Q. Why the big shift to move up buyers?

A. Many people have been waiting for the market to start recovering before selling and making the move. Match that up with interest rates still being around 4% and timing for moving up is becoming better and better.

Q. What’s the hardest part for people selling homes and moving up?

A. The hard part is timing. If you find a home you want to buy before your homes sells you’re not in the best position to buy. If you sell and can’t find the right house then you need to rent while you keep looking. I’d say it’s about 50/50 for a one time move and renting and looking. Most of my clients actually enjoy the departure while they keep looking and it takes some of the stress out of the move.

Q. Are people buying and then selling?

A. Not as much as they used to – most people want to know what they’ll have when they move. The third version of the move up is keeping your current home as a rental which works for some but certainly not everyone.

Q. Most people think of kitchens and bathrooms when they remodel – what return can someone expect for those projects?

A. Both those projects return 75% of the cost. That’s surprising for many people but it doesn’t increase values more than the cost. A minor kitchen remodel returns 91% of cost. This is why I recommend doing these big projects early on so you can enjoy them.

Q. What’s the worst return for improvements?

A. A home office remodel and sunroom will only return 50% of the cost.

Q. What projects do you think have a positive return?

A. I think repainting, cleaning, and staging have positive returns when you’re selling. They can also speed up the time on market which almost always yields more money for a seller.

Click here for the full report: Cost vs Value Report

Q. What is the most important thing senior home owners need to know?

A. You need to have a will or trust established to make sure your home is dealt with in the way you intended and also so it’s more quick and affordable for your heirs to take care of the estate.

Q. What about homeowners that are planning on downsizing?

A. Even if you’re in great health make sure you consider accessibility in the home itself and also the neighborhood.

Q. What about all the stuff and the actual move?

A. There are great resources to help seniors with the whole move process. If you’re considering a move to an assisted care facility you have more options when you’re in good health so it’s important not to put it off to the last minute.

With inventory at new lows and bidding wars becoming commonplace again we look at new changes to FHA financing which might turn the heat up even higher! Here to discuss these changes and their impact is real estate expert Nick Krautter from Keller Williams Real Estate and sellpdx.com

Q. What are the new changes to FHA financing and when do they start?

A. The upfront premium is going from 1% to 1.75% of the loan amount which means closing costs will rise by almost 1% which is huge when you know that total closing costs are typically around 3% of the sales price. The annual premium is also going up by 0.1%.

Q. What effect do you see this having on the market?

A. This will continue to push prices up in the market as most first time buyers need closing cost credits from sellers and when there are competitive bids for homes that credit is put on top of the price so the net offer is still competitve. This will add to the already red hot first time buyer market which is averaging over asking and push prices even higher.

Q. Do you think this will scare away first time buyers?

A. There is already a lot of confusion since the change in the market is happening so quickly. Buyers can wait until there is more inventory but they risk being on behind the market if the trend holds and prices continue to rise throughout the year.

Q – So the big question is should you sell now or wait until spring?

A – I’m seeing huge activity in the market, many homes that are new to the market are getting multiple offers. There just isn’t that much to choose from right now and buyers in the winter are serious buyers.

Q – Who would you advise to wait until summer?

A – I think waterfront homes and properties with acreage do better in the spring and summer. In the winter no one is using their boats are wanting to take care of a large parcel of land but in the summer those things become assets to the property.

Q – For sellers that are waiting until Spring what is the ideal time to list?

A – I like to go on the market right around Valentines Day. You have buyers starting to look but not a lot of competition from other sellers. There’s a window of opportunity there as well.

Check out 22 new and remodelled homes.

Build it Green info

I’m predicting around 700 closed sales in Portland (RMLS areas 141, 142, 143 & 148) in June. Seasonally speaking, average prices generally start to drop after the summer peak, bottoming out in winter; I expect investors to bolster the market through the winter. Yet, 2011 shows the market bottomed out in Fall and started to rise in Winter. It will be interesting to see if the positive trend continues into Summer.

Click to see the Case/Shiller Report and City Rank