have seen 39 homes on average selling per month for the past 90 days, and there are 95 active listings for an inventory of about 2 ½ months of available homes.

Even as we get into the higher price ranges there is competition. Between $300,000 and $400,000, on average 23 homes sold per month in the past 3 months, and there are only 77 homes on the market for an inventory of about 3 months. (Call me or email me if you want more details on the price range for your home or that of a friend or relative. It actually may finally be the time to put that property on the market.)

We are experiencing in many cases multiple offers on homes, which means if you have four offers on a home, only one is the successful purchaser. It also means that three buyers are competing for the next home. That can mean only one thing: Prices will increase.

Buyers are still attracted to Central Oregon. I got two calls just this month from people who are moving here from other areas – one Utah and one California – and neither have ever been here before. They have read about Central Oregon and/or heard from friends that quality of life is better here.

If you or a friend find your life is wrapped up timing your lives and job commute around rush hour, give me a call! And preferably before those prices go up!

Get Ready, Folks! It's REAL ESTATE TIME!!!!

Lynne Connelley — Wed, 19 Jan 2011 05:26:00 GMT

OK, you heard it here first. Maybe not first, actually, but here. Now. Today. This month in this year 2011 it FEELS like real estate in Bend Oregon has life. It feels better. It feels more active. There are buyers. Lots of them. So many that for most offers on bank owned or any well priced home there are multiple offers. There are sellers daring to stick their chins out and proclaim their wish to sell "in this market." Yes, there are challenges in getting approved for loans. And yes, interest rates have increased ever so slightly. But there are still loans. And interest rates are historically low.

In Bend it really feels as if the bottom of the market is solidifying and inching up. After all, the paramount law of economics is supply and demand. Until supply of homes catches up with the current cadre of buyers, in some price ranges there is less than a two-month supply of homes from which to choose. When pricing a home on Honkers Lane in SW Bend this week, I discovered this fact, and when we looked in that popular area for available homes, there were mighty few. When this situation occurs and demand is still strong, prices will go up. Guaranteed.

This week Smart Money ran the following article by Dave Kansas, which does seem to signal a time to pay attention, serious attention, to buying real property. Read on.

Real Estate: Finally a Good Investment?

The housing market still looks pretty bleak: There were a record one million foreclosures last year, home prices are still falling in many regions and the number of "underwater" properties is at a record high.

And things don't look much better in other areas of real estate. The number of construction jobs continues to decline, even as other parts of the economy have added jobs. And mortgage rates have moved higher as long-term Treasury yields have backed up during the past few months.

Basically, the real estate market remains a mess.

Real estate encompasses a wide range of markets – homes, apartments, hospitals, office buildings, strip malls, dormitories and other properties. But for our purposes, let's focus on residential real estate, or homes. Here are four reasons to think residential real estate might represent a bargain – with one big caveat.

Everyone hates homes.

Homes are probably the most hated asset class in the country. That's what happens when a bubble bursts. People avoid thinking about the value of their home. Sellers moan about no offers, buyers gripe about impossible lending requirements.

Hatred of an asset is often the precursor to contrarian interest, and being contrarian is at the heart of many investment strategies. To paraphrase Warren Buffett, be fearful when others are greedy and greedy when others are fearful. Mr. Buffett backed that idea when he invested in the stock market in the teeth of the financial crisis in late 2008 and early 2009.

Of course, being contrarian for its own sake isn't wise investing. Gold was hated for years ("dead money") before it recently became an attractive asset class. Still, a lot of smart ideas begin with the question: What does everyone hate?

Smart people are buying real estate.

This cohort is led by John Paulson, the hedge-fund manager who made $20 billion betting against the housing bubble. Last fall he said in a speech: "If you don't own a home buy one. If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home."

Why is Mr. Paulson so adamant? Because he believes long-term interest rates are not going to get much lower. They have, in fact, risen since he gave that speech, but they remain remarkably low by historic standards. Low rates and the expectation that home prices will rise is his argument. For his part, Mr. Buffett has predicted the housing market will bottom this year.

Real estate performs well during inflation.

There's no inflation these days, but when buying a home one should take a longer view. And the longer view shows that the economy has enjoyed a disinflationary period since the early 1980s. A number of folks think that cycle is slowly reversing itself.

If that's the case, then convention would argue for holding assets that do well in an inflationary environment. That includes Treasury Inflation Protected Securities, commodities and real estate. Remember that during the stagflation nightmare of the 1970s, real estate had a strong run.

Inflation isn't a significant issue in the U.S., but it's a growing problem elsewhere. China and India have taken steps to fight inflation, the euro zone is getting flickers of inflation and the U.K. has had oddly higher prices (above 3%) for an extended period of time. If the cycle is slowly turning, real estate makes more sense.

Demand may be coming back.

