CENTURY 21 North Homes Realty, Inc.

Government Gives Extention of Tax Housing Credit

noreply@blogger.com (Bryan L) — Sat, 12 Dec 2009 16:22:00 +0000

Near the end of November, the first time home buyer tax incentive/credit was extended to April 30th 2010. For first time home buyers, this means that if you have a contract written up and turned in by April 30th, you will get to take advantage of the $8000 tax credit. Also the credit of $6500 has been extended to second time home buyers that have lived in their homes for 5 or more years.

Here are a couple items to keep in mind when trying to take advantage of this credit. For first time home buyers, you cannot have owned a home within the past 3 years. Second, you will need to have your home mutually accepted by the 30th of April. Third, you need to close by the end of June 2010.

Another change raises the income limit from $75,000 for an individual to $125,000 and from $125,000 to $225,000 for a couple. The credit is still available on a reduction basis for those who make above these limits.

Most of our industry agrees that during the holidays we will see a slight slowdown. However, at the turn of the year there is growing anticipation of an increasing flow of buyers as they work to take advantage of the extended tax credit. It is also the general impression that come January, we will likely start to see a recovery in most areas here in Western Washington.

Current Trends in our Market...

noreply@blogger.com (Bryan L) — Thu, 24 Sep 2009 05:01:00 +0000

Over the past couple months the real estate market in the Seattle area has continued to see a stabilized pricing on homes while experiencing a gradual decline in homes on the market. First time buyers continue to race against the clock, trying to take advantage of the Government Tax Incentive for the first time buyer. Currently the government $8000 tax credit is set to expire on December 1st, 2009. Signs continue to reflect that we may have reached the bottom of the real estate market.

While this is a deep sigh of relief for almost everyone, there is still some unknowns that could affect different pockets of the market. Depending on what happens with Boeing, for example, areas around Everett could soon be dealing with an influx of homes coming onto the market from employees having to transfer. So sorry, no crystal ball here.

Still though, despite all the hustle with buyers, Sellers are still typically seeing 60 - 90 day market times for homes under the 350,000 price point. Higher priced homes are generally seeing a little longer market time due to the smaller number of second time home buyers in our market today. They are still out there, but most of them have to sell a home first before they can buy their next home.

Bottom line the next two months will continue to stay busy, especially for the first time home buyers. While rumors of an extension to the Governments Tax Incentive loom about most buyers do not seem to want the risk by waiting till later to buy.

- Bryan Lovell

Interest rates cause buyers to take action.

noreply@blogger.com (Bryan L) — Tue, 09 Jun 2009 04:55:00 +0000

Interest rates have been below 5% for the past several weeks. Many buyers in the market felt they were in a safe position with the struggling economy believing that rates would remain about the same for some time. Over the past week however that has not proven to be the case. Buyers are noticing their opportunity for an incredible interest rate starting to fade as the summer begins to come on full force.

Just in the past week, three buyers that I have been working with all decided it was time to secure a home before the rates spiked further. Disappointment gloomed about them as running the numbers started to show just how much more they would be paying for the same home verses just 2 weeks ago. Realizing that the rates were likely not to improve however, buyers seem to be making a move before rates climb even higher.

This is an incredible market right now, with the credit for taxes this year, the selection of homes, as well as how much prices have come down make this a prime opportunity for any first time home buyer that is ready to buy. It doesn't get much better than this. Often times in history there have perhaps been times where there have been less buyers than today BUT to have a combination of few buyers and incredible interest rates make this one of the best opportunities.

Back in the 80's Interest rates loomed around the upper teens! it was not uncommon for a buyer to pay 18% in interest. Compare that to the average interest rate of 7 or 8% and you realize just how pricing interest was. Take another look at our low rates today of 5.5% and you will realize that while the rates are on the rise, we still stand in an incredible market for low interest rates. Buyers are realizing that these low rates can not last forever and with the sudden rise in interest, buyers are seriously making there moves today.

Multiple Offers on Bargain Homes

noreply@blogger.com (Bryan L) — Fri, 01 May 2009 14:51:00 +0000

Over the past 6 months, buyers have been able to make offers on just about everything without worry of having to compete against other buyers. During the month of April that has not been the case. Several buyers have decided to pick up the pen and start pursuing the ever decreasing bargain price range. Just two weeks ago I had writhen up 3 offers on different homes across Snohomish County. Every single one of them had at least one other buyer making offers, causing the sales price to increase over the asking price.

