Comments on: West Linn Real Estate Market Activity — October 12-18, 2009 http://www.move2westlinn.com/2009/10/19/west-linn-real-estate-market-activity-october-12-18-2009/ News, Statistics, and Commentary about West Linn Oregon Real Estate Wed, 23 Jun 2010 15:10:28 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: David http://www.move2westlinn.com/2009/10/19/west-linn-real-estate-market-activity-october-12-18-2009/comment-page-1/#comment-816 David Thu, 22 Oct 2009 07:11:07 +0000 http://www.move2westlinn.com/?p=1037#comment-816 dj, thanks for the info on the Renaissance home. I know about the $125/month HOA fee. It's ridiculous. The lady who was there kept talking about how they got a fiber optic line to the neighborhood so internet is very fast. Fast internet for $125 a month? And you have to pay Comcast on top of that. I didn't know Renaissance was offering incentives like offering to pay your existing mortgage for a year. Oh man. I looked at their model home but didn't really talk about price. It's out of my price range. Being in bankruptcy protection gives them a lot of breathing room to sell those homes little by little. Unlike DR Horton who had pretty much a fire sale last month. David dj, thanks for the info on the Renaissance home. I know about the $125/month HOA fee. It’s ridiculous. The lady who was there kept talking about how they got a fiber optic line to the neighborhood so internet is very fast. Fast internet for $125 a month? And you have to pay Comcast on top of that.

I didn’t know Renaissance was offering incentives like offering to pay your existing mortgage for a year. Oh man. I looked at their model home but didn’t really talk about price. It’s out of my price range.

Being in bankruptcy protection gives them a lot of breathing room to sell those homes little by little. Unlike DR Horton who had pretty much a fire sale last month.

David

]]> By: dj http://www.move2westlinn.com/2009/10/19/west-linn-real-estate-market-activity-october-12-18-2009/comment-page-1/#comment-815 dj Wed, 21 Oct 2009 19:32:16 +0000 http://www.move2westlinn.com/?p=1037#comment-815 I forgot to mention in my earlier post that at $520K the Renaissance home on 2739 Ridge Ln most likely went for around $154/sqft instead of $200/sqft listed above. While such tactics attempt to preserve the "cachet" of the neighborhood, keep existing homeowners happy and reinforce the exclusivity of Renaissance homes, it's a bummer for the new owners because the property tax assessments will be based on this higher sales price, in this particular case, $150K higher than it should be. Regardless of pricing, the home itself is very nice and very well appointed, true to Renaissance's reputation for building higher-end homes. I forgot to mention in my earlier post that at $520K the Renaissance home on 2739 Ridge Ln most likely went for around $154/sqft instead of $200/sqft listed above. While such tactics attempt to preserve the “cachet” of the neighborhood, keep existing homeowners happy and reinforce the exclusivity of Renaissance homes, it’s a bummer for the new owners because the property tax assessments will be based on this higher sales price, in this particular case, $150K higher than it should be. Regardless of pricing, the home itself is very nice and very well appointed, true to Renaissance’s reputation for building higher-end homes.

