I have been corresponding with Realtors across the country who are sounding off about Bank of America's requirement to present a pre-approval from Bank of America when you submit an offer on one of their foreclosed homes. Buyers and agents are not happy with this extra step when buyers already have a valid pre-approval in hand. Some agents have even said they will not show BoA listings because of this requirement. Why do you think BoA is doing this? Is it to try to force buyers to take their business to BoA? I don't think so.
Back in the day when "liar loans" were made, buyers who were not qualified to purchase homes were encouraged to look into creative financing. The result: they financed a home and many later lost that same home when the economy had it's downturn. People lost jobs, had a health crisis, divorced or discovered their interest rate was not fixed, as they thought, but carried an adjustable rate that had skyrocketed so the buyer could no longer afford their home. As a result, we faced a flood of short sales and foreclosures.
Lenders reacted by tightening up the requirements needed to qualify for a loan. Since BoA has had such huge losses from their bad loans, they are working hard to make sure more bad loans don't enter their pipeline. This new requirement to have a pre-approval from them when submitting an offer on one of their foreclosed homes is their way of scrutinizing a buyer right up front to determine if this loan will be a good financial risk for them. If not, they can move on to another buyer. This does not mean that the buyer cannot stick with their original lender. It just means another group of lenders will be looking over the buyer's financial information to make certain this will be a good loan.
The pendulum has swung from no-doc loans to lenders imposing multiple layers of investigation into buyers' finances. While it requires more time and effort, I think the requirement is fair and reasonable. I encourage my clients to comply and remind them they just may find a better rate with BoA, so why not go along? Hopefully all will go well and they will find themselves being approved by a second lender and ultimately purchasing and living in a home of their dreams.
Saturday, December 24, 2011
Friday, December 2, 2011
Who me? Sell during the holidays? Are you kidding?
No, actually I'm not! Selling during the last 2 months of the year can be a very strategic move. Often other listings will come off the market during this time, so you could end up being the fresh new listing the buyers have been waiting for. Supply is down and demand is often up during November and December as buyers try to find a new home before the end of the year. Often people who are relocating have a deadline to buy if they want to take advantage of their company's generous relocation assistance. I've met more than one buyer who is anxiously combing the listings looking for something new.
Besides the supply and demand aspect, there is also the fact that many sellers will decorate for the holidays and this "staging" makes your home look better than ever. Add some smells of cookies in the oven and some holiday music and buyers are picturing themselves in front of the fireplace with a mug of cocoa and a good book.
At the end of November I had the opportunity to list a lovely home for sale. I did an extensive market analysis and then noted how low the inventory was and priced the home accordingly. My open house on day two was swamped and on day three I had not one, but three buyers writing offers. The inspection is behind us and we are moving towards closing. I wish I could clone that home and the sellers. They listened to my suggestions to remove wallpaper, paint and stage. Viola...the home sold just as I said it would! The lucky buyers are so excited to be moving in and hope for a closing before the end of December. A new year in a new home...what could be nicer?
Besides the supply and demand aspect, there is also the fact that many sellers will decorate for the holidays and this "staging" makes your home look better than ever. Add some smells of cookies in the oven and some holiday music and buyers are picturing themselves in front of the fireplace with a mug of cocoa and a good book.
At the end of November I had the opportunity to list a lovely home for sale. I did an extensive market analysis and then noted how low the inventory was and priced the home accordingly. My open house on day two was swamped and on day three I had not one, but three buyers writing offers. The inspection is behind us and we are moving towards closing. I wish I could clone that home and the sellers. They listened to my suggestions to remove wallpaper, paint and stage. Viola...the home sold just as I said it would! The lucky buyers are so excited to be moving in and hope for a closing before the end of December. A new year in a new home...what could be nicer?
Tuesday, November 22, 2011
Thankful for our changing market!
Our market is changing! That's a good thing. When examining the market in 2008 and compare it to today's 2011 market, consider the following:
1. Mortgage rates were 6.75% in 2008 for a 30 year fixed rate mortgage. Now that same mortgage is going for 4.125% . The same payment that bought $500k then buys $669k now.
2. Does it seem like there are fewer homes with FOR SALE signs on them? That's because there are! On the Eastside, we had 3023 listings on the market. We now have 1957, which is about 1/3 fewer.
3. Pending sales are up. In 2008, there were 412 homes in queue to close. Today, we have 931, which is a 126% increase.
4. How about foreclosures? In 2008, we had 10,375 foreclosures. That is about 1 in every 264 homes going back to the bank. Today we have 2,684 which is 1 in 1,049.
Sure, we have a long way to go, but look how far we've come in 3 years. For this, we can all give thanks.
1. Mortgage rates were 6.75% in 2008 for a 30 year fixed rate mortgage. Now that same mortgage is going for 4.125% . The same payment that bought $500k then buys $669k now.
2. Does it seem like there are fewer homes with FOR SALE signs on them? That's because there are! On the Eastside, we had 3023 listings on the market. We now have 1957, which is about 1/3 fewer.
3. Pending sales are up. In 2008, there were 412 homes in queue to close. Today, we have 931, which is a 126% increase.
4. How about foreclosures? In 2008, we had 10,375 foreclosures. That is about 1 in every 264 homes going back to the bank. Today we have 2,684 which is 1 in 1,049.
Sure, we have a long way to go, but look how far we've come in 3 years. For this, we can all give thanks.
