Debra Sinick

Archive for August 2008

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Tips to Help Curb Identity Theft

In For Buyers, For Sellers, Real Estate Tips, financing, real estate, real world real estate on August 27, 2008 at 9:04 am

One of my clients, a home seller, just contacted me because he’d received a letter from the escrow company handling the closing of the sale on his home. Was he supposed to give the information requested on the form to this particular escrow company?  Escrow companies traditionally send a letter to each party in the transaction, buyer and seller, disclosing the escrow company’s involvement in the sale.  The escrow company is the independent third party company which ensures the proper documents are signed by both the home buyer and home seller to close the sale.Escrow will send a form with such questions as your social security number, your mortgage lien holder, permission to contact the mortgage company, home owner’s dues, etc, etc.   The home seller was exercising due diligence.  He wanted to know if the questions asked in the letter were appropriate and if he should pass along his social security number to this company. 

Giving out your social security number and personal financial information is always a “big deal.”    He was right in asking if this was proper and appropriate.  Identity theft is becoming more of a problem and people should exercise “due diligence” before giving out personal information. 

Here’s a list of suggestions to safeguard against identity theft.  I received this list from Patrick O’Neill at Commonwealth Title:

1. Next time you order checks have only your initials printed instead of your first and last name. If someone takes your checkbook they will not know how to sign your check… but the bank will.

2. Do not sign the back of your credit cards, instead write Photo ID Required.

3. When writing checks to make a payment on a credit card do not put the complete account number in the “for” line, instead just put the last four numbers.

4. Put your work phone number on your checks instead of your home number and use your PO Box or work address instead of your home address.

5. Never have your social security number printed on your checks.

6. Place the contents of your wallet on a photocopy machine. Do both sides of your license, credit cards, etc. This way you will have a record of everything contained in you wallet in the event that it becomes stolen.

7. If your credit cards are ever stolen, file a police report immediately in the jurisdiction that the theft took place. This proves to creditors that you were diligent in trying to recover the cards. 

8. If your credit cards are stolen make sure to call the three national credit reporting agencies and place a fraud alert on your name and social security number.

 

Equifax: 1-800-525-6285

Experian (formally TRW) 1-888-397-3742

TransUnion: 1-800-680-7289

Social Security Administration: 1-800-269-0271

 

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New Tax Credit Can Benefit Many First Time Home Buyers

In For Buyers, Mortgages, Real Estate News, Real Estate Tips, financing, real estate on August 25, 2008 at 9:08 am

I asked Steve Tedrow of Windermere Mortgage Services to give his opinion, along with some of the facts, about the new tax credits available to first time home buyers.  The program is part of The Federal Housing and Economic Recovery Act of 2008.  Here’s what Steve said:

“I think first time homebuyers need to take a serious look at the new tax credit available to them.  This could be very beneficial to many people.  Any individual earning less than $75,000 per year or couple earning less than $150,000 per year can take advantage of the $7,500 credit.  A tax credit means that once you calculate your final tax liability, you reduce that amount by $7,500.  So, if you would have owed $1,500, then you deduct the $7,500 and would receive a tax refund of $6,000.

Some people complain that this is actually a tax free loan since the credit needs to be paid back over 15 years (or when the house sells).  But their analysis would be short-sighted unless they realize that the tax benefits of home ownership are normally much greater than the $500 per year which would get repaid.

For many people, it is difficult to come up with a down payment.  Consider this….a 3% down payment on a $250,000 condo is $7,500.  People should consider borrowing from their 401k or against another asset in the short term, knowing that the loan could be repaid at tax time.

If you are a first time homebuyer, I recommend you take a serious look at the tax credit.  It could be the key to many for getting into their first home.  There are many extraordinary housing deals in the marketplace right now.  Take advantage of those deals before interest rates go up and erode your buying power.”

Steve Tedrow

Windermere Mortgage Services

(425) 576-5461

 

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Home Staging Gone Awry Or How Not to Have Fun Selling Your Home

In For Buyers, For Sellers, Real Estate News, Real Estate Tips, real estate, real estate marketing on August 21, 2008 at 2:14 pm

  This is really bad staging, but it’s nothing compared to the staging problems in this video on the Sellsius real estate blog .  Here’s an example of bad decision-making and really bad home staging combining to create a terrible home selling situation.   Something like what’s portrayed in the video rarely ever happens, but home sellers should take the right steps to minimize any problems.  

