Your NW Home reSource Real Estate Blog

Smart Strategies for Sellers

Putting a home on the market can be stressful, and some owners have a hard time making objective decisions when it matters most.

Price it right.
Your listing agent will perform a current market analysis. Look closely at the comparable sales of similar homes in your neighborhood that have closed in the last 90 days and take the number of available
listings into account when agreeing to an asking price.

Keep in mind:

• Homes that have failed to attract a buyer in a reasonable period of time may be overpriced.
• Foreclosures or short sales in your neighborhood can impact your home’s market value.
• It doesn’t pay to set the price too high; most buyers will need financing and the bank will generally use an appraisal based on recent sales to justify the loan amount.

Your agent may recommend that you perform repairs to correct visible flaws—or even suggest staging your home so it feels more spacious and potential buyers can picture themselves living there.

Take advantage of your market debut. Pricing your home competitively from the get-go
increases the odds of a quick sale.

• Most buyers screen available homes on the Internet, and new listings get 4 times more web traffic. If your home is priced too high when it hits the market, you run the risk that active, qualified buyers will scroll right past it.
• New listings are called “hot” for a reason—buyers get excited about them. Showings are likely to cool off noticeably after the first 30 days on the market.
• When weighing an offer, make sure to consider the potential costs of holding on to your property longer than you want or need to (including the mortgage, property taxes, insurance, maintenance, etc.).

Sweeten the Deal.

Sellers who agree to pay the buyers’ closing costs can make it easier for first-timers to obtain financing. Offering to throw in appliances, upgrade allowances or other perks could also swing a buyer’s
decision your direction.

Here where to find out how your home stacks up!

S & P Cuts US Credit Outlook: Impact on Interest Rates?

Recently the credit ratings firm Standard and Poor's cut their credit outlook on the US to negative from stable and said it's AAA credit rating could be cut within two years if headway isn't made in closing the budget gap.

This credit outlook downgrade is a serious issue. The last thing the US wants to endure is an outright credit downgrade. This would make the interest expense on the US debt even more burdensome - and remember, we are all on the hook for this debt and the carrying costs!

What sparked the change in outlook? The S&P cited the wide political divide in Congress as a major hurdle to meaningfully lower the federal budget deficit. Both parties want to lower the deficit but there is stark disagreement on how to do it.

Hopefully, the S&P's actions will motivate Congress to get serious and get something done. If Congress doesn’t address the national debt ceiling limit by May 16^th, then this will increase volatility in the markets.

What does this mean for interest rates?

Mortgage Bonds are in tough spot longer-term. Here’s why: if the US government is successful in taking action to lower the budget deficit and avoid a outright credit downgrade, then we should expect a longer duration of accommodative Fed monetary policy. The Fed doesn't want an economic slowdown to recreate a "deflationary" environment. And if the economy slows, then we may start hearing debate for a QE3 Policy. We can see the negative effect on Bonds when QE2 was rolled out: it was inflationary. This will push rates higher.

On the other hand, if US debt receives an outright downgrade - that would be really bad for Bonds. One could expect a lot of belt tightening and slower economic growth in the future as government spending would have to slow immensely to help close the budget gap. Look at Greece’s current situation for a peek at this. This will push rates higher.

Rates remain historically low and may continue to do so for the near future. However, there are a lot of challenges for Bonds down the road and the recent credit outlook downgrade was just another example.

This makes for a increasingly vanishing opportunity for clients and prospective home buyers. Right now. Contact your mortgage professional to review your situation.

How to Get the Home You Want

Weather you are considering buying your first home or it's time to find your dream home, here are some great tips that will assist you in finding the home you want.

Get Ready.
Talk to your mortgage professional about your financial situation and credit history to determine your loan options. It’s important to know how much house you can afford based on your down payment and income. A strong letter of pre-approval can really add to your bargaining power.  Have a meeting with your real estate agent. Discuss your needs and preferences and establish the best method for your agent to send listings and communicate with you about available properties. Tap into his or her knowledge of the local market. When it comes time to act, your agent will represent your interests in negotiations and work to ensure a smooth transaction.