Supply isn't as out of whack as it used to be. At the end of November, home builders reported 197,000 new homes on the market, the lowest level since 1968, according to Yardeni Research. The National Association of Realtors reports that the inventory of existing homes for sale fell 4% to 3.71 million homes, which represents a 9.5-month supply at the current sales pace, down from a 10.5-month supply in October.

Those aren't pretty numbers, of course, but they are moving in the correct direction. And that may be a reason that many home builder stocks, such as KB Home ( KBH: 15.46, -0.25, -1.59% ) , Hovnanian ( HOV: 4.92, -0.04, -0.80% ) , Pulte ( PHA: 24.24, +0.19, +0.79% ) and Toll Brothers ( TOL: 20.96, +0.06, +0.28% ) , have come off their lows in the past several weeks.

It's all comes down to jobs. There are a zillion caveats to any positive home thesis, but the big one is unemployment. If the economy is not creating jobs, the chance of a rebound in housing is diminished. It's hard to buy a home without a job, and folks who aren't working don't want to take long-term risks.

The job market is still struggling and the debate is hot about when it will recover. Optimists see recovery this year. Pessimists see pain for several years ahead. How this X factor gets resolved will say a great deal about whether housing will rebound.

Are Bank Foreclosures LEGAL?????

Lynne Connelley — Wed, 12 Jan 2011 21:47:00 GMT

I would like to present for your reading enjoyment an article by attorney Phil Querin, a distinguished real estate attorney in Oregon. I have been contending for at least a year that the banks are simply going to have to get better at approving short sales and modifications since the foreclosure process is, quite frankly, a mess due to the securitization (loan packaging and reselling) of mortgages so common these past years.

Two banks, Wells Fargo and U.S. Bank, got their hands slapped good in two different Massachusetts cases. Their foreclosures were deemed illegal, and in one case they returned the home to the original homeowner and in the other had to write a check to the homeowner who no longer wanted the home back!

In short, the banks foreclosed before they even had the legal documents (deeds) in their possession and cited to the court the "everyone else is doing it" legal principle. That principle does not even work with your five-year-old, so why would it work in a court of law? Not well!

Mr. Querin's article is cited in full below from his website, Q-Law.com. (The highlighting is mine) Please call or email me if you have further questions in this matter relating to Bend Oregon homes.

It was just a matter of time. Sooner or later, trial court rulings against Big Banks were going to make it into the appellate system and become recognized judicial precedent. Such is the case of U.S. Bank Association, Trustee vs. Antonio Ibanez, which consisted of two appeals from trial court rulings that were disposed of in one consolidated court opinion out of Massachusetts. There are several things that distinguish thus case. First, Ibanez does not arise out of a bankruptcy court ruling, as so many previous opinions have. Second, it is not a case of a homeowner/borrower contesting the initial foreclosure action. [Presumably, like most homeowners, they had neither the money nor the appetite for a fight. - PCQ]. Lastly, this consolidated case arose out of the Oregon equivalent of a quiet title action, initiated by the banks well after the foreclosures had been completed. Both lenders sought a judicial declaration that once they had acquired title following the foreclosures, they actually had the legal right to convey marketable title to another purchaser. The banks both failed and flailed.

The Ibanez ruling was released on Friday, January 7, 2010. [I actually think this is 2011] The facts of the consolidated cases are substantially similar, so I will summarize them as if a single case. Essentially, the borrowers closed their loans directly with the lenders that loaned them the money (the “Originating Banks”). The mortgages were duly recorded on the public record. Through successive assignments, both loans were pooled and securitized into REMIC trusts. In one case, the REMIC Trustee was Wells Fargo, and in the other case, it was U. S. Bank. Both of these lenders, acting in the capacity as Trustees for the REMICs, initiated foreclosure proceedings against the borrowers, seeking to either sell the properties at auction, or recover them back to re-sell.

However, as it turns out, at the time of both sales, neither bank had the power to foreclose on the properties. In the U. S. Bank case, the foreclosure sale occurred on July 5, 2007, but the Assignment of Trust Deed from the Originating Bank to U. S. Bank (giving it the legal power of sale) did not occur until September 11, 2008 – well after the actual foreclosure sale date. In the Wells Fargo case, the loan was also closed on July 5, 2007. But the Originating Bank’s conveyance of the mortgage containing the power of sale was not recorded until May 12, 2008. In short, at the time both lenders advertised and conducted their foreclosure sales, they had no legal power to do so, since the mortgages granting them that power had not yet been transferred to them.

In lawyer-speak, both banks’ arguments may be described as disingenuous and specious – in less charitable, but more descriptive terms, one might call them insulting. Essentially, the banks rely upon a sort of fait accompli rationale: Their predecessors, the Originating Banks, had the right of foreclosure; the Big Banks were going to get it sooner or later, and the borrowers were in default anyway, so there is no foul, since there was no harm. The Court rejected these arguments out of hand. Relying upon precedent dating back to 1871, 1905, and 1936, it held that the statutory power of sale given to lenders in foreclosure – where there is “no immediate judicial oversight”- must be strictly followed. [Note: This is the reason I maintained in my recent post on non-judicial foreclosures, that lender and servicer fraud is actually easier in trust deed states, such as Oregon. – PCQ] So, with 140 years of court precedent, it was a bit hard for the banks to argue that they didn’t realize the rules applied to them.

