Archive for the ‘financing’ Category
Bellevue Real Estate, Issaquah Real Estate, Kirkland real estate, Redmond real estate, Sammamish home sales, Seattle real estate, Woodinville real estate
In Bellevue Real Estate, Bellevue, WA, For Buyers, For Sellers, Issaquah Real Estate, Issaquah, WA, King County Real Estate, King County, WA, Kirkland, Redmond, Sammamish, WA, Sammamish, WA Real Estate, Seattle real estate, WA real estate, Windermere Real Estate, Woodinville, WA, Woodinville, WA Real Estate, financing, real estate on August 11, 2010 at 9:50 am
Seattle-Eastside Residential Real Estate Sales, July 2010
The odds of selling a home on the Eastside in July, 2010 ranged from a low of 11.5% to a high of 17%, with an average 14% absorption rate.(The absorption rate is the number of homes for sale in a month divided by the actual number of homes sold that month.)
July, 2010 3468 homes for sale 501 homes sold 14% odds of selling.
June, 2010 3360 homes for sale 475 (was 503) homes sold 14%(was 15%) odds of selling.*
May, 2010 3209 homes for sale 492 homes sold 15% odds of selling.*
July, 2009 3819 homes for sale 516 homes sold 13.5 % odds of selling.
June, 2009 3859 homes for sale 563 homes sold 15% odds of selling.
*Adjusted from previous month’s numbers to reflect the actual number of homes sold and closed. Each month some sales fall apart and don’t close. A lower number of home sales may be reported at a later date to show the actual number of sales that did close.
For the past few months, the absorption rate for all the Seattle-eastside areas has been in the teens, hovering around 13-15%. May, June, and July all had similar absorption rates. Since May of 2009, the number of homes that have sold each month has not varied all that much, with the exception of March and April of this year. March and April had higher sales because of the tax credit.
Where we see more of a difference is in the number of homes for sale on Seattle’s eastside. Last year there were 3819 homes for sale in July, 2009. This year there are 10% less homes on the market. But even with less homes on the market, the odds of selling are about the same.
We have the lowest interest rates since 1971. Plus, our Seattle eastside real estate market is clearly a buyers’ market again, since the absorption rate is so low. It’s very obvious when shown on a map of the area. I’ll post a map of the Seattle eastside showing where buyers and sellers markets are located later this week. The reality is, however, that most of the real estate markets are buyers’ markets right now.
So why are real estate sales so sluggish? My guess is the “fear factor.” People are still worried about the economy. Plus, with interest rates predicted to remain low for the foreseeable future, there’s also no sense of urgency to buy.
Why do you think the Seattle eastside real estate market is slower?
_____________________________________________________________
July, 2009 Seattle-Eastside real estate market compared to July, 2010:
- The average asking price of pending homes (recently sold homes) went from $558,397 to $573,617. (This does not show what the homes actually sold for.)
- This week, there were 14,414 King County homes (houses and condos) for sale.
- Two weeks ago may have been the peak of the number of homes for sale this year when 14,639 homes were on the market.
- Home sales on Seattle’s Eastside: down 13%.
- Number of homes for sale on Seattle’s Eastside: down 10%
Best odds of selling: Carnation and Redmond, from downtown to north and east, with 17% of the homes getting accepted offers. Ironically, last month this area had the worst odds of selling at 9%.
Worst odds of selling: West Bellevue, with 11.5% of the homes getting accepted offers.
Biggest increase in sales from last year: A 5% increase in South Bellevue home sales, which is the biggest increase.
Smallest increase in sales from last year: Kirkland, with a 3% increase. There were only two areas with an increase in the number of home sales on Seattle’s eastside.
Decline in real estate sales from last year: There was a decline in 5 out of the 7 Seattle-eastside areas with the largest decline in home sales in West Bellevue with a 31% decline in the number of homes sold.
The peak of homes for sale in 2008: July, 4370 homes.
The peak of homes for sale in 2009: June, 3859 homes.
The number of eastside homes for sale at the start of 2010: 2584 homes
The number of eastside homes for sale in July, 2010: 3468 homes.
Rate of home sales that failed and did not close: 6%
For a picture of King County sales, check out The Seattle Times. The headline states sales are down, but prices are up. Keep in mind the headline may not represent each area. Prices are up slightly in some areas, down in others, and sales are down in 5 out of 7 eastside areas.
In Bellevue Real Estate, For Buyers, For Sellers, Issaquah Real Estate, King County Real Estate, Kirkland, Real Estate News, Sammamish, WA, Sammamish, WA Real Estate, WA real estate, Windermere Real Estate, Woodinville, WA Real Estate, financing, real estate, real estate opinion on July 14, 2010 at 7:47 am
There’s no “red” on the Seattle-eastside real estate map, which means there were no seller’s markets in June, 2010. The Seattle-eastside real estate market has turned “yellow” for a market balanced between buyers and sellers, and “green.” “Green” on the map indicates a buyer’s market. It’s not surprising to me that certain areas stay as a balanced real estate market longer than some others.
Which Seattle-eastside areas have remained stronger as a balanced market between buyers and sellers?
East Bellevue and Redmond near Microsoft (530 on the map)
It’s traditionally one of the strongest areas, because homes are so close to jobs at Microsoft. The neighborhoods abut the main Microsoft campus and are an easy commute to downtown Bellevue, the economic hub of the eastside. Plus, housing can be found from the $200′s and $300′s to million+ dollar waterfront. Housing in many neighborhoods is in the affordable range for the area.
South Bellevue and Issaquah (500 on the map)
The area south of I-90 is a big drawing card for Seattle commuters. Again, there’s a variety of home styles and ages, good schools, and a fabulous commute either to eastside economic centers or downtown Seattle.
Sammamish, Issaquah, Preston, Fall City, and North Bend. (540 on the map)
Another area that’s consistently one of the strongest is the plateau areas of Sammamish, Issaquah, Preston, Fall City, and North Bend. The different eastside cities here have a huge variety of homes from estates to acreage to newer construction and town homes. Good schools and some good values keep the area strong.
King & Snohomish County Real Estate Maps, 6-30-10
There are still great homes and condos out there to buy and interest rates are at historic lows. The loss of the tax credit may not make much of a difference when calculating the savings in monthly payments over time.
buying a home, interest rates, King County, real estate, Seattle Eastside real estate, Seattle real estate, WA
In For Buyers, Real Estate News, financing, real estate on July 8, 2010 at 5:41 am
Interest Rates 1980-2010
I remember when I bought my first home in the mid 1980′s. I was so excited, the interest rate was at the bottom of the double digits, considering what the early 80′s had to offer with rates in the high teens. I had friends who purchased in Brooklyn, NY in the early 80′s and were paying almost 17% for their mortgage. The interest rate for my first home was just above 10%. Granted the home prices were significantly less, but the monthly payments were high, considering the lower prices of the times.