Last week again two offers we also written with other offers on the table. Gratefully my clients got those homes. We are seeing these bargain price homes selling off. Over the next couple weeks we will see the low priced homes start to drop off.

If this trend continues, homes will stable in price and likely start to earn back their value again. If you do happen to know someone who is sitting on the fence, this is the time to get serious. In six months that friend may be wishing they acted sooner than later.

What is happening in the Real Estate Market?

noreply@blogger.com (Bryan L) — Tue, 14 Apr 2009 14:13:00 +0000

Over the past year our market has seen a decline in our real estate market. However, we continue to see signs now that we have entered into a recovery period. Just 2 months ago, if there was a home on the market and you had an interest in it, you likely would be the only one making an offer at that time.

Today, that is not the case. Just within the past month, we have seen a surge of buyers entering into the real estate market. Investors are actively trying to take advantage of the low prices and incredible interest rates. Financial markets have loosened up some and people are able to qualified again. Just last week, two transactions I am working with both received multiple offers of which pushed up the prices offered. In both cases, both of the prices ended up being higher then the actual asking price.

Other agents within the CENTURY 21 North Homes are also experiencing the same trend. Buyers are noticing this too. A synergy seem to have boosted buyers into taking action as our market starts to enter into an improving market.

Our market is seeing an increase of offers as well as a gradual decrease in our housing inventory. This is very good news for both Buyers and Sellers but also for our economy. For buyers it is a sign we have reached the bottom. If there is a time to buy, and you can, this is your window of opportunity. For Sellers, it seems we have seen the bottom and now the values of our homes will start an upward trend once again.

Should you be looking to buy or sell a home, contact one of our agents and we will be glad to share with you how the market is reacting to your specific area.

Classes Provided for Distressed Homeowners

noreply@blogger.com (Bryan L) — Sat, 24 Jan 2009 20:14:00 +0000

Over the past year and a half, our nation has watched tens of thousands of people forced out of their homes. This happens mostly because of the homeowner’s inability to make or catch up on their mortgage payments. I have personally visited with several of these homeowners who only wish there was a way to keep their home. The problem is they have gotten themselves into a loan where the interest rate is consuming their ability to make payments. In some cases they are even making the same amount as they were when they bought the house but the Adjustable Arm increased their payments to a point that they could no longer keep up.

To many this sounds all too familiar. After talking to many homeowners who have been in similar situations we have discovered most just don’t know what to do. Many homeowners just simply give up believing there is no way to keep their homes. They then pack up and move, the put their keys in an envelope and mail it into the lender believing that was all they could do. What is really interesting is that most homeowners never even contacted their lenders to see if they have other options. Some of these people very likely could keep their homes if they only understood the options available.

It is for this reason that Century 21 North Homes Realty, Inc. is reaching out to those who find themselves at risk of losing their homes. Our offices are holding classes each month at no expense to these homeowners. Classes have been customized to help you the homeowner knows just what options you have to helping you keep your home. It is our goal in helping these homeowners, to keep the real estate inventory down, helping those who have to sell, and avoid many of the scams taking advantage of financial situation. On top of all this, for those who need additional assistance there is also advanced service that CENTURY 21 North Homes Realty, Inc. has available.

Should you find yourself in this situation then come attend one of our special classes. All you need to do is call our office at (425)743-3330 and get yourself registered on our class schedule. Then come and attend.

In Danger of Losing Your Home?

douglas.lovitt@gmail.com (Douglas Lovitt) — Wed, 17 Dec 2008 23:52:00 +0000

In today's turbulent financial times, many homeowners are struggling to make their monthly payments. Many are staring foreclosure and the possibility of being homeless right in the face. Whether you have lost your job, had your adjustable rate mortgage make your payments impossible, or simply think you can't sell because you owe more than the home is worth, you need to know there are solutions.

Most lenders don't want to take a home back, especially through the foreclosure process. Why? It costs them too much, they already have way too many defaulted loans to deal with, and then they are still faced with the problem of selling the property if they do take it back. In fact, many lenders are getting "jingle mail." That's where a homeowner simply gives up trying to make their payments, moves out, and mails their keys into the lender. The two most common solutions available to you are either "loan modification" or "short sale." Right now, lenders are much more willing to work with you to modify the structure of your loan so you can stay in your home. If that is not possible, most lenders are also willing to allow you to sell the home for less than you owe and forgive the balance. They will even let you hire a real estate professional to help you with no money out of your pocket! Both of these solutions are complicated, and will usually require the help of an expert. I know some great ones.

