Jan 22

7 Tips for First-Time Home Sellers

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Sellers

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A number of economists are forecasting an increase in home sales this year, and some are predicting that more first-time buyers will be in the mix.

That’s great news for sellers, particularly first-time sellers most likely to have the kind of starter homes these buyers will want. Below are some tips for those selling a home for the first time.

Prepare for your own purchase

Before selling your home, give some careful thought about where you will live next, Planning ahead will save the time and money associated with moving multiple times or trying to get out of a deal after you sign a purchase agreement.

Get the home move-in ready

If you can afford it, do whatever you can to make your home move-in ready. That means replacing ripped screens, broken baseboards, leaky faucets and making cosmetic repairs, as well as updating landscaping. Your house needs to be in showing condition all the time.

Enlist the help of a good real-estate agent

Choose real-estate agents based on who does a lot of business in your particular neighborhood…

Price it right

A good real-estate agent will help you price the home right—from the start. Nothing will attract more buyers than making the right choice when pricing your home and nothing will deter buyers more than overpricing. Overpricing often means a longer stay on the market as well as future price cuts—which often makes a home listing look stale and less desirable.

Market the home appropriately

In addition to getting on the multiple-listing service, or MLS, as well as home listing sites online, your real-estate agent can suggest other methods of advertising, including open houses and direct mail postcards.

Click for more of your first-time home seller tips!

 

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Jan 17

2015 Remodeling Cost vs. Value: Less Is More

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Everything Else

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Remodeling Cost vs. Value Report, produced by Remodeling magazine in cooperation with the National Association of REALTORS® and REALTOR® Magazine, provides estimated costs for 36 midrange or upscale home-improvement projects, along with the percentage of cost that owners can expect to recoup when they sell.

Projects range from a new garage door to a master suite addition. As existing-home sales and home prices nationwide make remarkable strides upward, remodeling projects are also continuing to make a comeback in a big way.

As the 2015 Remodeling Cost vs. Value Report makes clear, large-scale jobs aren’t likely to return sellers their full cost. But there are improvements worth doing in anticipation of an upcoming sale. Some will return almost 100 percent of their cost.

Others may not have as great a payback, but they can improve the market position of the property in relation to the competition. (Think about the impact of beautiful kitchen photos on online home shoppers.) In addition, several pricier projects can provide owners with a few years of enjoyment while still offering a decent payback down the road.

Top 5 projects nationally in terms of cost recouped:

  1. Entry door replacement (101.8%)
  2. Manufactured stone veneer (92.2%)
  3. Garage door replacement (88.5%)
  4. Siding replacement, fiber cement (84.3%)
  5. Garage door replacement (82.5%)

Click to learn more. See all 36 projects broken down for the Seattle area http:// www.remodeling.hw.net/cost-vs-value/2015/pacific/seattle-wa/., or print the same on attached .pdf, CostvsValueRemodelingReport2015

And when you are finished with that great remodel and want to sell, let me know!

 

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Jan 13

Did It Make Sense to Wait?

Categories:

Buyers, East Bellevue, Financing, First Time Homebuyers, Market Updates

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Over the course of last year, many people debated purchasing a home, but ultimately did not. Let’s look at whether the decision to wait to buy made sense financially.

What happened in 2014?

The 30 year fixed rate on January 2, 2014 was 4.53% as reported by Freddie Mac. Looking at the chart below, the monthly mortgage payment with principal and interest for a $250,000 home would have been $1,271.

Even though interest rates have dropped below 4% and ended 2014 at 3.87%, national home prices appreciated by 4.8% in 2014 according to the Home Price Expectation Survey. The price raise in King County matches that increase. That same home appreciated by $12,000 and now costs $262,000. The most recent report by Freddie Mac puts the average 30-year fixed rate at 3.73%, still lower than last year.

Many may say, “See! Waiting a year made total sense, I’m saving $61 a month.” And that’s right―with this example, over the course of the year the cautious saved $732 with the currently lower interest rates.

The caveat?

The hidden catch? The 2015 purchase price went up by $12,000 which makes your 5% down payment increase $600. Consequently, your savings would only be $132/year or $11/month.

