Under new management, and with the support of the top-producing agents in North America, StarPower continues its 20-year tradition of elevating the standard of care in the real estate industry.

 

Bend, Oregon-December 2009 – StarPower, the number-one brand in real estate education, announced a transition of leadership to Alex Charfen, a leading trainer, author, coach, speaker and StarPower Star. The announcement was made at Star Advance, the organization’s annual leadership meeting at The Ritz-Carlton, Lake Las Vegas in Henderson, Nevada.

 

“StarPower will remain the most relevant, recognized leader in real estate education,” Charfen said. “With the dedicated involvement of our StarPower Stars, the contributions to the advancement of the real estate industry and our success as an organization are assured.”

 

Founded by industry icon Howard Brinton, StarPower is an organization focused on elevating the standard of care in the real estate industry. Each month a new StarPower Star is selected based upon achievements in sales, leadership, business acumen and a willingness to share the lessons of their success with others. This has helped StarPower Stars typically average more than $35 million in annual sales volume and more than 200 transactions per year. Less than 300 real estate agents have achieved the distinction of StarPower Star, making it the most exclusive designation in the industry.

 

After news of the transition was presented at Star Advance, StarPower Star Martha Hendrick of Martha Hendrick Realty announced support of the new management and strategic direction of the StarPower brand.

 

“I couldn’t be more excited to be a part of the future of StarPower, and to increase our positive impact upon the real estate community,” Hendrick said.

 

“In the current economic climate, I have the opportunity to make a real difference in the personal and professional lives of countless real estate professionals,” Hendrick added. “As a StarPower Star and leader in my market, there is a responsibility to share the lessons of my success with others. In this way, StarPower Stars are actively improving the industry we have chosen to be a part of.”

 

On a monthly basis, StarPower Club members receive the strategies, tools, insights and perspectives that have helped StarPower Stars realize success. The StarPower Annual Conference, one of the best-attended conferences in the industry each year, will continue its presence on the real estate calendar. Details on the conference will be announced in the near future, Charfen said.

 

For more information, contact:

 

Martha Hendrick

Martha Hendrick Realty

541.815.8300

Martha@Hendrick.com

Hendrick.com

Click here to review the May MLS Charts for Bend, OR.

Thanks,

Martha

Ever dreamed of buying a vacation home? Here’s how to ensure that your investment is a wise one

Story by Kate Verotsky
A native of Houston, Martha Hendrick is the best kind of Pacific Northwest transplant. She’s been here for more than 25 years, and she still loves everything about the area. “Ya’ll kept this beautiful place a secret for far too long,” she laughs. A real estate broker with properties available in Sun River, coastal Washington’s Ilwaco and California cattle country, Hendrick lives in Vancouver and also owns a vacation home near Bend. Who better to quiz about the ins and outs of vacation home buying than she, who has been both buyer and seller?

If you already enjoy frequent weekend getaways to a specific place, perhaps you’ve wondered about the costs and benefits of buying in the area. How do you know if it’s possible, and more importantly – how do you ensure that the investment is a wise one?

The dollars and sense
“Buying a vacation home is not unlike buying a primary home, but there are some additional factors that you need to consider,” Hendrick says. First, there are tax advantages and there are consequences. Most buyers are not going to be living in the home year round – at least not right away – which obviously makes for a different financial landscape from that of a primary home. She recommends researching a tax program called the 1031 exchange, in which taxes are not eliminated but they can sometimes be deferred.

On the subject of partial occupancy, Hendrick has a gentle reality check. Most buyers do rent the property out when they aren’t using it, but very rarely does the rental income cover the cost of ownership. “I’ve had a lot of people think that they can get a mortgage on a property and then rent it out– no cost to them and a free vacation. Well, we can wish and we can dream, but that’s just not realistic,” she says.

The reality is that although you will probably offset your cost at least partially by renting the property; don’t expect it to pay for itself. Buyers also need to research the rules and regulations regarding rentals. According to Hendrick, many communities have rules against nightly rentals, and some require leases of at least 30 days duration.

Finally, make room in your budget for any incidental repairs that may be needed as a result of renting the property. “If you get somebody in that doesn’t take as good of care of your property as you would, then you have consider whether the offsetting of your cost by renting was worth any refurbishment that you need to do such as painting, furniture or wear and tear of carpet,” says Hendrick.