There's always an upside!

douglas.lovitt@gmail.com (Douglas Lovitt) — Mon, 01 Dec 2008 17:53:00 +0000

It is always amazing to me how much the media can impact the minds of consumers, and in turn, our economy. I'm not saying that we don't have some real economic issues to solve, but over the last year, consumer confidence has been beaten up by negative reporting. Issues regarding rising national foreclosure rates, the sub-prime financing market implosion, the credit crisis & frozen credit markets, Wall Street's recent free fall, and today's falling home values are real. At times, it's enough to make anyone want to go hibernate in a cave for the winter!

But before we do that, let's take a look from a little different perspective. What are many of the world's most wealthy people doing right now? They are not panicking... they are buying, not selling. Hop on the Internet and check out what Warren Buffet is doing. He's investing like crazy. Despite all the doom and gloom he evidently sees something extremely positive - OPPORTUNITY.

Over the last 5 years as house prices were racing upward, I remember having hundreds of conversations with parents in the "Baby Boom" generation. Most of them had kids that were either just starting college, or were attending college with the finish line in sight. In virtually every one of these conversations, the parents were wandering how their kids were ever going to be able to afford to buy a home. Well, here's some great news... today I am seeing some incredible homes sell for what they were selling for in 2004/2005! Although it sucks to be a seller in today's market, it's a great time to be a buyer! Right now seller's that need to sell are having to price their homes lower and make concessions (like helping with closing costs, interest rate buy downs, etc.) to get their homes sold. And yes, despite the news stories, home financing is still available (but you do have to have a job and decent credit - go figure!). Remember the old adage "Buy low - sell high?" It hasn't changed. Maybe you should seriously consider that investment property you've been contemplating, or maybe help those kids get into a home!

Hope is returning to our market.

noreply@blogger.com (Bryan L) — Tue, 25 Nov 2008 18:14:00 +0000

Over the past year, our market has experienced a continual decline in home pricing. Foreclosures have sky rocketed as the number of qualified buyers have also dropped off. The general impression in the market has been down. However, there is good news that is starting to shift our market back.

As many of people are waiting for the perfect time to buy, that perfect time is passing them by today. The word amongst agents is qualified buyers are starting to increase. Just this past weekend at CENTURY 21 North Homes Realty, we have seen a substantial increase in our buyer activity. Floor calls are coming in, agents are getting more calls off their fliers and online advertising. Potential buyers are calling, trying to judge the timing just right.

People are starting to see the incredible opportunities that are out there. Incredible interest rates packaged with some new loan options, some that even permit people to buy again with 0% down, are bringing the buyers back. An increase in investors is also on the rise as many have taken note of the increase in rental prices.

If you are looking to buy, this is the time! No one knows where interest rates will be tomorrow, no one knows for sure how long the "incredible buys" will exist. But we do know they are both at incredible lows today. Come January and February the majority of the people are going to notice just how good it is. An increase of buyers may make getting that "bargain" price much more difficult.

- Bryan Lovell
Century 21 North Homes Realty, Inc.
(425)743-3330

Taking Advantage of First-Time Buyer Tax Credit

noreply@blogger.com (Bryan L) — Thu, 13 Nov 2008 00:03:00 +0000

As of April 9th of 2008 the government created a $7500 tax credit for buyers who purchase their first home. This credit is designed to help first time buyers discover a way to get into a home.

When taking into account this credit with low interest rates and low housing prices, if you can, you really should. Here are some items to keep in mind when taking advantage of this credit.

1 - There is a timeframe of when you can take advantage of this tax credit. If you have already bought a home you have to have bought your home after April 9th of this year. If however you have yet to make that purchase, then you have until July of 2009.

2 - You don't have to be a first time home buyer to take advantage of the tax credit. This tax credit is available to buyers who have not owned a home in the past 3 years.

3 - There are limits to a person’s income. In order to take full advantage of the credit you must make less than $75,000 as an individual or $150,000 as a household. However if you earn under $95,000 individually or 190,000 as a household you still can take advantage of the credit at a reduced amount.

4 - The credit will have to be repaid. While this credit may help you buy a home, it is not a free hand out. The payments would be paid in 6.67% increments for 15 years. Payments would start in 2011 and would never exceed $500 per year. Several lenders consider this an interest free loan.

5 - Several loans permit you, the buyer, to get a loan from your parents, family, or long term close friends. This would allow you to use that money as a down. You would then be able to repay your family or friend when you file for tax returns and receive the credit back. Talk with your lender to find out more. Each loan works differently.