Fast forward to 2010, with interest rates the lowest in 30 years and prices at 2005 levels.
What’s the difference in monthly payments with the more recent interest rates we’ve seen?
If you decide to purchase a $400,000 home, this is the difference in principle and interest payments over the last couple of years.
July 2008 – 5.75% – $2,334
July 2009 – 5.25% – $2,209
Jan 2010 – 5.125%- $2,178
May 2010 – 5.0% – $2,147
July 2010 – 4.50% – $2,027
Seattle-eastside home values have dropped significantly since the peak in the real estate market in the summer of 2007 and rates have also dropped as well. If you were to purchase a $400,000 home now, the payment would be approximately $300 less than two years ago, plus the home prices are also lower. In King County, WA, the choices are terrific because the number of homes for sale is just below the high so far for the year. Right now, in King County, there are 13,921 homes for sale.
So is it the right time to buy a home? You decide.
2010 Home buyer Tax Credit, buying a home in 2010, expiration of 2010 home buyer tax credit, low interest rates, real estate, Seattle Eastside real estate, Seattle real estate
In 2010 Home buyer Tax Credit, For Buyers, For Sellers, Seattle real estate, financing, real estate, real estate opinion on March 8, 2010 at 4:10 pm
Should you buy a home now on Seattle’s eastside now or wait until after the tax credit expires at the end of April?
People were talking on the Wall Street Journal site and on Zillow about this very issue. Today people don’t just ask, “How’s the real estate market?” They ask, “What do you think will happen to the real estate market after the tax credit?”
Here are some of the things people are wondering:
- Do I buy now?
- Do I wait?
- Will I get a better deal now or if I wait?
- Is it worth passing on the tax credit and waiting to see if prices come down after April 30th?
- Is it better to buy now because there is a healthy number of homes for sale and good interest rates?
- Will there be more homes to choose from later?
- Will interest rates go up and cancel out any possible decline in prices?
I got my crystal ball out as did many others. Money Magazine made a strong case for buying now. Warren Buffett, on the other hand, thought the real estate market would pick up in 2011. Luke Mullins of US News and World Report presented the positive aspects of home ownership, even in today’s real estate market. Truthfully, no one knows what will happen and we can only speculate about what may happen with prices, the number of homes on the market and interest rates. But all these variables should be considered when making a decision about whether to purchase a home now or later.
I believe there are good deals on a home now and will be after the tax credit, but it’s on a case by case basis. Here’s why I say this:
Right now…
$6500-8000 home buyer tax credit available for most buyers.
Historically low interest rates.
Good selection of homes, many with very realistic home sellers and prices.
Having the tax credit of $6500-8000 and terrific interest rates, increases buying power. Typically, your loan payment is amortized over 15 or 30 years, a lower interest rate means more dollars per month in your pocket.
Later…
Will prices drop after the tax credit goes away on April 30th? No one really knows. There may be more homes on the market, which we typically see in the summer months in the Seattle area. If so, the law of supply and demand will kick in. More homes + less demand= lower prices. But we really don’t know if this will happen. We don’t know if there will be less demand. We can only guess. We can only gamble on what may be.
However, there’s a good chance interest rates will go up, which means purchasing power will go down. If rates go up 1%, then purchasing power goes down by about 10%. This means if you could afford a home for $330,000, if rates do go up by 1%, you would then qualify for a home at $300,000.
The impact of interest rates on buying power
Buying a home will, obviously, be less expensive if prices drop (but we don’t know if they will), and mortgage rates could also be a higher ( again, just a guess, but looking pretty certain), which could more than cancel out any savings in the price of the home. Remember, I’m not just talking about your initial investment, I’m talking about spreading the total cost out over the time you own your home.
The location factor:
Real estate is hyperlocal. There is no one size fits all real estate locales, individual buyers or individual sellers. Some areas of the Seattle- eastside real estate market will remain stronger than others. Within each city on the Eastside, Bellevue, Redmond, Kirkland, it will vary. The East of Market neighborhood in Kirkland may be vastly different than Kirkland’s Rose Hill real estate market. We see that today with a difference in real estate sales performance in different areas on Seattle’s eastside. So no one should make a “one size fits all” about the real estate market. It will depend on how hot the area is, how many homes are on the market, and how hot the house may be. ( The Queen Anne neighborhood in Seattle seems to remain hot through most real estate markets, as an example.)
Some neighborhoods will be full of homes for sale and the homes in these areas will need to be priced more competitively. Other areas will have fewer homes to buy. These areas will have stiff competition among the sellers to grab the buyers. Buyers will be looking harder at the overall value each home brings them.
The home factor:
In every real estate market, you’ll find fabulous homes. These homes will be perfect, priced right, and terrific values. Homes that shine will be the ones to sell in any market.
The emotional factor…
For most people, it’s a huge personal decision when to buy and what home to buy. If you find a great house and are able to get it for a reasonable price for the real estate market at the time, it may make sense to you to buy. There are the financial aspects of buying a home and the emotional aspects. You might find the home you can’t live without and it’ll be worth it to you to buy now rather later. You may not find a home now and miss using the home buyer tax credit, but you may not want to buy a home now just to get the tax credit.
There are going to be great homes now and in the future. There are also going to be great deals now and in the future. The difference in today’s market is you’re dealing with a known quantity. You have to decide what works for you.
What do you think will happen with the Seattle-eastside real estate market later this year?
2010 home buyer tax credits, buying a home, home buyers, low interest rates, real estate
In 2010 Home buyer Tax Credit, For Buyers, For Sellers, financing, real estate on January 25, 2010 at 1:49 pm
Who knows where the time goes? (“Who Knows Where the Time Goes”- written by Sandy Denny, but made famous by Judy Collins) Sometimes it seems like the past has gone in the blink of an eye. Ironically, it feels exactly the opposite when we think of the future. It’s human nature to think there’s all the time in the world, whereas the past seemed to happen in the blink of an eye.
We have the real estate trifecta here in the Seattle area right now and it could be gone in the blink of an eye. If you’re someone whose thinking of buying or selling, if you wait too long to act, the trifecta could be a thing of the past. The trifecta is a boon for both buyers and sellers.
So what’s today’s real estate trifecta?
- The home buyer tax credit.
