Archive for March, 2009

I spoke to Laura Rench of Bank of America today to see if there are any special programs available for Seattle home buyers through Bank of America.  Laura is an account specialist who deals specifically with special home loan programs. 

Laura informed me in fact that there is a program that goes by the name “Neighborhood Champions” that is specifically geared toward helping, teachers, doctors, dentists, police and firefighters looking for home loans.  The details of how the loans are structured are fairly complicated and vary greatly depending on your individual situation such as your credit score and down payment. 

The program may however offer a lower interest payment, and allow you to qualify for a home loan with a somewhat lower credit score then other programs.  

Who Qualifies:

• Full and Part time School Employees, including teachers, counselors, custodial staff, administrators, etc.
• Doctors
• Dentists
• Law Enforcement Employees
• Fire Fighters

For details of the program and to find out if you qualify, you need to contact Bank of America directly.  I am sure Laura would be glad to answer any questions you have. 

Laura Rench

Bank of America, Account Specialist

206-686-8188

laura.rench@bankofamerica.com

Before I get a bunch of e-mail, let me say that I have no affiliation with Laura or Bank of America, aside from using them for my personal banking.  It would be illegal for me to receive any consideration for mentioning them directly including payment of any kind or special consideration with future client referrals.   I am only mentioning this as something that may benefit some of you.  The more information is out there the more likely you are to find it. 

Hope it helps.  Let me know if you need anything.  I could use an additional client or two to round out my current roster.  Spots are filling up fast so don’t wait to call.

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Rob Graham, Accredited Buyer’s Representative

Windermere Real Estate

206-3211-6349

robgraham@windermere.com

Popularity: 5% [?]

Wedgwood, Meadowbrook, Bryant, Ravenna, View Ridge, Maple Leaf?   What’s the difference?

You’ve heard the old expression, if you don’t like the weather wait ten minutes, it will change.  Well a similar sentiment holds true for Seattle Real Estate.  If you don’t like what you see, travel ten blocks in any direction and it will change.  Seattle is a myriad of little neighborhoods, each with its own feel and style.  Housing prices reflect the unique culture and diversity of a specific neighborhood.  Prices and style can change dramatically in just a few short blocks.

To illustrate my point I have dissected the inventory in North East Seattle.  This happens to be where my office is located and one of the most misunderstood areas of Seattle.  Often I tell people my office in in Wedgwood, at they stare back with a blank expression.   I usually need to tell them I am just north of U. Village before the light bulb goes on.

There are many distinct neighborhoods in NE Seattle.  Each has its own charm and therefore it’s own price point.  Here are the details on homes sold in some selected neighborhoods to illustrate my point.

Pretty Amazing.  A difference of nearly $290,000 in value and more then two months in the amount of time to sell a home between neighborhoods that are all literally within walking distance of each other.

The moral of the story is if you have your heart set on a specific neighborhood, be a little open to the surrounding neighborhoods as well.  It can make a dramatic difference in what you pay for your home.

Let me know if there is anything I can do for you.  I’d love to be your buyer’s agent.

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 5% [?]

Hey Seattle home buyers, just a quick tip today.  Here are four must have item if you are going out to look at homes. 

1.  A digital camera – If you don’t have one of your own you can use mine, but it is a great tool to have with you.  Internet photos of many homes are not representative.  It is also very easy to forget details of a home if you are looking at 5 homes in an afternoon.  Take a quick picture and you can sit down later and view them at a pace that is convenient to you.  It is also a great idea if you are heading out to open houses but your hubby can’t.

2. A tape measure – Before you go on your tour, take a second and measure the size of the larger pieces of furniture that you will be taking with you.  Write them down on a pad and as you go through homes.  Bed, couch, entertainment center, and TV are the typical items.   The last thing you want to do is find the home of your dreams and then on moving day discover that your aunt’s antique doesn’t fit in the out cove you had hoped. 

3.  A flashlight – You may want to poke your head in a crawl space or attic.  Often there isn’t sufficient light in these locations.  Bring your own flashlight.  If you see things such as water damage, evidence of infestation, or lack of insulation, you are in a lot better position to negotiate on a home.  You may also just find something that makes you want to walk away all together.

4. A pair of needle nose pliers – I can’t tell you how many times a buyer will ask me if there are hardwood floors under the carpet.  The best way to find out is to pull up a corner of the carpet and look at what’s underneath.  You can do this in a closet or behind a couch.  Seller’s generally don’t care so long as you put the carpet back when you are done.  After all, they do want people to show enough interest in the home to poke around a little.

