Residential Real Estate in SW Washington State

Residential Real Estate Services with Passion, Integrity, Knowledge

Welcome to Real Estate!

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While driving between appointments a couple days ago, I called my daughter to check up on grandbaby Tyler. The car and traffic was quiet and it was a nice break in an otherwise hectic day. After learning about the latest baby accomplishments, inevitably we drifted into what my day had been like and what I was up to at the moment. To me, it was just another day … going to a vacant listing to meet with a plumber after water was found all over the kitchen floor.

I was struck by her comment “Mom, you’re always out there taking care of other people’s houses. I can’t believe you do that. It seems like they should be doing this stuff themselves.” My response was “Welcome to Real Estate!”

Thinking back, my open-ended job description has changed significantly over the last two-three years. Is this a result of the “economy?” A result of my own changing standards and desire to be of help to folks? Or just laziness by allowing myself to get sucked-into agree to tasks that maybe could be delegated. Hmmmmmmm

Certainly my business profile has changed:

  • Most of the homes I list and market are vacant. Used to be they were almost never empty!
  • The majority of my listings are the result of financial distress on the part of their owners.
  • The majority of the Buyers I assist have never owned a home before.
  • Most of the Buyers are young, just starting out in their real estate ownership lives.
  • A significant chunk of my business (almost 40%) comes from internet exposure.
  • Nothing is fast — not the marketing time of a listing, nor the “finding a house and closing the sale” time with a Buyer.

So what does that mean to the actual “practice” of real estate?

Well, it means that my job description continues to evolve. Buyers don’t jump as fast at a great house — we have to see lots of houses. And then once a house is identified, an offer is accepted, inspections are negotiated and completed, the whole nightmare of completing all of the financing tasks comes into play. Let’s see, over the last half-dozen Buyer clients I’ve had to:

  • Run to a Buyer relative’s home to pick up copies of bank statements and send them to the loan officer. Why me? Well, the Buyers got called away on a family emergency and somebody had to do this now!
  • Go to the local IRS office to try to get copies of tax returns when an underwriter demanded real copies at the last minute.
  • Attended a oh dear! super fun septic inspection in the pouring rain only to find out that the pump didn’t work.
  • Negotiated payment for the septic repair over a period of a week and ran it around to all of the various parties because, gee, we were already a week past closing and the bank was threatening to pull our short sale approval.
  • And on and on ……….

Sellers generally need help. They need hand-holding. Some of them are desperate. Most are anxious:

  • I spent the better part of a day mucking out a garage and yard. Why? Well, it needed to be done and the Seller was totally unable.
  • Met repair people at vacant listings!
  • Helped move extra furniture out of the house and into storage because … well, I have a truck available and these two single gals had no idea what I meant when I said “pack!”
  • Supervised the cleaning of gutters
  • Picked up replacement locks and had them changed out.
  • Bought food for an abandoned fish pond and cleaned it out.
  • Above all, I’ve listened and listened and listened to their anxieties.

Now WHY should an agent bother with this? My response is always … because it has to be done. Somebody has to do this. To serve my clients well, the house needs to be sold/bought, they need help to be on their way to their next step in life, to be their ear, sometimes to encourage, sometimes to nag. To serve my clients, I am their trusted advisor, their “do-er,” the one to whom they look when there are snags along the way … and sometimes even after the transaction closes.

It all comes down to service. Real Estate is a service business.

Welcome to Real Estate!

Get Paid $6,500 to Buy a Home!

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Repeat or Move-Up Home Buyer — Get Paid $6,500 to Buy a Home!!

