Categoriesinfo for buyers

Homebuyer Credit FAQ’s

Here are some of the most frequently asked questions about the changes to the Homebuyer Tax Credit:

Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. For example, individuals who downsize or move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I closed on November 20th. Since President Obama signed the bill before I closed, will I qualify for the new $6500 tax credit?
Answer: Yes. The new income limitations went into effect as soon as the President signed the bill.  The income limit and other eligibility rules will look to your status as of the date of purchase, which is the closing date.  Since the new rules were signed prior to your closing, you should be eligible for the credit (or a portion of the credit if you’re within the phaseout range.)

Question: I am a first-time home-buyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. Will I be eligible for a credit?
Answer: Yes. The new income limitations went into effect as soon as the President has signed the bill.  The income limit and other eligibility rules will look to your status as of the date of purchase, which is the closing date. So you should be eligible for the credit (or a portion of the credit if you’re within the phaseout range).

Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.

Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as he lived in that house for 5 years straight what he did in the last 3 years doesn’t impact eligibility.

Question: I am an eligible first-time home-buyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
Answer: You do not have to close before December 1. Once the legislation was signed, it made it as if the Nov 30 date had never existed. Therefore, so long as the contract closes before July 1, the purchaser will be eligible for the credit.

Categoriesinfo for home owners, referrals

Color: Reinvent Your Space

The nights are longer; the days are darker; the wind and rain make coming home a welcome idea.  But as you open the door to go inside, maybe your home isn’t as welcoming as you’d like it to be; it’s dark, uninspired and even, boring.  If this rings true for you, maybe it’s time to think about purposefully utilizing the power of color in your home.

Color can make a home happier, more inviting, cozier or more spacious.  It can also make it more dramatic and brighter.  Color instantly influences one’s mood, suggests a “feeling”, changes the perception of space and the quality of light.  Color is one of the biggest (and most economical ways) of transforming the look and feel of a home.

When determining the appropriate colors for any space, your lifestyle, personalities, furnishings as well as the availability of natural light a space receives should be carefully considered.  We know how important color decisions are for enhancing interior spaces, and also know that it’s easy to “miss.”  This week we’ve been inspired by Renee Marquardt’s expertise as an interior designer and her focus this time of year on transforming your space through color.  Renee is offering our clients a color consultation for $150 (a $200 value), and we highly recommend you consider calling on her if you are craving a new look and feel for a space in your home.  The assistance of an interior designer who can fine tune the color selections with all of your specific elements in mind is invaluable.

Renee also offers a wide range of services, including help with re-arranging your rooms with the furniture you have up to full service interior design.  With confidence, we refer Renee and Marquardt Interior Design, and feel free to call us to discuss any questions you have.

For further information on color consultation, please contact Renee Marquardt with Marquardt Interior Design at 206.491.9605 or [email protected]

Warm regards,

Domenica
Windermere Real Estate

Categoriesfinancing, info for buyers, Windermere

Windermere’s New Bridge Loan

Opportunities for “move up” buyers are plentiful in the current market. Unfortunately, many homeowners aren’t able to capitalize because it has become harder to access home equity for down payments. Windermere is attempting to address this issue by offering its own stimulus package~short-term, no interest loans to existing homeowners looking to purchase a new home. Windermere clients have access to an interest free “bridge loan” that allows them to borrow a portion of their equity in their current home as a down payment on the purchase of a new home for up to six months. The result: buyers can make a non-contingent offer without dipping into their own cash reserves.

To create this interest-free program, Windermere partnered with Vintage Loans, LLC and is underwriting the costs of this program. “The federal tax credit has helped thousands of first-time buyers purchase a home,” said Jill Wood, President of Windermere Real Estate. “We want to offer a helping hand so second, third and fourth time homebuyers can buy homes as well.”

The Buy Now * Sell Later Loan is open to property owners in Western Washington to use as a down payment on the purchase of a primary residence. The maximum loan amount is $100,000 for six months or $200,000 for 3 months. There is no origination charge, no interest on the loan and no monthly payment required. The loan is due in full when the borrower’s home sells, or when the loan term ends, whichever comes first. Here is a recent article from the Seattle Times regarding the program.

The limitations of this program lie in that the total of all debt secured by the collateral property, including the bridge loan, may not exceed 65% of the collateral property’s current fair market value. The home buyers able to utilize this program must have a good chunk of equity in their current home, and therefore many of our clients may not qualify.

If you have any questions about this new Windermere loan, or if you’d like to discuss the prospect of “moving up” in home in the future, please just give us a call 🙂

Warm regards,
Domenica
Windermere Real Estate

Categorieshome values, Seattle, Washington real estate

5 Stats You Won’t Hear On The News…

We know that many of our clients are still concerned about whether buying or selling in this market is a good idea. As always, there are individual factors that affect each person’s situation, and making a move is a big decision in any market.

