Residential Real Estate in SW Washington State

Residential Real Estate Services with Passion, Integrity, Knowledge

SOLD! Darling 2 Bedroom, 2 Bath, One-Level Condo w/Attached Garage – Vancouver, WA

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2313 NE 78th Ave, Vancouver, WA 98664
NWMLS #1991882; RMLS #22095681

Click Here to View the Full Tour & More Photos

 

Darling two bedroom, two bathroom duplex-style home is beautifully updated with LVP flooring, paint, and baths. You’ll especially love the large windows and vaulted ceilings adding to the natural light and abundant feeling throughout the home. Walk into the cozy living room with its gas fireplace on winter nights, or the welcoming coolness of central air conditioning on hot summer days. Ceiling fans add special ambiance in each room.

The kitchen is spacious and well designed including a work island and large dining area. Primary bedroom features a generous walk-in closet and ensuite with walk-in shower. Attached two-car garage leads directly into home–perfect for unloading groceries on rainy days! Only one front step up to the covered front porch for easy access. Plenty of storage throughout too!

Belmont Condos is for all ages–Easy commute to I-5, 205, Clark College, shopping too! Don’t miss the virtual tour and then make appointment with your agent for a walk-through.
  • MLS# 1991882
  • Built in 1997
  • 1,008 SqFt*
  • $2,435 2022 Property Taxes
  • $302/month HOA
  • No rental cap
  • 2 Bedrooms (including Primary)
  • 1 full bath, 1 three-quarter bath
  • 2-Car Attached Garage
  • Central Air Conditioning
  • Forced Air Gas Heat / Gas Water Heater

View the Tour

* buyer to verify home size and property size to own satisfaction

Call your agent for a private tour and then set the stage to move right in!

Contact me or your agent for a personal tour. If you’ve not yet prequalified, visit my lending resource page for a list of excellent loan officers.

How to Make a Winning Offer on a Home

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How to Make a Winning Offer on a Home | MyKCM

Today’s homebuyers are faced with a strong sellers’ market, which means there are a lot of active buyers competing for a relatively low number of available homes. As a result, it’s essential to understand how to make a confident and competitive offer on your dream home. Here are five tips for success in this critical stage of the homebuying process.

1. Listen to Your Real Estate Advisor

An article from Freddie Mac gives direction on making an offer on a home. From the start, it emphasizes how trusted professionals can help you stay focused on the most important things, especially at times when this process can get emotional for buyers:

“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”

A real estate professional should be the expert guide you lean on for advice when you’re ready to make an offer.

2. Understand Your Finances

Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. Ask your loan officer to do a full pre-approval, all the way through underwriting. Doing so makes it clear to sellers you’re a serious and qualified buyer and it can give you a competitive edge in a bidding war.

3. Be Prepared to Move Quickly

According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average property sold today receives 3.7 offers and is on the market for just 21 days. These are both results of today’s competitive market, showing how important it is to stay agile and alert in your search. As soon as you find the right home for your needs, be prepared to submit an offer as quickly as possible. In the Thurston County area of our SW Washington market, the average property is on the market for just 5 days. Lewis County is similar — an average of just 18 days on market!

4. Make a Fair Offer

It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t make an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:

“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”

5. Stay Flexible in Negotiations

After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. You can strengthen your position with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Freddie Mac explains that there are, however, certain contingencies you don’t want to forego:

“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”

Bottom Line

Today’s competitive market makes it more important than ever to make a strong offer on a home. Let’s connect to make sure you rise to the top along the way.

 

Seller-Paid Closing Costs?

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Buying a home typically takes some cash out-of-pocket. There are a few loan types that require minimal or no down payment, but there are many extra fees and costs required to actually complete a purchase.

From experience, I know that for many buyers closing costs are typically about 2½% to somewhere around 3½%-4% of the purchase price. As an example assuming that the purchase price of a home is $300,000, out-of-pocket costs of actually closing on the sale (in addition to any down payment) might range from about $7,500 to, say, $12,000. Of the total, 1½%-2½% or so are actual loan fees — lender fees, recording fees, processing fees, appraisal fees, etc, — with the remaining 1%-1½% or so made up of prepaid costs such as upfront homeowner insurance, property taxes, homeowner association fees, prepaid interest, and so on.