What is most interesting about this case, besides the holding itself, was the banks’ consistent unwillingness or inability to provide evidence supporting their legal position that they had a right to conduct the foreclosures without owning the actual mortgages that gave them the right to do so. The gist of the banks’ arguments revolved around the claim that, although they did not hold the mortgages, they nevertheless had the ability to foreclose based upon the documents generated by the securitization process itself. Here’s a sampling:

U.S. Bank argued that it had the right to foreclose based upon the trust agreement described in the private placement memorandum (“PPM”) for the REMIC trust – a preliminary document used in private securities offerings that outline the business plan of the offering. However, the bank never offered the trust agreement into evidence.
Wells Fargo based its right of foreclosure on the Pooling and Servicing Agreement (“PSA”) which is the document governing the operations of the REMIC Trust. However, although it offered the PSA into evidence, that document contained language that the trust deed had already been deposited with Wells Fargo, the Trustee for the REMIC. The PSA did not grant the bank any future right of foreclosure. Moreover, the bank could not establish that based upon the mortgage loan schedule for the PSA, the borrower’s property was actually in the Trust. [Note: This is symptomatic of a related problem, which is that in many cases, the loan schedules are frequently not a part of the PSAs, which makes it nearly impossible to track down a particular loan. - PCQ]

In a last ditch effort, the banks relied upon the “everybody is doing it” argument. In the rarified atmosphere of appellate argument, this defense is given the more dignified title of “custom and usage.” Loosely translated, the rationale is that even though the banks’ actions fly in the face of 140 years of Massachusetts’s precedent, since the lending industry had been ignoring the law already, it should be permitted to continue doing so. The Court would hear nothing of it. With perhaps a note of exasperation coupled with whiff of disgust, the Court concluded that “(t)he legal principles and requirements we set forth are well established in our case law and our statutes. All that has changed is the (banks’) apparent failure to abide by those principles and requirements in the rush to sell mortgage-backed securities.” Smackdown!

And as if that were not enough, two of the concurring judges felt it necessary to include their own written opinions. While they agreed with the majority, they added the following: “(W)hat is surprising about these cases is not the statement of principles articulated by the court regarding title law and the law of foreclosures in Massachusetts, but rather the utter carelessness with which the plaintiff banks document the title to their assets.” [Italics mine. - PCQ] Significantly, while the two concurring judges acknowledged that although the borrowers had defaulted on their mortgages, “…that is not the point. Foreclosure is a powerful act with significant consequences….” Smackdown!

Will Ibanez have any effect on bank foreclosure practices? First, presumably, lenders will do a better job in picking which cases they decide to appeal. In retrospect, Ibanez raised questions they may not have wanted answered. In my opinion, there were other ways to make title to the properties in question marketable, without submitting the issue to court scrutiny after flaunting 140 years of Massachusetts judicial precedent. Secondly, and more to the point, perhaps Big Banks will now begin seriously considering pre-foreclosure events, that is, modifications, short sales and deeds-in-lieu, as viable alternatives they should more seriously entertain.

BUYING A HOME NOW!!!! The Lease-Purchase Dilemma in Purchasing Real Estate

Lynne Connelley — Fri, 17 Dec 2010 17:30:00 GMT

As a buyer, you found the house you love, but your credit or cash are lacking at the moment. So do you jump in and commit to the property, move in and rent until you can buy? It's a complicated question with no simple answer. Maybe. And what are the advantages of this agreement for the buyer? For the seller?

First, what is a lease-purchase (same thing as a lease-option)? You are agreeing now to purchase (or sell) a property at a future date at a price and terms you set up now. Then you move into the home and rent from the owner. Keep in mind that you are a tenant with no ownership rights such as deducting mortgage interest and fees from your taxes. Also depending on the contract, you may be doing repairs depending on the agreement. Owner/seller, you are now a landlord, but you still own that home.

So how does one set up a lease-purchase? It is a two-part agreement. First, you draft an offer to purchase with your Realtor's help. I highly, highly, highly recommend using a Realtor because you will be agreeing to a purchase price to be effective in six months, a year or maybe longer, so value is key. You probably don't have an accurate opinion of real estate values for that home and the trending of the area, so use an expert. This is a major purchase. And sellers, you want terms that are favorable to you as well, right? If you have a professional Realtor in your corner, you will be maximizing your rights while still being fair to the buyers. All parties should be represented.

Suggested terms will include how much, if any, of your monthly rent will be credited toward the eventual purchase; how much earnest money (up front cash) you will be giving the owners and whether that is refundable; how long the agreement will run and whether it can be extended by one or both parties. Key elements, folks!