Tuesday, October 25, 2011
Earnest Money Reminders
The state of Washington has laws governing earnest money deposits. If earnest money is in the form of a peronal check, it requires 10 business days before being considered available funds. If the transaction close date is 10 days or less from deposit, then funds must be in the form of a wire or a cashier's check drawn by a Washington financial institution. An out-of-state cashier's check requires 10 business days before being cosidered available funds. Buyers, make sure your Realtor gives you a receipt of your earnest money deposit.
Wednesday, September 28, 2011
Seller's Closing Costs
When a homeowner decides it's time to move, they often talk to several Realtors to find out how much their home is worth. Agents will then prepare a market analysis, comparing your property to other similar homes in your area that are active, pending and sold within the last six months.
Another part of the equation when calculating how much they will garner from a sale are the closing costs. Closing costs are roughly equal to about 8-9% of the sales price in the state of Washington. So if you sell your home for $500,000, expect to pay out approximately $40,000 to $45,000. Your Realtor should provide a net proceeds sheet along with a market analysis so there are no surprises when you sell your home.
What goes into that 8-9% cost of selling? Buyers and sellers equally share the escrow fees, Realtor fees are generally 6% of this with half going to the listing agent and half to the selling agent, excise sales taxes must be collected, there is a title policy and document prep fees, as well as recording fees. The escrow company will prepare a HUD statement and list all the charges so you know exactly what the seller's obligations are.
Should you be considering selling your home, give me a call and I would gladly provide a complimentary comparative market analysis along with a net proceeds sheet. That way you will know roughly what you can expect to receive from the sale of your home.
Another part of the equation when calculating how much they will garner from a sale are the closing costs. Closing costs are roughly equal to about 8-9% of the sales price in the state of Washington. So if you sell your home for $500,000, expect to pay out approximately $40,000 to $45,000. Your Realtor should provide a net proceeds sheet along with a market analysis so there are no surprises when you sell your home.
What goes into that 8-9% cost of selling? Buyers and sellers equally share the escrow fees, Realtor fees are generally 6% of this with half going to the listing agent and half to the selling agent, excise sales taxes must be collected, there is a title policy and document prep fees, as well as recording fees. The escrow company will prepare a HUD statement and list all the charges so you know exactly what the seller's obligations are.
Should you be considering selling your home, give me a call and I would gladly provide a complimentary comparative market analysis along with a net proceeds sheet. That way you will know roughly what you can expect to receive from the sale of your home.
Saturday, September 17, 2011
Coldwell Banker Bain leads the way on the Eastside!
I'm so glad to be working for Coldwell Banker Bain in Bellevue! Once again, CB Bain Bellevue branch is leading the Eastside in the number of closed units and listings sold on Seattle's Eastside. In terms of volume, CB Bain Bellevue Way has closed $425 Million year to date. Our next closest competitor has closed less than $300 Million, which is more than 25% less volume. Our 130+ active Real Estate agents are leading the way in sales once again. Now why would you call any other branch on the Eastside to help you buy or sell real estate?
Wednesday, September 14, 2011
Tennants: No keys until you sign the inspection report!
Did you know that the Washington State Landlord/Tenant Act requires a written move in inspection report, signed by both parties if a deposit is collected? If there is not written inspection report, the landlord cannot withhold any portion of the deposit, even if there are significant damages to the property and owe back rent. Without a written report, it is impossible to prove that any damage did not happen before the tenant moves in. The law specifies a written report. Photos will not suffice.
Wednesday, September 7, 2011
The Unluckiest Number
I recently received a call from my clients who are looking to buy a home. They found the perfect home at an open house and wanted to put in an offer. I said I would be happy to write up the offer, but wanted to see the home again with them. They were very excited about the layout, location, etc. Mr. Buyer asked if I would get any information about the house for them and pass it on when we met the following night. I called the listing agent and asked a number of questions, among them, "why hasn't this home sold in 100 days if it's so nice?" Her answer surprised me. She said that the negative feedback she heard more than anything was regarding the house number. I asked why that was and she said, "It's 1414" to which I replied, "and that's a problem?" She said it wasn't to her, but in the Asian culture, the number 14 is considered the unluckiest number. Evidently, in Mandarin the number 14, when pronounced sounds like "want to die." In Cantonese, it sounds like "certainly die." Either way, the superstition carries a lot of weight in the Pacific Northwest. The number 4 is also considered unlucky for similar reasons....it is equated with the word death. For that reason, Nokia cell phones have no cell phone series beginning with a 4, buildings in East Asia often do not have a 4th floor (this is similar to the Western world's phobia of the number 13). In Hong Kong, some high rise buildings avoid any numbers with a 4 in them (ie, 4, 14, 24, 34, all the 40s, etc). There is even an official name for this aversion or fear of the number 4: tetraphobia.
In the end, my clients opted not to buy this beautiful home. They did not have a problem with the home or the address, but feared when they wanted to move in a few years, they might have a problem with resale.
In the end, my clients opted not to buy this beautiful home. They did not have a problem with the home or the address, but feared when they wanted to move in a few years, they might have a problem with resale.
Tuesday, August 30, 2011
425 poll ranks Kirkland as the best city on Seattle's Eastside!
Food and Dining, Health and Beauty, Business, Pets and Local Favorites....which are best on Seattle's Eastside? The annual poll has been taken and results are in for 425 Magazine . As a Kirkland resident, I was delighted to see that Kirkland was named "Best City" for 2011!
Kirkland has recently doubled it's population with the annexation. Now there are even more residents who will be enjoying the Lake Washington waterfront, popular shopping districts, wonderful art galleries, workplaces, a notable school district, dozens of fantastic parks and diverse and distinctive neighborhoods. So glad 425 recognized what so many of us knew from first hand experience: Kirkland is a great place to live, work and play!