The video proves the point that in real estate, as in life, many things can happen and many things can go awry.   However, you can limit your risk by making sure you pick the right staging company to stage your home.  In 99% of the cases, staging is a huge benefit to getting a home sold at the best price the market will bear.  I always recommend staging a vacant home. I’ve got a list of great staging companies I know I can count on to bring quality furniture and design into an empty home, bringing more $$ to the closing table for a seller.

To help minimize problems and get the best service, seek the advice of a real estate agent who can recommend good staging companies or get references and photos of staged homes from other sellers.  If possible, see homes staged by the staging company.  Check the staging company out with the Better Business Bureau. Review the staging contract and contact an attorney if needed.  Most staging companies do a stellar job, but be careful out there!

And, in case you haven’t figured it out, don’t let someone move into your home while your home is for sale!  In the State of Washington, there could be a whole host of issues with landlord-tenant law.  Certainly no way to have fun or get your home sold!

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Top Ten Ways to Get a Deal Buying New Construction Homes in Today’s Market

In For Buyers, Remodeling and style trends, real estate on August 14, 2008 at 2:26 pm

 

 

 

I recently received an email from a buyer who was interested in a new construction neighborhood in an area where I actively sell homes.  This buyer wanted to know whether to buy new construction in this market.  Here’s what I told him to consider in this market:

 

  1. Pick the best of the lot because you make your profit the day you buy your home.  Unlike driving a new car off the lot which immediately depreciates, your home can appreciate or depreciate based on the market conditions AND the choice you make.
  2. Purchase from a known builder with a proven track record.
  3. Negotiate on pricing and/or upgrades.  The sales price will be a business decision to the builder, so don’t hesitate to make an aggressive offer.  If the price doesn’t work, the builder will counter the offer.
  4. Look for special builder financing.  Some builders have special pricing available for jumbo loans.
  5. Buy a home in a good location, close to transportation, shopping, and schools.
  6. Pick a good lot.  Stay away from lots that are marginal.  Lots that back to busy roads or are under power lines, as an example.
  7. Look for standing inventory, completed homes the seller will want to get sold.  Prices are more negotiable for any completed homes.
  8. Pick a functional, good floor plan.
  9. Pick a home with lots of light and openess.
  10. Make sure the home has great finish work and has the most up to the minute features.
  11. Have the home inspected when you buy it!

Okay, so I came up with 11 items.  Inspecting the home is critical, so make sure you do it.  Over the years, I’ve sold new construction homes in which the insulation was missing in the attic, the dishwasher was not hooked up, and the furnace had not been cleaned out after construction.  All easily fixed.  However, if the issues were not remedied before buying the home, they could have become major problems later.

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What Were The Chances of Selling a Seattle/Eastside Condo in July, 2008?

In Bellevue Real Estate, Bellevue, WA, For Buyers, For Sellers, Issaquah Real Estate, Issaquah, WA, King County Real Estate, King County, WA, Real Estate News, Redmond, Sammamish, WA, Sammamish, WA Real Estate, Seattle real estate, WA, WA real estate, Woodinville, WA, Woodinville, WA Real Estate, market statistics, real estate on August 12, 2008 at 2:26 pm

Sellers had a 12.7% chance of selling a condo on Seattle’s Eastside in July of 2008. ( click on 2008 year to date statistics in the link above for a chart showing the condo report)

July, 2008              1476 condos for  sale, 187 condos sold, 12.7% chance of selling.

June, 2008            1427 condos for sale, 194 condos sold,  13.6% chance of selling.

May, 2008              1472 condos for sale, 211 condos sold,  14% chance of selling.

July, 2007                 918 condos for sale,  332 condos sold,   37% chance of selling.

The chances of selling a condo have been pretty consistent for the last three months, varying only by a percent.  The number of available condos shrunk a little in June, but is now slightly over the number of condos available to buy in May.

Are condo prices still going up?  Yes.  However, this past month and in May,  the increase in value was less than one percent.  Increases in value have slowed down considerably, while the inventory and the chance of selling has stayed fairly constant.  Cream puffs are selling, other condos are taking a very long time to sell. If you are buying, consider the best condo with the least amount of issues. 

Is the condo located near employment, transportation, schools, shopping? 

Is the condo in good condition?

Is the condo in a quiet location?

Does the condo have a strong amount in reserves?

Are the condo dues low?

Do the dues cover exterior maintanence, water, sewer, and garbage?

Anything else you should look for?  Do let me know.

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What Were The Chances of Selling Your Seattle/Eastside Home in July, 2008?

