Residential Real Estate in SW Washington State

Residential Real Estate Services with Passion, Integrity, Knowledge

You are here: Home / Blogs

You Can Test Drive a Car … But Not a House!

by

The last couple of weekends have included a few hours helping our son decide what car to buy. We’ve been to this dealer and that, had him prequalified … and have driven a number of cars, usually with the all-chatty salesman in the backseat telling us exactly why this car is THE one to buy. We’ve driven some brand new cars and are now taking a look at a few that a just a couple of years old (Mom insisting that maybe the payment will be a bit easier on his monthly budget.)

Now that we’ve graduated to the used car market, I’ve been busy reading CarFax reports, looking over my son’s shoulder and hanging onto the passenger “Lord Help Me!” strap conveniently located just above most of the passenger windows. (Word to the wise … don’t ever go on a test drive with a 21-year old male …. )

Now that I’m safely home, I’ve been able to reflect on the disparity between buying a car and buying a house. We’re out driving around in a $18,000 car, testing the brakes, going around corners, up steep hills, accelerating on the freeway–all with a eye on making sure that the vehicle seems safe, feels good, and is worth going to the step of taking it to our trusted mechanic before going down the buying path.

However, buying a house … many times more expensive, doesn’t include that same test drive. There’s no chance to sit in the house long enough to decide if it’s drafty, cook a meal in the kitchen and see if the layout really truly works or pack the closets to see if the clothes all fit. All of those things are a bit subjective. We think it’ll work. We walk through the house–maybe a few times–then begin the purchase process. With careful thought and due diligence, we hire a trusted inspector to test and prod the house to reveal its strengths and weaknesses. We measure the rooms, sometimes draw them out on paper and hope everything fits.

But test drive? Nope. That’s reserved for much smaller purchases … like cars, trucks, and RVs.

As Agents/Brokers, it’s important to provide as many opportunities for our Buyer clients to look at a house at their own pace. To figuratively kick the tires, lay on the floor of the empty bedroom to see if the bed fits and stand in the pantry to evaluate the food storage. Because buying a home is truly the largest purchase they’ll ever make. It’s the best we can do .. their test drive begins the day they move in.

*photo courtesy of egg on stilts via Flickr

A Great Lender Helps From Start to Finish, Especially in a Short Sale

by

business meeting

One of the very first steps in the home buying process is determining how a Buyer will pay for their new home. Not only must a Buyer determine much they can afford, but how an offer must be structured–whether closing costs must be paid by a Seller, gift funds will be used for a down payment, how much of a down payment will be paid, and so on.

Having a great lender as part of the Buying team is critical, but especially so with short sale purchases.

It can be difficult for a lender to help a Buyer determine exactly how much they might need to close the sale. A good faith estimate on the front end of a short sale might not be appropriate; interest rates, dates of closing, and other terms may change before lender approval occurs several months later.

Will the Buyer have sufficient funds to close? Will they have sufficient reserves; will they be comfortable with their payment?

A GREAT lender prepares an estimate of costs at the beginning, then meets periodically with the Buyer throughout the process, updating them on the changes and making sure they understand the numbers. They help the transaction succeed – from start to finish.

Working with an agent experienced in both listing and assisting buyers with short sales … and considering their recommendations for a great short sale lender will ensure success and confidence as a buyer proceeds through the process.

Questions to Ask a Loan Officer

by

Photo thanks to Scott Macleod Liddle via Flicker

From my own practice, I know that Buyers often believe that they have the knowledge to make an informed choice in choose a loan officer or mortgage. Buyers are smart folks — they’ve done their homework; they’ve formed a relationship with their own bank; they feel that they can compare apples-to-apples when shopping for a mortgage.

In addition to comparing rates and costs, however, Buyers need to also ask these important questions of a mortgage professional:

  • Can you really close this purchase?
  • Will you provide the loan documents to escrow 2-3 days ahead of the closing date so that my purchase can close on time?
  • What is the minimum number of days you need to close this on time?
  • Will you call me back within a hour (or so) when I have a question?
  • Will you be in close contact with my Broker/Agent so that she knows what’s going on?
  • Will you explain the numbers to me that I don’t understand?
  • How many new purchase mortgages have you completed in the last year? What types? (i.e., do you have experience with VA loans, FHA, rehab loans, etc)
  • Will you meet or beat the builder’s preferred lender’s rates or current offer?
  • If you’re not a bank, to whom do you anticipate that your company typically sell my mortgage?
  • Will you be my trusted advisor, not just for this purchase, but going forward from here so that I know when it might be wise to consider refinancing? (or whatever)

See, it’s not just about rates and closing costs. It’s about making a wise decision based on the knowledge of your loan officer. I have a short list of trusted mortgage folks with whom I’ve worked for years! It’s a short list, because it’s very hard to find excellent loan officers! Both of these mortgage professionals do what they say, when they say, with the terms they say. They stay in touch with me so I can be of service to you. They stay in touch with you so you know what’s going on. Click here to visit the page that contains the names of these two ladies.

There are only two names on the list at the moment because I’m very picky. These two are consistent, and they’re always there for my clients and for me. I like that … It’s all about trust.

Part II–New Construction In and Around Auburn, WA

by

This post was originally published in March of 2012! I’ve recycled the post as there is still significant new construction in and around Auburn, WA, although many of these subdivisions are now completed. However, each of these builders continues to build homes locally and should be considered when buying new construction!

framing10In Part I of this post, I reviewed new construction and communities by DR Horton, Soundbuilt Homes, Schneider Family Homes, and Conner Homes. Because new construction is such a huge part of our south King County and north Pierce County Auburn location, I’ve split my quick overview into two posts.

In addition, you’ll find a few more tips about buying new construction in the post 20 Tips to Buying New Construction.

Premier Homes

hammerI haven’t had a chance to work with any of the Premier Homes folks yet, but wanted to include them in this list as they have a nice community (Northlake) just barely southeast of Lakeland Hills in the Pierce County side of Auburn. At the same location, Lennar Corporation recently acquired the remaining home sites at Northlake and is now building them as Woodland Meadows. I’ve toured a couple of new construction Premier Homes over the last few weeks and they are beautifully finished and a good option for someone shopping in the upper $200’s. A quick drive through the neighborhood last weekend showed lots of activity on the Lennar home sites!

Polygon Homes

hammerPolygon’s home plans have long been some of my very favorites. They’re wonderful folks to work with too! In addition, the Polygon builder team has one of the best home warranties, supporting their homes door-to-door for 3 years (with an optional 2 additional years at the Buyer’s cost), with a total of 10 years for the home structure. Coho Creek in the Covington area (just behind Kentwood High School) has homes available from the mid $200’s up to the low $300’s ranging from about 1,700-2,500 square feet.

Near the south edge of Auburn in Bonney Lake, you’ll find The Estates at Lakeland Hills with slightly larger homes ranging from the higher $200’s up into the mid- $300’s. There aren’t too many of these homesites left, however; The Estates is just about sold-out!

Richmond American

hammerRichmond American recently purchased SDC Homes and appears to be continuing with many of the original SDC home plans and finishes. In addition, Pinnacle Estates is a gorgeous Richmond American community in the Lakeland area of Auburn—BIG beautiful homes with awesome views that sit up high on the east and southern ridge of the area. Note that Richmond American, in my opinion, probably builds some of the biggest homes for the money that I’ve seen, along with their signature art niche’s in the entry halls of most of their homes. Really attractive!