Second, after terms are reached, the owner and the lessee will sign a rental agreement, which is attached as Exhibit A to the accepted offer. This states the terms for tenancy including the above responsibilities for maintenance. Owners, you may even want to hire a management company to keep this an arms length transaction.

So advantages for the owner? You have a committed buyer in the property who will probably be paying rent that exceeds current market rent for the house since part of it will be going toward a future down payment, and you will probably have gotten non-refundable money up front. The new tenant will probably take better care of the property than one who has no intention of buying it. Also, odds are great that the buyer/lessee will never exercise the option, so you will have gotten cash and still have a property to sell with a few bucks in your pocket. Things change in a year or two in everyone's lives, and what looks like a great deal now may not seem so for the buyers in a year or two. Lives change, plans change.

Advantages for a buyer/lessee? You will be living in the home you love with a goal of clearing your credit or saving up cash -- or both -- so that you can buy the home. You will be getting to know your new neighbors. And it takes this home off the market so no one else can buy it. But be very, very sure that when it is time to exercise that option that you will be in the position to do so or you will lose what may be a significant amount of cash.

See a future blog here about how to buy NOW with bad credit or little cash!

Bend Oregon Real Estate Selling Like HOTCAKES!!

Lynne Connelley — Fri, 03 Dec 2010 19:11:00 GMT

If I didn't know better and I didn't have a calendar in front of me telling me it is clearly 2010 and NOT 2005, I would think we were back in the crazy days of Bend, OR, homes for sale when we had offers and multiple offers almost as soon as we listed a property, be it a residential sale, condo or a Central Oregon ranch or farm. All price ranges, all types of sales.

This week I submitted offers for two clients on homes, and both ended up in multiple offer situations. On one, which was a bank owned home under $200,000, there were a total of SIX offers submitted to the listing agent. My client improved his full-price offer by about 20 percent (!!!!!) and still did not get the home. It was beautiful and underpriced, but not that much!

As I have said before and continue to say: Low prices and rock bottom interest rates make this the buying opportunity of a lifetime. I see banks getting smarter and more efficient, and when short sales and foreclosures are a smaller part of our market, which will certainly happen by 2012 but maybe 2011, these opportunities will be gone. Forever.

The TRUTH about the So-Called Real Estate Transfer Tax in the Health Care Law

Lynne Connelley — Wed, 24 Nov 2010 18:32:00 GMT

Myth: The health care bill contains a 4% "transfer tax" on home sales."

This myth was circulated largely in the form of an email and has spread like wildfire. The truth is that the bill included a provision that imposes a new 3.8% Medicare tax for some high income households that have "net investment income." Any revenue collected by the tax is dedicated to the Medicare hospital insurance program. Articles such as one in Natural News are flat out wrong when they claim that this could affect middle-class income earners and all rental income.

This applies to households with an Adjusted Gross Income of more than $200,000 for individuals or more than $250,000 for married couples. Since capital gains are included in the definition of net investment income, an additional tax obligation might result from the sale of real property.

Even if the AGI limits are met, the new tax would not be applied to capital gains that result from the sale of a personal home since the existing home sale capital gains exclusion rule still applies, which is $250,000 for individuals and $500,000 for couples.

This will take effect January 1, 2013. There is no change to the mortgage interest deduction.

For a copy of the actual language in the bill, please contact me and I will email or mail it to you as well as any information you need about Bend OR homes for sale, MLS listings in Bend and Central Oregon farms and ranches. Business is brisk, and prices are low, low, low!

How -- and When -- to Appeal Your Property Taxes!!!

Lynne Connelley — Fri, 22 Oct 2010 07:09:00 GMT

Pay attention! This is crucial and can affect your property taxes for years to come! There is no question that property values are down from 30 to 50 percent in Central Oregon depending on whether you own undeveloped land, a residence or commercial property. It is time, if you are eligible, to reset that marker of property value because from then on you can only have an increase in your assessment of 3% per year. This year and next are crucial in perhaps decreasing your tax bill.

Property tax bills have just arrived in your mailbox for your Central Oregon property. READ THEM! And I would suggest even taking the time to go to the assessor's office to have them explain it to you. First look at the RMV, or Real Market Value. Then look at the AV, the Assessed Value. If the RMV is less than the AV as of Jan 1 of 2010 (these calculations are lagging by almost a year), you may have an appeal.

Properties that may particularly be eligible are newer construction, property valued at $500,000 or more, large sites and vacant buildings and unique properties that are a challenge to appraise.

Check for errors! Do your homework! And the appeal MUST, MUST, MUST be filed before January 1, 2011.

Feel free to contact me to get a copy of the form for appeals or get that from the assessor's office. And good luck!

It's Deja Vu All Over Again. Or Is It?

