Secrets of the Nest

Negotiating the Deal

2012-01-15T08:00:00.000-08:00

You have done all the work to get your house ready. You looked at the comparable properties. You chose the right price and now you have an offer. Yikes! What to do?
Strong negotiation and people skills are critical once you receive an offer. The goal is to reach mutual agreement between the buyer and the seller. Generally the buyer wants to buy for less and the seller wants to sell for more. Already we’re at cross purposes! But, with a listing price that appeals to a few buyers, right off the bat, your chances of getting someone to step up and meet your terms is increased.

The goal is to keep the communication rolling along, stay focused and calm and create a plan that works for everyone. Remember that once you have a signed deal we will still be working with the buyers as they have their building inspection and decide whether to move forward.

We research the buyers, their loan, their agent and their recent experience with previous offers. Did they write an offer last week, have an inspection and walk away from the deal? Why? Have they made 6 offers on properties below asking price and never put a deal together? Is there a silent partner like a parent who is really the decisionmaker? Have they seen and approved the house? How much down payment? Closing date?

Whatever we’re presented with, it’s our job to be clear about the pros and cons of an offer and try and meet your needs – to sell your home for the best price possible in this market.

Are you better than the other guy? You won't know unless you look

2012-01-14T08:00:00.000-08:00

I am reposting this great article by Elaine Scoggins from the Seattle Times last year. She sold her house in Florida in a horrible market then bought a house here. She saw both ends of the process.

As we work with our sellers to get ready for the spring market, it pays to think like a buyer. We appreciate sellers who are partners in the process and own what they can of it. We are great advisors and tool providers but you, the seller, are the one who will ultimately do what needs to be done to get your house sold. We are here to assist but can’t pick up the clothes before a showing or make the final decisions about pricing, painting and prepping without your commitment to the process.

Adopt the attitude that selling your home is the equivalent of a new full-time job. You are the one with the most at stake. If you're casual about anything that's under your control, potential buyers will know it.

This important step also may require you to spend a little money, even if it's the worst time for you financially. Your competition probably is doing that.

And speaking of competition, save some time and energy to visit other open houses. Everybody else sees what else is out there. You should, too.

So many sellers do not go out to open houses to see the competition. We certainly screen listings and tell you about them but seeing for yourself will really help you when your house is on the market.

BAM! These babies sold fast.

2012-01-13T23:00:00.000-08:00

A new development on Malden Avenue on Capitol Hill became available right around Christmas and BAM! Sold. Check out our list of properties in the last month that sold in under 10 days. It will be interesting to see which ones actually close. We have seen more deals going south the last year. You get an offer but the property doesn't appraise for the price, the buyer gets cold feet, they don't qualify. It's not done til it closes these days.

A month later - Still more homes are available under $250,000

2012-01-13T21:18:00.000-08:00

We are working with first time buyers and are finding some places that work. And people wanting to be landlords ( consider carefully!) Here's the available homes in the City of Seattle under $250K. Check them out.

Gettin' affordable in the hood.

2011-12-15T20:30:00.000-08:00

Did you know that in the CITY of Seattle you can buy a house for under $250K? No longer is $400K necessary to buy into the hip urban life. Of course, these less expensive, might one say cheap? homes are not located in the groovy neighborhoods but they are homes, they are in the city and so affordable. Check out this link to the 126 active listings in Seattle for under $250,000. A good number are in West Seattle.

Our Sold Listings

2011-12-15T18:00:00.000-08:00

We have been in the business for years and years and have listed and sold many homes. We know that potential sellers would like to see the kind of work we do and the kinds of homes we sell. Here you go! This posting will be regularly updated with our most recent "Sold" listings from the current year. Bookmark it and come back. We will always have Photo Galleries of the homes available for you to see. Presentation is everything!

7047 Ravenna Ave NE Seattle WA 98115 $385,000 listed. Sold $400,000.

5009 49th Ave S Seattle WA 98118 Sold for $559,950

105 N 60th St - Phinney Ridge - Sold for $740,000
602 N 61st St - Phinney Ridge - Sold for $567,000
1118 20th Ave E - Capitol Hill - Sold for $940,000
817 NW 193rd St - Richmond Beach - Sold for $462,500
627 NW 79th St - Ballard - Sold for $399,000
214 Summit Ave E #9 - Capitol Hill - Sold for $230,000
7302 20th Ave NE - Ravenna - Sold for $425,000
2525 E Helen St - Capitol Hill - Sold for $800,000
9666 48th Ave SW - Fauntleroy - Sold for $456,000
1305 N 90th St - Green Lake - Sold for $239,000
6534 9th Ave NW - Ballard - Sold for $401,000
1238 E Newton - Capitol Hill - Sold for $1,200,000
1612 34th Ave - Madrona - Sold for $700,000
212 NW 67th St - Phinney Ridge - Sold for $599,000
6528 9th Ave NW - Ballard - Sold for $577,500
7161 Beach Dr SW - West Seattle - Sold for $1,325,000
420 NW 181st St - Richmond Highlands - Sold for $355,000
632 NW 53rd St - Ballard - Sold for $440,000
20625 3rd Ave S - Des Moines - Sold for 269,950
2629 E Valley St - Arboretum - Sold for $375,000
1910 NW Canoe Place - Ballard - Sold for $675,000

Hot sellers in October

2011-11-08T12:56:00.000-08:00

The number of homes that sold quickly in October 2011 is down. Only 46 homes sold in the city in less than 10 days in the last month. That's down from last month. Luckily one was ours! Inventory is very low. Many buyers are out there but moving slowly and few new listings are coming on. Our buyers are waiting for "it." Here's a link to the hot sellers.

Too high? Not sold.

2011-09-16T08:29:00.000-07:00

Zillow.com Research has some great articles on the market. They are seeing prices continue down in some markets over the next couple of years. Despite that they see that sellers are overpricing their properties and we know that means they won't sell. We have seen that in our market even in the lower price ranges. This last couple of weeks we have been looking at the $325-400K price range in north Seattle. Homes in the $350-375K range are selling immediately. The $399K homes are sitting if they are comparable to the cheaper ones. It's hard to think your largest asset has lost value but it has. Seattle is down 28% from the peak of the market.

From the Zillow article. "We found sellers who bought after the housing bubble burst, in 2007 or later, price their homes 14% above market value," said Zillow, which used sales of comparable homes to figure market value. "Those who bought before the housing run-up, prior to 2002, overprice by nearly 12%. Somewhat surprisingly, sellers who bought during the run-up, from 2002-2006, seem to be the most realistic, pricing their homes 9% over market value."

Who pays for what at closing?

2011-08-25T14:51:00.000-07:00

Our friend, Michelle Barry of Commonwealth Title created this handy list of who pays for what at a closing. Different parts of the country have different customary fees associated with transactions so take a look for what happens in Washington.

Often, in a buyers' market, buyers will ask sellers to contribute towards the buyers' closing costs. This can really help a first time home buyer as their loan fees, escrow, title insurance and pre-paid interest and insurance can add up to $5000-7000 easily.

If you write an offer for a house you can ask the seller to pay these costs out of their proceeds at closing. Of course, this means they receive less money so your offer is actually less than the face value. If you are competing with other buyers and need closing costs paid you may have a hard time getting the house. If you are making an offer on a house that others don't want you are more likely to get those costs paid.

Fast Seller in July 2011

2011-08-08T19:22:00.000-07:00

So last month we saw a number of homes sell in under 10 days. That's always a nice goal. You get your best buyers and best price in the first few weeks. The cheapest was a $150,000 in West Seattle and the most expensive was $2M in central Seattle. What a wide swing! Take a look and see what's popular.

Serenity reigns on North Capitol Hill

2011-08-03T16:00:00.000-07:00

When I first walked into this house years ago, I was swept off my feet by the good feelings and warmth. The serene yellows and soft fir floors made me want to swoon into them. Now, years later our friends are "right sizing" and have chosen us to help them. What an honor. Join me there August 7 1-4pm for our first open. Going to be great weather.

This couple has raised to great boys here and are ready to move on. You can feel the love that was poured into it over the years and the fun they had. It has been nicely remodeled and finished. All the rooms work well. The main floor flows easily from room to room for parties and out into the (unusual for Capitol Hill) level side yard. Can you say "Croquet"?

This home has the requisite three bedrooms up with two baths. Another bedroom and 1/2 bath on the main floor along with formal day rooms. Decks. Luscious landscaped grounds. You should really see it in its glory on a sunny summer day.

The lower level has another two rooms plus a family room and a 3/4 bath. Plus a finished laundry room and another storage room.

Plus, can you believe it? A two car garage and off street parking for two or more additional cars. Level access into the yard and just 3 stairs to the house.

No new condos?

2011-07-23T08:30:00.000-07:00

Here's a link from King5 about the fact that there have been no new condos built since 2007. There are still plenty of condos in the city but this will mean the market will finally tighten a little in a year or more.

We had a great Condo Walk last week and looked at 8 units from $230K to $539K in the North Broadway neighborhood. Very interesting. Some views, some old world charmers and a couple of newer units.

Look at what we helped our buyers buy

2011-07-20T22:56:00.000-07:00

Here's a sampling of what we've helped our buyers buy. We always help buyers figure out the right price and value. What is a property worth? We do a market analysis for every property we help you make an offer on. You'll see that some of these sold for the asking price, some lower and some higher. There is no blanket rule for what to offer or for what the value is. Each is unique.

6512 43rd Ave NE - View Ridge - Sold for $459,950
4221 46th Ave S - Columbia City - $423,130
2003 Belfair Ave NE - Bainbridge Island - Sold for $165,250
2515 E McGraw St - Montlake - Sold for $620,000
6856 23rd Ave NE - Ravenna - $402,000
769 N 74th St #A - Green Lake - Sold for $335,000

Interest rates are down again?

