Categoriesinfo for buyers

3 Critical Questions

Thinking of buying a home?…

I bet you are getting a lot of advice! Your friends, family and the lady in the check out line have your best interests at heart, but they may not be fully aware of your needs and what is currently happening in real estate. Lucky for you I do!

There are 3 critical questions to ask before taking the plunge into the real estate market. Give me a call for a consult if you are contemplating a move. This is a tough market for buyers but I can help you get where you want to go with a smile on your face!

Cheers and happy Turkey Day.

Categoriesinfo for buyers, info for home owners, Uncategorized

The ‘Modern’ Mystery

WHAT IS MODERN???

Many of you probably wonder what I’m talking about when I mention 360 Modern. Some of you may even wonder what the heck I mean by modern in general??? Am I talking about all those 50’s houses I can’t get enough of?  What about those ugly towering town homes they built down the street?  What is “Modern”?
Well my friends at 360 Modern give us a little taste of what we mean by that here. Take a look and let me know what YOU think “Modern” is! 

Categoriesinfo for buyers

Fannie Mae Extends Incentives for Buyers

Fannie Mae (FNMA/OTC) announced the expansion of incentives to encourage sales of HomePath REO properties to owner occupants. Now through October 31, qualified buyers and selling agents can receive financial incentives on sales of HomePath properties, which can be found at www.homepath.com. The incentives are part of Fannie Mae’s commitment to neighborhood stabilization, and are available on sales to buyers who will reside in the home as their primary residence.

“Supporting homeownership and stabilizing neighborhoods are critical to helping the housing market recover,” said Ed Neill, Senior Vice President for Credit Loss Management at Fannie Mae. “Our previous incentives have been effective in securing owner occupants for these properties. By encouraging homebuyers who will make these properties their long-term home, these expanded incentives will help to stabilize communities.”

The expanded incentives offer qualified homebuyers up to 3.5 percent of the final sales price to put towards closing costs. In addition, selling agents representing the owner occupant buyer can now receive a $1,200 bonus. The incentive must be requested in the initial offer. Eligible initial offers must be submitted on or after June 14, 2011 and must close by October 31, 2011. Investor sales are not eligible for the incentive.

HomePath properties offer buyers a wide selection of options, including single-family homes, condominiums, and town houses. HomePath properties may also be eligible for HomePath Mortgage and HomePath Renovation Mortgage financing, which offers homebuyers an opportunity to purchase with as little as 3 percent down…

If this is HomePath is something you are intersted in, please call me and I will send more information your way.

Regards,
Domenica

Categoriesfinancing, info for buyers

Rates vs Price

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

Categorieseconomy, financing, info for buyers, info for home owners

Rent vs. Buy

In the market today, we see opportunity for buyers – BIG TIME.  There are so many great homes on the market for buyers to choose from and interest rates continue to hover around 4.25%.  At the same time, we try to temper our enthusiasm about the current market (for buyers) and look at the big picture so we can help our clients make sound choices for their own personal situations.  In researching the topic “Rent vs. Buy” we found sound points in favor of both choices and would like to share with you some of the highlights:

  1. The info-graphic The True Cost of Home-ownership  offers a sobering look at how much it can cost to own a home.  It also outlines the comparison of renting to buying over a 5 year period, showing that at year five the benefits outweigh the costs of owning your own home.
  2. Matthew Gardner, a local Land Use economist, offers his insight into the future of home-ownership by looking at the past, in this recent blog post.  His conclusions are optimistic for our region and he feels there is reason to believe that Seattle will not “over-correct” when it comes to home-ownership.
  3.  This New York Times article offers a framework for analyzing the benefits of rent vs. buy using a concept of “rent ratio: the purchase price of a house divided by the annual cost of renting a similar one”.
  4. Finally, we recommend the calculator tools on freddiemac.com to compare your own situation.  This rent vs. buy calculator is one of the best we’ve found and is an interesting exercise to help you look at your individual situation.

As always, we’d love to participate in your explorations of whether now is the time to buy and we hope you will forward this to your friends who currently rent and are considering their options.
 
 
 
Warm Regards,

Domenica
Windermere Real Estate

Categoriesinfo for buyers, info for home owners, referrals, Seattle

What does your house say about you?

Part of helping our clients in a changing market is to be creative and resourceful about how we prepare and market properties.  We have been exploring the use of Feng Shui in our staging over the last few months and thought we would introduce the woman who has been helping us.  Danielle Varanda, owner of International Feng Shui Design,  has been practicing Feng Shui principals for many years and is offering our clients a special rate for consultations.  If you have interest in improving your space, and your lives, give her a call!

We asked Danielle to give us insight into how Feng Shui principals work in our homes:

“Just as we are all unique individuals, so are the spaces we live in. We tend to gravitate to places that resonate with us and our lives.  Individuals will find some styles of homes more appealing to them then others, and different locations will appeal to different people. For instance, extroverted people tend to live on a more dynamic street and people who are a bit more reserved will often prefer a quiet, calm neighborhood.

 Not only do our homes reflect us in our taste and lifestyle, we can say that our homes nourish us and we nourish our homes. Our space either enhances us or may in some cases hinder us.  Our homes reflect, or could even be the cause of, what is going on in certain aspects of our lives.  For example, how well are things going in our financial affairs?  Do we have enough money coming into our lives?  If so, are we able to hang on to it or does it tend to slip away?  In the area of our health, how well do the people in the house sleep?  Are there health issues with the people who live there? How is the overall energy of the people living in the home?  Are the relationships within the home harmonious or is there often conflict? Did these changes occur after moving or remodeling?”

These and many other things are seen through Feng Shui principals.  When we keep these principals in mind we can literally see why these things are occurring, understand the source of the issues and ultimately offer solutions to improve the situation.”

Danielle recently consulted for one of our listings and we believe her guidance contributed to the successful sale of that home.  If you would like to hear more, or have any questions, just give us a call!

 
 
 
Warm Regards,

Domenica
Windermere Real Estate

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

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