A Positive Step Forward with RSVP Real Estate

After 37 years and over 400 closed transactions I still find innovation and new ideas exciting and paramount in representing the interests of those people that I am honored to help find or sell their homes. The real estate market and marketing is constantly evolving. Keeping up with the cutting edge tools is important in helping my customers. This includes the latest technological tools.

RSVP Real Estate shares that belief and therefore I am now part of that team.

Seattle Magazine has named RSVP Real Estate a "5-Star Best of Seattle" brokerage in their magazine. We are honored to be recognized in this manner because we were nominated by recent home buyers and sellers for this award. Additionally, we were listed as one of the top real estate brokerages in the Puget Sound area by the Puget Sound Business Journal.

I am excited about the change. Using the new tools available to better serve those who want the latest technology coupled with the experience and personal touch that I provide is exhilarating.  The technology includes market updates and other information you need to keep up with the local real estate market. Therefore please send an email to me so I have your email address. I promise not to send ‘junk mail’ or provide your email to anyone else. Saving some trees in the process is a benefit to use all.

Feel free to contact me at jim@jimbiava.com. My new website is under construction and I will announce it once it is available. Thank you.”

Now That's a Recovery!

Wow the local real estate market has come roaring back! One look at the current stats that came out last week shows the market is back to the same supply and demand levels of 2006. Below are the comparisons of the market trend from 2006, which was the busiest time with little supply and high demand, and the current stats.

I see the demand staying high because of the amount of people that have put off buying when the market was so uncertain. The supply will be challenged by the demand because back in 2006 there was lots of new construction vs now when builders are just starting to build again. Notice the new listings which is the blue line on the graph. The supply of listings is also down tightening the market that much more. Conclusion is we need inventory and if you are planning on moving in the near future you might want to think about selling now when demand is high and supply is tight. Call me if you want to more specific details on your home.

Check out the market trends below and let me know if you have any questions or concerns.

We’re #5! We’re #5!

The latest statistics mirrors what I’ve been tracking locally about the housing demand and the supply of homes available. I see this continuing because the economy has been steadily improving. Five years ago the housing market, as well as the economy in general, was at the precipice of a much bigger fall. The latest consumer confidence index is rising and Americans spent more in the last quarter than any one quarter since the 2^nd Great Depression started back in Spring of 2007.

Here is the link to the report:

Realtor Mag: Top 10 ‘Turnaround’ Housing Markets

The Silent (?) Killer

This post is not about local real estate but another matter of significant importance to me and should be important to some of you too.

My Dad passed away last week. Part of what got him was untreated sleep apnea. Sleep apnea is something that is not to be ignored. More people have it and don’t do anything about it. I know I am one of those people who didn’t think it is/was a big deal and ignored it for many years. Luckily I learned from my Dad’s misfortune because when he was in the hospital last March for a couple weeks I saw firsthand what it does. I knew that I had to use a cpap machine. I’ve tried several times over the last 10 years and just couldn’t get used to it. I tried using a different mask called a “sleep pillow”. It is very easy to use and learned that my cpap is my friend. It is not that difficult to use. Some people just blow sleep apnea off as loud snoring and that is so wrong. If you are a snorer or if your significant other notice if you are holding your breath or breathing very shallow IF SO HAVE IT CHECKED OUT! It is not something you will win. It is a silent killer to the person with sleep apnea. To the person’s bedmate it is snoring then waiting while the person holds their breath to finally take a breath. Seriously if you snore at least mention it to your doctor. And guys don’t be too macho to mention it like it can’t affect you because the grim reaper doesn’t speak macho.

 Rest in Peace Dad.

Are We Back to the Future in Local Real Estate?

When the statistics came out last week for the month of September something jumped out right away. The graphs below are for single family homes in West Seattle. One graph covers February 2006 through July 2007. The height of the market occurred in 2006. March of 2006 had only 232 homes available (supply) and 200 pending sales (demand).

Contrast those numbers with August 2010 which had the most homes on the market (supply) at 655 active listings and  only 89 pending sales ).

Now check out the latest stats which include May 2011 through September 2012.. Notice the months of February, March, April, and December of 2006 along with January of 2007 look a lot like the last 3 months of July, August, and September of 2012.

It’s Time for Americans to “Wake the F*#@ Up!"

The housing industry is the engine that drives the economy. It has long ripple effect which benefits millions of other jobs. When people have more income they spend it. They go buy new shoes, they go out to dinner, buy furniture, appliances, roofing, and on and on. Don’t forget that the shoe salesperson, the furniture manufacturer and delivery drivers also prosper. Add into that group the companies that make the products have employees with families to feed. Their suppliers are another level of industry. The waiter/waitress makes more for their family and the ripple effect continues to drive the economic engine. Without home ownership this ripple effect stops and the economy stalls, homeowners lose equity (money) from decreased value.