Waiting to Purchase Home until 2015
 Dollar Difference from 2014 Purchase
Jan 2014 Purchase Price $250,000
5% down $12,500
Monthly Payment (P&I) at 3.73% $1,271
Jan 2015 King County Purchase Price + 4.8% $262,000 $12,000
5% down $13,100 $600
Monthly Payment (P&I) at 3.73% $1,210 ($61)
Jan 2015 Eastside Purchase Price +16.25% $290,625 $40,625
5% down $14,531 $2,031
Monthly Payment (P&I) at 3.73% $1,343 $72

Living on the Eastside

If you are considering living on the Eastside, i.e., east of Lake Washington, the average 2015 median price went up 16.25%. That same house now costs $290,643,or $40,625 more. Your 5% down becomes $14,531, and your mortgage payment rises to $1343/month.

SO, living on the Eastside you saved nothing by waiting… you lost money. If you live in King County, you saved $11/month.

Then it comes down to the question of whether saving $11 a month is really worth holding off owning your home after you weigh in all the benefits that come along with that ownership… Like building your equity instead of your landlord’s equity, having control over your space, your added tax benefits, to name a few.

Bottom Line

The experts are predicting that by the end of 2015 homes will appreciate another 4% and interest rates will increase by a full percentage point. If you are in a position to be able to buy a home now, before these predictions become a reality, contact me and let’s get started!

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Jan 09

Lake Hills popular event… Polar Pancake Swim at Semina Club!

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Bellevue Community, Events in East Bellevue, Lake Hills

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Splash into winter with Samena Club’s 15th Annual Polar Pancake Swim. If you love Samena‘s outdoor pool and enjoy the crisp Northwest air then join us on Polar Pancake Saturday. The Wading Pool will be heated and open for the younger kids. The Polar Swim will be followed by a tasty, warm pancake breakfast.

Want to stay for the WIBIT?

Hang out with us after breakfast from 11am to 12pm and watch some fun cartoons on the Big Screen. The WIBIT will be out for your enjoyment from 12pm-2pm.

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Jan 08

FHA Mortgage Insurance Premium (MIP) to Drop

Categories:

Buyers, Mortgages, US Real Estate

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FHA Mortgage Insurance Premium (MIP) to drop

President Obama will be formally announcing that he will direct the Federal Housing Administration to reduce annual mortgage insurance premiums by 50 basis points, from 1.35% to 0.85%.

Zillow’s Allison Paoli ran the numbers on what this could mean for first-time buyers, saying: “On a $175,000 home loan with less than 5% down, this MIP reduction will equate to a savings of $818 per year or $3,932 over five years.”

FHA premiums are paid in 12 monthly installments every year, in addition to principal, interest and insurance. An FHA change now makes these premiums last the life of the loan regardless of how much equity is built into the loan. In prior years, borrowers could eliminate the MIP once equity in their home reached a certain percentage.

The announced changes will take the annual MIP from 1.35% to 0.85% for loans with less than 5% down, and from 1.30% to 0.8% for loans with more than 5% down. Here’s how a 50 bps FHA premium cut would break down:

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Jan 07

Seattle’s Tech Magnet means prices up - Redfin

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Buyers, Market Updates

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From the stalwarts to the tech magnets and comeback kids, the new year is likely to see several types of markets. Redfin recently highlighted six “housing market personas” that they believe will be driving the continued recovery in 2015. Here’s an overview of the personas and the pros and cons of each:

  1. Stalwarts: “Strong economies, lots of Millennial buyers, yet still affordable.”
    Good news: Lots of jobs and booming economies.
    Bad news: Picky buyers and lack of selection.
    Markets that fit this persona: Chicago, Houston, and Dallas.
  2. Topping Out: “Sky-high prices that will peak and even dip into negative territory this year.”
    Good news: Strong economies and well-paying government jobs.
    Bad news: Bidding wars and low inventories.
    Markets that fit this persona: San Francisco; San Jose, Calif.; and Washington, D.C.
  3. Tech Magnets: “Tech-driven economies, young wealth; getting more expensive, with growth limited by zoning or geography.”
    Good news: Lots of wealthy households.
    Bad news: Little room to expand, and suburbs losing popularity.
    Markets that fit this persona: Boston, Seattle, and Denver.
  4. Comeback Kids: “Markets hit hard by the financial crisis that will see a pickup in sales in 2015.”
    Good news: Lots of investors and broad-based job growth.
    Bad news: Few affordable single-family homes, and new construction mostly limited to the luxury market.
    Markets that fit this persona: Miami; Atlanta; and Orlando, Fla.
  5. Sleepers: “Not in the news much, but mid-priced cities with good economies and job opportunities.”
    Good news: Lots of new development and big tech-job gains.
    Bad news: Not many affordable homes available.
    Markets that fit this persona: Baltimore; Philadelphia; and Raleigh, N.C.
  6. Down But Not Out: “Hit hardest by housing crisis, fewer jobs, still working through foreclosures.”
    Good news: Lots of homes for sale.
    Bad news: Overzealous builders and cookie-cutter remodels.
    Markets that fit this persona: Las Vegas; Phoenix; and Tampa, Fla.

