Categoriesinfo for buyers, info for home owners

Rent vs Sell

We have recently been talking a lot about the opportunities out there for buyers.  Between rates, prices and inventory we all know it’s a great time to buy.

However, many of our buyers currently own homes.  And sometimes it’s just not the right time to sell your home.  The idea to move forward, buy a home and keep one’s current home as a rental is a common one.  This is a viable option for many, one that we advocate as part of a long term investment plan, but there are some serious considerations involved. One of course is qualifying for financing a second home and the other is that it is important to weigh the real costs of having a rental property.

We recently ran across this article from the National Association of Realtors.  It has a good breakdown of many of the factors to consider.

The Costs of Renting Out Your House
Renting out your house can be a smart financial move, as long as you calculate your costs carefully. Visit houselogic.com for more articles like this.
Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®

If you have been thinking it might be time to make a move please give us a call.  We would be happy to do a complimentary market analysis to help you make the best decision for yourselves and your family.

We enjoy the opportunity to help.  It’s always a pleasure to catch up and see what you’ve done with the place!

Warm Regards,

Domenica
Windermere Real Estate

Categoriesinfo for buyers

Rates vs Price: The Real Key to Purchase Power

Many buyers are considering whether to buy a home NOW or wait to see if prices come down a bit more. We wanted to clarify for our clients the most important variable in this equation: interest rates. The majority of buyers need financing to purchase their home. Interest rates are what buyers should be focused on, not prices.

Here is an example that illustrates the point clearly, based on our listing at 3236 41st Ave SW offered at $440,000:

With 20% down and a credit score over 700 buyers currently qualify for a 30-year fixed rate loan with a rate of 4.375%. The monthly Principal and Interest (PI) payment on a loan of $352,000 at 4.375% would be $1,760.17.

If we adjust for interest rates rising while keeping the payment at $1,760.17/month and 20% down you can see how higher rates will affect your purchase power:

  • January 2008: 30-year fixed rate 5.5%. At that rate a payment of $1,760.17/month qualifies a buyer for a purchase price of $387,024.57. $52,975.43 less than today.
  • August 2008: 6.5% = purchase price of $347,740.75. $92,259.25 less than today.
  • May 2000: 8.5% = purchase price of $285,949.18. $154,050.82 less than today.

It is entirely possible that interest rates will climb to 8.5% within the next few years. While this is still a decent rate, historically speaking, you can see it makes a huge impact on a buyers buying power. It would take a 35% reduction in home values to make up for the $154,000 difference an 8.5% rate would make to buyers.

Today’s incredibly low interest rates have created an amazing opportunity for home-buyers, and we just wanted our clients to know.

Warm Regards,
Domenica
Windermere Real Estate

Categoriesinfo for buyers, Seattle

Market Pulse

We are almost halfway through 2010 and the summer is nearly upon us-time to take a “pulse” of the current real estate market.  Seattle home sales in 2010 are up 22% over last year at this time, though there is still a lot of recovery to be realized.  Some price ranges are seeing a return to multiple offers (many in the $600K+ price ranges), other price ranges are seeing a dramatic rise in inventory as sales slow down after the end of the government tax credits for home buyers.

We’ve noticed a real shift in the way buyers approach the process because they hold most of the cards, and seller’s often feel pretty battered and bruised when they get to the end of a sale.  This New York Times article from last week summarizes the challenges seller’s are experiencing and we are working harder than ever to help our buyers and sellers navigate their transactions successfully.

The chart below shows the current supply of inventory and pending sales.  There has been a steep increase in inventory over the last few months and a decrease in pending transactions in May after the April 30 (tax credit deadline).  The normal seasonal shift (summer slowdown) is more pronounced this year, though we are noticing a new wave of buyers entering the market due to low interest rates (under 4.5%).  We will be very interested to see how the Fall market compares.

On a positive note, Seattle’s long-term projections are encouraging.  According to the Kiplingers Report Seattle is among the “Top 10 best cities for the next decade” which means we have plenty of time to get back on track.

Warm Regards,

Domenica
Windermere Real Estate

Categoriescommunity service, Windermere

Community Service Day

Our work is not about houses.  It’s about people.

We’re in the business of selling houses.  But more importantly, we’re helping people find a place they can call home.  Our commitment to service extends beyond each real estate transaction.  Every year since 1984, Windermere associates have skipped work for a day to complete neighborhood improvement projects.

Community Service Day is a great opportunity to give back to the communities where we live and work. In past years, our office has worked to clean and landscape several local schools, stretches of Alki Beach, and parks in need of extra attention.  Each office selects a project that best serves its community needs.

