Chris Courtney

Hi Vk,

In appraisal, we penalize properties with 'external obsolescence' to the tune of 5-10%.

If you like the house, and the obsolescence is not overwhelming, have your broker compare pricing to other properties that have sold, are pending, or are listed and of which are situated next to busy streets.

Consider your resale down the road. I have sold properties that back to a church, along a busy street, adjacent to a rail line....you can have such a property in the best neighborhood and still be able to sell it...but again, consider your resale down the road.

Regards,

Chris Courtney
State Certified Residential Appraiser - 15 years
Oregon Real Estate Broker - 10 years
www.HouseNow.com
(541) 345-7992 tel
(541) 912-1405 cell
*Search Portland, Eugene, Salem, Corvallis, Eugene, Springfield, Roseburg, Grants Pass, Medford Oregon athttp:// www.HouseNow.com - Yesterday, 23:51

Hi home seller,

Short answer is: YES to those statements in the report that are accurate and to the extent of what is comprimised. A home inspection is somewhat subjective, so some opinions are just opinions. You are best to take action of course.

Solution: Correct issues and have a reinspection by the same company for them to sign off.

Reason: Seller's property disclosure statement which can be your 'Achilles Heal'. Now that an inspection has been performed, correct what is accurately wrong (replace the missing thermostadt cover...it does not good sitting on the kitchen table although trivial but provides a finish surface, extension cords are not permanent wiring)...such that the next inspection never takes place as you will have a copy of the first inspection, and certification of all repairs.

Regards,

Chris Courtney
State Certified Residential Appraiser - 15 years
Oregon Real Estate Broker - 10 years
www.HouseNow.com
(541) 284-2511 tel
(541) 912-1405 cel - Yesterday, 23:46

Hi Donald,

You can search all listings in the Portland metro area at:

www.HouseNow.com

Where we implement Google mapping so you can see what is where, as well a map search where you can search by drawing a box on the map for your desired location.

Biking is a great sport! I recommend the older districts of Hawthorne, or Belmount, and farther out areas where you can find your antique paradise like Sellwood, or Multonomah Village (SW), or Johns Landing. If you can afford areas like NW or SW, stick to the areas like NW Lovejoy, Glisan, or SW Alder or Main...east of I-405. Here to help!

Best,

Chris Courtney
State Certified Residential Appraiser - 15 yrs.
Real Estate Broker - 10 yrs.
www.HouseNow.com
-Search Real Estate-
(541) 284-2511 tel
(541) 912-1405 cell
Chris@HouseNow.com - Yesterday, 23:38

No No, no, no.......I respectfully disagree with Tom...please read my post again.....I try to be as clear as possible. No monthly amount you pay as a buyer will be considered by any lender as a credit to price or in part downpayment as price has yet to be set, but more than that the money is now GONE. If anything, rents paid may be agreed to be considered as a reduction in price...but those are the particulars that are detailed in the agreement.

For example, you & seller agree to a price of $100,000 today (however, most lease/options set price in the future), $1,000/monthly rent, and that price will be reduced by 50% of the rent amount over the life of the option (great negotiation by the buyer to achieve this, this as example is fantasy). So, when you choose to exercise the option 12 months later, at that point in time you write a purchase contract at $94,000 which calculates to consider the rent credit ($100,000 less $6,000, or $94,000). But you will STILL BE required to have a downpayment by any lender, call it 20% of $94,000. Keep in mind the rents you have paid to the seller are spent...regardless of receipts for payment...there is no money that is 'liquid'.

Be VERY careful in separating 'rent monies' from 'credit monies'. You are very best to establish a market rent for the property (fair market rent ), and any monies above that rent you afford are ACCRUED in escrow and not spent. For example, your rent is $1,000 and you choose to afford $1,500 such that over 12 months you have paid $18,000 total, of which $12,000 is in rent which is now passed onto the seller who pays their lender, and $6,000 is sitting in escrow awaiting the day you make purchase intent (date of exercise). Your lender will view the $6,000 as downpayment monies (since it is 'liquid'), as well your option price will be considered as part payment also, call it $500. If you choose to abandon the deal, you get your $6,000 back (which is protected in escrow), but you lose the option monies ($500, keep as low as possible).

