Real Estate Information Archive

When I first became a real estate agent in 2004, some of the people I knew were surprised.  They said that they didn't think I was the type of person that would be a real estate agent and they asked why I was getting into real estate.  They seemed concerned!  What did they mean by all that?  Well, I found a lot of people I knew had a bad impression of real estate agents and that generally, real estate agents were respected less than attorneys.  OUCH!  This was news to me, because when my husband and I purchased our first home in 2002, we were blessed to have a very good real estate agent.  She made her job look fun and easy, and we had a great time working with her!  I wish there were more good agents like her around, and that is part of why I got into real estate.

The reason I am a real estate agent is because people deserve better than what they have had in the past.  Buyers and sellers should have the BEST representation and deserve to have a trusted real estate advisor that is a specialist... someone who maintains the buyer or seller's best interest at all times.... someone who will carefully listen to their client's needs... someone who will follow-through and do exactly what they say they will do... someone who communicates regularly with their clients and returns phone calls and emails... someone that enjoys their chosen career and looks forward to helping people every day... someone who will negotiate on their client's behalf and help them get to the next stage in their life: owning a home or selling their home!

I love meeting new people and it warms my heart to help others.  It's not about me - it's about the needs of my clients.  Not every buyer or seller is the same, and everyone has a different story to tell.  I treat my clients like the individuals that they are and I cherish my clients.  With over 28,000 licensed real estate agents in the NWMLS, I know that finding a good agent can be like searching for a needle in a haystack.  If you are reading this blog, then I welcome you and I thank you.

If you've had bad experiences with real estate agents in the past, I empathize with you.  You deserve to have had a wonderful experience and your agent should have provided you with excellent customer service.  Not all agents are the same and every agent is the CEO of their own business, so we all handle things differently.  If you are looking for a genuine REALTOR who truly cares, please contact me.  I'd love the opportunity to earn your business.

Here is some information about the Housing and Recovery Act of 2008 and what it means for you!  There is a very nice summary of the bill located at the National Association of Realtors website here and some FHA FAQ's can be answered by clicking here.  John L. Scott also summarized it here.

Housing and Economic Recovery

Act of 2008

The passage of the Housing and Economic Recovery Act of 2008 is an enormous step forward for homeownership that not only benefits hundreds of thousands of current and potential homebuyers.

What does the legislation mean for you?

Key Points of the Housing Bill:

      First – time home buyer tax credit

      Higher permanent loan limits

      Foreclosure relief

      Refinancing assistance

      Lines of credit to Fannie Mae and Freddie Mac

      Additional deduction for property taxes

First – Time Home Buyer Tax Credit

Buyers who are purchasing for the first time or who haven’t owned property in the last three years would qualify for a tax credit equal to 10% of their home purchase price, up to $7,500.

      Purchase must be made between April 9, 2008 and July 1, 2009

      Home must be primary residence

      Can not have owned a home in the last 3 years

      Credit phases out if buyer’s income exceeds $75,000 for an individual or $150,000 for a couple filing jointly

      This is a tax credit and not a tax deduction

      Credit must be paid back over 15 years in equal installments

Effects of First – Time Home Buyer Tax Credit

The 1975 Housing Act created a 5% tax credit (up to $2,000) for first-time buyers. 535,000 people took advantage of the tax credit to become new homeowners.

In 2008, there is a good selection of homes in the more affordable price ranges, but there is not an overabundance. Homes in the more affordable price ranges will only go up over this next ten-year housing cycle.

The ripple effect of increased sales in the more affordable markets will eventually cause a chain reaction of sales up the price points, helping stabilize the entire housing economy.

Higher Permanent Loan Limits

      FHA, Fannie Mae and Freddie Mac loan limits will be permanently increased to 115% of median price, up to $625,000!!!

      FHA base limit (floor) is increased to $271,050

      Fannie Mae and Freddie Mac base limit remains at $417,000

      Loan limits will depend on median price in the MSA (metropolitan statistical are,) up to a maximum of $625,000.

Higher loan limits mean more buyers qualify for affordable financing, especially those seeking to purchase homes in the higher price ranges.

Foreclosure Relief

Will provide assistance to more than 400,000 homeowners who are in danger of foreclosing.

      Homeowners must live in homes that were financed between January 2005 and June 2007.

      They must be spending at least 31% of gross income on mortgage payments

      Home will need to be reappraised to determine current value

      Lenders will write down value of loan to 90% of home’s current value

      FHA will back each loan

Refinancing Assistance

The government will insure up to $300 billion in refinanced mortgages.

Decreasing the number of foreclosures will help curtail their negative effect on home prices.

Lines of Credit to Fannie Mae and Freddie Mac

The treasury Department will have the power to extend unlimited credit to Fannie and Freddie.

Will create a new regulator to oversee these GSEs (government sponsored enterprises)

Government support of Fannie and Freddie will boost consumer and investor confidence in home lending.

Additional Deduction for Property Taxes

Homeowners can deduct up to $500 (or $1,000 for joint filers) for state and local property taxes.

      Applies only to homeowners who claim the standard deduction, not those who itemize

      Applies only to 2008 tax returns

Among homeowners nationwide. Currently only one half itemize. So 50% of all homeowners can take advantage of this tax deduction.

Additional Notes

The act will eliminate seller funded down payment assistance programs including Ameridream, Genesis, and Nehemiah effective October 1, 2008. The borrower must be under contract, underwritten and approved by September 30, 2008.

Effects of Housing Tax Credit

The last time the government passed a tax credit for home buyers, 535,000 people took advantage of it, sales of homes increased 10%, and inventory of new homes on the market was cut from over 10 months to fewer than 6. The 2008 legislation could boost the number of homes sold to 700,000 or 10%. 

