As the chart below shows, just a one-half percent difference in your interest rate makes a huge difference in your monthly payment. For example, when purchasing an $800,000 home with 20% down, a half-point difference is $181/monthly, $2,172/annually, or $65,160 over the course of a 30-year loan.
What does this mean for you?
If you’re a homebuyer, this is the time to get into the real estate market. With interest rates this low, you may be able to purchase more than you think.
If you’re a homeowner and considering a move, whether downsizing or to a new neighborhood or larger home, this is the time to do so. With interest rates so low, you’ll likely be able to afford more than you think.
If you’re a homeowner with no plans of selling in the next couple years and your interest rate is in the upper 4’s or higher, it might be worth talking to a lender about refinancing.
I have several excellent lenders that can help you determine what would be best in your situation, a refinance or a move. I would love to sit down and talk with you about your needs. Give me a call at 206-790-0081 or email me to schedule a time to chat.
Appraisals are one of the most confusing aspects of buying or selling real estate. When a buyer and seller agree on a sales price, it can be frustrating to hear that the appraisal came in with a value too low. It’s not enough for the buyer and seller to agree to the price, the appraisal is the lender’s way to ensure they are not loaning money over the actual market value of the property.
The appraised value is reached by a licensed professional who looks at the real estate market in which the target property is located. They start with the target property and then look for recent sales in the area of comparable properties. These comparable properties will be located within a short distance of the target home. They should also be of comparable size and often fall within the same housing development.
Once these homes are identified, the appraiser will adjust for the specific differences. For instance, does the target home have an upgraded kitchen or swimming pool? They add or subtract value based on such things as location, view, lot size, upgrades, additions, condition, and many other factors. They can then arrive at a valuation for the target home.
Once the appraisal has been completed, the lender is notified of the value. At this point, the loan amount is either confirmed or declined. If the appraisal comes in too low, the buyer and seller can choose to make up the difference in the sales price, lower the sales price, or cancel the transaction.
An experienced real estate broker will help you manage the appraisal process. By learning about recent sales in your area ahead of time, you can price your home appropriately up front; then the appraisal should come back as expected.
Several things stand out when looking at market statistics for the 2nd quarter of 2019.
There are a lot more condos and single family homes for sale.
For both condos and single family homes, prices are still down from the peak of 2018.
Days on Market is down for condos and relatively stable for single family homes.
It is important to note that we hit the peak of the market in May/June 2018. We have had a market adjustment since then, primarily driven by increased inventory. However, for single family homes, we have around 2 months of inventory, meaning we are still in a market that favors the seller.
This increased inventory is great news for buyers who have more choice in finding a home. We have seen some return to multiple offers but not at the pace we saw over the past few years.
With condos, in June we had just over 3 months inventory. The condo market is being driven by more condo projects under construction and being announced, meaning that the inventory level for condos should continue to rise. The increase in the number of available condos is great for buyers and home affordability—condos usually allow for buyers to get into the market at a lower price than for single family homes. In fact, my first purchase of a residential property to live in was a condo as that was what I could afford back in 1995.
The best news for both buyers and sellers is that we’re at a 12 month low for interest rates which are under 4%.
For more information on buying or selling, please reach out to me at Jamie@JamieFlaxman.com or (206) 790-0081.
The May housing market was hot. Not as hot as a year ago, but still at it’s strongest for 2019. In fact, in King County 70% of single-family homes sold in 15 days or less and 55% of single-family homes sold at or above list price.
With interest rates at the lowest they’ve been in over a year, at just under 4%, buyers are seeing that this is a great time to be in the market. One lender told me recently that she locked a client into a 30-year fixed loan at 3.75%.
You might have seen a news story recently that Tacoma is the hottest housing market in the Country. It’s not surprising that buyers are going further to find affordable properties – an analysis of NWMLS inventory at the end of May shows only 13.8% of the listings of single-family homes in King County had asking prices under $600,000. That compares to 25.6% in Snohomish County, 31.2% in Pierce County and 35.3% in Kitsap County.
King County prices for single-family homes show a 3.6% decline from a year ago, but are at the highest level ($699,998) since June 2018 when the median price was $715,000. Snohomish nearly matched last year, the highest for the year as well.
