Tips When Shopping for a Condo
July 26, 2010 by Erin Schedler · Leave a Comment
When helping a buyer shop for condos, I make sure to answer the following questions:
How many of the other units are sold?
These days, lenders are very wary of mortgaging condos, since so many buildings are in financial distress. Often times, if a newer building has not sold all the units (or has only half sold), the lender won’t finance your purchase. Make sure to check the financial status of the building. If there are over 80% of the units sold, you’ll probably be just fine.
How big is the reserve account?
The reserve account is essentially the building’s “savings” account for repairs and upgrades. If the account has a large balance, then I am less worried my client will face a special assessment anytime soon. Large reserve accounts usually mean higher HOA dues (monthly charge you’ll pay for general condo maintenance). If you’re only going to hold the condo a few years, perhaps you’d rather not contribute to a fat reserve account since you’re not likely to benefit from it.
What makes this condo different from the others?
Despite the development slowdown, there are still a lot of condo buildings in Seattle. Read more
Are you paying the mortgage but not on title?
July 8, 2010 by Erin Schedler · 1 Comment
Being on one does not mean you’re on the other! Just because you are contributing to the mortgage payments does not necessarily mean you have legal claim to the property.
I have heard too many times of spouses contributing to a mortgage payments, home remodels and repairs but never taking the time to get their name on the property title and protect their interest. This most often occurs when someone marries another who already owns property. The new spouse assumes that by being married and contributing to the mortgage, that they now have legal ownership in the home. Unfortunately, if and when the couple divorces, the only person with legitimate claim to the property is usually the one who was on title.
How do you get on the title? By using a quitclaim deed. This process can be used to add or remove parties from property title. My advice is to consult an attorney (Mark Schedler is terrific) to discuss your situation and decide if this is the best step for you. Of course there are some tax advantages to removing a spouse from a property title but, again, consult an attorney for more details.
If you are unsure if your name is on title, email me and I’d be happy to look up your property record!
Windermere and Laurelhurst Trend Update | July 2010
July 7, 2010 by Erin Schedler · Leave a Comment
Real estate trends for the Windermere and Laurelhurst neighborhoods in Seattle, WA. Take a look at the remaining inventory – it’s dropping very quickly! From what I can tell, buyers are very nervous these days because they don’t know where “bottom” is and are scared to buy should prices keep dropping. Sellers are also anxious to make any drastic changes, so they’re waiting to list. Result? No inventory! However there are always buyers in the market. Supply and demand means for those buyers, there aren’t too many choices right now! It might be a competitive time to sell for that reason.
Queen Anne Residential Report | July 2010
July 7, 2010 by Erin Schedler · Leave a Comment
Below is the most current report on real estate trends for the Queen Anne neighborhood. It’s hard to find any significant trends in the sold homes, though list prices seem to be coming down in general.
Courtesy of Trendgraphix.
Budgeting to Buy a House
June 30, 2010 by Erin Schedler · Leave a Comment
One of my favorite lenders, Julie Jones, recommended a new website to me yesterday that I instantly fell in love with! Www.mint.com is a one-stop place to organize all your accounts, budget, and track your investments and net worth. For those less trusting of the internet, it’s probably not for you. However, I found it very secure and easy to work with.
Once it’s set up, you can track your spending across all your checking accounts and cards, and see what you’re spending/saving in real time. I also love the “goal” feature, which lets you see your progress towards buying a house or taking a fun trip.
If you are a budget-nut like I am, you’ll be hooked!
For other real estate financial worksheets, check out Escrow Professionals of Washington, our Escrow affiliate. They have terrific spreadsheets for calculating buyer closing costs, seller proceeds and loan payoffs!
Best & Worst Cities for Recession Recovery
June 29, 2010 by Erin Schedler · 1 Comment
Who Lands Where?
Forbes.com has speculated ten cities poised for recovery and names the ten cities that will struggle the longest. What is interesting to note is the clusters of recoverable areas and the clusters of areas that may continue to struggle. Texas makes up 40% of the Top 10 while California makes up 50% of the Bottom 10.