Repeat or Move-Up Home Buyer Tax Credit Eligibility Requirements:
  • Buyers must have owned and lived in their previous home for five consecutive years out of the last eight years and purchase a replacement primary home.
  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.  Applies to homes priced at $800,000 or less.
  • The tax credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010.  In cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies for the tax credit provided the sale is completed (closed) by June 30, 2010.
  • Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
Top 5 Reasons it is a Great Time for Repeat and/or Move-Up Buyers To Purchase a Home:
  1. You are buying a home today that doesn’t have inflated equity
  2. You don’t have to sell your current home to qualify for the Tax Credit (although you would need to qualify for both house payments, if applicable)
  3. You have sellers willing to pay your closing costs and possibly buy-down already great interest rates
  4. You are in the first true “Buyers” Market in nearly 8 years and have the largest selection of homes in 15 years
  5. The current downturn in house pricing as well as low interest rates could allow you to buy homes in neighborhoods that were out of reach two years ago
With rates at an all time low, inventory at an all time high, and a $6,500 tax credit…it’s a GREAT time to buy another home!  Call or email me today to take the first step!
Thanks to Michelle Coolidge of Cobalt Mortgage for this information!

Will Short Sales FINALLY Become Reasonable?

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j0078820As a busy agent in the south King County area and down into the Tacoma/Puyallup Pierce County areas, I both list properties for Sellers and assist Buyers in finding their “dream home,” whether it be a first time purchase or a repeat purchase.

While definitely not unique to these geographic areas, price points and demographics of buyers and homeowners for these areas seem to especially target short sales and bank owned properties. Or maybe it’s just the clients with whom I’ve worked over the last few months. Sellers need to sell–usually as quickly as possible–and Buyers just want to move in.

In any event, short sales have been a problem. It seems as though it’s nearly impossible to get bank approval in anything less than 120 days … and then IF we get approval, the banks want us to close the transaction in no more than 30 days, another feat that’s becoming more and more difficult.

Back in May, 2009, President Obama indicated that he was pushing forward legislation that would drastically change the method and bank requirements by which short sales would be approved. This was aimed at shortening the time the banks would have to approve such transactions, along with helping a distressed seller by eliminating the “pay back the difference to the lender” clause that has been a real sticking point.

FINALLY, on Monday Reuters reported that the Treasury Department has now set guidelines to simplify short sales. I can’t tell you how excited “I” will be when this finally happens. And when the Banks step up and get their own internal procedures in place to accommodate these new guidelines.

I’m maintaining an “I’ll believe it when I see it” attitude. It’ll be cause for rejoicing!!

AR Gay Sig

8 Requirements for the New Homebuyer Tax Credit, Effective NOW!

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dont twiddle thumbsOkay all you first time homebuyers, you’ve been given a second chance! The Homebuyer Tax Credit passed and was signed into effect on Friday, November 6th! What GREAT news!

And it gets even better! Not only do first time homebuyers benefit from the tax credit … to the tune of $8,000! … any homebuyer could potentially benefit, up to $6,500!

Here are some of the highlights. Of course you’ll want to verify this information with your own accountant; as with most bills of this sort it’s many pages long and there are requirements that must be precisely met.

  1. A first time homebuyer is one that has not owned a home for at least three years.
  2. To qualify, a repeat homebuyer, must have owned their current home for at least five consecutive years out of the last eight years. So … imagine that you owned a home for at least five years, but sold it and have now been renting for the last two years. You qualify.
  3. If you’re a single person, you cannot earn more than $125,000; if you’re married, you can earn up to $250,000.
  4. You must be in a contract to purchase your new home on or before April 30th … but you have until June 30th to close the transaction.
  5. There’s no lag between the old deadline (November 30th) and the beginning of the new period … it’s as if the November 30th deadline never existed. The new deadline is April 30th (see #4).
  6. The maximum purchase price for your new home is $800,000.
  7. Your new house does not have to cost more than your last house. It’s okay to downsize!
  8. Oh yes! And as a measure to prevent fraud, you’ll have to attach proof of purchase to your tax return in order to qualify. I haven’t read the entire Bill, but I would anticipate that a copy of your final HUD (closing) statement will probably suffice. But do ask your tax accountant. They’ll know.

SO, Congratulations. Now, don’t twiddle your thumbs and let this run out AGAIN! Call me and let’s get shopping!!

AR Gay Sig

Not Buying? You’ll Still Benefit From the Home Buyer Tax Credit!

