Redmond Washington Condo Sales

Available Redmond Condominiums

Summary Price:

Minimum: $103,000

Maximum: $635,000

Average: $283,220

Median: $259,990

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Pending Redmond Condos, under contract within the past 6 months

Summary Price:
Minimum: $150,000
Maximum: $504,990
Average: $278,110
Median: $256,900

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Sold Redmond Condominiums within the past 6 months

Summary Price:
Minimum: $96,000
Maximum: $540,000
Average: $301,377
Median: $318,000

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Bellevue Washington Home Sales Stats

Bellevue Single Family Homes (SFR) Sales for the past 6 months

Summary Price:

Minimum: $235,000

Maximum: $4,735,598

Average: $672,071

Median: $568,900

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Bellevue Condominium Sales for the past 6 months

Summary Price:
Minimum: $126,000
Maximum: $2,349,000
Average: $370,986
Median: $315,000

Click on graph to enlarge

Redmond Washington Real Estate Report

Redmond Home Inventory

Summary Price:
Minimum: $135,000
Maximum: $4,280,000
Average: $729,282
Median: $601,957

Click on graph to enlarge

Redmond Homes gone Pending, in contract, in the past 6 month

Summary Price:
Minimum: $265,290
Maximum: $4,450,000
Average: $572,036
Median: $522,500

Click on graph to enlarge

Redmond Homes Sold in the past 6 months

Summary Price:
Minimum: $122,990
Maximum: $2,000,000
Average: $535,177
Median: $500,000

Click on graph to enlarge

A Grasshopper or an Ant?

When it comes to emergency preparation how many of us resort to Aesop's grasshopper's attitude about last minute preparation hoping to escape unexpected emergencies? We are continually bombarded with the hype of global warming that some of us are thinking this warming will negate the cold front which seemingly is creeping our way. We say to ourselves, we'll get by and if we can't our city leaders will find a way...hmmm.

I believe if we haven't learnt from pervious disasters how common place the lack of "immediate" responsiveness from our governing leaders, road crews, power companies, and even telephone companies can be, we need to re-assess our priorities and take upon ourselves a attitude of self-reliance. Pointing figures aren't going to resolve our immediate needs in an emergency, it will only create an inversion of harden feelings and render our power of choice limited.

It seems like a dream since we had our last snow dump here in Redmond Washington. Was it a surprise? Well, no. I think the weather report warned us of its coming but inconsistent weather reporting tend to fall on belabored ears that have gone deaf. Like most of the residence here, I was caught unprepared. The store ran out of snow shovels! But fortunately we had power.

If you aren’t ready for winter, it would be a great time to start soon. Here are some ideas to help you get started:

1. Have water enough to last you more than two weeks, ideally 3 months would be best.

2. Foods
a. have canned and/or dry foods storage as in some cases power outage will spoil fresh foods.
b. store foods you'll likely eat or enjoy eating, you may want to consider some snacks. I find myself wanting to snack when I'm worried or not really hungry but have nothing better to do.
c. candies

3. Light supplies
a. extra supplies of batteries
b. candles
c. matches or fuel lighters
d. oil lamps, use with caution and wisdom as they give off gaseous fumes and often times ventilation is necessary.
e. wood, if you have wood burning fireplaces

4. Service of Utilities
a. diligently clean your furnace filters, monthly is ideal
b. service your roof, water heater, and insulate your pipes

5. First Aid Kit

6. Games Anyone?
During a black out incident, I found time was my companion and boredom wasn't far behind. In winter, day light is short which leave some of us more time to sleep, read or play games. It is a good idea to have some playing cards readily accessible and any other games that help pass the time away; a good time to build relationships also.

7. Traveling?
a. have water to last you for three days in case you get stuck.
b. warm blanket, non-cotton preferable
c. emergency kits, of course
d. car cell phone charger
e. non-perishable foods and snacks
f. portable games, if any to keep you sane and occupied
g. emergency numbers

Toys for Tots

Make a Difference!

Bring new unwrapped toys to the Marines & have your pictures taken with them & their Humvee!

Date: Saturday, December 12th, 2009
Time: 11:00 am to 2:00 pm

Where: Bella Bottega Shopping Center

8862 161st Ave NE, Suite 103

Redmond, WA 98052

View Larger Map

Homebuyer Tax Credit Brief

NAR Issue Brief of Homebuyer Tax Credit

Homebuyer Tax Credit Aiming for the End Zone!

Not only is the homebuyer tax credit extended until April 30, 2010 but there is also an expansion to include the following: increase income cap and number of homeownership years with a stipulation.