Shop Smart.
Expect to pay more for a showplace; if you consider a fixer-upper, judge structural deficiencies more harshly than cosmetic flaws. It can be costly to replace major components or to change the layout, but redecorating with flooring, fixtures or paint is relatively easy and sometimes offers instant equity potential. Location is key. Even if the site seems perfect for you at the present time, think about whether it will appeal to a large pool of buyers if you should decide to sell in the future.

Go For It!
To write a winning offer without overpaying, look at the prices of comparable sales. Consider whether the property is in a high-demand area or if there is plenty of competition. Ask your agent to find out why it is for sale and if the seller seems motivated. If you accommodate the seller’s preferred closing dates or other terms, he or she may be more flexible with the price.

If you must sell your current home to afford a new one,consider putting it on the market before starting your search. You can often negotiate a better deal on a purchase if your property is under contract or you already have the cash in hand.

Do Your Due Diligence.
Schedule a home inspection after coming to terms. Many sellers expect to address issues related to safety or building codes, and additional repairs (or a credit) may be negotiated. Make sure all of your questions or concerns regarding the home’s condition are answered through the inspection process.

 

Here is how you begin your process of finding your next home!

Housing Market Statistics for March 2011

March 2011 Home Sales report for East King County Cities of Bellevue, Redmond, Kirkland, Issaquah & Sammamish. In March of 2011 closed sales down in King County, Washington  down 6.1% from March of 2010(1,885 vs. 2,008).  The Eastside also slowed down in that closed sales were down 6.9%(623 v 669.) The median home price in King County $319,950 down 6.98% and the Eastside Median Sales price was down 2.03% to $435,000  Pending sales across King County were ddown 12.13% and pending sales on the Eastside were down 10.13% in King County. The silver lining on this cloud is that inventories continue their downward trend, they were down 15.42% in King County and down 14.76% on the Eastside from March of 2010. See the raw numbers from the Northwest Multiple Listing Service  It would seem that the King County market is taking a break.  Home prices seem to be leveling off on the Eastside with Kirkland & Redmond getting a bit of a up swing see reports below.


View Eastside in a larger map

Here is a breakdown of real estate homes sales in Seattle Eastside Communities of Bellevue, Kirkland, Redmond, Issaquah and Sammamish, Washington for the week broken down by neighborhood. Just click on the link to your neighborhood for the complete breakdown of the homes that are on The chart below breaks down Seattle Washington's Greater Eastside Real Estate homes sales by City, for the week ending 04/08/2011.

City	# of Active Listings
Homes For Sale in Bellevue, Washington	516
Homes For Sale in Issaquah, Washington	252
Homes For Sale in Kirkland, Washington	389
Homes For Sale in Redmond, Washington	428
Homes For Sale in Sammamish, Washington	363

To find out what your home is worth or If you are interested in selling your home for top dollar in the quickest amount of time, please contact me anytime at 206-818-8816 or Click here to send me an e-mail requesting further information.

Download The Big 5 Eastside Cities Market Statistics Now:

Pick the Perfect Window to Frame Your View

Recenly I was speaking with a homeowner about replacing his window.  He has a lovly classic 10960's  rambler that is well taken care of.  They want to replace the windows but don't want to loose the charachter by purchasing the wrong windows. When selecting new windows and doors, there are several key things to keep in mind.

• Choose a style that emphasizes your home’s character, including its overall design and other important architectural features.
• Try to match the general construction quality and the price point to that of the existing structure. It typically does not make financial sense to put high-end materials in an entry-level home or budget products in a luxury property.
• Choose frame materials and special features (such as upgraded glass, multiple panes or inert gas fillings) that are suited to the climate in your area.

