For purchasers this is still a good time to be considering buying a home. With the interest rates at an all time low and the market still soft, now seems to be the best time to be a buyer.  As we approach the summer selling season, I believe that with the decreased amount of homes for sale, the prices will start to inch up. Hopefully interest rates will stay down for some time.

• Lower your hot water heater to 120 degrees
• Use a programmable thermostat to drop night time temps to 55 degrees
• Change your furnace filter regularly and make sure the furnace is tuned.
• Have your duct work checked and vents balanced
• Add insulation to the attic

By following these tips and watching your energy consumption, you should be able to save some money and help the planet. We hope that you have enjoyed these energy saving tips. Please feel free to contact Rick Bunzel at Pacific Crest Inspections,  1-866-618-7764, or contact any of us at Coldwell Banker Koetje Real Estate in beautiful Oak Harbor, Wa. for any other real estate related questions or comments. We are here to serve you.

• North Whidbey Island, which includes every sale north of Libbey Rd, was down both in total transactions and median sales price. Sales were down approximately 6% from 2010 and the median sales prices was down approximately 5%.
• Central Whidbey Island saw a year where the sales increased approximately 6% but the  median sales price remained about the same as 2010.
• South Whidbey Island experienced an increase in sales of approximately 1.5% but declined in median sales price of close to 13%.

As we have always been told, real estate is very local. These few statistics only give a snapshot of the overall market in these areas. Individual homes and locations can vary by quite a large differential. Your local real estate specialist can help you with your particular property’s value and ability to be sold. I will be posting a much more in-depth market report in a few weeks.

1. If the house is more than 3 years old, get the furnace serviced and provide the inspector the receipts.
2. Paint and touch up any peeling paint areas.
3. If you have an older roof, have a roofer check it and make any repairs. Provide the receipts to the inspector.
4. If something is broken, get it fixed before the inspection. If you can’t get it fixed, disclose it to the inspector.
5. Make sure everything is accessible.

Consider having a pre-listing inspection. Spending a little bit of money upfront can yield big savings during the negotiations.

For further help, please feel free to contact Rick Bunzel at 1-866-618-7764 or visit his web site at http://www.paccrestinspections.com

For Marketing Information and Home Sales, please feel free to contact Coldwell Banker Koetje Real Estate at 1-800-869-7129 or visit the Coldwell Banker Koetje Real Estate website.

In today’s lending environment,  your credit rating is one of the most important things to consider. You credit rating can affect your interest rate, your ability to qualify for the loan, and many other factors. I posted an interview with a local lender that answered Home Mortgage Questions that is very informative.

Back to the down payment question. Do you need 20% down to buy a home. The answer to that question is NO. There are loan programs available today with a minimum  zero down payment  if you qualify. There are FHA programs available with 3%-5% down payment available. There are conventional mortgage programs available with very minimal down payments required.  There are some great loan advisers here on Whidbey Island. I would encourage any one that is considering a home purchase to sit down with one of these local advisers and get your questions answered. It is very possible that today may be the day that you decide that it is time to own your own home.

Besides being a Whidbey Island Home Inspector, Rick Bunzel is the Principle Inspector at Pacific Crest Inspections.  If you would like to know more about your home go to WWW.Paccrestinspections.com

Rick Schutte is the Owner/Designated Broker of Coldwell Banker Koetje Real Estate in Oak Harbor, Wa.

• My faucet leaks - My front door squeaks - My toilet’s full of pooh -

 But I’m as helpless as can be, so there’s nothing I can do

• I turned the gas off to my stove –  The outlets I did overload –  My front yard sure needs to be mowed

 But I’m as helpless as can be, so there’s nothing I can do

• My smoke detector’s beeping –  I see spiders that are creeping - My windows they are weeping

But I’m as helpless as can be, so there’s nothing I can do

• The light bulb burned out in my frig –  The water’s out in Indian Ridge –  My carpet’s old, can I have new?

But I’m as helpless as can be, so there’s nothing I can do

• I broke a window while mowing the grass –  I locked myself out and I ain’t got cash –  The dumpster surround is really trashed

But I’m as helpless as can be, so there’s nothing I can do

• The power’s out in two neighborhoods - I saw a rat yesterday in the woods –  I want new screens for my whole unit…….

But I’m as helpless as can be, so there’s nothing I can do

So I hope you appreciate  your property manager and know that they are doing the best they can for you. Keep smiling, have patience and enjoy your home.

Content Provided by: Gordon Collick; Koetje Property Management

I see homes everyday that are great investment values, that I would buy myself if I could.

1.     Do you have a steady income? At or near the top of every potential homebuyer’s mind is whether or not they can afford to buy a home right now. Buying a home remains a sound financial decision for those with documented income and a good credit history, and a steady income can provide a strong backbone for the initial down payment and future mortgage payments. Buy-versus-rent calculators available on websites such as coldwellbanker.com offer a good start, but there are numerous factors beyond straight economics that also need to be considered. Don’t hesitate to speak with a real estate professional even before you’re ready to buy a home. Along with a financial planner, a Coldwell Banker Koetje real estate professional can help you answer and uncover questions about the cost of homeownership.