Henley USA (MainVue Homes)

hammerMainVue developments are springing up all over the place. Their newest development on the east hill, Kendall Ridge, is a gorgeous site – incredible views of the Cascade Foothills and Mount Rainier are available from the sites that site on the Ridge. (As an aside, the photo that comprises the banner of my Web site was taken from this development a couple of years ago – when there was just dirt!)

The MainVue floor plans are unique, gorgeous, and truly a breath of fresh air with huge glass doors framing their outdoor rooms (covered patios). Prices are a bit higher than some of the other builders, but with their less common floor plans, appear to be attracting quite a few avid followers. Expect prices to be in the mid $300’s to mid-$400’s at most MainVue communities.

Edgeview

hammerWhen driving anywhere near Lakeland Hills, it would be hard to miss the many bright red signs pointing to the new Edgeview Homes community on the far east side of the area …just off of of Evergreen Way and Kersey Way. Edgeview is built high up a on ridge, and comprises probably a couple hundred home sites, community parks, playgrounds and even an off-leash dog park (yay!!). The largest home plan in the community is just over 2400 square feet, and most of the home sites are somewhat on the smaller side – maybe not important when all of the parks and playgrounds are factored in. Prices range from the low $200’s to mid/upper $200’s.

Covington Pointe

hammerI haven’t had a chance to visit Covington Pointe, but really need to! This is a rare 55+ community, located conveniently near the Multicare Center just off of 180th. The community is gated and features gorgeous one-level homes (no stairs!). I’ve included it here because I haven’t seen any new 55+ communities for quite some time.

Kendall Homes

hammerJust outside of the Auburn area are three communities being built by Kendall Homes. I wanted to include them in this list, however, as I did just assist a buyer in their purchase of a new Kendall Homes house … and it was a great experience! Of note, especially, was the willingness of the folks at Kendall Homes to make some slight modifications for my client. They removed a wall, repositioned a door, modified a shower enclosure, and, outside of the contract, allowed him to purchase his range and have it installed just in time to satisfy the final appraisal and inspection. For communities in the area, visit Mountain View in Maple Valley (just off Witte Road), and 132nd Court and Vermilion.

Quadrant Homes

hammerUnfortunately, there aren’t any Quadrant communities currently being built in Auburn that I can see. I’ve really been a fan of their new Revolution series; an update to their offerings that was long overdue in our area. There are a couple of small Quadrant communities in nearby Kent, along with a few homes here and there in other locations. Be sure to ask about their new homes when you talk with your agent. I think you’ll be impressed!

Part I — New Construction In and Around Auburn WA

Should You Refinance Your Home?

by

If you feel you have sufficient income to continue making payments on your home, but need to lower the payments, one of the best choices — providing current interest rates are justifiably less than your existing rate —  is to refinance the home.

By refinancing, you may be able to remain with your existing lender, or perhaps take advantage of better terms offered by another.

In addition to examining the current interest rates, the next question a homeowner must face when pursuing a refinancing option surround the property itself: Is the value of the property sufficient to support a new, replacement loan? Remember that an appraisal for the property will be done by your lender and must reflect that the loan amount sought is no more than the current guideline for lending. In a conventional loan, that generally means that the loan can be for no more than about 95% of the appraisal amount, based on your particular loan. At the moment, FHA will loan up to 96.5% of the home’s value.

Finally, you must determine whether your current credit position will support a new, replacement, loan. If you’ve fallen behind in your payments on your mortgage or perhaps on other debts, it may be difficult to qualify for a refinance mortgage.

 

 

The information presented on this Site should not be construed as legal or financial advice. You are advised to seek consultation with a qualified Attorney and Accountant. ©Gabrielle Nemes, 2010

Part 1 – New Construction In and Around Auburn WA

by

framing9This post was originally published in March of 2012! I’ve recycled the post as there is still significant new construction in and around Auburn, WA, although many of these subdivisions are now completed. However, each of these builders continues to build homes locally and should be considered when buying new construct

Acquiring a new home is thrilling for every Buyer, but new construction, in particular, maintains an exceptionally high level of anticipation, followed by what seem to be endless delays and frustration, and then finally culminating in a near fever-pitch of excitement.

In addition to the shiny new finishes and new house smell, of course, new construction is attractive to many buyers because of builder financing and low down payment incentives, extended warranties, and the desire to decorate a home from the ground up, choosing plans, colors, cabinets, counters, and flooring. Not to mention that a contract written for new construction will close, unlike so many of the short sale listings that are prevalent in our area. There’s a sure thing happening in new construction … less so with distressed property listings.

It can’t be stressed often enough, however — If you have a plan to purchase new construction, whenever possible, visit the sites for the first time with your own broker/agent, who will register you in the community and help you obtain all of the important information. Your agent can then work on your behalf from the very beginning to be of help to you as you buy the home of your dreams.

If you can’t, or don’t, go with your agent the first time around, be sure to let the site representative know that you are working with your own broker/agent and that the agent will contact the site rep ASAP on your behalf. Then get in touch with your agent before visiting the site again and again!

While I haven’t worked from start to finish with each of these builders, I’ve visited a most of these communities, helped Buyers through the new construction process, and had a chance to talk with many of the site representatives. Over the years, I’ve resold many many of their homes as well!

Here’s a brief summary of new construction in the area and in no particular order; click the builder or community name to visit the associated Web site. Because there are SO many new construction options in this south King/north Pierce county area, I’ve split this list into a couple of different posts. Be sure to refer also to Part 2 – New Construction In and Around the Auburn WA Area, and especially 20 Tips to Buying a New Construction Home, also to be posted in the next few days.

One quick addition note – the builders and communities in this list are not custom build sites – all are based on preapproved plans and typically few changes can be made to the plans, although all offer a limited number of upgrades so that the look of the home can be personalized.

DR Horton

hammerOne of the biggest builders in the area is DR Horton. Prolific, that’s for sure! DR Horton tends to build similar plans in almost every community I’ve visited and can be a very good choice especially for first time homebuyers. In my experience, they tend to have great financing incentives packaged with their listings, which can be attractive if you are comfortable working with the DR Horton preferred lender.

There are a couple of DR Horton communities near Auburn – one on Auburn’s west hill (Lakepoint) with prices in the low $200’s, and another huge community in Covington (CornerStone), just past the Highway 18 and Kent Kangley interchange with prices in the higher $200’s to mid $300’s.

Schneider Family Homes

hammerThe folks at Schneider Family Homes are definitely one of my favorite builders for reasonable prices with nice quality finishes. I’ve worked with a buyer in the past who purchased a new Schneider home—it was a wonderful experience and those buyers are still thrilled with their house, and I’ve been involved with resales of several as well. While the folks at Schneider homes tend to build just a few homes at a time in each community, there are typically a few homes available in each neighborhood. You’ll find lovely true hardwood floors, solid granite surfaces and thoughtful designs. Most Schneider homes in the greater Auburn area tend to be priced in the low-mid $300’s, from about 2,200 square feet and above.

Soundbuilt Homes

hammerSoundbuilt Homes is another busy busy builder in the area with three Auburn communities currently under construction. Their basic price point is really attractive to many buyers, offering generous size for the $$.

Brandon Meadows may be their newest community – located on 312th just past the 132nd and 312th junction. Similar to the newest MainVue community almost across the street on 312th/132nd, this community’s property was cleared several years ago just before the housing decline in 2009 in our area. From the Brandon Meadows Web site, it looks as though pricing will be from the mid $200’s up into the low $300’s.

