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Go Green — It’s Easy to Do

June 20th, 2009 | No Comments | Posted in Buyer's Corner, Real Estate Q&A

Go Green

Here are some things you can do in your home….

Green

Replace regular inefficient light bulbs with compact fluorescent light bulbs (CFL’s).  A CFL is 70-75% more efficient and although they cost a little more up front, you save on your electric bill over time and these bulbs last 8-10 years!  If every family replaced one bulb with a CFL, it would be like reducing carbon emissions from 800,000 cars.  Have a light bulb moment and change one light bulb.

We each use 2,200 paper napkins a year on average, which translates to a little over six napkins a day. If we all gave up one napkin a day and substituted it with a cloth napkin, we could save a billion pounds of paper waste from going into landfills each year.

When you buy one liter of water at the store, you’re actually buying about six liters of water.  When manufacturers make plastic bottles, it take five liters of water to cool the plastic.  Some plastics can make your water taste like plastic and leach harmful chemicals into your body.  If your water tastes like plastic, you are ingesting plastic. An alternative idea is to purchase a water filter and a reusable aluminum or plastic bottle.  Look on the bottom of the plastic bottle for  a small triangle with a number in the middle. If you see a number 2, 4 or 5, the bottle is safe.

The average American can use up to 24 gallons of water per shower.  Put a timer in your shower and try to keep it to 5 minutes.

Clean the lint trap in your dryer after every use.  This can reduce the energy use by up to 30% per load.

To cut down on the amount of dishwasher water usage, choose a different colored cup for each family member to use throughout the day.

Even after turning off a computer or television, power can continue to flow at up to 40% of the power used when the screen is on. Using a power strip stops the energy from being wasted and provides surge protection.

Use environmentally safe cleaning products that are dye and perfume free, nontoxic, biodegradable, naturally derived and not tested on animals.  Seventh Generation, Shaklee, Method Home and Mrs. Meyers are a few that are recommended.

Avoid using plastic Ziplock® bags for storage.   Plastic bags can sit in a landfill for over 40 years.  Better alternatives are re-usable glass containers with plastic or glass lids.

Bring your lunch to work in reusable plastic or glass containers instead of plastic wrap, plastic bags or aluminum foil.

Content provided by First American Title Insurance Company

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First Time Homebuyer Tax Credit

May 28th, 2009 | No Comments | Posted in Buyer's Corner

Realtors are working hard to make it possible for first time homebuyers who are eligible for the tax credit to be able to use that $8000 at closing.   As of right now, it’s simply a tax credit, which you can take while filing your 2009 taxes, or you can revise your 2008 taxes, or if you haven’t yet filed for 2008, you can take the credit there.

There are income limitations, and you must live in the home for three years or pay the credit back.  But all in all, it’s a great deal!  I’ve included a link to a PowerPoint presentation with loads of details.  Do you qualify?

Link to an explanation of the credit

Link to the IRS form to take the credit

Lynette Hensley
Associate Broker

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April 2009 Seattle Market Updates

AprilKING COUNTY
In King County, number of sales increased by 3.7% over March showing a seasonal rise, and also favorable market changes with some tax help for first time homebuyers.  From April ‘08 to April ‘09 average prices are down 15.27%.

SNOHOMISH COUNTY
In Snohomish County, the number of sales rose 13.6% from March ‘09.  The average price of a residence is 14.29% lower than April ‘08.

Please remember that these numbers are county wide trends, and that real estate pricing is very localized and can also be affected by the owner’s situation.
Please call us for a closer look at properties that interest you.

Lynette Hensley

Here are downloadable PDF’s:
Real Estate Market updates for King, Snohomish Counties:
King County

Snohomish County

Compiled by our title partner, from MLS statistics.

Lynette Hensley, Associate Broker, Realtor
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Short Sale Perspective

I asked if I could publish this article about short sales by Danette, because she has a unique view of the process as an escrow closer. –Lynette

Short Sales

By Danette Johnson, of Ballard Escrow

A short sale is when a seller doesn’t have enough equity in their property to fully pay off the underlying mortgage debt and negotiates a reduced payoff with one or more lenders holding a security interest in the property.  So long as the lender agrees to accept less than the amount needed to pay the debt in full, the seller is able to proceed with the sale of their property — shorting the lender or lenders the full balance due under the terms of the original loan.