Kirkland has recently doubled it's population with the annexation. Now there are even more residents who will be enjoying the Lake Washington waterfront, popular shopping districts, wonderful art galleries, workplaces, a notable school district, dozens of fantastic parks and diverse and distinctive neighborhoods. So glad 425 recognized what so many of us knew from first hand experience: Kirkland is a great place to live, work and play!
Saturday, August 6, 2011
Selling Like Hotcakes in Bellevue!
So with all this bad national economic news....here's a bright spot in our corner of the world: Bellevue housing listed between $500K and $950K is selling like hotcakes! The demand ratio is 1.21:1....or put another way, for the 40 homes currently listed in this price range, there are currently 33 in this same price range that are pending. Anything less that a 2.5 ratio in this price range is considered a seller's market.
Wednesday, July 27, 2011
Fun Facts About Washington State
Did you know:
1. The forests of the Olympic Peninsula are among the rainiest places in the world and the only rain forests in the continental United States.
2. Washington has the largest ferry system in the nation; 26 million passengers travel by ferry each year.
3. Washington state is the nation's largest exporter, representing 34 billion dollars and 5% of all US exports which includes forest products, aerospace products, apples, tulips, hops, mint, wheat and several other quality food products.
4. Washington State defines innovation. Some of the leading companies include Microsoft, Amazon, Nordstrom, Boeing, Costco and Starbucks.
5. Washington has hosted the World's Fair twice: 1962 in Seattle and 1974 in Spokane. The first revolving restaurant in the US was built for the Seattle World's Fair at the top of the Space Needle.
Washington is America’s coffee capital with more coffee bean roasters per capita than any other state.
6. “The Wave”, a popular fan cheer for the past 25 years, was started by Husky fans at the University of Washington.
7. The state is home to the world’s largest private car collection featuring over 3,000 vehicles.
8. Grand Coulee Dam, the largest concrete structure in North America, is located in Washington State.
9. Washington’s residents are educated with the most residents holding high school diplomas than any other state. Seattle leads the country in residents with more college degrees per capita.
10. The Boeing Plant, located in Everett, is the world’s largest building able to fit 74 football fields inside.
11. In Washington, a Seahawk is an athlete, not a bird. The closest thing to a seahawk is an osprey hawk.
12. Washington, the 42nd state in the union, is the only state named for a president.
13. Washington produces 70% of the nation’s hops used to brew beer.
14. With 37” annually, Seattle gets less rainfall than Atlanta, Boston, New York, Houston, Miami, New Orleans, Philadelphia, or Washington D.C.
15. Washington’s Hells Canyon is the deepest river gorge in North America, deeper than the Grand Canyon at over 5,500 feet deep.
16. Homegrown musicians include Jimi Hendrix, Nirvana, Kenny G, The Wailers, Pat Boone, Bing Crosby, Quincy Jones and American Idol runner up, Blake Lewis.
17. Petrified wood is the state’s gem. There is a petrified forest in the state that is considered the most unusual fossil forest in the world.
18. More people in Seattle commute to work on bicycles than any other city in the nation.
19. Far Side cartoonist Gary Larson is a Washington native.
20. The longest accessible beach in the U.S. is in Washington. The 28 mile long stretch is aptly named Long Beach.
21. Washington’s cows produce more milk per cow than any other state, totaling 1.3 billion pounds of milk each year.
22. The state’s nickname is the Evergreen State for its abundant evergreen forests.
23. The state is America’s raspberry capital harvesting more than 57 million pounds of raspberries each year.
24. Washington is the nation’s top apple producing state with 10-12 billion apples handpicked annually.
25. Seattle sells more sunglasses per capita than any major city in the nation.
1. The forests of the Olympic Peninsula are among the rainiest places in the world and the only rain forests in the continental United States.
2. Washington has the largest ferry system in the nation; 26 million passengers travel by ferry each year.
3. Washington state is the nation's largest exporter, representing 34 billion dollars and 5% of all US exports which includes forest products, aerospace products, apples, tulips, hops, mint, wheat and several other quality food products.
4. Washington State defines innovation. Some of the leading companies include Microsoft, Amazon, Nordstrom, Boeing, Costco and Starbucks.
5. Washington has hosted the World's Fair twice: 1962 in Seattle and 1974 in Spokane. The first revolving restaurant in the US was built for the Seattle World's Fair at the top of the Space Needle.
Washington is America’s coffee capital with more coffee bean roasters per capita than any other state.
6. “The Wave”, a popular fan cheer for the past 25 years, was started by Husky fans at the University of Washington.
7. The state is home to the world’s largest private car collection featuring over 3,000 vehicles.
8. Grand Coulee Dam, the largest concrete structure in North America, is located in Washington State.
9. Washington’s residents are educated with the most residents holding high school diplomas than any other state. Seattle leads the country in residents with more college degrees per capita.
10. The Boeing Plant, located in Everett, is the world’s largest building able to fit 74 football fields inside.
11. In Washington, a Seahawk is an athlete, not a bird. The closest thing to a seahawk is an osprey hawk.
12. Washington, the 42nd state in the union, is the only state named for a president.
13. Washington produces 70% of the nation’s hops used to brew beer.
14. With 37” annually, Seattle gets less rainfall than Atlanta, Boston, New York, Houston, Miami, New Orleans, Philadelphia, or Washington D.C.
15. Washington’s Hells Canyon is the deepest river gorge in North America, deeper than the Grand Canyon at over 5,500 feet deep.