Lynne Connelley — Fri, 03 Sep 2010 07:01:00 GMT

It is all doom and gloom, aces and eights in the economic picture including, of course, the real estate market. Never been worse? Not hardly. To highlight this and give us better perspective and some hope towards the future, I wanted to share something that was pointed out by Dennis Gartman, a well respected market analyst. Back in 1992, an article in Time Magazine included this passage:

"The US economy remains almost comatose. The slump already ranks as the longest period of sustained weakness since the Depression. The economy is staggering under many 'structural' burdens, as opposed to familiar 'cyclical' problems. The structural faults represent once-in-a-lifetime dislocations that will take years to work out. Among them: the job drought; the debt hangover; the banking collapse; the real estate depression; the health care cost explosion and the runaway federal deficit."

It's amazing how eerily similar the picture from 1992 compares to today. We all know that the period following 1992 included terrific growth and opportunities in the economy, stock market and housing. If history repeats itself, which it often does, this could point to much better days in the future with opportunities in the present.

There is a light at the end of the tunnel and it isn't a train....

Thanks to Mark Long of Evergreen Home Loans in Bend, OR, for this insight. There is indeed light at the end of the tunnel. It's been a busy month!!!

Over-The-Top Gorgeous for City and Country Living

Lynne Connelley — Tue, 10 Aug 2010 20:29:00 GMT

Looking at Bend OR homes for sale today on the Multiple Listing Tour were a few gems. Please contact me if you want to see photos and I will send them out immediately.

In city homes, two homes were outstanding. One is on my favorite street in all of Bend, Drake Road. This is located within walking distance of downtown (just a few blocks) as well as the Deschutes River, which runs through town, and Drake Park, scene of countless festivals and activities. This 1928 home has been tastefully updated with a spacious master suite and sitting area as well as three other lovely bedrooms, finished basement with exercise room and a fabulous kitchen. Move in, chill the champagne and let the fun begin.

The second city home is on Awbrey Butte with killer views of the Cascades, a homesite that is over 2 acres for totaly privacy and a magnificent home with understated elegance and lots of light. I loved the media room! This large home has 4 bedrooms, 3 1/2 baths and a great price. REALLY great. Call me for details and photos.

The country homes are wonderful Central Oregon ranches and farms at their best all located in the popular Tumalo area. All with Cascade views, the homes range from $935,000 on about 40 acres to $2,950,000 on five acres with a lake, pond, barn, and a magnificent home with every room you would ever want for playing, relaxing and entertaining. My favorite home is $1,899,000 because the home is peaceful, mostly single level and elegant plus the horse facilities are excellent including an outdoor arena and six-stall barn. All these homes have irrigation rights for those green, green pastures.

See these and other MLS listings in Bend, OR, on my website and then call me for more details and a personal tour.

The Number 1 Office in Central Oregon

Lynne Connelley — Sat, 31 Jul 2010 05:30:00 GMT

Coldwell Banker Morris is named once again one of the top Coldwell Banker offices nationally. Among the 270 offices of Coldwell Banker agencies with 50 to 100 agents, our Bend office is #14 for gross commission income. In Central Oregon our agents are top producers, and we work together as a team.

In Bend, OR, real estate sales, we bring that experience and energy to you when you buy or sell a home. Whether you are looking for the perfect downtown cottage, a ranch with killer views, a home on the river or a second home for your private sanctuary, give me a call and we can put that synergy to work for you.

This Week's Smokin' Deals for Homes and Ranches in Central Oregon

Lynne Connelley — Sat, 31 Jul 2010 05:03:00 GMT

Occasionally -- maybe a couple of times a month at most -- I see a fabulous buy on a home on our Tuesday morning MLS tour of Bend real estate or our Wednesday morning office tour of homes and farms & ranches for Coldwell Banker Morris. This past week I saw THREE incredible deals, the kind of property you walk in and wonder, "WHO DO I KNOW FOR THIS WONDERFUL PLACE?"

One of these homes is a custom home on 20 acres, the perfect Central Oregon ranch. One is a beautiful home with artist's studio on 2 1/2 acres. The third is a quality fairly new home with many upgrades in town with great Cascade views.

First, picture a totally private single-level custom home high on a knoll with unlimited Cascade views amid 20 irrigated acres for livestock backing to public land for miles and miles of riding. All for the incredible price of less than $500,000.

Next, you still want privacy but just few acres is perfect for you? The home has two separate wings, one for the master suite and office and the other with guest suites and media/family room, the artist's studio is your getaway, your office or your work room, and gardens surround the home affording that sought-after privacy. Located in a desireable neighborhood and bordering public land for miles of great walking or riding (horses are permitted), this is a great deal for about $550,000.

A home in town with killer views is more your style and you still want a great deal? How about a custom Craftsman home with upgrades such as passive solar, granite counters in the kitchen, cherry flooring, solid core doors, two master suites, a bonus room and a 3-car garage, all for less than $350,000?

Give me a call (541-408-6720) or email me at Lynne@LynneConnelley.com for more details, pictures and a private tour of any of these wonderful, well priced properties.

