Posts Tagged ‘buying a home seattle’

I have fielded many questions about the effect that the Cap and Trade Bill and the recent changes to Health Care will have on home owners. 

Just This week I received this e-mail from the Washington Association of Realtors in an attempt to clear up a lot of the misinformation that is out there.

Is The Rumor Fact or Fiction?

4/23/2010

A couple rumors are circulating that are causing unnecessary concern among our members (and here is a hint, both of these rumors are false)

Rumor Number One

The new "Cap and Trade" Climate change bill in Congress requires a homeowner to license their home prior to selling it.

FICTION!
There is no requirement in the law to license a home before your clients are allowed to sell their home. In addition, there is not a requirement to make a home more energy efficient before it can be sold.

Want Proof? Here you go…

Rumor Number Two

The recently-passed health care legislation imposes a 3.8% tax on homes sales.

FICTION!
An article has been circulating that mischaracterizes and overstates what is actually in the legislation. Here are the facts.

There is a new 3.8% Medicare tax for "High Income Filers" that goes into effect January 1, 2013 The tax is on unearned income and will apply ONLY to single filers with more than $200,000 of Adjusted Gross Income (AGI) and joint filers with more than AGI of $250,000. Unearned income includes interest, dividends, capital gains and net rents.

Keeping in mind the income limitations above, real estate income that will be affected for high-income filers include:

• Sale of a primary residence: If the gain from the sale of the property is below $250,000 (individual)/ $500,000 (couple) NO tax will have to be paid on the gain. The new Medicare tax would only apply to any gain realized over the $250K/$500K existing primary home exclusion that will bring the filers AGI over the $200K/$250K limits.
• Second Home/Investment property: The additional 3.8% tax will apply to the portion of the gain realized on the sale of a second home or investment property that will bring the filers AGI over the $200K/$250K limit.
• Rental Income: The portion of net rental income that exceeds the $200K/$250K AGI limits will be subject to the new 3.8% tax.

Want more info? Download NAR’s Q&A

Rumor Number Three

If you send $1,000 to this Nigerian banker, he will transfer $21 million dollars into your account.

Actually, we don’t know for sure on this one, but we do know the top two are false rumors!

Do your friends and co-workers a favor and pass this email along to them if you think they have received bad information.

I hope this helps clear up some of the confusion

Give me a call if you need help.

———————————————-

Rob Graham, Seattle Home Buying Specialist

Windermere Real Estate

206-321-6349

robgraham@windermere.com

www.robgrahamrealestate.com

Popularity: 2% [?]

Ok, so we all agree that the end is in sight if not passed.  The economic climate is improving and home prices are bouncing around the bottom.  Winter is traditionally a great time to buy a home in Seattle with less competition and generally lower activity.

 Right now is a unique opportunity for some, but not for all. 

So who should be buying a home right now?

Here is the unique situation we are currently in:

• Homes overall in Seattle have come down 22% since the highs of 2007
• Interest rates while not at their lowest are still WELL below there 20 year average and near record lows
• First time home buyers as well as Repeat buyers who have owned for more then 5 years are in line for an unprecedented tax credit of $8,000 and $6,500 respectively.

So who should be buying in this environment and who shouldn’t?

As a general rule, anyone upgrading is in great shape. 

If you are currently renting or are in a smaller home and plan on buying something

more expensive, now is the time to pounce!

Why?  If you are a first time home owner you are not likely to see a better scenario.  If you are upgrading, you will see less profit from your current home. but the discount you are getting on the larger home, more then offsets the loss you will take on your current home.  This is even further exaggerated when you consider the tax credit and low interest rates.

If however you are downsizing or considering a move to a smaller home, now may be the worst time to make a jump.  If you can avoid it consider staying put or renting out your current home to avoid taking a loss until prices rebound.  Be advised however that if you are expecting a quick jump similar to what we have seen in the stock market, you will be disappointed.  Home prices should not get back to their 2007 prices for years to come. 

Plan accordingly, good luck, and give me a call if you need anything.  Happy New Year!

———————————————————————

Rob Graham, Windermere Real Estate

Your Home Buying Expert

206-0321-6349

robgraham@windermere.com

Popularity: 3% [?]

If you are thinking of buying a home in Seattle in the near future, you are no doubt wrestling with trying to figure out how to come up with the money to be able to make your move.  Fortunately there is help.  A Mortgage representative I have worked with in the past and really trust is offering a seminar on how to budget yourself to a new home.  Here is the e-mail that I received from them:

Join us September 15^th  and October 20^th for the final installment of our 2009 Family Finances Series, “Budgeting in Real Life” with Mindy Crary, MBA, Certified Financial Planner®. The course will identify the many pitfalls that make money-management in everyday life such a challenge, and provide realistic solutions to stretch your dollars a little further.  We all have clients who are struggling to save up for their down payments or simply want to be more financially savvy – please extend this invitation to them!