This year, our office is doing a large scale food drive for the West Seattle and White Center food banks.  On Wednesday June 16, we will be delivering bags to as many doorsteps in West Seattle as we can.  On Friday June 18, we will be back to collect any donations our West Seattle neighbors contribute.  In addition, our clients can drop off food donations at our office (4526 California Ave SW, 98116) Monday-Thursday next week or at the High Point Community Center (6920 34th Ave SW, 98126) on Friday between 9am-noon.

After all, real estate is rooted in our communities.  And an investment in our neighborhoods gives us all a better place to call home.

Warm Regards,

Domenica
Windermere Real Estate

CategoriesSeattle, Seattle schools

Seattle’s New School Assignment Plan

On June 17, 2009 the Seattle School Board approved a new student assignment plan.  Then on November 18, 2009 the School Board adopted new boundaries and a transition plan for the 2010-11 school year.  The change came about, in large part, because of huge budget shortfalls in the Seattle School district but also (according to the school district website) this plan is hoped to “provide greater predictability for families while still offering opportunities for school choice.”  Those in favor of this shift like returning to the idea of neighborhood schools and minimizing the need for mass transit to get kids to school.  Those who oppose fear that the disparity between schools will increase and quality education for all children will be further jeopardized.

Since the new student assignment plan was approved and the school boundaries were drawn, a new layer has been added to the real estate market.  More than ever, we are seeing “micro-markets” in certain school boundaries, both to the advantage and disadvantage of our clients selling their homes.  We are also working with many clients who are feeling the need to move before they are ready in order to keep siblings together in the same school, and some are opting to stay put longer for this same reason.  There are clearly immediate challenges that we are working through and still wonder, every day, how this change effects the long term real estate picture as well as the health of our public schools.

For those of you who don’t know, click here to find out what school boundary your home falls into:

We think it’s worth mentioning one positive opportunity that is available when students live close to their school: The Walking School Bus.  This was created as an alternative to busing, and is starting to gain traction around the country.

If you would like to discuss this topic in more detail, feel free to call us anytime!

Warm Regards,

Domenica
Windermere Real Estate

CategoriesSeattle, Seattle neigborhoods

Do you know about High Point?

In April our office enjoyed a guided tour through the Neighborhood House – High Point Center in West Seattle’s newest neighborhood, built from the ground up starting in 2006.  It was both impressive and totally inspiring.  Besides being a beautifully designed building, it is LEED certified and an environmental learning center.   This center was built to be the “heart” of the neighborhood with support services and gathering spaces for members of the community and the home base for the neighborhood association.

In Phase 1 of High Point development, five builders were chosen to develop over 200 homes that were all kept to a high standard of green building.  The roads, parks and infrastructure addressed the community aspect of “neighborhood” and the environment in their planning and creation.  The result has been a huge success.  The High Point neighborhood has won many awards since the project began and now the community is really flourishing and growing.  High Point, like all neighborhoods, is not without its problems but the residents are coming together to make a community and support one another.

High Point is one of the highest points in all of Seattle so the downtown City views are impressive. There are many parks, trails, a community pea patch, and a man-made lake-that attracts a large number of water fowl as well as the award winning community center and senior residence. 

The development continues in Phase 2, and we look forward to the completion of more quality homes.  Homes in the High Point neighborhood range from $200,000-$550,000.  If you want more information about the neighborhood, or our new listing, just give us a call.
 
 
 
Warm Regards,

Domenica
Windermere Real Estate

Categoriesevents, Seattle, Windermere

Windermere Cup and Opening Day of Boating Season – May 1st

This weekend is the opening day of boating season and the Windermere Cup crew races.  We are proud of Windermere’s sponsorship of this event and thought we’d share with you a bit about it.

Windermere Cup

The Opening Day regatta has been a part of the opening day of boating season since 1970. In 1987, the race’s sponsorship by Windermere Real Estate, Inc. started the Windermere Cup Regatta. Since 1987, teams from China, Australia, Russia, South Africa, and the Czech Republic, among others, have come to race against the men’s and women’s rowing teams from the University of Washington on the Montlake Cut  (excerpt from UW site).

For more information about many of the events surrounding the Opening day of boating season, check out this Seattle Times article.
One day we’d love to be out on a boat during opening day festivities, so let us know if you need additional crew members-we’ll bring yummy food and drink!

If you happen to be down at the lake on Saturday be sure to cheer for our very own Windermere Dragon Boat team as they paddle by!