2011-07-07T15:00:00.000-07:00

I remember telling people last year that rates wouldn't get below 5% again and yet here we are! Freddie Mac has a mortgage survey they publish every week and the west coast average rate is 4.5%. Go figure! And 5 year arms are in the mid 3% range. Distressed homes - bank owned or short sales- continue to hold prices down so that, combined with the low rates, is making homes affordable for those with income and good credit. FHA is still allowing 3.5% down buyers so we are having first time buyers get homes in the city for $250,000-350,000 for $8,750-$12,250 down. This small down payment may go up in the fall. Plus there will definitely be a change in the jumbo loan market as we lose the $567,000 conventional conforming limit in King County. Stay tuned!

The Happy Ending to a Story

2011-07-06T15:00:00.000-07:00

This is a lovely note our sellers, Helen and Bob, sent us last week. We wanted to share the good feelings. Thanks, Helen and Bob!

Our House SOLD...!!!...Why...??? We do not qualify as experts in "how to sell your house". However, we are experts in knowing "what sold our house."

1. It started with Penny and Rebecca...who have reputations as experienced realtors. Over the many weeks we worked together we grew fond of them and trusted them.

2. It is vital to establish a viable working relationship with a qualified realtor. From the beginning we trusted Penny (who was our 'contact person').

3. It was possible to actually move out of the house...putting every item we owned into "take", "give", "sell" or "dump."

4. With Penny's leadership a plan was mutually developed to clean-up, clear-out and paint-up the inside of the house. We did not do major renovations nor did the outside of the house need attention. Penny introduced us to skilled and experienced men who were hired to prepare the house for sale.

5. An expert "staged" the house and it showed on the internet and was available to be shown at an "open house."

6. The character of the house was revealed: well located in a popular neighborhood; beautiful oak and fir floors revealed; delightful open spaces in a large house (4 bedrooms) with natural light flooding every room; near popular schools & the zoo and close to shopping areas, bus routes and convenient driving routes to downtown Seattle; ideal indoor and outdoor spaces for a family with children.

7. Open, honest and helpful info re the "limits" of the house...with bids revealing the possible costs of improving the house were provided by Penny with our full cooperation.

8. Our house was presented and we were represented by professional and experienced realtors who could deal with all the practical matters in selling our house.

9. In all of the phases of this experience we were kept informed about progress, decisions to be made and the process of putting our house on the market and selling it.

10. We had several discussions re what price to put on our house...and after the pros/cons of "pricing" we reached a mutual decision.

Penny indicated that we had a most unusual number of interested and possible buyers...And after only one Open House we had seven (7) bids...and sold our house for more than we had asked for...to buyers
who were pleased, happy and delighted to buy our house.It was a "win-win" experience.

Thanks to Penny and Rebecca.We are happy "experts in selling our house."
Helen and Bob

Will we get any appreciation in the next few years?

2011-07-06T07:21:00.000-07:00

Many of our clients are trying to time when to sell their house and move down or up. If Macromarkets with Robert Shiller of the Case-Shiller index are right, there will be very little appreciation in prices nationwide before 2015. Here's a link to their latest report.

I think that any real estate decisions you make should be based on what you need to do for your life and comfort. If you want to move "down" and sell your bigger family home to buy a smaller one, you may get less for your home now than at the peak of the market, but what you will move into will be less, too. Conversely, if you are moving up - you'll get less for your smaller home but pay less for your larger one. Make your housing decisions based on what works for you not on trying to "time the market".

If you are selling your home and getting out of the market altogether i.e. moving into a retirement home, waiting for the market to go back up is going to be a long wait. If you're 80 and want to move, do it! It's easier now than when you're 85 or 90. Prices for continuing care communities are down right now.

.

Surprise! 157 houses in Seattle from $100,000-250,000

2011-06-28T11:38:00.000-07:00

I've been noticing listings coming on the market in what were previously unheard of price points in the City of Seattle - not the cheap outer burbs. So I searched from $100,00-250,000 and came up with 289. If you knock out the short sales you have 157 left. Now that is amazing. I remember at the peak of the market someone wanted a house for under $300,000 in the city and I couldn't find a single one. Take a look and see what's out there.

High Times on Phinney Ridge- June 2011

2011-06-19T09:01:00.000-07:00

We are having a Phinney Ridge week. Two new listings of homes that will fit different buyers.

One is a classic older Craftsman that the nicest couple have lived in for 30+ years. They moved on to an apartment and we went in with the crew and painted, refinished floors and staged it. It is a happy home. Feeling the good karma here. Ready for someone to come in an help it blossom and move on to the next stage. $525,000. We had 20 agents through it the first 24 hours. Going to be an interesting ride! 602 N 61st.

The second home is one that our clients, Build Love, Inc have re-imagined and totally rebuilt. It probably had several incarnations before they got to it but they stripped off all the awful remodels, completely re-did the exterior and now it looks like a traditional pretty Phinney Craftsman on the outside. And the inside is a new home! 4 bedrooms including a view master, 3 full baths, garage and extra rooms for media, playroom? Biggest new kitchen I've seen in a while. Time to party over here! $799,000. 105 N 60th.

House prices hit post-bubble low; Seattle area sees slight increase | Seattle Times Newspaper

2011-06-01T10:18:00.000-07:00

Prices continue down except for Seattle where we are seeing plenty of activity the last month in homes priced under $700K. We have buyers looking in the NE section of town and there is very rapid turnover there. Between $400-650K, market times on the "good" houses is 2-5 days. Then the "dog" houses sit long enough for someone to feel comfortable offering 10% less and they sell, too.

Here's a Seattle Times article about the national market compared to ours. Business & Technology House prices hit post-bubble low; Seattle area sees slight increase Seattle Times Newspaper

Seattle Area is a good place for making a living

2011-05-18T09:20:00.000-07:00

A link from Money Rates- says that we have a higher average income and no income tax so even though the cost of living is higher you take home more. Hmmm.

Short Isn't just a latte anymore

2011-04-30T10:42:00.000-07:00

How far down are we? The peak of King County’s real estate market was the summer and spring of 2007. We are down 28-30% since then. If you bought your house in the 00’s we are back to the prices of 2004-2005. Ouch! If you bought your home well before then you should feel a little better if you didn’t refinance yourself up to the 2007 price level. We can look at listed properties and see the mortgages taken out on them. We frequently see that a home bought in the 90’s was refinanced many times and the amount financed was taken out for remodels or just living expenses. It was based on what the value was at the peak but now that is not supported. These account for many of the short sales coming on the market.

Speaking of short sales, one of the advantages of working with Windermere is the legal education we get every month. Demco Law Firm is the firm that Windermere works with and they bring us the latest legal updates frequently. This week it was a 3 hour class on short sales. There are many wrinkles in these for sellers and buyers. It was good to get the latest info. Did you know that a foreclosure will usually release you on your first mortgage but not on your second or HELOC? That liability will follow you unless you negotiate a release of liability for the amount owed.

Before you decide about what to do- short sale, foreclosure, bankruptcy or a strategic default- you really should talk to an attorney who does that kind of work. It is good to get ahead of the game on this and go into it with your eyes wide open. The first step is to talk to us about the current value of your home and get a “net proceeds” based on that to see where you stand. Then meet with the attorney to strategize. Call us if you want a referral to someone.
Link to Realtor’s website article about short sales and their impact on the market.

So you think you want to become a landlord?

2011-04-29T10:33:00.000-07:00

Many people are taking advantage of low prices and good interest rates to make an investment in rental real estate. They like to have an investment that they can put their hands on rather than stocks. Plus the income is indexed to inflation. There is a shortage of rentals in the city right now and rents are up. You want to be careful with what you purchase and the risks you take. I’m a landlord and have lots of experience with tenants, repairs and pitfalls. We host an annual “Rental Support Group” meeting for our clients who are landlords. It can be hilarious to hear how everyone runs their rentals. We share tips and stories. Let me know if you want to be on the list for the next meeting.
Here are a set of duplexes and triplexes in the city to take a peek at. The question for each is “Does it cash flow after you put your down payment in?” A lender would require an 20-25% down payment for non owner occupied building plus you need to have reserves to cover rents for a few months without rent coming in. Lots of issues around lending so resolve those before starting to look. Interest rates on small non owner occupied are good. This is a good calculator to take a look at if you are thinking about investing in a rental property.

Fast Sellers April 2011

2011-04-23T08:00:00.000-07:00

Here's the April latest hot sellers. The previous month there were 129 listings in Seattle in all price ranges that sold in 10 days or under. Last month there were 178. Hmmm? How can you be one of them?

Our Annual Plant Exchange is May 7 10am to 1pm

2011-04-22T11:04:00.000-07:00

You’re Invited to our Plant Exchange and Garden Party May 7 Saturday 10am to 1pm

Really, it is time to get out in the garden....mine is a mess so I need your help. Come and take some of my plants! Bring your own to share. Here’s how it works—Look in your garden and see what you have too much of. Dig up a few and put into pots. Bring to 2507 East Helen on East Capitol Hill on May 7 and take home plants that others have brought with them. It’s FREE and FUN! If you know nothing about plants or don’t have any, come anyway and take home plants. We always have plenty that need good homes. This is a great way to get started.

Penny will have lots of gardening and birding books available plus will be glad to answer your gardening and wildlife questions. While you’re here, meet fellow gardeners, snack on TOP Pot donuts and drink strong coffee.
Rain or Shine! We’d love to see you. Click here to RSVP.

Fast sellers March 2011

2011-03-23T18:00:00.000-07:00

Wow! The market is moving quicker. Here's the link to this month's homes that sold in under 10 days. All over town and now it is moving into the higher price ranges. Last month there were 108 homes and this month there are 129. Looks like sellers have gotten more realistic and buyers want to take advantage of the good rates to make their move.

March Madness!

2011-03-22T10:33:00.000-07:00

We have been busy the last couple weeks bringing on new properties! Two are already sold pending inspections and the other two are getting lots of interest. March is traditionally a month when we see an increase in the number of sellers putting their homes on the market. Typically we see an increase in inventory and serious buyers who are ready to go make offers on homes they feel represent good value. They do their homework, checking out past and recent sales, viewing all the current inventory and then they make their decision. We will continue to post sales statistics so you can track what's happening in the market. In the meantime, spring is here and aren't the trees beautiful!

Join us on Thursday Night to hear a tale of the market

2011-03-01T17:24:00.000-08:00

Just the Facts- An Evening with Alan Pope , Appraiser.