What You’ll Get for Your Money
$ Most Affordable— Products made of vinyl (or PVC) provide good insulation, require little maintenance and are resistant to moisture. Good-quality vinyl windows stand up to temperature extremes and are less likely to crack or warp.
$ $ More Costly— Fiberglass or composite window frames offer plenty of insulation and are highly durable. They are also dimensionally stable, since they generally do not swell or shrink as temperatures fluctuate. They can be textured, painted or stained to look like wood.
$ $ $ Priciest Options— The look of natural wood works well with the classic styling of traditional or upscale homes, but it can deteriorate due to moisture and insect damage. Today’s modern clad wood designs have wood on the inside and metal, vinyl or fiberglass on the exterior to maximize durability and reduce maintenance.

Learn the Lingo
U-Factor: a measurement of how well the window keeps warm or cool air from flowing between the inside and outside of the home; a lower number (typically between 0.20 and 1.20) means the window insulates better and is more energy efficient.
Solar Heat Gain Coefficient (SHGC): a ratio between 0.25 and 0.80 that indicates how well the window blocks heat caused by sunlight; a lower ratio is best in warm climates.

Low-Emissivity (Low-E) Glass: a metallic coating that lets in light but reflects UV rays, reducing the amount of heat that passes through the glass.

Energy Star-qualified: a product that meets certain performance standards and is labeled to specify which of the four U.S. climate zones (northern, north central, south central, and southern) it’s most suited for, based on the listed U-factor and the SHGC.

New Windows and Doors Boost Curb Appeal & Make you More Money

Want to boost curb apeal for your home and at the same time save you money?

Nearly 1/3 of the energy used to heat or cool the typical American home escapes silently through windows and doors.* Replacing drafty old models with energy-efficient designs is one project that pays off right away—and the savings are printed in black and white on a homeowner’s utility bills.

6 Great Reasons to Replace Older Doors and Windows

1. Superior Curb Appeal: Renovating with good-looking classic or modern styles can add architectural distinction or personality.
2. More Comfortable: New technologies reduce air flow between the interior and exterior which helps to maintain a more consistent temperature inside your home.
3. Lower Maintenance: Durable designs and modern materials minimize upkeep and may be covered by manufacturer warranties for many years.
4. Safe and Secure: Some models offer multiple-point locking systems and have been designed to resist forced entry.
5. Peace and Quiet: High performance windows can stifle some traffic sounds, commercial clatter or other types of noise from outside.
6. Higher Resale Value: All of these benefits may also appeal to potential buyers, so a significant portion of the cost could be recovered when the property is sold.

The front of your home is what neighbors, guests and buyers see first. Installing a new steel entry door or roll-up garage door is a relatively quick and easy project that can have a dramatic impact on the look
of your home’s exterior.

* Source: California Energy Commission

The Life of an Escrow

During a real estate transaction it is vital to have a great Escrow team. Many of my clients have asked me what role escrow plays in the process of buying a home. The answer I give them is always, "only the most important role." A great escrow team is never noticed by the buyer and seller. The technical definition of escrow is:

"…an impartial third party in which documents and funds are deposited by buyers, sellers and lenders to facilitate the closing for a real estate transaction."

It's the job of escrow to coordinate with the buyer, seller and lenders to obtain required signatures on all documents a work with title to clear al liens and encumbrances against the property then record the comments with the county to close the transaction. To better explain exactly how this happens let's look at the life of an escrow:

1. Receive & Review Purchase & Sale
2. Order Title Insurance
3. Receive & Review Title Commitment
4. Send copy of title commitment to agents for buyer and sellers review.
5. Send introduction packet to seller and buyer.
6. Buyer orders fire and hazard insurer and sends info to escrow
7. Request Pay-off figures from Underlying lenders
8. Work with appropriate parties to clear any unacceptable "clouds" on title
9. Coordinate with lender to ensure timely delivery of loan funding.
10. Receive & Review Loan Documents
11. Prepare Settlement Statements
12. Prepare Escrow instruction & pertinent documents, including the Deed.
13. Obtain Signatures from sellers
14. Obtain closing funds from buyers
15. Obtain signatures from buyers
16. Prepare recording instructions
17. Send all documents for lender review
18. After review send all documents to courthouse for recording
19. Call Lender with Recording Numbers
20. Receive Loan Funds
21. Disburse Funds to Seller
22. Forward Final Docs to Sellers, Buyers & Lender

So there you have it. After looking at this list I am even more certain that a good escrow company and escrow officer is worth fighting for it in negotiations. There are many choices when it comes to Escrow companies. In some cases, especially when dealing with bank owned properties, where you don't get to choose your escrow closer. For me I have a few escrow companies that I don't mind working with. My first choice is Linda Charleston at Davidson, Czeisler & Kilpatric, I also like Talon NW & Northpoint.

