Monday, December 13, 2010
Condo investors: do your due diligence
Did you know that some condominiums have restrictions regarding the rental of units in the complex? Many lenders require a minimum owner-occupancy and many condominiums have rules limiting the number of rental units allowed. Some require that the owner live in the property for a specified period before the property is rented. Move in and move out fees may also be imposed and finally, there may be leasing and application requirements imposed by the homeowners’ association. Before you invest in a condominium as a rental, make sure you and your agent do their due diligence.
Saturday, December 4, 2010
Earning my Accredited Staging Professional designation
I am proud to announce that I have recently earned my Accredited Staging Professional designation. This means that I am able to give my sellers even more value as I help them identify ways to improve the staging of their home as they prepare their home for market. Did you know that 96.4% of ASP staged homes sell on average in 33 days or less? According to Barb Schwarz, my instructor and the creator of home staging, "The Investment IN ASP Staging Your Home will Always be Less than a Price Reduction ON Your Home!"
Now that I am an Accredited Staging Professional I am able to identify key areas of a home that can be improved by staging, often with little to no financial investment. As a class project, I was part of a team of ASP students who staged a $1.6M home on Mercer Island. When I first entered the home, I was disappointed because the home was beautiful and did not appear to need much help from us. However, after we were divided into teams and assigned rooms to work on, the magic began. We removed clutter, shifted furniture from room to room, added color and vignettes in key locations. After a few hours, the transformation was astounding. With no financial investment, other than our donated labor, the home was increased in value before our eyes. The home appeared more spacious, more welcoming, and more valuable. Our instructor estimated the cost for this transformation would have been approximately $2,000. What was the increase in value? The Realtors present estimated a minimum increase in value of $30K. Do you think staging could help you sell your home? Give me a call and let's talk!
Now that I am an Accredited Staging Professional I am able to identify key areas of a home that can be improved by staging, often with little to no financial investment. As a class project, I was part of a team of ASP students who staged a $1.6M home on Mercer Island. When I first entered the home, I was disappointed because the home was beautiful and did not appear to need much help from us. However, after we were divided into teams and assigned rooms to work on, the magic began. We removed clutter, shifted furniture from room to room, added color and vignettes in key locations. After a few hours, the transformation was astounding. With no financial investment, other than our donated labor, the home was increased in value before our eyes. The home appeared more spacious, more welcoming, and more valuable. Our instructor estimated the cost for this transformation would have been approximately $2,000. What was the increase in value? The Realtors present estimated a minimum increase in value of $30K. Do you think staging could help you sell your home? Give me a call and let's talk!
Sunday, November 21, 2010
Statutory vs. Special Warranty or Bargain and Sale Deed - What's the difference?
When it comes time in the course of the transaction to transfer title from seller to buyer, a deed is normally required. In a standard Purchase and Sale agreement, a Statutory Warranty Deed is the document most often requested to convey title from seller to buyer. With a Statutory Warranty Deed, the seller expressly guarantees the grantor's good, clear title, and often carries the covenants concerning quality such as quiet enjoyment, the right to convey, freedom from encumbrances, and defense of title from all claims. Our "Form 21," which is our Residential Real Estate Purchase and Sale Agreement, has a section called " The Condition of Title", which calls for title to be transferred via a Statutory Warranty Deed.
Other deeds that are used in special circumstances include Special Warranty Deed, where the grantor covenants to defend title against only those claims and demands of the grantor and those under the grantor (seller) and is often used by someone who is appointed to act on behalf of the true owner, such as a Personal Representative for an estate or other duly appointed person. The specific language of this type of deed is contained in Limited Practice Board form 16-09.
If you receive a bargain and sale deed [LPB 15-05], you are typically buying land without knowing if there are any encumbrances on it, unless stated in the deed. The grantor only guarantees that they have title, and does not guarantee that the title is free of defects. This type of deed is generally used by a bank, tax or government authority, or Personal Representative who did not occupy the land and does not know of any encumbrances.
This article is presented as a service for your benefit, with the help of my husband, David Hunnicutt, MAI, JD, real estate appraiser and attorney at law. Should you have further questions please consult with independent counsel of an attorney of your choice.
Other deeds that are used in special circumstances include Special Warranty Deed, where the grantor covenants to defend title against only those claims and demands of the grantor and those under the grantor (seller) and is often used by someone who is appointed to act on behalf of the true owner, such as a Personal Representative for an estate or other duly appointed person. The specific language of this type of deed is contained in Limited Practice Board form 16-09.
If you receive a bargain and sale deed [LPB 15-05], you are typically buying land without knowing if there are any encumbrances on it, unless stated in the deed. The grantor only guarantees that they have title, and does not guarantee that the title is free of defects. This type of deed is generally used by a bank, tax or government authority, or Personal Representative who did not occupy the land and does not know of any encumbrances.
This article is presented as a service for your benefit, with the help of my husband, David Hunnicutt, MAI, JD, real estate appraiser and attorney at law. Should you have further questions please consult with independent counsel of an attorney of your choice.
Saturday, November 20, 2010
2010 NAR Home Buyer and Home Seller Highlights
Recently released, the National Association of Realtors recently released a buyer and sellers survey. NAR 2010 President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said the pattern of home buyers taking a long-term view has solidified over the past few years. “This underscores two simple facts—home ownership encourages stability, and the longer you own, the better your investment.” Some highlights from this extensive survey include these interesting facts:
Sellers had been in previous home 8 years, up from 7 in 2009.
First time buyers say they intend to stay in their home for 10 years.
Repeat buyers say they intend to stay in their home 15 years.
(These first three stats indicate buyers are looking at homeownership as long term investment)
Even with recent declines, a seller who bought a median home 8 years ago has still gained 24% in equity.
A seller who bought a median home 11‐15 years ago have gained 40% in equity.
During the “boom” (2006), 30% of all homeowners had owned for 3 years or less. In 2010, its 11%.
The number of 1st time buyers has reached an all‐time high at 50% of all sales., up from 49% in 2009.
Previous to that, the high for 1st time buyers was 1991. (44%)
The median 1st time home buyer is 30 years old. 95% chose a fixed rate mortgage.
Since the 1990’s, 20% of home buyers are single women. Single men accounted for 12% in 2010, an all
time high. Married couples account for 58% of the market.
The typical repeat buyer is 49 years old.
Buyers typically looked at 12 homes over 12 weeks before buying.
Market time for homes purchased dropped from 10 weeks to 8 weeks.
89% of all buyers used the internet to search. 88% used real estate agents.
Of all repeat buyers, about half traded up to a larger home, a quarter traded down to a smaller home
and a quarter stayed about the same.
Most utilized real estate site; Realtor.com, followed by company websites (CB, ReMax, etc.), followed by
real estate websites (Zillow, Trulia, etc.)
For Sale By Owner's (FSBO’s) not selling to a family member dropped to an all‐time low…just 5% of the market (1/2 of what it
was in 2004).
FSBO sellers have a median income of $64,000. Professionally assisted sellers $93,200.
FSBO sellers tend to be in rural areas, so their median price is just $140,000 vs. $190,000.
Sellers had been in previous home 8 years, up from 7 in 2009.
First time buyers say they intend to stay in their home for 10 years.
Repeat buyers say they intend to stay in their home 15 years.