This is the beginning of the next real estate cycle!

If you have been waiting for the ringing bell to alert you to the right time to buy or sell, this legislation could be it - don’t miss this opportunity!

Good news!  Here is a letter I received from the president of the National Association of REALTORS, or NAR.  It explains what the new HR 3221 bill means, in plain English:

I couldn't find a good spot to display the link to view all of my virtual tours, so I figured my blog area would be easiest.  You can click this button any time to see all of my virtual tours for my listings.  Please check back often to see additional homes as my current listing inventory expands.

When you work with me to buy or sell, I sign you up to receive a 10% discount off your purchase at Lowe's.  Lowe's and the National Association of Realtors have a partnership that allows me to provide this to my clients.  I was looking through the website and I found a cool web banner I can add to my website.  If you click the picture below, you will be redirected to Lowe's moving website where you can sign yourself up to save 10% on your next purchase!  You don't have to be a seller, a buyer, or even know me.  Just click and start saving!  :)  Like I say, "You don't have to be buying or selling to use my services.  I am here to help!"

You probably guess it, but it has been confirmed that most Washington State home buyers used the internet to search for a home last year.  This is why most of my marketing (for my listings) is targeted to web sites.  I like to go where the buyers are!  Here are some statistics about how home-buyers in our state searched for homes last year:

Yes, finally a new post!  I have been working crazy-long 11 to 14 hour days, so I gave myself permission to take some much-needed time off.  So, I'm back and feeling better than ever!

Every late October or November, I have mailed my contacts (friends, family, past clients, vendors) a magnetic refrigerator calendar with a real estate theme.  A few years ago I did an informal poll and asked if I should send them full size calendars instead.  I was delighted to hear that a number of my friends and family members actually use these fridge calendars and enjoy them, so I will always provide them.  If you would like one, please contact me.  I have plenty of 2008 calendars left-over and I would be happy to mail one to you.

Here are the handy tips taken from this year's calendar, ordered by Selling or Buying:

HOME SELLING TIP #1: Think safety.  Homeowners learn to live with all kinds of self-set booby traps: roller skates on the stairs, tangled extension cords, slippery throw rugs and low hanging overhead lights.  Make your residence as non-perilous as possible for uninitiated visitors.

HOME SELLING TIP #2:  A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects.  The fewer obstacles between prospects and the true appeal of your home, the better.

HOME SELLING TIP #3:  Check faucets and bulbs.  Dripping water rattles the nerves, discolors sinks, and suggests faulty or worn-out plumbing.  Burned out bulbs or faulty wiring leave prospects in the dark.  Don't let little problems detract from what's right with your home.

HOME SELLING TIP #4:  Know the features that help or hurt resale in your neighborhood.  In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell.  Your real estate professional can help you to decide on which features to advertise strongly and which to leave in the background.

HOME SELLING TIP #5:  Don't turn your home into a second-hand store.  When prospects come to view your home, don't distract them with offers to sell those furnishings you no longer need.  You may lose the biggest sale of all.

HOME SELLING TIP #6:  When you are selling, create an information sheet that lists your home's features and best qualities, especially those that people might otherwise overlook.  Give this to your real estate agent, who will use the information when talking with other potential purchasers.

HOME BUYING TIP #1:  Create a realistic idea of the property you'd like to buy.  What features are most important to you?  Make two lists: one of the items you can't live without and one of the features you would enjoy.  Refine the list as you house hunt.

HOME BUYING TIP #2:  Get prequalified for a loan, which determines how much you can afford.  It allows you to move swiftly when you find the right home, especially when there are other interested buyers.  It also indicates to the seller that you are serious and really can afford to buy the property.

HOME BUYING TIP #3:  Select a professional to help you find your dream home and fine-tune your financial expectations.  Working with a buyer's agent is worth consideration, or you could choose a sales or dual agent.  Before making a decision, have a REALTOR® explain the pros and cons of each.

HOME BUYING TIP #4:  After your offer is accepted, set up a home inspection.  It's common to find problems, including leaky roofs, cracked walls, insect infestations and foundation problems.  If you negotiate repairs as part of the purchase, ask for a "walk through" before finalizing the paperwork.

HOME BUYING TIP #5:  Pay attention to credentials when selecting your real estate representative.  This will help you determine areas of expertise.  Dozens of designations are achieved following continuous education, so identify one or more that fit your needs and look for these as you review professionals.

HOME BUYING TIP #6:  Before rolling out the welcome mat, consider some moving basics: arranging for an alarm company, turning on electricity, water and gas, cleaning or replacing the carpet, and notifying your local post office of your new address.  The best time for renovations is often before you move in.

I hope this tips have been helpful to you.  Please contact me if you would like more tips like these, and if you'd like to be added to my exclusive list of calendar recipients.

If you have plenty of equity in your home, you may still be able to net a good amount of money by selling, even if it's considered a slow real estate market.  As long as the sale works within your overall financial situation, it can be a wise and safe decision to sell your home.

All real estate markets go through up and down cycles - what we are experiencing is normal. Over the long term, housing prices tend to increase. My broker's favorite news article is a chart from the Seattle Times that shows houses double in value every ten years.  Here it is in one of my postcard mailings:

If you sell your home during a slow real estate market, the odds are that at some point you'll also be selling another home during better market conditions. If you are staying in the same area or moving to another slow housing market, you are simply trading one reduced-price house for another. If you're moving to a more expensive market or a market currently doing better than the one you're leaving, you do need to be careful because spending more on a house could compromise your long-term personal and financial goals. 

If you must move or relocate and you want to wait for a better real estate market, you may consider renting out your house until the market turns around. If you convert your home into a rental, be sure that you understand the tax consequences of this arrangement.