16. Homegrown musicians include Jimi Hendrix, Nirvana, Kenny G, The Wailers, Pat Boone, Bing Crosby, Quincy Jones and American Idol runner up, Blake Lewis.
17. Petrified wood is the state’s gem. There is a petrified forest in the state that is considered the most unusual fossil forest in the world.
18. More people in Seattle commute to work on bicycles than any other city in the nation.
19. Far Side cartoonist Gary Larson is a Washington native.
20. The longest accessible beach in the U.S. is in Washington. The 28 mile long stretch is aptly named Long Beach.
21. Washington’s cows produce more milk per cow than any other state, totaling 1.3 billion pounds of milk each year.
22. The state’s nickname is the Evergreen State for its abundant evergreen forests.
23. The state is America’s raspberry capital harvesting more than 57 million pounds of raspberries each year.
24. Washington is the nation’s top apple producing state with 10-12 billion apples handpicked annually.
25. Seattle sells more sunglasses per capita than any major city in the nation.
Tenant Rights
Washington State Residential Landlord/Tenant Act provides great protection to tenants. In a lease/rental agreement, the rights of a tenant can be increased, but cannot be decreased. Whatever provision offers the greatest protection or benefit to the tenant will stand in court, whether it comes from the Landlord/Tenant Act, the Seattle Rental Ordinance or the terms of the lease. For example, if the lease calls for a 30 day notice to vacate and the Landlord/Tenant Act requires a 20 day notice, 30 days' notice will be required. If the Landlord/Tenant Act requires a 30 day notice to increase the rental rate and the lease specifies 20 days notice, the law would supersede the terms of the lease and 30 days' notice would be required.
Monday, July 25, 2011
"Hopeful and cautionary projections"
According to Ron Sparks, Managing Broker of Coldwell Banker Bain, Bellevue, we have the following informative report:
PMI, one of the nation’s largest insurers of home mortgages, recently released a report that contained both hopeful and cautionary projections for the national real estate market. Among the highlights:
Forecasts a 19% increase in 3rd quarter 2011 sales over 2010's 3rd quarter.
Forecasts a 14% increase in 2011 sales over 2010.
Prices increasing marginally by years end, then up 3% in 2012, and another 3% increase in 2013.
On the cautionary side is the anticipated rise of mortgage interest rates. PMI noted that current rates are near 2011 lows (4.66%), but predicted and increase to 5.65% in 2012, and 6.60% in 2013. This means that if homes with identical $400,000 mortgages are purchased, but one is bought at today’s rate (4.66%) and the other at the 2013 projected rate, (6.60%), then the home with the higher rate will cost nearly $30,000 more in payments over the first five years of ownership. A remarkable difference that should be considered when thinking about buying…
On a more local note, PMI reported that in Washington State “seriously delinquent mortgages”, the pre-cursor to the foreclosure process, have increased just 0.02% year over year. This would be highly contrary to the perception that Washington has a burgeoning foreclosure issue on the horizon.
As always, I appreciate Ron Sparks and his market perspective.
PMI, one of the nation’s largest insurers of home mortgages, recently released a report that contained both hopeful and cautionary projections for the national real estate market. Among the highlights:
Forecasts a 19% increase in 3rd quarter 2011 sales over 2010's 3rd quarter.
Forecasts a 14% increase in 2011 sales over 2010.
Prices increasing marginally by years end, then up 3% in 2012, and another 3% increase in 2013.
On the cautionary side is the anticipated rise of mortgage interest rates. PMI noted that current rates are near 2011 lows (4.66%), but predicted and increase to 5.65% in 2012, and 6.60% in 2013. This means that if homes with identical $400,000 mortgages are purchased, but one is bought at today’s rate (4.66%) and the other at the 2013 projected rate, (6.60%), then the home with the higher rate will cost nearly $30,000 more in payments over the first five years of ownership. A remarkable difference that should be considered when thinking about buying…
On a more local note, PMI reported that in Washington State “seriously delinquent mortgages”, the pre-cursor to the foreclosure process, have increased just 0.02% year over year. This would be highly contrary to the perception that Washington has a burgeoning foreclosure issue on the horizon.
As always, I appreciate Ron Sparks and his market perspective.
Tuesday, July 12, 2011
Record sales!
This just in....our Bellevue office just closed $50M in sales last week! It's been 17+ years since our office has sold this kind of volume. Slow market? Really!
Monday, May 23, 2011
What a Buyer needs to know about their Signing Appointment
It is a happy day when a buyer gets the call that all their closing documents are in order and they are asked to make an appointment to sign the documents. Signing occurs one or two days before the scheduled closing and is determined by when the loan documents are received from the lender Plan to be at the signing for about 45 minutes to an hour for a first mortgage and if there is a second involved, it may take up to an hour and a half. What should you bring? Buyers each need to bring two forms of identification and one must be a photo id such as a driver's license or passport. Also, buyers need to remember to bring a cashier's check written from a Washington state financial institution or have their funds wired, confirming the bank's wiring requirements well in advance of the actual closing date. Who will be at the signing? The escrow closing officer will explain all the documents to you and show you where to sign. Your Realtor may or may not attend your signing.