"More than 1.4 million Americans have claimed the homebuyer credit at a cost so far of about $10 billion, according to the Treasury Department. The legislation approved today would allow the credit for couples earning up to $225,000 a year and individuals earning up to $125,000. That’s up from the current $75,000 limit for individuals and $150,000 for couples.
"It would allow homebuyers who have owned their residence for at least five years to receive a $6,500 credit. Those who sell their new home or no longer use it as their main residence within three years would have to repay the credit. Homes worth more than $800,000 wouldn’t be eligible...

"Extending the credit to those who already own homes won’t reduce the excess inventory of housing blamed for the slump because “every buyer taking advantage of the move-up credit would necessarily be a seller,” Goldman Sachs said. It said the plan may increase housing prices by 1 percent because “sellers are likely to incorporate a fraction of the credit amount in their sale prices.” See Full Article by Brian Faler with Bloomberg.com

I like to say that this extension is a good change, however, it has very serious and dire consequences, at the end of the tunnel, whether we choose to acknowledge it or not. Who will pay for the cost of the extension and expansion? I'm all for selling more houses because that is my business but at what cost and to what end?

"We", seemingly the majority, claim that we are fed up with the avalanche of mortgage fraud, money sucking CEOs, and dishonest political dealings that has entrenched us in an insurmountable deficient and yet we the people are not up in arms about the homebuyer tax credit extension and expansion. Don't mind the extension, what about the expansion?

I think that most of us feel a disconnect with events far away or events that we do not feel a part of, to some respect, and don't fully comprehend their tidal affect until it hits our shore, i.e. our pocket book, our retirement account, more taxes, increased food prices. Should we not act now to secure our future by putting aside our desire for immediate gratifications by investing in our nation's financial future, so we and our future generations may reap of its benefits and rewards, later?

Smart Market Report (SMR) October End 2009

(Double click on image to enlarge)

Smart Market Report courtesy of Ron Sparks, designated broker of Coldwell Banker Bain of Bellevue.

SMR strategy is to determine if it is a buyer's market or a seller's market. Once you can decipher which it is and at what range, price the property accordingly. If neutral is at 4.5 and 1 and 9 are the extremities then numbers nearing or surpassing these extremities requires aggressive pricing; whether that aggressive pricing requires an increase or a decrease, it may exceed more than a few thousand, it may require several thousand, or tens of thousands.

Eastside Market Statistics

(Double click on image to enlarge)

Eastside and Mercer Island Market Trends Jan 2007-Sept 2009Graph courtesy of Alan L. Pope & Associate appraisal

Jumbo FHA and Buyers Tax Credit to extend & HVCC will be ousted

FHA Conforming Loan Limits

House and Senate have extended the high-cost loan limit, $729,750, until the end of 2010, December 31; and thereafter it may fall back to $625,000. DS News

Buyer Tax Credit extension

"Under the new language in the Senate, homeowners who have lived in their home for five of the past eight years would be eligible to receive a $6,500 tax credit, while first-time buyers would still be eligible for an $8,000 credit, [expansion proposal].

"The proposal would also increase the income limits of those eligible for the program, to $125,000 per year for individuals and $225,000 for couples...

"[The] expansion would cost about $10.2 billion over 10 years and would be paid for with offsetting cuts elsewhere in the budget. Simply extending the current tax credit is estimated to cost $1 billion a month...

"Analysts say the credit has helped the housing market, although critics question whether the value is worth the cost" (Full Report on Reuter ).

November 4, 2009 - Home Buyer Tax Credit extend until April 30, 2009

see Bloomberg article by Brian Faler

HVCC (Home Valuation Conduct Code)

The HVCC which was instigated to prevent appraisal coercion, appraisal fraud. During the "hot" market, some appraiser felt the banks and real estate agents pressured them to appraise more then the property was worth, thus manipulating their valuation and putting some reputable appraisers out of business because of steep competition to conform and placing the consumers at risk for default. Read more on HVCC by Dave Biggers at Appraisal Press. A highly recommended article.

Excerpts from article:

1. Under the HVCC, any lender using a professional appraiser incurs substantial
regulatory risks and additional costs, whereas AVMs, BPOs, and other valuation
alternatives are expressly and repeatedly exempted from the same regulations and
liabilities.

2. The HVCC unduly restricts the appraiser's ability to operate a business in the same

manner as the other parties already in the transaction.

3. Lenders must be prohibited from owning or controlling, in whole or in part, any sort of

valuation entity or mechanism used in the origination of a loan.