Warm Regards,

Domenica
Windermere Real Estate

Categoriesquarterly report, Seattle neigborhoods

First Quarter 2010

The first quarter of 2010 has been a good one for the Seattle real estate market, overall.  Interest rates are still hovering around 5% and there are great houses listed at value prices for buyers.  Sellers are getting offers from qualified buyers that are decent and loans are closing!

As always, it is valuable to evaluate the current market in contrast to past market conditions.  Here is a chart that compares Q1 2010 to every year back to 2006 (4 years ago) for perspective.

The average Days on Market (DOM) has gone down in most neighborhoods by about 10-20 days since last year at this time, although it is still up 10-20 days from 4 years ago.

The number of sales this quarter has almost doubled in most neighborhoods compared to last year, although there are significantly less sales this quarter than in 2006.

The values in the current market seem to be homes <$350,000.  There are a lot of homes for sale and less buyer demand in the lowest price ranges than the upper price ranges, which are finally seeing good activity.  This is an opportunity for investor buyers, so if you have considered buying a rental property, please call us to discuss your options.

Here is some more interesting data we got from the Northwest Multiple Listing Service.  It shows the % change year over year of the median home price in King County.  It is helpful to see the recent cycle and compare the last 20 years.  2009 was a tough year, as many of you know, but 2010 should shape up to be much more stable.  Stay tuned…

Warm Regards,

Domenica
Windermere Real Estate

Categoriesevents, info for buyers, info for home owners, Windermere

Spring Clean Event

When:     April 24th, 10am – 12pm

Where:    Windermere Parking Lot

               4526 California Ave SW

               (Entrance on 42nd)
What:      Safe document shredding
It’s that time of year again…Tax Time!
 

One of the questions that seems to come to mind every year is what documents and receipts we need to keep, and for how long?  Then, when it’s finally time to purge, there is concern about identity theft and proper disposal.  It’s enough to make us throw everything in a box and bury it in the backyard!

After giving it a little thought we decided to team up with other agents in our office to put on an event to help our clients safely dispose of their unwanted documents. You are invited to join us April 24th from 10am -12pm.  Bring all those boxes of old statements and receipts.  We will have an industrial shredder set-up and plenty of space for everyone’s stuff to go safely and securely to the recycling plant as confetti!

In preparation for the event, here’s what the IRS has to say about what you should keep and in what format you should keep it.  And we found a good chart  of this information at Bankrate.com.   As always, we recommend you consult your accountant to verify what you can safely dispose of.

We look forward to seeing you at the Windermere Spring Clean!
 
Warm Regards,

Domenica
Windermere Real Estate

Categoriesinfo for home owners, referrals

Curb Appeal is King!

We recently mailed out the 2009-2010 Cost vs Value report and thought we would share the info online as well.  The Cost vs Value report is produced by Remodeling Magazine together with the National Association of Realtors.  We find it to be a valuable resource each year to keep an eye on trends and expectations regarding home improvement projects.

This year we’ve seen some changes, and some continuation of trends, in the area of return on investment (ROI) for home improvement projects.  In reading through the content of this years report we find a downward trend in ROI for most home improvement projects but there is hope.  With the stabilization of the economy and eventual recovery we expect to see a stabilization and improvement in ROI as well.  Analysts speculate that the consumer may choose more modest projects based on more modest budgets and that is reflected in the percentages of return on smaller projects being higher than on large scale projects.

Curb Appeal is King according to this years report.  7 of the 10 projects with the best return things that improve the curb appeal of a home.  Partially because curb appeal is good for attracting buyers but also because those projects tend to be less expensive.

We asked one of our favorite general contractors, Gary Gutierrez with ACS Seattle, what he thinks about the report.  This is what he has observed over the course of the recession and how he has managed to stay competitive without cutting corners:

“Certainly the higher end remodels are down and pricing is fiercely competitive.  In my little world I have reduced my window replacement prices by 20% to get competitive and win more window replacement jobs.  This is the easiest for me to gauge as it only involves one trade and costs are simple to compute.  My cost for the windows have not gone down and have increased about 5% as stated in the Cost vs Value report.  I know lumber and basic other building materials have come down some but materials are typically only about 20-25% of the cost of a remodel job.  I have always been the project manager and have typically had a lead carpenter rather than supervisor concept which eliminates waste in my labor expense.  This is mainly how I have been able to make it.  Everyone who works for me is actually producing, not just supervising.”

If you’d like to read more about what projects give the most bang for the buck and some other tips on how to be efficient when making improvements to your home check out the entire report.

If you are contemplating a project or weighing the idea of moving against a remodel let us know.  We can help you make informed decisions and we always enjoy hearing  what you are working on.
 
 
 
Warm Regards,

Domenica
Windermere Real Estate