Ten Best Cities Best Poised for Recovery
Other than Seattle and D.C./Arlington/Alexandria, all of the Top 10 is made up of southern/southwestern states. It is notable that examining Texas as the driving force for a recovery, the economy is diverse and there was never a real estate bubble. Read more
Let’s talk Seattle condos
June 24, 2010 by Erin Schedler · Leave a Comment
Residential homes have been one thing, but condos have been another. In 2005/2006 Paul Allen and few other major developers got to work and there was a HUGE influx of new condo buildings in downtown Seattle, Belltown and South Lake Union. When the market crashed, we were left with a lot of inventory – especially high-priced inventory.
So what now? A lot of these new buildings have been turned into apartments or a new hybrid: apartment/condos. In these projects you can either lease or own. I’m not sure what this will mean for ownership, as the “rules” are new and unclear. My guess is that the developer (or “declarant”) will probably want to hold a minority share in these projects so it’s not liable for the majority cost. I also be they won’t want to be owners long. Read more
Supply and Demand (and Seattle Real Estate)
June 23, 2010 by Erin Schedler · Leave a Comment
Every Monday I get a “sneak peek” tour of new listings in my office. This week I went to properties in West Seattle, Pinehurst and Wallingford that were about to come on the market. One home was listed for $539,000 on Wallingford avenue (near Julia’s —- yum!). My first reaction to the home was “cute but overpriced”. That street is awfully busy and it would take a particular buyer to pay that price for the noisy location. In addition the top floor had a funky layout and the kitchen needed an overhaul. I figured it would be on the market for some time…
Wrong! They received an offer the day after it listed. I spoke with the listing agent (friend of mine in the office) and he agreed the listing was overpriced as well (side note: agents can give their opinion on price but it’s the seller that decides what it lists for).
I recently had a buyer in this price point looking in Wallingford and Greenlake and let me tell you, inventory is slim pickings! Such a small supply means a lot of buyers out there are having to wait for homes to come on the market, and are even willing to overpay for them to beat out the competition.
So when you’re reading about the real estate market and how it’s doing. be sure to ask “which market”? Looking at the national market can only tell you generalities. Even analyzing the Seattle market as a whole can be tricky.
In general, the market for homes in central Seattle neighborhoods (like Wallingford) listed under $550,000 could very well be a seller’s market right now. Multiple offers and minimal days on market are not uncommon, in fact they’re becoming the status quo. This isn’t true of condos and high-end, which will be hurting for a while, but overall inventory is way down. Supply and demand! If you’re looking in that price point, be ready to move quickly and don’t hesitate to make your offer, albeit a low one, if you’re in love. Who knows, the house could be gone in a day!
Madison Park and Broadmoor Update
June 21, 2010 by Erin Schedler · Leave a Comment
The Madison Park and Broadmoor areas are moving slow these days!
ACTIVE LISTINGS
There are currently 25 active listings between $1,800,000 and $2,995,000 and there haven’t been any new pending or sold listings in the last 30 days.
The average time on market is 215 days, which is significant considering homes under $1,000,000 in most Seattle neighborhoods are running around 120 days. Average price per square foot is $580.
SOLD HOMES
In the last 6 months, there have been 33 sales in the same neighborhoods with an average sales price of $1,273,391. The average days on market (cumulative) is 147 and sold price per square foot is $375.
Bottom line is there is a lot of inventory priced too high. To be competitive, sellers need to be aggressive with their listing price and prepare to wait. Buyers: it’s a great time for a deal!
Senate Backs Extending Deadline for Housing Tax Credit
June 16, 2010 by Erin Schedler · Leave a Comment
Senate Backs Extending Deadline for Housing Tax Credit
Published: Wednesday, 16 Jun 2010 | 3:47 PM ET
By: Reuters
The Senate voted Wednesday to give homebuyers another three months to settle on their contracts and take advantage of a popular tax credit that sparked a rush of activity in the housing market.
The Senate, with a vote of 60-37, accepted an amendment by Democratic Leader Harry Reid that extends the closing deadline to Sept. 30 for buyers who met the April 30 deadline to have a signed contract.
The current deadline requires buyers to close by June 30 to get the $8,000 tax credit for first-time homebuyers. Read more
