Homeowners and building owners are responsible for maintaining and repairing this section of pipe that carries wastewater from your home or building’s plumbing system to the public sewer main (usually located under the street). As the property owner, you are responsible for replacing any sidewalks and roadway removed during the repair, potentially costing thousands of dollars. Maintenance is important. The primary problem associated with side sewers is sewer backups into homes or businesses. Some causes and solutions include:

• Tree root penetrating pipes, especially older ones made of clay. Rooter services
can unclog a side sewer.
• Fats, oils and grease improperly disposed of down drains also cause blockages.
Instead, they should be properly disposed of in a sealed container in your trash.

When there is a problem it is best to call a private company first, such as a rooter service or plumber, because the problem is likely in your private side sewer line and critical time may be wasted contacting the city. However, if sewage is coming into your home when you are not using water, you should call for a Seattle Public Utilities’ maintenance crew immediately at (206) 386-1800.

You can also learn more by visiting www.seattle.gov/util/sidesewer. Some Seattle residents may qualify for a low-interest loan from the Seattle Office of Housing’s HomeWise program to help fix their side sewer problem. For information about program guidelines or to request an application, email homewise@seattle.gov or call
(206) 684-0244.

Residents may qualify for a low-interest loan from the Seattle Office of Housing’s HomeWise program to help fix their side sewer problem. For information about program guidelines or to request an application, email (206) 684-0244.

• If you bought today with a rate of 5% your payment would be $966 before taxes and insurance
• If house values went down 10% and rates go back up to 6% (the average for 30 year fixed loans) the payment would be $971 before taxes and insurance.
• If house values didn’t appreciate over next 12 months and rates go back up to 6%, the payment would be $1,079 before taxes and insurance.
• If house does appreciate (which it will, appears market is stabilizing, especially in price range below 400k) and values go up 5% and rates go back up to 6% which is 30 yr fix average the payment would be $1,079 before taxes and insurance.

Bottom line…Historically low rates, Home prices at 2004/2005 levels, now is the time to buy.
Other items to consider:

• $8,000 tax credit if you’re in contract by April 30th and closed by June 30th. You can amend your 2009 tax return and get an $8,000 check back.
• Standard interest write off – Check with your CPA for exact amount. It’s based on your income / estimated interest paid on the $180k loan amount you should receive $2,000 to $3,000 back at end of year.
• If you’re a 1st time buyer you qualify for an additional tax credit “MCC program“, this is offered through WSHFC – again, based on your income / sale price this will be $2,000 to $2,500
• Down payment assistance available up to $10,000
• No house payment for 30 to 59 days

Once you take into account the tax savings $4,000 to $5,500, your actual payment once you receive the refund is $333 to $458 less per month. Granted you don’t receive this until the beginning of next year, unless you amend your W4 withholding you can start receiving right away.

( *this is for illustrations purposes only, rates and payments subject to change…had to put the disclaimer in there;)
Kudos to K. Carlson of ARG for the compilation

So we do expect that the government will indeed close the program down in an attempt to return to more normal market conditions.  This is what they are telling us.  This will leave private investors to pick up the slack, which they may or may not do at a rate necessary to keep interest rates low.

Brian O’Connell of BankingMyWay.com says,

“If the economy doesn’t cooperate, and sends private investors into the mortgage marketplace to plug the gap (a good bet right now), then look for interest rates to rise next March. [2010]

The Fed may not do deadlines, but it’s not above firing a warning shot to the American consumer. If you want to buy a home, do it in the next three or four months. After all, the difference in monthly mortgage payments of 5% or 6% can be measured in tens of thousands of dollars over the life of the loan.”

Brian’s right. Every 1%  of interest rate increases your costs over the life of the loan, and it also reduces the price of the house you can qualify to buy. For instance if you qualify to buy a $400,000 home now at 5%, you will qualify for $358,000 at 6%.

Maximum buying power comes with low rates. We have the triple benefit of low interest rates and low prices right now, (some REO’s are ridiculously low) and government tax credits. It really is an incredibly inexpensive moment to buy.

Lynette Hensley
Associate Broker

Selling a property in this tough market can seem like a challenge. Here are four factors that actually make this a good time to post a For-Sale sign.

1. Sell low and buy low. Because all property values are down, the loss on the property a home owner sells is really only a paper loss because the next property he buys also will be a bargain. If he buys smartly, when prices come back up in a few years, he’ll be in better shape.

 [We will compare many factors, including how much you bought for, what you owe, if this would cause a short sale, etc. Many factors go into these decisions.]

2. Down-payment help is widely available. While nothing-down loans have disappeared, it is easy to find down-payment assistance for lower-income and first-time home buyers. Programs vary all over the country, but one good way to find them is to search online for “down-payment assistance programs” and the name of your region.

[While this may not help you directly, it can help to sell your home. We are associated with a few lenders who have certifications with the House Key program and other down payment assistance programs that can be specific to a city.]

3. Your uncle has money to share. Besides the $8,000 first-time home buyer tax credit and the $6,500 move-up credit, there are an array of energy tax credits that can make home improvements pay off in cash.

[These include Federal Tax Credits as well as county specific rebates that run for specified time frames.]

4. Good help is available. Really talented real estate practitioners, contractors, and designers are available and eager for business.