With real estate values declining, sellers may consider a short sale as the answer to avoid foreclosure.  Anyone considering a short sale — sellers and listing agents and perhaps more significantly buyers and selling agents – should be educated in the world of short sales to formulate their plan of attack.

It is important to understand that a short sale does NOT protect a seller’s credit rating.  Once a payment is late or missed, the lender may report the late payment to the credit agencies. Upon completion of the sale, it may appear as a “charge off” or a “pre-foreclosure” on their credit rating.  Hence, short sales not only adversely affect the seller’s credit rating, but sellers need also be aware that they remain liable for the unpaid balance of the loan or loans being paid short unless the lender(s) agree in writing to excuse payment and confirm in writing that the debt is paid in full. Without something in writing from the lender confirming that all further payment of debt is excused, sellers may find that one or more of their lenders, post closing, will pursue payment of any unpaid loan balances by obtaining a judgement or a lien. Short sale approvals are also frequently conditioned upon the seller’s agreement to pay some portion of the remaining debt after closing.

Buyers need to be educated about the process of a short sale transaction.  Buyers may see a property advertised as a “short sale” and believe that property will be sold at bargain basement pricing, and therefore a wonderful opportunity for them.  However, buyers beware,  as short sales are plagued with delays and seemingly endless extensions of closing dates.  We find that more often than not, buyers end up extremely frustrated with the constant delay and re-negotiations by the lenders and finanlly just walk away from the transaction.  And, because of the fluctuating closing date, even buyers with the patience to wait the process out should be wary when locking in their financing until absolutely certain that their closing date will accommodate their lock-in deadlines. With interest rates again predicted to fall to record lows, short sales could cause a buyer to miss out on a very low interest rate while waiting out the lender’s approval of the short sale.  Interest rate fluctuations can mean the difference in qualifying for a buyer’s dream home or losing the opportunity to take advantage of the low rates anticipated for 2009. These frustrations should give pause and lead selling agents to question the wisdom of subjecting buyers to a short sale.

It would be helpful if our industry had a list of specific requirements that lenders consider when approving a short sale transaction.  If such a list existed, more certainty in the process would exist, and it would be easier to evaluate the property up front. To date we have found the approval process to be riddled with tentative approvals, then new conditions, and out of nowhere a new department or supervisor steps in to review what was believed to have been a pre-approved short sale. Unfortunately the work-out departments within the lending institutions are currently overwhelmed and appear to be under-trained, underpaid and under-valued by the lending institutions as a whole.   With lending regulations in turmoil and lenders continuing layoffs, short sales with preliminary approval may never reach final approval. Our experience over the last couple of years at Ballard Escrow tells us that short sales require a minimum of six months to close.  We are also finding that short sale transactions are closing with very low success rates of five to ten percent.  That means 90-95 percent are rescinded, often as a result of the buyers simply giving up and perhaps taking themselves out of the market altogether as a result of the negative experience of dealing with a short sale.

All of these issues combined should cause everyone to question the wisdom of dealing with properties that are subject to a short sale.  Be ready for a fight, or run for your life.  The choice is yours.

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Nationwide Pending Home Sales Rise 2.1%

April 1st, 2009 | No Comments | Posted in Buyer's Corner, Real Estate Q&A, Seller's Forum

Just a note:

Pending home rise 2.1 percent in Feb. from Jan. – Yahoo! Finance
http://biz.yahoo.com/ap/090401/pending_home_sales.html?.v=7

Lynette Hensley
Associate Broker

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February 2009 Seattle Market Updates

FebruaryIn King County,  number of sales increased by 8% over January showing a seasonal rise, and also favorable market changes with some tax help for first time homebuyers.

From February ’08 to February ’09 average prices are down 9%.

Not surprisingly, the most active price range for resale homes is $300,000-$350,000.  Second most active is $350,000 to $400,000.

The most active price range for new construction homes is $600,000 to $750,000, and the second most active is $750,000 to $1,000,000.

In Snohomish county, the number of sales rose 68% from January ’09.

The average price of a residence is 15% lower than February ’08.

The most active price range for resale homes is $300,000 to $350,000.  Second most active price range is $225,000 to $250,000.

In the new construction arena, the most active price range is $300,000 to $350,000.  In second place, $400,000 to $450,000.

Please remember that these numbers are county wide trends, and that real estate pricing is very localized and can also be affected by the owner’s situation.  Please call us for a closer look at properties that interest you.