Attention home shoppers! The April 30th deadline for home buyers to find a home, be in contract, and receive the $6500 tax credit is coming fast, and it’s coming faster than you think. There’s less than 100 days to have an accepted offer on a home and obtain the home buyer tax credit.
home buyer tax credit
Remember, the $8000 tax credit still exists for first time home buyers, but many people don’t realize almost all home buyers are eligible for a $6500 tax credit. This is an important deadline for home buyers and home sellers, not just the buyers. Home buyers who are serious are out shopping and buying homes.
- Low interest rates.
The low interest rates, which are low, won’t be here forever. Rates for a 30 year fixed mortgage dropped below 5% last week.
- Good number of homes for sale.
There’s a lower number of homes on the market in King County, but there’s still a healthy amount of good homes to choose from. (Yes, home buyers, there’s a number of great houses out there.) It’s a more evenly balanced real estate market between buyers and sellers, which means some homes will sell right away if they are priced right and stand out from the competition and others will take longer to sell and will sell with more negotiation in price.
Number of King County Properties for Sale, 1-18-10
So home buyers and home sellers get out there now and take advantage of the real estate trifecta. April 30th is not far away.
2010 home buyer tax credits, Bellevue condo sales, Bellevue Real Estate, buying a condo on Seattle’s eastside, Redmond condo sales, Redmond real estate, Seattle Eastside real estate, Seattle-eastside condo sales, selling a condo on Seattle’s eastside
In Bellevue Real Estate, Bellevue, WA, For Buyers, For Homeowners, 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 real estate, WA real estate, Windermere Real Estate, Woodinville, WA, Woodinville, WA Real Estate, financing, market statistics, real estate on December 16, 2009 at 11:47 am
Seattle Eastside Condo Sales, Nov 2009
(The absorption rate, the percentage of condos selling, is the number of condos for sale in any given month divided by the actual number of condos sold that month. So if the absorption rate or chance of selling is 10% that means out of 100 condos for sale, 10 received offers and sold.)
November, 2009 1289 condos for sale 140 condos sold, 11% odds of selling.
October, 2009 1363 condos for sale 239 (now 207) condos sold 17% (now 15%) odds of selling.*
November, 2008 1243 condos for sale 85 condos sold 7% odds of selling.
*Adjusted from previous month’s original numbers to reflect the actual number of condos sold and closed. Some of the sales originally reported last month failed and did not close. Thirteen percent of condo sales originally reported in October failed to close.
The number of condos for sale also dropped by 74 units, which is 6% decrease in the number of condos available for sale on Seattle’s eastside. The number of Seattle Eastside condo sales dropped from the last couple of months to numbers more similar to what we saw in the summer.
With only about 10 out of 100 condos selling, it’s a great time to buy. There’s not much competition with other buyers. With the extension and expansion of the home buyer tax credit into 2010, there’s the added benefit of a tax credit, but only if you buy before the end of April, 2010.
real estate, buying a home, tax credits, extension of first time home buyers tax credit, first time home buyers tax credit, tax incentives to buy a home, financing a home, economic stimulus plan
In 2009 stimulus package, For Buyers, For Homeowners, Real Estate News, financing, real estate on October 28, 2009 at 7:32 pm
real estate, buying a home, $8000 first time home buyer credit, first time home buyer credit fraud, economic stimulus, first time home buyer, Wall Street bonuses
In 2009 stimulus package, For Buyers, financing, real estate on October 26, 2009 at 6:40 pm
I’ve been a fan of the $8000 first time home buyer credit. It’s brought life and breath back to the housing industry, which in turn benefits our entire economy. However, the reports of fraudulent use of the first time home buyer credit? Give me a break! Weren’t the steps for qualification and the subsequent reporting of a home purchase to the IRS clearly outlined to prohibit or at least minimize fraud?
Apparently not, according to American Public Radio’s Scott Jagow on his Scratch Pad:
The IRS doesn’t require documentation to prove the person getting the credit actually bought a home.
The Wall Street Journal posted a story about the same problem with a mention of a 4 year old filing a tax return asking for the first time home buyer credit.
Is it easy to believe some people would try to get the tax credit, even though they weren’t first time buyers or people who even bought a home? Unfortunately, yes.
Frank Keith, a spokesman for the IRS said:
…. the IRS doesn’t have the authority to reject a claim for the tax credit without doing a full audit first. Keith says his agency has flagged more than 100,000 tax returns for a second look.
But it’s truly mind boggling, infuriating, and sad to hear there isn’t a carefully thought out system to verify the first time home purchase.
I’ve been for the tax stimulus and bailouts, because something had to be done to save our economy and jump start it again. But the plans should have been completely thought out. There’s so much talk about the big bonuses still be handed out to bankers and Wall Streeters, which is also incomprehensible and infuriating, but this, too? We still have people on all levels, from pseudo-first time home buyers to corporate execs, ripping off the taxpayers. The stimulus plan has certainly not done what it needed to do to change that part of the economic problem.
What do you think?
real estate, home sales, King County Real Estate, WA real estate, first time home buyers, buying a home, $8000 first time home buyer credit, James McIntire, Senator Isakson, HFA, HFA first time home buyer programs
In 2009 stimulus package, For Buyers, For Sellers, WA real estate, financing, real estate on October 20, 2009 at 12:49 pm
Should the first time home buyers credit be extended or are there other options? The time available to use the $8000 first time buyer home credit is almost gone. There’s little time left to buy a home and close on it by November 30th to be eligible for the credit.
Should the tax credit be extended? Some lawmakers, the building association, and the real estate industry believes it should.
Republican Senator Johnny Isakson of Georgia said:
This economy that we’re in went into the tank because of residential housing, and it will only really come out of the tank with residential housing.
The stimulus that Congress passed was $787 billion. The total cost of this, if you extend it for a year, not half a year, and if raised to 10,000, would be about $28 billion. That’s less than four percent of the stimulus – yeah, we already have proof of how many home sales it will generate, how many jobs it will produce. So by any measure, it is a small down payment on a great repayment that we’ll get in our economy and it’s not throwing dollars away.
The first time home buyer tax incentive had a positive effect on real estate sales, obviously, as we’ve seen higher sales since last year at this time. but has it also had a positive effect on the economy?
The recent opinion piece in The Seattle Times written by James McIntire, Washington’s State Treasurer states:
Every 1,000 home sales generate $112.4 million of economic activity with $71.9 million of it directly from home-sale preparation and the actual real-estate transaction. In addition, more than 700 new jobs are created.