4. All valuations, regardless of method employed, must be provided to the borrower in the

same manner.

5. Any complaints regarding the valuation process should be reported solely to the IVPI,

not to the lender overseeing the origination.

"We do believe that these five areas can be addressed, and that to fail to do so would fly in the face of the original intent of the agreement which spawned the HVCC - namely, to strengthen the independence and reliability of the valuations backing what is for most Americans the single largest source of their net worth. Eliminating coercion of appraisers is essential to ensuring that we have maximum transparency and accountability in the real estate transaction and the financial markets which depend upon them. However, a regulation which damages and circumvents the very industry it seeks to protect - and which in turn harms consumers and investors - will not get us as a nation any closer to that goal."

HVCC was to implement independent appraisal valuation of properties, independent from the influence of sales agents and independent from the influences of banks thus protecting the consumers and supporting reputable appraisal practices. However, when HVCC was implemented, it created higher cost for consumers, devastated the appraisal industry by putting many companies out of business, created profitable avenues for banks by eliminating the competitions and loop holes for them to get around HVCC requirements which resulted in questionable regulatory practices. It is because of these that it is due to go away on the 1st of January 2010.

Are you ready for Winter? It's time to bundle up!

Inspect Roof, Gutters & Downspouts

• Replace warn shingles or tiles
• Clean out the gutters, flush out debris
• Check integrity of flashings to prevent water from entering
• Direct all down spout away from the foundation
• Correct and repair areas where water may erode the perimeter foundation
• Consider having leaf guards installed especially during the winter as it may become difficult to clean during slick weather

Openings, Doors & Windows

• Inspect, repair & seal exterior cracks
• Weather strip doors and windows
• Replace cracked windows
• Replace windows with broken seals, if within your budget
• Use shrinkable plastic sheets over windows with broken seals, alternative to replacing windows
• Install storm windows in place of summer screens, not typical in the Northwest
• Use shrinkable plastic sheets over basement windows to minimize heat lose

Prevent liquid freezes

• Remove water from the garden hose
• Drain liquid from air conditioning pipes
• Remove standing water from sprinkler system
• Keep the internal temperature at least 55 degrees when on vacation
• Insulate plumbing pipes
• Know where water shut off valves are in case of emergency

Weather proof service equipments

Drain service equipments, any equipment that uses fuel and left in unheated storages

Equipments to have for this coming winter

1. Snow blower! It will be worth your investment, could even possibly make some money like mowing the summer lawn, except you can plow the snow for the neighborhood(s).
2. Snow shovel, a standard must haves
3. Bags of Ice melt or sand

Be Aware of Furlong Days

What in the world is a furlough (pronounced as "fer-lo") day? Most of you who've been through a real estate transaction know that it is a term referring to courthouse closure.

In a real estate sale, a property isn't considered sold until it gets recorded. This also means that if you are the selling party you will not get your funds until it gets "officially" recorded and as a buyer, you can't get the keys until the funds gets dispersed.

Since the economic down turn, some public sectors (i.e. government) have created created a day off, a measure to work around employment expenses by having a non-paid day off for its employees. What does this have anything to do with us in real estate? It can affect our closing dates and can cause unnecessary stress if not seriously considered when determining closing dates.

From any given perspective having an un-intended closing date falling on or near a furlough day can create momentary havoc and frustration when closing gets deferred especially if there are other events depending on this one closing date, i.e. first time home buyer's tax credit, a contingent sale of another resident, moving trucks due to arrive, rate locks. The potential worst case scenario is that one can either lose a buyer or a house; the buyer can lose their Ernest money deposit and/or loose a rate lock; or a lost opportunity for a one time deal or benefit(s).

So, when you plan for a closing date not only should you include your vacation days but a furlough day or two.

Events to consider when choosing a closing date:

1. Beginning and ending of the months are chaotic for escrow and lending
2. Government holidays
3. Weekends
4. Furlough days
5. Qualified first time home buyers $8,000 tax credit must close by the 30th or on or before the 25th of November
6. Preplanned personal events, i.e. graduation, weddings, etc.
7. Rate lock expiration day; some lenders will not allow for extensions
8. Benefit and incentive expiration dates

Courthouse closures:

• Monday October 12, 2009
• Wednesday November 11, 2009
• Wednesday-Friday November 25-27, 2009
• Thursday December 24-25, 2009

New License Law: Turning Sales Agents into Brokers

2010 JULY 1

RCW 18.85 Real Estate License Law


The new real estate license law will require all existing real estate licensees to upgrade their sales license by taking a Transitional course which may entail legal and duty updates. I believe the primary reason for this new addition is to divert more accountability and responsibility on sales agents and have more newly licensed agents become more competent with real estate practices and real estate law. Every licensed real estate agent is required, yearly, to take 30 clock hour course plus a 3 clock hour core class to renewal their license.