2. Do you plan to stay in a home for an extended period of time? With proper planning, a home purchase has historically proven to be one of the safest investments one can make. Along those lines, it’s imperative to understand that investing in a home is much different than investing in a stock portfolio. Homes typically appreciate in value over time while the owner builds his or her equity through monthly mortgage payments. If you anticipate staying in a home for only one or two years, it doesn’t necessarily mean buying is not for you, but you are less likely to see a significant financial return on your investment.

3. Do you plan to sell a house in order to buy a house? A local real estate professional can help you understand current local market conditions and will help you make smart decisions when listing a home on the market. If you do not currently own a home that needs to be sold prior to purchasing a new one, now is a particularly smart time to buy. Even with lenders becoming increasingly more thorough in their approval process, mortgage financing is still widely available for those with a steady income and solid credit. High inventories and low interest rates give first-time homebuyers a tremendous amount of opportunity and flexibility in markets across the U.S.

4. How do your other options compare? For renters, calculating month-to-month housing expenses is as easy as inquiring about the monthly rent and average utilities. The calculation gets a bit more complicated when considering the monthly cost of owning a home. A real estate professional can help you understand a range of financial considerations from annual property taxes to the tax incentives for owning a home.

If you are a senior, there are buyer’s agents that have been trained and certified to work specifically with seniors and to understand some of the unique challenges that are created due to down-sizing, financing, etc. These agents have the Senior Residential Specialist Designation issued by the National Association of Realtors. If you are a senior, I would recommend asking for a buyer’s agent with this designation.

Seven in 10 Americans also agreed that buying a home is a good financial decision while almost two-thirds said now is a good time to purchase a home. The annual survey, which measures how affordable housing issues affect consumers, also found that more than three quarters of renters (77 percent) said they would be less likely to buy a home if they were required to put down a 20 percent down payment on the home, and a strong majority (71 percent) believe a 20 percent down payment requirement could have a negative impact on the housing market.

“Despite the economic setbacks Americans have experienced in today’s current climate, it is clear that a strong majority still believe in home ownership and aspire to own a home,” said NAR President Ron Phipps, broker-president of Phipps Realty in Warwick, R.I. “However, achieving the dream of home ownership will become increasingly difficult for buyers if they are required to make a 20 percent down payment, which may be a reality for many of tomorrow’s buyers if a proposed Qualified Residential Mortgage rule is adopted. That is why Realtors^® are strongly urging regulators to go back to the drawing board on the proposed rule.”

Defining the QRM rule is important because it will determine the types of mortgages that will generally be available to borrowers in the future. As currently proposed, borrowers with less than 20 percent down will have to choose between higher fees and rates today — up to 3 percentage points more — or a 9-14 year delay while they save up the necessary down payment.

Over half — 51 percent — of self-described “working class” home owners as well as younger non-college graduates (51 percent), African Americans (57 percent) and Hispanics (50 percent) who currently own their homes reported that a 20 percent down payment would have prevented them from becoming home owners.

Pulse surveys for the past eight years have consistently reported that having enough money for a down payment and closing costs are top obstacles that make housing unaffordable for Americans. Eighty-two percent of respondents cited these as the top obstacle, followed by having confidence in one’s job security.

The survey also found respondents were adamantly against eliminating the mortgage interest deduction. Two-thirds of Americans oppose eliminating the tax benefit, while 73 percent believe eliminating the MID will have a negative impact on the housing market as well as the overall economy.

“The MID facilitates home ownership by reducing the carrying costs of owning a home, and it makes a real difference to hard-working American families,” said Phipps. “Home ownership offers not only social benefits, but also long-term value for families, communities and the nation’s economy. We need to make sure that any changes to current programs or incentives don’t jeopardize our collective futures.”

When asked why home ownership matters to them, respondents cited stability and safety as the top reason. Long-term economic reasons such as building equity followed closely behind. On a local level, respondents said neighbors falling behind on their mortgages and the drop in home values were top concerns. Foreclosures also continue to remain a large concern, with almost half of those surveyed citing the issue as a problem in their area.

If you are interested in Home Buying information, contact us at anytime at cbk@whidbeyrealestate.com or visit our website at www.WhidbeyRealEstate.com

1. Employ an expert: A typical property owner does not have anywhere near the home-selling experience of a real estate agent. Agents can recommend relatively simple improvements—painting, making repairs, decluttering—that can help a home sell faster and for a better price. Your Realtor is the neighborhood expert. They can walk through a property and see right away what needs to be done to get the home sold. Independent sellers might not be aware of these tricks of the trade.