Wednesday, May 4, 2011
Property Taxes
April 30th has come and gone. Did you pay your property taxes? In King county, bills are mailed to homeowners only once a year on February 14 and that bill has both first and second half of year payment stubs included. The f First half of the year payment is due April 30 and the second half of the year is due October 31. Payments may be made by personal or business check, cash or credit card. Online payment service is available. If you pay by credit card, you will be charged a 2.35% processing fee. If you are late on your payment, interest will accrue at 1% per month on the unpaid balance. Extensions are not granted for hardship or any other reason, due to state law. It is always the taxpayer's responsibility to pay their taxes, so even if you have a mortgage company paying your taxes, you should visit the property tax website to ensure your taxes have been paid. You may not pay next year's taxes in advance, due to state law. http://payments.kingcounty.gov/metrokc.ecommerce.propertytaxweb/
There are senior and disabled property owners property-tax deductions available if your annual income does not exceed $35,000 and you own and reside in your home, including mobile homes. You must be at least 61 years old or if under 61, retired due to disability and unable to work.
You may get an exemption from taxes on the value of improvements if you add new rooms, decks, patios or other improvements if you apply for the exemption before construction is complete. For details, call the Department of Assessments at 206.296.7300.
If you disagree with your assessed value and feel a mistake has been made in valuing your property, you may contact the Department of Assessments and file a valuation appeal by contacting the King County Board of Equalization at 206.296.3496.
For more helpful information on paying property taxes in King County, check out: http://payments.kingcounty.gov/metrokc.ecommerce.propertytaxweb/
There are senior and disabled property owners property-tax deductions available if your annual income does not exceed $35,000 and you own and reside in your home, including mobile homes. You must be at least 61 years old or if under 61, retired due to disability and unable to work.
You may get an exemption from taxes on the value of improvements if you add new rooms, decks, patios or other improvements if you apply for the exemption before construction is complete. For details, call the Department of Assessments at 206.296.7300.
If you disagree with your assessed value and feel a mistake has been made in valuing your property, you may contact the Department of Assessments and file a valuation appeal by contacting the King County Board of Equalization at 206.296.3496.
For more helpful information on paying property taxes in King County, check out: http://payments.kingcounty.gov/metrokc.ecommerce.propertytaxweb/
Friday, April 8, 2011
Spring Construction Meeting a Real Need
Have you noticed? Everywhere you turn, there is a construction worker in a hardhat holding a sign to either slow you down or make you wait while workers repair roads, or build houses. Yes houses! Evidently builders have seen the light at the end of the tunnel and are breaking ground and building homes.
If you are keeping up with the Seattle Times, you know the rental market is red hot. Dupre + Scott Apartment Advisors showed us that the Puget Sound's vacancy rate has fallen from 7.2% in the fall of 2009 to 4.6% in our current market. When the apartments fill up, consumers start thinking now may be the time to buy, and they are right.
As mentioned in a previous blog, area employers are hiring in record numbers. I just learned that Microsoft Redmond needs to hire 3,000 more employees in the next 4 or 5 months. That's just for the Redmond complex! Of course, for every worker, we need a place to house them.
In our Bellevue Way office alone, one year ago in January/February, our office closed $67M in sales. This year in the same January/February period, we closed $94M. That's a 40% increase. 1 year ago January/February our average sale was $693K. This year? $782K. We have more evidence of a changing market and sellers may begin to call the shots.
Buyers take note: our market is becoming more competitive. Mortgage rates are still hovering around 5% for 30 year conventional fixed rate loan. If you are looking for a home, better look quick. Pendings on the Eastside continue to climb and outpace new listings as demand increases. You are likely going to see a lot more competition for the newly listed home your agent just emailed you. And if that home looks sharp and is priced right, it likely won't be on the market for long.
Incidentally, 4 years ago this month, April 2007 was the peak of our market. Prices have fallen to about 1/3 of that value, but with market demand increasing, buyers need to be aware we are in a transitional market. Home prices are likely to rise if the rules of supply and demand hold true.
Read more: http://www.seattlepi.com/local/article/Skittish-Seattle-area-residents-heat-up-apartment-1307247.php#ixzz1IzjqieNd
If you are keeping up with the Seattle Times, you know the rental market is red hot. Dupre + Scott Apartment Advisors showed us that the Puget Sound's vacancy rate has fallen from 7.2% in the fall of 2009 to 4.6% in our current market. When the apartments fill up, consumers start thinking now may be the time to buy, and they are right.
As mentioned in a previous blog, area employers are hiring in record numbers. I just learned that Microsoft Redmond needs to hire 3,000 more employees in the next 4 or 5 months. That's just for the Redmond complex! Of course, for every worker, we need a place to house them.
In our Bellevue Way office alone, one year ago in January/February, our office closed $67M in sales. This year in the same January/February period, we closed $94M. That's a 40% increase. 1 year ago January/February our average sale was $693K. This year? $782K. We have more evidence of a changing market and sellers may begin to call the shots.
Buyers take note: our market is becoming more competitive. Mortgage rates are still hovering around 5% for 30 year conventional fixed rate loan. If you are looking for a home, better look quick. Pendings on the Eastside continue to climb and outpace new listings as demand increases. You are likely going to see a lot more competition for the newly listed home your agent just emailed you. And if that home looks sharp and is priced right, it likely won't be on the market for long.
Incidentally, 4 years ago this month, April 2007 was the peak of our market. Prices have fallen to about 1/3 of that value, but with market demand increasing, buyers need to be aware we are in a transitional market. Home prices are likely to rise if the rules of supply and demand hold true.
Read more: http://www.seattlepi.com/local/article/Skittish-Seattle-area-residents-heat-up-apartment-1307247.php#ixzz1IzjqieNd
Monday, March 14, 2011
Inventory Needed on Seattle's Eastside!