Costs of Ownership
The truth is, though vacation homes are infinitely rewarding for most owners, there’s a lot more to property ownership than mortgage payments and taxes. Consider homeowner fees, for instance. Though they are a great convenience to many absentee owners, buyers should examine the fees carefully. “Don’t just ask what the fees are, but find out what they cover,” advises Hendrick. Do they pay for exterior painting every few years? What about roof maintenance? Landscaping? Many vacation homebuyers will need to hire a management company to attend to details not covered by the homeowner dues such as ensuring that the heat is on and that the pipes don’t freeze in the winter.

Also, buyers should factor in the costs of membership for certain amenities that the community offers. “If you buy a house on a golf course, don’t assume that you can go out your backyard to hole 13 and play through,” says Hendrick. “That’s a private golf course, and you had better find out what the costs are because that’s going to impact the bottom line of what you’re going to spend on the house.”

Location, location, location
This is the real doozie decision – where to buy? There are several factors to consider here. The first is distance. How far is too far, or perhaps more to the point --- how far is too close? “It all depends on your purpose,” Hendrick replies. “If somebody intends to use their vacation home as a restful retreat place once a month, or once every six weeks – I would suggest not going more than a two or three hour drive out of the city. Once you get into four and five hours, then it’s no longer an overnight or a weekend jaunt.”
On the other hand, other buyers consider great distance to be the whole point of a “getaway.” “Some people want to be far enough away that it just isn’t possible to get back for a meeting,” says Hendrick.

Next, consider the community’s resources, particularly if you plan to live at the property full time at some point in the future, such as during your retirement years. Are there family-friendly activities? Plenty of restaurants and cultural opportunities? An important consideration that many buyers tend to overlook with vacation property is convenient access to healthcare. This can become a concern particularly to retirees or families with small children.

Just as important as the recreational amenities, the future of the area is a vital consideration. Hendrick urges potential buyers to research the area as thoroughly as possible. She’s seen all too many buyers get excited about stunning views from their front windows, only to discover that a developer owns the neighboring property and is planning to start constructing high rise condominiums on it. “One of the questions that I always encourage buyers to ask is where the area is going. If you’re looking at a model home that’s in phase one of development, what is planned for phases two, three and four? How many more vacation homes are planned? You’re going to want to see the entire plan map, because this will affect your roads, your land and your view.”

Another oft-overlooked issue, according to Hendrick, is water. Is the property on the city water system, or are there extra fees for a privately owned well? If the supply is privately owned, is it adequate to accommodate any planned growth in the area?

Have an Exit Strategy
When purchasing property in a vacation area, or purchasing anything for that matter, it is always wise to have an exit plan. If at some point in the future you decide to sell, will the investment pay off? Hendrick suggests thinking about the specific appeal of this area. Find out about the resale value and volume of other vacation homes. If possible, try to buy in a yet-undiscovered area.

“No one has a crystal ball, and markets can change, but ask yourself if this is considered a popular resort area, or if you have chosen something to fit only your specific needs,” Hendrick says. If a remote cabin in the woods is your idea of Utopia, consider that it may not be as marketable to the masses as a gated community with beach access and golf course.

So…to buy or not to buy?
Though many vacationers cringe at the thought of “throwing money away” on a rental, that may be the best bet for some, depending, once again, on your intentions and lifestyle. Consider your own personality. Do you enjoy familiar places, or are you more of an adventurous type? If you envision a family tradition of summers at a cozy beach cottage with the dream of retiring there full time when circumstances allow, then buying may be the right choice. However, for those that enjoy vacationing in new places every year – spending the whole vacation budget on one location may be a decision later regretted.

“I suggest testing the waters,” says Hendrick. “Rent a place there. If its not exactly what you envisioned it to be then yes, you’ve spent some money vacationing, but you’ve not put all of your eggs in one basket with a mortgage and fees and tied yourself down to something that did not exceed your expectations.”

Most importantly, take your time. Most buyers visit a location several times before committing to purchase. “Ask more questions than you think you should,” Hendrick stresses. “Don’t just look at one development, look at the entire area. Look at the shopping, look at the restaurants. Walk down the streets. Ask people how long they’ve been there and if they like it. That is the best research you can do – take someone for a coffee and ask about it.” Hendrick also suggests exploring the wealth of information provided by the Chamber of Commerce and local Visitor Bureau.

--------

By investing your time in front end research, you can rest assured that if and when you decide to purchase a vacation home, you’ll have made a wise investment in both your pocketbook and your future.

Resources
Martha Hendrick, CRS,CRP,ABR
(541) 815-8300
email: Martha@hendrick.com
www.hendrick.com
www.coastalridge.com

Bend is touted as American's top mountin biking town in the May 2009 issue of Mountain Bike Action magazine, according to a press release from Visit Bend.

