Eastside Real Estate Working-for-you!

A Big Thank You From A Client!

By Greg Perry
www.425Realty.com

 I first met Preston and Rose at their home in January.  Preston had secured a job on Bainbridge Island and was commuting home on the weekends.  They wanted their family unit together and had decided to sell their home.

Preston, who had done some local area building projects did a fine job on their home remodel, but typically, there were a few unfinished corners and projects that needed to be done.  We chatted about the market, and the punch list to complete before listing and Rose and Preston went to work.

I couldn't ask for better sellers.  They worked hard to put their house in its best possible condition and we set a price for the market.  Of course, I had concerns as their home was located in rural Snohomish County for viewing traffic as market conditions were tough. 

Listing day finally arrived.  Marketing photo were taken and we placed their listing to over a dozen Internet sites to maximize exposure.  We started attracting 4-6 viewings a week!  Right at 30 days time, we received a winning offer.  The offer was very close to our price and our happy Seller's accepted!  The remaining details went well, including the buyer's inspection.

I kept in touch with Rose after the sale, as she was looking for a home in their new location.  They were just successful in the close of their new home.  Rose sent me this wonderful note:

Subject: You Are Awesome!

I just wanted to finally let you know that you are awesome! We finally get the keys to our new home here on the island and we could not have gotten a better deal if it had not been for your guidance when selling our home in Snohomish. It really pays to sell a home before you buy so that you have that education by fire. It helps to learn the proper negotiation skills in order to broker a better deal later. We could not have been in the driver seat as fast as we where and hit the market just right if it had not been for your expertise in forecasting our sale. Thank you so much for your follow up call after we sold and during our negotiations with our new purchase it gave me the extra confidence to stick to our guns and it really paid off even though you where not our purchasing agent it is always good to have a second opinion and you went above and beyond the call for those phone calls.

So what I am trying to say is THANK YOU! You gave us the tough facts in this hard economic time. When so many people are losing there homes and it is not the best selling market you turned it into an awesome opportunity even at out modest market , it pays to listen and work with you!

Thanks for everything .... " Your best client of the year!"

Rose and Preston Michaels

Thank YOU Preston and Rose.  I enjoyed working with you!

Why All Home Buyers Need An Inspection!

Greg Perry
Eastside Realtor

If you walk through enough old houses, you'll eventually run into most anything that a past home owner did to the electrical, plumbing and general construction of the house.  Even the best of homes -- on the surface-- have strange things done to them in the crawl space and attic.  Here are a few bizarre examples for your viewing pleasure!

Home Depot had a sale on yellow wire nuts!

 
Redneck junction box

 

 
A receptacle is highly overrated, especially close to a burner!

 

House comes complete with pantry storage for grits, ascetone and tools!

 

 
Need a creative dryer vent?  Just do-it!

 

  
Ok, don't have that Nike box?  Just tap that dryer vent into the heat escape vent of your water heater!

 

More bizarre photos to come on another day!

 

A Picture Of Opportunity!

 

Low Interest Rates!

   

$8,000 Tax Credit!

 

 

Home Prices Down!
(Houses are on SALE!)

 

Seller Motivation Up!
Home Selection High!

Owning your own home or condo may be easier than you think! 
Myth:  Minimum Down Payment Required 10-20%  Fact:  0-3.5%
Myth:  Minimum Credit Score 700  Fact:  580-620
Myth: Money supply limited  Fact: Money supply PLENTIFUL!

Greg and Brian regularly hold absolutely free, no strings attached classes for FIRST TIME BUYERS.   We review the home buying process from top to bottom to completely educate our buyers to position themselves for their best chance for success.  To attend a 425Realty.com FIRST TIME BUYER class, email or call Greg or Brian today.  gregperry@working-for-you.com or brianperry@working-for-you.com

 

 

On your mark.....get set.....RECOVER!

Yesterday, I attended a "cine-meeting" sponsored by Wells Fargo in which they produced a very good quality presentation from industry leaders and real real estate trainers.  Over 500 real estate agents watched the Wells Fargo presentation on the big screen at the Pacific Place Theater in Seattle.  The theme was up-beat.  Money is rapidly returning to the markets.  We are set for real estate recovery.

Annecdotally, we're hearing stories and seeing signs of increased activities:

• Title companies have been slammed with purchase title orders in the last two weeks.
• First time buyers are inquiring on the $8,000 tax credit.
• Offers are being written about the region.
• Stories of multiple offers are surfacing regularly.
• Conforming loan limits have raised.
• Jumbo rates are falling.
• Federal funds are flooding into Washington banks and the banks are now contacting builders to suggest buy down programs to move existing inventory.  Buchan homes currently have a 2/1 buy down program starting at 3.75% on jumbo products!  We're hearing of other builders offering <5% fixed rate loans.
• We're hearing rumors that Nehemiah Down Payment Assistance programs are coming back.
• Fannie Mae forbids lenders from grabbing Realtor commssions on short sales on Fannie Mae backed mortgages.
• There has never been more focus on real estate recovery in both Washington DC and Olympia.