Many of our clients want to know whether they should make their move now or "wait until the market gets better". We met with Alan Pope, a long time appraiser in the area and discussed what he is seeing in the market place. There are some surprises!

So we asked him to join us on March 3, 2011 6:30-8:30pm at REI to talk about it. Find out what the neighborhoods are doing market-wise.

We hope you can come to our free event. Have a glass of wine, few bites of something tasty and good discussion. Click on this link to register by Wednesday afternoon. thanks!

Tales of fast selling homes

2011-02-25T20:03:00.000-08:00

I keep a search of homes that sell within a week or so and in the last month there were 108 in the city of Seattle. Additionally, 20 homes that had been on the market for a while, were re-listed for a lower price and sold within a week of the new price. Interesting. It seems that about 20-25 % of homes are selling right away and the rest are taking a while since our average market time is 100 days. Here's the link to fast sellers.

Money's look at the mortgage market in 2011

2011-02-18T16:00:00.000-08:00

There are many governmental changes affecting mortgages and home buyers happening in 2011. Also, foreclosures and rising interest rates are impacting the market. Here is a good explanation of the changes coming.... If you are a data geek, have at it!

What is the new normal for interest rates?

2011-02-17T16:00:00.000-08:00

When we bought our house in the '80's interest rates were HIGH-14% or so. Hard to believe?! Those were the days. Now interest rates are going back "up" to 6% and we're worried. :-) In the 20 years I've been in the business, rates have fluctuated from 8% to 9% in the '90's. Then dropped in the mid '90's to the 5% range. Then up again to 7%. Then this last year to the 4% range. My goodness! We're back up in over 5% but historically that is still near the bottom. What do you think? Read this and plug in your numbers. Business & Technology Era of super-low mortgage rates appears to be over Seattle Times Newspaper

What are the costs of buying and selling? Here's a chart of costs.

2011-02-16T15:00:00.000-08:00

Here's a schedule of costs for selling/ buying a home in King County from Commonwealth Title. The purchase and sale contract spells out who pays for what - escrow, title insurance, excise tax. Know before you buy!

The Seattle-area housing market's big plunge | Seattle Times Newspaper

2011-02-15T09:44:00.000-08:00

Here's an article from a couple of weeks ago about the timing of the peak and our fall since there. I think condos still may go down further. There are more homes, especially in the burbs, still to be foreclosed on or come on the market as bank owned properties. Those will continue to hold prices down. Real Estate The Seattle-area housing market's big plunge Seattle Times Newspaper Make sure you click on the graphic to see and understand the numbers better. A visual is always better.

Fast Sellers increased last week

2011-02-14T13:09:00.001-08:00

this Ballard home was $449,950. 3BR 1.75 baths

Fifty homes that were listed last week sold right away. All over town. Take a peak and you can see what they look like and the prices. If you are a buyer, would you have wanted to make an offer? If you are a seller, how do these prices compare to yours?

What are you losing by waiting for your killer deal?

2011-02-10T10:58:00.000-08:00

Our friend, Abe Gates, at Sterling Bank sent out a very interesting flyer this morning. He shows about how rising interest rates affect your purchase power. His example is pretty compelling.

If you were to have bought a $400,000 home in Nov of 2010 and locked into the 4.125% rates we had then verses locking in now at 5%, you would have saved yourself over $27,000 in interest in just 10yrs. Rates have gone up about 0.25% in just the last seven days and they will continue to tick up throughout the year as the economy improves.

The low low rates are gone and they aren't coming back so the way to save some cash, if you are buying a home anyway, is to get a good price and the best interest rate available. I think that buyers are figuring that out this month. Offers are up and many properties have competing offers again. Do your homework, learn the market values, get pre approved and make a decision about which home is the best for you. Now.

Seattle is looking pretty solid- See why

2011-02-08T11:28:00.000-08:00

Here's Money Magazine's take on the future of the Seattle Market. 3.7% appreciation by fall of 2012. Slow growth but at least it's not a downward swing.

Market Report for February 2011

2011-02-07T11:34:00.000-08:00

Things are getting very interesting here in the "In City" market. I toured the Phinney Greenlake neighborhoods last Wednesday during brokers open hours. Finally there were some new listings to look at and everyone was out, including buyers. This was the first day in a long time that I saw couples looking at houses in the middle of the week instead of waiting for Sunday opens. That means they are anxious to get in and see them as soon as they come on the market. And three of the listings I saw in the $550-580,000 price range are "pending" this morning. On the market less than a week.

Sunday I showed houses and checked in on some new higher end listings. The news was that there were lots of buyers out looking and one of the homes I saw in Madrona was getting an offer already. I thought it was really well priced and well presented. It would have been listed at the peak of the market for $200K more.

Our Monday morning meeting was replete with similar stories. Multiple offers are happening again on new listings if they are seen to be priced right. Even stale listings are getting more interest and some are getting two offers finally when they've been on the market for months. Once a house is in the right price range, buyers may come back. Buyers, though, are much more likely to look at and make offers on the new listings. That's why we want to price homes to sell in the first few weeks. That is when the most buyers will look at it. If they think it's overpriced they move on down the road and usually don't come back.

Here is a link to the 63 listings that sold within 10 days in the last month. Most in the under $600,000 price range but there are several in the higher price points. See if you can see what they have in common.

-The Seattle-area housing market's big plunge | Seattle Times Newspaper

2011-01-30T08:39:00.000-08:00

Great article in the Seattle Times about the fact that we are back at 2005 prices. Really. Other interesting tidbits. The median condo price in 2005 was $214,000 but now it's $244,000. I think that is because there are more high end condos and, even though they have dropped their prices, they are more expensive still that pre 2005 days.

Our manager has come up with an incredible spreadsheet that allows us to plug in what a house sold for in the last 10 years and see what it would have been at the peak of the market in 2007 and what it would be now. He combined 5 different housing indexes including Case-Shiller and the NWMLS statistics. Very cool! We use it as a reality check. So read this article and let us know wht you think. Real Estate The Seattle-area housing market's big plunge Seattle Times Newspaper

Property Research 100

2011-01-29T09:00:00.000-08:00

Every time we list a home or work with a buyer on an offer we do research. It saves us time and energy to find out as much as possible before moving forward. We look online at tax records, zoning info if there is a question, for building permits, at side sewer cards and also research values of neighboring homes.

If you have questions about your home or one you are considering here are some links that you might find useful. Of course, if you need someone to interpret what you see, call us!

Side Sewer cards City of Seattle Have a sewer line problem? Look here to get an idea of where your sewer line runs. Many Seattle homes share a line with their neighbor.

Look up a building permit in City of Seattle You will find that many homes don't have permits on line. What does that mean? You need to discuss that with your agent and inspector and decide whether it matters to you. Maybe your neighbor is tearing the roof off his house and adding 20 feet. Does he have a permit? Or you may find that someone did work that was permitted but not completed. Always good to find out.

King County Assessor's Parcel Viewer You can look up tax records- values, maps, owners. It also links to the Recorder's site to look up deeds and mortgage info. Find out whether someone owes more than they can sell the property for.

Who knew you had to pick up your underwear to sell your house?

2011-01-28T21:31:00.000-08:00

I loved this article. Hilarious what she saw when shopping for homes. We have seen it all, too. Dirt, clutter, animal messes.....People really don't want to buy that lifestyle. What they see is what they think they will live. You need to create a vision of a warm, clean and welcoming home. See it with the buyers' eyes. http://seattletimes.nwsource.com/html/realestate/2013825253_realsellers16.html

Seller's Reality Check - How to get your home sold

2011-01-28T15:52:00.000-08:00

Here's a posting from Yahoo Real Estate with some great insights into what to do to help your home sell. They talk about buyers starting their search process at the beginning of the year. They are ready to go. Of course, most sellers aren't so being on the market and fresh while there isn't so much competition is good. Seattle's best markets are usually February through April so we like our sellers to get ready and go! If you wait until May, there will be a big spike in listings but buyers will be heading off for vacation.

Also, this article talks about "making it easy" for buyers and we agree. You want to make access simple, provide answers to their questions before they ask and make room for the buyers to see themselves living in your house. It's our job to know what buyers are looking for in this market and we work with our sellers to provide it. That's why buyer's agents bring their buyers to see our listings. They know the work has been done. And they get the benefit of looking good by showing their buyers a nice home.

Is this the time to buy a house or two? John Paulson thinks so

2011-01-19T17:44:00.000-08:00

This is an interesting quote from John Paulson on Wall Street. "As this is the best time in 50 years to buy homes, Paulson advised his listeners, crowded into 3 separate dining rooms, to issue 30 year mortgages to buy a home as “your debt and interest payments get locked in at record lows, while the price of your home will rise.”“If you don’t own a home buy one,” Paulson recommended; ” if you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home.” Here's the link to another posting describing his whole talk. He thinks that the stock market is going to head up.

Hmmm. Stay tuned. Meanwhile, we have set the date for our annual Seattle Real Estate Market evening. March 3 at the REI Flagship store. Watch our facebook page for details and reserve a seat.

Interest Rates have inched up a little- Prices are down

2011-01-15T16:00:00.000-08:00

Today's rate on this website is 4.77% for a 30 year fixed rate. Still pretty darn low in the scheme of things. We do anticipate that they will go up this year but they are bumping up and down now around 5%. If you are a down sizer or up sizer it is a good time to find your new place and get into a good loan on your new place. Since all prices are down, what you sell and buy are both down. If you wait for prices to go up ( a long time from now), what you purchase also will have gone up. The differential between what you are selling and buying remains the same. And you will very probably have a higher interest rate.

Here's some info for you from Abe Gates at Sterling Bank about ARMS and whether they are something to consider.

What is flying off the market?

2011-01-14T06:15:00.000-08:00

Some homes are flying off the market. Many are not. There have been a lot of "new" listings come on but very few are truly "virgin" listings. Most are re-lists of houses that have been on the market for a month or more.

Agents think it works to re-list but I don't think buyers are that easily fooled. You can see on line what has been on and when a "new" listing comes up that's old it looks even worse. Especially when they don't drop the price.