2. Use better tools: Homeowners using agents can get their property listed on Realtor.com, the most widely searched real estate website. Whidbey Island Home Sellers can get their homes listed on all of the local real estate company websites, including Coldwell Banker Koetje Real Estate website, which is one of the most comprehensive local real estate websites. Independent sellers do not have access to these services.  Another of our Whidbey Island Home Selling Tips is to ensure that your home listing is available for mobile viewing, ie. smartphones, Ipads, etc.

3. Sidestep lawsuits: Agents can also help protect sellers from potential litigation. There are all kinds of liability issues that a seller could potentially face when…dealing one on one with a buyer.  A homeowner could, for example  tell a potential buyer that hardwood floors extend to all corners of the house underneath the wall-to-wall carpeting. But if even one room has cement flooring, the homeowner could be sued. Agents, who have experience dealing with these liability issues, can help homeowners dodge such scenarios. Another Whidbey Island home selling tip to avoid lawsuits: provide a full home disclosure to the purchaser. This is required by law.

4. Duck the riffraff: Independent sellers might not have any idea whom they are letting into their homes during open houses. These potential buyers might not have the credit to make the purchase—and would therefore be wasting the homeowner’s time—or could even “try to rob them later on. Homeowners working with agents will have qualified buyers visiting their properties. The agent has developed a relationship with their client and knows their qualifications.

5. Avoid hardball tactics: It’s a buyer’s market out there. And with all the information available online, today’s well-informed buyers are tough negotiators, too. Real estate agents have been through the home-selling process before and are trained in negotiating tactics—giving them a potential edge in negotiating  a deal in the seller’s best interest.  Our last Whidbey Island home selling tip is to have a strong negotiator on your side. Using a professional is in your best interest.

Hopefully these Whidbey Island home selling tips have been a help to you. Please feel free to contact us at 360-675-5915 or email us at cbk@whidbeyrealestate.com at any time. We are here to be of service to you.

Content provided by: Luke Mullins: USNews.com

That was historically.  In today’s market enviornment, things have changed. Values have decreased from past sales and there are many other influencing factors involved in the calculations to achieve a realistic, marketable price for a home today. The amount of foreclosures and short sales has dramatically affected values.  The deflated price of  those sales affects the value of homes around them. Buyers then use those sales as the benchmark for value, offering to purchase at those deflated prices.

In today’s market, we must take a look at a home’s competition before setting a price to sell. If like homes are competing for the buyers attention, we must make sure the price is in line with, or lower than the competing homes that are for sale. Purchasers are shopping for value in the current  real estate market.

For information or help in preparing your home for sale, and in preparing the asking price, contact us at any time. We are here to help you with all of your housing needs.

Gil Daigle, Coldwell Banker Koetje Real Estate

I’ve been saying that now is the time to buy if you’re in the market for a house. We’ve been in a buyer’s market for about 4 years, so you might ask, “What makes now the time to buy.”  The answer has a number of variables; the first is availability, how many houses are for sale. Let us assume a price range between $250,000 and $275,000 and a search area of North and Central Whidbey Island. Presently there are 30 houses for sale in this price range.

The next variable to consider is seller motivation. We gauge motivation by how long a property has been on the market. The average time on the market for these 30 homes is 158.7 days or just over 5 months. This is a long time, so these sellers should be motivated to sell. Motivation determines how willing sellers are to lower their price.

The last variable to consider is the home loan interest rate. Interest rates have been at all time lows. Even today, interest rates are very low at 4.25%. However, it is important to consider where the rates will go.

Traditionally interest rates rise as our national debt increases. Our national debt is at an all time high and continues to rise. You might ask if the debt is so high, “why are interest rates so low.” This is an excellent question. The rates are low because the government is holding them low. Low interest rates allow consumers to borrow money cheaply. The government hopes that Americans will borrow money and spend it on consumer products. The spending will boost both the local and national economies. Unfortunately the plan is not working. Because of their lack of confidence in the economy, Americans are saving, not spending. It is important to know that these rates cannot be kept this low indefinitely. They will rise, and this is the point of my letter.

I have observed that there are buyers wanting to buy property but resisting because of the continued declining market. It appears they are trying to time their purchase with the bottom of the market. On the surface, it seems to be a great idea. Buy low and sell high is the oldest investment adage. What I want to point out to all buyers is watch the interest rates. Interest rates have a tremendous impact on house payments. Let us look at an example. Assume you are interested in a house that costs $270,000. Suppose you can buy that house today at an interest rate of 4.5%, with a zero down VA loan your house payments will be $1,368 per month. Now let us assume you wait until the price drops to $250,000; but while you are waiting the interest rate increases to 5.5%. Your monthly payments will now be $1,419 per month, which equals a $51 per month increase in your house payment. A 1% rise in interest rates negates a $20,000 drop in price.