6 - Last is that there is no need to "apply" for this benefit. Simply find your home, buy it, and then claim the credit on your tax return when you file. All homes qualify so long as they are your primary residence.

Bottom line is, if you are trying to decide to buy a home and can, this is just another wonderful opportunity for you to make it happen. You have low interest rates, great housing prices, and a tax incentive to back you up should you decide to use it. This is just the right time to buy.

What is a Shortsale? Should I shortsell my house?

noreply@blogger.com (Bryan L) — Wed, 29 Oct 2008 19:03:00 +0000

Here is the definition of a short sale - It is when the homeowner has to sell there home for less then what they owe. For example, lets say you owe $350,000 on your home today. If you listed it your home would only sell for what you owe $350,000. After closing expenses (taxes, title, real estate fees etc.) you would only net somewhere around $320,000 and would be short $30,000. Chances are for most people they don’t have $30,000 sitting around to pay the difference in the loss. So the lender must take the loss in order to make the sale happen.

That’s right, the bank, your lender has to take the hit. The lender obviously has to approve a loss on the sale. To do this, there are steps and information that the lender will require. They will need to know your income, a letter of hardship explaining why you have to sell, why you are behind, copies of bank statements, your check stubs, and a breakdown of your expenses.

Recently in places around the nation we have heard of people bailing on their homes just because there home is worth less then what they bought it for. Yet they are able to make the payments and stay in their home. Lenders will not permit a shortsale in this specific situation. They will come back and tell you that you make too much.

If you find yourself asking this question, then ask yourself this next question. Can you make the payments and continue to afford your home? If the answer is yes, a lender will most likely deny any shortsale unless there is another reason such as a job transfer.

Second, most lenders today require you to be a minimum of 2 or 3 months delinquent before they would even consider a short sale...again this is a general rule. So not only do you ding your credit for selling under what you owe but you also ding your credit for three 30 day lates, two 60 day lates, and one 90 day late. Then you take on the short sale itself which will hit your credit almost as bad as a foreclosure.

Simply put, your credit will suffer tremendously for up to 7 years. It will negatively impact your ability to not just purchase a home, but get auto loans, credit cards, and other lines of credit. Now those who have no options this will always be better then foreclosure but only should be used as a last resort.

If you have great credit and are wondering what to do, consider alternate options. One option is to rent your home. I know in many places rent has climbed significantly the past couple years. You may be able to rent the home for close to your monthly payment (and you may not). But you may also be able to offset your monthly expenses.

Also consider buying homes as an investment. If prices have come down that low you may be able to pick up a couple of good rentals to offset the losses on the home you are in. Eventually prices will bounce back and if you do end up owning more homes you will increase your total value as well.

All I can recommend is don't do a short sale on your home unless you need to. Second, if the opportunities are that good, and you are able to purchase another home, consider doing just that and pick up a couple of investment properties. Look for those who are selling their homes and need to get out.

What to do first when looking for a home

noreply@blogger.com (Bryan L) — Fri, 24 Oct 2008 16:07:00 +0000

It always amazes me the responses agents will give to anyone who wants to sell or buy a home. New buyers have been asking what to do next when first preparing to make their first purchase. I have seen it several times in online blogs all over the web. "Let me show you a home" or "You need to meet with me because I am cool" as if this really is the answer to your question. Simply put, it seems there is a feeding frenzy to get that buyer in their door, yet no one seems to really be interested in answering your questions.

Here are some steps to get you started:
First off, get approved for financing:
Before taking any time to look at any homes you should know what you really can afford to purchase. Unless you are paying 100% cash then I highly recommend you contact at least 2 or 3 lenders and get an idea of what their current rates and programs are. Know how much you will need to put down, and how much you will pay each month. Without lender approval, you likely will waste your time looking at several homes you could never even close on.

Second, understand the process:
One thing that seems to make it most difficult for buyers is the unexpected fees that come through the process of buying a home. Here are serious questions you should ask yourself.
- How much Earnest Money can I put down? (Usually a minimum of 1% is what I recommend)
- Do I have enough to pay for the closing costs or will I need help? How much this will be depends on the price of the home. While there is no exact amount it is often times around 3% of the sales price.
- Do I have money to complete an inspection? Usually around $400 This is a start, once you know these answers you should be ready to start looking.

If you are wondering what any of this means then you really will want to sit down with a real estate agent and get to know the process more in depth.

There will be other questions you likely will have in the process but this will give you a good opportunity to be prepared ahead of time. Now if you have done all the above then you need to sit down with an agent and start looking at the homes.