I am amazed at the perceptions that buyers in the greater Seattle market have. While at an open house last weekend, I had over 100 buyers stream through the property. I engaged in conversation with as many visitors as I could, but it was quite a challenge. As soon as I said hello to one family, the door would open and another couple would come in. There were so many buyers looking for a new home and when I spoke with other agents in my office, they remarked that they had the same experience: the buyers have come out in force.
Interest rates have begun to creep up. That can stir buyers to act. In the past year, we have seen nearly a 1% rise in interest rates. This can translate into hundreds of dollars more per month on your mortgage payment. I've noticed that many buyers will focus on the list price of the home while ignoring the interest rates, but both need to be watched closely. Check out this link for more specifics on what rising interest rates can cost you: http://www.cbbain.com/Pages/SiteContent.aspx?PID=285
Besides rising interest rates, we have seen an influx of new buyers from other regions. Microsoft, Boeing, Amazon, Google, Starbucks, Nordstroms and more are rolling out the red carpet for talented new hires from all over the world....and they are showing up at open houses, pulling flyers from boxes and searching the internet looking for a home. As a result, we are seeing our inventory shrink. While the perception of buyers is that foreclosures are flooding the market and it's a buyers' market, the numbers I'm crunching tell me otherwise. We need more inventory!
Let me give you some statistics from Seattle's Eastside, which is my primary market. For this report, I am looking exclusively at single family residences. Did you know that in the last 7 days in Kirkland, where I live, there are 31 new listings and 46 homes went pending? In Bellevue, where I have my office, we had 31 new listings and 50 homes went pending. In the same 7 day period in Woodinville there were 10 new listings and 14 homes went pending. In Redmond, there are 26 new listings and 57 homes went pending. In Issaquah, 14 new listings and 15 new pendings. In Bothell, 12 new listings and 14 new pendings. Do you think our market may be changing? Do you see we have a need for more homes? This is a trend I see all over the Eastside.
According to Conway Pederson, publisher of The Puget Sound Economic Forecaster, the forecast is for about 30,000 net new jobs in 2011, meaning even without births, marriages and divorces, we will need another 15,000 housing units in 2011 (each net new job equals 1/2 a housing unit) That is on top of the 23,600 jobs our area added in 2010, and the 65,100 population growth in Washington.
How about new construction? That could help take care of some of this increase, but in 2010, only 14,000 new housing units were constructed. That means we were short about 12,000 housing units in 2010. Is it any surprise builders are moving in, buying up lots and beginning to build again? Would they be doing this if there wasn't a real need?
Next week I'll be back at my post, greeting all those who follow a sign to my open house. I'll smile, welcome them, hand them a flyer and discuss our changing market. I'll listen politely while some are sure to want to inform me that we have a glut of homes and it's a buyer's market.....but you and I both know better.
In conclusion: If you know of anyone who is thinking of selling their home on Seattle's Eastside, they couldn't pick a better time. Have them contact me at LaurenHunnicutt@cbbain.com and I will get their home sold!
Interest rates have begun to creep up. That can stir buyers to act. In the past year, we have seen nearly a 1% rise in interest rates. This can translate into hundreds of dollars more per month on your mortgage payment. I've noticed that many buyers will focus on the list price of the home while ignoring the interest rates, but both need to be watched closely. Check out this link for more specifics on what rising interest rates can cost you: http://www.cbbain.com/Pages/SiteContent.aspx?PID=285
Besides rising interest rates, we have seen an influx of new buyers from other regions. Microsoft, Boeing, Amazon, Google, Starbucks, Nordstroms and more are rolling out the red carpet for talented new hires from all over the world....and they are showing up at open houses, pulling flyers from boxes and searching the internet looking for a home. As a result, we are seeing our inventory shrink. While the perception of buyers is that foreclosures are flooding the market and it's a buyers' market, the numbers I'm crunching tell me otherwise. We need more inventory!
Let me give you some statistics from Seattle's Eastside, which is my primary market. For this report, I am looking exclusively at single family residences. Did you know that in the last 7 days in Kirkland, where I live, there are 31 new listings and 46 homes went pending? In Bellevue, where I have my office, we had 31 new listings and 50 homes went pending. In the same 7 day period in Woodinville there were 10 new listings and 14 homes went pending. In Redmond, there are 26 new listings and 57 homes went pending. In Issaquah, 14 new listings and 15 new pendings. In Bothell, 12 new listings and 14 new pendings. Do you think our market may be changing? Do you see we have a need for more homes? This is a trend I see all over the Eastside.
According to Conway Pederson, publisher of The Puget Sound Economic Forecaster, the forecast is for about 30,000 net new jobs in 2011, meaning even without births, marriages and divorces, we will need another 15,000 housing units in 2011 (each net new job equals 1/2 a housing unit) That is on top of the 23,600 jobs our area added in 2010, and the 65,100 population growth in Washington.
How about new construction? That could help take care of some of this increase, but in 2010, only 14,000 new housing units were constructed. That means we were short about 12,000 housing units in 2010. Is it any surprise builders are moving in, buying up lots and beginning to build again? Would they be doing this if there wasn't a real need?
Next week I'll be back at my post, greeting all those who follow a sign to my open house. I'll smile, welcome them, hand them a flyer and discuss our changing market. I'll listen politely while some are sure to want to inform me that we have a glut of homes and it's a buyer's market.....but you and I both know better.
In conclusion: If you know of anyone who is thinking of selling their home on Seattle's Eastside, they couldn't pick a better time. Have them contact me at LaurenHunnicutt@cbbain.com and I will get their home sold!