Editors of the magazine praised Bend for access, lodging, weather, friendly locals, and variety of trails, according to the release.

Bend reportedly beat out other mountain biking hot spots such as Moab, Utah; Crested Butte, Colo, Durango, Colo, and Marin, CA

During a four-day visit last September, two Mountain Bike Action editors spent several days touring Central Oregon.

Their riding itinerary featured three full-day trips, including rides in the Ochoco Mountains to the east of Bend, and the High Cascades to the west."

As reported by Bulletin staff report, March 26, 2009.

Read the article by visiting the Mountain Bike Action magazine website by clicking here.

An informative article about when to buy in a down market appeared on About.com the other day and I just wanted to share it with you. There are may factors to consider for both buyers and sellers and not everyone is in the same situation. Click on this link to read the article: http://homebuying.about.com/od/buyingahome/qt/Waittobuy.htm 

If you have any questions about the Bend real estate market and if now is a good time for you based on your current situation, feel free to contact me or post a comment about this article. Thanks, Martha

Here is a good transaction to consider: A recent offer on a luxury home that was originally listed at $900K is now listed as “Bank will approve $600K”. The owner, after 520 days on the market, entered into a short sale process with his lender because of the market and economic climate that are evident in many of our real estate markets today, including Bend, Oregon. This luxury home with many extras may appear to be a bargain, and might be purchased at a tremendous discount.

However, it is important for buyers to understand thoroughly the difficult process of offering on a short sale or bank owned property.

1. Do you always get the best deal pursuing short sales and foreclosures?
2. If I submit the strongest offer, will I be sure to get the winning bid?
3. Will I be able if my offer is rejected, to get my money back on any professional inspection costs?
4. What is the time-frame for knowing if my offer has been accepted and I can move forward?
5. How can I write my best offer? What do I need to know?

Short sale/foreclosure—bargain? Maybe, or maybe not. How much time are you willing to wait? 2 months, 4 months, 8 months? In the meantime, other properties might come on the market and interest rates might vary in this market..then what is your plan? If you get emotionally attached, and if you are a home buyer who plan to move in, and not an investor, most of us do get attached and mentally start arranging our furniture and planning the proposed garden, how will you handle the disappointment and anxiety of “not knowing?”

The buyer representative you choose is more important even now in this real estate market. Choose a competent consultant, not a broker who just opens the door. Ask him/her… “what is the financial status of this home?”

Tax records and mortgage information are available thru the Taxing Authority in each county, and easily obtainable. I always try to strategize the plan of the seller very much like a football coach in using the playbook..(ie. How many months before default? How many loans on the property, amount, so that I can advise the buyer to move forward or not. If the preliminary title search (available thru the Title companies) produces multiple mortgage obligations and liens on the property, then it might take months..and months to negotiate to the closing table. At that point, the buyers are at choice in direction of path forward. And, by the way, many short sale/foreclosure contracts continue to be negotiated up and into the hour of closing. There is very little or no control for the buyers’ side of the transaction.

No money back, sorry. The buyer should be advised that any monies spent on inspecting the property shall not be returned in any event, whether or not the purchase offer goes thru. In any market, traditional or short sale, inspections are imperative and certainly inexpensive compared to the cost of repair should a buyer accept a property “as-is” without any inspections. Though your inspector can’t guarantee that you will have no repairs after move-in, you will have hired a professional licensed inspector who can conduct a thorough whole-house inspection on equipment and systems. Most will email a report and explain each process as he goes through the home. My inspectors encourage the prospective buyer to accompany them for the entire 3 or 4 hours so he can explain along the way. This is also a great time for the buyer to spend some time in the home”measuring windows” and rooms for future furniture placement.

As mentioned, buyers who enter into a short sale/foreclosure process for purchase must know the facts, and “enter into it with good advice and expectations”. Some buyers have a better tolerance of patience required in “waiting out the time period”, often 2, 4 , 6 or 8 months.

The statistics also show that less than 50% of short sales actually close, so there is a low rate of success.
Many of us hear about the friend who just moved into the “screaming deal” home that he successfully got. Great! So how many people have written offers and not been so successful..have you heard of those as well? (Just like The Lottery Winning Ticket! Yahoo..and what about the many ‘hopefuls’ who purchased a lottery ticket to no avail?

My advice is to be as informed as possible before proceeding, be positive and flexible. If the bank does return with a counter, be ready to react with Plan B—go for it, or pull off at the time.