On the National economic front, the stock market staged a stunning rally this week, mostly fueled on the news that Citigroup, one of the most beleagured mega banks announced a profit and is claiming they dont' need another government infusion of capital.  Wells Fargo claims they have plenty of money to loan.

Make no mistake.  Nationally, real estate caused our economic turmoil, real estate will lead the way out to recovery.   This recovery will start with FIRST TIME BUYERS!  In our region, this could be any home under $600,000.  This will free up Sellers to make their relocation move or their move up purchase.

What does this mean?  If you are a FIRST TIME BUYER, don't wait.  You have selection, Seller motivation, low interest rates and an $8,000 tax credit working for you.  You'll have your best success being ahead of the masses!  Real Estate is currently on SALE!  

Greg and Brian regularly hold absolutely free, no strings attached classes for FIRST TIME BUYERS.   We review the home buying process from top to bottom to completely educate our buyers to position themselves for their best chance for success.  To attend a 425Realty.com FIRST TIME BUYER class, email or call Greg or Brian today.  gregperry@working-for-you.com or brianperry@working-for-you.com

2009 FHA Loan Limits in Washington State

The 2009 FHA Loan Limits for Washington State have been published.  Residential loan limits in King County have gone up to $567,500.

 We are also seeing dramatically increased activity in buyer traffic and offer activity since the $8,000 New Buyers Tax Credit was enacted a few weeks ago.

 

County Name	Single Family	Duplex	Tri-plex	Four-plex
ADAMS	$271,050	$347,000	$419,425	$521,250
ASOTIN	$271,050	$347,000	$419,425	$521,250
BENTON	$275,000	$352,050	$425,550	$528,850
CHELAN	$342,700	$438,700	$530,300	$659,050
CLALLAM	$383,750	$491,250	$593,800	$738,000
CLARK	$418,750	$536,050	$648,000	$805,300
COLUMBIA	$271,050	$347,000	$419,425	$521,250
COWLITZ	$271,050	$347,000	$419,425	$521,250
DOUGLAS	$342,700	$438,700	$530,300	$659,050
FERRY	$271,050	$347,000	$419,425	$521,250
FRANKLIN	$275,000	$352,050	$425,550	$528,850
GARFIELD	$271,050	$347,000	$419,425	$521,250
GRANT	$271,050	$347,000	$419,425	$521,250
GRAYS HARBOR	$271,050	$347,000	$419,425	$521,250
ISLAND	$381,250	$488,050	$589,950	$733,150
JEFFERSON	$437,500	$560,050	$677,000	$841,350
NON-METRO
KING	$567,500	$726,500	$878,150	$1,091,350
KITSAP	$475,000	$608,100	$735,050	$913,450
KITTITAS	$328,750	$420,850	$508,700	$632,200
KLICKITAT	$271,050	$347,000	$419,425	$521,250
LEWIS	$271,050	$347,000	$419,425	$521,250
LINCOLN	$271,050	$347,000	$419,425	$521,250
NON-METRO
MASON	$310,000	$396,850	$479,700	$596,150
SHELTON, WA (MICRO)
OKANOGAN	$271,050	$347,000	$419,425	$521,250
PACIFIC	$271,050	$347,000	$419,425	$521,250
PEND OREILLE	$271,050	$347,000	$419,425	$521,250
PIERCE	$567,500	$726,500	$878,150	$1,091,350
SAN JUAN	$593,750	$760,100	$918,800	$1,141,850
SKAGIT	$373,750	$478,450	$578,350	$718,750
SKAMANIA	$418,750	$536,050	$648,000	$805,300
SNOHOMISH	$567,500	$726,500	$878,150	$1,091,350
SPOKANE	$271,050	$347,000	$419,425	$521,250
STEVENS	$271,050	$347,000	$419,425	$521,250
THURSTON	$361,250	$462,450	$559,000	$694,700
WAHKIAKUM	$271,050	$347,000	$419,425	$521,250
WALLA WALLA	$271,050	$347,000	$419,425	$521,250
WHATCOM	$375,000	$480,050	$580,300	$721,150
WHITMAN	$271,050	$347,000	$419,425	$521,250
YAKIMA	$271,050	$347,000	$419,425	$521,250

Real Estate Stimulus Package Becoming Clearer

While it looked for awhile that we may be getting a $15,000 tax credit for home buyers, Congress has  settled upon an $8,000 tax credit.

This just in from the National Association of Realtors:

1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation, with Geitners Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.