(These first three stats indicate buyers are looking at homeownership as long term investment)
Even with recent declines, a seller who bought a median home 8 years ago has still gained 24% in equity.
A seller who bought a median home 11‐15 years ago have gained 40% in equity.
During the “boom” (2006), 30% of all homeowners had owned for 3 years or less. In 2010, its 11%.
The number of 1st time buyers has reached an all‐time high at 50% of all sales., up from 49% in 2009.
Previous to that, the high for 1st time buyers was 1991. (44%)
The median 1st time home buyer is 30 years old. 95% chose a fixed rate mortgage.
Since the 1990’s, 20% of home buyers are single women. Single men accounted for 12% in 2010, an all
time high. Married couples account for 58% of the market.
The typical repeat buyer is 49 years old.
Buyers typically looked at 12 homes over 12 weeks before buying.
Market time for homes purchased dropped from 10 weeks to 8 weeks.
89% of all buyers used the internet to search. 88% used real estate agents.
Of all repeat buyers, about half traded up to a larger home, a quarter traded down to a smaller home
and a quarter stayed about the same.
Most utilized real estate site; Realtor.com, followed by company websites (CB, ReMax, etc.), followed by
real estate websites (Zillow, Trulia, etc.)
For Sale By Owner's (FSBO’s) not selling to a family member dropped to an all‐time low…just 5% of the market (1/2 of what it
was in 2004).
FSBO sellers have a median income of $64,000. Professionally assisted sellers $93,200.
FSBO sellers tend to be in rural areas, so their median price is just $140,000 vs. $190,000.
Thursday, November 18, 2010
"Show me the short sales....I want a good deal!"
I have had a number of potential buyers come to me recently and ask for me to show them short sales. When I ask them what they are looking for, they generally say, "a great deal." Sometimes they have stories of friends who got some fantastic deal on a short sale. I then proceed to tell them there are great deals with homes that are not in the short sale process and could we consider them as well? I then explain that sellers of non-distressed homes are impacted by the pricing of short sales and foreclosures and have often lowered their price to compete with homes in their neighborhood that may be distressed. I further explain that short sales are not for the faint of heart. While most say they are patient people, without fail, every buyer I've worked with in a short sale has been frustrated with the process. A buyer can write an offer for more than list price and still not hear for months from the bank whether or not they will accept the offer. Why is that? It is in fact the Realtor, not the bank that puts the list price on a home. After an offer has been secured, the bank will look at the offer which is likely well below what they are owed, order a BPO (broker price opinion which is a market analysis), then process the offer. Each investor on the loan requests different information, so while one deal can sail through in a month, others can take typically up to 9 months and recently I heard of one that took over 2 years!
What often happens in short sales is that buyers lose hope, give up and walk away to find another home. In fact, one lender told me it takes 2 to 3 buyers to close a short sale, largely because the buyers walk away. Often buyers walk away just weeks before a decision is made on an offer. Then the Realtor puts the home back on the market and tries to secure another offer, hopefully one that will "stick." The short sale process is not for someone who needs to be in a home by a certain date and is ideal for someone renting month to month or even a person who is living with someone without a lease. I had one recent college grad who lived with his parents purchase a short sale listing. It was the perfect scenario in that it did not matter when he moved and his patience paid off with a really great deal.
I've had questions from buyers on the list price of short sales. They seem to be such a great deal, and often sell for more than asking price. Why is that? A Realtor is working against the clock trying to bring the bank an offer before the home goes into foreclosure. If that happens, the home comes off the market, a new agent is assigned, and all deals that were written during the short sale time period go into the waste basket. The price on a short sale must be competitive and often are a bit below market value. When buyers come to me and ask what they should offer on a short sale, I'll do a market analysis which often leads me to say, "If you bought this home for sticker price, you'd be getting a great deal." But other agents are telling their buyers the same thing, so as with all negotiations, the best offer wins. It is unfortunate when working with a buyer who feels he can't pay full price for psychological reasons....they are not likely to have their offer accepted. Sometimes when a buyer puts in a full price offer, the bank will counter with a higher number. This surprises some buyers, but shouldn't. Remember, it is the Realtor, not the bank, who puts a list price on the short sale. They are fishing for offers and want to get as many as possible in a short period of time to keep the home from going into foreclosure. So if you make an offer on a short sale and the bank counters with a higher number, do not be surprised. The bank is trying to recoup as much money as possible, because they are taking a loss in a short sale.
If you have time and don't mind a test of your patience, consider looking at short sales, but please, not to the exclusion of other non-distressed sales or even foreclosures on the market. There are great deals to be had in every type of sale.
What often happens in short sales is that buyers lose hope, give up and walk away to find another home. In fact, one lender told me it takes 2 to 3 buyers to close a short sale, largely because the buyers walk away. Often buyers walk away just weeks before a decision is made on an offer. Then the Realtor puts the home back on the market and tries to secure another offer, hopefully one that will "stick." The short sale process is not for someone who needs to be in a home by a certain date and is ideal for someone renting month to month or even a person who is living with someone without a lease. I had one recent college grad who lived with his parents purchase a short sale listing. It was the perfect scenario in that it did not matter when he moved and his patience paid off with a really great deal.
I've had questions from buyers on the list price of short sales. They seem to be such a great deal, and often sell for more than asking price. Why is that? A Realtor is working against the clock trying to bring the bank an offer before the home goes into foreclosure. If that happens, the home comes off the market, a new agent is assigned, and all deals that were written during the short sale time period go into the waste basket. The price on a short sale must be competitive and often are a bit below market value. When buyers come to me and ask what they should offer on a short sale, I'll do a market analysis which often leads me to say, "If you bought this home for sticker price, you'd be getting a great deal." But other agents are telling their buyers the same thing, so as with all negotiations, the best offer wins. It is unfortunate when working with a buyer who feels he can't pay full price for psychological reasons....they are not likely to have their offer accepted. Sometimes when a buyer puts in a full price offer, the bank will counter with a higher number. This surprises some buyers, but shouldn't. Remember, it is the Realtor, not the bank, who puts a list price on the short sale. They are fishing for offers and want to get as many as possible in a short period of time to keep the home from going into foreclosure. So if you make an offer on a short sale and the bank counters with a higher number, do not be surprised. The bank is trying to recoup as much money as possible, because they are taking a loss in a short sale.
If you have time and don't mind a test of your patience, consider looking at short sales, but please, not to the exclusion of other non-distressed sales or even foreclosures on the market. There are great deals to be had in every type of sale.
Monday, November 15, 2010
Home Prices Stay Flat While Mortgage Rates Dip Again
The National Association of Realtors (NAR) reported that home prices stayed essentially flat in the third quarter compared to the same time frame a year ago. This price stabilization is encouraging, given that sales of existing homes in the period did drop compared to both the prior quarter this year and to the same quarter a year ago. Of course, both those time periods saw buyers rushing in to take advantage of the federal tax credits.
On the mortgage front, national average mortgage rates dipped again according to Freddie Mac's weekly survey. This was considered by most experts to be the result of the Federal Reserve's recent announcement of their second round of "quantitative easing," dubbed "QE2." This is the plan in which the Fed will buy up to $600 billion in Treasuries from now till the end of June next year. Not surprisingly, mortgage applications spiked up 5.8% for the week for both purchase and refinance loans, according to the Mortgage Bankers Association.