There has never been a better time to work with a buyer broker, advocate on your behalf. Their negotiation skills are paramount , and you will appreciate the amount of research and time they put into the process for you to get your “screaming deal.” As a broker who has assisted both sellers and buyers for the past 25 years, I can tell you that many times it is the buyer you work hardest for. I have shown properties to buyers for several months on many occasions, and even a few over a period of more than a year (in a resort market). I have spent hours e-mailing new listings and getting information from listing agents about properties buyers may be interested in the copies of seller’s disclosures for their review.

I have done research to show them comparables that have sold so that can present an educated offer. I have attended more home inspections that I’d want to count, which typically take a minimum of 2.5 or 3 hours. I have assisted them in finding the right mortgage company, spent many hours reviewing home inspection reports with them, assisted them in presenting repair lists for sellers, and then negotiated for them on all of those issues. As a buyer’s agent, it is my job to oversee all deadlines in the contract, inspections, appraisals, mortgage commitments, etc. A good agent will take their buyer by the hand and guide them through every step of the process, and there are many steps to a closing for both the buyer’s and the seller’s agent. With all the opportunities of the buyers locating a home on the Internet (and almost 90% of buyers, per NAR stats do their research online before contacting an agent), it is very important for the buyer to hire the best buyer broker advocate he/she can!

This weekend in preparing my short sale offer, I also advised the Buyers to include a letter to the seller/lender stating the “strengths” of their offer, especially if the offer is a low-ball offer. There are not many blanks in the contract to explain one’s rationale in preparing an offer.

Presenting a “low-ball” offer (from 850K in seller’s mind at start of listing 450 days ago to the adjusted list price of $525K in today’s over-supplied market, is like saying to the seller: well, just how “low” will you go? So, a good negotiating technique is to compliment the seller/builder on your appreciation of the quality workmanship and attention to details the home reflects.

In my opinion, yes, it is definitely a business transaction at this stage of the listing period; however, negotiating can be defined as “the art of influencing or persuading others.”

So, write your comments in a separate letter to the seller/builder, attach it to the purchase offer. After all, a little consideration of the other parties’ side can go a long way toward getting your bid looked at, or not, especially if the seller is still involved and can make the deal work by bringing money to the closing table to reduce part of the debt.

For more information on hiring a buyer advocate to work for you, call Martha Hendrick, Martha Hendrick Realty.

I like to advise my buyer clients to work from a plan of preparation in searching for their perfect home in Bend, Oregon.
   
Five essential prerequisites that will allow you to react quickly:
1)  Road Map:  Identify the target areas which fulfill your needs and wants within your budget. (A good buyers’ agent is important to hire at the ‘get-go’ as the expert advice and time he/she will save a client is remarkable).  It probably will make the difference between getting what you want, or missing out.  A buyer’s agent will listen carefully to your “want list” and “wish list” and identify areas and homes that fit the bill! You will have your own advocate for finding and obtaining the best deal!  And, the seller or builder usually pays the agent’s fee.  Why would you choose otherwise?

2)  Obtain a Pre-Approval letter from your lender.   It is critical to have your qualification process completed in order to be competitive with the other bids that might be already presented. Stay a step ahead of the competition!

3) Your lender will advise you not to make large purchases right before you apply for a mortgage—i.e. new car, new boat, extra expenditures, run up on credit cards…do watch the spending since you are now focused on buying that perfect home!

4) You do want that perfect home, but at what price?  Decide ahead of time, before you are just dying to buy that home, what your limit is.  Very much like attending an auction, don’t get caught up in the flurry of the moment!

5) Don’t forget to calculate Taxes and Homeowners dues within your monthly payment. These will be recurring costs associated with your home, and with Taxes and HOA dues, might go up or down depending on the market and assessments by individual HOAs.

In the Bend, Oregon real estate market, we are seeing a continuation of soft home prices and great mortgage interest rates.  Right now is an unbelievable opportunity to purchase a home in our market.

Many of our buyers are “waiting” for the bottom-------and I ask, “How will you know?”
“Had you rather purchase one day too soon…..or, one day too late!

For buyer and seller resources, links to Central Oregon area information, a Photo Gallery, and a user-friendly Property Search, please visit www.hendrick.com. You can save your searches, or have new listings emailed to you automatically when they hit the market.

Golf at the Pronghorn™ Club in Bend, Oregon

I specialize in Bend’s local real estate market including golf communities, second homes, primary homes, and land. I like to work with my real estate clients as a “Real Estate Consultant” because I want to know all the facts and the information, but I don’t like being “Sold.” Many of my clients also appreciate the ability to obtain all the information, preview the homes they want, and know when they make a decision, every detail will be handled smoothly by me.

And please note that I own the Martha Hendrick Realty site, so your email addresses are never sold or shared.