So for now, higher conforming loan limits, an $8,000 tax credit, lower interest rates and an increase in eligible loans for investors.  The bill passed the House today.  Vote in the Senate is pending.  More will come.........

Housing Stimulus Changes?

Developing........

The AP is reporting that the House looks to cut the housing tax credit back to $7500.

Working to accommodate the new, lower overall limit of the bill, negotiators effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home, these officials said. The agreement would allow taxpayers to deduct the sales tax paid on new car purchases, but not the interest on loans for the same vehicle 

More On Real Estate Stimulus......

Today, the Senate approved an $838 billion economic stimulus bill that includes a $15,000 home buyer tax credit.  Also, Treasury Secretary Geithner unveiled a multi trillion dollar financial stability plan that includes $50 billion for foreclosure prevention programs.

In play in the Senate package are higher loan limits for Fannie Mae, Freddie Mac and FHA.  The government is also looking to drive mortgage interest rates lower.

The House version already restores the upper limits for Fannie, Freddie and FHA loans programs to $729,750 in the higher cost housing areas, where they stood for much of 2008.  The House version also eliminates the repayment requirement on an existing $7500.00 tax credit that is scheduled to expire on July 1.  The Senate version would go farther, increasing the tax credit to $15,000 allowing all home buyers purchasing a principal residence within a year of the bill's enactment to claim it on their 2008 or 2009 returns.

The House and the Senate now must negotiate the two versions for a final bill.  It looks clear that both bodies of Congress are intent on passing a home buyer tax credit.  We'll be watching to see what the finished bill looks like.

More Real Estate Stimulus News.........

Some clarification on real estate stimulus issues from Washington Realtors:

Last week, the US House of Representatives passed the American Recovery and Reinvestment Act (H.R.1). This bill has some key provisions that will stimulate the housing market:

• It will restore FHA, Fannie Mae and Freddie Mac to 125 percent of median home prices - up to $729,750
• It would eliminate the repayment provision for the $7,500 first time home buyer tax credit
• It expands tax-exempt housing bonds

Two days ago, the Senate approved an amendment to their bill that offers up to a $15,000 tax credit to people that purchase a home in the next year.  The credit would apply to anyone, not just first time homebuyers and you would not need to repay the credit.  The credit is based on 10% of the purchase price of the home and the credit is spread over two years.  So for example, if you buy a house with a purchase price of $300,000, you would qualify for the maximum credit of $15,000.  The first year you claim the credit, you receive $7,500, and you would receive the remaining $7,500 the next year.

Senator Patty Murray Introduces Housing Amendment

In addition to supporting the $15,000 credit, Senator Patty Murray (D) Washington, has introduced her own amendment to the Senate Stimulus Bill relating to the FHA and conforming loan limits. Specifically, Murray's amendment:  

• Ensures that the 2008 FHA mortgage limits and conforming loan limits do not decline during calendar year 2009.
• Provides discretion to the Secretary of HUD and the Director of the Federal Housing Finance Agency (FHFA) to raise loan limits in sub-areas, up to the conforming ceiling for high cost areas.  
• Temporarily increases FHA's Home Equity Conversion Mortgage (HECM) limit to $625,500 for 2009.  

National Association of Realtors 4 Point Stimulus Package Proposal

The NAR 4 point plan.

The most recent economic stimulus bill, the Emergency Economic Stabilization Act, was a good first step towards stabilizing our nation’s economy.  Unfortunately, a number of the Act’s provisions have not proven to be as useful at stabilizing the nation’s housing markets as was first thought.

Congress may consider a second economic stimulus bill this month.  If they do, there are a number of changes that could help to provide more stability to the nation’s real estate markets which most agree is a necessary step towards recovery.

NAR has urged Congress to include the following provisions in any future legislation:

• Make the $7500 tax credit available to all purchasers and eliminate the repayment requirement.  The credit’s limited availability and required repayment terms have severely limited the credit’s appeal to potential homebuyers.  As a result, the credit has not been widely used or proven effective at stimulating sales. 
  
• Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent.  New rules for 2009 would significantly reduce the FHA, Fannie Mae and Freddie Mac loan limit from their 2008 levels. Now is not the time to limit the availability of affordable mortgages. 
  
• Get the Emergency Treasury bank relief program back on track by targeting more funds to mortgage relief efforts and increasing efforts to mitigate foreclosures.  Don't just give the banks unrestricted cash. Make the program work to improve mortgage and housing markets as it was originally intended.
  
• Permanently bar banks and banking conglomerates from engaging in real estate brokerage and management.  The banks have proven they have enough to do to simply properly manage their current lines of business.  Do we really want them to manage the home buying process?  Imagine what could have been the situation now if they already had the added ability to engage in real estate sales.

I think these steps make a lot sense and will help get housing moving!