The home mortgage interest deduction is an important tax deduction for millions of homeowners. Let’s look at some real numbers for real people. An average home here in Seattle is approximately $400,000. Let’s look at the savings for the homeowner who is financing 80% of the home at a 30 year loan with a fixed interest rate of 4% in the 28% tax bracket. To figure out how much this means to the middle class our example looks like this: $400,000 x .04 = $16,000 in interest deduction per year.  The property taxes are also deductible and in our example the tax on that home would be in the range of $4,000. Therefore the homeowner can deduct the $16,000 + $4,000 = $20,000 total income deduction  Now take 28% of $20,000  deduction and the homeowner receives an annual tax savings of $5,600 which is $466 per month into that middle class’s family pocket. And we all know that money will be spent on consumer goods.

The Defense Department’s budget is $800 billion to $1 trillion per year to support 700 military bases around the world. Each week we spend $2 billion just for the two wars. For every dollar that you send in for your income tax 53 cents (53%) of it goes to the military. This doesn’t include money for the CIA.

To put millions, billions, and trillions into perspective consider this. If you spent $100,000 per day it would take you 10 days to spend a $1 million, 27 years to spend a $1 billion, and 27,000 years to spend a $1 trillion.

Any proposal by any political party that calls for the elimination of the mortgage interest deduction which saves middle class taxpayers about $80 billion per year and bolsters the economy should not be supported. There are many more avenues to achieve fiscal stability, we still give hundreds of millions of dollars in tax breaks for huge multinational companies, there is massive waste documented in the pentagon budget.  The people at the top are raking in more money; the people on the bottom are getting poorer, when more of our brothers and sisters are living in tent cities, then leave the middle class alone! Regardless which political philosophy one choses to quote Samuel L. Jackson in a new video regarding the election, it is time for Americans to “Wake the f*#@ up!

Will Everyone Have to Pay a 3.8% Tax When Selling Their House?

I’ve just received yet another chain email regarding the rumor about The Affordable Care Act, aka Obamacare. The claim states that everyone will have to pay a 3.8% tax when you sell your house. This is part of the attempt to scare and it has succeeded with some people. No matter which side of the political spectrum one is on it always pays to check the facts for yourself.

What the law says is according to Politifact.com and FactCheck.org is the health-care plan does include new taxes. One of them is a 3.8-percent tax on home sales by the wealthy and won’t affect the vast majority of sellers or buyers.

Here's why.

The tax does not apply to individuals with an adjusted gross income of under $200,000 in the year the sale takes place. Nor does it apply to couples with an AGI below $250,000. The amount a person (or a couple) makes on the sale is not included in the income calculation.

That rule alone eliminates the tax on more than 97 percent of tax returns.

Even if the seller exceeds the income limit, the tax only applies to the profit from the home sale, not the sales price itself. That's why it's not a sales tax, as it's sometimes characterized.

There is more to this story that can be read at

 http://www.politifact.com/rhode-island/statements/2012/jul/15/vincent-buddy-cianci/talk-show-host-buddy-cianci-says-obamas-health-car/

FactCheck.org has researched it and here is their conclusion under the heading “A 3.8 Percent “Sales Tax” on Your Home?”  Check out the details at

http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/

There is no Santa Claus, no Man-in-the-Moon, and certainly no provision in The Affordable Care Act which says everyone who sells a home has to pay a 3.8% tax. Period.

Notice to Builders Regarding Home Buyers



The builders are back at it. Drive around any area of Seattle now and you will see homes being demolished and a new home being built in a short time. This is great for the economy because as housing goes so does the Nation’s economy.

The problem from my viewpoint and experience is builders should be building some single level homes because there definitely is a market for them. The baby boomer population is aging rapidly, at least one day at a time, and they are having a hard time finding homes with little or no stairs. In West Seattle, for example, if you want to buy a one level home most likely will have to choose between this 1940s built “war house” or that 1940s “war house”.  These homes are typically 2 bedrooms, one bath and from 720 sq ft to 800 sq ft.

One recent transaction saw a one level modular home that was in “fixer” condition was purchased and flipped. This home is located just west of the Alaska Jct. I saw it come on the market at $550,000 and knowing the market my first thought was this home will be on the market for a long time. Two days later there was a “Sold” sign on it. Figuring the home would need to pass the appraisal process it would ultimately sell for less. Much to my surprise, and that of every agent that is familiar with the home, was surprised to find that is sold not for the asking price of $550,000 but actually closed for an all cash price of $575,000.  Not everyone wants a huge 2-story home that takes up most of the lot.  

Builders take notice that you are missing an opportunity for what would be a very lucrative niche market because of the growing number of us aging people, and that include all of us.             

Look Before You Leap: Cost vs Value

National Cost vs ValueHave you ever wondered how much value a kitchen remodel added to your home vs how much that new kitchen costs? More and more homeowners are taking on remodeling projects. Some are upgrades, some are new additions, and some are necessary replacements. This site is a plethora of information about remodeling. Remember to look before you leap!

Here is a link to finding the cost vs value for the entire nation

National Cost vs Value Data

You can "drill down” to find it or use this link to jump directly to Seattle

Seattle Cost vs Value Data 

Are Home Prices Too High??