In Bellevue Real Estate, Bellevue, WA, For Buyers, For Sellers, Issaquah Real Estate, Issaquah, WA, King County Real Estate, King County, WA, Kirkland, Local news and information, Real Estate News, Redmond, Sammamish, WA, Sammamish, WA Real Estate, Seattle, Seattle real estate, WA, Woodinville, WA, Woodinville, WA Real Estate, market statistics, real estate on August 12, 2008 at 1:58 pm
The chances of selling a home on the Eastside in July 2008 ranged from a low of 5% to a high of 16%, with an average 12.5% absorption rate. (The absorption rate is the number of homes for sale in any given month divided by the actual number of homes sold that month.) Numbers will be rounded off to the nearest whole number, unless the number is exactly .5% between two numbers.
Here are the real estate statistics for single family home sales activity on Seattle’s Eastside:
July 2008               4332 homes available,  543 sold,   12.5% chance of selling
June 2008              4154 homes available,  635 sold,  15.2 % chance of selling.
May 2008              4349 homes available,  522 sold,  12% chance of selling.
July 2007               3253 homes available,   773 sold,  23.8% chance of selling. 

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(click on the each area name for a chart showing the latest stats in the area)

The plateau:  Sammamish, Issaquah, North Bend, and Fall City

Sellers had a 12% chance of getting a home sold, DOWN from 17% last month and DOWN from 22% last year.  Median home prices were up by 1%, from $569,800 to $575,000.  Inventory was up by 18% and sales declined by 33.5% from last year.

West Redmond/East Bellevue

Sellers had a 16% chance of getting a home sold, DOWN from 23% last month, and DOWN from 34% last year.  Median sales price decreased from $599,000 to $574,990, a decrease of 4%.  Inventory was up 70% and sales were down 20%.

South Bellevue

Sellers had a 14% chance of selling a home, UP from 12.5% last month and DOWN from 23% last year.  Median price decreased by 19% to $604,950 from $749,975.  Inventory was up 24% and sales were down 24.5%.

Woodinville/Bothell/Kenmore/Duvall

Sellers had a 15% chance of selling a home,  DOWN from 15.5% last month and DOWN from 26% last year.  Median price was down to $475,000 from $550,000, a 14% decrease.  Inventory was up by 35% from last year and sales declined by 23%.

Kirkland

Sellers had a 10% chance of selling a home, DOWN from 16.5% last month and DOWN from 22% last year.  Median price declined by 25%, from $757,475 to $569,000. Inventory was up by 25% and sales were down by 38%.

West Bellevue

Sellers had a 5% chance of selling a home, DOWN from 9.5%, and DOWN from 19% last year.  Median pricing decreased by 29% to $1,354,975 from $1,748,000.  Inventory increased by 85% and sales declined by 50%.

Redmond/Education Hill/ Carnation

Sellers had a 14% chance of selling a home, UP (barely) from 13% last month, and DOWN from 22% last year.  Median pricing decreased by 15% from $644,435 to $549,375.  Inventory increased by 18% and sales dropped by 25%.

The activity for May  is included at the top of this article because July’s market performance is very similar to the market performance in May.  June was a stronger month for sales for most of the Eastside neighborhoods than July has been.  South Bellevue, and Education Hill, Carnation, and Union Hill areas were all stronger performing areas, but only by a fraction.  Every other area of the Eastside showed less of an absorption rate than in June.  West Bellevue, Medina and Clyde Hill, our most expensive areas, were hit the hardest with the biggest decline in activity and pricing. 

To determine the most realistic view of the market, look at several months worth of data.   Pay particular attention to the amount of homes for sale in your area.  Regardless of what’s happened in the previous months, make sure you know the actual competition in your area before establishing a sales price and going on the market.

Remember sellers, it’s price and condition in this market.  Homes are selling, but as we all know, there’s competition. Be the best home out there and your home will sell.

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From My Inbox: Luxury Continues to Come to Bellevue’s Bravern on Seattle’s Eastside

In Bellevue Real Estate, Bellevue, WA, Local news and information, Real Estate News, real estate on August 6, 2008 at 2:09 pm

 The following is excerpted from a press release from Margaret Nicoll at Gruman-Nicoll and Tami Elwin at Schnitzer West: 

Top-Rated Luxury Brand To Open

First Northwest Boutique at The Bravern

 

 

BELLEVUE, WA August 5, 2008 – When Schnitzer West opensThe Shops at The Bravern in September 2009, it will be home toBottega Veneta, rated the number one luxury brand in a recent survey conducted by the Luxury Institute.   The Bravern will be Bottega Veneta’s first location in the Pacific Northwest where the leather goods purveyor joins a star-studded line-up of firsts for the region, including Neiman Marcus, Jimmy Choo and Red Door Spa.