I hope this helps....I have experienced lease options, made the kind of mistakes you learn by, and understand them well enough to advise you as the buyer to talk to your lender and your attorney FIRST. You are VERY best to consult an attorney on the terms of such an agreement and expect to pay $600 to $800 for that counsel and paperwork.

Keep in mind that if the property is not free and clear of any lender, the lender can call the note at any time which may force your exercise of the option as the seller will have to suddenly satisfy the note.

Regards,

Chris Courtney
State Certified Residential Appraiser
Principal Broker
www.HouseNow.com
(541) 284-2511 office
(541) 912-1405 cell - Sat Jul 19 2008, 19:37

Hi Las Vegas,

Lease-options can be tricky, but here are some general points on how they work.

1. The lease is the contract that establishes rent for the property which may or may not include a premium above the rent rate. The 'premium' remains in an escrow account and accumulates over the life of the lease agreement such that when the buyer chooses to exercise the option, monies have stacked up that serves as partial downpayment. Meanwhile, the monthly rent monies pass through an escrow company to the seller. So, if your monthly rent is $1,000, try and afford $1,200 or $1,500 so those additional monies stack up over time. You may also choose an interest bearing account that a title company will assist you with establishing. Those monies are also protected in escrow should you choose to not exercise the option, but you will be losing the option 'price'.

2. The option 'price' is a price which may or may not be credited to the eventual price of the subject property. The seller & you as buyer may negotiate this option price and there is no standard. The option is a recorded document. The option has an expiration date. Additionally, provisions within the option agreement for transferability and setting property price are agreed. You do not typically set the price on the property at the time of option agreement, but in the future when the option is chosen to be exercised. As the buyer, If you set price now, the property may decline in value when you choose to exercise the option such that appraisal may be an issue and moreso buying a property for more than what it is worth. On the other hand, the property may appreciate in value over this time. Typically, any seller under good counsel will agree to setting the price when the option is chosen to be exercised. This is so the seller may gain in appreciation, but in this market who can predict pricing 2-5 years from now.

3. Lastly, hire a good attorney to handle the paperwork. If there is a broker involved, they don't get paid until the option is exercised and the property actually sells. This may relieve a seller who would want to collect enough monies now to cover any requested broker fees and which would ultimately become more expensive for you up front.

You can search real estate for sale athttp:// www.HouseNow.com.

Good luck!

Regards,

Chris Courtney
541-912-1405 cell - Thu Jul 17 2008, 05:56

Hello Hillsboro,

Statistically, you could be provided with 4 bedroom and 3 bedroom sales. My sense is there are a greater number of 3 bedroom sales over 4 bedroom sales, however my point is there are buyers for either demographic.

Maybe this home has potential for a bonus/den addition about the garage? This is typically, in my experience with new construction appraisal, very cheap to achieve if trusses are adequate to accommodate. You are likely not sure if the truss system would accommodate an addition like this, but something to consider when you are looking at 3 bedroom homes when you desire a 4th bedroom or den/office area (actually, just add a closet to a den/bonus room and it may be classified as a bedroom).

A good indication for the 'potential' of a bonus room addition over a garage is a two story home with unfinished area above the garage, or 1 story home that may accommodate adding stairs and a 2nd story addition. Your best to consult a contractor who can advise you as to this, but food for thought. I don't think you need to worry about re-saleability with a 3 or 4 bedroom home since either room bedroom count meets the needs of someone who is looking to buy.

Good luck.

www.HouseNow.com serves Portland.

Regards,
Chris Courtney
State Certified Residential Appraiser - Mon Jul 14 2008, 23:40