Purchase Price $300,000
Loan Fees (1½%) $4,500
Prepaid Expenses (1%) $3,000
Total Closing Costs Paid by Buyer $7,500

So who pays these costs?

One approach often suggested by lenders is that a buyer request the seller foot the bill for all of the costs involved in closing the buyer’s loan.

Depending on the status of the current market or perhaps if a home listing has languished on the market, a seller “might” be willing to pitch in and contribute. However, as is most typical in my greater Pacific Northwest area of quick sales and multiple offers, it’s not realistic to expect a seller to pitch in and help in order to sell their home. That seller is unwilling to reduce the proceeds of their sale (their bottom $$) to pay a portion or all of a buyer’s purchase costs. In the mind of a seller, after all, if a buyer doesn’t have sufficient resources to pay their own way, another buyer will be coming along in the next 10 minutes!

Another strategy is to stack any loan costs on top of the purchase price, with the request that a seller then pay the closing costs out of that increased purchase price. That scenario might look like this:

Purchase Price $307,500
Loan Fees (1½%) $4,500
Prepaid Expenses (1%) $3,000
Total Closing Costs Paid by Seller $7,500

Note that you must be a bit careful with this type of approach. Not only must you, as the buyer, qualify for a higher loan amount, the actual dollar amount of the closing costs will increase based on the higher price and, perhaps most importantly, the home must also appraise at the higher purchase price. With rapidly escalating prices in my area, adding closing costs to a purchase might be just enough to effect a low appraisal–below that all-inclusive purchase price.

Keep in mind, also, that a seller has their own closing costs to pay, which may include brokerage fees, recording fees, notary, HOA dues, etc, and excise or other taxes. Many of these fees are based on the purchase price and if you’ve added closing costs into the purchase price, the seller must pay fees on that inflated price. You may need to offer a seller a slight bit more to cover their extra expenses.

Obviously, if you can pay your own closing costs as part of your purchase, your offer may be looked upon more favorably by the seller and you may have a greater chance that your offer will be accepted. If you do need assistance, be sure to review all of these factors when obtaining loan approval. I’ve seen many offers fail because a buyer asked a seller to pay closing costs … and I’ve seen transactions fail when appraisals come in low.

Your loan officer should provide you with an estimate of closing costs for your purchase. Your real estate representative should provide you with thoughts an options about how to structure a purchase that includes consideration of closing costs.

4 Critical Facts When Selling Your Manufactured Home

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Selling a manufactured home on land is a bit different than selling a stick-built home. There are a few more inspections and requirements, not to mention finding a lender that will lend!

Here in Western Washington, I’ve had the dubious pleasure of working through a few sticky manufactured home transactions over the last few months. Now, don’t get me wrong — working with the buyers and sellers was truly a pleasure! It’s just that there are so many different steps to be taken that sometimes clients can feel a bit overwhelmed by the whole process;  and it’s so necessary to be the knowledgeable hand that helps guide the sale.

With a couple of caveats that every transaction is truly different and that different jurisdictions have slightly different requirements, here are a few starter points.

1.       Not every manufactured home qualifies for traditional financing methods – only those built after June 15, 1976. Your home built on May 31, 1976 won’t qualify for traditional financing — you’ll need to appeal to a buyer that has all cash or some source of private funding.

2.       Know that in order to get any sort of financing for the purchase of a manufactured home, the home must have gone through a title elimination process. A bit of background – when a manufactured home is purchased, it’s personal property – like a car or boat. Title is maintained by the Department of Licensing just like the title to a car. This is likely a testament to the fact that a manufactured home is towed down the road on its own axles and tires, which are then typically removed when the home is placed on its foundation.

That personal property title must be eliminated and the home married to the real property (the land) on which it sits. Home loans are for real property – not for vehicles.