Source: “From Stalwarts to Comeback Kids and Sleepers, Redfin Names 6 Housing Market Personas for 2015,” Redfin blog (Jan. 5, 2015)

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Jan 01

Immigration reform could generate $500 billion for housing!

Categories:

Housing Market, US Real Estate

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If current legislation that creates a path to legalization for 11 million undocumented immigrants is passed, the nation’s Hispanic real estate leaders estimate that it would create a new pool of 3 million homeowners and pump more than $500 billion* in sales, income and spending into the U.S. housing economy.

The chain reaction triggered by home purchases would drive demand for more than $500 billion in real estate transactions and an additional $233 billion in origination fees, real estate commissions and consumer spending associated with homeownership.

Immigration Reform & Housing

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Dec 29

2015 Home Sales to Hit 2007 Levels

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US Real Estate

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According to Freddie Mac’s latest U.S. Economic & Housing Market Outlook, home sales in 2015 are predicted to show an increase back to the numbers normally associated with a healthy real estate market.

“We are projecting a 4 percent rise in sales to 5.6 million, which would mark the highest level of annual sales since 2007.”

And their optimism was seconded by both the National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA).

 

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Dec 19

Buying a Home with Only 3% Down Payment

Categories:

First Time Homebuyers, Mortgages

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Yes, you can buy your new home with as little as a 3% down payment!

Buying a Home for as Little as 3-5% Down | Keeping Current Matters

There is a common misconception that many buyers have regarding the down payment necessary to purchase a home. Multiple studies reveal that 40-50% of Americans believe you need between 15-20% of a down payment to be eligible to purchase a home. Not true. The rules have changed.

HousingWire reported that both Fannie Mae and Freddie Mac formally announced their 3% down options on home purchases. Fannie Mae’s plan will be effective December 13, 2014 while the Freddie Mac plan will be available March 23, 2015. The HW article quotes FHFA Director Mel Watt:

“The new lending guidelines released today by Fannie Mae and Freddie Mac will enable creditworthy borrowers who can afford a mortgage, but lack the resources to pay a substantial down payment plus closing costs, to get a mortgage with 3% down. These underwriting guidelines provide a responsible approach to improving access to credit while ensuring safe and sound lending practices.”

This is great news to millions of purchasers that have been denied the opportunity to own their own home because of the almost impossible burden of saving for a 20% down payment.

Will these programs create future challenges?

Certain pundits fear that low down payment programs will create a wave of foreclosures down the road. Mr. Watt also addressed this concern:

“To mitigate risk, Fannie Mae and Freddie Mac will use their automated underwriting systems, which include compensating factors to evaluate a borrower’s creditworthiness. In addition, the new offerings will also include homeownership counseling, which improves borrower performance. FHFA will monitor the ongoing performance of these loans.”

Here are the direct links to the guidelines for each program:

Fannie Mae 3% Down Program

Freddie Mac 3% Down Program

Remember, as with any new program, there will be some confusion as it is unveiled. Contact a mortgage professional for a deeper understanding. Don’t have a mortgage person yet? Contact me for a referral.

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Dec 18

Bellevue, WA 98008 - Market Overview Dec 2014

Categories:

Bellevue Community, Home Valuation, Lake Hills

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BELLEVUE, WA 98008

Market Overview

  • 107 homes for sale with prices ranging from $230,777 to $3,500,000
  • 7 homes were sold last week
  • 3% of listings had price increases; 48% had decreases.

Profile of the Average Home for Sale

  • List price of $473,490 and costs $218 per square foot.
  • 2,173 square feet of living space on a 8,838 square foot lot.
  • 3.9 bedrooms and 2.5 bathrooms.
  • 45.2 years old.
  • On the market for 163 days.

Market Inventory Snapshot

1st Quartile 2nd Quartile 3rd Quartile 4th Quartile
List Price Range 231k - 366k 369k - 474k 478k - 644k 660k - 3,500k
Beds/Baths 3/ 2 4/ 2 4/ 3 4/ 3
Square Feet 1,635 2,007 2,396 3,723
Homes For Sale 27/107 (25%) 27/107 (25%) 27/107 (25%) 26/107 (25%)
Market Index cold cold cold cold

Source: Core Logic, as of December 18, 2014

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