So click on this link to see a group of houses that sold in under a week in the last 3 weeks. A wide price range. We'll put this up every month or so so you can see what sells. Can you see anything they have in common? Good value, show well on line, location, price point?

Interest Rates in January Still looking good

2011-01-13T16:00:00.000-08:00

Okay - so you finished the year and it's time to collect your info for taxes. This is a good time to look at refinancing your mortgage if you haven't already. Here's some info from the Seattle Times on current rates.

NOTE - When you are refinancing do not try to do it on line. You need a "real" person to have your file in hand and to ride herd on it through the process. Also, you need documented real income and to have good equity in your home to get the best rates. If you bought at the peak of the market and put very little down, you probably won't get the best outcome.

What is the right size home for you?

2011-01-12T18:00:00.000-08:00

As we travel through life our needs change and what we think we need changes. Realistically, do you need that big house with a room for every activity and multiple bathrooms? What about that big yard to take care of? Are you a home body or do you spend a lot of time out and about? How do you live and what do you enjoy doing?

There is a trend for smaller more manageable homes. Here's a link to more information about it. When we talk to people about their next home, we ask them to think about where they are living now. What rooms do you really use and how? Many times someone living in a 2400 square foot house actually spends 80% of their time at home in 1500 square feet. That's something to think about.

From the Seattle Times- The market heated up in December

2011-01-12T09:28:00.000-08:00

Personally we can attest to the truth of this. Activity is up and prices are still low. Buyers have started to make their moves by making offers - even if low- on homes that have been on the market for a while. A note for this past couple of weeks. There are lots of so called "new listings" but really 80% of them are re-lists of old listings. It's still a two market world out there. New fresh listings versus old stale ones. Business & Technology Hot December for King County home sales Seattle Times Newspaper

Beware of 16 Red Flags that could delay your escrow closing

2011-01-11T10:47:00.000-08:00

Watch out for properties that seem too cheap. Sometimes they are short sales where the sellers owe the bank more than they will get from selling. We always check into a property before we write an offer. A short sale could waste your time so get the inside info before you get too excite. Here's a link to a Ticor Title site that spells out what you would look for. Beware of 16 Red Flags that could delay your escrow closing

What are the 5 Reasons You Should Sell Today ?

2011-01-03T16:00:00.000-08:00

This is an interesting post about the market conditions for the beginning of 2011. If you are thinking of selling be aware that many others are, too. Inventory will probably be very high by May 2011 so getting on earlier while interest rates are still low is not a bad idea. If you are not a "distressed property", i.e. you are not a short sale or foreclosure, buyers are more interested in you. Those are harder to buy and can take a long time to close which is not good for buyers in a market where interest rates are going up. 5 Reasons You Should Sell Today (UPDATED)

Market Thoughts for 2011 from Windemere

2010-12-22T15:05:00.000-08:00

Here's a post from the Windermere Blog written by Matthew Gardner. Quote -"I believe that the light at the end of the tunnel is, in fact, the end of the tunnel and not a train heading my direction! " Thoughts for 2011

We agree that prices are down and will stay down so the wait for the market to improve could prove to be a long one. If you need to move, make the decision you need to make. Don't wait for the market to tell you what to do.

Cost versus Value in remodeling projects - What gets you the most?

2010-12-17T21:55:00.000-08:00

The Realtor's Association does an annual Cost Versus Value study by geographical area. Here is the link to 2010-2011 data. It looks like Seattle owners who remodel recoup the most value from adding an attic bedroom, remodeling a bathroom or finishing a basement. A major kitchen remodel nets you 68% return while a minor one gets you 72%. Interesting stats. Of course, you should remodel to enjoy your home while you are in it. It pays to do it the smart way. In general, if you have an older home you want to update the systems in a reasonable way and try and make it closer to the ideal. The ideal is what will appeal to the broadest range of buyers when you eventually sell. We always advise that if you don't have these features yet, add them before doing any other remodeling. You want at least 3 bedrooms, 2 full baths, a newer kitchen with family room or good flow to the living spaces, a deck and good access to outside. After you have those, have fun doing more!

Still seeing some quick sales- especially right before the holidays

2010-12-07T17:54:00.000-08:00

Here's a link I like to post once in a while. It shows you which houses sold in under 10 days in the last week- since Thanksgiving. Buyers are out there and it's the nice well priced homes that are getting snapped up, in all price ranges. But sellers need to be realistic and give the buyers a good deal on a clean well maintained house.

The Market Report November 2010

2010-11-21T13:40:00.000-08:00

Last week we had a meeting with Alan Pope, a residential appraiser who has been in the business here for a long time and who keeps great statistics. He spoke about the market long term- past and future. He thinks that we won't see any great appreciation over the next few years, especially while there are so many bank owned properties and short sales. One point he made was that if you want to sell your house but don't want to spend time and a little money spiffing it up and staging it, you would be competing with the short sales which sell for 10-15% less. That was interesting information to hear from an appraiser.

Ballard Victorian $425,000

He also said that sellers need to decide "Is it the move or the money?" Since we are down from 20-35% from the peak market, it could take from 3-13 years for the market to get back up to that point. If you are planning on selling but want to wait until prices come back up, how long do you want to wait? It's a common refrain we hear from sellers who are planning a move for other than financial reasons. Some plan on renting and waiting but for what? That is the question you need to answer.
Here are the hot sellers last month . Our current inventory of active listings in the City is 2017 homes. In the last 30 days in all price ranges of SF homes, we had 571 "new" listings. 171 were re-lists. 99 got offers and are pending. Their average market time is 25 days. Of those, 63 sold in less than 5 days!. So the moral of the story is - We have more inventory coming on than is selling. If you are going to be the house that sells, you need to price it and present it to sell quickly. That is where the market is.

Energy Tax Credits in 2010 - You can get up to 30% of the cost

2010-11-17T15:32:00.000-08:00

Energy Efficiency Tax Credit – EXPIRES 12/31/10

I just installed a new hot water heat system and it includes a solar hot water panel that preheats the water. Even on cold grey days the water going into the system is over 100 degrees! I can feel good about washing with the Hot Cycle when the sun is out and even in snow it will pre heat the water. Plus now is the time to improve the energy features of your house, you can recoup your investment by:

Lower your energy bills and increase your home's value
Save up to $1,500 on tax bill and improve the environment

The American Recovery and Reinvestment Act of 2009 allows tax credits for energy efficiency improvements. Homeowners may claim up to 30% of costs of all equipment, up to $1,500 total if purchased by December 31, 2010.

Eligible Improvements

Owners of existing homes receive a tax credit worth 30% of the cost of upgrading the efficiency of their home. The following improvements are eligible for the tax credit:
Tax credits are available at 30% of the cost, up to $1,500, by 12/31/2010 (for existing homes only) for:
Windows and Doors HVAC
Insulation Water Heaters (non-solar)
Roofs (Metal and Asphalt)
Biomass Stoves

Tax credits are available at 30% of the cost, with no upper limit through 2016 (for existing homes & new construction) for:

Geothermal Heat Pumps
Small Wind Energy Systems
Solar Panels
Fuel Cells
Solar Water Heaters

Performance and quality standards for tax credit eligibility vary by technology. See the Energy Star web site for detailed information on qualifying products,http://www.energystar.gov/, under Federal Tax Credits for Energy Efficiency.

What is a Tax Credit?

There is an important difference between a tax credit and a tax deduction. A tax credit is subtracted directly from the total tax liability. On the other hand, a tax deduction is subtracted from income before total tax liability is computed. This means that a credit is much more advantageous to the taxpayer than a deduction.

Deciding whether to rent or sell? Here's some things to consider

2010-11-16T17:49:00.000-08:00

So you need to move out of your home but can't sell it for the price you want? Here are some things to consider about renting your home. Prices have dropped back to 2005 levels. If appreciation kicks in again at even 3% a year, it could take 13 years to get back to where we were. Do you want to wait that long? Can you afford to? Considering becoming a landlord? How to evaluate whether to rent or sell your property

Seattle businesses like 2011- From Crosscut.com

2010-11-12T20:07:00.000-08:00

Steven Dunphy reported this week in Crosscut.com about a survey done by the Greater Seattle Chamber of Commerce. Sounds like employers are planning on hiring in 2011. "A survey done with the Greater Seattle Chamber of Commerce finds that far more companies here expect to add jobs than make cuts, and most of the new opportunities will be with mid-sized companies." Here's a link to the article.

What does it cost to sell your home?

2010-10-10T16:02:00.000-07:00

When you sell your home there are costs in addition to paying off the mortgage. And there can be tax implications which you should consider, too, with your accountant. We want to let you know what to plan for. We typically tell people that 8-9% of the sales price goes to costs other than the mortgage and any concessions to the buyers. The selling costs break down to these-escrow fee, title insurance, commission, excise tax, house repairs and possibly buyer's closing costs if they are negotiated.

The escrow fee is set by the escrow company. Escrow puts together all the paperwork for the transaction, creates the settlement form, clears the title, makes sure all loan and transaction conditions have been met and obtains buyer and seller signatures. They take the money from the buyer and their mortgage company and pay off your loans and other fees and give you the balance If you are in another town, you can have documents sent to you for your signature. They make sure you get your check!

Buyer's closing costs. It is not unusual in this market for a buyer to make an offer that has a request for you to pay some of their closing costs such as loan fees, their title insurance, their 1/2 of the escrow fee etc. This can be negotiated as part of the deal. Some buyers may be cash poor and need help with these fees to be able to buy your house. So they do impact your bottom line if you do wind up agreeing to them. Again, they are negotiable. You do not have to pay them unless you agree with the buyer.

Excise Tax. This is a tax that all sellers pay in the state of Washington. We don’t have state income tax here, but there are other ways to get income and this is one of them. The excise tax rate is 1.78% of the sales price of the home. It is equivalent to a sales tax on a home.

Title insurance. This protects against any loss that might occur due to unknown title defects and issues that might emerge after you close the sale. Example of issues may include human error, forged documents, undisclosed or missing heirs, and incorrect legal descriptions.