[Us for instance!]
Source: McClatchy Tribune, Kate Forgach (02/07/2010)

1. Large kitchens with islands
2. Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
3. Home offices
4. Main-floor master suite
5. Outdoor living space
6. Ceiling fans
7. Soaking tub in the master suite and/or an oversize shower with a seating area
8. Stone and brick exteriors rather than stucco or vinyl
9. Community walking paths and playgrounds
10. Two-car garages, but three-car garages are even more desirable

From a survey by Avid Ratings via Realtor Magazine

Lynette Hensley
Associate Broker

Rainier View from Roof Top Deck of Legendary Homes

We were holding open house a week or so ago, and the sky was just right to take these photos of Mt. Rainier from the roof top deck. The mountain can be seen from at least three levels of the home. Hm, I’ll have to check out the lower level when we are there on Saturday.

Come visit!  They are stellar homes, and the views are fabulous!

Feel free to call with questions

Lynette Hensley
Associate Broker
425 772 7231

First time homebuyers:

• The $8000 tax credit is for first time homebuyers only. For the tax credit program, the IRS defines a first time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8000.
• The tax credit applies only to homes priced at $800,000 or less.

Repeat Home Buyers:

• To be eligible to claim the tax credit, buyers must have owned and lived in their home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6500.
• The tax credit applies only to homes priced $800,000 or less.

This info is not intended as legal or tax advice. I just wanted you to know the basics to see if you might be qualified and to find out more. Here is a link to the current info: Tax Credit

Let me know if I can help in any way!

Lynette Hensley
Associate Broker

 Friday, November 6th President Obama signed the legislation.   

 The bill passed the house on a 403-0 vote and the senate on a 98-0 vote on Wednesday.

 KEY CHANGES

~   Written binding contract signed by April 30, 2010 / Close by July 1, 2010
~   Income limit increase:  Single $125,000 / Married $225,000
~   Cost of home cannot exceed $800,000

~   Existing homeowner credit eligibility of $6,500 tax credit.  Must have owned principal home for 5 of the last 8 years  (& be purchasing a new home).    

Link to Chart for more detailed information and  FAQ’s .  Great info. 

In the current market houses that range from $425-500K are getting multiple offers. 

If you are pre-approved and ready to make offers, and are just waiting for the one house that tells you “I’m the one you want”, there are currently lots of houses on the market in this range, and many have been sitting there for months.  You may have been through dozens of houses, or just a few, but none of them has been quite the right thing. Today your realtor has taken you to one house that just had a dramatic price drop.  It just went from $450K to $399K or in some cases even $350K.  Why?  You may wonder why–has it finally come down to it’s real value?

This may be a marketing strategy that allows this home to stand out from the relative abundance of homes available in this price range.

So you go– and it’s a great house, in fact, it’s prettier and shinier than many of the houses you’ve been to over the last few weeks. Clean, charming, just the right layout, very cool!  But WHY is it $399k?  There’s a window of pricing that causes buyers to line up for affordable housing and these homes often receive multiple offers.

Here’s what’s happening out there now in Seattle and some other markets.  There are some listing agents who along with their sellers are willing to take a risk.  They know that the house they are selling is worth $450k, in fact they have an appraisal from the end of 2008 showing a value over $450k.  And they are gambling that if they drop the price under the $400K threshhold, that they could very well stir up a bit of a feeding frenzy, multiple offers and a sale over the asking price.  It’s happening all over Seattle.  Many of the homes priced this aggressively are bank owned homes, and we’ve seen a high percentage priced at, say $250K end up selling for $10K-$100K over the list price.

Naturally there will be some fallout, some buyers will be disgusted with this strategy and tell their agent, “Pay over list in THIS market, NO way!” But we see it every day, that this market is in flux, changing all the time. It’s a fascinating and sometimes frustrating time. You may experience it as frustrating, and while we understand your frustration, we also find it fascinating.  In this way listing agents open the door to a great or at least better-than-average deal on a home a buyer might not otherwise be able to afford.  The trick for the buyer is not to fall in love with the home and cut bait if the seller/seller’s agent are unreasonable. 

We may or may not have reached the bottom of the housing market.  Realtors as a class can be very creative in their marketing, and Realtors and sellers are getting hungry and savvy enough to find ways to pique people’s interest.

Most of this kind of multiple offer situation is in the bank-owned arena.  But sellers are catching on, realize that they are in competition with the bank owned homes too, and the ones that get tired of sitting or simply need a quick sale may want to employ this kind of strategy.  Buyers need to be aware that just because it’s priced at $225k doesn’t mean that’s where it will sell.  And if you want to be the buyer of such a property and you want to win, well, money does talk.  You need someone that can negotiate hard among an array of sometimes dozens of other agents/buyers.

Buyers need to think about the price vs. the value as they decide what to offer, and also need to understand that there may only be one chance at it.  Consider the other homes you have been looking at.  This is the one that stood out to you–is it only because of price, or is it because it’s the right house, well kept, move in ready, in a great location.  There’s value in that!  Others see the value as well, and even with lots of houses on the market, in our experience, the number of well-kept homes for sale right now is lower in proportion.  People sell in the low ebb of a market when they have to, and lots of folks are in financial stress, which means that many homes for sale at what seems to be a relative bargain have not been kept up very well.

Most of this article has been about multiple offers and buying over the list price.  There are plenty of sales where the final selling price is under list–the majority in fact.  Statistics show that homes in the greater Seattle area sell on average at 3% under list price. 

These are exciting times for real estate buyers.

KING COUNTY
In King County, number of sales decreased by 6.8% over July which is a small decrease month over month.    From August ‘08 to August  ‘09 the median price is down 11.55%.

SNOHOMISH COUNTY
In Snohomish County, the number of sales also decreased 6.9% from July ‘09.  The average price of a residence is 11.77% lower than August ‘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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