]]> By: dj http://www.move2westlinn.com/2009/10/19/west-linn-real-estate-market-activity-october-12-18-2009/comment-page-1/#comment-814 dj Wed, 21 Oct 2009 06:07:19 +0000 http://www.move2westlinn.com/?p=1037#comment-814 David, you're absolutely right - 23012 Bland Circle definitely wins the "deal of the month" award. We saw the home and while it is spacious, it had quite an interesting floorplan given the steeply inclined slope it is built on. For one, the kitchen seemed quite small for a house of this size, but nevertheless at $112/sqft the new buyer cannot go wrong and over time should definitely be able to recoup their investment if not more. The other interesting home that sold this week is 2739 Ridge Ln. This is the new Renaissance development on Rosemont/Summit. I believe the numbers are a little misleading for this particular property. The home was last listed for $699K, a $130K haircut from the the original $829K asking price. Secondly, Renaissance was offering generous incentives to move the home, namely a very attractive 3.875% 30-yr fixed, help with closing costs, and an offer to pay your existing mortgage for up to 1 year if the offer was submitted without contingency. So, if you compare these incentives against a home without incentives, the actual sales price is really $595K, assuming 5% 30-yr fixed, and then on top of that, Renaissance refunds you about $75K at time of closing. So if you were to really look at it, the home actually sells for $520K, which falls within the limits of a conventional loan assuming 20% down. So, on paper it looks like a $675K sale, but in reality it's a $520K sale in the eyes of Renaissance and the buyer - over a $150K difference in the pricing. Whoever the buyer is got a good deal, and the Renaissance home in question is very, very nice. But the HOA fees are $125/month (ouch!) - however it does include pool access, internet access and common ground maintenance. But $125/mo ? I guess if you can afford a Renaissance home, you can afford another $125/mo HOA. David, you’re absolutely right – 23012 Bland Circle definitely wins the “deal of the month” award. We saw the home and while it is spacious, it had quite an interesting floorplan given the steeply inclined slope it is built on. For one, the kitchen seemed quite small for a house of this size, but nevertheless at $112/sqft the new buyer cannot go wrong and over time should definitely be able to recoup their investment if not more. The other interesting home that sold this week is 2739 Ridge Ln. This is the new Renaissance development on Rosemont/Summit. I believe the numbers are a little misleading for this particular property. The home was last listed for $699K, a $130K haircut from the the original $829K asking price. Secondly, Renaissance was offering generous incentives to move the home, namely a very attractive 3.875% 30-yr fixed, help with closing costs, and an offer to pay your existing mortgage for up to 1 year if the offer was submitted without contingency. So, if you compare these incentives against a home without incentives, the actual sales price is really $595K, assuming 5% 30-yr fixed, and then on top of that, Renaissance refunds you about $75K at time of closing. So if you were to really look at it, the home actually sells for $520K, which falls within the limits of a conventional loan assuming 20% down. So, on paper it looks like a $675K sale, but in reality it’s a $520K sale in the eyes of Renaissance and the buyer – over a $150K difference in the pricing. Whoever the buyer is got a good deal, and the Renaissance home in question is very, very nice. But the HOA fees are $125/month (ouch!) – however it does include pool access, internet access and common ground maintenance. But $125/mo ? I guess if you can afford a Renaissance home, you can afford another $125/mo HOA.

]]> By: David http://www.move2westlinn.com/2009/10/19/west-linn-real-estate-market-activity-october-12-18-2009/comment-page-1/#comment-813 David Tue, 20 Oct 2009 05:40:36 +0000 http://www.move2westlinn.com/?p=1037#comment-813 Thank you Ron for the weekly update. 23012 S BLAND CIR is our shocker of the month. We talked about that one before when it went into PENDING. Jody confirmed that it's a REO. The bank took it back on 4/2/2009 for 657K. And now it's sold for 473K. The bank lost 180K on that deal. And if we add the commission and interest it's probably a 200K loss. It is West Linn's DEAL OF THE MONTH at $112 a square foot for a house built in 2002! That's lower than replacement cost. According to CMAP, the house across the street at 1950 ALPINE was purchased for 630K at the end of 2008. They just saw their equity evaporate right before their eyes. Oh man. There are quite a few houses in that neighborhood for sale. This transaction will set a new lower bar for everybody. -David Thank you Ron for the weekly update. 23012 S BLAND CIR is our shocker of the month. We talked about that one before when it went into PENDING. Jody confirmed that it’s a REO. The bank took it back on 4/2/2009 for 657K. And now it’s sold for 473K. The bank lost 180K on that deal. And if we add the commission and interest it’s probably a 200K loss.

It is West Linn’s DEAL OF THE MONTH at $112 a square foot for a house built in 2002! That’s lower than replacement cost.

According to CMAP, the house across the street at 1950 ALPINE was purchased for 630K at the end of 2008. They just saw their equity evaporate right before their eyes. Oh man. There are quite a few houses in that neighborhood for sale. This transaction will set a new lower bar for everybody.

-David

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