3.       Speaking of Foundations — this gets a bit tricky. Prior to 1996, manufactured homes were often trucked to their site and then set up on a series of concrete blocks. Those blocks often sat on poured or prefab cement slabs. Then tie downs were attached to the underlying steel beams that run the length of the home and subsequently secured to the earth or the cement slabs, or whatever. In our area, which is generally not subject to enormously high winds such as hurricanes, some homes were installed without the tie downs and just sit on the blocks.

Now then – bear with me – FHA and VA loans are often used for manufactured homes. It used to be that conventional funding was a bit more lenient with requirements, but I’ve found lately that conventional and FHA/VA requirements are similar. So here’s the thing. In 1996, HUD (Dept. of Housing and Urban Development) placed a requirement that all manufactured homes on private land must be secured to a “permanent foundation,” which they defined. These permanent foundations are designed to prevent the home from shifting or moving away from their supporting structures.

HUD guidelines state that compliance with the guidelines must be certified for all re-sales.

This means that a homeowner must ensure that the foundation system complies with the guidelines by hiring a licensed professional engineer to examine the current foundation structure and certify, in writing, that the foundation is compliant. If not, the homeowner must have the foundation retrofitted prior to sale.

 

4.       One additional step can also be critical, and yet is so often overlooked by an existing manufactured home homeowner. Prior to adding anything to the exterior structure of the home, such as deck, porch, awning, an extra room, etc., you should have obtained an L&I permit in addition to obtaining the appropriate jurisdictional building permit (if required). That’s right – the Dept. of Labor and Industries must also permit and inspect your addition and certify that it meets the manufactured home standards.

See, manufactured homes are designed to be dismantled from their foundation and pulled down the road. That means all exterior structures surround the house must be self-supporting. For example, that deck must have supports and beams of its own – not merely attached to the home by means of a ledger board.

Similarly, electrical modifications, replacing your hot water heater, adding a wood burning or pellet stove, etc. must be approved by L&I. You’ll likely need proof of the modification. If you did not obtain the L&I permit before altering your home, you may need to obtain an L&I inspection before your home can be sold.

Absolutely your manufactured home can be sold. Paying attention to these 4 Critical Facts when selling your manufactured home can make all the difference in an easy sale!

 

13 Reasons Why That House Might Not Qualify for FHA Financing

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2/4/2020 — This blog entry, originally written in 2011 has been one of the most read posts on my site. While FHA loans are still an incredibly good choice for many buyers, there are now some 3% down payment conventional loans that are also extremely popular.

I did want to point out, as I edit this post, that, at least in our busy area, it’s definitely far less likely that a Seller will assist with a Buyer’s closing costs. The market is HOT, with multiple offers and Sellers are just less willing to pay anything out of pocket except their own expenses.

Gabrielle-bold
In my practice, FHA loans are used for a large chunk of home purchases. Without a doubt, an FHA 203(b) can be a logical choice, especially for folks with credit scores below about 680 or so. (Note that while FHA lists credit score qualifications starting at about 580, most lending institutions pad that requirement raising the minimum score to the mid-upper 600’s.) With FHA’s awesome interest rates, the low minimum down payment requirement of only 3 1/2% and closing costs running right around 3% of the purchase price, FHA financing makes a home buying possible for many many buyers.

However, one thing to remember is that not only do YOU, the buyer, have to qualify for a mortgage loan, the home must also qualify under typical FHA 203(b) loans (the most common type). A home in good repair with typical maintenance generally is no problem … it’s the home that’s been neglected that can so often be problematic–those homes may need a Rehab loan FHA 203(k) where the cost of home repair is included in the home loan. FHA wants to be sure that the home they insure … the one you’re buying … has no health or safety issues that could compromise your ability to repay your mortgage.