“Bottega Veneta epitomizes the character of The Bravern in its commitment to fashion design, extraordinary craftsmanship and personal service,” says Tom Woodworth, senior investment director with Schnitzer West, developer of Bellevue’s only outdoor, upscale lifestyle shopping village.

“With the addition of retailers such as Neiman Marcus, Bottega Veneta, Louis Vuitton, Jimmy Choo and Red Door Spa, Schnitzer West has assembled a line-up that both validates the strength of the Pacific Northwest economy and will position The Shops at The Bravern and Bellevue among the top shopping destinations in the country,” says Maria Royer, principal with commercial brokers Real Retail in Seattle.

 Currently under construction and scheduled for completion in 2009, The Bravern’s vibrant outdoor village will feature gracious arrival courts and European-style piazzas.  The 1.6 million square foot development in downtown Bellevue, WAwill include approximately 305,000 square feet of fashion-leading retail and restaurants anchored by a 125,000-square-foot Neiman Marcus, 455 Signature Residences in two elegant condominium towers and two office buildings, which have been fully leased to Microsoft. When finished, the five-acre site will accommodate 2,300 Microsoft employees, approximately 1,000 homeowners and employ between 300 and 500 staff among the retail shops and services. The project also will include a 35-acre subterranean parking garage with 3,100 stalls.

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When I read the above press release, it is clear that even during this economic slowdown, Bellevue continues to be the stronger economic region of the Seattle/King County area.  Luxury brands new to the area are choosing to move to the eastside, rather than to Seattle, because of this point.

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More Ways to Use Google for Real Estate

In For Buyers, For Sellers, Real Estate News, real estate, real estate marketing on August 6, 2008 at 10:30 am

Look for information on Google?  Duh! It’s second nature to all of us these days, but here are some other ideas about how you can you use Google in real estate. Kris Berg’s piece on Inman News blog  talked about a multiple offer situation in which the agents bringing the offers were googled.  The agent who didn’t appear professional online to the seller did not get their offer accepted.  Hmm.. never thought of checking agents out online before accepting offers, but this is a great idea.

Want to know more about a potential listing agent?  Google the agent to find out more about the agent’s online presence. 

  • Does the agent have a personal website (in this day and age, one would hope)?
  • Does the agent blog about real estate? 
  • Does the agent appear knowledgeable about real estate from what’s written on the blog posts? 
  • Does the agent appear to be trustworthy and competent?
  • Is the agent doing any business?
  • Is the agent’s online marketing strategy evident? 
  • Does the online marketing look fresh, interesting, and relevant?

When you get an offer for your home do you want to know more about your buyer? 

Past sellers have googled the buyer on a number of occasions to learn more about the buyer.  As agents, our job is to ask questions about the buyer’s financial qualifications, but not about the buyer’s personal information.  In fact, we agents have to be very careful to not violate fair housing laws and ask any questions which could be discriminatory. Since I work in Microsoft country, we can ask if the buyer works at Microsoft, since Microsoft is not a protected class! If you, as a seller, have your own questions about the buyer, google him/her/them.

The internet can tell you as a potential buyer or seller a lot of things about the people involved in the process.  Google them!

Any other ideas about what you can Google to help with real estate listings, buyers, sellers, and agents?

 

 

 

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Craig Newmark, “The George Costanza of the Internet”, at Inman SF Connect

In For Buyers, For Sellers, Real Estate News, real estate on August 5, 2008 at 10:54 am

Craig Newmark, the founder of Craig’s List, a frequent guest at Inman Real Estate Connect, stole the show once again on the opening day of SF Connect.  Craig is witty, self-deprecating, honest, interesting, and involved politically.  Last Inman Connect, Craig described himself as “The George Costanza of the internet.”

 

At the recent Inman Connect, politics and political involvement were more the discussion  between Brad Inman and Craig Newmark.  Craig Newmark believes the US Constitution is the key to who we are as a country as it’s the perfect example of our representative democracy and describes the ability to “play fair.” He advocates extensively for investigative journalism because he believes journalism, with a critical eye, is vital to the survival of our republic.  A liberal thinker and an Obama fan, he looks towards the reinstatement of the Constitution on January 20th!

 

A bit about Craig’s List: The “list” started modestly 13 years ago by matching friends up with information and things. 

 

Some facts about Craig’s List:

 

12 million (or was it billion?) hits per month

26 employees, 16 engineers

Company valued at $5 billion by either Forbes or Fortune magazine

96% of the traffic on Craig’s List is from the U.S.

 

Goals for the future of Craig’s List:

 

Site to be in more languages

Greater role for mobile devices.

Spam detection improvement