Two additional sites for Soundbuilt in Auburn are the small Sterling Court, located at about 304th and 121st with similar pricing, and Terrace View, a townhouse community located in Lakeland Hills.

Conner Homes

hammerConner Homes is a local builder with some delightful home plans and a couple of communities in the Auburn area. They tend to build about 20 houses at a time in each community, which means each build gets personal attention and the communities are not quite as “rapid fire” as some others. I like their finishes and floor plans a lot!

Monterey Park in the Auburn valley (just behind one of the Carpinito Brother farms) has both single family and duplex style homes ranging from about $175k to the high $200’s.

Lakeland East in the Lakeland Hills area of Auburn features homes from about 1,300-3,300 square feet (quite a spread!) fitting in to almost every buyer’s pocketbook.

Staging Without Spending — One Key to Home Selling Success!

by

Staging Without Spending — One Key to Home Selling Success!

Rearranged furniture for impactEffective staging is a tremendous benefit when needing or wanting to sell a home. But professional staging can be expensive. Don’t get me wrong — professional stagers do absolutely amazing jobs! But sometimes the money’s just not there to hire a stager, buy a bunch of staging materials or rent snazzy furniture.

Although the real estate market seems to be recovering slightly, most sellers still need to capture every penny possible from the sale of their existing home — perhaps to gain maximum sufficient funds to purchase a new place or perhaps to attract a sufficient price will keep their sale from falling into the short sale category.

Simple clean-up and rearranging of furniture can do wonders without spending much more than the cost of soap and water, a few boxes to store extra clutter and possessions, and maybe the short-term rental of a storage unit. 

Removing worn throw rugs, dingy pillows and bedspreads is a tremendously effective tool. Sometimes merely washing and ironing (yes … that word) is sufficient. A bottle of bleach and a can of my favorite “Barkeepers Friend” can make kitchens and bathrooms really shine. Remove all of those refrigerator magnets, canisters, coffee pots, grinders, toasters, etc. as they just look like clutter when photographed. (And a good listing agent should take lots of photos of your house to show off its best features.)

A seller and I often spend less than $250 when preparing a home for sale. For less than about $50, I always buy a few brand new thick fluffy towels, color-appropriate shower curtains, and candles to work wonders in bathrooms. Add a couple of ribbons around the towels for a model-home look.

A visit to the local thrift store can provide a couple of big toys (scrubbed sparkling clean, of course) to add personality to an empty bedroom. A gallon or two of mis-mixed neutral-toned paint and a couple of hours can freshen up a stale entry. Don’t forget the discount stores such as Big Lots!, TJ Maxx, Marshalls, HomeGoods when shopping for linens and impact art pieces. Check out the clearance aisles at Home Depot or Lowe’s if you need to replace or update light fixtures or cabinet pulls. I’ve picked up small tables and then spray painted them for entry accents.

And don’t forget the front door. My favorite is to paint the door a deep charcoal or black. Then put a couple of pots of live flowers near the front door. Not just greenery (of course it depends on the time of year), but some nice yellows, reds, or purples sitting on the clean front porch near that freshly painted front door — just does wonders.

I wish I’d have taken more “before” pictures from some of the homes I’ve sold, but did scrounge up a few before and after photos. Maybe these few photos will give you a few ideas.

Staging Without SpendingBefore (nice kitchen & well kept, but look at the clutter’y fridge and the stuff above the cupboards.)

 

 

 

 

Staging Without Spending -- AfterHere’s the same kitchen after decluttering. Still a few necessary things on the counter … but look at the difference! Could we have removed the wallpaper border? Yes … but the owner really pushed back and I wanted to pick my battles.

 

  
Staging Without Spending - BeforeAnother before and after kitchen. Of course it helped tremendously to remove the spent roses from the room …but even removing the extra microwave cart and adding a little breakfast table to the end made a huge difference!  Staging with Addition of Table -- $100  
Here’s another before and after. One of those difficult young teen’s rooms where stuff gets thrown everywhere. Tied up the curtains, removed the extra dresser and held the threat of extra chores and homework over the young owner’s head should the place get cluttered again during the selling process. You can’t see the posters on that were on the wall beside the bed and taped to the closet doors. Those were taken down, with the tape residue also scrubbed off.

Preparing for Sale - Teen Bedroom - BeforePreparing for Sale -Teen Bedroom - After 

  
Staging Without Spending -- Deck beforeEven outside small Staging Without Spending -- One Key to Successorganizational efforts can be amazing. Check out these before and after deck photos.

It was raining during the “before” photo and sunny during the “after” photo. We trimmed up the overgrown bush in the corner, rearranged the BBQ area,  swept the roof overhang and rearranged the deck furniture so it looked tidy. 

  
Total cost for new bedspread & pictures? -- $75I wish I had a couple of the “before” photos of this bedroom and bathroom. Owned by a single guy (what fun it was to work with him, actually! He was SO appreciative of everything I did to help him get his little condo ready for sale!)

Take it on good faith … with all of the sports posters and “stuff” that he’d carefully collected over the years, the place needed a bit of effort to get it market ready. This “blue” bedroom was a bit of a challenge, but adding a new bedspread and pictures cooled it down a bit without repainting. (By the way … we also removed the artsy “nudes” in the bathrooms. I could just envision a youngster’s pointed questions!)

The place sold for list price .. and very quickly once it was ready and during a time in the down market when it was VERY difficult to sell a condo!

  

Bath -- bought a $9.95 shower curtain & $10's in towels. Homeowner had everything elseIn almost every house, rearranging furniture and gathering all of the collectibles into a single “themed” room also goes a long ways. Prior to listing, walk through the house and notice how many things you’ve gathered that are similar — little ceramic boats, boat pictures, metal sailboats. We all tend to have things we love, but then we spread them out all over. Gather them together into a boat-themed bathroom or bedroom.

Sometimes you can Stage Without Spending — One Key to Home Selling Success!

Think Housing Prices Are Too High?

by

I have a client that loves to send me little jokes and ditties every now and then. He’s just slightly older than I am and loves to pontificate about how prices are outrageous and how he can’t imagine how people can afford to live any more.

In some respects, of course, he’s absolutely right. But in others, it’s amazing how little prices have gone up.

Today he sent me a list of a few things and their prices in 1955. Of note, of course, are prices like gasoline – 23 cents a gallon; milk – 85 cents a gallon; eggs – 61 cents a dozen.

A bit of checking around and I see this list, thanks to www.fiftiesweb.com: 

House: $22,000
Average income: $4,137
Ford car: $1606-$2944
Milk: $.92
Gas: $.23
Bread $.18
Postage stamp: $.03
Sirloin chops: $ .69 lb.
Pot Roast: $.43 lb.
Eggs, doz.: $.61
Coffee: $.93 lb.
Milk, ½ gal. $.43
Potatoes, 10 lb. bag: $.53
Starkist Tuna, 6 ½ oz. can: $.25 lb.
Oreo cookies, 11¾ .oz pkg: $.39
Potato Salad, pint: $.29
Cracker Jack, 24 pac: $1.49
Apple cider,½ gal.: $.49
Gum Drops, 1½ lb. pkg: $.29
Ivory Soap, 2 bars: $.29
Mickey Mouse lunchbox: $.88
Slinky: $.88
Nylons, pair: $1.00
Home permanent: $1.50
Baseball Glove: $9.95

 

As I reviewed this list, I’m thinking … wow, some of these haven’t gone up much at all. I mean, last week’s ad for potatoes was something like $1.48 for a ten pound bag (about 3 times more than 1955); milk – $2.59 a gallon (oof, that’s a big price increase: about 6 times, although I’m pretty sure I see milk for $1.99 a gallon now and then) eggs were something like $1.50 a dozen or so (can’t find an ad anywhere) – up about 2.5 times.

gas prices

 

Gas in my area (just south of Seattle) is right around $3.30 a gallon – up 14.3 times (that’s a gotcha!)