Document/Recording fees.Unpaid utility bills or assessments. These are additional fees, generally small that are part of the closing costs.

Commission. The commission is paid to the agents for taking a listing to sold. Traditionally, buyers don’t pay a separate commission when they buy. Sellers pay the commission when they sell which is split between the seller's agent and the buyer's agent. The commission can be whatever the seller and agent agree to. Most agents have a percentage that they work for. They have determined what services they provide and their fee – just like any business. (See our posting about how we run our business.) We charge 6% of the sales price of the home which we split with our office, the buyers' agent's office and the buyer's agent.

In our business we always pay 3% to the buyer’s agent side. In fact,our company will not allow an agent to pay a buyer’s agent less unless the sales price is over $1 million. We know the time, information and follow through it takes to sell a property and we value what the buyer’s agent brings to our seller. An agent who brings a prepared, well qualified and eager buyer will help our seller reach their goal.

As the listing agents, our are paid 1/2 of the total 6% commission minus all of our splits and fees paid to our office. We spend weeks, and sometimes several months, preparing a home and the homeowner before the listing is even active. We then work hard to market your home, work with other agents to get it shown then negotiate a deal and work until the home is sold and closed. In Seattle the average market time is 78 days so we'll be working together for a while. At the end,we make sure you get your money and there are no loose ends. We have an assistant who maintains our systems and will make sure you have all your paperwork, and follow the listing and transaction all the way through closing. Our assistant helps us, but we are your contact. You will not be handed off to another agent or assistant.

When your house is listed, who sells it?

2010-10-08T15:46:00.000-07:00

There are a group of agents who sell most of the real estate in Seattle. Out of the hundreds of licensed agents in our area, about 20% of the agents do 80% of the work. We know who those agents are and we market to them with specific emails and follow up. Those agents know us and we know them – they know that when we list a home it will be easy to access, look great and be well priced. The Seattle in-city market has some great agents who know what they are doing. They know we are easy to reach and talk to. We encourage questions and we offer to show the home to an agent’s buyer if the agent is busy or out of town.

Although we do about 1/2 of our business with buyers, when we represent a seller that is what we do. If a buyer comes to us to see your home and does not have an agent, we will happily show the home to that buyer and then refer that buyer to a good agent if they want to make an offer. We want to represent you- not the buyer. We want the buyer to have their own agent. Many agents will try to represent both sides - seller and buyer- but this is not something we would do. While it is legal to do so, it means that the agent can't legally advocate for or give advice to either side. So what is the point?

Feedback on your home from agents who have seen it is important. You need to know if you hit the mark with pricing and with presentation. We know within minutes when an agent has used the keybox on your home to access it. Later that day they will automatically received an email asking for feedback. We have written the questions to get as much information as possible. You also get a copy of their response. We believe in transparency – we won’t hide anything from you – feedback is valuable – good or bad. We also will call agents and get more feedback if they have buyers that might fit your home.

Strong negotiation and people skills are critical once you receive an offer. The goal is to reach mutual agreement between the buyer and the seller. Generally the buyer wants to buy for less and the seller wants to sell for more. Already we’re at cross purposes! But, with a listing price that appeals to a few buyers, right off the bat, your chances of getting someone to step up and meet your terms is increased. The goal is to keep the communication rolling along, stay focused and calm and create a plan that works for everyone. Whatever we’re presented with, it’s our job to be clear about the pros and cons of an offer and try and meet your needs – to sell your home for the best price possible in this market.

Inventory is up in Seattle

2010-10-08T10:25:00.000-07:00

Here is a graph of the latest inventory in the city of Seattle. A 'balanced' market is one in which there is about 6 months of inventory. A sellers' market is where the inventory is less than that and a buyers market it where it is greater. You can see from this graph that inventory was down for the last year or so but is now increasing. The home buyer tax credit encouraged buyers and sellers in April. Unfortunately, it encouraged sellers too late and there was an influx of homes on the market after the credit expired. And they keep coming on. Some are sellers who have to sell because of their financial situation, some are repossessed bank owned homes and some are sellers who want to take advantage of the low interest rates to move up or move down. I think some of the increase in inventory may be related to the fact that there are a number of sellers who think they "can't afford to sell" for a realistic price but still list their house anyway- at a too high price- and it sits on the market for a long time.

Who are your buyers? How do they find your home?

2010-10-07T15:46:00.000-07:00

Much of what we do when we list a home involves “working the system,” – making sure agents know about the home, utilizing the most used online programs to ensure buyers are exposed to your home. And following up with everyone to encourage and foster interest. One of the benefits to being in the business a long time is that we’ve seen the changes and kept up with them. For as much that’s changed, much has remained the same.

Knowing who actually buys and how they learn about listings are key.

• We know that even thought the majority of buyers see a listing online before they ever see it in person. That is why professional photos of well prepared homes and good writing about them are two important things we do.
• The majority of buyers who do purchase are working with agents. The serious buyers, those who “perform,” come forward prepared, preapproved and educated. The prepared buyers are the ones who will see your home in the first week it's on the market.

• There are plenty of Maybe Buyers out there who aren’t working with agents. The majority of time if this buyer writes an offer it’s with no preparation and they aren’t preapproved. They have heard that it’s a Buyer’s market, so they are under the impression that they can throw an offer at something and the seller will take it. Occasionally this may work, but not often. And if your home is one that appeals to the Ready and Willing Buyer, the Maybe Buyer won’t be able to compete with them.

• The online world of real estate has caught on. Now, once a home is listed, it automatically “sweeps,” to hundreds of sites. Buyers have their favorite online sites (usually 2 or 3) they will use those sites to access the new/current listings. The only site an agent can control is their company site and the multiple. There may be sites out there that don’t update their listings regularly, input wrong information, etc. But generally, most of the time the information is swept accurately and is available for the world to see.

• Because we work with buyers we know that Craig’s list is a favorite "go to" site. We update it weekly with our listings, including links to the photo gallery and open house information. We can track the number of hits a listing gets and determine the level of interest.

• The majority of buyers will not use the newspaper to check out listings. It’s not current, nor easily accessed and provides no photos.

There are plenty of places for buyers to see your home on line and read about it. The Ready Buyer is going to see it on line and make a decision within seconds about whether they are interested. They will get in and see whether it's a fit for them. It's our job to make sure that they have their questions answered and their potential objections dealt with the first time they see it. That way they can move forward and make an offer.

Case-Shiller Shows Slowing Growth In Home Prices… Two Months Ago

2010-10-03T09:50:00.000-07:00

Case-Shiller Shows Slowing Growth In Home Prices… Two Months Ago

Our friend Abe Gates at Sterling Savings Bank has some stats from Case Schiller about local trends.

Also they have a program that is quite good for jumbo loans. Check it out.

A course on contesting your assessed value

2010-09-23T09:06:00.000-07:00

Here's a link to a class at Bellevue Community College on how to contest your property assessment. Takes you through the steps.

How does the assessor value your home and land?

2010-09-21T06:00:00.000-07:00

The Madison Park Blogger has done a great job of describing how assessments are made and changed. We get a lot of questions every spring when the new assessments are sent out. Take a minute and read this if you have questions about how it's done. And mistakes are made. You can check your property on Zillow or call us for a quick and dirty opinion if you think it's way off.

Affordability is highest now in a long time

2010-09-20T15:00:00.000-07:00

Lawrence Yun of the National Realtors Association posted his latest predictions on line today. He talks about how homes are the most affordable they have been in a long time to most buyers. Interestingly, he attributes this to the super low mortgage rates as well as low prices. "Again, the principal reason for our current exceptionally high affordability conditions is lower mortgage rates. If prices were to fall 10 percent but mortgage rates creep up to 5.4 percent, then the affordability conditions could actually worsen." He also discusses consumer confidence and points out that regardless of the good affordability of homes, if potential buyers are worried about their income or the economy they may not be willing to make a move into the home market.

An automatic co-pilot to estimate your home’s value

2010-09-17T12:06:00.000-07:00

The Windermere Blog had a good note about the Automated Valuation Systems. Most buyers will look at them when searching for homes to check up on the value. As a seller it makes sense to look at it, too. Here's the link. An automatic co-pilot to estimate your home’s value

How can you lose your Earnest Money?

2010-09-13T15:33:00.000-07:00

As a buyer, you are asked to write a check when you make your offer to the seller. It's called the Earnest Money and it shows that you are willing, or earnest, to put something on the line when you make an offer. At the same time, there are contingencies in the offer you will put together that keep your money safe. You may have an inspection contingency that gives you the right to walk away from a property if there are flaws that you feel you can't overcome, a financing contingency that allows you to get your earnest money back if the loan doesn't go through because of a low appraisal or you don't finally qualify for the loan and you may also have title review or neighborhood review contingencies. Losing your job and then not qualifying for the loan wouldn't result in losing the earnest money.

But there are a few ways you can lose your earnest money and that is very painful so let's tell you how it can happen.

Once you have waived all your contingencies, you have no "legal excuse" to walk away from a deal. If you then decide you don't want the house and don't close on the sale, you will forfeit your earnest money.

In each contingency form in the contract there are timelines and steps spelled out. If you do not follow them closely and perform the steps that you have agreed to, you could be in breach of contract and that will automatically forfeit your earnest money. No excuses. It's our job to watch those steps and timelines and make sure you know what they are.

One of the most common and ignored steps is in the financing contingency. It says you will apply for a loan on the subject property within "X" days- typically 5 days- of mutual acceptance of your offer. So you write an offer and it's accepted on Monday. You must apply for the loan, tell the lender to order the appraisal and sign their docs by Friday. You don't have the right to shop around and diddle around unless you have written permission from the seller. This is why we ask our buyers to have pinned down their lender and potential loan programs well before we write an offer. You'll be hard pressed to get all that together within 5 days.

A common problem is not watching for timelines that automatically expire like a review period of title or homeowners association rules. If you are given information to review and your approval is automatic at the end of a time period- take a good look and review them before then. If you go over by 1 day and then find something you don't like, too bad. You need to tell the seller during the time period that you are getting out of the deal based on that info, before the end of the time period. If you go over and want out, you will forfeit your earnest money to the seller. It's not a breach of contract to let the timeline expire but you no longer have a legal excuse to get out so you'll play for the privelege.

