One of the things I love about my job is knowing the market and all the things that affect it. People use numbers all the time to try to understand the relative value, trends, and history that affect real estate. But with all the numbers in the world, every home is its own story.

The perfect example of this is when you have a truly unique home that all the neighbors pine over, joggers stare at and passerby’s take photos of. I’ve listed a few homes like this and it doesn’t matter what the market is – someone is going to buy it and love it and pay whatever it takes.

Lately I’ve been seeing two markets: Distressed and Normal. Sometimes these ‘markets’ exist on the same block.

Distressed: Short Sales, REO, Deferred maintenance properties. These are generally cheaper on paper but don’t usually show as well. They certainly have different methods of sale which can be daunting or jam packed with red-tape.

Normal: Properties being sold by the actual owner that has maintained and properly set the home up for showing and for sale. These look more expensive on paper but generally show better and the sales process is much more streamlined.

Just as an anecdote, the last 6 offers I’ve written for buyers have been on properties with at least one competing offer, sometimes more.

Popularity: 27% [?]

Lately I’ve had quite a few people ask me about timing the market – or when we’re going to reach the bottom. Everyone wants to get a good deal, and lately everyone wants to get the BEST deal. I’m no different and I’m also an active buyer just like you. So can you time the market? In a word, No, market timing is nearly impossible and the reason is that the only way to know you’ve reached the bottom is when things are on the rebound.

Look at the stock market for example – when the market dipped into the 8000 range people were still SELLING – now the market is coming back up and it’s clear that the last dip was the time to BUY.

Most people want a good deal but have no idea what that means to them.
Here is my 6 step plan to getting a GREAT deal:

1. Define what a good deal means to you as clearly as possible in all the ways it’s relevant [price, style, size, location]
2. Look at closed sales to get an idea of how realistic that ‘good deal’ is right now
3. Keep track of interest rates – a dip in rates can save you more than a dip in price sometimes
4. Have a definite time line
5. Stick with the parameters you set
6. Make an offer when you find the deal you’ve defined

If you do this you will be able to judge properties more effectively and know when that gift horse walks into your barn. In any market in any area the really good deals still go quickly. I think your ability and willingness to make an offer when the deal comes available might be the most important factor. Get your pre-approval lined up now and start socking away that downpayment money. If you wait until the market is on the rise you’ll be a buyer in a sellers market and that’s the wrong strategy if you want a great deal.

Popularity: 35% [?]

We all know there is alot of tough news out there right now. I just need to dispell the myth that you can’t get a loan. You CAN get a loan and interest rates remain very attractive. I asked my friend and motgage broker James Adair www.pdxhomeloan.com to share what kind of programs are available and what changes have been made.

Here is James’ recap of all the recent changes:

“Believe it or not, the only loans that are no longer around are the subprime variety. (no more bank statement loans, or 100% stated income) Also, the OPTION Pay ARM’s have been removed from the marketplace with the rollup of Wachovia (who was the last remaining player in that area).

99% of All Loan programs are still available.
The Biggest changes this year are as follows:

1. Credit score based pricing on interest Rates: Anything below a 720 credit score is subject to potential higher pricing
2. Credit score based pricing on Mortgage Insurance
*(this credit based pricing is what is driving the huge increase in FHA mortgages- they remain mostly unaffected by borrower credit scores)
3. More documentation and Reserve requirements on buying a new house and turning your old house into a rental. (monthly payments for both properties times 6 in reserve after close)
4. LTV restrictions on SECOND mortgages: Most second mortgages will require a minimum of 10% equity

I do still have the 100% purchase loan: the “Access” mortgage

30 year fixed, 40 year fixed, Fixed with Interest Only, Adjustable rate mortgages are all still available.

The Premium paid for Interest only has increased slightly, as has the premium paid for Investment/Non Owner Occupied financing.

FHA has moved to the forefront as one of the best available mortgage loans. Still, relaxed credit requirements, and excellent pricing and Low Down payment requirements.”

Popularity: 37% [?]