†Parties interested in obtaining their first time real estate license will be required to:
1. Be 18 years or older
2. Have a high school diploma or an equivalent
3. Take a 60 clock hour Fundamentals Course*
4. 30 clock hour Washington Real Estate Practices Course*
5. Pass the course exam and the State Broker's exam
6. Submit application and pay for license fee
7. Complete fingerprint & background check

†Real estate agents who are renewing their license for the first time will be required to:
1. Take a 30 clock hour Advance Washington Real Estate Practice (WREP) Course**
2. 30 clock hour Real Estate Law Course
3. 3 clock hour Course class
4. 3 clock hour Transition Course

†Real estate agents who are completing their consecutive renewal will be required to:
1. Take a 30 clock hour continuing education course
2. 3 clock hour Transition Course
3. 3 clock hour Core class.

Associate Brokers, Branch Managers or Designated Brokers will need to take a Transition Course before renewing their licenses after July 1, 2010.

Pre-licensing Managing Brokers are required to:
Current requirements of 120 clock hours are required with proof of 2 years of active licensure will be replaced with:
1. 90 clock hours after July 1, 2010
2. The following 3(three) classes are required:
a. brokerage management
b. business management
c. advanced real estate law
3. proof of 3 (three) years of active licensure

Everyone will be required to complete fingerprint & background check to renew their license every 6 (six) years. If their background checks don't come clean they may be subject to Real Estate Department of Licensing board for review to decide the fate of their license.

However, if a licensed individual is delinquent in child support or default in their education loan, their license can be revoked or inactivated.


*Real Estate Fundamentals and Real Estate Practice courses must be completed within two years of taking the exam.

** Those that have completed the standard WREP course may be able to apply some/all of the hours towards their continuing education credits. Check with your real estate company to confirm.

†The salesperson's license will automatically become a Broker's license after course completion & renewal of license after the law takes effect.

Links:

• WA State of Licensing: Real estate
• Washington State Department of Licensing: Salesperson requirements, Broker requirements, Broker renewal
• Interested in getting a real estate license? Rockwell Institute
  
  

Smart Market Report (SMR) October 2009

(Double click picture to enlarge report.)

Smart Market Report courtesy of Ron Sparks, designated broker of Coldwell Banker Bain of Bellevue.

Ron refers to the report as a market demand report. He came up with a formula years ago while selling his property, nearing the beginning in the upturn of the market when people didn't know how high to price their property to make the most profit. In today's market it's a matter of determining the optimal low of the market without pricing it so low as to give it away.

The strategy is to determine if it is a buyer's market or a seller's market. Once you can decipher which it is and at what range, price the property accordingly. If neutral is at 4.5 and 1 and 9 are the extremities then numbers nearing or surpassing these extremities requires aggressive pricing; whether that aggressive pricing requires an increase or a decrease, it must exceed more than a few thousand, it may require several thousand, or tens of thousands.

Shred It Event, Saturday November 14th

Saturday, November 14th
12:00 Noon to 2:00pm

Shredding is a simple, effective way to protect yourself from identity fraud.
ID theft costs Washington State residents nearly two billion a year.

To help protect this from happening to you, bring up to three grocery bags per individual of your old documents to a FREE Shred Event to be hosted by the Coldwell Banker Bain Redmond Office.

This is a secure, green and convenient event just for you!

Location:

Bella Bottega Shopping Center Parking Lot
8862 161st Ave NE, Suite 103
Redmond, WA 98052

Blog or Not to Blog

"Sticks and stones may break my bones but words can never hurt me." Houses are made of sticks and some with stones but can words really hurt them? Can the opinions of others matter, and can blogging hurt or help your property's image?

From the buyer's perspective, it is always helpful to get feedback on products we've never used or seen. When I buy online, I like to read through the negative feedbacks as well as some positive feedbacks. Some of the feedbacks are just useless, either too vague, or vindictive but there are those who give great honest and detail feedbacks that are invaluable. You will always run into the bad with the good. Intelligent consumers are quick to perceive the difference and are able deduce the best choices to make.