As you tour a home with your agent anticipating that you’ll use an FHA loan for purchase, watch for these items. The FHA appraiser that values the home for your bank loan will be watching for these items as well:

  1. Roofs that are at or near the end of their useful life, or in tough shape. Curling and missing shingles, gutters that are missing, lots and lots of moss. In our area, moss is common, but it should be minimal at best and easily removed with a light sweeping or cleaning. Most appraisers look for roofs that have an obvious 5 years or more life left in them. That original 3-tab roof that’s now 15 years old or so could be problematic. Note that some roofing companies will inspect a roof for you and write a letter (for a small fee) stating their opinion of the remain life of a roof. 
  2. Cracked or missing window panes. It’s certainly not necessary that the windows be newer — old, single pane windows can be just fine as long as they’re sound and in one piece. In a recent transaction, however, I did have an FHA appraiser insist that a window that had a broken seal (indicated by fogging between the panes) be replaced prior to closing. 
  3. Peeling, cracked, or checked paint. Where the house is older than 1979, that paint could be lead based. Not a problem where the paint is in good shape, but where it could possibly be ingested — even on outbuildings. For that matter, asbestos potential in a popcorn ceiling that’s falling down or in old cracked siding could also be an issue.
  4. Water issues. This is one of the biggest hot spots for an FHA appraiser and rightly so. A quick glance under a sink to see rotting floors and moldy walls will nix a loan every time. Watch for soft floors around toilets and tubs, leaky faucets, roof leak stains in the ceiling. Water in the crawl space is a definite no-no as is significant water standing in the yard.
  5. Open/exposed wiring … Not good, not good. Electrical wires must be properly terminated, secured and finished in an electrical box and covered with the appropriate plate. Missing outlet plates even in a garage or outbuilding typically need to be in place. 
  6. Missing electrical fixtures. Especially on foreclosure sales, the dining room light fixture is sometimes missing. Sometimes it’s all of the kitchen lights or bedroom center light fixtures. Remember, an appraiser is looking for “safety” problems!
  7. Missing appliances. A missing free-standing refrigerator, washer or dryer aren’t problems. It’s the built-ins such as a missing dishwasher, range, cooktop, or oven that’ll cause a comment in the Appraiser’s report. I’ll include the missing hot water heater and furnace here as well. A home has to have heat and water! (A quick note here as well … In 2019 an appraiser called out a missing freestanding wood-burning stove. The chimney piping was all there, right through the ceiling and roof, and the cap was on the top of the chimney, so no leaks. But the end of the pipe was open in the room and the appraiser called it.)
  8. Missing or damaged carpets, drywall, or typical finishes. Yeah, sometimes that plywood floor is a problem as are huge holes in the drywall where the previous owner got creative and cut through the drywall to find who knows what. Note, however, mere cosmetic issues are generally not a problem unless the carpet is so soiled with maybe pet stains that it’s not cleanable. Remember that the goal here is to have a home that is safe and healthy.
  9. Add-ons that were obviously not permitted. We’ve all seen them. The deck built on stilts that isn’t properly attached to the house, the garage/bedroom conversion with sloping floors, the rented basement apartment that doesn’t have its own meter and is accessible only through the main house door. However, I’ve yet to have an appraiser ask for permit information for ADUs (additional dwelling units) or in-law spaces that are part of a home.
  10. Critters in the crawl space or attic. Ugh. But facts are that four-legged and/or winged creatures like to infiltrate the crawl space and attic if allowed. Evidence of lots of droppings and open foundation or attic vents can be an issue. Especially if the appraiser pokes his/her head down into a crawl space or up into an attic and is greeted by a pair of green eyes looking back at him. Not so good.
  11. Concrete cracks. A small crack typically isn’t necessarily a problem, but that foundation crack extending from top to bottom and is over, say, a 1/4″ or so can be an issue. Same thing in large cracks in garage floors or sometimes even in walkways leading to the doors, especially where the surface is uneven or slabs have sunk.
  12. Septic or Sewer issues. A rehab loan or full repair will absolutely be needed to purchase a home with one of these problems!
  13. Unsound or Aging Outbuildings. Over the last few months I’ve had the pleasure of touring really neat old houses that had been updated and were really gorgeous. However … then there were these sheds/outbuildings/garages in the back yard that had definitely seen better days and were just waiting for a heavy snowfall or wind to drop them to the ground. I’ve seen marginal buildings with paint literally falling off the siding, full garden-thick moss and saplings on the roof, and vines creeping in through their foundations. You guessed it .. the appraiser called for repair.