After reading a few questions on another site’s blog regarding, “Are home prices too high?” and the subsequent comments peeked my interest. I hear and read frequently that same question. Let’s look at how it is in the “real world” of real estate prices which is basically the same as selling a car, a suit of clothes, or a loaf of bread.

If I want to buy a suit of clothes and the store is asking more than I think it is worth I will pass it up and not buy it for their price. A clothing store has set prices and we in this country do not bargain like some other cultures. The same is true with that loaf of bread.

However, buying some items like a home or a car it is not uncommon for buyers and sellers to negotiate at “an arm’s length agreement” as it is called. In other words if the buyer doesn’t want to pay the asking price then they make an offer which the seller can either accept, reject, or make a counter offer to the buyer. When an agreement on the price is reached between the parties then that is the value of the home. If no buyers are interested in the home then the “asking price” is too high and the home sits on the market until the seller adjusts their asking price closer to the actual current market value. As supply and demand ebbs and flows so do the market values. That is one reason why home values fluctuate and timing, just like location, is critical.

If the home is financed with a mortgage then the lender sends out an appraiser to protect the lender’s stake in the property. The appraiser is looking for similar homes which have recently sold to justify the value to the lender.

Home values are set by demand for that home which is in direct proportion to the amount of supply at any given time. Example if there is one buyer and 10 homes then due to the number of homes (supply) the value is lower. On the other hand if there were 10 buyers and one home the price would be higher.

So when you hear that question,” Are home prices too high” now you can put that into proper perspective and make it work to your advantage.

A Way Out of the Foreclosure Mess??

The chief executive of San Bernadino County is thinking out of the box when it comes to a solution for the massive amount of foreclosured homes in his county. Check out his ingenious idea that helps homeowners big time and makes the bankers see red. Read the full details by clicking on this link:
A Way Out of the Foreclosure Mess??

Money Magazine: What is Your Home Really Worth?

Here is an informative look through an appaiser's eyes from Money Magazine:

NEW YORK (Money Magazine) -- When it comes to assessing a home's value, real estate agents and homeowners tend to be an optimistic bunch.

In the post-bust world, appraisers are a different story. They have to predict a realistic value for your home that the bank can use to extend credit to a borrower -- and that number can make or break your sale or refinance.

Appraisers say the following five areas are where homeowners often misjudge the worth of their abode.

1. The outside

The appraiser sees: Overgrown bushes and chipped paint.

What he does: Slices as much as 3% off the value of an average-size home.

Why: Curb appeal is primo. And an unkempt yard is a sign that there may be other issues.

"A good-looking lawn and bushes imply that you also take care of the internal systems in the house," says Jonathan Miller, president and CEO of a New York City-based appraisal firm that works throughout the tri-state area.

Moreover, the more meticulous your neighbors are about grooming, the more your appraiser will downgrade the value of your home.

"If a lot of the nearby properties are professionally maintained, the one that sticks out like a sore thumb will get a harder adjustment than in a subdivision where there's more variation," says San Diego appraiser Armando Ortiz.

2. Basic systems
The appraiser sees: A brand-new roof.

What he does: Nothing.

Why: Just as a knee replacement won't make you look 20 years younger, a new roof, furnace, or boiler isn't considered an improvement to your home.
That said, if your roof is in disrepair, replace it: Signs of leaks or discoloration can knock a significant amount off the home's value.

"When people buy a home, they expect the roof to be working," says Columbus appraiser Mike Armentrout. "So while a new one isn't an added feature, it will help your chances of a sale."

3. The basement
The appraiser sees: A recently finished basement with a half bath.

What he does: Adds about 2% to the value of the home.

Why: Yes, your finished basement adds value -- but don't expect it to count like first-floor space.

The addition of a bedroom and quarter bath on the ground floor could increase your home's value by up to 20%, especially if you've got only one other bathroom.

"A below-ground basement normally isn't included in the square footage of the house," says Miller.

The same rule applies to outbuildings like a pool-house casita, painting shed, or studio.

4. The market

The appraiser hears: Two nearby homes just went into contract above their asking prices.

What he does: Nothing.

Why: While a broker might pump up a home's asking price based on the sense that the market is "hot," by and large, appraisers are bound by the data of recent comparable sales.

What if prices are suddenly up in your area, and you're nervous that your house won't appraise for contract price? In that case, you might want to delay your appraisal until one of those recently contracted sales closes.

5. A remodel

The appraiser sees: An expensive, custom-made, built-in entertainment center.

What he does: Makes a negative adjustment to the valuation.

Why: "Cost doesn't equal value," says Miller.

Renovations that are at all trendy -- or not in keeping with the historical period of the home -- will be assessed at the cost of ripping them out.

Timeless improvements, on the other hand, such as a deep sink or new wooden cabinets in the kitchen, will add value.

So if you're thinking of remodeling, ask a local real estate agent to tell you what's on the wish list of today's buyers.

Maintenance Jamboree will Spruce Up Lincoln Park

West Seattle is home to one of Seattle’s most picturesque parks, Lincoln Park. Unfortunately due to budget cuts our parks are showing signs of neglect. Luckily many West Siders will be doing their part in preserving our slice of heaven in this year’s Maintenance Jamboree the week of September 17^th.  Helping out gives one the satisfaction of doing their part to help our community.