Monday, March 7, 2011
Confidentiality
When a buyer or seller works with an agent, they share personal information. As a licensed Realtor, I am bound to a code of ethics that requires me to hold my client's information in confidence. Confidential information includes personal financial information, your motivation for buying or selling, your personal circumstances such as a divorce or relocation and anything else that would compromise your negotiating position.
As a listing agent, when I list your home for sale, my fiduciary duties include the following: loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, accounting and loyalty. All are important, but the need for confidentiality is paramount.
I often remind my clients that I am working for them to get them the most favorable terms and that I hold their information in confidence. I do not share this information with other agents as it not only can backfire, but breaching confidentiality leads to lawsuits. I have a legal responsibility and duty to my clients to keep their information private and confidential. How long must I keep the confidence? Confidentiality never ends. Even after a sale closes or the listing expires, only a court order can override confidentiality.
As a listing agent, when I list your home for sale, my fiduciary duties include the following: loyalty, obedience, disclosure, confidentiality, reasonable care and diligence, accounting and loyalty. All are important, but the need for confidentiality is paramount.
I often remind my clients that I am working for them to get them the most favorable terms and that I hold their information in confidence. I do not share this information with other agents as it not only can backfire, but breaching confidentiality leads to lawsuits. I have a legal responsibility and duty to my clients to keep their information private and confidential. How long must I keep the confidence? Confidentiality never ends. Even after a sale closes or the listing expires, only a court order can override confidentiality.
Thursday, February 17, 2011
What is a Senior Real Estate Specialist Designation?
I am happy to report that am an now officially a Senior Real Estate Specialist. SRES is the only designation and marketing program specifically designed to serve senior property owners. SRES designees have acquired unique tools and a special expertise to counsel senior clients with their lifestyle transitions which may include financial, legal and medical issues, tax laws, and decisions on aging in place verses assisted living options.
As a SRES agent I am able to offer expert assistance to my 50-plus clients. This group of seniors, now comprises one of the fastest growing communities in the country. Did you know that 33% of the United States' population reached age 50 in 2010? That the average life span in the United States has reached 78? Another fast growing segment of our population is nonagenarians, people in their nineties, and centenarians, people aged one hundred or more. Census projections put the number of nonagenarians at up to 2.1 million in 2010 and 2.7 million in 2020. This growing population will challenge our society's ability to adapt to the elderly's needs for housing, health care and long-term care. As a Realtor who constantly looks for market changes, I have positioned myself to gain the knowledge needed to help this growing segment grow into their retirement years with grace and dignity. Feel free to contact me for more information about senior real estate matters. It would be my pleasure to assist you.
As a SRES agent I am able to offer expert assistance to my 50-plus clients. This group of seniors, now comprises one of the fastest growing communities in the country. Did you know that 33% of the United States' population reached age 50 in 2010? That the average life span in the United States has reached 78? Another fast growing segment of our population is nonagenarians, people in their nineties, and centenarians, people aged one hundred or more. Census projections put the number of nonagenarians at up to 2.1 million in 2010 and 2.7 million in 2020. This growing population will challenge our society's ability to adapt to the elderly's needs for housing, health care and long-term care. As a Realtor who constantly looks for market changes, I have positioned myself to gain the knowledge needed to help this growing segment grow into their retirement years with grace and dignity. Feel free to contact me for more information about senior real estate matters. It would be my pleasure to assist you.
Monday, January 17, 2011
Our Changing Market
I went to our weekly business meeting this Monday morning. Each week we talk about our market, tour homes and rub shoulders with other Realtors who primarily work Seattle's Eastside. We had very few new listings come on the market over the holidays and today I went with the expectation that we would have at least a half dozen new office listings to preview. I was surprised when I picked up the office tour sheet and saw just one home on Mercer Island listed. I was even more surprised when the listing agent told us that even though it was a new listing at $1.4 M, she already had four offers on it and was expecting a fifth, but more offers were welcome. This lead to a lively discussion of what is going on in our market.
Those of us who have been working with buyers in recent months have been frustrated. A great number of homes closed before year's end and we've been telling our clients, "just wait until after the holidays...." Well, the holidays have come and gone and we are not seeing a large number of homes coming on the market...at least not yet. In quizzing our top listing agents we learned that they have seen the number of homes coming on the market drop and the number of multiple bid situations increase. One agent spoke about having a competing bid on a property valued at over $1.2M. There were 33 offers on the property and the winning bid was well over the asking price. Was this an aberration? I had a similar situation in recent months. My clients found a wonderful foreclosed home in Kirkland with a phenomenal lake view. Price was mid $900s and we bid full price. The listing agent called me the next day to say it was a multiple bid situation and that we should submit our "highest and best" offer. My clients came up $6,000 over the list price but the winning bid came up well over $1M. Last week in the West Bellevue market in the $1.25M to $2.25M range, 9 homes went pending. In 2010, 45 more homes sold on Mercer Island than in 2009. To cite yet another example, the volume of waterfront home sales on Mercer Island tripled in 2010 over the number sold the previous year, indicating that velocity even in this price category is increasing tremendously.
What does this mean for buyers and sellers? If you are looking to buy a home, you need to work with a Realtor who has their pulse on the market and sends you listings as soon as they are available. Check your email often and when your agent flags a home and says, "we need to see this one asap," then you need to act quickly. Just last week, I sent what I identified as a "hot" house to six buyers, letting them know we should see the home within a day if possible. One of the six heeded my advice and saw the home. While they decided not to bid on it, it was good they got in quickly, as the next day the sellers had an accepted offer in a multiple bid situation. Later in the week, another buyer finally returned my call and said they hoped to see that home on the weekend....but alas, it was too late.