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pay with credit cardSince the beginning of 2009, first time homebuyers have benefited from an $8,000 gift directly from Uncle Sam. Qualifying for the gift was easy and thousands of people benefited.

As I write this, plans are in place to extend and modify the tax credit into next Spring (thank heavens), which will continue to help economic recovery for more folks than just those stepping up to purchase a home.

I’ve been amazed while hearing our various elected officials and economists speak shortsightedly, in my opinion, about why the tax credit should not be extended, nor should have been in place to begin with. I absolutely agree that the tax credit has a huge price tag. However, let’s think very briefly about what that tax credit is actually buying.

Just help buying a house? Hardly!

Think back to your last move, whether it was a house, an apartment, back to mom’s, wherever. What was the first thing you did? I can tell you what I did … picked up my wallet and headed straight to the store. I needed STUFF — boxes, moving supplies, shelf liner, paint, curtains, towels, furniture — STUFF!

That’s where the money goes. Not just in a pocket or frankly, not just back in a savings account. Is $8,000 too much? Did I buy $8,000 worth of stuff? Oh yes. And much more. Had I been given the $8,000 as a gift from my last move, my house credit card might not have been maxed out!

Homebuyer’s Tax Credit Has NOT Yet Passed — Not Quite!

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As I write this at 4:45 PDT, our local news station, along with several lenders and title companies are reporting that the Homebuyer’s Tax Credit has passed and will be extended to April 2010.

While that’s GREAT news, it’s not quite right yet, from what I can see.

Looks like the Senate has agreed to pass a resolution that would extend the $8,000 tax credit to First Time Homebuyers, a $6,500 tax credit for repeat homebuyers, both with qualifying issues.

However, a vote hasn’t actually taken place that passes the resolution as a stand-alone bill. At the moment, it’s hung up on the premise that it’ll be tagged onto legislation to extend unemployment benefits, although it appears that it’ll pass the Senate even as a stand-alone bill.

Read more at my favorite site: Reuters.

I’m holding off the celebration until it’s signed around! And I’ll be the first to let you know — that way we can ALL celebrate!AR Gay Sig

Senate Activity on Extending the $8k Tax Credit

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j0382678Like almost everyone I know that works in the housing industry, I’ve been chasing myself around for the last few weeks trying to get all of the First Time Homebuyers in my client list qualified and under contract so that they were eligible for the $8,000 tax credit … due to expire on November 30th. It’s been a wild ride, full of both elation and disappointment!

And, of course, absolutely full of the question “Will it be extended?”

I’ve been diligently trying to follow along with activities in the legislature while listening to other opinions about why it will and why it won’t and who thinks it’s a great idea and who thinks it’ll continue to bankrupt us all.

Reuters is one of my favorite places to find quality news feeds–in this case current activity on extending the $8,000 tax credit for homebuyers.

Yesterday, Reuters reported that Bill Nelson (Dem.) of the Senate Finance Committee indicated that the Senate would act this week on the tax credit and that it would likely be extended for a “limited” period.

Then the stock market reacted negatively later in the day to a report that it would not be.

This morning, Reuters posted another story complete with Q&A about another proposal being floated through the Senate by Senate Majority Leader Harry Reid, a Nevada Democrat, and Senate Finance Committee Chairman Max Baucus, a Montana Democrat. In their scenario, the credit would be extended to the end of 2010, but would be phased out in $2,000 decreases beginning in April, then again in July and in October.

Now, at the moment, I kinda like this proposal. And I like the idea that it carries into the Spring, where house purchases and sales tend to begin rallying all by themselves.

bd06916_My only issue with their proposal is that it’s being attached to the passage of another bill for unemployment insurance benefits. Sigh. Seems like it’d be so much easier to keep track of things if each expenditure had to stand on its own.

I’m sure tomorrow there’ll be yet more ups and downs about whether the $8,000 tax credit will be extended, or buried. Passage will be cause for celebration, in my opinion. Of course, then the bill will need to go on to the House, where, no doubt, it’ll be changed yet again. Back and forth.