 

Anyway, then I decided to look at the price of housing. According to this chart, the price of a home in 1955 was about 5.3 times the average income.

Hmmmmmmmmmmm

key with dollar signLooking at local statistics, Washington state reports that the 2011 median income for King County (basically the greater Seattle area) is projected to be $66,294. Median house price for sold homes in King County right now? The Northwest Multiple Listing Service (NWMLS) says: $343,700 as of end of November. 5.18 times the median income. Pretty close to 1955.

Now, 1955 is just slightly before my memory (I was two in 1955) … I have memories of some of these though! I wonder what my grandchildren born in 2010 will think when looking back at prices when they’re 55.

Enough analysis this time of the morning!

Preparing Your House For Sale in Auburn, WA … or Anywhere!

by

PrintPreparing Your House For Sale in Auburn, WA … or Anywhere!

As with so many of the good things we want in life, selling a house is just plain hard work. Your house will be examined through a looking glass, so it’s critically important that it be well prepared, well priced, and well represented. Here are just a few of the steps necessary before hanging that For Sale sign:

House Prep

While this sometimes feels like an almost insurmountable task, carefully preparing your house is definitely the first step in successfully selling a home in today’s market. If you’ve ever taken the time to tour carefully staged model homes, you are likely aware that your home must compete on a very high level to quickly sell and pull the numbers you know your house is worth.

Basics

Start with these basic steps:

  • Declutter
  • Clean the closets
  • Depersonalize
  • Clean, clean, clean

Your house must sparkle, both inside and out. Remember that you’ll be packing up to move anyway … so start by going through the closets, the cupboards, removing the chatskies that have gathered in the bookcases, shelves and tables, and so on.

And don’t spare the furniture polish and glass cleaner. Dirty windows are definitely deal killers for so many people. They want to see bright clear views of the yard and garden.

Finally, don’t forget the outside! From the front door to the driveway to the fences. Be sure everything is neat and tidy. Bring in fresh bark if needed; mow the lawn; trim the hedges … get it?

Staging

It isn’t always necessary to hire a professional staging company to make your home look like a model home, but it is critical that your home display itself with an eye for design and presentation. If you can’t do this by yourself, at least start by bringing in your real estate broker (that’d be me!) and we’ll go through some use what you have tips to get started. And talk about professional staging, too!

What’s Selling?

Take a look at what’s actually selling in your area. Is your neighborhood still surrounded by foreclosures? How about new construction? Big houses? Smaller houses? Remodels? Each of these factors point to the type of marketing approacPrinth your home may require.

Pricing

One of the most common comments I hear when sitting with “wannabe” Sellers for the very first time is “The neighbor just sold their house for $$!” In fact, this comment is often the reason we’re sitting together at all. So how did that happen? In part because they knew the numbers.

When pricing your house, remember that your house is being weighed against every other house on the market. Therefore, your house needs to be the best value (in addition to looking the best, of course). You’ll be confident in your house price if you know these numbers:

  • Feature & Presentation Comparisons
  • $ per Square Foot Comparisons
  • Neighborhood Comparisons
  • Assessment to Sale Price Comparisons
  • Historical Data: Appreciation/Depreciation
  • Local Economic Factors

While not all of this data is easy to find, each number plays a role in determining what the optimum sale price of your home should be.

Timing

Yes, timing truly is important, but it’s not the end-all. While you need to know the timing trends for your area, remember that not every house sells only in the Spring and Summer. People have to move all times of the year. Your home may sell faster during the hot moments, but don’t panic if you’re not quite ready when the experts tell you to get going.

Marketing

Presenting your home to potential buyers requires knowledge of how buyers find houses and what they see when they do find it. It’s not just about hanging the sign, it’s about courting the right folks in the right way, and that includes both potential buyers and potential real estate brokers:

  • Photos
  • Online Presence
  • MLS Listing
  • Video Tours
  • Flyers

When you’re ready to think about selling your home, give me a call. We’ll go through all of the steps and information necessary when preparing your house for sale in Auburn, WA … or Anywhere!

 

 

Buy a House With Less Than 20% Down Payment

by

Buy a House With Less Than 20% Down Payment
Avoiding Mortgage Insurance — You Don’t Need 20% Down Payment

It is possible to buy a house with less than a 20% down payment.

One of the most frequent and often biggest hurdles when assisting potential home buyers is their lack of a 20% down payment, combined with their desire or need to keep their payment as low as possible. Typically their credit scores are pretty good, say mid 700’s or so, and they otherwise qualify nicely for a mortgage. They come to me wanting to buy a house, but thinking it’s not at all possible because they believe their only choice is to buy with using a low down payment FHA loan and then pay the staggering and never-ending mortgage insurance.

Over the past several months, the loan officer with whom I work most frequently has suggested to some of my clients that they consider using lender-paid private mortgage insurance rather than trying to save an additional 10% or even 15% in order to buy with a 20% down payment. The lender-paid option bumps their interest rate up an eighth or quarter of a percent, but still brings their monthly payment in less than it would be were they to pay mortgage insurance each month. That means they can shop for a bit more house and still keep their monthly payments at goal!

There are a number of calculators available that can help you determine whether it makes sense to use the lender-paid mortgage insurance option. For example, FHA.com includes a very helpful calculator that includes a mortgage insurance payment. Here’s a typical scenario in my area:

  • House price: $200,000
  • Property taxes: about $2,600 a year, which is 1.3% of the price or approximately $216 a month
  • Homeowner’s Insurance: about $600 a year, or $50 a month
  • Typical minimum 3.5% down payment
  • With good credit of say mid-700’s, interest rate might in in the neighborhood of say, 4% or so (or maybe lower … or maybe higher depending on the day)

Anyway … plug all of that in to the FHA calculator and you’ll see a monthly payment of approximately $1,400 a month.

Now assume lender-paid private mortgage insurance. Using my favorite loan officer’s calculator with the same approximate scenario, an interest rate of maybe 4.25% and down payment of, say, 5%, this brings the payment to just over $1,200 a month! Higher interest rate, lower payment.

Remember that I’m using a very rough scenario here and that there are certainly other factors to consider … but it’s important to remember that there ARE options and you can buy with less down payment than you think. It is possible to buy a house with less than a 20% down payment.

(By the way, in my area there are also programs that can assist you should you not have sufficient down payment … but that’s a subject for another blog post.)

Here’s the disclaimer: I’m not a loan officer, I’m a Realtor®. You absolutely need to talk to a lender to get the real numbers. I love my loan officer, Amanda Finnegan, especially since she’s honest, accessible, well qualified, and her bank (HomeStreet Bank), typically doesn’t sell their loans.

(Amanda’s temporarily out on maternity leave, but’ll be back in early December … contact her anyway, or contact me.)