On the mortgage front, national average mortgage rates dipped again according to Freddie Mac's weekly survey. This was considered by most experts to be the result of the Federal Reserve's recent announcement of their second round of "quantitative easing," dubbed "QE2." This is the plan in which the Fed will buy up to $600 billion in Treasuries from now till the end of June next year. Not surprisingly, mortgage applications spiked up 5.8% for the week for both purchase and refinance loans, according to the Mortgage Bankers Association.
Monday, November 1, 2010
Marital Status is a protected class in Washington State
Did you know that marital status is a protected class in Washington State? Marital status includes being single, married, separated, engaged, widowed and divorced. In the City of Seattle and unincorporated King County marital status includes cohabitating.
Tuesday, October 5, 2010
Designing Your Digital Plan
Today I am attending day 1 of 2 on "Designing Your Digital Plan." Today's 6 hour class is presented by Linda Aaron and Debra Trappen, top trainers with Coldwell Banker Bain in the Seattle area. This is the fourth cutting edge technology class I've attended in the past month. One reason I joined Coldwell Banker Bain Bellevue was their commitment to education; this has been instrumental in giving me an edge in this ever changing, competitive market.
Wednesday, September 22, 2010
Why is Seattle called the "Emerald City?"
Seattle is often referred to as the "Emerald City" because of the lush evergreen forests and the more than 6000 acres of parks within the city limits". Where did that nickname come from? From 1869 to 1982 Seattle was known as the "Queen City," but in the early 1980s, a contest was held to promote tourism and the name "Emerald City" was chosen. Seattle is also known as the "Evergreen State."
Thursday, August 26, 2010
J.D. Power Mortgage Servicer Satisfaction Rankings
According to Inman News, J.D. Power and Associates has learned that mortgage lenders do a better job originating loans than modifying them. When questioning 4516 homeowners about their personal experiences with loan modification, they evaluated 5 areas of service:
1. fees
2. billing and payment
3. escrow account administration
4. website
5. phone contact.
19 lenders were rated in the survey. Branch Banking and Trust Co. (BB&T) received the highest customer satisfaction score -- 795 on a 1,000-point scale. Six loan servicers scored below the industry average of 720, with Ocwen Loan Servicing landing at the bottom of the list with a 551 score. The top 4 mortgage servicers are: Bank of America, Wells Fargo, CitiMortgage, Inc. and J.P. Morgan Chase Bank. Note how these rank compared with other lenders.
J.D. Power Mortgage Servicer Satisfaction Rankings
1. Branch Banking and Trust (BB&T) (795)
2. Sun Trust Mortgage (767)
3. U.S. Bank (755)
4. Wells Fargo (744)
5. Fifth Third Mortgage (740)
6. Regions Mortgage (740)
7. PHH Mortgage (735)
8. MetLife Home Loans (731)
9. CitiMortgage Inc. (730)
10. Flagstar Bank (730)
11. GMAC (726)
12. HSBC Mortgage Corp. (726)
13. Chase (721)
14. PNC/National City Mortgage (716)
15. Bank of America (705)
16. Aurora Loan Services (647)
17. OneWest (619)
18. American Home Mortgage Servicing (617)
19. Ocwen Loan Servicing (551)
1. fees
2. billing and payment
3. escrow account administration
4. website
5. phone contact.
19 lenders were rated in the survey. Branch Banking and Trust Co. (BB&T) received the highest customer satisfaction score -- 795 on a 1,000-point scale. Six loan servicers scored below the industry average of 720, with Ocwen Loan Servicing landing at the bottom of the list with a 551 score. The top 4 mortgage servicers are: Bank of America, Wells Fargo, CitiMortgage, Inc. and J.P. Morgan Chase Bank. Note how these rank compared with other lenders.
J.D. Power Mortgage Servicer Satisfaction Rankings
1. Branch Banking and Trust (BB&T) (795)
2. Sun Trust Mortgage (767)
3. U.S. Bank (755)
4. Wells Fargo (744)
5. Fifth Third Mortgage (740)
6. Regions Mortgage (740)
7. PHH Mortgage (735)
8. MetLife Home Loans (731)
9. CitiMortgage Inc. (730)
10. Flagstar Bank (730)
11. GMAC (726)
12. HSBC Mortgage Corp. (726)
13. Chase (721)
14. PNC/National City Mortgage (716)
15. Bank of America (705)
16. Aurora Loan Services (647)
17. OneWest (619)
18. American Home Mortgage Servicing (617)
19. Ocwen Loan Servicing (551)
Tuesday, August 24, 2010
Your Home a Nest Egg?
Did you read the Seattle Times on August 23, 2010? Headline was “Your Home a Nest Egg? Not Likely Experts Say: The Future of Real Estate: Conventional wisdom: Prices will only keep up with inflation.” In the article, David Streitfeld from the New York Times notes that the real estate housing market has been hard hit but says that housing will recover….eventually. He goes on to say get used to the idea of home as shelter and not a nest egg, like it used to be. He quotes Stan Humphries, the chief economist for the real estate site, Zillow, saying housing values will merely keep up with inflation. I had to wonder: “is that a bad thing? Sure, like you, I want more, but how much is the inflation rate? I turned to Inflationdata.com and looked at a chart measuring the United State’s annual inflation by decade.
http://inflationdata.com/inflation/images/charts/Articles/Decade_inflation_chart.htm
The average over time turns out to be 3.42%. That’s not too bad. My current rate of return on my savings account at my local credit union is .153%. The best CD rates in town are under 1.5%. So if I have a nice place to live, can get a tax write off and have my home keep pace with inflation, that’s not such a bad thing. I’ll hope for more, but be glad knowing a home is still a good investment, even if the glory days of rapidly escalating home values are behind us. According to Coldwell Banker Bain Broker Ron Sparks, a home that keeps pace with inflation is by default a nest egg.
http://inflationdata.com/inflation/images/charts/Articles/Decade_inflation_chart.htm
The average over time turns out to be 3.42%. That’s not too bad. My current rate of return on my savings account at my local credit union is .153%. The best CD rates in town are under 1.5%. So if I have a nice place to live, can get a tax write off and have my home keep pace with inflation, that’s not such a bad thing. I’ll hope for more, but be glad knowing a home is still a good investment, even if the glory days of rapidly escalating home values are behind us. According to Coldwell Banker Bain Broker Ron Sparks, a home that keeps pace with inflation is by default a nest egg.
Wednesday, August 18, 2010
Teaching an old dog new tricks!
Spent the day at agentreboot Seattle.....what a great experience! Lots of immersion in new technology. I came home with a sheaf of notes. Now the trick: to implement what I've learned. One speaker said if you implement 10% of what you heard today, it would be a success. I'm already connecting with some new people and places on Twitter, looking for more tech groups to connect with on line and in person, and otherwise looking to expand my social media presence.
Wednesday, August 11, 2010
What’s your walk score?
Walk score is a number between 0 and 100 that measures the walkability of a neighborhood. The score measures how easy it is to get around without a car. Walk Score is determined with an algorithm that assigns points based on the distance to the closest amenity in each category. If a grocery store is less than .25 miles, it gets the maximum number of points. Points decline as the distance increases. No points are awarded if amenities are further than 1 mile.