Buying a home requires building inspectors, lenders, escrow people, and movers to complete the process. Home buyers buy curtains, appliances, beds, couches, TV’s and other hard goods. Buying a home employs shop keepers, store personnel, and the factory workers who make the goods needed to furnish a home. Home owners employ plumbers, electricians, landscapers, and other contractors. Home sales to first time home buyers has allowed other home owners to buy and make a move up, helping to increase overall home sales.
Home buying has provided one of the few boosts to the national economy this past year. Money must come back into the economy in order to breathe life into it.
Just this morning, I heard on NPR about a housing program for first time buyers that is coming back into play, The Housing Finance Agency. This agency has been unable to fund loans for first time buyers since the credit freeze. The Obama administration is looking into opening credit by issuing tax exempt bonds to raise the money to lend to first time home buyers.
Treasury’s plan is for the federal government to buy the bonds from HFAs, who will in turn have the money to lend to first-time home buyers…
Should we extend the $8000 first time home buyers credit? Or should we look to new/old programs, such as the HFA? What do you think?
appraisals, HR 3044, HVCC, HVCC petition, Inman News, NAR
In For Buyers, For Homeowners, Real Estate News, financing, real estate on July 7, 2009 at 6:47 am
Recently, I wrote about my experience with the “new and improved” real estate appraisal process, the HVCC, House Valuation Code of Conduct, a misguided attempt to right the wrongs of past appraisals. The appraisal process needed to be revamped, but I’m not alone in seeing how difficult the new appraisal system has been for the consumer. Petitions are online for people to ask that the HVCC be reevaluated.
Briefly, the HVCC requires all appraisals to go through a central clearing house. The next appraiser on the list is assigned the job, regardless of experience and knowledge about an area. The appraiser may live and work in an area hours away from the property. It’s very hard for anyone to know the individual nuances of a neighborhood, builders, school systems, etc. and how these affect value. I can only imagine how hard it must be for appraisers to have to evaluate properties hither and yon. How could anyone appraise properties in an area that’s the size of small states and get it right all of the time?
In addition, appraisals cost buyers about the same as before, $450-500, but the portion of the fee directed to the appraiser has decreased. The appraisers only make about $200 and the rest of the fee goes to the appraisal management companies, which, by the way, are often owned by banks and title insurance companies. This from Matt Carter at Inman News:
As originally proposed, the code would have barred lenders from ordering reports from appraisal management companies they owned more than a 20 percent stake in. But as adopted, the code does not limit lender ownership stakes in appraisal management companies.
What if your lender makes a mistake and your loan needs to go to a different lender? Believe me, it happens and it happens to good, strong buyers. Well, not only will your loan close late, you”ll be the proud owner of two appraisals. This from Matt Carter at Inman News again ( Joseph Heller would have had fun with this one):
The code allows lenders to accept an appraisal produced for another lender, for example, but only after the receiving lender obtains confirmation in writing from the original lender that the appraisal is in compliance with the code.
Because there is currently no industry or supervisory standard regarding what constitutes an adequate written confirmation of compliance with the code, Kittle said, lenders are reluctant to accept another lender’s appraisal because they might be forced to repurchase loans if they are found to have breached the code.
That means lenders “typically order a new appraisal at the expense of the borrower,” even if an appraisal has recently been performed by another lender, Kittle said.
I’ve heard of appraisals coming in late, causing the buyer to close late and lose their loan lock. Imagine how difficult this is when you have movers sitting in your driveway and they are booked for weeks afterward. I could go on, but this is a simplified version of the changes brought to the real estate industry by the HVCC.
Two US Representatives, Representative Travis Childers (D-Miss) and Gary Miller (R-CA), have introduced a bill, HR 3044, to suspend the new HVCC code for 18 months, so it can be properly evaluated. This a good thing for consumers and the housing industry. Changes to the appraisal system need to be done right, but not by implementing a system that creates more problems. We must be fair to both buyers and sellers and make sure appraisals are coming in on time and at the value that exists in the marketplace.
It’s important for you to contact your congress person to see this law is passed to help protect the integrity of the system and ensure changes to the appraisal system are a benefit, not a detriment.
First Time home buyer credit, first time home buyer credit towards downpayment, HUD, IRS, Stimulus program for first time home buyers
In 2009 stimulus package, For Buyers, Mortgages, Real Estate News, financing, real estate on June 5, 2009 at 5:45 pm
appraisals, Freddie Mac, home appraisals, Home Valuation Code of Conduct, real estate appraisals, Seattle, Seattle Eastside, Seattle Eastside real estate, Seattle real estate
In For Buyers, For Sellers, Kirkland, Mortgages, Redmond, financing, real estate, real estate opinion on June 5, 2009 at 12:53 pm
I’m having a bad real estate day because of an appraisal and I was just about to rip my hair out until I read Kris Berg’s excellent piece which did make me laugh about the “fun” we are having with appraisals these days. Kris has a great way of getting serious issues across to her readers, but with a light touch. The HVCC, The Home Evaluation Code of Conduct, is not a humorous situation for consumers and the real estate industry, but it’s probably better for me to laugh a little, since I really want to scream.
As of May 1st, the appraisal industry had to meet new Freddie Mac guidelines called The Home Evaluation Code of Conduct, subtitled “Enhancing The Independence of Appraisers“. The debate about the new home valuation code of conduct has been going on since it was first announced last year and is going on to this day. Before the financial meltdown, there were appraisers who needed to be run out of the appraisal business for appraising properties for exorbitant prices, but the reality is there is now a new set of problems created by these new appraisal guidelines. The appraisals or home valuation system has not been fixed, it just has new problems. In today’s real estate world, a request for an appraisal is sent to an independent clearing house and the next appraiser on the list is selected to do the job. This system has been designed to “enhance the independence of appraisers,” as mentioned above.
Now that this “new and improved system” has been in place for just over 30 days, I’ve had the good fortune to see how it works in reality. Take the latest appraisals I’ve had on two of my recent sales. For those of you in the Seattle area, you’ll understand how far flung the different areas are that each appraiser had to drive to in order to complete assigned appraisals. Appraiser #1 scheduled his appraisal late in the day for a home I’d sold in Redmond, Washington. He had to come late in the day, because he was coming from an appraisal on Vashon Island. Vashon Island, the last time I looked, is southwest of Seattle proper in Puget Sound, while Redmond is located east of Seattle across Lake Washington from downtown. Between ferries, bridges, and highway travel, the appraiser may have to travel 1 1/2 hours (on a good day) between these two appraisal appointments. Appraiser #2 called to appraise a listing of mine in Kirkland, Washington, again on the eastside of Seattle. This appraiser was coming from an appointment in Maple Valley, which is a city much further south and east of Seattle.