DIvine Property RIghts: God and the FHA

Lynne Connelley — Tue, 27 Jul 2010 05:35:00 GMT

A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the lawyer three months to track down. After sending the information to the FHA, he received the following reply:

(Actual reply from FHA):

"Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."

Annoyed, the lawyer responded as follows (actual response):

"Your letter regarding title in Case No. 189156 has been received. I note that you wish to have title extended further than the 206 years covered by the present application I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased by the United States from France in 1803, the year of origin identified in our application.

"For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain. The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Queen Isabella.

"The good Queen Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus's expedition.

"Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana. God, therefore, would be the owner of origin and His origins date back to before the beginning of time, the world as we know it, and the FHA.

"I hope you find God's original claim to be satisfactory. Now may we have our damn loan?"

The loan was immediately approved.

The Prices, they are A-Changing!

Lynne Connelley — Tue, 20 Jul 2010 22:59:00 GMT

Market statistics, in Bend and elsewhere, are pointing decidedly UP. The San Diego Union-Tribune on June 15 stated that their home prices, which had been falling at double-digit rates a year ago are now rising rapidly as upper end buyers find great bargains and investors re-enter the market attracted by value.

The Bend market is no exception. Over the past 6 months, the percentage of our market that is short sales and bank owned properties has dropped 17%. That sector now represents less than half of the market. Bank owned homes are usually priced well, but there is stiff competition among buyers. The number of sales of all homes 2010 over 2009 has increased an average of 51.65% since January.

The median sales price (half the market above, half below) of a residence in January of this year was $212,000 for seller owned and $177,500 for bank owned & short sales, but in June it had risen to $254,500 and decreased slightly to $175,000 for bank owned. In 2009 those figures were $233,750 in January, and it had dropped to $219,000 by June.

So we are heading in the right direction. With interest rates at well under 5%, it is an attractive market indeed. And don’t forget to ask me about those zero to 3% down loans.

Another interesting way to look at the market is that if you look at a chart of prices from 1997 to date and you figure a steady 3% appreciation it matches almost exactly the price increase from that purchase in 1997. In real estate investing over the long term, the only way to lose money is if you must sell. Adding in those tax benefits of home ownership, it’s an excellent investment long term.

SMOKIN' Lender Deals!

Lynne Connelley — Sat, 26 Jun 2010 00:09:00 GMT

Not only are prices at low levels we could not even imagine two years ago, but this month I want to focus on a critical part of the homebuying process in any market: financing. We have been hearing that rates are at historic levels, but did you know what those levels are? How about 4.5% on a 30-year fixed loan for buyers with 20% down and good credit? Yes, that’s 4 ½%!!! Adjustable rate mortgages at 3 5/8%? 15-year loans at 3 7/8%? Yep!

There are two special loan products that I do want to mention briefly. One is the Neighborhood Stabilization Program. This is a federal fund of $2.3 million available to assist homebuyers purchase bank owned (yes, only bank owned) homes. NSP provides a 0% second mortgage for up to 20% of the purchase price to qualifying borrowers in Deschutes, Crook and Jefferson counties.

The second program is HomePath. This is for FannieMae and FreddieMac owned homes only, meaning they are bank owned, and the bank is Fannie or Freddie, quasi-governmental entities. In this program, you put down as little as 3% for owner occupied or 10% for investors, there is no mortgage insurance (MI adds to your monthly payment), no appraisal is required and the seller can contribute to your closing costs. The rates are slightly higher, but if you have less money for a downpayment, this could be the perfect program for you. And Fannie and Freddie homes are great deals.

Please call me or email me if you want to find one of these great houses and/or want more information about either one of these loans. I have excellent mortgage brokers on my team who can quickly and completely prequalify you for that perfect loan. Yes, banks are indeed lending!

There is Magic in these Settings

Lynne Connelley — Wed, 28 Apr 2010 21:15:00 GMT

Some good deals for sale in Bend? Yep! But there are a lot of NOT good deals as well. Tuesday's MLS tour included a small home that backs to a busy road, a new home overpriced by at least $50,000 and a home backing a busy road that is at least $200,000 overpriced! One would think in the current market that sellers would be realistic.

On the other side of that coin, two homes stood out in beautiy, value and location. The first is a charming 1990s mini-ranch with incredible easterly views overlooking an idyllic setting of pastures, horses, fencing and ponds. It is single level and has a small but efficient barn and outbuildings. And it is priced under $500,000.

A second buy was a total surprise. I never had a clue it was there it is so hidden. As you pass through a neighborhood of newer homes, tucked at the end of the road is a gem of a home on .4 of an acre that was built in 1990 and is light, cheery and charming with total privacy. The feeling is that of a sanctuary, a retreat. With four bedrooms and over 2,800 square feet, there is plenty of room for a family, guests or hobby rooms. And what a fabulous kitchen! The back patio maximizes this prime setting with planters, seating areas, the canal and a huge neighboring pond. Sipping a cool drink this summer will be a dream on that patio! The price of about $325,000 is excellent.