Closing thought: To ensure you have the best home buying experience, take time to pick your closing team and it will take make all the difference.

Development from Down Under

Turns out that the Seattle Area is the target for a home builder from down under. Henley Properties one of Australia's largest home builder plans to build 500 homes in King, Snohomish & Pierce Counties.

"Local real-estate observers said Henley's arrival is a vote of confidence in the Seattle market, where new-home construction fell sharply during the recession and is just beginning to recover."

In a recent article by Seattle Times' Eric Pryne, it would appear the Australian builder Henley believes that the area is poised for a recovery. Peter Hayes the company's managing director is quoted as saying, "Henley is making a bet the region is poised for recovery,"

I was recently talking to a few Australian's about their economy and they reflected that there economy is in good shape. They were in town to work with a software company. The one observation they did make was that the area(Seattle) seemed to be in good shape. I would say boom, but poised for recovery sounds nice. Either way...enjoy the video :) 

 

 

Seattle WA Bank Owned Homes Report

Seattle-Bank-Owned-Homes

Bank Owned Homes in Seattle WA  Some of the best deals in Real Estate are REO or Bank Owned Real Estate.  Banks are in a hurry to sell a home and they intentionally price it 20% below the market.  A Bank Owned home is property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale. Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.

I have broken down Seattle's sales from the Northwest Multiple Listing Service in 3 sections, Bank Owned, Shortsales(Pre-foreclosures), and "Arms Length" Transactions.  Some points of interest; the median home sales price is $246,600 $388,101 & $483,193 respectively making Bank Owned Real Estate(REO) the best value/deal for home buyers.  While short sales may seem attractive they take longer to close.  Bank Owned Homes(REO's) are already approved and a buyer is negotiating directly with  the bank.

Seattle WA Bank Owned(REO) Market Statistics for the last 30 Days




Seattle WA Short Sales(Foreclosures) Market Statistics the last 30 Days

Seattle WA Non-Bank Owned/Shortsale (Arm's Lenth Transaction) Market Statistics for the last 30 Days

If you are  looking for a detailed list of REO(Bank owned real estate)properties, or short sales, simply sign up for a FREE list King County WA Bank Owned homes.

 

How to find your next home

Shopping for a a home is a process. It should be done with planning, preparation and perseverance.  Many would-be buyers jump right into looking for a home and don't lay the foundation(pun intended) for and exceptional experience for the home buying process. 

My real estate business is focused on providing a exceptional experience so the first thing I focus on is planning.  I meet with my buyers to discuss the entire process, if buyers won't put in the time, we probably aren't the right fit.  After meeting for about 30 minutes in my office we convene with a home shopping plan. The first step of the plan always includes meeting with my lender( or another qualified lender) to get their financing approved. How can you go shopping without looking in your bank account?  Once we are done with the pre-approval process the fun begins. 

As we begin the preview section of the home buying process it's important to have a list of wants and a list of needs.  It's as easy as creating an Excel spreadsheet.  Once you sit down with this spreadsheet and answer these question honestly, maybe even add a few categories. Be sure to fill out your needs and your wants honestly.  Keep in mind that you need to build in some flexibility here. There is a 4 way pull between: Location, Price, Condition and Style; however, that is a post for another day.

As we preview homes together deciding on whether or not a home is a good fit for you is as easy as checking your list.  Start your home search buy completing the Dream Home Finder and we can set up our planning session right away.  I look forward to meeting you.