This map shows the location of the places the two appraisers had to go to do their job. If you click on “view larger map”, you’ll be able to see the location of these cities. Oh, I forgot, Vashon Island, which is in a different county, doesn’t show up on the map because it’s so much farther south of the Seattle! If you look for Maple Valley that, too, does not show up on this map. Maple Valley happens to be south of Issaquah.
View Larger Map
Silly me, when I have a client who wants to look for a home on Vashon Island, I refer the client to a Realtor who knows the island. The same goes for Maple Valley. I could show homes in all of the far flung regions of Seattle/KIng County, but I don’t, because it’s a disservice to my clients. I don’t know about the different school systems and how they affect the value of the homes in each of the cities, counties or islands in the area. I don’t know about the different builders in the area, the different neighborhoods, the shops, parks, etc, etc. Don’t appraisers need that same knowledge to evaluate properties? How can appraisers know all of these areas well and give an accurate appraisal for a home? It’s a problem happening all over the country right now.
The second problem I’ve seen come up with appraisals is a little box checked by the appraiser. As part of the appraisal report, the bank wants to know if the real estate market is appreciating, remaining stable or declining. Recently, two appraisers have checked the box labeling the Seattle/Eastside market as “declining.” What a shock, this is a market where home prices have gone down! I wonder who or where appraisers are checking anything but “declining” in that box. In each case, because of this checked box, the underwriter required a second appraisal.
The lending/appraisal industry was far from perfect before, but these “improvements have and are wreaking havoc with home prices and the entire loan process. If appraisers are not really familiar with a city or neighborhood, there is no way that the majority of appraisals will be accurate. This could hurt consumers, both home buyers and home sellers, if properties are not accurately evaluated. The appraisal process needs an industry watch dog and stricter guidelines, but having the appraiser who’s next in line complete an appraisal in an area he/she knows nothing about dilutes the whole appraisal process. It’s a sad state of events for real estate. I’m hoping the government will see the light and make reasonable changes to this system in the near future.
What problems have you seen since the change in real estate appraisals? My guess is the examples above are only the tip of the iceberg.
$8000 first time home buyer tax incentive, Bellevue Real Estate, buying a condo on Seattle’s eastside, Issaquah Real Estate, Kirkland real estate, Redmond real estate, Sammamish real estate, selling a condo on Seattle’s eastside, Woodinville real estate
In Bellevue Real Estate, Bellevue, WA, For Buyers, For Sellers, Issaquah Real Estate, Issaquah, WA, King County Real Estate, King County, WA, Kirkland, Redmond, Sammamish, WA, Sammamish, WA Real Estate, Seattle real estate, Woodinville, WA, Woodinville, WA Real Estate, financing, market statistics, real estate on May 19, 2009 at 5:52 pm
Seattle Eastside April 2009 condo real estate statistics
April, 2009 1315 condos for sale,177 sold, 13% chance of selling a condo
(The absorption rate, the percentage of condos selling, is the number of condos for sale in any given month divided by the actual number of condos sold that month. So if the absorption rate or chance of selling is 10% that means out of 100 condos for sale, 10 received offers and sold.)
(pended means the number of condos that got offers this month)
Much good news for the Seattle-Eastside condo sales during April, 2009. April represented the highest number of condo sales on Seattle’s eastside since June, 2008. Only 15 more condos were offered for sale, but 67 more sold in April than in March. I’m sure the first time home buyer credit is spurring on all the activity.
The other piece of good news is HUD, the office of Housing and Urban Development, announced the $8000 first time home buyer tax credit can be used towards a buyer’s down payment. This is a boon to first time buyers. The actual workings of the program have not been released yet, but I will report on it as soon as I hear about it. If you have a lender you trust, you can also contact them to get more information about the program. Remember, the tax incentive must be used before December 1st, 2009. To be safe, if you plan to use it, you should consider buying before the end of October, so your home or condo purchase will close in time for you to be eligible for the credit.
Bellevue Real Estate, buying a home in Seattle, buying a home on Seattle’s eastside, Issaquah Real Estate, Kirkland real estate, Redmond real estate, Seattle Eastside real estate, Seattle real estate, selling a home in Seattle, selling a home on Seattle’s eastside, Woodinville real estate
In Bellevue Real Estate, Bellevue, WA, For Buyers, For Homeowners, For Sellers, Issaquah Real Estate, Issaquah, WA, Kirkland, Real Estate News, Redmond, Sammamish, WA, Sammamish, WA Real Estate, Seattle real estate, Woodinville, WA, Woodinville, WA Real Estate, financing, real estate on May 15, 2009 at 7:32 am
Seattle Eastside Real Estate Activity April 2009
The media was hopping with news stories about the increase in April, 2009 real estate sales in the Seattle area. Local TV stations KOMO and KING5, both had reports on the more positive real estate market. The Seattle Times, Seattle PI.com, and BizJournals all had stories with the same theme.
The chances of selling a home on the Eastside in April 2009 ranged from a low of 10% to a high of 23%, with an average 16% 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:
April, 2009 3600 homes for sale 573 homes sold 16% chance of selling.
March, 2009 3711 homes for sale 372 homes sold 10% chance of selling.
April, 2008 4017 homes for sale 489 homes sold 12% chance of selling
_____________________________________________________________
(This monthly Seattle/Eastside real estate report now includes the chart above because it’s clear and easy to read. You can still find the MLS charts by clicking on each of the cities below. Those charts have some of the same information as the chart above, but also show the real estate trends for the last 5 years, including median pricing for each city and whether the number of homes for sale and the number of sales are up or down. If you look at the charts by city, you’ll notice the total number of homes for sale and the number of homes sold can vary slightly from the chart above. This is because the information for the charts is gathered at slightly different times. Regardless of the exact numbers, it’s clear the charts show the same trends, which is the most important piece of information.)
(click on city names for a chart showing the latest stats in the area)
The plateau: Sammamish, Issaquah, North Bend, and Fall Ciy
Median sales price decreased by 12% from $597,639 to $524,000.
Inventory was down by 12% and sales were down by 12% from last year.
West Redmond/East Bellevue
Median sales price decreased from $608,998 to $500,000 a decrease of 18%.
Inventory was down 6% and sales were up 15%.
South Bellevue
Median price increased by 8% from $600,000 to $649,900.
Inventory was down by 15% and sales were up 70%.
Woodinville/Bothell/Kenmore/Duvall/North Kirkland
Median price was down to $399,950 from $484,450, a 17% decrease.