Lynette Hensley

Here are the February 2009 Real Estate Market updates for King, Snohomish Counties:
King County

Snohomish County

And statistics by neighborhood:
King County Neighborhoods

Snohomish County Neighborhoods

Compiled by our title partner, from MLS statistics.

Lynette Hensley, Associate Broker, Realtor
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Can you represent us when purchasing a foreclosure?

March 12th, 2009 | No Comments | Posted in Around Town, Buyer's Corner

Question from a client:

I’ve had my eye on this house [Address].  It goes on Auction on [Date], 2009. Is it possible to buy it before that, and will the bank let us look around in it?  It is owned by [Trustee Name].
Thanks,  Client

Unfortunately, we would not be able to represent you for the purchase of a foreclosure.  It’s really a different animal than our business model covers. But I did a little digging for you, and thought you might be interested in knowing the following:
This house is not owned by [Trustee Service], but is still owned by the owner, with a lien on it at [Lender] for $[Loan].  The foreclosure process does not allow a sale or even access at this point.  This is the period of time during which the current owner, should he find the money to come current with the credit union, could redeem the house and get it back.  By law he must be given that time.  If there is a second mortgage, that could prevent a sale from proceeding. Many factors can delay or cancel an auction. Foreclosure is highly regulated by state law, and they must follow the time lines set out in the laws.  There is no short cutting that process once it’s handed over to a trustee.
Here are the risks.  There may be tax liens, utility liens, mechanics liens, or damage that you can’t know about till after the sale.  Buying a foreclosure is speculation.  Some folks win. Some lose.  People who are losing their homes often don’t take real good care of the home or their financial situation, leaving a title mess as well as a physical mess for the next guy.
So there is not any access to the house.  The only way to buy this property is to be present on the courthouse steps on the sale date and hope that it isn’t delayed and that someone else doesn’t beat you out.  You must have cash or it’s equivalent as the price is due and payable immediately.  (There are some short term loans at high interest rates that are used for the purpose, but you do not hold those loans long–you refinance ASAP.)  Foreclosure sales can be postponed for lots of reasons.
Caveat emptor (“let the buyer beware”) is the watchword where foreclosure purchases are concerned.
Hopefully I’ve answered your question–
I don’t recommend foreclosure auctions to many people.
They are for die hard investors with cash money to burn, in my opinion.
We can help you with bank owned properties or ANY property listed in the MLS, Short Sales, or Pre-foreclosures as long as they are listed in the MLS.  We can also work on For Sale By Owner homes in any of the above states as long as the owner will work with buyer agents.
For more detailed information about the foreclosure process: Link to a site that outlines the foreclosure process in WA State

Lynette Hensley
Associate Broker

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Buying New Construction? Pay attention to this!

February 27th, 2009 | No Comments | Posted in Buyer's Corner

In recent months a few of our clients who purchased new construction within the last year have been reporting trouble with their builder/seller that issued a warranty in the contract, but is not honoring it.   Whether it’s the sub-contractors that don’t respond or the now bankrupted builder, the buyers are having a tough time getting someone to respond and correct warranty items.  Anyone who is purchasing new construction then, would do well to close the transaction AFTER all the punch list items are complete, even if it means a longer close, and not rely on the warranty to cover after-close issues.   It might be well to purchase a 1 year home warranty available for about $300-400 from an independent warranty company.

We will be advising all of our new construction clients of this and require, in the contract, all punch list issues to be handled before the closing papers are signed.

Lynette Hensley
Associate Broker

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January 2009 Seattle Area Market Updates

Lynette HensleyHere are the January 2009 Real Estate Market updates for King, Snohomish and Pierce Counties:
King County
Snohomish County

And statistics by neighborhood:
King County Neighborhoods
Snohomish County Neighborhoods
 

Compiled by our title partner, from MLS statistics.

Lynette Hensley, Associate Broker, Realtor
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December ’08 Market Updates

Lynette HensleyHere are the December 2008 Real Estate Market updates for King, Snohomish and Pierce Counties:

King County

Snohomish County

Pierce County

And statistics by neighborhood:

King County by Neighborhood

Snohomish County by Neighborhood

Pierce County by Neighborhood

Compiled by our title partner Commonwealth Title, from MLS statistics.

Lynette Hensley, Associate Broker, Realtor
Back to our website