How much money can be on the line? It varies widely. It used to be that we recommended 3% of the purchase price so a $400,000 house had a $12,000 earnest money check. If you are one of 3 offers on a desirable property, it will make your offer look more serious to have a larger number. But there are other factors that help your offer, too, so don't be discouraged if you don't have $20,000 in the bank for that. As a listing agent, though, if someone says they have 20% down payment but they can't come up with a good earnest money, I will wonder about the strength of their finances.

Which Model Is More Accurate : The Case-Shiller Index Or The Home Price Index?

2010-09-13T08:33:00.000-07:00

We hear so many different "facts" about the market but what is real? It is very local and very specific to the price point. The best way to find out what is happening is to talk to someone working in your specific market. Which Model Is More Accurate : The Case-Shiller Index Or The Home Price Index?

When we are pricing a home for sale or working with buyers to figure out just what a good value is for a home, we look very locally- as in the area 1/4 around the home. Seattle's market is quirky and very specific.

Your ARM Is Adjusting Lower. Is There A Downside To Letting It?

2010-09-11T07:10:00.000-07:00

Your ARM Is Adjusting Lower. Is There A Downside To Letting It? This is an interesting post about whether you might want to re-fi with another ARM. I would think not but if you are really going to move within the next five years you could really cut your costs by doing it.

Home Sales Are Back On The Rise After A 2-Month Pullback

2010-09-11T07:04:00.000-07:00

Home Sales Are Back On The Rise After A 2-Month Pullback

Our friend, Abe Gates at Sterling Bank, has the latest on the summer market and some positive thoughts for the fall.

Home prices not diving here in Seattle August 2010

2010-08-31T11:03:00.000-07:00

Here's a link from the PI about Case-Shiller's latest report. Looks like we are fairly mellow. Down from last year but not a huge drop. And level the last month. It remains a good time to buy if it is the right time for you. You need and/or want to move and want to take advantage of interest rates. If you own a home and are moving to another - up or down- the lower prices are a wash. Unless you are someone who bought at the peak with a low down. Then you need to decide whether you can afford to move.

How much is that house, there? Zillow iPhone App rocks

2010-08-19T05:00:00.000-07:00

If I had an iPhone or iPad, this would be the first app I would put on it. Here's what it does. Say, you are walking down the street and you see a house for sale. Hmmmm. How much is that? Look at your phone and the houses around you come alive with statistics. See the Zestimates ( see previous post about accuracy) and see the active listings in detail. Pretty cool!

From zero to $599,000 in a week! What a ride!

2010-08-17T05:00:00.000-07:00

Hans and Kelly called us a few weeks ago and told us that the house they had just rehabbed was almost ready to sell. They had found a cool Phinney Ridge home that was in the estate of a hoarder and had spent the last six months clearing it out and completely remodeling it with new kitchen, baths, master suite etc. It wasn't quite done but they wanted to get it sold. They had thought they would move in but their plans had changed and they were ready to move on. They wanted to move as quickly as possible.

We met with them and walked through the unfinished project and advised on what to complete and what to leave for the purchaser. The basement was unfinished but they did complete the sheet rocking and painted the floor to give a buyer an idea that the large space could be finished. We had them change out a couple of light fixtures and do some yard work but we didn't want them to spend any more money than necessary. They had already done a great job.

Then, we looked at the calendar. We were in the last week of July. August and the real estate "dead zone" were almost on us. Should they hustle and get it ready to go on the market the first week of August or wait until mid September when everyone got back to work? We had just sold a Ballard house for a slightly lower price than we were going to list theirs and it had gone quickly. We knew there were buyers right now. They had our punch list and thought it over and decided to "go for it". So we mobilized!

Hans and Kelly worked their fingers to the bone with their team of workers finishing up the details. The boom box was blasting the mariachi music as the baths were finished, the basement cleaned out and the landscaping tweeked in the front. Even with two little ones and full time jobs they got it done.

We contacted our moving guys to remove staging from a Ballard listing that had sold in a week. Then we all pulled together and moved it out of one house and into the other in one long day. Our assistant, Ashley, was working at the office with paperwork and marketing materials. Photos happened at 3:30 and the listing was on the market 2 days later. I think this was the fastest turnaround we ever had. The paint in the basement was drying at the first brokers' open house!

What made this possible was that we have systems to get our listings going- paperwork, marketing, pricing and staging. We don't always want to have to work this fast but it happened and it looked good when it came on. We knew the market and didn't have to do a lot of new research about pricing. We knew that this price point and style of house had buyers out there. We were ready.

Postscript- After 6 days on the market, Hans and Kelly received two good offers. It sold for the asking price and the buyers had already done their inspection so everything worked easily. Congratulations!

We are self employed and our job is you!

2010-08-12T05:00:00.000-07:00

Did you know that we are self employed? Our business operates under the legal aegis of Windermere Real Estate ( a wonderful company!) but we are sole proprietors who pay all our own expenses including a big chunk to Windermere. When you decide to work with Penny and Rebecca, you get the two of us plus our assistant, Ashley, to make sure all your real estate needs are taken care of. You hire us for our experience in contracts, negotiation, our knowledge of the current local market and our ability to price and stage homes at a level that stands above a majority of other agents.
We love being self employed! We are in it for the long haul. We have built and continue to build a business model that serves our clients well. On the plus side, we are mistresses of our own destinies and can decide who we work with and how. On the minus side, we are only paid when a client buys or sells a home. So while we may meet with 10 people a week to talk about real estate, we may actually only have 1 a week or a month to actually buy or sell a home. And, of any 5 written transactions, only 4 will result in a "closed deal" where we get paid. We work with some clients for 2 weeks and some for a year making the transition from one house to another. While we are only paid when a deal closes, we have expenses of maintaining our business regardless of the income- $30,000 to Windermere, office and technology expenses, staging and marketing expenses, our assistant, ads, our own health insurance, car expenses, self employment and social security taxes.

We prioritize our time to focus on the people who need our help right now but also keep in touch with our many clients who will be making a change sometime in the next year or two. Every week we have chats with people about the market and what their future plans are. We visit homes and make recommendations on remodel projects, financing options and repairs for clients who may never move or may move sometime in the next 5 years. 99% of our clients are repeat business or referrals from clients so we are very motivated to do a good job for each person we work with. It's where our future income comes from!

The See Saw Market 2010 and into 2011?

2010-08-09T11:43:00.000-07:00

First we're down, then we're up, then we're down. Welcome to the "see-saw" market. When the housing "bubble" burst in 2006 nationally (and 2007 in Seattle) prices went down, down, down. Then in spring of this year, we saw it perk up - a result of the tax credit for buyers, the fact that sellers were finally making concessions on price and the incredibly low interest rates. So up it went for a couple of months. Then a lot of sellers listed their homes who had been waiting for the market to improve. And the tax credit ended. Oops! Too much inventory again and no urgency on the part of buyers. So prices stagnated. We think this is going to be the pattern for the next year or so. Inventory up, prices down. Inventory down (or a feeling that interest rates will rise) and prices up.
Right now, it seems to be picking up again a bit. More buyers out looking at houses and offers being made. We think there will be a slew of new listings in September. (NOTE 10/8/2010: Through August and into October, inventory has increased in the city) That will make for more competition and prices will be held down.
There is a large shadow inventory of homes. People who have waited to list their homes because they think the market will go up. They need to move and will come on the market as soon as they think they can sell. That's a lot of people. And add to that the back log of bank owned homes. In rough shape but at very good prices. We don't anticipate prices going up for many months. That doesn't mean that all homes will sit on the market for months. We personally have had homes sell in a week or two the last 6 months. They were priced well and presented well and stood out from the competition.
If interest rates start to move up, we think that buyers will hustle into the market especially at the bottom first time buyer range. That may stir up the market for a month or so but, if rates really go up a point or more, it could keep prices down. Buyers lose 10% of their purchasing ability for every 1% interest rate increase.
Over the next year or so we think prices won't do much. If you are a buyer, buy when it makes sense for you. Get your finances in order and you will find a home that meets your needs. If you are a seller, you will need to look at the competition and price your home to beat it plus prepare it to set it above other homes on the market. If you are selling and buying, the current interest rates make that very attractive. You may get less for your home than you would have before but you will also be paying less.

Is an 80% house good enough for you?

2010-08-01T05:03:00.000-07:00

Buyers seem to be waiting. For what? We're not sure. Interest rates are really incredibly low. Think about this. The 1% rule is that for every 1% interest rates increase, your buying power decreases by 10%. So these low rates combined with the big drops in price have made it "cheap" for buyers. We don't see prices going up in the near future but interest rates are projected to inch up over the next year.

Even with the large inventory of homes some buyers are making offers. Usually for good value or for houses with a lot of emotional appeal. Here's a link to some listings that sold within a week.
Last month we helped first time buyers buy solid good condition starter homes in nice neighborhoods for $275,000 to $290,000. If you had asked us 2 years ago for a good house in that price range we would have sent you to Lynnwood!

Buyers are using the internet to shop and shop and shop. I think they get into that stupifying zone where you take in more and more information but get further away from taking any action. It's so tempting to think that just around the corner is the perfect house for a steal so you don't make a choice of one that works for you. Really, there is never a "100%" house that fulfills all your dreams and aspirations. But there are a lot of houses out there to choose from. An "85%" house that meets your needs and is a good value should fill the bill. Be open to the possibilities. Like internet dating, you are looking for a long term relationship but don't think of it as just a list of attributes. You want a home to make your own.

Does your house have what it takes? And what can you do about it?

2010-07-30T23:05:00.000-07:00

We list a lot of houses and over the years buyers have gotten more demanding about what kinds of amenities they want and the quality of finishes.There are many homes for buyers to choose from and they dismiss a home for all kinds of reasons. Some reasons make sense, others don't. As sellers, we have lived in our homes for years and may not see any drawbacks to our floorplans or location but buyers have different eyes.