Some interesting points from WalkScore.com:
1. Walkable neighborhoods offer surprising benefits to the environment, our health, our finances, and our communities.
2. Cars are a leading cause of climate change. Your feet do not contribute to pollution.
3. The average resident of a walkable neighborhood weighs 7 pounds less than someone who lives in a sprawling neighborhood.
4. One point of walk score is worth up to $3K of value for your property. To learn more go to:
http://blog.walkscore.com/wp-content/uploads/2009/08/WalkingTheWalk_CEOsforCities.pdf
5. Studies show that for every 10 minutes a person spends in a daily car commute, time spent in community activites falls by 10%.
In real estate, you may see a “walk score” included on line or on a flyer of a home listed for sale. Here’s a breakdown of what those scores mean.
Score Description
90–100 Walker's Paradise — Daily errands do not require a car.
70–89 Very Walkable — Most errands can be accomplished on foot.
50–69 Somewhat Walkable — Some amenities within walking distance.
25–49 Car-Dependent — A few amenities within walking distance.
0–24 Car-Dependent — Almost all errands require a car.
How does Seattle stack up against other cities in the United States? We're #6! Check out: http://www.walkscore.com/rankings/most-walkable-cities.php to see how other cities ranked.
Curious about your neighborhood walk score? Go to http://www.walkscore.com , type in your address and you’ll have your answer in an instant!
Some interesting points from WalkScore.com:
1. Walkable neighborhoods offer surprising benefits to the environment, our health, our finances, and our communities.
2. Cars are a leading cause of climate change. Your feet do not contribute to pollution.
3. The average resident of a walkable neighborhood weighs 7 pounds less than someone who lives in a sprawling neighborhood.
4. One point of walk score is worth up to $3K of value for your property. To learn more go to:
http://blog.walkscore.com/wp-content/uploads/2009/08/WalkingTheWalk_CEOsforCities.pdf
5. Studies show that for every 10 minutes a person spends in a daily car commute, time spent in community activites falls by 10%.
In real estate, you may see a “walk score” included on line or on a flyer of a home listed for sale. Here’s a breakdown of what those scores mean.
Score Description
90–100 Walker's Paradise — Daily errands do not require a car.
70–89 Very Walkable — Most errands can be accomplished on foot.
50–69 Somewhat Walkable — Some amenities within walking distance.
25–49 Car-Dependent — A few amenities within walking distance.
0–24 Car-Dependent — Almost all errands require a car.
How does Seattle stack up against other cities in the United States? We're #6! Check out: http://www.walkscore.com/rankings/most-walkable-cities.php to see how other cities ranked.
Curious about your neighborhood walk score? Go to http://www.walkscore.com , type in your address and you’ll have your answer in an instant!
Tuesday, July 20, 2010
Senior Citizen Tax Exemption
Did you know that effective 2005 forward,RCW 84.36.381 grants a Senior Citizen a
Property Tax Exemption if their:
• Annual income is $35,000 or less (certain expenses may be deducted)
AND
• 61 years of age or older
OR
• Retired due to physical disability
OR
• A widow or widower at least 57 years of age whose spouse had an
exemption at the time of death.
For more information, click on link below:
King County:
http://www.kingcounty.gov/Assessor/TaxpayerAssistance/TaxRelief.aspx
Snohomish County:
http://assessor.snoco.org/forms/exemptions.aspx
Property Tax Exemption if their:
• Annual income is $35,000 or less (certain expenses may be deducted)
AND
• 61 years of age or older
OR
• Retired due to physical disability
OR
• A widow or widower at least 57 years of age whose spouse had an
exemption at the time of death.
For more information, click on link below:
King County:
http://www.kingcounty.gov/Assessor/TaxpayerAssistance/TaxRelief.aspx
Snohomish County:
http://assessor.snoco.org/forms/exemptions.aspx
Monday, July 12, 2010
Bellevue, WA is voted in Top 10 Best Places to LIve in the USA for small cities
According to Money Magazine, Bellevue, WA is the 4th best small city in the nation in which to live. The magazine's 2010 study was released and notes these top ranked small cities boast plenty of jobs, great schools, safe streets, low crime, lots to do, charm, and other features that make a town great for raising a family. For those of us who live or work in Bellevue,we know first hand the beauty of mountains and city scapes combining with a low jobless rate, a diverse population, fantastic schools, arts and entertainment, and 74 parks make this a great place to call home. To learn more,go to:
http://money.cnn.com/magazines/moneymag/bplive/2010/index.html
http://money.cnn.com/magazines/moneymag/bplive/2010/index.html
Friday, July 2, 2010
Deep discounts on Seattle entertainment, activities, dining out and more!
Yes, it is a tough time to be in business with the economy such as it is. So area businesses are getting creative. You have likely discovered more coupons in your mail and newspaper, but have you tapped into the internet deals? There are all kinds of offers at half price or better in the greater Seattle area for everything from whale watching, wine tasting, golf lessons, white water rafting, rock climbing, spa treatments, comedy clubs, fine dining, Kooza/Cirque de Soleil and more! The following are a sampling of my favorite sites you may want to subscribe to. There is no cost to join and offers are sent daily to your in box or iphone. What a great way to shop for gifts…..the ideas come directly to you. Check these out and start saving big time!
Groupon: http://www.groupon.com/r/uu569860
Goldstar: https://www.goldstar.com
Yubit: https://www.yubit.com
Living Social: http://livingsocial.com
Tippr: http://tippr.com/seattle
Topix: http://www.topix.com/coupons/seattle
And a new site, Dealpop: http://www.dealpop.com
Groupon: http://www.groupon.com/r/uu569860
Goldstar: https://www.goldstar.com
Yubit: https://www.yubit.com
Living Social: http://livingsocial.com
Tippr: http://tippr.com/seattle
Topix: http://www.topix.com/coupons/seattle
And a new site, Dealpop: http://www.dealpop.com
Thursday, July 1, 2010
Closing Questions and Answers
GENERAL QUESTIONS
What is the difference between the signing date and the closing date?
The signing date is when the Buyer and Seller sign their final documents. This typically happens a few days prior to the closing date. The closing date is the day on which funding and recording take place.
Why does the escrow company sometimes call at the last minute to schedule the signing appointment?
In order to schedule the signing appointment, the escrow company must be in receipt of the lender's loan documents and have time to prepare the final closing documents for signing. When loan documents arrive just prior to the scheduled closing date, signing appointments must be set quickly to ensure that the transaction will close on time. Unfortunately, Escrow does not have any control over when they receive the lender's loan documents.
I sign documents on the closing date and still close that day?
Some lenders are "Table Funders" and do not need to review the signed documents prior to funding the loan. In this instance, it is possible to sign document the day of closing provided the signing is complete not later than 10:00 AM. This also requires that the Buyer's funds due to closed must be in the form of a wire rather than a cashier's check.
How much time will I need for the signing appointment?
A typical signing appointment will last 30 to 40 minutes for a Seller and upwards of 60 minutes for a Buyer. Appointment times vary depending upon the complexity of the transaction.
What should I do if I must be out of town during the transaction or prior to closing?
Notify your broker, loan officer, and escrow officer as far in advance as possible of your expected absence. Arrangements can be made to facilitate the closing either through a Power of Attorney or by overnight delivery of documents to you for signature. PLEASE NOTE THAT WHEN DOCUMENTS ARE SENT OVERNIGHT THIS WILL INVOLVE ADDITIONAL COSTS TO YOU, ADDITIONAL TIME, AS WELL AS THE REQUIREMENT THAT YOU LOCATE A NOTARY PUBLIC TO WITNESS YOUR SIGNATURES. Advance notice is the key as your absence may result in a delay in the closing date if not addressed early.