This being said, it’s important to keep the housing market in perspective and not be alarmed with the media’s need for a catchy “story” saying real estate is either booming or it’s busting. Here are some interesting statistics that give a slightly broader view of the housing market and the economy:

Fact #1:
Approximately 30% of all U.S. homes are free and clear and do not have a mortgage

FACT #2:
Of the 70% of households that have a mortgage, 96.15% are current in their payments, NOT in foreclosure.

FACT #3:
The U.S. Gross Domestic Product is more than the GDP of the next three countries combined.

FACT #4:
When mortgage rates fall to a record low, housing affordability surges to a record high.

FACT #5:
The Housing Affordability Index is at the highest level of affordability in history.

This article from August in the Seattle Times talks more about our local affordability index rating.

Local HIA

There is still time to take advantage of lower home prices and historically low interest rates. Please feel free to call us anytime if you’d like to talk about this information and how it might relate to your situation.

Warm regards,
Domenica
Windermere Real Estate

Categoriesfinancing, info for buyers

Low Interest Rates Make A BIG Difference

Right now interest rates for purchases (and refinances) are very low. Though the $8K tax credit is a big contributor to the improved market conditions we are experiencing, the low interest rates actually do more for affordability and buying power. Yesterday, with a client, we looked closer at why interest rates are low right now, and why they will go up in 2010.

This case study based on a 400k purchase with 20% down and 1% loan fee (Loan amount $320K). All third party and other costs will be constant for illustration purposes.

In terms of buying power, an increase in interest rate from 4.75% (current levels) up to 6.25% (late 2008 levels) will cost about $62k in purchase price for the same monthly payment in this scenario. The same payment = $400K versus $338K purchase price.

Rob McAllister (West Seattle Mortgage) explains the recent history of interest rates:

*In December of 2008 the FED announced they would begin purchasing mortgage bonds to help push rates lower and allow people to purchase homes at artificially low rates as part of their efforts to stimulate the housing sector of the economy.

*The mortgage bond purchase program was initially set to expire in July of 2009 after $700B of government funds were exhausted. Rates in June began to move from the mid-4’s (on a 30 year fixed mortgage) to the mid-5’s in a week’s time based on the anticipation of the FED’s program expiring.

*The FED then announced they were going to allot an additional $500B toward the mortgage bond purchase program to extend their efforts until the end of 2009. The FED has been actively purchasing mortgage bonds in 2009 which has kept rates around 5% for much of the year.

*Just last week the FED announced that they would extend the time they plan to continue their purchase plan until the end of the first quarter of 2010, although they did not allot any additional dollars to the plan. This indicates that they plan to phase out the program over a longer period of time to ‘soften’ the inevitable rise in interest rates as they exit the market. Though it should be a more gradual climb, rates will begin to go up based on normal market conditions (no government involvement).

Conclusion: Interest rates are as important as price (or more important) to factor into the home buying equation. We are here to answer any additional questions you have about this topic and hope you will call us as you consider your options.

Warm regards,
Domenica
Windermere Real Estate

Categoriesinfo for buyers

$8,000 Tax Credit “Last Days”

We know we’ve talked about it before, but the November 30th deadline is drawing near.  For those of you still unclear about the tax credit, here is a great short video explaining the credit in detail.  (Please spread this email around to all your friends!)

$8000!
We’ve seen a marked increase in sales this spring and summer and feel that the market is ramping up in these last days before the tax credit expires.

Here is a graph of the Seattle market up to $400k looking back 14 months.  Most first time buyers fall in this price range.  We compare active listings to pending and sold listings to keep a pulse on the market trends.  In this price range there is a trend of fewer homes on the market and more sales compared to the same time last year.

Warm regards,
Domenica
Windermere Real Estate

CategoriesSeattle, Windermere

Real Estate Pioneer

Anne Bentrott is a long time agent in our office. In fact she has been with Windermere in West Seattle for over 25 years and a full-time Real Estate Agent in West Seattle for over 50 years. Wow!

Recently, as she is traveling (and scuba diving) more and more, she is winding down from an amazing career. Windermere has created an “Ambassador” status for her so that she can still, occasionally, represent her long time clients (some families covering 5 generations). We are proud to work for a company that recognizes and celebrates women like Anne.

Anne’s Story…

When Anne got her real estate license in 1957, she was turned away from the first office she approached (Norman DeMeyer) because the broker felt that if he hired a woman all the male agents would quit. So she went to Turner Real Estate, because “they would hire anyone.” She said they paid so little that it didn’t matter who was hired… Apparently, when she started, one of the “old guys” that worked there said, “Hey, did you know they hired a refugee from the dishpan?”