Neither of these properties are short sales, so you can move right into that new Central Oregon home or ranch.

No Money Down? Still Alive and Well!

Lynne Connelley — Wed, 28 Apr 2010 20:43:00 GMT

The big news -- or almost news -- is that the USDA funding is still available and may continue into the near future uninterrupted.

So what is USDA funding? The Dept of Agriculture offers loans for no downpayment (yes, 100% financing) in rural areas, and in Central Oregon that includes almost everything but Bend, and there are pockets in Bend that are eligible. There are income limits on that, but our concern has been that the money will be running out. Fiscal funding will begin again June 1, but now thanks to bills working their way through Congress the current funding may increase. Stay tuned for more information on this.

If you have more questions about the Rural Development Loan Program, funded by USDA, please call me or email me and I will be sure to get you the details you would like on this or any Bend Oregon homes for sale, MLS listings in Bend or elsewhere in Central Oregon or -- my favorite -- farms and ranches.

Better yet, Let's Go Riding!

Are Short Sales Disappearing?

Lynne Connelley — Wed, 21 Apr 2010 20:13:00 GMT

It will indeed be music to our collective ears as brokers, as sellers and as buyers when the era of short sales comes to an end. It has not reached that point yet, at least as I see Bend Oregon homes for sale this month, but there are good signs.

Looking at the MLS listings which were on tour yesterday, April 20, of the approximate two dozen homes for sale, only one on tour was a short sale. ONE! Hurray! And there were some excellent buys.

To name a few, a nearly new 3-bedroom home in downtown Bend can be purchased for about $250,000. Another downtown home is available for $225,000. A gorgeous 5,000 sq ft single-level log home in a fabulous neighborhood with hand scribed logs on nearly 3 acres is being offered in the mid $800,000 range, down over a half million dollars from its original listing. Bring your own horses!

And in the category of Central Oregon ranches and farms, I saw on tour a magnificent ranch home on 6 acres in Tumalo with Cascade views PLUS an additional 2-bedroom guest home PLUS a perfect little barn with paddocks and RV storage -- all for $1,200,000, an excellent price. Also in a fabulous neighborhood for you and your horses is a lovely home with huge Cascade views on 2 1/3 acres in the mid $300,000 range. It not only backs to public land for riding and hiking but also has a cute guest home, a large shop and enclosed RV parking! For $350,000??? An incredible buy!

And the best news of all? NO SHORT SALES!!! Ahhhhhhhhhhhhh, for the end of that era. Cheers! And please call me or email me if you want to see any of these great properties.

The Truth About the Government's Programs to STAY In Your Home!!!!

Lynne Connelley — Sun, 11 Apr 2010 06:44:00 GMT

Have you heard of the November 30, 2009, program by the Treasury Department called HAFA? It took effect this week on Monday, April 5, and its guidelines follow below. HAFA (Home Affordable Foreclosure Alternatives Program) is part of the fairly unsuccessful -- well, VERY unsuccessful -- HAMP program, Home Affordable Modification Program under which almost no one has been able to modify their mortgages. I think the odds are slightly better than being taken out for dinner by Richard Gere -- but only slightly. Get the picture?

HAFA provides incentives in connection with a short sale or deed in lieu of foreclosure used to avoid foreclosure on a loan eligible for modificaiton under the HAMP program. The catch? Not all servicers participate in this program. And the catch for HAFA? Two main investors do NOT participate at this time, namely FannieMae and FreddieMac. HUGE problem since they are THE major real estate investors in the United States. Supposedly Fannie and Freddie will issue their own versions of HAFA in coming weeks. We'll see on that.

There are 43 pages of guidelines in HAFA, designed to simplify and streamline the use of short sales and deeds in lieu of foreclosure. HAFA:

Complements HAMP by providing a viable alternative for borrowers who are HAMP eligible but are unable to keep their home;
Uses borrower financial and hardship information already collected in connection with consideration of a loan modification (Oh, sure -- you mean one department of the lender will be talking to another department? I will believe that when I see it.)
Allows borrowers to receive pre-approved short sales terms before listing the property. Currently after many months of painful and frustrating negotiations by the sellers' broker and the bank and many lost documents and unsatisfying phone calls the bank may or may not send a letter approving the short sale, and the terms are always a guessing game.
Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement. Are you listening, Chase?
Requires borrowers to be fully released from future liability for the first mortgage debt. THIS IS HUGE, HUGE, HUGE, HUGE!!! DID I SAY HUGE?
Uses standard processes, documents and timeframes/deadlines. Currently every lender and sometimes even different employees for the same lenders use varying forms and processes and timelines. Some can be as long as a year.
Provides financial incentives for borrower relocation assistance, for servicers to cover some of their costs and for investors for allowing a atotal of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders.
Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines.