Read more details by clicking on the link: Maintenace Jamboree will Spruce Up Lincoln Park

Builders: Permits Up Strongly as Housing's Recovery Takes Hold

"The market for new construction is back on track" the article starts out.

If you’ve followed my posts you know by now that ‘all real estate is local’ and the national stats don’t necessarily reflect our Seattle market. However, take a drive through the neighborhoods and you will see new homes going up all around. Small older home are being replaced with modern homes that are ‘built green’.  Check out the full story by clicking on the link below.

Link:  Permits Up Strongly as Housing's Recovery Takes Hold

Bloomberg News: Republican Platform Won’t Protect Mortgage Tax Deduction

 Bloomberg News: Republican Platform Won't Protect Mortgage Tax Deduction
Home ownership provides stability in our communities, and gives one a sense of belonging to their community. It fosters that independent feeling of owning a piece of land to do as one wishes without landlord restrictions. The renter is subject to rent increases while a home owner with a fixed rate mortgage will not see those periodic increases. Owning a home develops "roots" in the community for one's family and the community at large. It fosters creative instinct with design and personality style, and provides a certain peace of mind. Who doesn't love the feeling of pride and accomplishment when entertaining friends at your home?

The home mortgage interest tax deduction is a huge benefit to the middle class. In general terms it saves the average taxpayer with a $400,000 home loan at 4% (here in Seattle the average home is about $400,000) about $4,480 per year in taxes. That is $373 per month. In addition to the interest deduction the property tax is also tax deductible and increases the average savings per month to $467. This is a much needed benefit for the middle class to keep them in the midddle class. Many retirees now and more so in the near future will use the equity in their homes for retirement by using reverse mortgages to supplement their income and keep them out of poverty.

Home ownership drives the economy because for each home sold an average of 3% of the price of a home is spent in the economy for fix up items, appliances, furniture, roofs, paint, carpets, patio furniture, and the list goes on and on. Factor in all the ancillary jobs like those that deliver, mine, process and build causes a ripple effect that goes on and on. Closing loopholes on off-shore accounts, deductions for luxury yachts and corporate jets should be eliminated not something that benefits the vast majority of Americans. To include this in any party's platform is irresponsible, immoral, and mean spirited. Following is the article:

Source: Bloomberg News/Business Week

Republican platform drafters refused to put their party on record for preserving the mortgage- interest deduction, giving Mitt Romney more flexibility to promote his plan to lower tax rates paid by corporations and the wealthiest Americans without increasing the federal debt.

The platform panel, meeting in Tampa, Florida, in advance of the Aug. 27 Republican National Convention, defeated a proposed mortgage deduction amendment by a show of hands as it moved toward today’s scheduled completion of the draft statement of positions the party will offer voters in the November election.

The document, which was also amended to include a call for Federal Reserve audits, will be submitted next week for approval by the full convention.

The mortgage interest vote was a shift in Republican policy from four years ago, when the party platform said that “because affordable housing is in the national interest, any simplified tax system should continue to encourage homeownership, recognizing the tremendous social value that the home mortgage interest deduction has had for decades.”

West Seattle, Washington Part 1

West Seattle has many diverse neighborhoods. This slideshow highlights a few of the neighborhoods of the peninsula of West Seattle. It is a mostly middle class neighborhood with streets of well-kept homes and offers many differing views. For complete demographics of zip codes throughout the United States including Genesee’s 98116 zip code please check out:

http://jimbiava.com/zipcode-demographics.asp#TPREPORTaction=OnSearchSubmit&search_for_primary_address=0&search_for_comparison_address=0&p_zip=98116&c_zip=

Enjoy the Slide Show!

First Prices and Now Rates

The home values in Seattle have appreciated about 10% since last year. Now the other component to a successful home purchase, interest rates, has also taken a turn upward. This is a double edged sword. The good news is rates are still in the 3% range. Since we are all procrastinators by nature we will be experiencing more buyers realizing now is the time to buy. Remember the housing market drives the economy. A study conducted a few years back shows the average buyer spends about 3% of the purchase price on consumer goods. Usually when someone buys a home they also buy paint, carpet, furniture, appliances, roofs, furnaces, and the list goes on.

Check out the Bloomberg article at  US Mortgage Rates Increase for the First Time in 7 Weeks

Seattle Night Out Block Watch Party Tuesday August 7th!

Tuesday evening is the Annual Seattle Night Out Block Parties. It is part of the National Night Out program. Many blocks have set up a Block Watch program through the Seattle Police Dept. When the perpetrators of crime know someone may be watching them they tend to avoid the homes in that block. The Block Watch program is an excellent way to get to know your neighbors and develop friendship and community awareness. If you have an active Block Watch I hope you will be participating in the fun next Tuesday.  If you would like to start one in your area you can find out the details at http://www.seattle.gov/police/blockwatch/default.htm .  For information about the Seattle Night Out go to http://www.seattle.gov/spd/nightout/

It is lots of fun!