Who is responsible for paying the escrow fee?
The total escrow fee is split in one-half and paid equally by the Buyer and Seller unless otherwise stated in on the Purchase and Sale agreement, with the exception of a VA transaction in which the Seller is required to pay the full fee.
Whom should I call if I have questions?
Your Realtor will answer questions about the Purchase and Sale Agreement. Your Loan Officer will answer all questions about your loan status, the conditions of your loan and the loan process. The Escrow company will help you with questions about signing and closing.
What can I do to ensure our transaction closes on time?
Your can help enormously by promptly responding to requests for information. Buyers should keep in close contact with their Loan Officers to ensure their loan is being processed in a timely manner and all needed information has been provided. Additionally, when buying or selling a home it is best to plan on staying in town until the transaction closes as coordination of overnight document shipping can add additional costs to your transaction and may result in a delay in closing.
Why is Escrow needed?
To provide a central deposit point for documents and monies and to provide a neutral party to be sure that the transaction is closed according to standard procedures and the written instructions of the parties.
BUYER QUESTIONS
Can I write a personal check for my funds due to close?
No. Per Washington State Law, any funds required for closing must be in the form of "collected funds," such as a Bank Wire or Cashier's Check drawn on a Washington State bank. Funds must be deposited into an escrow trust account ONE day prior to your actual closing date in the form of a cashier's check, or received via wire transfer no later than the morning of the actual closing date.
Is there anything we should bring to the signing besides a cashier's check for funds due for closing?
We will be notarizing your documents therefore you will need to provide two forms of valid picture identification. A valid, unexpired driver's license is the first form preferred. Escrow also accepts active passports, voter's registration cards or other Government issued identification.
When does the escrow company need my money?
Closing funds in the form of a cashier's check payable to your escrow company must be to the escrow company by 3:00pm one day prior to the anticipated closing date to ensure same day bank deposit. Closing funds in the form of a wire transfer, can be received on the actual day of closing but no later than 11:00am in order to ensure adequate time to record the closing documents. In an effort to avoid closing delays, funds should be received one to two days prior to the closing date.
Whom do I get the keys from?
Washington State law states that the delivery of keys is a matter of possession, and therefore must be coordinated through your Real Estate Broker.
SELLER QUESTIONS
Why is my payoff so high? My last statement said my balance was less.
Typically your monthly statement only shows your principal balance. This is not a payoff balance. The payoff balance is equal to: current principal balance, plus daily accruing interest and any miscellaneous fees charged by the payoff lender - demand fees, fax fees, recording fees, etc. All payoff balances adjust daily due to a per diem (per day) interest accrual.
Should I stop making payments on my current loan?
No. Sellers should continue making regular payments on any existing loans. As part of the escrow process, Escrow Professionals of Washington will order updated written payoff statements to ensure the proper payoff balances are paid at closing.
When do I get my proceeds?
On the day of closing, when it has been confirmed that all funds are received and the transaction has recorded, your funds will be available. Typically, this does not occur until between 4pm and 5pm. If you choose to have your funds wired into your account, they will show in your account the next business day.
After we complete this sale, we're going to use our proceeds to purchase another home. Is there anything we can do to make the next purchase go smoothly?
The smoothest possible scenario is to have one escrow company complete the closing for both transactions. By having one company close both, they can immediately credit your sale proceeds to your new purchase.
What is the difference between the signing date and the closing date?
The signing date is when the Buyer and Seller sign their final documents. This typically happens a few days prior to the closing date. The closing date is the day on which funding and recording take place.
Why does the escrow company sometimes call at the last minute to schedule the signing appointment?
In order to schedule the signing appointment, the escrow company must be in receipt of the lender's loan documents and have time to prepare the final closing documents for signing. When loan documents arrive just prior to the scheduled closing date, signing appointments must be set quickly to ensure that the transaction will close on time. Unfortunately, Escrow does not have any control over when they receive the lender's loan documents.
I sign documents on the closing date and still close that day?
Some lenders are "Table Funders" and do not need to review the signed documents prior to funding the loan. In this instance, it is possible to sign document the day of closing provided the signing is complete not later than 10:00 AM. This also requires that the Buyer's funds due to closed must be in the form of a wire rather than a cashier's check.
How much time will I need for the signing appointment?
A typical signing appointment will last 30 to 40 minutes for a Seller and upwards of 60 minutes for a Buyer. Appointment times vary depending upon the complexity of the transaction.
What should I do if I must be out of town during the transaction or prior to closing?
Notify your broker, loan officer, and escrow officer as far in advance as possible of your expected absence. Arrangements can be made to facilitate the closing either through a Power of Attorney or by overnight delivery of documents to you for signature. PLEASE NOTE THAT WHEN DOCUMENTS ARE SENT OVERNIGHT THIS WILL INVOLVE ADDITIONAL COSTS TO YOU, ADDITIONAL TIME, AS WELL AS THE REQUIREMENT THAT YOU LOCATE A NOTARY PUBLIC TO WITNESS YOUR SIGNATURES. Advance notice is the key as your absence may result in a delay in the closing date if not addressed early.
Who is responsible for paying the escrow fee?
The total escrow fee is split in one-half and paid equally by the Buyer and Seller unless otherwise stated in on the Purchase and Sale agreement, with the exception of a VA transaction in which the Seller is required to pay the full fee.
Whom should I call if I have questions?
Your Realtor will answer questions about the Purchase and Sale Agreement. Your Loan Officer will answer all questions about your loan status, the conditions of your loan and the loan process. The Escrow company will help you with questions about signing and closing.
What can I do to ensure our transaction closes on time?
Your can help enormously by promptly responding to requests for information. Buyers should keep in close contact with their Loan Officers to ensure their loan is being processed in a timely manner and all needed information has been provided. Additionally, when buying or selling a home it is best to plan on staying in town until the transaction closes as coordination of overnight document shipping can add additional costs to your transaction and may result in a delay in closing.
Why is Escrow needed?
To provide a central deposit point for documents and monies and to provide a neutral party to be sure that the transaction is closed according to standard procedures and the written instructions of the parties.
BUYER QUESTIONS
Can I write a personal check for my funds due to close?
No. Per Washington State Law, any funds required for closing must be in the form of "collected funds," such as a Bank Wire or Cashier's Check drawn on a Washington State bank. Funds must be deposited into an escrow trust account ONE day prior to your actual closing date in the form of a cashier's check, or received via wire transfer no later than the morning of the actual closing date.
Is there anything we should bring to the signing besides a cashier's check for funds due for closing?
We will be notarizing your documents therefore you will need to provide two forms of valid picture identification. A valid, unexpired driver's license is the first form preferred. Escrow also accepts active passports, voter's registration cards or other Government issued identification.
When does the escrow company need my money?
Closing funds in the form of a cashier's check payable to your escrow company must be to the escrow company by 3:00pm one day prior to the anticipated closing date to ensure same day bank deposit. Closing funds in the form of a wire transfer, can be received on the actual day of closing but no later than 11:00am in order to ensure adequate time to record the closing documents. In an effort to avoid closing delays, funds should be received one to two days prior to the closing date.
