Seattle Real Estate Blog by David Monroe: Washington: Seattle

The Stats Are Out--The Market Is Dead.  Or is it?

Yesterday, everywhere I turned, I was either looking at or hearing a news story about how homes sales plunged 27% nationwide to the lowest number on record.  Wait, weren’t we in a housing recovery just a couple months ago?  Weren’t we officially out of the recession?  Is the media not telling the whole story?

Well, before you go jump off a cliff, let’s see what that really means:

Homes sales fell 27% nationwide… From June to July.  There are two problems here:

1. Because real estate is seasonal, comparing sales levels with the previous month is statistically unreliable.  The proper comparison should between July 2010 and July 2009.
   • In King County, closed sales fell 15% compared to July 2009.  However, the median home price is up 4% from last July.
   • In Snohomish County, closed sales fell 11% compared to July 2009.  The median home price fell 5% since last July.
2. Real estate is local.  When have national real estate trends reflected the Seattle market?  While the Seattle area isn’t immune to economic challenges experienced by the rest of the nation, national statistics have never been a reliable indicator of the Seattle real estate market.
3. Sales fell to the lowest number on record?  What exactly does this mean?  How far do the records go back—To the Great Depression?  Farther?  Nope.  The records they’re referring to are from the National Association of Realtors, tracking market activity since waaaaay back in 1999.  Yes, that’s just over 10 years.  Also, they’re comparing the month of July to July of previous years, so it’s really the lowest July sales level since they began tracking in 1999.  July sales were actually higher than sales from January and February of this year, and several months last year.

So why the big real estate market “crash” last month?  IT’S THE TAX CREDIT, pure and simple.  Take large numbers of buyers who would have purchased in July and August, and convince them to purchase a couple months earlier to benefit from the $8,000 tax credit.  This causes May and June sales to spike.  What would you expect for July?

Now cheer up and go buy a house before everyone figures out that the market isn’t dead.


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Authored by David Monroe, Real Estate Agent and Short Sale Specialist
The Home4Investment Team at Keller Williams Seattle Metro West
Phone:  (206) 905-8590

Home for Sale in Seattle, Washington - Broadview near Carkeek Park

1202 NW 119th St, Seattle, WA 98177     MLS # 29163823  $435,000

For more information, contact me at 206-905-8590, or visit my website at www.sellnorthwesthomes.com.

(More photos below.)

Home for Sale in Seattle, Washington - Broadview near Carkeek Park - 4 Bedrooms, 2.25 Baths, 2,280 Square Feet

Charming mid-century home for sale in the Broadview neighborhood near Carkeek Park in Seattle, Washington situated on a corner lot and quiet dead-end street, walking distance from the beach.  This home for sale has an open, airy floor plan featuring hardwood floors, large living room with access to the deck, two fireplaces, updated kitchen, and plenty of room to stretch out.  Three bedrooms on the main floor with a full bath and private master 3/4 bath.  The daylight basement has a large family room, one bedroom and/or office, and a half bath.  The newer furnace is convertible to gas.  

The yard of this home is well-kept and no pesticides have been used by the current owner.  The back yard is fully fenced, and the yard is populated with apple trees and ornamental cherry trees.  This home for sale is close to Carkeek Park, walking trails, beach, library, bus lines, and amenities.  Enjoy the convenience of being only 10 miles from downtown Seattle, with the feel of secluded suburban living.

Broadview is home of the historic E.B. Dunn Gardens designed by the legendary Olmsted brothers, and the Llandover Trail.  Llandover Woods is home to many native animal and plant species.  Limited residential development in this area have preserved the habitat for old-growth trees, owls, eagles and mountain beavers.

PROPERTY FEATURES:

Interior Features:  Carpeted Floors, Two Fireplaces, Hardwood Floors, Laundry Room
Heating:  Forced Air Oil
Exterior Finish:  Stone, Wood
Sewer/Water Systems:  Public
Roof:  Composition
Lot Features:  Corner Lot, Dead End Street, Deck/Balcony, Fenced Yard, Landscaped, Lawn, Garden Area, Trees / Shrubs
Appliances:  Dishwasher, Microwave, Oven Range, Refrigerator, Stove, Washer/Dryer Hookup
Extra Features:  Cable Available, High Speed Internet Available, Public Transportation, Storage, Underground Sprinklers
View:  Woods

Additional information on this home for sale and its surroundings can be found at:  1202 NW 119th St.

Did you find this property using a search engine or a link from another website?

If so, consider this:

• In addition to you, many other buyers are also seeing this property online.
• If you have a home to sell, I will use the same marketing strategies to give your home the best exposure to potential buyers, helping your home sell quickly at the highest possible price.

David Monroe
Home4Investment Team at Keller Williams Seattle Metro West
Website:  www.sellnorthwesthomes.com
Phone:  (206) 905-8590

Stop Foreclosure in Seattle, Washington.  There are many real estate agents and investors offering to help stop foreclosure in Washington State.  Have you been approached by an investor claiming that they can help you stop foreclosure?

The general concept is that the investor will help you stop foreclosure by purchasing your house.  This usually involves you owing more than your house is worth, which is the situation I’ll be addressing here.  The investor will make an offer to purchase your house, then negotiate with your lender(s) to get them to approve a discounted payoff on your mortgage(s).  This is known as a “short sale”.  When the bank approves, you get to sell the house, get out from under the debt, stop foreclosure, and save your credit.  Sounds pretty simple, right?  Not necessarily.