7 Home Repairs You Just Can’t Ignore

Owning a house can be expensive, which is why so many homeowners procrastinate on repairs. Some fixes, however, should never be delayed. Ignoring these problems can result in much more expensive repairs later on - or even injury and death.

I've attended hundreds of inspections with the buyers I represent. Here’s what home inspectors say you should be on the lookout for:

A water leak -- anywhere
A stain on your ceiling. A toilet that rocks. White powdery stuff that grows on your bricks or foundation. A musty smell in your house.

Whatever the source, the culprit is water, and the damage can be severe. Left unchecked, leaks can lead to rot, dry rot, mold and termite infestations. Water can cause roofs to collapse, foundations to buckle and all manner of expensive repairs. What’s more, water-related problems can get your home blackballed by insurance companies worried about the soaring number of mold related claims nationwide.

The fix:
Stop the leak by any means necessary, repair the damage and take the required steps to make sure the problem doesn’t reappear. Minor roof leaks, for example, can be patched with roof cement, but if your roof is aged and failing, you may need to have it replaced. That’s expensive, but not as bad as replacing the trusses and underlying roof structure that can rot away if not protected.

Flickering lights
Do your lights dim when the fridge switches on or you crank up the microwave? You may have bad wiring or too many appliances hooked on to one circuit. Either one can cause a fire. Flickering lights also can be a sign of failing connections in aluminum wiring, a feature in homes built in 1965 and 1973.

The fix:
You can try to distribute power hungry appliances more evenly, by not running more than one at a time or by plugging some into another circuit. But the best fix is a cure: Get an electrician to upgrade your wiring, add more circuits, or both. If you have aluminum wiring but can’t afford to upgrade, the U.S. Consumer Product Safety Commission recommends making your wiring safer by using special crimp connectors rather than the usual twist-on style.

Rodent incursions
If you hear the pitter patter of little rodent feet, don’t turn up the stereo to drown them out. It’s not just that rodents can carry disease and make a mess nesting in the tax records you’ve stored in the attic. Rats, mice, and other vermin love to chew through insulation and wiring, and are suspects in many house fires.

The fix:
Use traps and bait products or call in an exterminator. Mice droppings can carry the deadly Hantavirus, and rodents themselves can carry everything from salmonella to the plague, so professional help might be the wisest course.

Soaring fuel bills
If you are paying a lot more for gas or oil and there hasn’t been a rate hike recently, the culprit could be problems with your furnace. This is more than a pocketbook issue, since poorly functioning systems can cause deadly carbon monoxide buildup in your home. The Consumer Product Safety Commission estimates about 200 people die annually from carbon monoxide exposure in the home, typically from malfunctioning heating systems.

These are just some of the problems that arise. If you would like more information or a personal home consultation please contact me.

Do You Know West Seattle Neighborhoods? Part 2

As discussed in a previous post West Seattle like all of the different areas of Seattle is made up of different neighborhoods. 

The West Seattle peninsula is a very diverse area of Seattle.  The Delridge Valley is the corridor of growth because of the availably of property zoned for multi-use purposes.  To the east of the Delridge Valley is Highland Park with its nice and varied residential neighborhoods.  Riverview along with parts of Highland Park have a more rural feel which means less urban villages to within walking distance but afford privacy and space. Highpoint is an award winning green development with a diverse population, pea patches and a strong community organization. Roxhill has shopping centers and various activities as well as nice affordable homes. 

North Delridge includes Youngstown, near the steel mill, is conveniently located with easy access to the West Seattle Bridge and the freeways. Youngstown was one of several small communities, along with Alki, Freeport, and Admiral, that made up West Seattle a hundred years ago.

These wonderful neighborhoods along with the west half of WS, which was featured in a previous post, make up a wonderful mosaic of people and homes. That is why thousands of West Seattleites, including newcomers, 2^nd and 3^rd generations, proudly love to call West Seattle home.

Oh How Times Have Changed

The real estate industry, like many others, has drastically changed the way business is conducted. Flash back to 1975, when I started out in my career, there were no fax machines, cell phones, I pads, or computers. When we had a buyer make an offer to a seller who lived in another area we simply hopped in the car and drove to present the offer to the seller. I’ve driven to Ocean Shores, Bellingham, Snoqualmie Pass and other destinations to meet with the seller. Then came the use of Western Union whereby the seller would send a short telegram of acceptance which would be followed up with the original documents being mailed out for signatures.

 Nowadays to keep up with the changes in the real estate business we have information literally at our fingertips. In fact buyers have the updated listings instantly. Here are a couple photos of the old listing books which came out weekly then bi weekly before the computer age made them obsolete. Keep in mind this information was outdated the day we received it. Each morning a courier would deliver the updates in the form of a bulletin. As Bob Dylan wrote many years ago…the time’s they are a changin. The only thing that doesn’t change is change itself.

Do You Know West Seattle Neighborhoods?