Whom do I get the keys from?
Washington State law states that the delivery of keys is a matter of possession, and therefore must be coordinated through your Real Estate Broker.
SELLER QUESTIONS
Why is my payoff so high? My last statement said my balance was less.
Typically your monthly statement only shows your principal balance. This is not a payoff balance. The payoff balance is equal to: current principal balance, plus daily accruing interest and any miscellaneous fees charged by the payoff lender - demand fees, fax fees, recording fees, etc. All payoff balances adjust daily due to a per diem (per day) interest accrual.
Should I stop making payments on my current loan?
No. Sellers should continue making regular payments on any existing loans. As part of the escrow process, Escrow Professionals of Washington will order updated written payoff statements to ensure the proper payoff balances are paid at closing.
When do I get my proceeds?
On the day of closing, when it has been confirmed that all funds are received and the transaction has recorded, your funds will be available. Typically, this does not occur until between 4pm and 5pm. If you choose to have your funds wired into your account, they will show in your account the next business day.
After we complete this sale, we're going to use our proceeds to purchase another home. Is there anything we can do to make the next purchase go smoothly?
The smoothest possible scenario is to have one escrow company complete the closing for both transactions. By having one company close both, they can immediately credit your sale proceeds to your new purchase.
Wednesday, June 30, 2010
What is a 5 piece bath?
Many Realtors will advertise a bath as having 5 pieces. Ever wonder what constitutes a 5 piece bath?
A 5 piece bath consists of:
1. Bathtub
2. Separate shower
3. Toilet
4+5. Double sinks
A 5 piece bath consists of:
1. Bathtub
2. Separate shower
3. Toilet
4+5. Double sinks
Wednesday, June 9, 2010
What are mortgage points and when should you pay them?
Points are up-front fees paid to obtain a better interest rate on a loan. One point equals one percent of the loan amount. A lower interest rate may result in a lower monthly payment, but it is important to consider how long you intend to keep the loan, and to compare current rates to historical market trends.
If you take out a $300,000 mortgage and decide to pay one point, this translates into an up-front closing cost of $3,000. Paying a point up front saves $100 a month but it will take 30 months to recuperate the cost of that point. If you decide to refinance or sell the home before the 30-month mark, your money is lost. In this case, you would benefit financially by remaining in the home longer than the 30 months.
Rates run in cycles. When rates are at historical lows, it is sensible to pay points if you plan to live in the home for an extended period of time. It is unlikely that rates will go down; hence, there will be no need to refinance.
When rates are up, there is a strong likelihood that they will come down. This is no time to pay points. The chances of refinancing in the future are extremely high, and you will likely not be in the loan long enough to recuperate the cost of the points.
If you take out a $300,000 mortgage and decide to pay one point, this translates into an up-front closing cost of $3,000. Paying a point up front saves $100 a month but it will take 30 months to recuperate the cost of that point. If you decide to refinance or sell the home before the 30-month mark, your money is lost. In this case, you would benefit financially by remaining in the home longer than the 30 months.
Rates run in cycles. When rates are at historical lows, it is sensible to pay points if you plan to live in the home for an extended period of time. It is unlikely that rates will go down; hence, there will be no need to refinance.
When rates are up, there is a strong likelihood that they will come down. This is no time to pay points. The chances of refinancing in the future are extremely high, and you will likely not be in the loan long enough to recuperate the cost of the points.
Sunday, June 6, 2010
How to Improve Your Chances for an Offer
In this challenging economy, even the most beautiful homes may sit on the market. In order to improve your odds of procuring an offer, there are some things you can do:
1. Price it right. Set a price at the lower end of your property’s realistic price range or even 5% below "market price." We are still seeing multiple offers and bidding wars on those homes that are priced well.
2. Prepare for visitors. Get your house "market ready" at least two weeks before you begin showing it. The first weeks of a showing are the best time to market your home. Don't wait for the negative feedback before removing clutter, neutralizing colors or eliminating pet odors.
3. Be flexible about showings. It’s often disruptive to have a house ready to show at the spur of the moment. But the more amenable you can be about letting people see your home, the sooner you’ll find a buyer. My rule of thumb: have your home ready to be shown with 15 minutes notice. In case an out of town buyer drives past your sign, stops and wants to see your home before they board the plane that evening, you need to be ready. It happens more often than you can imagine that a seller tells a potential buyer to come back tomorrow, not realizing their housing decision must be made TODAY.
4. Anticipate the offers. Decide in advance what price and terms you’ll find acceptable. Call the movers and see how much notice they need. Investigate places to live should your home sell quickly. Remember, that is a good problem we should welcome.
5. Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, you should be prepared to lower your asking price. Our market is changing and you need to be flexible on pricing and change to stay current with the market. Review point 1 above.
1. Price it right. Set a price at the lower end of your property’s realistic price range or even 5% below "market price." We are still seeing multiple offers and bidding wars on those homes that are priced well.
2. Prepare for visitors. Get your house "market ready" at least two weeks before you begin showing it. The first weeks of a showing are the best time to market your home. Don't wait for the negative feedback before removing clutter, neutralizing colors or eliminating pet odors.
3. Be flexible about showings. It’s often disruptive to have a house ready to show at the spur of the moment. But the more amenable you can be about letting people see your home, the sooner you’ll find a buyer. My rule of thumb: have your home ready to be shown with 15 minutes notice. In case an out of town buyer drives past your sign, stops and wants to see your home before they board the plane that evening, you need to be ready. It happens more often than you can imagine that a seller tells a potential buyer to come back tomorrow, not realizing their housing decision must be made TODAY.
4. Anticipate the offers. Decide in advance what price and terms you’ll find acceptable. Call the movers and see how much notice they need. Investigate places to live should your home sell quickly. Remember, that is a good problem we should welcome.
5. Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, you should be prepared to lower your asking price. Our market is changing and you need to be flexible on pricing and change to stay current with the market. Review point 1 above.
Tuesday, May 25, 2010
What is a short sale?
A short sale is when a property is sold and nets less than what is owed to the lender. The bank not only takes less than what is actually owed to them, but may also pay the sellers costs to sell the property (excise taxes, escrow fees, title insurance and even the Realtor’s commission). Short sales occur when the market value of a property has dropped to less than the loan amount due on the property, or where the price the property can sell for plus the sellers closing costs exceeds any equity in the property. The seller would walk away with no proceeds in a short sale. In fact, banks often impose a deficiency judgment on the sellers who are required to pay back the funds owed above and beyond what they receive out of the proceeds of the sale. If they cannot agree to a deficiency judgment, the short sale will often not proceed. Furthermore, prior to considering engaging in a short sale, it is highly recommended that sellers consult with the lender as well as a competent tax advisor, as the short sale and loan forbearance may, depending on the type of loan involved, trigger unanticipated income tax consequences if the forgiveness is treated under federal or state tax laws as 'income' for that year.
Have you noticed that homes that are listed as a short sale are often priced lower than comparable homes in the neighborhood? Who is setting the price on these homes? While many buyers think the bank is setting the price, in fact, it is the listing agent. These Realtors have analyzed the market and selected what they believe will be a price to sell. If agents do not garner an offer within a few weeks, they will often lower the price since they must attempt to sell the home in a timely manner or the home goes into foreclosure and is taken off the market in preparation for that. The Realtor's goal is to get a number of offers in queue since in the greater Seattle area, up to 85% of short sales fail to close. Either the bank will not accept the offer the buyer makes (even if full price or over full price) or the buyer gets frustrated with the lack of response from the bank and walks away. It is typical for a short sale to take 9 months to process. By then, many buyers have found another home and moved on.