Inventory was down by 6% from last year and sales were up by 44%.
Kirkland
Median price decreased by 8%, from $707,950 to $649,000.
Inventory was down by 8% and sales were up by 9.5%.
West Bellevue
Median pricing decreased by21% from $1,399,000 to $1,100,000.
Inventory increased by 5 % and sales increased by 18.5%.
Redmond/Education Hill/ Carnation
Median pricing decreased by 14% from $652,450 to $554,950.
Inventory decreased by 9% and sales decreased by 5%.
——————————————————————–
Thoughts on the April 2009 Seattle Eastside real estate market:
- Ok, everyone, take a deep breath. Things are looking up! Seattle -Eastside homes are selling. Every eastside area had a double digit absorption rate, for the first time in months.
- All areas saw some very positive changes this past month. The positive changes are in bold print. Everycity had some positive change in the real estate activity. The number of homes for sale, the inventory, was down in every city, except one. The number of homes sold was up in all cities except two!
- The stand-out area, which is often the case, is the area in East Bellevue and Redmond, close to Microsoft. This area’s absorption rate was the last to slow down and is the first to come back to life. Twenty-three percent of the homes for sale sold there last month.
- Are real estate prices increasing on Seattle’s Eastside? No, the number of sales has increased dramatically though.
- April had the most number of home sales since June of last year. In King County overall, six of the last ten weeks have had the most number of sales since July, 2007.
- In some areas on Seattle’s Eastside, we are seeing a more balanced market between buyers and sellers.
- The $8000 buyers credit will now be available for a down payment. This is great news, which should help bolster the real estate market even more.
buying a home in WA State, FHA, First Time home buyer credit, first time home buyer tax incentive, NAR, National Association of Realtors, Shaun Donovan, WA State
In For Buyers, For Homeowners, For Sellers, Mortgages, financing, real estate on May 14, 2009 at 5:39 pm
The $8000 first time home buyer credit can be used for a buyer’s down payment if a buyer qualifies for the program. Washington State had passed a measure for first time home buyers to use the money towards a down payment, as did a few other states, but now it looks like it’s a “go” everywhere. This is great news, because in Washington State the program had not been implemented as of yet.
Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.
Mr. Donovan spoke at the Realtor’s Mid-Year legislative Meetings and Trade Expo Live
According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
Stay tuned. As soon as I learn more, I’ll let you know in this blog. Happy house hunting!
real estate, buying a home, home buyer incentives, Home Buyer Protection Plan, Long & Foster Real Estate
In 2009 stimulus package, For Buyers, For Homeowners, For Sellers, financing, real estate, real estate marketing on April 30, 2009 at 3:42 pm
$8000 first time home buyer credit, real estate, stimulus plan for first time home buyers, WA State Realtors, WA State Senate Ways and Means Committee, WA Tax Credit Advance Loan Program, Washington Real Estate
In 2009 stimulus package, For Buyers, Mortgages, WA real estate, financing, real estate on April 21, 2009 at 10:37 am
Will Washington State be the first state in the nation to offer a program to first time buyers to use the $8000 home buyer credit towards a down payment for a home?
Here’s a memo from Barbara Lally of the Washington State Realtors Association explaining the program that is in the works:
OLYMPIA, Wash. – The Senate Ways and Means Committee last night (Thursday) unanimously approved a measure designed to help first-time home buyers come up with a down-payment. The committee adopted the measure as an amendment to the proposed Senate biennial operating budget.
The proposal would make the $8000 federal tax credit for first-time home buyers available at the closing of a home sale instead of when a buyer files a tax return. Home buyers would repay the $8000 after filing for and receiving a tax refund. The amendment creates a Tax Credit Advance Loan Program and authorizes the State Treasurer to deposit $25 million in a financial institution giving it the ability to open a line of credit to the State Housing Finance Commission to provide the down payment loans. The deposit would not deplete state funds, but would provide liquidity for the financial Institution to lend its own funds.
The program is the first of its kind in the nation and would work as follows:
- The State Treasurer’s Office would make an off-setting deposit in an FDIC-insured short-term
account with a selected financial institution. The investment would earn a low interest rate to
stay fully insured under federal guidelines.
- Realtors and other stakeholders back the loans with funds to provide security against losses.
- The financial institution provides the Washington State Housing Finance Commission a line of
credit to advance up to $8000 to qualified first-time home buyers for a down-payment.
- Buyers repay the advance loan after filing for and receiving the tax credit.
The amendment is the result of the efforts of the Washington REALTORS®, Washington State Treasurer’s office, and Washington State Housing Finance Commission. State Treasurer James McIntire wrote the budget proviso and is helping to advance the measure through the state legislature.
State Sen. Steve Hobbs (D-Lake Stevens), who offered the amendment, said that using the $8,000 tax credit to help first-time home buyer make down payments could help jump-start the economy. Hobbs noted that home purchases have a significant impact on the retail and banking sectors of the economy and on state and local coffers. “In this recession we need to find new and innovative ways to stimulate the economy. This proviso will slow the decline of our housing market and stimulate the economy,” Hobbs told the Senate Ways and Means Committee.
“Down-payment assistance to our first-time home buyers is the key we need to unlock economic activity throughout the state,” said Greg Wright, President of the Washington Realtors. “This tax credit is new money that we can put to work now to help the housing market and ignite economic action statewide.” According to a study by the Washington Research Council, each home sale by a first-time buyer generates $11,100 in state and local tax revenue. Every 1,000 home sales generate $126 million in general economic activity, supporting 711 jobs.
Home buyer tax credit fact sheet
The goal of the program is to get the money to buyers efficiently and return the federal refund quickly so that the HFC can turn it around to provide more assistance. The funds may revolve as many as three times before the tax credit expires, reaching up to 9000 first-time homebuyers. These “bridge loans” would expire at the same time as the federal tax credit, on November 30, 2009. All of the bridge loan funds return to the state system by early 2010 to use for capital projects in 2010-11.
“With homes at affordable prices and interest rates at historic lows the $8,000 tax credit opens a window of opportunity that may never be seen again,” said Wright, a Chelan Realtor. “The Senate’s budget helps bring that opportunity to families throughout our state.”
Lack of a down-payment is the only barrier to home ownership for up to 50 percent of first-time home buyers, according to J. Lennox Scott, Chairman and CEO of John L. Scott Real Estate. A recent study by the Federal Reserve Board showed that home ownership for people 35 years and younger increased by as much as 43 percent when a primary mortgage was combined with a down-payment assistance loan.