For sellers, you may be rubbing your hands and thinking now is the time to list your home for sale. You are right! Finally, we have buyers who are serious about buying. The rising interest rates are helping push some to act, but what I personally have seen is an influx of new hires in the greater metro Seattle area. Open Houses offer an interesting snapshot of our market. What we have seen is large numbers of buyers moving into our area, currently renting, but looking to buy in 2011. Microsoft is hiring from all over the world, but so is Expedia, Starbucks and Boeing, to name a few. But while the demand has increased, we are noting that buyers are still very discriminating. People are turning up their noses at dirty, dated or overpriced homes. Buyers are looking on line, doing their homework, and ready to act, but the property must be clean, staged and properly priced. If they are: the home will sell.
Yes, our market is changing. While we expect more foreclosures and short sales to come on the market in 2011, our projections are that the demand will take care of the supply and we will soon be back in a balanced market situation with property values once again increasing: and isn't that something all homeowners want?
If you are thinking about buying or selling a home on Seattle's Eastside, please give me a call. It would be my pleasure to help you understand our ever changing market and represent your best interests in either purchasing or selling a home.
Those of us who have been working with buyers in recent months have been frustrated. A great number of homes closed before year's end and we've been telling our clients, "just wait until after the holidays...." Well, the holidays have come and gone and we are not seeing a large number of homes coming on the market...at least not yet. In quizzing our top listing agents we learned that they have seen the number of homes coming on the market drop and the number of multiple bid situations increase. One agent spoke about having a competing bid on a property valued at over $1.2M. There were 33 offers on the property and the winning bid was well over the asking price. Was this an aberration? I had a similar situation in recent months. My clients found a wonderful foreclosed home in Kirkland with a phenomenal lake view. Price was mid $900s and we bid full price. The listing agent called me the next day to say it was a multiple bid situation and that we should submit our "highest and best" offer. My clients came up $6,000 over the list price but the winning bid came up well over $1M. Last week in the West Bellevue market in the $1.25M to $2.25M range, 9 homes went pending. In 2010, 45 more homes sold on Mercer Island than in 2009. To cite yet another example, the volume of waterfront home sales on Mercer Island tripled in 2010 over the number sold the previous year, indicating that velocity even in this price category is increasing tremendously.
What does this mean for buyers and sellers? If you are looking to buy a home, you need to work with a Realtor who has their pulse on the market and sends you listings as soon as they are available. Check your email often and when your agent flags a home and says, "we need to see this one asap," then you need to act quickly. Just last week, I sent what I identified as a "hot" house to six buyers, letting them know we should see the home within a day if possible. One of the six heeded my advice and saw the home. While they decided not to bid on it, it was good they got in quickly, as the next day the sellers had an accepted offer in a multiple bid situation. Later in the week, another buyer finally returned my call and said they hoped to see that home on the weekend....but alas, it was too late.
For sellers, you may be rubbing your hands and thinking now is the time to list your home for sale. You are right! Finally, we have buyers who are serious about buying. The rising interest rates are helping push some to act, but what I personally have seen is an influx of new hires in the greater metro Seattle area. Open Houses offer an interesting snapshot of our market. What we have seen is large numbers of buyers moving into our area, currently renting, but looking to buy in 2011. Microsoft is hiring from all over the world, but so is Expedia, Starbucks and Boeing, to name a few. But while the demand has increased, we are noting that buyers are still very discriminating. People are turning up their noses at dirty, dated or overpriced homes. Buyers are looking on line, doing their homework, and ready to act, but the property must be clean, staged and properly priced. If they are: the home will sell.
Yes, our market is changing. While we expect more foreclosures and short sales to come on the market in 2011, our projections are that the demand will take care of the supply and we will soon be back in a balanced market situation with property values once again increasing: and isn't that something all homeowners want?
If you are thinking about buying or selling a home on Seattle's Eastside, please give me a call. It would be my pleasure to help you understand our ever changing market and represent your best interests in either purchasing or selling a home.
Sunday, January 16, 2011
Asking a Realtor for a Kickback
I met a couple recently and we discussed their housing needs. They asked me to show them a property and I made the arrangements. After spending considerable time at the home, they turned to me and asked if I would give them part of my commission if they bought the home through me. I explained that they did not pay my commission, the seller did. They said they understood that and yet wanted me to give them 1/3 of my commission for doing business with them.
While I am not an attorney, and this should not be construed as legal advice, under Washington law this is considered a “kickback” and is prohibited. Some agents simply ignore this and offer their services at a reduced rate in order to garner more business. I have to wonder what kind of service these agents offer. If they will not conduct a transaction within the law, why, then should we assume they will care for the interests of their clients? I also wonder if they are astute enough to realize that what they are doing is prohibited and is grounds for disciplinary action by the Department of Licensing.
What some home buyers and sellers do not understand is that Realtors do not earn a salary and are only paid when they close a sale. The 3% commission figure is historically recognized as one that adequately compensates agents for the time, effort, expenses, and other factors involved in this type of business.
It is possible for realtors to legally share a portion of their commission with a buyer, but in order to do so, there must be full disclosure to the lenders involved and all aspects of the transaction must be fully disclosed on the closing settlement documents (“the HUD”). To pay a kickback either before or after closing without informing the lender or disclosing the transaction on the HUD is illegal and puts both the client and the Realtor at risk of being targeted for mortgage fraud. To avoid incurring liability for potentially fraudulent transactions, it is best to keep all the financial dealings open and above board. Better yet, work with a realtor that will not engage in deals that skirt the margins of permissible or ethical behavior.
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