 

How Much House Can You Afford?

by

Like most agents, I talk almost daily with folks considering a home purchase. We talk through all of their wants and picture their dream house in vivid color.

Within a very few minutes, however, I start asking the tough questions:

  • “How much can you afford?”
  • “Have you been preapproved?”
  • “With whom?”
  • “May I refer a few lenders to you that do outstanding work–they’ll help us nail down exactly how much house you can buy, and get you preapproved for a loan so you’re ready to go!”

… and so on.

These questions aren’t designed to be intrusive … they’re merely a way of helping me understand exactly where a Buyer really is in their purchase decision, to help them determine their balance point between their desired lifestyle and their desire to purchase a home … And, of course, to help them understand that this first step — the money side — is SO important!

Now, generally, my very first question is answered by: “I want my payment to be no more than $, although I could possibly stretch up to $.”

I’m not a mortgage officer, but it’s certainly part of my initial counseling session to help Buyers get started and to help them assess the balance point between their desired lifestyle and your desire to purchase a home. The question of “how much can you afford?” is just the first step. While providing them with a general feel for what they’ve described, I’ve also assembled a few tools that empower the Buyer to do a little research on their own.

With thanks to the folks at MortgageLoan.com, included on this site is a useful set of calculators to assist you in determining what your payments might be with various sorts of loans.

In addition, I’ve developed a handy little Excel-based FHA calculator that I’ll be happy to send to you–just give me a call (206.300.8421) or shoot me an e-mail message and I’ll get it right out to you.

16 Tips to Prepare Your Home for Sale

by

While buyers must shop within their financial qualifications, their decision to make an offer on a home is first, and foremost, an emotional response to the appearance of your home and property. The money and negotiation side to the actual purchase comes later.

In order to maximize the appearance of your property — thus eliciting more excited Buyers about your home, follow these 16 simple preparation tips.

1. Tidy up the grounds, porches and garage.

2. Keep the lawn trimmed and edged.

3. Make sure that your yard is clean.

4. Your front door adds to that first impression—be sure it is scrubbed or repainted if necessary.

5. Wash windows, window ledges and corners, and clean/dust window coverings. Grime is your enemy!

6. If any decorating or painting is needed (especially in the kitchen), do it now! Twenty dollars worth of paint will make a much larger difference in the sales price.

7. Bathrooms help sell homes. Make this room sparkle.

8. Illumination is like a welcome sign. Replace bulbs and turn on the lights.

9. Declutter the closets — pack away the clothes that are out of season during your sale period. Donate those that haven’t been used in a year or two. And don’t forget to also weed out the shoes and purses that are out of style and sitting on shelves or floors!

10. Declutter the kitchen cabinets and pantry areas. If your cereal boxes and chips are crammed into the cupboards, the buyer may think your kitchen is too small, requiring immediate remodeling on their part.

11. Clean up areas where your pets reside — that means making sure their kennels sparkle, the litter box area is neat and tidy (and smells good!).

12. If you have exotic pets like reptiles or even gerbils, mice, or hamsters, consider boarding them with friends during your sale period. Many people are allergic or even fearful! Remember that the idea is for people to concentrate on your house, not concerned about your pets (for whatever reason).

13. Walk around the outside of your house with a critical eye for signs of neglect or decay — this could be dry rot in deck boards, trim boards that should be powerwashed and repainted, roof shingles that are loose, and so on. Once a buyer spots something that strikes them as neglect, they’ll start looking for other signs. You want them to concentrate on the good features, not looking for things to pick apart at the time of the offer.

14. Walk through the inside of your home with that same critical eye. A running toilet, dripping faucet, carpet snags or just stained spots, all lead a buyer to question your upkeep. While homes are priced very low right now for a number of reasons, buyers still want to move into a home that won’t require tedious maintenance issues.

15. Pack away valuables, store extra furniture, knick-knacks, medicines, firearms, and personal information.

16. Pretend you are seeing your home for the first time through a buyer’s eyes. Call me for recommendations on how to stage the property for presentation to prospective buyers.

Finally, although the next two points don’t directly affect the appearance of your home and property, following them will greatly increase your chances of receiving a favorable offer:

  • Leave the showing to the agents. A buyer’s agent knows their client’s requirements and wants and can best emphasize the features of your home.
  • Don’t discuss anything about the sale with a potential customer. Let your agent discuss price, terms, possession and other items concerning the sale.

Remember that spending a little extra time getting your home ready for sale will result in a much higher selling price. Sometimes dramatically so!!

Added 9/5/10: This morning my Lowe’s newsletter arrived with a similar article, with even more specifics. To read that article, click HERE.

From a Realtor(r) — Online Mortgage Broker vs. Local Loan Officers

by

From a Realtor(r) — Quicken Loans (online) vs. Local Loan Officers

In a recent press release, JD Powers ranked Quicken Loans as #1 with regard to customer satisfaction for home loan purchase and refinance origination. I wonder how they’d rank locally or if this is a national statistic?

Online handshakeWhile we increasingly become an online population with little or no face-to-face  communication, I’m not sure I agree that using online mortgage brokers vs. local loan officers is the best method of completing a home purchase. In all fairness, however, I haven’t had an opportunity of working with Quicken Loans with any buyer. I can tell you that clients of mine have worked with several of the other companies in the JD Powers rating list…and with mixed satisfaction. 

From my perspective, once financial qualification is determined, the most critical part of completing a mortgage loan is communication between all parties involved, not just the borrower and their loan company.

Working successfully through a transaction requires that a real estate broker also be kept informed. We’re out here trying to coordinate things from our side and knowing timelines and milestones on the loan side is critical. After all, we need to meet those deadlines as well.

Local Loan OfficerI always want to be sure to know exactly who to talk to (not just a voice in a department), but a real person that follows a mortgage application from start to finish. That said here’s a list of highly successful mortgage representatives with whom I work continually. They do what they say they will do, they know their loan products and they are masters at communication! I know, without a doubt, that they’d rank right up there with Quicken Loans, if not higher.

By the way, I’m all for making applications online, using email, texts, whatever. I regularly share info electronically and I absolutely love the convenience and security of using digital signatures. I just think it’s critical to have a single person with whom you’ve met and talked handle your transaction from start to finish. And be there later when you have questions or want to refinance. Your talented and qualified mortgage officer should be part of your suite of regularly used professionals, along with your real estate broker. We’re here for the long term, not just a single transaction.

Other articles you may find useful:

Questions to Ask a Loan Officer

 Mortgage Approval for Buyers “and” Sellers

 

May 1st = Garden Time in the Pacific NW!

by

Hard to believe as I look out the window that today more or less marks the unofficial beginning of garden season here in the Pacific Northwest. It’s a heavy grey day outside and has been raining and blowing like nuts since yesterday afternoon. Oh wait. The sun’s out. Give it a few minutes. Now it’s hailing. Actually, that’s about right for our Spring weather.

imageIn our yard, May 1st has always been the earliest that baby vegetables go into the garden, flower pots get hung and planters dressed up for the summer. We’re fortunate to have a huge garden plot, which also means that lots of weeding, soil turning, and fertilizing also takes place about this time of the year.

Gardening is a huge part of our PNW lifestyle, especially here in the suburbs where I work to assist Buyers in their home purchases so that they have a little of their own garden heaven. As I tour homes with them, it’s interesting to hear comments about the garden areas of the houses they like.