Just recently, the NWMLS data entry sheets have included two new fields option for sellers to choose from: Automated Valuation Models (AVM) and Prohibit Blogging. Checking AVM box will allow a price valuation (or estimate) of the property, a "zestimate". And by checking the Prohibit Blogging box, the seller chooses not to have other agents, apart from their representing agent, post blogs publicly about their property. The primary concerns for allowing other agents to post their opinions can create negative press for the property, induce low-ball offers and may negate negotiation efforts. However, there are no restrictions for consumers who may wish to personally blog about them.

Glaring Flaws

In the past, consumers rode the wings of their soaring home equity line of credit. Small ticket repair items seemed unimportant, doable. While big ticket items, such as a roof or siding repairs, stung temporarily, most gambled on their golden ticket of inflated home values to buffer or augment these glaring flaws or more plainly to justify their vanity.

Today, it would seem suicidal to take such a risk. Consumers are looking to have better energy efficient homes, i.e. newer double pane windows, gas stoves and not Barbie fireplaces. They are looking to have minimal repairs. Big ticket repair items will become glaring flaws and the small ticket items the final tipping point. Only to leave the seller minimal protection to shield their profit from the onslaught lists of imperfections. Sellers who once thrived as kings of the hill have become subservient to tight wad buyers or become victims to opportunistic peronas.

What are today's buyers looking for in a house?

• A Clean house, a home well cared for
• Newer Roof, less than 10 years
• No problematic sidings, i.e. Land Pacific (LP) siding (composed of wood scraps and resins & glue)
• Well serviced heaters and furnace
• Newer furnace
• Newer windows, less than 7 years
• New paint
• Newer appliances
• Wood floors, good hypoallergenic environment selling point
• Great lighting, better when it is natural lighting, especially in the Pacific Northwest
• Better insulation, not always thought of but highly recommended
• No moisture damage = no mold problems
• Remodeled, open & spacious kitchen
• Contemporary, classical floor plans with good flow and/or a great room style
• Consistency in the remodels
• Fresh scent, no harsh odors

What should sellers do before marketing their house? Increase the preceived values.

• Manage the Clutter
• Clean the house from top to bottom
• Get a thorough home inspection
• Prioritize the list of repairs
• Work on one room or one area at a time
• Follow the list of repairs that will give the house a face lift, repairs that communicates to buyers the house was well cared for and loved, i.e. new paint, fix leaky faucet, freshen up old dingy grout
• Keep within your budget
• Be consistent in the remodel theme, i.e. avoid mix eras
• Avoid over remodeling, i.e. a Waterford chandelier versus a good quality chandelier
• Keep paperwork & receipts on large ticket repair items, especially when they carry a warranty or guarantee
• Tidy the yard and garden space
• Get rid of house odors, invite an independent and outside nose to take a whiff
• Don't know what else to do? Try visiting open houses for inspirations, see your house from a buyer's perspective and get off the "My house is better than" attitude.

JD Powers Award 2009 Highest Customer Service

Link: JD Power Ranking of Real Estate Firms

Can you use a short sale addendum to get out of a deal?

A question was posed to the Washington Association of Realtors to whether or not a seller and seller's lender can use Northwest Multiple Listing Service (NWMLS) form 22SS (Short Sale) Addendum to terminate a previously mutually accepted offer, an offer that was signed off and agreed to by all parties involved.

22 SS Addendum Objective: Notifies buyer that seller will continue to accept (review or look into) other incoming offers subject to lender approval.

Question: Can the Seller use the 22SS to get out of an offer they had previous mutually accepted for a better or higher offer?

WA of Realtors said No. Form 22SS does not give the seller the "unilateral right" to terminate. It is a contingency which benefits the seller "in the event seller's lender does not approve buyer's offer." "In this case, seller's lender did approve buyer's offer and seller acknowledged agreement to lender's terms by advising buyer of lender's approval. In other words, the seller contingency set forth in form 22SS was satisfied [or was met]". "The seller misused form 22SS and buyer should be advised to seek legal counsel."

Something to Tink about, $8,000 Tax Credit Extension

Finding yourself scrambling to hit last minute deadlines? It is that time for the $8,000 buyer tax credit to be gone. The elusive tax credit extension have lead some buyers to oscillate and waylay their housing purchases in hopes that Uncle Sam will bring them what they need, time and money. Should Uncle Sam extend the tax credit?

Are there any downsides to this tax extension? The upside is touted by the National Association of Realtors (NAR). They have pushed a call to action to ask our government leaders to save the tax credit extended. Why are we extending it? Is it our intention to make the real estate world go round? Is it to help the home buyers achieve the American dream of homeownership? How about stimulating our economy? Seriously. Why do we have deadlines? Is there a downside to a tax extension? The money is coming from someone somewhere and it isn't from Uncle Sam. Tax payers?