“First-time home buyers are the most critical to the recovery of the housing market and our overall economy, because their purchases set off a chain reaction of buying and selling,” Scott explained. ”The first step toward stimulating the state housing market is making the federal tax credit available at the closing table and increasing down-payment assistance.”
(REALTOR® is a federally registered collective membership mark which identifies a real estate professional who is a member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics.)
Interestingly, a private company in a suburb of Atlanta is proposing the same thing. The article from NuWire Investor did not have positive things to say about the program
What do you think about the possibility of using the tax credit as part of the down payment for a first time buyer?
$8000 first time home buyer tax incentive, NAHB, real estate, stimulus package for first time home buyers, Stimulus package for real estate
In 2009 stimulus package, For Buyers, For Sellers, Real Estate Tips, financing, real estate on April 17, 2009 at 12:35 pm
2009 Stimulus plan, home buyer tax credit, Nouriel Roubini, real estate
In 2009 stimulus package, For Buyers, For Homeowners, For Sellers, Real Estate News, financing, real estate on February 11, 2009 at 9:14 pm
What will the home buyer’s tax credit be when the stimulus plan is signed into law? Today’s news focused on the compromises being made between the House and the Senate to pare down the cost and reconcile the differences between the two plans. It’s looking like the Senate tax credit of $15,000 for a home purchase may be scaled back to the House plan of $7500. Both Houses seem to agree the credit would not need to be paid back.
From Nick Timiraos of www.wsj.com:
“But it’s far from certain that the House will accept the Senate version, which includes far more generous credits. The House version would modify an existing $7,500 credit so that it wouldn’t have to be repaid, while the Senate goes much further by doubling the credit, removing income limits, and extending it to existing homeowners, from just first-time buyers.”
Mr. Timiraos’ article had a poll in which he asked readers which version, The House or The Senate, did they prefer. As of 6:45 PM, PST, The Senate version was winning with 53.7% of the vote. The House version received 40.1% and there were 5.4% undecided voters.
Today’s www.wsj.com article sounds like “the die have been cast” and the House version will win out.
Jillayne Schlicke wrote a interesting article about the latest developments with the stimulus package over on Rain City Guide. She quoted Nouriel Roubini, an economics professor from NYU who happened to predict the economic decline pretty accurately. Last year at Inman News’ Real Estate Connect, Dr Roubini spoke very clearly about what has come to pass. At the time, most of the audience was shocked by his thoughts. There’s no doubt he was ahead of the pack with his predictions. My money is on what he has to say.
At this point, I’m anxiously awaiting the outcome and will do my best to summarize the details when they’re finalized. But I’m going to hop of the roller coaster until everything is finalized.
2009 stimulus package, home buyer tax credit, real estate
In 2009 stimulus package, For Buyers, For Sellers, Mortgages, Real Estate News, financing, real estate on February 6, 2009 at 10:49 am
I wrote about the 2009 Stimulus Plan and its proposed benefits to real estate, and here’s the latest update as of February 5th, 2009. Some thoughts from David Espo for the Senate proposal regarding the tax credit:
“The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break for the purchase of new homes only.”
When I looked back at David Espo’s remark about the “tax break for the purchase of new homes only,” I wonder if he meant to say the original tax credit is for new home buyers, those who had not owned a home for three years.
There’s discussion now with the Senate proposal for the credit apply to all homes and buyers. I’m still not clear on this, so if you heard something please jump in.
Here’s a link to an article from the Kentucky Herald regarding the Senate’s proposed tax credit.
The Wall Street Journal had an interesting discussion. Most people thought the tax credit would encourage them to buy a home.
There’s a lot of discussion as to whether the housing industry is the linchpin to getting the economy back on track. Helping to move unsold homes and get people into homes that are so much better priced than in the recent past, is a good thing. The country has to start from somewhere to get the economy moving. I would much rather see tax money go to home buyers than bank executives with no accountability.
Hopefully, the new stimulus package will have clearer guidelines and expectations of those who receive any money or tax incentives. Incentives, whether it’s for housing or some other commodity will help get people moving, literally and figuratively.
What do you think of the $15,000 home buyer credit?
2009 stimulus package, home buyer credit, Huffington Post, Moody's Economy.com, real estate, reverse mortgages
In For Homeowners, financing, real estate on January 30, 2009 at 1:27 pm
The news is full of stories about the stimulus package. The stimulus package is shown in full on the Huffington Post. It’s pretty dry reading and only recommended if you need something to help you sleep at night. If you want a shorter, more concise version, check this summary from CNN. The package is now on its way to the Senate to be dealt with next week. The full package may undergo more changes before it ends up in the Oval office.
Inman News had more information about the stimulus package as it relates to real estate. The stimulus package has a provision to change last year’s first time home buyer’s $7500 credit to a credit which won’t need to be repaid. Last year’s stimulus package required the credit to be repaid over 15 years.
It’s clear incentives are needed to get home buyers off the fence to buy. People are afraid if they buy a home now, it will shortly be worth less. Incentives, along with low interest rates, and great prices can help bring buyers back into the market. Mark Zandi from Moody’s Economy.com. thinks this buyer incentive should apply to all buyers to really have an affect on the number of people buying a home:
“A refundable tax credit for a home purchased in 2009, payable at the time of the purchase, would be an effective way to quickly stimulate home sales and reduce the mountain of unsold homes weighing on house prices and exacerbating foreclosures and the crisis in the financial system.”
Here’s some additional news about the tax credit from a CNNMoney article:
“To be eligible, buyers cannot have owned a home for the past three years, and the new home has to be used as a primary residence. The credit phases out as income rises above $75,000 for singles and $150,000 for couples, and disappears entirely at $95,000 and $170,000, respectively.
Applying for it is easy, or at least as easy as doing your income taxes. Just claim it on your return. That’s it. No other forms or papers have to be filed.
Both the Senate and the House versions of the new act remove the requirement that buyers repay the credit. The Senate bill applies retroactively to any purchase completed between January 1, 2009 and the end of August. The House version is also retroactive to the start of the year, and expires at the end of June. As long as buyers don’t sell for at least 36 months, they keep the money.
And the credit is refundable, meaning that it can be claimed even if the amount of the credit earned exceeds the buyer’s tax liability. So even if your total tax bill comes to just $5,000, you can still qualify for a full $7,500 refund.”
Seniors are also mentioned in the stimulus package with regard to reverse mortgages. Seniors are often overlooked when people talk about the economy. Many seniors have lost so much of their equity and life savings and are no longer in a position to go back to work. Anything that can be done to ease their situation is significant. The stimulus plan is increasing loan limits for reverse mortgages. The FHA HECM (Home Equity Conversion Mortgage) loan is now $625,500 while conventional loan limits are at $417,000.