For more information on the market or your particular city or neighborhood, please reach out to me at (206) 790-0081 or Jamie@JamieFlaxman.com.
Home prices in the Puget Sound region have decreased over the past year. But I don’t see this as a cause for concern. There are more buyers in the market, interest rates are coming down, and we are seeing multiple offers again. I do expect that prices will rise this year, but not at the pace we’ve seen previously. Real estate is a long-term investment, so even if they’re down over the past year, in Seattle they are up 92% over the past 10 years.
You’ve signed the closing documents and taken possession of your new home. Your real estate broker hands you the keys and you’re excited to move on in. But there’s one thing you should do as soon as you get those keys, and it’s not moving in.
The first thing you should do is have the locks rekeyed!
You don’t know who still has keys to the property. The seller might have extras, the neighbor might have had a key for an emergency. Former roommates or adult children who have moved away may still have keys too. Contractors may have had access to a key as well. There have been countless people through the house while it was on the market, and while unlikely, a key could have been misplaced, stolen, or copied.
Rekeying is inexpensive and the best thing you can do to protect your investment, your personal property, and yourself. Even if you purchase a condo, you should have the front door rekeyed. With condos, you might have to have permission of the Homeowners Association and they may have a vendor they want you to use.
In rekeying, a locksmith comes to your home and changes out the barrels in your locks. They work onsite and will make as many new keys as you like. I have found that in the Seattle area, rekeying typically costs $100-$150 and includes 4-6 locks and includes a couple of keys.
Be careful and take this simple step to protect your home and yourself. For more information, contact me at 206-790-0081 or email Jamie@JamieFlaxman.com.
Do you feel like things are out of control? If you’ve listed your home for sale, every day might feel this way. But that’s not what we’re talking about here. The truth is there really are things sellers can’t control. But don’t worry; even though you can’t control everything, there are ways to deal with these unknowns.
Buyers – Oh if only we could control buyers. They show up at odd times, they write crazy offers, they make odd repair requests and they can be difficult. One time a deal fell through because a Feng Shui Master didn’t like the color of the kitchen.
The Market – Market forces determine so many things; interest rates and sales prices. While you can’t change these forces, you can get all the information you can so you’re prepared for how this affects the sale.
Inspectors – You’ve loved and cared for your home, but even so there could be hidden issues that only a comprehensive, professional home inspection can uncover. One way to avoid unpleasant surprises is to put a listing home warranty in place to cover unexpected repairs. Another way is to your own inspection before listing your home.
Appraisers – Appraisers are just people. On occasion they make mistakes in value. Your lender and broker will help you navigate an unfavorable appraisal. There are ways to combat a poor appraisal.
Selling your home can bring unexpected issues. If you’ve done your due diligence and hired a good broker, you’ll be able to handle the unexpected issues which are out of your control. For more information, give me a call at 206-790-0081 or email Jamie@JamieFlaxman.com.
Mortgage rates have recently been at a 12-month low. Depending on your credit and financial situation, you might currently be able to get a mortgage at around 4%. Here are some reasons why it’s critical you get pre-approved for your mortgage. I have a list of wonderful mortgage lenders, please drop me an email and I’ll be happy to forward to you.
Seattle prices continue to decline slightly for single-family homes, with a 4.6% decrease from the first quarter of 2018 to the first quarter of 2019. However, it’s important to note that we hit the peak of our market in spring 2018, so prices were near their highest point last March. Condos are where we’re seeing the biggest changes, with a significant amount of inventory on the market and a 9.6% decrease in prices. With our increased inventory we’re seeing that the number of days it’s taking a property to sell has increased substantially. But for properties priced properly, they are selling quickly, often on the first day it comes on the market and often with multiple offers. Yes, multiple offers are back, and not just 2 or 3 offers, but more than 10 on many properties.
What does this mean for you? If you’re a homeowner considering selling your property, do NOT overprice. Price is the number one determinant of buyers coming to see your home and placing offers. Overpriced homes will sit on the market. And as we’re now in spring, the busiest time of the year for our real estate market, do not wait to list your home.
Buyers, this is a great time for you. With the increase in inventory, you have many more choices. Interest rates are the lowest they’ve been in the past 12 months, so your money will go further right now. It’s definitely the time to buy.
Let’s talk about your real estate needs. Give me a call at (206) 790-0081 or email me.