Just my 2¢ worth!

 

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Don’t Move Money Around

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money bagI sometimes hear frustration from buyers who are being asked to produce the papertrail that supports the source of the  money being used for the downpayment and closing costs. The underwriter (the person that issues final approval for your loan) requires this information as one method of eliminating the possiblity of fraud, to meet the requirements of investors with whom they work, and for quality control. They’re just doing their job, but sometimes meeting this requirement is difficult and tedious.

You may have  been diligently consolidating money from various accounts so that it’s easier to manage, but this can actually cause more loan approval challenges.

During the time you’re working on purchasing a home, or at least for the prior three months or so, don’t move money around unnecessarily. The underwriter will require documentation of any large deposits or withdrawals from your account. This could include money you received as gifts, from transferring funds between accounts, investment liquidations, cashing out mutual funds, retirement funds, or whatever. You may be asked for copies of cancelled checks, deposit receipts, or other supporting documents that may see inconsequential.

If you’re relying on gift monies that will be used in your purchase in any fashion, you’ll likely also be required to produce a letter from the person giving you the money that documents the fact that you are not required to repay the gift. In fact, the person from whom you’re receiving the money may also need to produce copies of bank statements, etc., that documents where they received your gift money.

In fact, this is also not the best time to be changing banks, or even opening new accounts.

Don’t move your money around … or if you do, be absolutely certain you can document everything thoroughly.

AR Gay Sig

Dear Buyer … Please Quit Spending!

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spending moneySigh, it’s happened yet again. Somehow no matter how much counseling, another Buyer’s forgotten one of the golden rules of buying a house: If you spend money on credit cards, buy a new major appliance on credit, buy a new car, decided to furnish your new home before closing … you run the risk of not qualifying for your loan. Even if you qualified before you ever started shopping.

There’s nothing more disheartening to find the home of your dreams, go through all the steps … qualify and be preapproved for your loan, inspection, title searches, negotiations, etc., … and then find out just before closing that, yes, the underwriter reviewed that last credit report only to find an additional new monthly payments

OH NO! There’s a new credit line that blows the debt to income ratios totally apart.

Yes, sometimes life gets in the way of judicious decisious during the period of time between making application for a home loan and closing. And some Buyers have sufficient income and are shopping far enough below their top qualifying number to sustain an extra monthly payment, but typically not.

Not only are your credit scores, credit history, and monthly debts examined at the time application is made, they’re checked again right before closing to be sure no significant changes have occurred. Qualifying for a mortgage is difficult right now. Hang on just a few more weeks. Wait until after closing.

There’s a Certain Peacefulness About Owning a Home

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DahliasI just came back in the house and to my home office desk. The weather is gorgeous — clear blue sky and the garden just called for a quick walk through. Picked a few dahlias and stuff to put in a vase on my desk.

Such peacefulness.

Yes, I know that owning a home is tremendous commitment. It’s hard, daggone it! Like many of you, we’re close to being upside down on our house. We bought right in the middle of the 2005 upswing of prices. Four plus years later, we’re back to where we started.

At least once a week I walk through the house and the yard and mutter about all of the remodeling that’s still undone. And bemoan the hundreds … make that thousands… of dollars we’ve spent on it thus far. With thousands yet to be spent.

Sometimes we make mistakes in our home choices. Sometimes we’ve spent too much or picked the wrong neighbors or painted the walls the wrong colors. Sometimes we just flat out can’t afford our choice due to circumstances beyond our own control. Sometimes we have to face up to those mistakes and start over.

Every seller I’ve helped sell that had to sell for one reason or another–not just because they wanted a bigger or better house but because financially the house just didn’t work for them–told me they couldn’t wait to buy another one.

Homeownership IS a tremendous responsibility. But the Buyers with whom I work constantly remind me just how important it is to have one’s own space. How badly they want it . It’s an American obsession this desire to own a home. To be able to walk about one’s own rooms or yard and look about.

There’s a certain peacefulness about owning a home. I’m hooked. The dahlias are calling.