Stop by and see me. I have much more comparison data between prices and interest rates. It is something you must see before you wait too long.

Article contributed by: Gil Daigle, Coldwell Banker Koetje Real Estate

The essence of the article was that if you are a home seller in this market, you probably feel you can’t catch a break.  To help overcome that, you need a bit of razzle-dazzle to nab a buyer today.  The following attention-grabbing home seller tips will get prospects to your front door.

• Slash Your Price, Bigtime

Many sellers give in to the temptation to list the property above fair market value to see what happens. Big mistake. About a quarter of sellers in the past year initially listed too high and were forced to knock the price lower, according to Trulia.com.  Think you can always drop the price if your home doesn’t sell.  Bigger mistake.  The first 30 days on the market are the most important. That’s when your home will receive the most attention and get the most showings. So get aggressive right out of the gate.

• Hire a Stager

Veteran real estate brokers interviewed by Money Magazine say that proper staging can speed the sale and often increase the price too. The key is to get it done right.  Staging, increasingly popular with homeowners trying to sell mid-range houses, can extend from simply rearranging existing furniture to repainting, replacing fixtures, and bringing in new furnishings. The goal: to highlight the house’s best features while making it as easy as possible for buyers to imagine themselves living there.

• Find the Right Hook

These days it’s going to take far more than a For Sale sign in the front yard and a spot on the multiple-listing service to get potential buyers in the door. That means getting the word out in a creative fashion-and finding a Realtor who is willing to do the same. “The more eyeballs that get on the listing, the better,” says Katie Curnutte of the real estate information website Zillow.com. To do that, you need a multi pronged marketing plan of attack.

To read the whole article in Money Magazine please click here.

To discuss these homes seller tips, plus many other ideas for getting your home sold, please feel free to contact us at anytime at Coldwell Banker Koetje Real Estate.

North Whidbey Island 2010 Statistics for evaluating the effect of Distressed Home Sales:

•  Short Sales were 11.5% of the active listings and 5% of the sold listings.  Foreclosures were 9% of the active listings and 17.5% of the sold listings. 
• The average listing price range of the overall market was $263,000.  The median sales price of non-distressed homes was $250,000, Short Sales was $220,000, and Foreclosures was $160,000.
• The price per square foot for non-distressed sales was $150 per sq. ft., Short Sales was $124 per sq. ft., and Foreclosures was $112 per sq. ft.

Based on these statistics, it can be noted that a larger foreclosed home could be purchased for less money that a smaller non-distressed home. Also it can be noted that more Foreclosures were being purchased than Short Sales which will make the Short Sale homes probably result in Foreclosures.

With all of this being said, I do believe that prices have stabilized in our market. Over the next year, we will see some gyration of values but nothing like we have experienced in the last few years. It is still a great time to buy if you are a buyer, and if you are a seller that has owned your home for more than 5 years it is still a good time to sell. If you purchased your home within the last 5 years and don’t need to sell, then I would recommend holding on to it if you can. Call us about Property Management if you need to leave the area. If you are still living in your home and just need more space, than maybe a remodel would be best for you. We know of some outstanding contractors that we would be happy to recommend to you. Whatever the situation is, I can assure you that home ownership is still “The American Dream”.

I was recently asked to speak at the Rotary Luncheon about the state of the real estate market in Oak Harbor. My speaking engagement was postponed for a few weeks, but I thought I would share some of the information in this blog. I will continue with a second blog that will address another area that affects the real estate market, Short Sales and Bank Owned Properties.

 The first answer that I have after someone asks me about the real estate market is, “It depends”. Now I am not trying to be flippant with that statement, but my answer really does depend on if you are a buyer, a seller, when you bought your home, etc.

•  If you are a buyer, the question is a no brainer. The Oak Harbor Real Estate Market is fantastic. In fact, I just helped my niece and her family make a purchase of a home. Interest rates are at all time lows (though they are starting to creep up). There is a large supply of inventory on the market for sale right now and sellers are being very generous in their negotiations.

• If you are a seller and you have owned your home for at least 10 years, than it is a good market. As you can see from the chart, home prices have appreciated 3-4% average over the last 10 years. So if you need to sell, than from an investment perspective, you have made a good decision and the Real Estate Market is good. 

• If you are a seller and you haven’t owned your home for more than 5 years, than the value of your home is probably equal to or less than your original purchase price and you might want to consider other alternatives to selling, such as rent, or not moving. If you are in this situation than the Oak Harbor Real Estate Market is not so good but is getting better.

A large component of the Oak Harbor Real Estate Market is Short Sales and Bank Owned Properties. In my next post, I will explain the statistics for these sales and how they are affecting our market.

 Contributed By: Rick Schutte

Owner/Designated Broker Coldwell Banker Koetje Real Estate

First, the good news. The housing market received a serving of good news last week, as New Home Sales reportedly rose 17.5% in December to come in better than expectations. Overall, the report demonstrated that housing continues to recover – albeit slowly. Despite that good news though, the markets were keyed in on another more important event last week: the release of the Fed’s Interest Rate Decision and Monetary Policy Statement.