So there you have it.  These small items can fit in a purse or jacket and can provide you with a lot more information about the home that isn’t always obvious from the listing.

If there are specific homes you have been considering taking a look, at give me a call.  I can set up a tour for you at no charge and at a time that is convenient for you.  I am always looking to pick up new clients so don’t hesitate to call.

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 2% [?]

Many Seattle home buyers may be surprised to find out how few protections the basic purchase and sale agreement has for the home buyer.  A residential purchase and sale agreement in the Seattle area is pretty basic.  The basic purchase and sale agreement includes information about the offer you are making to purchase the home.  It details earnest money, close date, identifying information for the buyer, seller and property, but no protections for your money. 

To properly protect your money you need to include a Financing Addendum. 

A Financing Addendum is an optional two page document that is designed to spell out how you plan on paying for the home and under what conditions you can get your earnest money back if your financial situation changes.

If you are unfamiliar with what earnest money is check out a recent post:

Earnest Money: How much should a Seattle Home buyer offer?

The financing addendum gives some assurance to the seller by letting them know how you intend to purchase the home.  It may say for example, that you intend to obtain an FHA loan and put 3.5% down as a down payment.  It will also let the seller know that you will apply for the loan (if you haven’t already) in a certain period of time.  

For the buyer however there is an additional protection.   If during the time prior to closing, if you find out that you no longer qualify for the loan you specified, you can notify the seller in writing and not be obligated to make the purchase and not loose your earnest money. 

Lets say for example that you go to a bank and get a pre-approval letter.  The pre-approval letter is based on the situation right now.  But in reality no one cares what you qualify for right now.  What is important is what you qualify for at the time of closing.  So if you haven’t locked the loan and make an offer on your dream home, you may come to find out that interest rates have skyrocketed and you no longer qualify for the loan.  In this situation, if you have the protection of the financing addendum in the purchase and sale agreement, you are not on the hook for anything. 

Keep in mind that the financing addendum is not designed to protect you from your own sloth.  You are obligated to make a good faith effort to obtain the financing you indicated you would.

One additional protection the financing addendum offers is if the appraisal that the bank orders does not justify the loan, the seller may need to reduce the price of the home or make other compensation so that the home is able to sell. 

In short, always include a financing addendum with your offer on a home.  Just like an inspection addendum and a title addendum, not having one can put you in an bad position.

Let me know if you need anything.  I would love to be your agent.

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Rob Graham, Accredited Buyer’s Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 39% [?]

The National Association of Realtors released numbers for February today that suggested that housing sales numbers for existing home are way up, in particular in western states. 

Existing home sales, as the name implies, reflects sales of homes that are not new construction.  This makes up the vast majority of homes available for sale. 

• The country as a whole saw an increase in February of existing homes sales of 5.1%  as compared to January. 

I would say this is a product of two things.  First of all the first time home buyer credit encouraged some first time home buyers to get off the sidelines and start buying up some of the lower priced inventory.

Also, sales were so low in December and January that a bump was inevitable.  No one likes to shop or list their home during the winter months.  Weather and the holidays keeps many buyers at home.   This year we had the added feature of a recession and a new president being sworn in.  All in all, buyers were waiting to see what was going to happen and started shopping again in February.

• Sales in the West were up 30% February ‘09 compared to February ‘08.

This is a dramatic increase.  Things had already started slowing down last year but the big decrease in sales did not occur until March 2008 here in Seattle.  The increase of 30% is big. 

• Distressed properties made up 45% of sales in February nationally.

Again a sign of more bottom feeding.  Buyers were willing to start shopping again but only if the homes were at a discount.  Homes priced at market value are still having some difficulty moving.  This is typical of the first signs of a recovery.   People are willing to take a chance on bargain homes but not on the higher priced inventory.

• First Time Home Buyers made up half of all home sales in February.

Want more evidence that the first time home buyer’s tax credit is working?  Here you go.  First time home buyers are typically 20-25% of the market.  Not so in February.  Lured by the $8,000 first time tax credit, first time buyers came off the sidelines and started bargain shopping in February.

All things considered, there is a lot more activity now then just a few months ago.  People are bargain shopping, but at least people are shopping.  It is still not the best time to be a seller, but for buyers, there are great loan options, a tax credit and low interest rates to be had.  

Let me know if you want to get started.

I am always looking to add great clients like you to my roster.

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Rob Graham, Accredited Buyer’s Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 3% [?]