West Seattle like all of the different areas of Seattle is made up of different neighborhoods. Names describing the neighborhoods like Genesee, Seaview, Gatewood Hill, and Arbor Heights are used in marketing. Most people I know, including Realtors, don’t know the boundaries of each area. The map below defines the various and unique districts that we call West Seattle. This map is a benefit to you when you are looking at ads for homes that include descriptions like “North Admiral Charmer” or “Fauntleroy View Home”. This is the west half of West Seattle. Next time the focus is on West Seattle’s east half.

A general rule of thumb is the farther west and north areas are the expensive areas because of the desirable amenities within the area. North Admiral has some of the first homes were built in WS about 100 years ago, shopping, restaurants, services, and viewpoints are an easy walk. The access to the WS viaduct and Interstate 5 is just down the hill.  The Alki neighborhood has the beach and beach community.   Arbor Heights, another wonderful neighborhood, is a bit farther from the amenities. However it has an easy access to highway 509 and 99 which merges onto Interstate 5 near Southcenter thereby bypassing the more clogged area of Interstate 5 closer to Seattle.

I’ve lived in WS since 1966 and intimate knowledge of the area. If you have any questions at all please let me know. I’ve only described a few neighborhoods but if you want to really know them then you would find it very beneficial to take my One Hour Tour of West Seattle.

Owning a Home is More Than Just Owning a Home

Owning a home provides much more than just a roof over one’s family. It is the single biggest asset most people have at retirement time. It connects you to your community. Owning a home is more than just owning a home. It provides stability, education of values, prices, contracts, and maintenance.  Making your monthly investments provides stability and improves one’s credit standing.  The homeowner has the security of knowing the loan conditions are set because as long as the payments are made the home is yours. The tax savings is significant. A renter will face rental increases throughout the years and the landlord may want possession of the home.

Home ownership improves citizenship, and independence. Owning a piece of land, your own home, means not having to ask your landlord for permission to hang pictures. I remember buying my first home when I was 22 yrs old and thinking how it was mine. If I wanted to get up one day and tear down a wall I could! Even though I didn’t I could and didn’t have to ask anyone for permission. Home ownership helps build character by learning to maintain your home as well as foster your creativity in remodeling, fix up, and landscaping. Finally, it is just fun having a place that friends gather and meet. They do that at your home which gives the chance to showcase and be proud of your home. These are some of the reasons they call it Pride of Ownership.

A Funny but True Story

An agent who shall remain nameless, no it wasn’t me, had a very interesting time one day previewing homes.  This agent picked up the list of brokers open houses that the office made available to the agents each day.  He went into a home which had lots of people there and some food was being served. This is not uncommon for a broker’s open house.  The agent proceeded to eat some food then started to walk upstairs when asked by one of the people, “were you a friend of the deceased?”  The agent apologized and upon looking at the brokers open house list saw it was for the previous day.  The “broker’s open house” it turns out, was actually a memorial service.  

Where Should You Put Your Money?

Here is an interesting chart from MSM Money.com, Case Shiller.  This report is not a prediction but what actually happened between January 2000 and June 2012. It shows cash on cash return.  In other words when buying a home for $300,000 a buyer puts down $15,000 (5%) to $60,000 (20%). When the home appreciates by 5% then that home is worth $315,000. That is a gain of $15,000 return on one’s investment. If $15,000 which equals a return on investment of 100%. Putting $60,000 down that 5% appreciation equals a return of 25%.

This differs from investing in the stock market which requires full payment for any stock investment.  That same $15,000 in stocks with a 5% return means the investor has gained $750. The $60,000 invested would mean a gain of $3,000.

In addition normally there will be taxes to pay when selling the stocks. Selling one’s personal residence would result in a taxable event if the gain is more than $250,000 for a single person and $500,000 for a married couple.

How “Walkable” is Your Neighborhood?

Real estate has changed over the years. Back in the mid-1980s Seattle proposed Urban Villages, areas of development within the community. As an example, West Seattle has many including, Endolyne, the Alaska, Admiral, and Morgan Junctions. Some are small and some larger. These are places where one can walk to and enjoy the amenities. Back then it caused a big stir locally because as the naysayers put forth “we don’t want to be told what to do” mentality. Now people want to live close to them and will pay more for the convenience.  Click on the link below to see your neighborhood’s walk score.

Link:  Find your walk score

Have the Underwater Homeowners Turned the Tables on the Banks?

Here's a very interesting and very real developing demographic from an unlikely place. The article addresses the political and ecomonic clout the underwater homeowners carry when organized. Click the link below to see the whole article.

40 Million Strong:Underwater Homeowners Can Fight and Win....If They Get Organized

Actual Factual Seattle Home Statistics

I like to watch statistics and trends so today I updated the different areas in Seattle. You can see the difference since last year. The “Pendings” section includes both Pending inspection and Pending sales combined. The "Sold" homes are closed sales for the last 6 months.

Notice the changes in the inventory and prices from last year. Less homes (supply) and more buyers (demand) are pushing the prices up again.

On a side note the interest rate on a 30 yr fixed rate is currently 3.625%. Let’s use the example of a buyer who qualifies for a $300,000 mortgage at 3.625%. They will make the same payment at 4.625% but will get them a $266,000 mortgage. Just a few years ago a 5.625% loan was considered a great rate. However that 5.625% rate would mean a loan of only $237,000 for the same payment as a $300,000 loan today. That is a huge difference in the kind of home and location. Why wait call today to find out more details and to see how much home you can afford.