As expected, the Fed made no change to the Fed Funds Rate and even the Policy Statement was pretty much the same. But that didn’t stop the markets from getting a little fired up about the release. Let’s take a look at why.

It’s important to understand that the Fed has to be very careful with how bullish their economic comments are, as they don’t want to see long-term rates move higher. Well, the Fed’s comments certainly were not bullish as they said “employers remain reluctant to add to payrolls” and “the housing sector remains depressed.”

So why did Bonds initially improve nicely on the news and then crumble later in the day? The answer is, not everyone in the trading pits is buying what the Fed is saying. Instead, some people believe the Fed is talking down the true underlying strength of the economy, so that it can justify injecting the full $600 Billion of Quantitative Easing into the economy.

Speaking of comments that impacted the markets… President Obama delivered his State of the Union Address to members of Congress last week. Although the President’s call for a freeze on discretionary spending for 5 years may appear to be Bond bullish in that any reduction in the deficit would be good for Bonds, the reality is that so much more has to be done to really get our long-term debt in check. And some of last week’s weakness in Bonds was likely attributed to the feeling that the speech came and went without any real sense that the deficit is going to be reduced in a meaningful way, especially in the near term. The Bond market probably would have liked the word “cut” in spending rather than “freeze,” since a “freeze” suggests only a temporary halt in spending at current levels.

In the end, the news last week demonstrated that economic conditions are improving, but they are doing so gradually. As a result, the market remains volatile, as Bonds and home loan rates move up and down depending on what reports or speeches hit the news wires. The good news is that despite the volatility, home loan rates remain extremely low for now and present a tremendous opportunity for buyers who lock in at the opportune moment.

To learn more about the volatility and how you or someone you know can benefit from a knowledgeable advisor Coldwell Banker Koetje Real Estate, please call or email today.We would be happy to discuss the current economic climate and what it means to your unique situation.

Content courtesy of:  AlaskaUSA Mortgage

2. Will a lender allow a real estate short sale when the seller has some a good amount of equity?
If the home has some amount of equity, the lender may choose to continue with a traditional foreclosure proceeding to regain title to the property and dispose of it at a fair market price. Short Sales are generally discounted below fair market value, because the time value of money makes it more viable for the lender to sell it quickly rather than waiting through the redemption period, which in some states can be 6 to 12 months.  Banks are not in the real estate business and generally don’t want to own the home.  

3. What documents are necessary to proceed with a short sale?
The individual documents necessary to proceed with the short sale will depend on the lender. Typically, the lender will require hardship letter detailing the circumstances leading to a short sale. A signed, valid purchase and sales contract, preliminary HUD-1 settlement statement and a preliminary estimate of proceeds to the lender. There may be additional requests for more detailed information on the financial condition of the seller, ie; pay check stubs, bank statements, a personal financial statement and monthly budget assessment, amongst other things.

4. Will the seller’s credit be affected if they agree to a short sale versus a foreclosure?
While it is up to the individual lender to decide what to report, what often happens is the loan will report as “paid” on their credit report for a short sale, and sometimes with a reference that says “settled for less than originally owed”. A foreclosure will show as a default and can affect one’s credit for 3-7 years.  It is absolutely less damaging to have the short sale referenced than to have a foreclosure on a credit report.

5. Will a lender allow the homeowner to make a profit on a short sale?
Absolutely not. The lender is taking a loss when they agree to a short sale and they will not agree to let the homeowner benefit financially.

6. If a seller is in bankruptcy, will that affect the short sale of the property?
Absolutely, as most lenders will not consider a short sale if the homeowner is in the middle of a bankruptcy proceeding. Negotiating a short sale between the parties is considered a collection activity and such a negotiation is prohibited during bankruptcy proceedings.

7. Will the bank or lender require an appraisal on the home in a short sale?
Most lenders will hire a broker to develop a Broker’s Price Opinion (BPO) to determine the value of the home. Some will require that a full appraisal be submitted in the short sale package. The lender will need some formal assessment of the value of the home in order to make a decision as to an acceptable offer.  Settling on an agreeable price usually requires some negotiating between the end buyer and the lender and this can be an iterative process.
 
8. Are there tax implications for the short sale?
Much like the issue of credit reporting, the circumstances vary by lender. As a short sale represents a loss for the lender, they can report the amount lost as “debt forgiveness” to the seller. If a formal tax form 1099 is filed, the seller may be responsible for paying taxes on the amount of debt forgiveness. A CPA should be consulted by the homeowner in this situation.

9. Why would a lender agree to a short sale?
The lender doesn’t want to own the home because they are not real estate experts.  Foreclosure proceedings can be very time-consuming and costly.  The seller is relieved of the home they can no longer afford. The buyer is purchasing the home at an attractive price. A professionally executed short sale can benefit all parties involved in the transaction.