Back in 1957, there were only about 4 or 5 other female real estate agents in West Seattle, more in neighborhoods (like Broadmoor). “Women always wore suits and most wore hats back then.” She jumped in and built her career by really taking
care of her clients. Anne said that one of the hardest things for her was overcoming the stigma of being a real estate agent, because they had a bad reputation for not being trustworthy. She says she always put her clients first and lived by the motto: Your clients don’t care how much you know, they just want to know how much you care. This has been her guiding principle and it’s clear her clients know how much she cares.

We are so amazed by Anne’s long and successful career, in a field where women were able to break through the glass ceiling and become as successful as they wanted to be. Today there are at least as many women realtors as men, if not more. It has been enlightening for us to hear about how much has changed since the days when houses were sold with a one page contract and rarely with third party bank financing. To todays reality of computers and extremely detailed, ever changing, laws & addendums to protect the public, both buyers and sellers.

Our hats are off to Anne, and we wish her continued enjoyment and success in her coming years!

Warm regards,
Domenica
Windermere Real Estate

Categorieshome values

Blast From The Past

I was digging through a closet at my grandparents house and came across this magazine from 1976. Low and behold on the very last page was an interesting editorial about real estate values and the mortgage industry.

The old saying: “The more things change, the more they stay the same,” immediately came to mind.  Concern about families struggling to afford the “American Dream” has been a constant refrain over the last 30 years, and beyond.

At the same time, it occurs to me that there have been a lot of changes in what mortgage programs have become available for all buyers, and now we know the pendulum CAN (and did) swing too far to the other side. I think it’s interesting to gain some perspective about our current situation by hearing what people where saying during past times.

I came away from reading this with the hope that the current economy and real estate price adjustment period has taught us some lessons.  Maybe we will allow the pendulum to settle more in the middle.  With a steady job, decent credit and a small down payment many are able to buy a first home, and those who wait to build-up enough equity can then “move-up” into their next home.

No matter what you take away from the article, I hope you enjoy a little blast from the (real estate) past!

Sincerely,

Domenica
Windermere Real Estate

Categoriesinfo for home owners

Summer Home Maintenance Tips

Regular home maintenance can mean the difference between small, manageable repairs or costly endeavors when things are left untended too long. It can also save you money by keeping your systems working efficiently.

We know, from experience, that having a system and checklist are valuable tools to help break things into manageable pieces. Here are a few suggestions to help get you started:

  • Build a maintenance binder. Use dividers for sections such as interior, exterior, basement, attic, garage and systems. Keep all receipts and warranties under each designated section.
  • DIY Home Maintenance website has a fantastic seasonal checklist to help keep you on track. Print out a copy and get started!
  • In the mean time here are a few things to do this summer before the weather gets cold and rainy.
    Examine foundation walls for cracks or other signs of moisture and repair if needed.
  • Call your HVAC specialist for your semi-annual maintenance before it is time to turn on the central air.
  • If it’s not time for a professional furnace service check the furnace and change the filter. Make sure you have a good supply of furnace filters to take you through the year.
  • Check refrigerator and freezer door seals twice a year to make sure they are air tight. Pull the fridge out and clean behind and around making sure all the coils are clean.
  • Examine the window caulking each fall when you check on the storm windows. Clean the gutters as needed. Make sure the path is clear to utility meters.
  • Make sure air vents inside and out are not blocked by foliage or debris and check attics for evidence of condensation.

Sincerely,

Domenica
Windermere Real Estate

Categoriesevents, going green

Neighborhood Walkability & West Seattle Summer Fest

Happy Summer!

We know how important proximity to neighborhood ammenities is to our clients. It is one of the top 5 criteria we hear from the buyer clients we work with and recently came across this website that rates the “walkability” of any address. It’s an interesting site, that we hope you’ll appreciate.

http://www.walkscore.com

Walkable Neighborhoods

Picture a walkable neighborhood. You lose weight each time you walk to the grocery store. You stumble home from last call without waiting for a cab. You spend less money on your car-or you don’t own a car. When you shop, you support your local economy. You talk to your neighbors. Read more

We also wanted to let you know that this weekend is West Seattle’s Summer Fest, formerly called the West Seattle Street Fair and we will be at the booth outside our office (4526 California Ave SW) this Friday from 3:30 – 6pm. If you find yourself out and about, whether you walk, ride, roll, stroll, or even dance your way to the WS Junction, we would love to see you there!

Sincerely,

Domenica
Windermere Real Estate