First, I’ll clarify that investors are an important part of our real estate market.  I’m an investor myself, as well as a real estate agent.  Most investors I know are honest people trying to make a reasonable living.  However, it’s important to realize when an investor is your best option and when it is not.

When selling to an investor to stop foreclosure may be worth considering:

• The foreclosure auction is just around the corner:  If the foreclosure auction is less than two or three weeks away and you don’t already have a retail buyer in place, an investor may provide the best option (and possibly the only option) to stop foreclosure by getting the auction postponed while the bank evaluates their short sale offer. 
• Your house is a fixer:  If your house needs a significant amount of repairs, a retail buyer may not be able to secure conventional financing, and a cash buyer may be required.  Investors need to make a profit, and purchasing a fixer at a discount and fixing it up can be a good way for an experienced investor to make a profit.  When a house needs a lot of repairs, the bank will often times accept a larger discount in a short sale situation.

When selling to an investor to stop foreclosure may not be a good option:

• Your house is in good condition:  If your house is in reasonably good condition or only needs some minor cosmetic upgrades, the bank may not be able to justify accepting a large discount that an investor would typically require.  The bank will attempt to mitigate their losses, so they may feel that the house could be sold to a retail buyer, thus reducing their loss on the loan.
• You haven’t received a foreclosure notice or the foreclosure auction is more than 60 days away:  If there is enough time to find a retail buyer, the bank may not be willing to accept a heavily discounted offer from an investor.  The bank may believe that less of a discount would be required if the property is listed for sale and sold to a retail buyer.
• Your loan is an FHA or VA loan:  HUD is now using a minimum threshold net receipt to lender percentage of the market value as a basis for short sale approval on FHA and VA loans.  For example, they may accept a different minimum percentage of market value depending on whether your home has been listed for sale less than 30 days, 30-60 days, or over 60 days.  If the short sale proposal does not achieve the minimum threshold, it will not be approved.  If your home hasn’t not been listed for sale and an investor offers to purchase it, HUD may calculate the minimum amount that can be accepted based on a time-on-market of less than 30 days, causing the bank to require a higher net payoff.

Also, many investors offering to help stop foreclosure are wholesalers.  They don’t actually purchase the property themselves.  They “flip” the contract to another investor for a fee (usually several thousand dollars).  This means that they need to negotiate a discounted payoff with your bank that’s low enough for them to make their profit as well as the investor they’re flipping the property to.  The success rate of short sales in this situation is fairly low, except when the house is in very bad condition.

If an investor claims to be a cash buyer, ask them for proof of funds.  If they’re negotiating a short sale on your home, they will typically need to provide proof of funds to the bank to get the short sale approved.  If they really are cash buyers, they shouldn’t have a problem providing proof that they can actually purchase your home.  If they don’t want to show you their bank account balance, sometimes seeing proof of other recent cash property purchases they’ve made can be sufficient.

While the information here may apply in most situations where an investor is offering to help stop foreclosure, it’s difficult to condense all possible scenarios into a single blog post and address every exception.  I encourage you to seek legal counsel from an attorney if you have any legal questions.  Also, I would be happy to share my experience if you contact me.

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Authored by David Monroe, Realtor and Pre-Foreclosure and Short Sale Specialist.
Access Seattle area short sale help and foreclosure resources including selling in foreclosure, and 8 Ways to Avoid or Stop Foreclosure.

Copyright (c) 2009 by David Monroe (Home4Investment Team at Keller Williams Seattle Metro West).

David Monroe | Masterpiece Properties, LLC | 206-905-8590 124 Warren Ave N, Seattle, WA Historic Condo in a Superb Queen Anne Location 1BR/1BA Condo offered at $164,500 Year Built 1930 Sq Footage 711 Bedrooms 1 Bathrooms 1 full, 0 partial Floors 3 Parking Unspecified Lot Size Unspecified HOA/Maint $316 per month DESCRIPTION Superb Queen Anne location 2 blocks from Key Arena and Pacific Science Center, and a short walk to Seattle Center. Classic brick architecture, inviting courtyard entry, and a quiet low-traffic tree-lined street. This is one of the larger units in the building, tastefully updated over the years while retaining the classic 1930's charm. Building includes a furnished community den and rec room, laundry room, and additional storage. see additional photos below PROPERTY FEATURES - Hardwood floor - Dishwasher - Refrigerator - Stove/Oven - Microwave COMMUNITY FEATURES - Laundry on-site OTHER SPECIAL FEATURES - Walking distance to Seattle Center. ADDITIONAL PHOTOS Building Entry Kitchen Bathroom Bedroom Interior Entry and Hall Exterior Landscape Exterior Landscape Front Landscape-Pond Exterior Landscape-Front Contact info: David Monroe Masterpiece Properties, LLC 206-905-8590 For sale by agent/broker Equal Opportunity Housing Posted: Nov 12, 2009, 12:23pm PST

Did you find this property using a search engine or a link from another website?

If so, consider this:

• In addition to you, many other buyers are also seeing this property online.
• If you have a home to sell, I will use the same marketing strategies to give your home the best exposure to potential buyers, helping your home sell quickly at the highest possible price.

Posted by David Monroe, Realtor and Pre-Foreclosure and Short Sale Specialist.
Access Seattle area short sale help and foreclosure resources including selling in foreclosure, and 8 Ways to Avoid or Stop Foreclosure.

Copyright (c) 2009 by David Monroe (Home4Investment Team at Keller Williams Seattle Metro West).
Historic Queen Anne Condo For Sale, Seattle, WA