Some Buyers are so excited about green lawns and summer barbeques, some look forward to having a few fragrant roses to bring indoors during the summer months, and some have grandiose plans (like me) for full-blown vegetable plots hoping to grow enough produce to can and freeze for the year.

imageBecause of Buyer fascination with gardens, Sellers should also strive hard, especially at this time of year, to be sure that yards and gardens are well trimmed and productive. Have a vegetable garden area as part of the yard? Go ahead and plant it even though the hope is to have your home sale completed well before harvest time. Buyers love the idea of picking fresh tomatoes!

10 Tips to Buying an REO Listing

by

houseboarded10 Tips to Buying an REO Listing for first-time homebuyers

Working with first time homebuyers makes bank-owned (referred to as REO … Real Estate Owned) properties seem like an attractive purchase opportunity. These properties on which foreclosure has been completed are now owned by banks (think Wells Fargo, Chase, Bank of America, etc.), HUD, VA or government backed investors (GSEs) such as Fannie Mae or Freddie Mac. They’re attractive to homebuyers because transactions involving such properties typically close fast, unlike short sales that can drag on for months.

Some REO properties have had some “fixing up” completed — the grounds have often been cleaned up, sometimes critical missing appliances like the range have been replaced, carpets have been cleaned, and rooms and exteriors painted.

Other properties, however, require fixing and updating, meaning buyers must have funds to present all cash offers or financing with significant down payments. These properties, in particular, are attractive to investors who are looking for investment properties they can fix up and re-sell (flip) or rent.

In addition, often REO properties are priced aggressively, meaning they’re subject to multiple offers.

First time homebuyers, however, often come to the purchase table with a financing goal of asking for closing cost contributions from a seller while using a rehab loan to complete the purchase. That can be tough when buying an REO listing.

What’s a first time homebuyer to do? They often don’t have deep enough pockets to be tremendously aggressive in pricing offers, nor do the REO folks (the Seller) like to wait the additional 2-3 weeks needed to close a transaction where the buyer will use a rehab loan.

Here are 10 Tips to Buying an REO Listing:

  1. Absolutely be preapproved before writing an offer. You  need to know what you qualify for and you’ll need to prove it to the Seller.
  2. Shop below your top financing approval number.  Understand that you may be involved in a multiple offer situation. You may need to offer MORE than the list price in order to “win” the purchase.
  3. Cash is king. Use your available cash to increase your down payment, thus perhaps enabling you to use conventional financing rather than an FHA or VA loan. If you have a 20% down payment,      conventional loans won’t require mortgage insurance, which can save you a couple hundred dollars a month.
  4. Check with your lender to see if you can include your closing costs inside your purchase loan. Sometimes it can be done, although it may increase your interest rate slightly.
  5. Understand and be prepared to try for several homes and lose several before you’re the accepted offer in a transaction. It’s a learning process and the more houses you see and tries you make will enable you to move more quickly each time you see a desirable house.
  6. Experience counts: Work with a lender and an agent that both thoroughly understand and have experience with Rehab loans and purchases. You’ll need every advantage in order to close quickly.
    1. An experienced agent can eyeball a house and know whether or not it will qualify for standard financing or whether a Rehab loan will be required.
    2. An experienced lender should be able to close a streamline FHA rehab purchase within a 45-day window.
  7. REO properties often have a window or so where only owner-occupant offers will be considered. You need to present your best offer right away, and then be prepared (if multiple offers are received) to present your “highest and best” offer again.
  8. Move quickly. If an intriguing property is listed, you need to see it as soon as possible. Some REO properties receive multiple offers within hours.
  9. Remember that the holder of an REO property is looking at a combination of the NET number (your purchase price less any concessions you’ve asked for), a quick closing, and their assessment of      whether you qualify for the purchase.
  10. Finally, be sure your agent has evaluated the pricing structures commonly used by the various Sellers. For example, Fannie Mae tends to price homes a bit higher at first, and then reduce prices slightly if no offers are quickly forthcoming. However, Chase aggressively prices properties, gathers multiple offers, and ultimately closes sales for more than list price.

Auburn, Kent, Algona & Pacific REO sales 2/7/2013-4/8/2013

SOLD! Maple Valley

by

front

 

 

 


More photos of this lovely home will come soon. For now, however, visit the virtual tour!

SOLD! Auburn WA Country Living! Barn, Shop, 5 Acres!

by

East side of Barn
Iconic barn!

Five acres, 1,900 square feet, a huge shop and a barn make this solidly built home and property a real find for someone wanting to raise a few chickens, horses, or maybe even an alpaca or two.

On the market for the very first time since the family built the home in 1969, the owner’s children (and grandchildren … and great grandchildren) are saddened to see this home now being sold, but tell me that the memories contained within its walls will last a lifetime.

With generous spaces including a massive family room that was home to jigsaw puzzles and game playing, the home features a formal living/dining room combination with a wall-to-wall built-in china hutch, three bedrooms (could easily be four), plus two full baths.

Located inside the Auburn city limits and situated down a private lane, the home and land are just moments away from Highway 18 and Green River Community College and within a block or so walking distance to the newer Jacobsen Elementary and Auburn Mountainview High School. Live here and you’ll also be only five minutes from Covington with its Costco and extensive shopping areas.

Complete your own updates to the kitchen, baths, and amenities and then build your own memories within these cherished walls.

 

MLS # 711670 3+ bedrooms Shop approx 24′ x 40′
1900 sq ft (house) 2 bathrooms Barn approx 24′ x 32′
Built by Terhune in 1969 Formal living/dining room Electric Heat & Hot Water
Two, 2 1/2 acre parcels* Family room Propane Fireplace
    Private well & septic

*Bonneville Power & Tacoma Water easements limit development possibilities

Auburn WA Country Home with Barn Shop 5 Acres
Perfect 1-Story Home!

Want to see more? Visit the virtual tour,
then call your personal Broker … or me … to arrange a private showing!

 

 

SOLD! Rare Rambler Resale at The Lakes in Kent, WA

by

Rare Resale Rambler Townhouse at The Lakes in Kent, WA
Rare Resale Rambler Townhouse at The Lakes in Kent, WA

There weren’t many rambler units built throughout the entire The Lakes community in Kent. They don’t come up for sale often and, when they do, they tend to sell quickly, especially when they’re as beautiful as this one.

Updated and meticulously maintained, pride of ownership is evident both inside and out of this stylish unit. Consider the designer paints, vaulted ceilings, gorgeous travertine tile baths, spacious kitchen, two bedrooms, and den/office.

There are newer windows providing loads of natural light throughout the home, a wood-burning fireplace for cool winter nights, and your own private, fenced back yard — perfect for BBQs, morning coffee, or growing your own tomatoes. Enhanced by miles of walking trails along the Green River (accessed through your back gate) and your own garage, this townhouse should be on your must-see list!

All on ONE level with no stairs and in a super commuting location just minutes from I-5, 167, and SeaTac!

  • MLS #679220
  • 1,345 Square Feet per County Records
  • Built in 1989
  • Living & Dining Rooms
  • Kitchen with Eating Space
  • 2 Bedrooms, plus Den/Study/Office
  • 2 Bathrooms: one full bath with tub/shower combo & one 3/4 bath off master with large walk-in shower
  • 1-car garage & 1 reserved parking space
  • Fully-fenced Back Yard with gate leading to Green River Trail
  • City of Kent/Levee Improvement scheduled for 2015

Visit the virtual tour, then call your Broker, or me, for a personal tour.

