Posts Tagged ‘homes for sale seattle’

A client of mine, in love with the amazingly low interest rates, locked their loan for 55 days.  We had submitted an offer on a home they liked but had not yet completed the inspection.  As we contemplated an inspection response, the question arose, “If we don’t move forward on this home, do we lose our loan lock?”

Locking the loan is the banks assurance that if you close on a home within the lock period, provided that the home meets the qualifications that you have been approved for, you are guaranteed specific terms of the loan.  But what happens if you switch homes or the price adjusts as the result of the inspection or appraisal?

Rest assured the loan lock is based on the qualifications of the buyer not the home specifically.  So long as the home closes (or for that matter any home close) within the lock period, and the home qualifies for the specifications of the loan, a buyer will still be able to get the terms of the loan lock. 

This very question is typically why we do not advise buyers to lock a loan until we are pretty darn sure we will close.  With interest rates as attractive as they have  been lately however, some have been quick to pull the trigger.  That is fine, but if for some reason you are not able to close within the lock period, it will cost you to extend the lock.  Sometimes a lock can be extended, but not always, so be careful. 

Give me a call if you need help.

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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,

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

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Regular readers are well aware of my unhealthy preoccupation with statistics.  The Multiple listing service recently released the compiled numbers for June and I have been sifting through them for my and your benefit.  Below is a chat of the past 3 years for single family homes in Seattle.

Here is what you need to know The light green bars are the homes for sale in each given month.  The dark green bars are the ones that have sold in each month.  The red line are the pending sales for each month. 

A few comments on the numbers.  Obviously there are many more homes for sale this June then prior to the recession.  Still the numbers are down from a year ago and suggest some improvement in the market.

Sales However are similar to last year suggesting that buyers are not more willing to buy this year then last. 

The red pending line however is markedly different.  It is sharply up over the past several months.  This is partly due to the first time home buyer tax credit and some is due to a seasonal uptick that we see each year anyway.

One more thought that I will leave you with.  I saw a statistic that first time home buyers make up approximately 50% of the market right now.  That is up sharply from the typical 25-30% of the market they typically occupy.  I have to say that many of my current clients are first time home buyers, so I am seeing the effect of the tax credit.

There is some noise in congress to extend the first time home buyer tax credit to all buyers and extend it into next year. 

I’ll keep you posted on that.

Give me a call if you need help.

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-6349

robgraham@windermere.com

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Many of you are already aware of how excited I get each month at this time when the numbers for home sales for the previous month here in Seattle come out.  I was already expecting big things from April, but they exceeded even my expectations. 

Here are the highlights:

• April saw more pending home sales then any month going back to July of 2007.
• Inventory dropped from 5.7 months of inventory in March to 3.9 in April. 
• Median price of homes sold in April remained flat at $389,000.
• The average amount of time it is taking homes to sell dropped slightly from 125 days to 111.

The pending numbers bear a little more explanation.  The pending sales are those that came under contract in a given month and are expected to close in the near future.  the jump in pending sales was pretty dramatic from 383 in March to 538 in April.  That is a 40% jump in one month. 

Inventory is the relationship between how many homes are for sale and how fast they are selling.  for example, April’s number of 3.9 months, means that at the current rate all the homes currently for sale would be bought up in 3.9 months.  Compare that to the previous month of 5.7.  

Median home sale price has flattened out as well.  This is another good sigh of recovery.  The first homes to be bought in a recovery are the cheaper homes.   Buyers are only willing to buy those homes that are priced at a discount.  The leveling off of prices suggests that a lot of the bottom feeding has resulted in much of that inventory being taken off the market.  Once this phase of the recovery passes, buyers will begin to nibble at the higher priced inventory that is a better reflection of true fair market value. 

ll this is good news for banks and homeowners.  As home values rise and the rate of short sales slow, banks balance sheets will continue to look healthier.  Also, homeowners will feel a sense of relief that the value of their investments is again on the rise.  As this happens banks will feel better about lending money and homeowners will feel more apt to spend money.  Combine those two things and the grip of the recession will ease. 

Keep in mind that this isn’t an overnight phenomenon. It will be months before we can claim the end of the recession.  It is also true that for housing, Seattle is emerging from the funk much earlier then many other parts of the country.  Heck, Seattle is emerging much quicker then Bellevue. 

Still all this is great news for the housing industry and the overall economy.   If the trend continues even gradually, we are in good shape for improved health  as we move forward.

Give me a call if you need help.  I am always looking for great clients like you.

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Rob Graham, Accredited Buyers Representative

Windermere Real Estate

206-321-63249

robgraham@windermere.com

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