Have you noticed that homes that are listed as a short sale are often priced lower than comparable homes in the neighborhood? Who is setting the price on these homes? While many buyers think the bank is setting the price, in fact, it is the listing agent. These Realtors have analyzed the market and selected what they believe will be a price to sell. If agents do not garner an offer within a few weeks, they will often lower the price since they must attempt to sell the home in a timely manner or the home goes into foreclosure and is taken off the market in preparation for that. The Realtor's goal is to get a number of offers in queue since in the greater Seattle area, up to 85% of short sales fail to close. Either the bank will not accept the offer the buyer makes (even if full price or over full price) or the buyer gets frustrated with the lack of response from the bank and walks away. It is typical for a short sale to take 9 months to process. By then, many buyers have found another home and moved on.
Thursday, May 6, 2010
Why Pay Private Mortgage Insurance (PMI)?
Private Mortgage Insurance (PMI) is required by most lenders when a borrower puts less than 20% down on a purchase loan. Paid for by the borrower, PMI not only protects the lender from foreclosure, it also enables many buyers to qualify for loans and purchase real estate when they couldn't have otherwise. On January 1st, 2007, legislation went into effect making PMI tax deductible for new borrowers whose personal adjusted gross income is $100,000 or less. This has created additional opportunities for many buyers to finance a more expensive home or, in some cases, to obtain a lower monthly payment, while reducing annual income taxes.
An alternative financing option that borrowers may also consider involves taking out two home loans concurrently. The second loan, commonly referred to as a "piggyback loan", can take the form of a traditional home loan or a Home Equity Line of Credit (HELOC). It supplements the borrower's funds to help them achieve a 20% down payment, eliminating the need for PMI. However, in most cases PMI can be cancelled once the accumulated equity has reached 20% of the home's value, while a second home loan will have to be paid back in full regardless. Factor in the new PMI tax benefit, and a borrower's monthly payment may actually be lower with PMI versus a piggyback loan scenario.
If you need a recommendation for a lender who can help you with your finance options, let me know. I look forward to assisting you with all of your real estate needs.
An alternative financing option that borrowers may also consider involves taking out two home loans concurrently. The second loan, commonly referred to as a "piggyback loan", can take the form of a traditional home loan or a Home Equity Line of Credit (HELOC). It supplements the borrower's funds to help them achieve a 20% down payment, eliminating the need for PMI. However, in most cases PMI can be cancelled once the accumulated equity has reached 20% of the home's value, while a second home loan will have to be paid back in full regardless. Factor in the new PMI tax benefit, and a borrower's monthly payment may actually be lower with PMI versus a piggyback loan scenario.
If you need a recommendation for a lender who can help you with your finance options, let me know. I look forward to assisting you with all of your real estate needs.
Thursday, April 22, 2010
Waiting to Buy a Home When Interest Rates are Rising Can Cost You
A recent New York Times article explained why mortgage interest rates are headed up. For specifics, check out:
http://www.nytimes.com/2010/04/11/business/economy/11rates.html?scp=1&sq=interest%20rates%20have%20no%20&st=cse
Since interest rates are near an all-time low and beginning to inch upwards, waiting to buy a home could cost you more than you might think.
FACT: Each .4% increase in mortgage interest results in roughly $25,000 less in purchasing power.
Look at the differences among purchase price versus interest rates:
If you choose a 30 year mortgage and put down 20%, the 80% loan, principal and interest payments are as follows:
$600,000 sales price, at 7.0% interest, payment is $3193.45
$625,000 sales price, at 6.6% interest, payment is $3193.29
$650,000 sales price, at 6.2% interest, payment is $3184.84
$675,000 sales price, at 5.8% interest, payment is $3168.47
$700,000 sales price, at 5.4% interest, payment is $3144.57
$725,000 sales price, at 5.0% interest, payment is $3113.57
Payments are similar. However, the home you can afford to buy at 7 % is approximately $125,000 less than the home you can afford to buy at 5 %. If you wait to purchase a home, higher interest rates may mean you will be able to buy less home in the future than you can afford right now. A wise strategy: talk to your lender and Realtor. Weigh all the pros and cons of real estate ownership; then make a well-informed decision.
http://www.nytimes.com/2010/04/11/business/economy/11rates.html?scp=1&sq=interest%20rates%20have%20no%20&st=cse
Since interest rates are near an all-time low and beginning to inch upwards, waiting to buy a home could cost you more than you might think.
FACT: Each .4% increase in mortgage interest results in roughly $25,000 less in purchasing power.
Look at the differences among purchase price versus interest rates:
If you choose a 30 year mortgage and put down 20%, the 80% loan, principal and interest payments are as follows:
$600,000 sales price, at 7.0% interest, payment is $3193.45
$625,000 sales price, at 6.6% interest, payment is $3193.29
$650,000 sales price, at 6.2% interest, payment is $3184.84
$675,000 sales price, at 5.8% interest, payment is $3168.47
$700,000 sales price, at 5.4% interest, payment is $3144.57
$725,000 sales price, at 5.0% interest, payment is $3113.57
Payments are similar. However, the home you can afford to buy at 7 % is approximately $125,000 less than the home you can afford to buy at 5 %. If you wait to purchase a home, higher interest rates may mean you will be able to buy less home in the future than you can afford right now. A wise strategy: talk to your lender and Realtor. Weigh all the pros and cons of real estate ownership; then make a well-informed decision.
Tuesday, April 20, 2010
Why sign a Buyer's Agency Agreement?
What is an agency agreement? In the state of Washington, we Realtors are required to disclose who we are working for when we buy or sell a property. If we do not have a Buyer's Agency agreement with a buyer, then it is implied that we are working for the seller. Why would that matter? When a Realtor signs a Buyer's Agency agreement with a client, they are pledging themselves to that buyer, saying "I work for you and your best interests." Information the buyer shares, such as financial history and resources, along with urgency for buying is then kept confidential. In addition, any information the Realtor learns about the seller or the seller's home is then freely shared with the client. Do you see how that would benefit you?
Let's say a buyer is working with a Realtor without an agency agreement. The Realtor is then working for the seller of the home and is going to do all they can to get the buyer to pay top dollar for the home. If an agency agreement is in place, that Realtor will be bound to work hard for the buyer. They will help the buyer find a home, and when they do, research the comparable homes that are for sale and also those that have recently sold to determine if the home is priced correctly. If the home is overpriced, they can advise their client how much they feel the home is really worth and negotiate a lower price.
In addition to the price consideration, there is the seller motivation. How long has the home been on the market? What is the reason the seller is moving? If the seller is very motivated to sell, a Realtor with a Buyer's Agency agreement will share that information and the reasons for the sale. Can you see where this would help in negotiations?
The Realtor with a Buyer Agency agreement is also motivated to educate their client on the local market. We watch trends in the marketplace, look at listings each day and are often finding great deals we want to pass on to our clients. We save the best deals for those clients we have a Buyer Agency agreement with. If they have committed themselves to working exclusively with us, it is our duty and pleasure to help our clients find a great value.