Graham, WA-5+ Bedrooms & USDA, Zero-Down Financeable!

by

sold

 

LISTING DETAILS

Price $269,000 
MLS number 612338
Bedrooms 5-6
Bathrooms 3.5
Garage 3-Car Tandem
Size 2,985 Square Feet
Year Built 2009 (completed in January 2010)

Just relisted at $269,000, this amazing Michael’s Landing home sits within the USDA financing boundaries, which means you may be able to purchase it with a zero down payment. It’s priced well below new construction in the north Graham, south hill Puyallup area, along with being priced less than other homes in the neighborhood. The owners really want to move on!

Make no mistake — this isn’t a fixer-upper. It’s a beautiful home with an incredible floor plan. You can’t help but fall in love with this five-bedroom plus den youngster in Graham. Especially when you consider that this beautiful home features architectural details throughout — arched niches (perfect for those art collectibles you’re anxious to show off), arched doorways and walls, pan ceilings.

The home is just shy of 3,000 square feet and features five bedrooms, with a sixth room with closet on the main floor–perfect for a guest room, hobby room, or den. In addition, you’ll find a 1/2-bath, powder room on the main floor, plus three full bathrooms on the upper floor.

With five bedrooms, you might be tempted to think rooms are small and crowded; definitely not so in this amazing floor plan! All of the spaces here are generous and oh so livable! (As a broker side note: I’ve actually sold this same floor plan in various locations three times. All of the owners love the way this house lives!!)

Easy care floors lead you from the entry through to the dining room, powder room, and great room. The kitchen features an island sink layout with plenty of seating at its counter. Included is the walk-in pantry large enough for those Costco trips, too! The kitchen/great room is also accented by a gas fireplace, which you’ll love for toasting the toes on wet or cold winter nights.

Upstairs are the bedrooms and baths, of course, but also a bonus room entered through double doors. Home theater? Or maybe a pool table? It’s big enough! You’ll also find a good-sized laundry room with front-loading washer and dryer that stay with the home.

The master suite, nicely accented with a double-door entry and pan ceiling, can easily accommodate a king-sized bed. Through its interior arched doorway you’ll find two BIG walk-in closets, plus a nicely-appointed bath with double vanity, soaking tub, walk-in shower, and private commode room.

The outside of the home shows such pride of ownership. The fully-fenced back yard was refreshed with brand new hydroseeding last Fall. In front, the lush lawn and beds are carefully manicured and trimmed.

Visit the virtual tour for additional photos and information!

Don’t miss this one! Contact your own Realtor(r), or give me a call to see the home. I’m delighted to be of service to you!

 

[srp_profile lat=”47.068768″ lng=”-122.303335″ address=”20608 95th Ave Ct E” city=”Graham” state=”WA” zip_code=”98338″]

[/srp_profile]

 

 

 

[schoolsearch lat=”47.068768″ lng=”-122.303335″ distance=”3″ groupby=”gradelevel” output=”table”]

 

[mortgage price_of_home=”285,000″ interest_rate=”3.875″ mortgage_term=”30″]

 

Buying New Construction in south King County (Auburn, Kent, Renton, etc.)

by

presaleAlthough pre-existing home sales were still in recovery mode over the last couple of years, new construction seemed to take on wings of its own, especially in our south King and Pierce County areas. From experience in working with several buyers of new construction in new communities, I can tell you that there are many things to consider. Here are just a few:

  • Can you tour model homes or previous construction by the builder? Especially in larger communities, builders often construct one or more model homes that display standard finishes and upgrades. Sometimes upgrades are a bit tricky to identify, so you’ll want to be sure you and your broker ask lots of questions about what is included in the base price.
  • Is there a HomeOwners Association and are there CC&Rs? If you anticipate buying new construction in south King County areas such as Auburn, Kent, Renton, or Federal Way, you’ll find that, typically, HOA administration is often retained by the builder until the majority of homes are completed. At that time, the Association will elect its own officers and be under its own control, typically still guided by a set of Covenants, Conditions & Restrictions (CC&Rs). CC&Rs are recorded document(s) that list what can and can’t be done as a resident of the community. You’ll want to be sure to review a copy to see if your lifestyle fits within its guidelines.
  • Can you choose both the lot and floor plan? You may find that the builder has already pre-permitted a specific home for each particular lot or may not be willing to build on a certain lot until other areas are completed. If you have your heart set on a specific floor plan, you may need to adjust your site preferences.
  • What sort of warranty is included? Most builders offer at least a one-year warranty, fixing anything that goes awry during that time period (other than normal wear and tear). Some builders, however, offer extended protection plans perhaps protecting you from foundation issues for 10 years, with peeling paint for maybe only 1-2 years.
  • Are there community playgrounds and events? As lot sizes have shrunk in many areas, builders and developers have often set aside areas for outside events. Can you see these by driving through the neighborhood? Does the number and size seem reasonable for the number of homes included in the community?
  • And finally, how long before you can move in? What a sticky question! Some of the most popular builders are completely sold out of current, standing inventory, while others have a few homes that are ready to go. Typically, if a builder can get started on your new house right away, you’ll find that it still takes 5-6 months or so to construct a new home. But be prepared for much longer time frames! If you anticipate buying new construction in south King County areas such as Auburn, Kent, Renton, or Federal Way, you’ll find that many of these jurisdictions seem to be painfully slow or just totally swamped in completing the permit process.

Questions? Please give me a call or send me a message about buying new construction. There’s a lot to learn!

King County Downpayment Assistance

by

King County Downpayment Assistance

couple looking at house to buyWashington State’s Housing Finance Commission announced today that their House Key Plus ARCH downpayment assistance program has just received limited funding for borrowers purchasing in the Eastside Cities of King County, including areas extending from Bothell through about Issaquah.

This payment deferred program provides up to $30,000 in downpayment funds (depending on qualifications) for households earning 80% or less of the King County area median income. There are property purchase price limits involved and the buyer must still have about 2% of the purchase price (some gift funds can be used) to also contribute to the downpayment. There are also additional requirements relating to the property itself, whether the home is currently tenant occupied, and so on.

Documentation from House Key indicates that this time around funds are loaned at a 4% simple interest, with payment deferred until the time of resale of the property, when the property is refinanced, transferred to another owner, ceases to be the borrower’s primary residence, or at 30 years.

Additional information is available about the King County Downpayment Assistance program or through a Washington State Housing Finance Commission/House Key trained lender. In addition, because there are specific requirements for the home itself, you’ll also want to be sure to work with a House Key trained real estate broker.

From experience, I know that the amount of funds available go fast! If this is a program you feel might be beneficial to you, or if you have questions about the King County Downpayment Assistance program, please don’t hesitate to contact me.

 

The rumor continues — 3.8% real estate tax

by

Way back in September of 2010, I wrote a blog post about an email message that was circulating regarding an 3.8% real estate tax that was included as part of President Obama’s healthcare plan. At that time, the messages were aimed at overturning the Healthcare plan itself. Now that the Supreme Court has upheld the plan, it seems that the goal is to advise the general public that real estate agents won’t be voting for President Obama.

Just another political message designed as a scare tactic.

Because this message is so pervasive, I decided to address this subject again.  I’ve received a similarly worded message no less than eight times in the past three days. At the bottom of this post I’ve attached the message thread I received yesterday from a very savvy client.

Sigh … this is just another not true email circulation that’s gaining ground again because of the upcoming election.

