5 minute read
Real Estate
Smart Home Buying
Reduce risk in a seller’s market
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The state of the current housing market is moving at a frenzied pace. Homes are going pending instantaneously with upwards of 20 or more offers, and the fear of missing out is forcing buyers to make rash decisions. It’s become routine to hear about all contingencies being waived, homebuyers accepting homes “as is” and sales prices going sky high over the asking price.
With memories of the 2008 recession still in buyers’ minds, how can homeowners be assured that their home purchase will be a wise investment? Currently the perfect storm of low mortgage interest rates, high demand and low inventory is the reason Bend’s median home sales price jumped to $580,000 during January. There really isn’t a “good deal” anywhere in sight, but there are ways to limit the risk and even make a smart buy in today’s market. Buyers need to make quick decisions. Strategizing and understanding limits and goals will help these decisions not be hasty ones.
Every buyer must have financing in order and a pre-approval in hand. Once a price range is determined, ask the lender for monthly payment and closing cost estimates at various price points. Assess where the comfortable payment will be and afforded, easily. Consider buying a home that needs sweat equity and complete updates and upgrades that will in turn help provide more equity—which could help keep the home’s value in the black if prices do dip. Whether or not there is another recession, the home will be more valuable and will have been more affordable than buying one already fixed up or new.
Avoid unnecessary risks by being mentally prepared and having a game plan about how far you’re willing to go, both in price and risk, before you make an offer. In this ultra-competitive market we advise that our buyers know their “walk-away” price: the price you’re willing to walk away from the home and lose out on the home to another buyer; their highest and best offer. Buyers are waiving inspection, appraisal contingencies and even buying homes sight unseen.
This is not only risky, it’s straight up unwise. Waiving a professional home inspection is a gamble that could end up costing a buyer tens of thousands of dollars with issues that would have been revealed during an inspection. Waiving the appraisal contingency could mean that the buyer would have to make up the appraisal gap, the difference between the home offer price and the appraised value.
Real estate prices historically continue a climb upward over time. Even if there is a short-term downward trend, sale prices have already exceeded the 2007 high prices before the crash. Building wealth is a long-term objective and it’s important to not rush into an imprudent purchase, being influenced by the mob mentality and ultimately living with buyer’s remorse. Successfully buying a home and maintaining it for years will create wealth, which in turn can be used as a tool to accelerate one forward, and can be handed down for generations.
HOME PRICE ROUNDUP
Photos and listing info from Central Oregon Multiple Listing Service
<< LOW
63781 Hunters Circle, Bend, OR 97701 3 beds, 2 bath, 1,420 square feet, .18 acres lot Built in 2013 $425,000 Listed by Bend Premier Real Estate LLC
MID >>
516 NW Riverfront Street, Bend, OR 97703 1 bed, 1 bath, 621 square feet, .04 acres lot Built in 1918 $549,000 Listed by Team Birtola High Desert
<< HIGH
1394 NW Mt Washington Drive, Bend, OR 97703 2 beds, 2 baths, 1,115 square feet, .11 acres lot Built in 2006 $630,000 Listed by Bend Premier Real Estate LLC
Otis Craig
Broker, CRS
FIND YOUR PLACE IN BEND www.otiscraig.com
& 541.771.4824 ) otis@otiscraig.com
Get Noticed in our Real Estate Section
contact: advertise@bendsource.com 541-383-0800
Richard Sams, Broker
ABR, GREEN, EA BROKER 541.948.2311 rick@teamsams.com
Abbie Kephart Sams, Broker
503.812.2025 abbie@teamsams.com
Licensed in the State of Oregon
www.teamsams.com
Get noticed in our Real Estate section The Only Company The Only Company contact advertise@bendsource.com You Need to You Need to Achieve Your Achieve Your Real Estate Goals Real Estate Goals
Andy Stearns
Principal Broker
MyLuckyHouse.com
1293 NE 3rd St, Bend
541-815-8200 Shari Ballard
Principal Broker
MLS#220115644 BEND | 20240 ROCK CANYON
$3,495,000 | 4 BD | 5.5 BA | 4,891 SF • Rare opportunity in Deschutes River Ranch • Single level living with master & 2 en-suites • Barn, shop, and guest quarters • Att. 3-car and det. 4-car with sprinter garage • Neighborhood access to BLM and Deschutes
Jordan Grandlund | Principal Broker | 541.948.5196 Stephanie Ruiz | Broker | ruizgrandlund@cascadesir.com MLS#220117718 BEND | 19215 CARTWRIGHT COURT
$3,495,000 | 4 BD | 6 BA | 4,708 SF • NW modern farmhouse in Tetherow • Steel fireplace, designer tile and fixtures • Gourmet kitchen with Wolf appliances • Firepit and outdoor dining area • 3-car garage with 10’ doors & epoxy floors
Jordan Grandlund | Principal Broker | 541.948.5196 Stephanie Ruiz | Broker | ruizgrandlund@cascadesir.com MLS#220112898
LUXURY IN BLACK BUTTE
$1,750,000 | 4 BD | 5 BA | 3,700 SF • Luxury living in the heart of the Ranch • Room for the entire family • Incredible master suite • 12th fairway views + outdoor living • Vaulted great room with large windows
Arends Realty Group | Brokers | 541.420.9997 phil.arends@cascadesir.com MLS#220103781 BEND | 65651 SWALLOWS NEST LANE
$1,295,000 | 4 BD | 6 BA | 4,610 SF • Furnished turnkey townhouse • Westerly view of the 17th fairway • 3-car garage with epoxy floors • Complete with spacious outdoor living • Beautifully landscaped backyard
Tebbs & Little Group | Brokers | 541.323.4823 tebbsandlittle@cascadesir.com
OUR NEWEST OREGON COAST OFFICE
AT SALISHAN COASTAL LODGE
Despite all the challenges during 2020, real estate sales on the Oregon Coast were up 10% over 2019. Having the Sotheby’s International Realty brand at the 4-star Salishan Coastal Lodge in Gleneden Beach greatly expands our real estate services in this beautiful area. We just listed a captivating luxury oceanfront home priced at $2,100,000. Located at 145 Salishan Drive in Gleneden Beach, the home is a contemporary oceanfront that perfectly blends natural finishes and modern amenities within the coastal gated community of the Salishan Homesites. Its well-designed floor plan compliments the ocean views from every room. CascadeSir.com #21540573