Links:

· Buyer Tax Credit FAQs
· How to get the First-Time Home Buyer tax credit

Changes in consumer protection act to impact closing dates

How will the ammended Truth and Lending Act affect loan timeline?

1. If the buyer needs financing to purchase a property, the new Regulation Z (or REG Z, 226.31 & 226.32) can impact and can dictate the closing date, i.e. delayed delivery of a good faith estimate, rates have not been locked.

Mortgage Disclosure Improvement Act (MDIA’s) requirements:

• "Creditors wait seven [7] business days after they provide the early disclosures before closing the loan; and
• "Creditors provide new disclosures with a revised annual percentage rate (APR), and wait an additional three business days before closing the loan, if a change occurs that makes the APR in the early disclosures inaccurate beyond a specified tolerance [ i.e. 0.125%]." (Federal Reserve press release)

2. An increase of .125% of the APR from the initial good faith estimate or Truth and Lending (TIL) disclosure requires the lending part to revise and re-issue a new TIL to the consumer. Consumer must receive the newly revised TIL within three days before closing. However, if the lender chooses to mail the TIL disclosure, closing may occur on or after seven (7) business days after mailing.

• "Consistent with the MDIA, the final rule amending Regulation Z requires creditors to make good faith estimates of the required mortgage disclosures, and deliver or place them in the mail, no later than three business days after receiving a consumer's application for a dwelling-secured closed-end loan. Consummation [or closing] may occur on or after the seventh [7] business day after the delivery or mailing of these disclosures.
• "If the annual percentage rate provided in the good faith estimates changes beyond a specified tolerance for accuracy, creditors must provide corrected disclosures, which the consumer must receive on or before the third [3^rd] business day before consummation [or closing] of the transaction." (REG Z Docket)

As there are changes which may occur during the purchasing process, it is important to ensure that the estimated fees are accurate as possible. If the APR deviates more than .125% from the buyer’s initial TIL received, lenders must provide updated TIL and if they cannot provide it within three days prior to closing, then the closing date must be extended.

However, under personal hardship, the buyer may be permitted "to expedite the closing to address a "bona fide personal financial emergency", such as a foreclosure. (REG Z Docket).

*** Important to Note***

Lending Double Jeopardy

Some lenders may choose to add “padded” fees due to this new REG Z. The speculation is that these lenders maybe trying to:

· avoid possible delays in closing

· consider this requirement an inconvenience, which can be cumbersome when processing multiplicities of loans

· and/or avoid possible bad rating if their ability to perform is inconsistent, i.e. not able to provide good faith estimates in a timely manner.

It is assumed that they will remove the “padded” fees at closing but who is to say that they will remain honest and follow through with their good intent.

It is important that you review your HUD statement with your real estate professional or discuss it with your closing agent, i.e. escrow officer, to determine what standard fees are normally like (i.e. a general idea), what they should include, fees out of the norm, what are in the junk fees or fees disguised as something else, hidden fees.

3. A copy of the property appraisal must be provided to the consumer three days prior to closing. However, the buyer may waive this review period requirement for whatever reason.

Other changes that can influence closing timeline:

A. Changes in purchasing process can affect the APR and therefore affect the closing date.

• mortgage product (i.e. changing loan programs or types)
• closing/signing date
• loan amount
• unlocked rate
• fees by third parties, i.e. escrow or settlement agent.

B. Interest rates impact the APR. In order to get an exact APR, the buyer has to lock in their rate.

Choices to make before locking in a rate:

· determine loan program

· interest rate

· points &

· lock in length

Marinating Relationships with Time

How many of you know how to can?

I didn't until recently. While visiting some friends, I was invited and guided through the HOW TO. It wasn't as daunting as I had imagined.

I was enthused and wanted to put this new skill into action...with help from family recruits, willingly I might add. Well, we were canning peaches, who wouldn't want to participate. After the cleaning, boiling, hot-flash-peeling, more water boiling and finally the finished products, my brother asked me, "When can we eat it?" I hadn't a clue but asked the expert, who said they needed time to marinate, to give them time to get better flavoring.

It isn't much different in a business relationship; it takes time to build trust. How do we, as consumers, decide whom we choose to be committed to; how much time to give our attention to; whom we should give our loyalty to, our trust to, our business to and whom to refrain from, in a matter of minutes of hearing, seeing or meeting these sales persons, companies or their products?

We live in society where everything is saturated with the "fast food" motto or the "I want it now" quota. We can sometimes compromise the short term gratification for the now rather than for the higher quality outcome waiting for us later. This obsession for all things now have caused some of us to forfeit what we crave and need most, time tested values and quality relationships, outcomes of which can satisfy our long term needs and wants.