See MakingHomeAffordable.gov for participating servicers.

And good luck! Call me or email me with success stories, frustrations, questions or just to gripe! There are great deals in Central Oregon real estate, and maybe this program will unlock the door to the greatest deals of all, short sales. Ready, set, go!

An Insider's View of NW Bend Listings Today

Lynne Connelley — Tue, 23 Mar 2010 23:04:00 GMT

Every Tuesday Bend brokers have an opportunity to view Bend Oregon homes for sale. Today's tour focused on the northwest quadrant of town, certainly an area of beautiful homes. Today's tour had its share of beautiful homes, but huge values also exist. To review the homes I saw this morning, I will classify them as a great value, cool location, over-the-top gorgeous, and some have all three.

Looking for a home with lots of wonderful spaces close in to town in the West Hills -- beautiful kitchen, cozy office, exquisite attention to detail, executive master suite, apartment unit on the second floor with skylights and views of trees and add a fabulous garage (no, the roadster does not stay!) -- and you have got an excellent buy in a lovely remodeled 50s home I saw priced in the $400,000 range.

Vintage style downtown? You can have it complete with the old windows, lovely architectural details in doors and windows and a private yard with antique gates for under $550,000. Very homey and chic.

Life on the river? Yep! Your choice of a condo or magnificent lodge style home with multiple fireplaces, media room and gourmet kitchen, all with the river practically running through it. The price range for these delectable homes you will never want to leave? Under $650,000 for the brand new condo (down about $300,000 from when they were first introduced to the market a couple of years ago) and the home is listed in the upper $1,000,000 range. And don't forget the home ON the river I previously blogged about which can be purchased for under $1,000,000 and is about 4,000 sq ft of carefree river living.

And the tour was huge compared to recent months, so I see a supply of high end homes looking for bargain hunters like you!

All this and I never got the chance to visit the Central Oregon farms and ranches that were on tour. To see these MLS listings in Bend or anywhere in Central Oregon, visit my website or give me a call.

Great Buys and Some Duds -- Touring Homes in Bend

Lynne Connelley — Tue, 16 Feb 2010 22:11:00 GMT

We brokers are fortunate in Central Oregon in that we have a MLS (Multiple Listing Service) tour of new listings every Tuesday in Bend and other days in other Central Oregon towns such as LaPine, Sisters, Redmond and Prineville. Our office tours our properties on Wednesdays. So I have the opportunity to see Bend Oregon homes for sale, MLS listings in Bend and ranches and farms when they come up for tours. Often in my blog I highlight what I see from those tours.

This morning I rediscovered a wonderful neighborhood and saw a couple of lovely homes, but with almost no exception I thought everything I saw was overpriced. For instance, the fabulous neighborhood, that I have always loved, is off Pinebrook just minutes from downtown and the Old Mill District, but the lots are larger (the one I saw this morning is 1/3 acre) and there are huge ponderosa pines. This morning's tour, however, was of a very dated 1983 home that is about $50,000 overpriced. Not a good combination!

One home is priced a bit high but is NOT a short sale -- hurray! -- and has been totally upgraded with new carpet, paint and flooring. Lovely and priced at $239,000. At under $199,000 it would be a great deal. It is actually within walking distance from the shops and restaurants of the Old Mill District.

I saw a home that is a beautifully remodeled 1998 2-story with master on the main level, high ceilings, magnificent yard that backs to the River Trail system and a 3-car garage, but the price is about $100,000 high! At nearly $400,000 one could purchase a McMansion instead of this 2,100 sq ft home. It is beautiful, though.

And finally, that McMansion. An almost new 3,500 sq ft home in the $400,000 range in a neighborhood with a pool is an outstanding buy. One out of four is not bad!!

Great Homes, Great Prices

Lynne Connelley — Wed, 10 Feb 2010 20:08:00 GMT

Touring homes for sale in Bend Oregon this week, one did not have to see many homes to see great deals. For instance? Here are a few.

Close in to town, a home loaded with charm including a real brick fireplace and oak floors throughout the home, this adorable 1959 cottage can be purchased for $140,000.

A 4 bedroom, 2 1/2 bath 2100 sq ft home for $169,000? Yep, it's true! Oh, and it is NEW!

NOT A SHORT SALE, I saw a beautiful home in Oakview for about $200,000, 3 bedrooms, 2 1/2 baths, about 2 years old with a gracious, large back deck. There is even RV or extra vehicle parking! That's hard to find.

And finally, also in the Oaktree area (near shopping and the medical center), if you are looking for a Craftsman home with 4 bedrooms and a great floor plan, over 2,500 sq ft for under $245,000, there is definitely a great home waiting for you.

These MLS listings in Bend Oregon and excellent examples of value in today's market. And let me know if you are interested in seeing Central Oregon ranches and farms as well. A list can be custom designed for you and sent to your inbox. Although we have reduced inventory, it is still definitely a buyer's market.