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For the latest in the stimulus package and the proposed tax credit for home buyers, check out this link.
In For Buyers, For Homeowners, For Sellers, Mortgages, financing, real estate on January 9, 2009 at 1:57 pm
Guest Post from Steve Tedrow of Windermere Mortgage Services LLC/East:
The government has initiated their buying of mortgage backed securities as part of their recent plan. This has been received very favorably in the markets and has caused interest rates to start dropping again. 30 year fixed rate conforming loans are back into the 4.625-4.75% range. Hopefully, as conditions begin to improve, we will see investors start to get back in the market for jumbo loans so those rates will come down as well.
The experts I listen most closely to are predicting an improved year over last year. The Fed and the Treasury will continue to add lots of stimulus to our economy (like buying billions and billions of dollars of mortgage backed securities). The improvement will obviously take a little time. We shouldn’t expect any rate cuts since there is nothing to cut. When we do see a rate hike, that should be a welcome sign since it should be a sign of an improving economy.
One certainty is that there will continue to be extreme volatility in stocks, bonds, and mortgage rates. Their prediction for mortgages rates this year will be in the 4.5 – 5% range (unless there are any special government sponsored programs).
Conforming rates are the lowest they have been in decades.
And for an interesting news item for today…..
In a historic move, the Bank of England lowered their benchmark interest rate by .50% to 1.5%. Now get this – the benchmark rate has NEVER been this low since King William III founded the central bank in 1694 to fund a war against Louis XIV’s France. The rate began at 6% and fell no lower than 4% throughout the 18th century. It touched 2% several times in the second half of the 19th century. The central bank held it at that level throughout the Great Depression and World War II until 1951. These sure are historic times.
Steve Tedrow
Branch Manager/Mortgage Consultant
Windermere Mortgage Services LLC/East
phone (425) 576-5461
cell (206) 920-1012
stevetedrow@msn.com
buying a home, Hope for Homeowners, mortgage programs, mortgage rates, real estate
In For Buyers, For Sellers, Mortgages, financing, real estate, real estate opinion on December 17, 2008 at 10:50 am
Guest Post written by Steve Tedrow, Windermere Mortgage
While the mortgage market continues to generate a lot of chatter in both the media and in Washington, interest rates are currently near or at all-time lows. If you or anyone you know are looking to take advantage of these low rates, let me explain why now is the time to act.
Lately there has been talk about the 4.5% 30-year fixed rate mortgage. Will it become a reality though? Right now, no one really knows. Homeowners who could benefit from a lower interest rate need to know that even if 4.5% becomes a reality from Washington’s actions, it would only be available to home buyers, not homeowners seeking to better their rate. If you need to refinance, you will be left out.
You also may have heard about Hope for Homeowners, which is a program approved by legislators to help distressed homeowners. However, regardless of its best intentions, the program has not been embraced by investors, and it is not available to many it could help.
The bottom line is, the Fed announced recently that they are going to buy up to $600 billion in mortgage-backed securities. This has already driven rates to historical lows. In January, the SEC is meeting and information may be released that could have a significant bearing on rates, potentially for the worse.
Waiting to obtain the best rate is only possible for those with loan applications already in process. Interest rates are incredibly volatile and fluctuations that used to take months are now occurring in just days or even hours. If you don’t have an application in process, you could lose out.
We are already seeing lender backlog due to low interest rates. In 2003, with rates at these same low levels, we saw some lenders taking up to 90 days to close a loan.
Home loan rates are currently in the high 4% range. Home values are significantly lower than their high peak several years ago. If you–or friends and family members you know–are contemplating seeking financing, now is the time to act.
With a first time home buyer tax credit of up to $7,500 and low money down programs available for many people today, now is a great time to buy a home.
buying a new home in Puget Sound area, buying new construction homes, Camwest, DR Horton, home builders, Puget Sound home sales, real estate auctions, Seattle builders, Windermere Real Estate
In For Buyers, For Sellers, Seattle real estate, financing on December 7, 2008 at 5:19 pm
Bellevue, Bellevue Washington, John Hill Auctions, Microsoft, Overlake, real estate auctions, real estate near Microsoft, Redmond, Redmond real estate, Redmond Washington
In For Buyers, For Homeowners, For Sellers, Real Estate News, Redmond, financing, real estate on October 10, 2008 at 5:45 am
Homes for auction in Bellevue and Redmond, Washington? I noticed the first signs I’d ever seen for the auction of residential real estate in the Overlake area of Redmond/Bellevue, just a hop, skip, and a jump from Microsoft.
I’d just left a meeting with a client in a nearby neighborhood and was surprised to stumble upon a sign posted advertising an upcoming real estate auction. I drove by the home and it had fabulous street appeal. Sited on a cul-de-sac, it looked to be nicely updated.
I know homes have gone into foreclosure and to auction, but it’s still a surprise to see a sign posted advertising a real estate auction in the area. The Redmond/Bellevue/Microsoft area has been the strongest performing real estate area on the eastside. That being said, there are people in all demographics and neighborhoods who are struggling and losing their homes. No area is exempt.
The auction company, John Hill, has a website and people are able to bid online, for this home. The auction is on October 13th at 7 PM. You can attend the auction in person at the neighborhood clubhouse or bid online.
Commonwealth Title, credit cards, Equifax, escrow, escrow companies, Experian, home buyers, home sales, home sellers, identity theft, Photo ID, purchase and sale agreements, purchase and sale contracts, real estate, Realtor, Social Security Administration, social security numbers, Transunion
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
First Time Home Buyer Tax Credit, first time home buyers, first time home buying, home financing, home mortgages, mortgage tax credits, Steve Tedrow, Windermere Mortgage Services, Windermere Real Estate
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
credit scores, financing, home buyers, jumbo loans, Mortgages, real estate, Steve Tedrow, Windermere Mortgage
In For Buyers, For Sellers, Mortgages, Real Estate News, financing, real estate on May 14, 2008 at 7:51 am
Attention all home buyers! Here’s a brief update on some changes in financing I heard about from Steve Tedrow of Windermere Mortgage:
Conforming Jumbo loan rate is now at 5.25% for a 5/1 ARM, only 1/8% higher than conventional, non-jumbo loan. Fixed jumbo rates are at 5.875%
Limited or no documentation loans are dead and gone.
Credit scores need to be above 700 for almost all of today’s loans.
Financing regs and requirements are changing from moment to moment, so check with a lender you trust for the very latest information.
Eastside Real Estate Buzz