A few things to remember:

  • Not every FHA appraiser will note the same defects. Some appraisers will overlook moss on the roof, or a small corner crack in a window while others will insist that the item be corrected before the loan can close.
  • Ideally, the Seller is able and willing to make repairs so that the home can be sold. However if that can’t be accomplished, the Buyer may need to pass on the home, change loan types, or make small repairs prior to closing (not a good idea, but it happens).
  • Be absolutely certain that you are also working with an experienced FHA loan officer, especially if you decide to pursue an FHA 203(k) Rehab loan. You’ll need their help!
  • Work with an agent that has experience with FHA transactions. He or she can often spot issues that will be problematic and can direct you to further resources as needed. I’m here to help, of course, especially if you’re buying in the “south of Seattle” area of Washington. Don’t hesitate to reach out to me here.

 

 

 

 

73% Of Millennials Cite Affordability As Reason They Don’t Own A Home

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A large percentage of millennials want to buy homes. But they’re allowing rising home prices—and misconceptions about the market—to keep them stuck in the renting cycle.

According to CoreLogic’s Young Millennial Housing Survey (which was featured in their most recent Home Price Index report), 40% of millennials are extremely or very interested in purchasing a home now (with 64% consistently monitoring prices in their local market). But nearly three-quarters of millennials surveyed (73%) cited affordability as a barrier to homeownership—significantly higher than any other age group.

While affordability may be a challenge, the truth is that there are plenty of millennials out there who could purchase a home, but their misconceptions about what it costs to do that are holding them back. According to a recent survey from lender Laurel Road, 58% of Americans believe you need a 20% down payment to purchase a home—but with today’s flexible lending options, it’s possible to buy a home with very little down.

The Takeaway

If you’re a millennial who wants to buy a home—but don’t think you can afford it—start exploring your options. There are zero-down payment and 3% down payment options available. You might be able to purchase a home with less than you’d imagined and be able to transition to homeownership sooner than you thought possible.

Will Your Side Hustle Buy You a House This Year?

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The top concern for most first-time home buyers is their ability to save for a down payment. According to a new survey, 36% of millennials took on a second job to make their dreams of homeownership a reality in 2017.

Among millennials with incomes over $100,000 a year, the top ways to come up with the necessary funds were to sell stocks (20%) or to sell cryptocurrency (16%).

The most popular method of savings was the most traditional; 60% of those saving for a down payment used a percentage of their paychecks to achieve their goal, while 75% of those with salaries over $100k were able to save this way.

For those who have not yet begun to save for their down payment, 32% plan on pursuing additional employment, while 15% plan on driving for a ride-share service as their second job.

Many first-time buyers are mistaken about the down payment needed in today’s real estate market. In fact,

“In a 2017 survey, 68% of renters cited saving for a down payment as an obstacle to homeownership. Thirty-nine percent of renters believe that more than 20% is needed for a down payment and many renters are unaware of low-down payment programs.”

The many benefits of homeownership make the extra jobs, sacrificing new clothes, or skipping vacations well worth it.

Bottom Line

If you have been saving for your down payment for a while now and are curious how much further you have to go, let’s get together to help you determine what priced home you can afford and what size down payment you’ll need.

Percentage of Income Needed to Buy vs Rent

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I always find this stuff fascinating. While this is nationwide and the overall percentages of income is often higher for both buying and selling in the greater Puget Sound area, the trend for rent increases is definitely making home buying a more stable option.

Whether You Rent or Buy, Either Way You’re Paying a Mortgage!

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There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.

Christina Boyle, Senior Vice President and head of the Single-Family Sales & Relationship Management organization at Freddie Mac, explains another benefit of securing a mortgage as opposed to paying rent:

With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.22% last week.

Bottom Line
Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

Do You Know the Real Cost of Renting vs. Buying?

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Some Highlights:

  • Historically, the choice between renting or buying a home has been a close decision.
  • Looking at the percentage of income needed to rent a median-priced home today (30%), vs. the percentage needed to buy a median-priced home (15%), the choice becomes obvious.
  • Every market is different. Before you renew your lease again, find out if you could use your housing costs to own a home of your own!