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What I Love about Living in Seattle

My family moved to West Seattle in 1966 and I never left. Here are some reasons that I love living here.

What are your favorite things about Seattle?

What to Believe?

It seems like every other day we read in the national and local media that the real estate market is stagnant. Then we hear that things are picking up and the values are going up in some cities. Then we hear that housing starts are down. Next the increase in sales volume month over month is increasing.

My head is spinning is yours too?

I can’t tell you what the market is like in Tennessee, Vermont, Idaho, Nevada or even in Olympia because it is not in my market place. What I can show you are the current stats that have just come out today for Seattle, the market that I know well. Check out the two charts below.

Here is a portion of the article from the Seattle PI on Tuesday, June 05, 2012:

“Rising sales and low inventory helped push Seattle house prices up by 10.5 percent in May from a year earlier, according to a new report. The median price of a house in the city was $425,500 in May, up from $385,000 a year ago, the Northwest Multiple Listing Service reported. The median price was just $500 lower this April. The King County median house price was $362,000, up 4.9 percent from May 2011 and 0.6 percent from April 2012.

Sales of houses and condos rose by more than 24 percent from last year in the city and county. Pending sales, which don't all close but can be the best indicator of recent activity, were up by 16.2 percent in Seattle and 22.5 percent countywide. Meanwhile, the number of homes on the market dropped by more than 40 percent in the city and county. That amounts to 2.1 months worth of inventory at the current sales pace in Seattle and 2.5 months worth countywide, down from 4.3 and 5.2 months of inventory a year ago.

Things that are in good condition are selling, they're selling quickly, and they're selling at good prices, from the seller's point of view," said Glenn Crellin, associate director of the Runstad Center for Real Estate Studies at the University of Washington.

So the bottom is clearly past, right?"

Click on the “Local RE Stats” tab on this site to see the most current actual statistics for King County, the City of Seattle, West Seattle, Burien/Normandy Park, Downtown/Belltown, Queen Anne/Magnolia, Ballard/Greenlake, U-District/North Seattle, CD/Capitol Hill, Beacon/SODO, and SE Seattle/Seward Park. How is your neighborhood doing?  What are your thoughts and predictions?

Seattle's Economy Looks Promising

Seattle economy ranked third strongest in U.S. over long term – Puget Sound Business Journal

The Seattle-Tacoma-Bellevue metropolitan area economy ranks as the No. 3 strongest in the nation, as measured by independent economic research firm Policom Corp.

Policom bases its rankings on the longer-term performance of city economies. The study measures 23 different economic factors over a 20-year period, determining how an economy has behaved over an extended period of time with data from 1991 to 2010 used in its latest rankings.

The strongest economy according to the ranking was the Washington, D.C., metro area, followed by Des Moines, Iowa. Nashville and Austin round out the top five after Seattle.

"The top-rated areas have had rapid, consistent growth in both size and quality for an extended period of time," Policom president William Fruth said in a statement. "The rankings do not reflect the latest hot spot or boomtown, but areas which have the best economic foundation."

Salt Lake City, Madison, Wis., Kansas City, Sioux Falls, S.D., and San Antonio round out the rest of the top 10.

via Seattle economy ranked third strongest in U.S. over long term - Puget Sound Business Journal

The Increasing Housing Prices

Here is more evidence the housing sector , along with other parts of the ecomony, is improving. To see the bottom of the Seattle market look in your rear view mirror. To check various areas of the Seatle market go to the "Local RE Stats" tab on this website.

7 Metros Where List Prices Soared Last Month | Realtor Magazine

Nationwide median list prices rose more than 5 percent in March compared to February, according to Realtor.com housing data of 146 markets. The median list price nationally is now $189,900.

In fact, nearly all of the 146 metro areas saw median list prices rise or hold steady month-over-month except for five metros (Columbia, Mo.; Melbourne-Titusville-Palm Bay, Fla.; Minneapolis-St. Paul, Minn.; Fort Collins-Loveland, Colo.; and Reading, Pa.).

The areas seeing some of the largest month-over-month increases in median list prices are:

1. San Francisco

Month-over-month increase: 6.10%

Median list price: $649,000

2. Washington, D.C.-Md.-Va.-W.Va.

Month-over-month increase: 5.92%

Median list price: $270,000

3. San Jose, Calif.

Month-over-month increase: 5.57%

Median list price: $495,000

4. Oakland, Calif.

Month-over-month increase: 5.04%

Median list price: $336,120

5. Seattle-Bellevue-Everett, Wash.

Month-over-month increase: 4.97%

Median list price: $314,900

6. Toledo, Ohio

Month-over-month increase: 4.90%

Median list price: $104,900

7. New Haven-Bridgeport-Stamford-Danbury-Waterbury, Conn.

Month-over-month increase: 4.29%

Median list price: $365,000

The metro areas that have seen the largest jumps in median list prices over the year include Phoenix-Mesa, Ariz. (a 23.45% increase in list prices compared to March this year to March 2011); Miami (a 22.27% increase), and Boise City, Idaho (a 19.73 percent increase), the Realtor.com data shows.

via 7 Metros Where List Prices Soared Last Month | Realtor Magazine.