When we work with buyers we use our experience to help them choose a home that will work for them and any future purchasers. This means a house that has at least 3 bedrooms and 2 bathrooms at a minimum. Then the next thing is a kitchen that has a functional layout and hopefully a space for a family room attached. A basement, finished or unfinished, that is dry. A garage is something that people are wanting more often now, too. Not on a busy street. If they are first time buyers and the house doesn't have all those things, does it have a floor plan that would allow it in the future? We look to see if they can grow in the house and make improvements later that make sense and wouldn't be prohibitively expensive.

So you want to sell your home? What if your house is perfectly livable to you but doesn't have these attributes? You have two good bedrooms and an unfinished basement with windows? Let's finish it more thoroughly but cheaply and paint it and stage it as a third bedroom. You have a house without a garage on a residential street? Let's tout the fact that there is plenty of parking available. Or maybe you can make a space on your lot for offstreet parking. We'll look at zoning to see if a garage could be built on the lot in the future. Your kitchen is tiny and has three doors and no counter space? Hmmm. That will require some clever staging. We'll completely clear the counters and declutter the space. Maybe add a butcher block cart from Ikea for more work space.

Now there are some things you can't do anything about without doing a huge remodel (not smart) or it's just not possible to fix any way any time. These are what we call "Fatal Flaws". Doesn't that sound horrible? Price is where we address these problems. A house has no access to the basement from inside the house. Fatal Flaw. The house is at the top of 30 stairs on a hill and there is no level access into the back from an alley. Fatal Flaw. A 4 bedroom house with one bathroom and no easy place to locate a second bathroom. Fatal Flaw. When you have a house that has a floorplan that is not easily remodeled to get to what is wanted now -that's a flaw that can't be fixed.

The only thing to do with a house that has this king of problem is to stage it well and then price it competively. If it's a good enough deal buyers will overlook the "flaw" or figure that for the difference in price they can fix it. Sometimes we will get bids to fix a flaw that would be too expensive for the sellers to do prior to getting an offer. Then buyers will know that adding a bath would cost "X" amount of money and can figure it into their purchase decision.

Madrona is the place for a stroll this Saturday

2010-07-30T17:00:00.000-07:00

I love Madrona! I can walk there from my house and, once I get there, there are so many tasty restaurants and groovy shops. Dating myself with that adjective! I am going to host an open house on 34th on Saturday July 31st 11-1 at 1612 34th Ave. A pretty and spacious Colonial for $709,000

I like to draw so I decided to make a little map of the neighborhood with the shops and restaurants on it. Pretty cute, I think. I'll be handing them out on Saturday. Stop by and get one! And then hit the shops for some cool stuff.

The Dream of Home Ownership

2010-07-30T13:16:00.000-07:00

Do you dream of owning a home? What does that mean to you? Why do you want to buy your own home? For a long time it's been touted as the way to get ahead and invest in your future but people buy for all sorts of reasons. I was just reading on Zillow Forum about "Is there a paradigm shift going on?" And contrary to the usual "tooting my own horn" postings in there, the agents wrote honestly about why people buy homes. For some it is solely for investment purposes and that has gotten harder to accomplish. But most people buy rather than rent because the want to control their own homes- to not worry about having to move and to be able to make it their own. We all want to belong and feel a sense of place. I think owning a home does help with feeling anchored. Sometimes the house you should buy for living in is not the house you'd buy for the ultimate investment value. That's a trade off you need to make with your eyes wide open.

Buying a house is a big step and should be taken with some self awareness about just what you are trying to accomplish. Will owning a home solve your problems? Probably not. As I like to say...and it's been said so many times..."Wherever you go, there you are. " Be honest with yourself. Be sensible with your finances.

Some people are not eager to be tied down so it's not for them. The super hot market before let people buy and then easily move on if they wanted to but that's not the case now. Now it is not such a liquid asset and you can't just decide to buy and sell after a year and make money or even break even. You need to buy a place you plan on owning for a while.

Seattle looks good compared to other cities between 2010 and 2013

2010-07-27T17:07:00.000-07:00

Here's a quote from a Yahoo piece about retirement savings. In the near term, Washington has the country's most promising real estate market. Home prices there are expected to surge by a whopping 6.6 percent per year between 2010 and 2013, according to Moody's Analytics, providing residents who are downsizing for retirement with opportunities to put away some extra cash. Still, for new home buyers, getting a foot in the door can be hard given how expensive the Evergreen State's housing market is. The median home price there is upwards of $235,000. Another bright spot: Washington doesn't tax capital gains or wages. One of the state's bigger problems is its unemployment rate. At 8.9 percent, it's still below the national average, but it's high nonetheless.

The article supplied by US News talks about American's nest eggs after/during this recession. It's pretty scary what has happened to people's net worth and a chunk of it came from real estate. Apparently 43% of workers have less than $10,000 saved towards retirement.

Homes in "walking" neighborhoods hold their value

2010-07-12T15:27:00.000-07:00

There's value in living in a neighborhood where you can use your feet to go to the store. The Wall Street Journal says this - Real-estate prices are reflecting the new interest in walking distances. A study published in August of 90,000 homes across the country by nonprofit CEOs for Cities, a group of urban-redevelopment advocates, found that having more amenities in walking distance can boost home values. As measured by Walk Score, walking-distance amenities raised values by as much as $3,000 for a one-point increase in rankings. Link to the article And here's Walk Score's website. You can put your address in and find out how walkable you are! They have some major weaknesses, though, such as not including information about topography. In our Capitol Hill neighborhood, being on the bottom of the hill is less walkable than the level top.

Now, let me say more on this- Who cares how it affects your home values? What matters is that you get off the couch, out the door and walk! For your physical and mental health. Getting outside every day for at least 45 minutes opens up your mind and gets the blood flowing.

Rental Market in Seattle is looking good for landlords

2010-06-28T10:50:00.000-07:00

Seattle is a good market for apartment owners and it looks like it will remain so according to the Puget Sound Business Journal. To quote the article about our local rental market, "This just might be the first rental market recovery sparked in part by frustrated parents."

GenY is a large group and they are just reaching the age where they are moving out on their own (hopefully). Because buying a home is difficult and their employment prospects are tough, they are moving out into rentals. Also, former homeowners who were forced out of their homes by foreclosure are now rentals. And baby boomers are renting after selling their family homes.

Open House on Saturday- Small and simple with style

2010-06-25T06:00:00.000-07:00

Our neighbor Larry Wilcynski of Windermere just listed a cool very compact townhouse on East Ward Street. Since I'm always thinking how can we live smaller and simpler I volunteered to do an open on Saturday 2-4pm. Here are some photos to check out. This is a great down size house or alternative to a condo. You have a tiny little backyard and deck to hang out in. An expansive view of the Cascades and the Arboretum but very little maintenance. $425,000.

Bloomberg Report on Interest Rate Slide- 4.375% on a 30 year fixed?

2010-06-24T10:01:00.000-07:00

Our friend Abe Gates of Golf Bank sent out this link to interest rate news and a note - "So if you’re on the refi fence, now is the time to make that jump. If you hadn’t thought much about it until now, we would be happy to run some numbers for you to see if it makes sense. Also ask us about looking into switching that 30yr fixed mortgage to a 15yr term – HUGE money saver." I know we'll be looking into it. And we are seeing more first time buyers starting the process because houses are really truly in the affordable range now in the City.

Remember that rates change frequently and even though they have been down a while, they can go up. If you read this posting next week or in a month check the latest rates.

What matters when you sell your home? What are the biggest mistakes you can make?

2010-06-22T05:00:00.000-07:00

Sometimes it is a good idea to hear what other people say about the home selling process. I've been cruising the About.com website and they have some good articles about getting your house ready, pricing and marketing. Here's a quote from them about price- "The truth is it doesn't really matter how much money you think your home is worth. Nor does it matter what your agent thinks or ten other agents just like her. The person whose opinion matters is the buyer who makes an offer. "

Here's the link to the article that talks about the dangers of overpricing and tells the story of an overpriced listing. Yikes! It's eye opening.

Find out more about your credit score

2010-06-21T10:39:00.000-07:00

When you apply for a loan to refinance or to purchase a home, they "pull your credit" report. And what is on it is what the lender bases their fees to you on. Home buyers with lower scores will be charged higher interest rates because lender are more at risk. So, if you are thinking about buying or refinancing go online and get the info in your file. Make sure it's correct and also get an idea of where you will fall in the range. Here's a link to Credco- a credit service that many lenders use. It has loads of information on credit- what it is, how to improve it and what it means. Take a minute to look at it. It will be time wisely spent. You can save thousands of dollars over the life a loan just by having better credit.

How is Light Rail Impacting Rainier Valley?

2010-06-17T05:38:00.000-07:00

It's here! For years sellers and agents in the Rainier Valley and Beacon Hill neighborhoods have been waiting for when Light Rail comes. Hoping that it will connect their neighborhoods to the center of town and lead to increasing property values. Unfortunately, it arrived just when the market disappeared. So we are not seeing any particular boost for the neighborhoods yet.

From the PI " A few new apartment buildings are beginning to rise, promising more riders for the 15.6-mile system opened last summer. Some travelers have discovered new bars, restaurants and sights a few blocks off the line, and more building is promised. The soured economy, however, still has its boot on Seattle's neck as well as the country's, limiting housing and business growth along the rail corridor until a better time. It may take years for rail's benefits to reach the neighborhood that endured years of its construction".

As development happens around the station sites and the infrastructure nearby catches up, we hope (again) that the benefits will manifest themselves. Until then, don't look for a cash prize for living near the light rail- unless you're really within a short walk. That is a good thing.

Mortgage applications are down? Have you refied yet?

2010-06-16T17:00:00.000-07:00

After the craziness of the homebuyer tax credit that ended in April, mortgage applications for new buyers are down. If you have a mortgage with a higher interest rate and you're planning on staying in your home, now might be a good time to re-fi. Here's the latest on the numbers. We're still under 5%!

Where are people moving now?