To register for the course call: 206.789.8629 or email: Jessica@salmonbaylending.com

Both sessions will be held from 7:00-8:30pm at Salmon Bay Community Lending:

1502 NW 52^nd St.

Seattle, WA. 98107

Suggested donation: $10

Space is limited, so reserve your seats early!

Ruby Grynberg

Chief Loan Officer

Salmon Bay has offered a variety of classes in the past on many financial topics.  Feel free to contact them if you have any interest in finding out what else is available.

————————————————

Rob Graham, Accredited Buyer’s Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 6% [?]

With the $8,000 first time home buyer tax credit set to expire November 31st, and congress on recess,  I took it upon myself yesterday, to send an e-mail out to both of my senators, my representative and yes Barack Obama himself. 

Here is my e-mail.

—————————————–

Dear xx,

My name is Rob Graham. I am a Realtor in Seattle WA. I wanted to take a moment to write you a note about the $8,000 First Time Home Buyer Tax Credit.

We all agree that our country’s current economic crisis was instigated and continues to be partially fueled by our housing crisis. I thought you might appreciate hearing directly from the horses mouth the dramatic impact the first time home buyer credit has had. Since the credit was announced, I have seen a great increase in first time home buyers. Many were waiting on the sidelines and the credit was the impetus they needed to feel confident jumping into the market. As a result, first time home buyers make up a significantly larger portion of housing buyers this year then they have traditionally.

With the tax credit set to expire November 31^st, I wanted to make a plea that it be extended and expanded. I know that when the credit was first discussed in both the house and senate, there was momentum to make it a $15,000 credit for all home buyers. In committee, it was reduced to a $8,000 first time home buyer credit. Imagine the impact the credit could have if it was available to all home buyers and not just first time home buyers who only make up 25-30% of the housing market.

I am also aware that there were several proposals being debated on the floor of both houses in recent months to either extend, or expand the tax credit. I was disappointed to see that with focus shifting to healthcare no such bill gained traction before the recess.

As we move into fall I can only strongly urge you to do all you can to expand and extend the tax credit. It is my fear that the small glimmers of hope we are seeing in the current market will only dwindle to stagnation in the months to come if we are unable to do so.

Thank you for you consideration,

—————————————-

I have to say it feels really powerful to be able to reach out and send a message to the most powerful people in our state and country. 

I highly encourage you to do the same on any topic you feel strongly about. 

Here are the links for you:

President Obama:

http://www.whitehouse.gov/CONTACT/

Senator Cantwell:

http://cantwell.senate.gov/contact/index.cfm

Senator Murray:

http://murray.senate.gov/email/index.cfm

To write to your representative, go here:

https://writerep.house.gov/writerep/welcome.shtml

Seriously, so few people actually write to elected officials that you are much more powerful when you do.  Use the resource wisely, but by all means don’t sit on your hands.  You elected these people after all.  Let them know what you think.

————————————————-

Rob Graham, Accredited Buyers Representative

Windermere Real Estate

robgraham@windermere.com

206-321-6349

Popularity: 5% [?]

I have been getting this question a lot lately, so I thought I would throw out a list of questions for you to rattle around in your brain if you are just getting started.

These are questions that are good to toss around at the dinner table with all the family members involved in the move. 

What Neighborhoods do you want to consider?

Things to consider: schools, commute, parks, proximity to shops, pet friendly, parking.  Seattle is a treasure trove of differing neighborhood personalities.  Some will be drawn to the quiet and sleepy and some will be drawn to the up all night neighborhoods.

What type of home?

Single Family, Townhouse, Condo, Co-op, House Boat.  Consider Condo’s Co-ops and house boats all tend to come with dues.  So do some town houses.

Busy Street?

Most are closer to shops and bus lines but they do tend to be nosier.

How much work are you willing to do to the home after you move in?

Does it need to be in pristine condition, or are you willing to swing a hammer?  Most homes that need a facelift are cheaper, but don’t overshoot your budget or time.

How much space do we need?

Is your family growing?  Is someone going off to college in the next few years?  Might mom need to move in in the next few years?  How often does family visit?

Design? 

This one is harder to know before you go and preview a bunch of homes.  One style will start to tug at your hears strings though and others will repel you.

What can you realistically afford?

Start with your current monthly cost for housing and realistically estimate what you can swing for your total monthly payment.  Take that number to the bank and find out what it translates to for a mortgage.

How long do you plan on being in the home?

The average length of stay in a home is 7 years.  Less for first time home buyers.  Don’t get into a serious fixer is you are moving in three years. 

It isn’t an exhaustive list, but a great place to start.  Begin to narrow down your focus then give me a call and I’ll set up a day where we can go out and take a look at some of the homes that match your ideas. 

Talk to you soon,

———————————————————————-

Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

Popularity: 3% [?]