Request Additional Short Sale Information

Courtesy of:  Donna Sanford

In this interview, Lyn mentions the free reports can be found at https://www.annualcreditreport.com/. This central site allows you to request a free credit file disclosure once every 12 months from each of the nationwide consumer credit reporting companies.  AnnualCreditReport.com is the official site to help consumers obtain their free credit report.  You can also go to http://ftc.gov/freecreditreport for more information. 
The Fair Credit Reporting Act guarantees you access to your credit report for free from each of the three nationwide credit reporting companies every 12 months.

But last week, future deflation/inflation expectations changed… and investors in the Bond market started betting that the Fed will be successful in “creating inflation” via their Quantitative Easing plans, and will thus avoid continuing down a deflationary road. This was evidenced by the results of last week’s 5-Year Treasury Inflation Protected Securities (TIPS) auction, which saw investors buying TIPS at a premium since they were confident they’d be able to benefit from the increased inflation that should result from the QE2.

Of course, investors aren’t the only ones impacted by this. The media has already been chattering that the Fed has to be careful not to let inflation get out of control in the coming months and years. In fact, just last week, there was a headline explaining how another round of Quantitative Easing brings the risk of “unleashing the 1970s inflation genie.” Consumers who are looking to purchase or refinance a house should also take note of that possibility – since even talk of inflation can impact home loan rates negatively. After all, a rise in inflation would be bad for Mortgage Bonds and, as a result, for home loan rates.

The good news is that home loan rates are still near historic lows for the time being. If you or someone you know would like to see how you can benefit from the current situation, call or email us today.

Information courtesy of Alaska USA Mortgage

     Price aggressively.  You don’t have the luxury of starting high and making incremental price drops. Be competitive – price your home 5% to 15%  below comparable homes on the market.

     Stage it to sell.  Fall is one of the most beautiful times of the year, but it can also be hard on home maintenance. Make sure the front yard  is clear of leaves, clean out gutters and downspouts, and touch up paint. Incorporate tasteful fall decor. If you have a fireplace, make it the focal point of the room.

     Be flexible.  Bargain hunters are out in force in the fall, so don’t be discouraged by low-ball offers. See them as opportunities to negotiate. If you don’t want to come down on price, be creative, such as offering to pay for closing costs or repairs.

In a short sale, your mortgage lender agrees to let you sell your house and agrees to take the amount you get for it-not the full amount of the mortgage.

Short sales help in many ways. For one, during the process of negotiating for and holding the short sale, you can live in your house. Also, when you have a short sale on your home, you don’t walk away with as big of a black mark on your credit as you do with a foreclosure. Of course, even if you start out with a short sale, you may only be delaying the time before you end up foreclosing if your house doesn’t sell.

Now, you can’t just walk into your lender’s office and say you want to have a short sale on your house. You are going to have to prove financial distress, and you’re going to have to walk in with proof of what your house is actually worth now. You will also need to have a proposal, complete with total costs of the sale. Your Realtor will work with you to create these documents.

But even if you qualify, you may have a hard row to how with your lender at first. Many lenders are still resisting, even though the sales save them thousands of dollars on foreclosing costs, property maintenance, and sales costs. So be persistent if you have to – someone at your lender may well see reason.

Also, there’s a new federal program that is giving money to both lenders and homeowners to help the process along. This program will also help if you have more than one mortgage on your house. We have more information about the Home Affordable Foreclosures Alternatives program. Please contact us for more information.

So before you get into a panic over your situation, realize that yu do have some power here. You can come out of this with your family, your pride, and even some of your finances intact. Just take the lead and start negotiating – home short sales save lenders money, save homeowners heartaches, and save communities from the blight of foreclosed, empty houses!

Don’t worry about finding an educated, certified short sale Realtor to list your home. Just contact us and we’ll be happy to help you.

Article Source: William Bud Gragg Jr.

First-time homebuyers are contributing to an increase in demand for smaller and less expensive new homes, according to research from economists at the National Association of Home Builders (NAHB). Delving into data from the most recent biennial American Housing Survey, which was conducted by the Department of Housing and Urban Development and the Census Bureau in 2009, the study, “Characteristics of New and First-Time Home Buyers,” finds that 41 percent of the 8.4 million households who bought a home between 2007 and 2009 were first-time buyers.

The market share of first-timers was up from 35 percent in both 2005 and 2007. Although some of the demand was fueled by the initial version of the home buyer tax credit in mid-2008, which was specifically targeted to those buying a home for the first time, the upward trend is expected to continue as children of baby boomers – members of a generation that is larger than their parents’ – move into their household formation years in the period ahead.