Why Do You Think This Home Sold For So Much?

There is a home in the Seaview area just up the hill from the beach via Jacobsen Road SW. It sits one home in from the 4 way stop at the corner of 49^th Ave SW and SW Hudson Streets. This modular home was built in 1987. The house needed lots of remodeling and updating when it sold for $265,000 back on August 26, 2011. The buyers bought it to flip it. And flip it they did! The oversized double garage was redone and part of it was converted to living space still allowing room for 2 cars. They also built an enclosed walkway from the house to the room in the garage. The county records show 1,430 sq. ft. and the listing shows 1,910 which includes the room in the garage.

I saw the listing in the mls for $549,950. I thought to myself why it was listed so high and that all things considered, the market values, the location at a 4 way stop on an arterial, the size and style of the home this will be on the market a long time. What a surprise to see it had a sale pending within a couple days. Surely the appraisal will be lower. That is something we will never know because the home sold for $575,000 cash! That is $300/sq. ft. while the other comparable homes closed for $200/sq. ft. A bigger and new craftsman home a block away sold for $215/sq. ft.  I phoned the listing agent and had to ask about it. He said there were 4 offers.

After scratching my head I thought of why it went for so much more than other homes. I concluded the main reason was because it had a lot of sq. ft. and all on one level.  Secondarily it appeared to be a quality remodel in a good neighborhood.  Why do you think it sold for so much?

Does This Surprise You?

Many people stung by the real estate bubble bursting haven’t yet realized the market has greatly improved. Listening to the national news or even the county real estate updates is irrelevant here in the city.  The chart below graphically shows how the inventory (supply) has shrunk. This chart depicts only single family homes in West Seattle.  While the pending sales (demand) has steadily risen over the past couple years. The value of any product is determined by supply and the demand for that supply.

There are lots of buyers out now picking up some real bargains. Other buyers are waiting for the ‘bottom’ of the market and the only way to know when the bottom occurs is when it has already passed. Then you missed it. Waiting any longer to own your own home will be counterproductive because the prices haven’t taken off yet and the interest rates are in the low 4% range.

Sellers what are you waiting for?  There is a definite need good homes on the market now.  It is not unusual to see the pending sales with multiple offers and market times within a week. If you are ready to move now is the time. The market can change on a dime as we have seen. Take advantage of the timing of the market to make your move to a bigger home, to downsize, to an independent/ assisted living home, or just to “cash in your chips”.  Feel free to call, text, or email me to chat about your own personal situation.

I, and others, would really love to hear your story about an upcoming move or a recent home purchase or sale and whether it was a good experience or a negative one for you.

CNN Money: Buying a Home Won't Get Much Cheaper

"Buying a home may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.", CNN Money.

Locally here in Seattle there is a shortage of inventory and multiple offers are getting to me more common. The buyers that have brokers experienced in multiple offer situations representing them they get the good deals.Those waiting for "the bottom" are probably looking ati in their rear view mirror.


Read the entire article at  CNN Money:Buying a home won't get much cheaper

Home Path Program Saves Buyers Thousands of Dollars!

Fannie Mae owned foreclosed homes have some very attractive financing. They want to sell the properties because they would rather have the cash instead of the properties and therefore have them priced very competitively.  The Home Path Program has been out for some time but not many home buyers and/or brokers know the details. Here are the basic guidelines and benefits of the Home Path Program.

ü  All borrowers must have a credit score and either be a US citizen or a Green Card holder

ü  Buyers may not have more than 4 financed properties

ü  Manufactured homes are eligible. Condos and PUD’ are acceptable subject to underwriting review

ü  Flexibility to use conventional agency and high loan limits

ü  Co-borrowers/co-signers allowed. Please note if they will not be occupying the property then the LTV drops to 90%

ü  Home Path financing will allow the buyer to purchase a Fannie Mae owned property with NO PMI up to 97% financing

ü  15 and 30 year fixed rates are available and standard Fannie Mae guidelines apply

ü  NO APPRAISAL NECESSARY

ü  Contributions are allowed as follows: 

                6% of the sale price for any LTV greater than 75%

                                9% of the sales price for any LTV less than 75%

                                6% on all second homes

                                2% on all investment properties

ü  Contributions can be applied to closing costs including prepaids

ü  Home Path offers mortgage job loss protection. This free program will pay a borrowers mortgage payment up to two years in the event of layoffs, involuntary unemployment or job loss

ü  If buyers closing costs are under the 3.5% figure, then the buyer will not have access to the remaining balance

ü  For loan to value offer 80% the credit score must be 660 or higher. For LTVs lower than 80% the minimum credit score must be 620

ü  NO COSTLY MORTGAGE INSURANCE 

If you would like to take advantage of the Home Path Program please contact me to see if you qualify.