Majority of all real estate sales comes through referrals, existing relationships, via family members, friends and already trusted associates and sometimes through individuals who have had at one time or another positive experiences. These relationships bridge the chasm of uncertainty from doubt to trust, from strangers to trusted professionals, relying wholly on the person who referred them.

What do you do if you are starting from scratch? Who do you trust?

Get to know your neighbors: your local bankers, grocers, car dealers, retailers, civic leaders, real estate professionals, restaurant owners, etc. Give yourself time to get to know them, establish a report so when you need them or their services and expertise there isn't the feeling of awkwardness, fear, or doubt. With them, sticky situations can be unstuck and closed doors can be made to open and sometimes they can help buffer the tide of unexpected shortfalls. They will often go the extra mile where others may fall short.

Marinate these networking relationships now that in time these relationships will become your fortress for the enjoyment of life and your buttresses to stem the tide of unexpected shortfalls with kindness and mercy.


Quote:

“When the conduct of men is designed to be influenced, persuasion, kind unassuming persuasion, should ever be adopted. It is an old and true maxim that 'a drop of honey catches more flies than a gallon of gall.' So with men. If you would win a man to your cause, first convince him that you are his sincere friend. Therein is a drop of honey that catches his heart, which, say what he will, is the great highroad to his reason, and which, once gained, you will find but little trouble in convincing him of the justice of your cause, if indeed that cause is really a good one. ” Abraham Lincoln.

Getting Back What You Paid For

Now, I know that this article might rub some the wrong way. It isn't meant to be, just consider it an FYI. It's a common understanding that you get what you paid for, right?

I purchased a strand of pearls from online, nothing fancy but the pictures were very seductive. Alright, yes, I should have been more careful but I didn't know any better. But the deal seemed so good that I thought to myself, it should be an easy and quick buy for a simple project. I was so ecstatic and looking forward to their arrival. So, did I get what I paid for? Well, YES! Disappointment and an inconvenience. The pearl weren't what I paid for, I felt ripped off and the seller wasn't responsive.

I am a big peach fan, especially yellow peaches. Big juicy and fresh! Mmmm.... Well, I went to a well trusted store, big name, who advertised for quality and charged big bucks. You know the kind. It wasn't the big name that I went for, just the peaches. I bought a few with hopes to cash in every juicy bit. I patiently waited for a few days to give them time to ripen. When the time came I smelt it, cleaned it, and cut into it with anticipation only to be disenchanted by pithy and mealy interiors.

You know what I mean and some of you can freshly recall what it felt like to be dissappointed, to be miss lead, to not get what you bought into. When it comes to hiring a real agent to represent our interests why be a scouge, be lead by fair promises, rely too much on the packaging, or cut a few sales person off because we wanted a great deal? The façade can harbor a rotten core and the wrong choices can lead to shady results. In the end we get what we paid for and the outcome of our choices, whatever they may be, are ours.

Where's the Shopping List?

Been to the grocery store lately...without a shopping list? Your goals forgotten and your memories washed clean...a momentary lapse of purpose amidst the flashy diversion of beautifully displayed shelves, the gleaming pyramids of fruits, the neatly stack vegetables, the methodical beeping of scanned grocery items, and the subliminal beckoning of techno colors ads. It’s the casino of forgetfulness. If you’ve had the experience, you know what I'm getting at. When shopping for a house, is there a difference? Builders and real estate agents alike know how alluring and seductive a well staged home can be when it comes to getting their housing inventories to fly off the shelves. And in today’s stringent economic demand buying incentives help anesthetize the wallet and makes the buying experience dreamier.

How is that we, as buyers, when purchasing a house sometimes walk about empty handed without directions, without priorities and leave behind our dream home "grocery list", thus render our final purchases to the pretty packaging, eye candy staging, and the distracting incentives to spend impulsively, beyond our means and render ourselves to suffer buyer's remorse or disappointments? It isn't hard to do when our priority rudder hasn't been installed correctly and our impulses haven't been properly capped when we go "window shopping".

Whatever our excuses, we can straighten our rudder and curb our impulses through research, taking time to consider our needs/wants and prioritizing them. Write a list of needs...not wants...NEEDs, the "must haves" and then ask yourselves "Why" you need them. Write it out. Writing it out will help you think...this is beginning to sound like some psycho therapy for home shoppers but it's true. Writing it out helps to process and filter out what you "truly" need. Also, create a list of wants according to your priorities and also ask why you want them. Be specific. And most importantly, research and study it out way before the "window" shopping begins. There will be less confusion and clearer decisions made quicker and avoid missed opportunities. I know that some of us like the gun shot or fly-by-the-seat-of-our-pants method, well...good luck and don't be surprised if your real estate agents are seemingly um "not helping or don't understand" what you need.

