Greenwood Phinney Undressed

--> Feb
09

Ahhhhh February Snow on the Ridge

 

I woke up at 3 am to get a drink of water and there was a dusting of snow on the back deck but when I looked out the front window, wet snow was coming down fast and furious and not quit sideways.  These pictures were taken around 7 am.  And to think the nut hatches were checking out their new digs just last Thursday.  I guess it is still winter on the Ridge.

--> Feb
09

Tax Credit for Home Buyers

 

 

Good news you can share with your clients

Due to the efforts of the National Association of REALTORS® and specific members of Congress, we are making significant progress in regards to housing provisions in the National Economic Stimulus Bill.

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.

 

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.  

“On behalf of all American families and over 20,000 Washington REALTORS® I’d like to thank Senator Patty Murray for introducing this amendment to the Senate Stimulus Bill to increase the loan limits” said Greg Wright, President of the Washington REALTORS®.

 

The Senate is considering its version of the bill.  We anticipate much more debate and some changes in the days ahead, so please check Realtor.org often for updates.   

Once the Senate passes a bill, we expect lawmakers to hold a conference to work out the differences, before sending it along to the President.  The President wants a finished product by February 16, 2009.

--> Feb
06

January Housing & Condo Stats

Statistical Summary by Counties: Market Activity Summary – January 2009

January 2009 Single Family Homes + Condos	LISTINGS		PENDING SALES	CLOSED SALES
	New Listings	Total Active	# Pending Sales	# Closings	Average Price	Median Price
King	4159	12035	1500	906	$464,628	$364,138
Snohomish	1980	5595	668	359	$314,171	$295,000
Pierce	1647	6183	832	382	$256,880	$235,000
Kitsap	514	2060	250	126	$284,230	$234,200
Mason	136	680	41	19	$201,482	$170,900
Skagit	246	1082	81	56	$283,712	$246,950
Grays Harbor	146	795	58	36	$159,213	$155,856
Lewis	93	679	43	24	$174,352	$158,250
Cowlitz	127	622	66	29	$165,952	$161,500
Grant	84	580	42	30	$154,815	$152,558
Thurston	484	1584	291	177	$267,131	$239,950
San Juan	43	367	9	4	$587,250	$573,500
Island	200	946	70	36	$308,819	$243,803
Kittitas	82	523	27	7	$232,929	$230,000
Jefferson	57	452	21	12	$229,750	$227,500
Okanogan	28	389	16	12	$158,167	$139,000
Whatcom	346	1646	194	107	$289,752	$245,000
Clark	105	574	48	28	$239,157	$221,000
Pacific	61	331	19	9	$189,333	$182,000
Others	175	1048	77	43	$187,641	$183,500
MLS TOTAL	10,713	38,171	4,353	2,402	$341,914	$273,000

4-County Puget Sound Region Pending Sales (SFH + Condo combined)
(Totals include King, Snohomish, Pierce & Kitsap counties)

	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2000	3706	4778	5903	5116	5490	5079	4928	5432	4569	4675	4126	3166
2001	4334	5056	5722	5399	5631	5568	5434	5544	4040	4387	4155	3430
2002	4293	4735	5569	5436	6131	5212	5525	6215	5394	5777	4966	4153
2003	4746	5290	6889	6837	7148	7202	7673	7135	6698	6552	4904	4454
2004	4521	6284	8073	7910	7888	8186	7583	7464	6984	6761	6228	5195
2005	5426	6833	8801	8420	8610	8896	8207	8784	7561	7157	6188	4837
2006	5275	6032	8174	7651	8411	8094	7121	7692	6216	6403	5292	4346
2007	4869	6239	7192	6974	7311	6876	6371	5580	4153	4447	3896	2975
2008	3291	4167	4520	4624	4526	4765	4580	4584	4445	3346	2841	2432
2009	3250

--> Feb
06

What is a Short Sale and How does that impact Sellers and Buyers?

I have to first thank Galvin Realty Law Group for this information.  It is a general overview for informational purposes only but should give you a good idea of what a short sale is.

Seattle has had a delayed housing crisis so to speak and short sales are now showing up and becoming part of an agents life.  Most Brokers have very specific rules as to how their agents and even which agents are allowed to handle a short sale due to the liabilities involved.  So whether you are selling or buying there are implications and things to consider on both sides it is NOT a normal transaction and there are some monetary risks including inspection fees paid out if the deal fails.

A short sale is essentially a sale that involves selling your home at a price that is lower than what you owe on the home AND you cannot afford to make up the difference.  If you can make up the difference than it is not technically a short sale.  A Short sale involves negotiations with the lenders to try and get them to agree to the selling price and forgive the difference without penalties. (Note:  lenders can file judgements for the balance owing too).  If there is more than one lender involved, it can get complicated.  The more information the Seller can gather for the listing agent the smoother the process will be, the agent will provide a list of information required.

Once the purchase and sale agreement is signed by all parties, a completed “short sale package” must be submitted to the sellers lender for their approval which includes a copy of the PSA, the buyers pre-approval letter from their lender, listing history of the property and other documents requested of the seller.  Note:  Any buyer wanting to buy a short sale – you do need the pre-approval letter to submit the PSA.  The seller has no control over the offer or its approval once the file is submitted and the seller cannot recieve any proceeds from the sale.  If there are any utilitie liens it typically falls on the Buyer to pay off those liens.

The lender may not even look at the short sale package for 15-30 days and once they get a BPO (broker price opinion) from an outside party they will assign a loss mitigator/negotiator to handle it who becomes the primary contact for the sellers negotiator.  The negotiator will be called weekly and the file will literally sit in the order it was received.  All updates will be relayed to the parties but there will be long periods of time where it seems nothing is happening even though everything possible is being done to move the file forward.

Eventually the file will be submitted to the investor and or mortgage insurance company for approval which usually does not take very long for a decision.  Once the approval letter is written, they allow 10-15 days to close. 

The buyer must do any inspections necessary to satisfy itself as to the condition of the property.  The buyer’s lender needs to be on notice that they will need to order the appraisal immediately upon the underlying lien holders approval so closing can occur in the time frame allotted.

Currently it is taking 60-90 days from the time the package is submitted to recieve an approval letter but, it can take longer and there is no guarantee a file will be approved.  Most lenders do not want to foreclose on the property but sometimes the circumstances do not work out especially if it is difficult finding the trail of lenders.  Respectfully submitted by:  Kerri Sheehan, Realtor – Keller Williams, GRSE, LLC/ Kerriproperties.com

--> Feb
05

My Blog

Yes, I took a hiatus from blogging while I contemplated the future of my blog site.  First of all, I think we have several fabulous and professional blogs in the area specifically myballard.com and phinneywood.com.  These sites and related neighborhood ones are run by professional journalists who do a really fabulous job.  I love these blogs.  So, I’ve never thought I was in competition with them but I had to ask myself what can I do that would add value as a neighborhood blogger?  I also had a few concerns with some really yucky sites that pop up if you type my blog address in wrong.  I belong to a group called Neighborhoods Undressed which is made up of mostly real estate professionals and other related parties who blog under the same umbrella.  It is a great group and we all support each other.  So… I also had to admit that I do enjoy blogging – especially without restrictions either by a blogging relationship or self imposed.  For all these reasons, I plan on continuing my blog as a creative or frustrating release of stuff I feel like writing about,mixed in with neighborhood stuff and mostly real estate facts and information.  For anyone who has cruised by my blog or happen upon it…. I hope you like that approach.   Kerri Sheehan, Realtor   Keller Williams, GRSE LLC