Q: Is this a good time to buy?

noreply@blogger.com (Bryan L) — Wed, 15 Oct 2008 22:03:00 +0000

I have had this question asked several times over the past couple months. With all the negative media that has hit the airwaves it seems to have spurred a lot of concern on what will happen in the future to our housing prices. While no one person, company or government has a crystal ball to tell the future, here are some things to take into serious consideration in a market like we are seeing today.

1 - Inventory: Today, in Western Washington, we are seeing approximately a 9 month inventory. What does that mean? It means that with the amount of homes on the market today, it would take 9 months to sell them all off with the number of sales we have been seeing each month.

As a buyer this means two things; First, prices have come down over the past 12 months providing some of the best deals in over 3 years. Second, you have options. As of today, it is very likely that you could find almost everything you would like in that home and not just that but get a good price for it as well.

2 - Cost: As just mentioned prices have come down. But more then that, there are opportunities for buyers to buy a home and get the Seller to cover some of the costs for that home. So, good price with little cost for closing = great opportunity

3 - Competition: Buyers, when there are less buyers seriously looking it means you as a buyer are not competing for that home. 2 years ago, if you made an offer on a home and didn't have someone else making an offer the same day, then that was a rarity. Today, while it sometimes happens, it is rare that more then one offer comes in on a home. If in the off chance another offer does come in, then you know it is a good opportunity just because you were not the only one who had interest in it.

4 - Interest Rates: Interest rates are at some of the lowest rates ever. Every day the rates go up and down ever so slightly. Traditionally after a presidential election we see those interest rates begin to increase.

I know people who 5 years ago said they were going to wait till the "bubble bursts". 5 years later the prices had gone up nearly 45%. In the past year they have come down between 10% and 14%. Had they bought back then, they would have purchased a home 30% - 35% less then today.

To wrap it all up, this is a great time to buy. There are few opportunitys that come when people get in when they should just to be followed with people saying "I should have...I should have" or "if only I had listened." Bottom line, as a future home owner one should always ask themselves if they are planning to live in this home for more than 3 years. If the answer is yes, it is most likely that no matter the changes in real estate, you will most likely come out on top.

Should you have a question please feel free to contact any of our agents at Century 21 North Homes Realty, Inc. We are here to serve you in any of your real estate needs.

Use your Local Knowlege: Search using Keywords

noreply@blogger.com (John Rowles) — Thu, 02 Oct 2008 19:27:00 +0000

"Search" is the reason that Google is, well, Google. More specifically, fast, accurate keyword search is what propelled Google to the top of the Web because Google was the first company to introduce a Search tool that was better than the 1st generation search engines like Yahoo, and the rest is history.

You might think that the Real Estate industry would look at the success of Search as a technology and implement a robust keyword search of its own. To borrow a phrase from Jon Stewart -- Not so much -- the most popular Real Estate site on the Web, Realtor.com, is still using a form-driven, stove-piped database search technology that pre-dates Yahoo.

Well, that has changed: We are proud to offer the only Real Estate Search engine that is powered by Google Search Technology. Now, if you live in WA, you can "google (v.)" Real Estate the same way you google anything else.

So what? What's the big deal?

Well for one thing, Google itself cannot get the MLS data feed our site has b/c Google is not a broker. So ours is the only WA Real Estate site where you can google the complete MLS.

So why is that a big deal?

Because Search technology, and only Search technology, lets you tap into the local knowledge that you likely have when you are searching for Real Estate. Something like 85% of moves are local( according to the NAR), so most people move within the region where they already live.

That means you are driving around, spotting yard signs, you know the neighborhood names, you know what a "Territorial View" is, the list goes on and on...

Try going to Realtor.com and searching for a house you know is for sale in your neighborhood. That site, like most Real Estate sites, will force you to pick a bunch of filters for state, town, property type, price, etc. Or worse, force you to use an overly complicated map interface that takes 10 minutes to figure out.

Some of the criteria you will have to guess at. Then you hit "Search" and you get a list of all the houses that match the criteria you just entered, even though you are looking for the one house you already knew you wanted when you started.

What happened to just typing in what you want, hitting a button, and getting it?

That's how our search engine works: You know where the listing you want is, so all you have to do you type in the address, or street name and town, hit Search and get the listing you want. It also works with MLS numbers, which are often in print ads.

Beyond that practical application, its fun to search for the things you subjectively want in a listing, or to mix objective and subjective criteria, like "Seattle condo Space Needle View" or "Lynnwood Territorial views" or "single family in Everett waterfront".

Try it, but be forewarned: It's addictive.