First-time buyers for the two years of the study had an average age of 34, compared to 46 for those trading up.  The average income of first-timers was over $67,000, about 30 percent below the average household income of trade-up buyers of $97,000. About half of the first-time buyers earned less than $60,000.

The household size of both first-time and trade-up buyers has been declining, while single-person households have been on the rise. First-timers bought homes with an average market value of about $184,000, compared to more than $297,000 for trade-up buyers. First-time buyers bought homes averaging 1,874 square feet, significantly below the 2,549-square-foot home purchased on average by those trading up. Forty-six percent of first-timers bought homes smaller than 1,500 square feet.

The full report is available here. ]]> http://blogs.whidbeynewstimes.com/realestate/firsttime-homebuyers-stoke-demand-smaller-homes/35/feed/ 0 http://blogs.whidbeynewstimes.com/realestate/oak-harbor-real-estate-prices-compare-national-prices/31/ http://blogs.whidbeynewstimes.com/realestate/oak-harbor-real-estate-prices-compare-national-prices/31/#comments Wed, 22 Sep 2010 18:37:03 +0000 Rick Schutte http://blogs.whidbeynewstimes.com/realestate/?p=31  Coldwell Banker Real Estate LLC  released its Home Listing Report, a snapshot survey of U.S. four-bedroom, two-bathroom home listings, which found a $1.7 million difference between America’s most expensive and most affordable housing markets.  Newport Beach, Calif., led the list of most expensive real estate markets in America, with an average home listing price of approximately $1.83 million for property listings meeting the subject home criteria.  By contrast, America’s most affordable housing market was Detroit, Mich., with an average home listing price of approximately $68,000.

Known for its sandy beaches and historic Balboa Pavilion (established in 1906), Newport Beach, the most expensive market, has been the backdrop to numerous television shows including “The O.C.” and “Arrested Development.”  Detroit, the most affordable market, is the only major U.S. city that looks South to Canada.  Residents of the Motor City take great pride in Red Wings hockey and appreciate the city’s hard-working industrial and automotive history.

Home listing prices in Oak Harbor average $264,900 making Oak Harbor one of the more affordable markets in the nation.  Oak Harbor compares to the average listing price of homes in Coeur d’Alene, Idaho ($239,540) and Fairbanks, Alaska ($262,752). 

 The HLR is a great way for people who are curious about home listing prices to get a glimpse of various markets. By reviewing the report data, people can truly recognize the local nature of real estate.  Here in Oak Harbor, we are seeing the market stabilize and with the lower interest rates, it has become a very good time to be a home buyer.

Coldwell Banker Real Estate has released national real estate market reports annually for many years to provide consumers with insight into local market conditions,” said Jim Gillespie, chief executive officer, Coldwell Banker Real Estate LLC.  “Our study shows that homeownership in the United States is generally affordable, with nearly 30 percent of the studied markets averaging $200,000 or less for a four-bedroom, two-bathroom home – a size many buyers aspire to own. Today those who have the financial resources and a desire to move up to a larger home have a unique opportunity to take advantage of historically low mortgage interest rates coupled with comparatively lower prices and greater selection.”

2010 Coldwell Banker U.S. Home Listing Report – Highlights

America’s Most Affordable Markets: In addition to Detroit, America’s most affordable real estate markets are as varied in culture and trivia as they are in listing price ranges: 

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  • Grayling, Mich., is home to many top cross-country skiing destinations.  

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  • Sioux City, Iowa, has been recognized as a top U.S. economic community for areas between 50,000 and 200,000 people.   

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  • Cleveland, Ohio, is home to the Rock and Roll Hall of Fame.  

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  • Muncie, Ind., has gained notoriety for its successful prep sports programs. 

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  • Norfolk, Neb., is home to many healthcare and manufacturing companies. 

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  • Kansas City, Mo., is just behind Rome, Italy, for the largest number of fountains in a city (more than 200).  

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  • Canton, Ohio, is home to the Professional Football Hall of Fame.  

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  • Port Huron, Mich., features the School of Strings, which presents over 50 concerts a year with its Fiddle Club, Faculty and Student Ensembles.  

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  • Topeka, Kan., was once temporarily renamed “Topikachu,” in honor of the Pokémon franchise.

Homeownership Affordability: In total, there are 85 U.S. markets in the HLR with average reported listing prices less than $200,000. There are 183 markets (out of a total of 296 surveyed) that are less than $300,000. 

• Great Midwest:  Michigan has three markets on the most affordable housing list (Detroit, Grayling and Port Huron), and all 10 of the most affordable markets are in the Midwest.
• Low Monthly Payments:  Put in perspective, a $200,000 30-year-fixed mortgage at a 4.5% rate could cost a buyer a relatively low monthly mortgage payment of just above $1,000.  The average $68,000 four-bedroom, two-bathroom home in Detroit could average less than $350 a month.  
• Pacific Paradise: Out of the 10 most expensive real estate markets, six are from California: Newport Beach, Palo Alto, San Francisco, La Jolla, Pasadena and Santa Barbara. 
• Above $750,000: The survey included 25 housing markets where the average listing price for the subject home was more than $750,000, including 10 markets whose average listing price exceeded $1 million.   