The facts? — There is not a 3.8% real estate tax for ALL real estate transactions starting in 2013. But there IS a 3.8% investment tax on profits for people who meet a high capital gains threshold.

In a nutshell, the 3.8% tax (called the Medicare tax — it has nothing to do with real estate), will be imposed on investment income only for individuals with a net income above $200,000 or couples with a joint net income of more than $250,000. Further, it’s then imposed only for transactions with a taxable gain above $250,000 per individual or $500,000 per couple. And then there are yet further conditions that control the taxable amount.
 
Realistically, there are VERY few people that will be impacted by this amount because capital gains on real estate sales don’t take effect until after aprofit from sale of $500,000 is reached (for couples) or $250,000 (for single filers) on a their net real estate investment income.
 
For example, if a high income couple making $260,000 TAXABLE INCOME on their tax return should sell a property with a net capital gain of $600,000, then they would pay a 3.8% tax on the lesser of:
 
  • The amount of taxable income generated by the sale = $100,000. 3.8% of $100,000 is $3,800

or

  • The amount by which their taxable income exceeds the $250,000 taxable income level= $10,000. 3.8% of $10,000 is $380
 
It’s important to realize that the tax isn’t on real estate — it’s on investment income. And, frankly, although we all hope that our home is a fantastic investment and that we’re going to make oodles of money on it, if that does come true and we’re also a high income wage earner, then perhaps it’s only right that we share a small portion of our wealth in the form of taxes.
 
Refer anyone that sends this message to you back to Snopes.com at http://www.snopes.com/politics/taxes/realestate.asp
 
So … back to the subject of the message: “You should read this regardless of political leaning so that you are aware of it.” … Yep … they should read THIS message regardless of political leaning.
—– Original Message —–
Sent: 7/16/2012 2:27:00 PM
Subject: FW: Home Sales Tax-effective Jan. 1, 2013 You should read this regardless of political leaning so that you are aware of it.

This came from a friend in CA;  is this a true story?   I trust you and believe you will know.

Marilyn

 

____________________________________________

I’ve talked to realtor friends and this is true!  I’m not trying to bad mouth anyone, but it is something that will affect every single one of us who owns property.

 

Subject: Home Sales Tax-effective Jan. 1, 2013

Very important!!!!

———————————————————— When does your home become part of your health care? After 2012!
Your vote counts big time in 2012, make sure you and all your friends and family know about this !
HOME SALES TAX
I thought you might find this interesting, — maybe even SICKENING!
The National Association of Realtors is all over this and working to get it repealed, — before it takes effect. But, I am very pleased we aren’t the only ones who know about this ploy to steal billions from unsuspecting homeowners. How many realtors do you think will vote Democratic in 2012?
Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That’s $3,800 on a $100,000 home, etc. When did this happen? It’s in the health care bill, — and it goes into effect in 2013. Why 2013? Could it be so that it doesn’t come to light until after the 2012 elections? So, this is ‘change you can believe in’?
Under the new health care bill all real estate transactions will be subject to a 3.8% sales tax.
If you sell a $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation, — who often downsize their homes. Does this make your November, 2012 vote more important?
Oh, you weren’t aware that this was in the ObamaCare bill? Guess what; you aren’t alone! There are more than a few members of Congress that weren’t aware of it either.
You can check this out for yourself at:
http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home
I hope you forward this to every single person in your address book.
VOTERS NEED TO KNOW.

Subject Home Sales Tax-effective Jan. 1, 2013

 

 

 

SOLD!! Riverwalk View Home in Auburn WA

by

Beautiful resale opportunity in prized Riverwalk Community with territorial view and magnificent sunsets. Home is in wonderful shape & shows pride of ownership!

1999 Centex tri-level features 3 bedrooms, 2½ baths, with a wonderful open kitchen & family room concept, keeping the cook part of the action while nicely splitting the two rooms. For more formal occasions, you’ll also appreciate the separate living room and dining room.

Huge windows in kitchen plus vaulted ceilings in living & dining rooms add height and massive daylight. The private backyard is perfect for summer BBQ’s on the patio!

Central air & gas heat with heat pump & fireplace in family room make for year-round comfort. From the Berber carpeting inside–to the sprinkler system outside for easy yard upkeep–to the “just pressure wash me” vinyl siding, this home is easy-care from start to finish.

Don’t miss out. This may be a short sale, but everyone is on-board for a successful transaction!

  • MLS #362145
  • 1620 SqFt / 6,631 SqFt Lot
  • 3 Bedrooms, 2½ Baths
  • Vaulted Master Suite w/ Walk-In Closet & Full Bath
  • Front & Back Yard Sprinkler System
  • Dead End Street
  • HOA Dues just $75/year
  • Vaulted Formal Dining & Living Room w/Ceiling Fan
  • Lower Family Room w/Gas Fireplace
  • Gas Utilities & Central Air Conditioning

 

 

 

Another Maple Valley Closed Sale!

by

With great thanks to everyone involved, I’m pleased to announce the closed sale of this absolutely wonderful home in Valley Meadows. With multiple offers, we were able to come to contract within about a week of listing.

SOLD-Front

 The honor roll includes:

  • Brandon – the Buyer
  • Dean & Debbie – the Sellers
  • Andy – the relocation rep
  • Sara and Rob from Stewart Title – the title and escrow folks
  • Josh Hall – the Buyer’s broker
  • Dave Jagosh of Pacific NW Home Inspections – the Seller’s inspector
  • and me of course – the Seller’s broker

So … how was it done?

My clients (the Sellers) were fantastic. They prepped the house exactly as suggested, including having the home pre-inspected, then completed everything on the inspection list. It helped that we used one of the very best inspectors in the area – in fact the seller’s inspector also turned out to be the preferred inspector for the Buyer.

We did some careful marketing, targeting the home in the MLS with a full-fledged suite of photos, along with adding another 30 or so photos on my Web site, along with being sure the listing appeared on several hundred other sites.

Did we have careful talks about price? You betcha! The right price brought the expected offers with fully preapproved Buyers. With a bit of negotiation, everyone was thrilled! 

image

image

 

 So a HUGE thank you and Congratulations to everyone involved!

 

Whooo hooo!

SOLD! Rare Valley Meadows Resale

by

www.gabriellenemes.com
Valley Meadows Resale in Maple Valley WA

Rare Valley Meadows resale! Sitting on a lovingly landscaped corner lot backing to neighborhood park path is this ‘like new’ home with gorgeous millwork, shiny hardwoods, gleaming tile work and fresh paint.

Gorgeous Chaffey Homes Resale
Too Cute!

Perfect both for entertaining and for quiet moments, the home’s open floor plan features formal living and dining rooms, formal den, family room with gas fireplace, island kitchen, and patio. Even a darling playhouse!

Grand Open Staircase

Throughout the home, every room is truly generous in size with large windows, which open the home to wonderful natural light. Just off the entry, the grand staircase leads up to the bonus/loft-perfect for play or maybe TV space?

 

Just off the loft are three bedrooms, and the compartmented main bath with double vanity, which is also open, Continental-style, to one of the bedrooms.

 

Just One Side of the Master Bedroom

 

 

Then, step through double doors to the master ensuite with its peaked ceiling. Large enough for a huge bed, plus sitting furniture, imagine bubble baths in the deep soaking tub … and all the clothes you can organize in the huge walk-in closet.

The owners have done everything possible to prepare this home for new owners. The pre-inspection report is available for your review during your personal tour.

Too many features to list–better come see!