The Realtor working with a client who has signed an agency agreement can help that buyer save you time in looking for a home. We Realtors look at homes every day and know our service area well. When we look at homes together, we learn what features are most important to you. Then we refine the criteria on the search to eliminate homes that are not appealing to you. Can you see where that would benefit you?
The Buyer Agency agreement is really a "no brainer." There is no cost to the buyer to enlist the help of a Realtor in a Buyer Agency relationship and there are great benefits! The buyer gets a loyal Realtor whom they know is working exclusively for their best interests. The real benefit is in the time and money saved for the buyer. Who wouldn't appreciate that? Ask your Realtor about a Buyer Agency Agreement and don't hesitate to sign a contract.
Saturday, April 10, 2010
The Value of Home Inspections
Home Inspections are essential when purchasing a home. Take it from one who knows from personal experience. Years ago, when buying a home, I wanted to save money, so I bought a home "For Sale by Owner," and skipped the inspection. After all, the seller seemed like such a nice guy and the home looked good. Well, as they say, "things are seldom what they seem," and the very first night in the home, I woke to the pitter patter of raindrops falling on my bed! Upon closer inspection, it became clear that the previous owner had a problem with the roof and had tried to cover up the problem by putting a bucket in the attic! Unfortunately, the bucket had filled with water and was spilling over on to the ceiling, then on to my bed. Needless to say, this was a problem that could have been avoided had I hired an inspector.
An inspector identifies the need for repairs and uncovers builder oversights, as well as educating a buyer as to how they should maintain their new home. The inspection for an average sized home generally takes about 2-3 hours. It is best if the seller is not present, but the buyers and their Realtor should stay for the duration of the inspection.
Generally, an inspection covers the following areas: roof, attic and insulation, heating,cooling, plumbing and electrical systems, walls, ceilings, floors, windows and doors, foundation, basement and structural components. Fees for an inspection vary, depending on the size of the home, its age, and what type of inspection is ordered.
How can you find a qualified inspector? It would be my pleasure to provide you with a list of reputable home inspectors. A thorough inspection could save you unpleasant surprises after you move in. It can also save you money if you require the seller make repairs before purchasing the home.
An inspector identifies the need for repairs and uncovers builder oversights, as well as educating a buyer as to how they should maintain their new home. The inspection for an average sized home generally takes about 2-3 hours. It is best if the seller is not present, but the buyers and their Realtor should stay for the duration of the inspection.
Generally, an inspection covers the following areas: roof, attic and insulation, heating,cooling, plumbing and electrical systems, walls, ceilings, floors, windows and doors, foundation, basement and structural components. Fees for an inspection vary, depending on the size of the home, its age, and what type of inspection is ordered.
How can you find a qualified inspector? It would be my pleasure to provide you with a list of reputable home inspectors. A thorough inspection could save you unpleasant surprises after you move in. It can also save you money if you require the seller make repairs before purchasing the home.
How long will it last?
I am often asked by home buyers and sellers how long home components will last. Finally, I’ve found a study of life expectancy of home components put out by the National Association of Home Builders and the Bank of America Home Equity. While the life expectancies of the components of a home depends on the quality of installation and how the item is used and maintained, there are some averages that were calculated after polling manufacturers, trade associations and researchers. Here are some of the findings:
Air conditioning unit: 10-15 years
Appliances: gas range:15 years
Asphalt driveway:15-20 years
Carpet: 8-10 years
Decks: wood-20 years
Dehumidifier: 8 years
Dishwashers: 9 years
Dryer: 13 years
Faucets: 15
Freezer: 11 years
Furnace: 15-20 years
Garage door openers:10-15 years
Gutters: aluminum-30 years, copper - 100
Humidifier: 8 years
Kitchen sink: 50
Linoleum flooring: 25 years
Microwave: 9 years
Paint: 15 years
Pool: concrete shell - over 25 years, interior plaster and tile - 10-25 years
Refrigerators: 13 years
Roofing: asphalt shingles - 20 years, fiber cement shingles - 25 years, wood shakes-30 years.
Sprinklers & valves: 20 years
Vinyl flooring: 50 years
Water heater: gas or electric-10 years, tankless-more than 20
Whirlpool tub: 20-50 years, depending on use
Windows: aluminum-15-20 years, wood-30 years+
Wood flooring: 100 years or more
For more details on life expectancies of home components, go to "publications" and "NAHB Reports" at www.nahb.org.
Air conditioning unit: 10-15 years
Appliances: gas range:15 years
Asphalt driveway:15-20 years
Carpet: 8-10 years
Decks: wood-20 years
Dehumidifier: 8 years
Dishwashers: 9 years
Dryer: 13 years
Faucets: 15
Freezer: 11 years
Furnace: 15-20 years
Garage door openers:10-15 years
Gutters: aluminum-30 years, copper - 100
Humidifier: 8 years
Kitchen sink: 50
Linoleum flooring: 25 years
Microwave: 9 years
Paint: 15 years
Pool: concrete shell - over 25 years, interior plaster and tile - 10-25 years
Refrigerators: 13 years
Roofing: asphalt shingles - 20 years, fiber cement shingles - 25 years, wood shakes-30 years.
Sprinklers & valves: 20 years
Vinyl flooring: 50 years
Water heater: gas or electric-10 years, tankless-more than 20
Whirlpool tub: 20-50 years, depending on use
Windows: aluminum-15-20 years, wood-30 years+
Wood flooring: 100 years or more
For more details on life expectancies of home components, go to "publications" and "NAHB Reports" at www.nahb.org.
7 Things You Must Not Do Before Buying Your Next Home
When you finally find that perfect home and have an accepted offer in hand, it is easy to get excited about the future dwelling and forget a few caveats. If you are not careful, that wonderful deal you secured could easily fall apart. There are 7 potential deal breakers that could undo your home purchase. Here are 7 don'ts of mortgage funding:
1. Do not change your employment status.
2. Do not make any major purchases, ie, cars, furniture, home theater, vacations, etc.
3. Do not increase your credit card debt or miss any payments.
4. Do not change bank accounts or make undisclosed large deposits.
5. Do not apply for a credit card, co-sign a loan or make a credit inquiry.
6. Do not spend any money you have set aside for closing.
7. Do not delay in providing all paperwork asked for by your lender.
If you are careful to heed these warnings, you will be signing a hefty stack of documents at closing and enjoying your lovely new home in short order. If you do not, you could find that you no longer qualify for your loan, and therefore, cannot purchase your dream home. Being forewarned is being forearmed. Keep your credit in good order all the way through closing.
1. Do not change your employment status.
2. Do not make any major purchases, ie, cars, furniture, home theater, vacations, etc.
3. Do not increase your credit card debt or miss any payments.
4. Do not change bank accounts or make undisclosed large deposits.
5. Do not apply for a credit card, co-sign a loan or make a credit inquiry.
6. Do not spend any money you have set aside for closing.
7. Do not delay in providing all paperwork asked for by your lender.
If you are careful to heed these warnings, you will be signing a hefty stack of documents at closing and enjoying your lovely new home in short order. If you do not, you could find that you no longer qualify for your loan, and therefore, cannot purchase your dream home. Being forewarned is being forearmed. Keep your credit in good order all the way through closing.
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