2010-06-16T11:01:00.000-07:00

This is a very intriguing link from Forbes Magazine. You can click on any county/city and see if more people are moving to it or away from it. I tried it with Seattle versus LA. Moving to is represented by black lines and moving from by red. Seattle's map is much blacker than LA or any Californian counties so we are having more people move in than move out compared to other areas. Overall it looks like a lot of the people moving to Seattle area are from the west coast but a fair number do come from the east coast.

Life after the homebuyer tax credit- Gardner Report June 2010

2010-06-10T14:59:00.000-07:00

Matthew Gardner of Gardner Economics ( you met him at our Winter Economic Report Evening) has posted an article on the Windermere Blog about his thoughts about the next 6 months.

"Much has been said about the expiration of the homebuyer tax that occurred at the end of last month. Everything from a move to extend it through 2010 (a very bad idea in my opinion, but one that didn’t stop the state of California from extending their own $10,000 credit through this year), to arguments saying that all we are doing is stealing future demand. So what will actually happen?"

Read more of what he sees as the positives and negatives of our area.

Peeking over to the dark side- The Shadow Inventory

2010-05-26T06:00:00.000-07:00

Home sales are up, inventory is not out of control, prices are down and interest rates are down. We should feel pretty darn good? Right? There is a shadow falling over Happy Valley - the Shadow Inventory. We all know people who want to sell sometime in the next year or so. Either they are transferred for work, they need a bigger house or they are "right sizing" to a smaller house. But, because prices are down, they are loathe to put their house on the market. They are waiting for the right time.

What is that right time? If prices are down and you are a seller who will also be buying after you sell, you will get less for your house but you will pay less for your new place. Conversely, if you wait until prices rise (and we doubt that will happen in any significant way in the next few years), whatever you plan on buying will also have gone up. You'll be able to afford more house now or later. The spread between buying and selling will probably stay pretty constant.

If you are selling and getting out of real estate altogether, the new lower prices must feel like someone reached into your pocket and took out cash. It's hard to contemplate "losing" that appreciation your home got in the boom. It was paper appreciation and now it's gone. The question for you is whether you can wait 5 years and take a chance that appreciation will kick back in at that crazy rate. Plus, higher interest rates will continue to hold down what buyers can afford and we don't think that the low low rates we have now will continue.

Many sellers are out there - playing the waiting game- and that inventory of homes that will be on the market sooner or later. It is going to hold prices down . We hope they won't drive them down further but, if a lot of them are sellers who have to sell because they can't afford their mortgages, prices could be depressed by them. Here's a link to an article in Money Online about the Shadow Inventory. They talk about a "sawtooth bottom" where prices go up, homes come on and inventory increases, then prices go down....then it happens again and again.

Money says Existing home sales soar in April

2010-05-25T15:00:00.000-07:00

Existing home sales soared in April as home buyers scrambled to claim tax credit that expired at the end of last month, according to a real estate industry report released Monday. Here's link to the entire article in Money Online.

In our local market we did see a frenzy of first timers and move up buyers make offers the last couple of weeks in April. We anticipate that the numbers of "sales" which are the actual closings of sales made in the pre-April 30 time period will remain high through June. Open houses are slowing down now that the deadline has ended. Buyers are looking and looking again at homes in the $600-800K price range right now in the Madrona and Capitol Hill areas for example. Agents are showing buyers the same house over and over yet the buyers are taking their time pulling the trigger. Without the deadline, there is the the feeling that if they just look long enough, the perfect house will come along. It's like on line dating. They have a list and no one ever measures up to the vision.

This summer will be interesting. We think that buyers in the lower price ranges will be buying. We are getting lots of calls from people who are thrilled that they can afford a home in the city. We just closed on a house in West Seattle (nice part of it, too) that was $275,000 but appraised for $320,000! Now that was exciting! Their interest rate was 5% on a 30 year fixed rate loan. Another buyer has just locked in a loan for 4.75% on a house under $300,000 in North Seattle/Haller Lake.

Interest rates are as low as they get so it is a good time to consider doing a re-fi in you qualify and plan on staying in your home.

Fun with Plants and Friends on May 1

2010-05-13T10:30:00.000-07:00

May 1 was a slightly chilly morning but we still had a great turnout of friends and clients(same thing) for our Plant Exchange. I think we've been doing this for at least 10 years now and it's such a gift. I have plants sprinkled throughout my garden that came from the starts people brought to the Exchange in years past and everytime I see them I get to remember that person. It's like a perennial gift- literally. Of course, some of the plants wind up being ones that might be just a little too successful. At one point we thought we should rename the Exchange the "Invasive Plant Exchange" but I think we've weeded out that problem. :-) This year we really powered down the donuts which I truly appreciate. There is nothing more daunting that having a donut party and being "forced" to eat a dozen donuts after everyone leaves! Thanks!So next year when you receive the invite we hope you will join us for some gardening fun! It's a great way to get some new plants for free.

Buyers not spending enough time researching loans

2010-04-30T10:18:00.000-07:00

Zillow has posted a survey showing that the average home buyer spends less than 5 hours researching their home loan options.

“The last few years should have driven home the lesson that understanding one’s home loan is critically important, but mortgages continue to be something that most people don’t want to spend time thinking about,” said Dr. Stan Humphries, Zillow’s chief economist, in a news release. “Not understanding a home loan can have catastrophic consequences.

We also want to add our 2 cents to the discussion of loans. In this market, it is crucial to use a lender who can actually get the loan closed! Sounds like a no brainer but we are finding that inexperienced lenders and lenders sitting in bank branches really don't have the know how to navigate the new and more restrictive rules for loans. You don't want to make an offer on a house and have the deal fall apart at the last minute. You need a competent thorough loan officer who makes sure they cover all the bases.

Here's a link to the complete blogpost from Zillow.

The Fun Index

2010-04-26T07:47:00.000-07:00

Did you know that Seattle ranks number 7 in the Fun Index by Portfolio.com ?
Portfolio.com/bizjournals created a comprehensive formula to evaluate the opportunities for fun in the nation’s 100 largest markets.
The process began with the collection of federal statistics for 14 relevant types of businesses, from retail stores and restaurants to gambling casinos and golf courses. Each market was graded on both the volume (total number) and the concentration (rate per 100,000 residents) of such businesses. Check out this The Fun Index to see how we compare.

Who is planning on buying a home this year?

2010-04-22T07:00:00.000-07:00

Here's an article about who is planning on buying a home this year.

"More than 17 percent of potential home buyers say they plan to purchase a home in the near future as an investment, compared to just 5.6 percent in March 2009, the survey found.
Owning a residence in remains a goal for many more potential buyers.
• 21 percent of consumers report they plan to purchase a home in the next 12 months to five years.
• 7.9 percent plan to purchase in the next two years.
• 49 percent of all home owners would buy another home today if they could sell the one they currently own for what they paid for it."

What is a good deal in today's market?

2010-04-21T07:00:00.000-07:00

The Seattle Market has followed national trends - prices fell and buyers were in the driver's seat. Getting a "good deal" was the most important thing to buyers. They were driven by the fear that they were getting "taken" and paying too much. The question has been "What is a good deal?" Frequently, it is a home that is in perfect condition and is listed for a price that someone would have paid in 2005 or below. And buyers have access to previous sales numbers so they know what a house sold for in 2005.

Now, prices seem to have hit bottom and interest rates are starting to head up. Buyers are coming out from hiding and are looking and making offers. And in some neighborhoods in town there are multiple offers again on properties that are emotionally appealing. Buyers still want a good deal but they are letting themselves get emotionally involved with potential houses and want to have that warm fuzzy feeling about what they are purchasing. Here's an article about New York apartments and how the buyers are now making offers that are not totally based on the numbers. Pretty interesting.

Energy Tax Credits in 2010 - You can get up to 30% of the cost

2010-04-20T15:00:00.000-07:00

Are you thinking of replacing old leaky windows, doors or skylights? Qualifying products purchased between January 1, 2009 and December 31, 2010 are eligible for a tax credit equal to 30 percent of the product cost. Installation is not included; be sure to obtain an itemized invoice from your retailer or installer. The maximum amount of homeowner credit for all improvements combined (including roofing, insulation, HVAC, and water heaters) is $1,500 during 2009 and 2010.

Check out this link for the details.

New stats from Zillow- Compare neighborhoods

2010-04-19T11:04:00.000-07:00

New charts with new numbers. Good for overall trends. You can choose to compare any 4 neighborhoods you want.

Folks are feeling more confident about housing prices- Are you?

2010-04-16T07:22:00.000-07:00

This is an interesting set of statistics. Last April 63% of people polled by Gallup thought that housing prices would raise or stay the same. Of course, that was not the case yet. Now prices do seem to be solidifying in some markets - Seattle included. And there are more people who are feeling confident.

This article in the Biz Journal tells how 77% of people think that housing prices will stay the same or increase this year. "Gallup’s survey found that 72 percent of Americans think it’s a good time to buy a new home, slightly more than last year — 71 percent— but 19 percent more than in 2008. Still the report highlighted the lingering issue of job creation as an obstacle to Americans feeling financially secure enough to buy a new home."

Time for our Spring Plant Exchange! May 1 near the Arboretum

2010-04-15T15:00:00.000-07:00

Ta da! Time to start thinking about gardening and getting outside. We want you to be at 2507 E Helen on May 1 from 10am to 1pm.

Here's how it works- If you are a gardener, you probably have plants you are tired of or have too many of. Dig up a few, put them in pots or bags and bring them. Then take some plants home that someone else brought. I know that I'll have anemones, day lilies, Glorybowers, mint....to share. It is a great way to increase your plant variety for free!

If you are a new gardener, don't worry about bringing plants. Bring yourself and a willingness to take some plants home with you. You'll get lots of advice, too.
Plus we have all the gardening books out and we serve Top Pot Donuts and coffee to keep your strength up.

We look forward to seeing you.

Op Ed on Diversity in Rainier Valley

2010-04-06T16:00:00.000-07:00

This is an interesting posting about 98118 where our friend Merritt Green lives, along with others of our circle. We are always bullish on Columbia City Southend neighborhoods but find it hard to get clients to go there. "Too far away" is the cry but now the light rail zips right up the center. Check it out.

Opinion: America's Most Diverse ZIP Code Shows the Way - AOL News