TABLE 1 – TOP 10 LISTS

The top 10 most expensive and most affordable real estate housing markets in the 2010 Coldwell Banker U.S. Home Listing Report are:

TABLE 2 – U.S. HOME LISTING REPORT

For all markets included in the U.S. Home Listing Report, below are the most expensive and most affordable markets by state (as well as Puerto Rico):

The US Government Accountability Office (GAO) released a report in July 2010 entitled “Home Ownership Preservation”. It states that: “The current foreclosure crisis has provided persons who may perpetrate mortgage foreclosure rescue and loan modification schemes with unprecedented opportunities to profit from homeowners desperate to save their homes.

The GAO report says there are two main types of foreclosure rescue and loan modification scams: advance-fee loan modification schemes and sales-leaseback schemes, with advance-fee schemes being the most common.

The Federal Trade Commission (FTC) reports on a new twist on the advance-fee scam that’s showing up this year, a “forensic mortgage loan audit.” The scammer offers to find regulatory violations in your original mortgage that will help you avoid foreclosure or even cancel your loan. There’s no evidence that anyone has ever succeeded in modifying their loan using this approach.

Here are some “red flags” that at-risk homeowners should watch out for when looking for foreclosure help, courtesy of the FTC. You should avoid any business that:
• guarantees to stop the foreclosure process – no matter what your circumstances
• instructs you not to contact your lender, lawyer, or credit or housing counselor
• collects a fee before providing you with any services
• accepts payment only by cashier’s check or wire transfer
• encourages you to lease your home so you can buy it back over time
• tells you to make your mortgage payments directly to it, rather than your lender
• tells you to transfer your property deed or title to it
• offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
• offers to fill out paperwork for you
• pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

courtesy of MilitaryAvenue.com

VA? FHA? Conventional Financing? ARMS? 15 Year? 30 Year? What Down payment? Points? Buy Down? Closing Costs? Yikes, what should I do???

There are many opportunities and questions in today’s real estate market. I believe because there are also so many unknowns and choices that consumers are overwhelmed and fearful of making a decision. They don’t want to make the WRONG decision.

Our responsibility is to help you make the decision that is RIGHT for you. We are passionate about this. We want what is best for you. As professionals, we have been guiding home buyers and sellers through this maze for a long time. We are continually educating ourselves on the latest laws, trends, marketing ideas, and technology so that we can answer your questions and point you in the right direction.

If you are a buyer with questions or frustrations, let us help you with some answers. If you are a seller and need some counsel or want to know our marketing strategies, give us a call or email or visit our website. We consider it an honor to be of help to our neighbors and friends. Thank you

During today’s economic times though, most of our homeowners that purchased a home in the last 3 -4 years are upside down with their mortgage. There is more money owed than the house can sell for thus creating a predicament for the homeowner. One of the solutions is to allow the bank to foreclose on the home, drastically affecting credit ratings, etc. Another possible solution is to work out a compromise with the lender and sell the home for less than what is owed. These are commonly known as a short sales.

On Whidbey Island today, we are experiencing quite a few short sales. It is a large segment of our real estate market at this time. Anyone considering purchasing a home would want to consider short sales. There are some unusual circumstances and time lines required with short sales and they should be entered into only with a knowledgeable agent as your guide.

View a list of Whidbey Island Short Sales and contact a qualified agent today.

- Current provisions from HAP:
*Reimburse the applicant for part of your loss from selling the
home.
*Assist the applicant if you don’t receive enough proceeds from the
sale of the home to pay off the mortgage
*Buy the applicant’s home by paying off the mortgage (not available
for overseas applicants).
*Help the applicant if the mortgage is in default.

- Individuals eligible for HAP now that the Economic Stimulus Package is
signed:
*Wounded warriors with at least a 30% disability rating relocating
for medical treatment or medical retirement
*Uniformed Service Members under PCS orders to a duty station
outside a 50-mile radius of their current station. The primary residence
must have been purchased before July 1, 2006 and sold between July 1, 2006
and Sep. 30, 2012.
*Uniformed Service Members, & Federal Civilians including NAF
(nonappropriated
funds) employees who are affected by BRAC (Base Realignment & Closure),
without tying the decline in home values to BRAC.
*The Spouse of a member of the Armed Forces or a civilian employee
of the Department of Defense or the United States Coast Guard if – the
member or employee was killed in the line of duty or in the performance of
his or her duties during a deployment on or after September 11, 2001, in
support of the Armed Forces or died from a wound, injury, or illness
incurred in the line of duty during such a deployment.

This video discusses and compares the differences of interest rates. Please feel free to call us with any questions or visit our website for further information.