Referral Regrets

Have you ever been given a referral and been disappointed? Had any regrets that you had even asked for one? I visited with a friend who had bought a house outside of town, who had a couple of sore points from a real estate purchasing experience. One was of a poor referral experience and the other was due to poor communication. They were given a few referrals from their real estate agent of a particular professional service to choose from and from that list they selected what they thought was a trusted list of reliable, intelligent, and hardworking professionals who would protect their interest towards the purchase of their new home. Unfortunately the referral was soured by poor performance and a lack communication which appeared as a lack of due diligence. Whose fault was it?

Communication can become a problem when there is no trace of it, it becomes a "he said/she said" scenario, out of sight out of mind. If it isn't written it never existed. Our lives and our minds can become so encumbered with worries and tiredness, our brains bombarded with mass traffic of information, and our memory storage near empty, and in such circumstances it is best and sometimes necessary to have a system to help keep things clear, for us as well as for others, whose choices may affect ours. In a court of law, written communications are more reliable than verbal. Keep a communication log via email when you are purchasing real estate, verbalize it through email, confirm it through email, re-state verbal discussions and agreements through email, and consider keeping a journal. Get the idea?

Why take the chance for anything less than our very best effort. Be self reliant, avoid assumption by interviewing and researching those who have been referred to us and take upon ourselves the responsibility and consequences of our choices. Is your hard earned money important to you? If it is a resounding YES!, take the time to research and interview the professional services you plan to hire even if they are a list of referrals from trusted professionals, associates, the alluring advertisements, families, or friends; anything less than your best is left to chance, random outcomes, random quality.

Research it, document it.

Condominium Conundrum over Lunch

It is confusing to most of us who do work in real estate whether they be agents or those working in lending retail front, condominium lending guidelines are somewhat ambiguous. A lending source of mine and I hashed it over lunch, it was a good way to mix the less palatable with a savory incentive, food. Anyway, the communication didn't come across clearly or at least I was told that there was a lot of gray matter, no brains mind you, but a lot of stuff left to interpretations. After all as she reminds me, it is a guideline.

Although conventional loans are less restrictive but do require a higher down payment, FHA loans are more restrictive because it is insured by the government and the asset, in this case condominiums which have higher investment risks, requires a small minimum percentage down of about 3 to 3.5%. If you take it from the stance of a tax paying citizen, it's a process we're willing to support and agree to, a necessary process even if it is an inconvenient process for a piece of the American dream of home ownership.

FHA condo loan requirements include all of the following and but does not include all:

1. At least 51% of the total units must be owner occupied or sold, not rented out.
2. At least 90% of the total units must have been sold.
3. No single entity (i.e. business ownership, or private ownership), may own more than 10% of the total units in the same project.
4. There must be no litigation or legal actions pending.
5. The common areas must be completed with no additional assessments or special assessments separate from that of the HOA (Homeowner Association) dues.
6. The HOA reserve fund, independent from operating expenses, must be at least 60% to prevent deferred maintenance (i.e. roofs, siding, plumbing, windows, etc.).
7. Proof of Insurability, or proof that the building has been and is still insured.
8. Condo projects having more than 30 units, no more than 10% of the units can become FHA approved at any given time. OR if the condo projects having less than 30 units may have no more than 20% of the total units become FHA approved at any given time.
9. There are exceptions and the guidelines can be tailored to fit each projects needs.

Some condo projects may have their building FHA ready - that just means the project has been put through the process, the ringer, to get the entire project qualified for FHA loans. The process has a cost - time. What if the condo complex doesn't have the time or want the inconvenience just to have the entire complex qualify for just one seller? That's where spot approval steps in. It means what it says, on the spot approval. What it doesn't mean is that it will be quick. No surprise there.

Here is a guideline for what a spot approval may look like. Keep in mind that this is an August 1996 exurb from hudclips.org:

SUGGESTED CHECK LIST FOR SPOT LOAN APPROVALS

_______ 1. The legal documents of the homeowners association do not contain a right of first refusal or restrictive covenant.

_______ 2. The unit is part of a condominium regime that provides for common and undivided ownership of common areas by unit owners.

_______ 3. The project, including the common elements, and those of any Master Association, are complete, and the project is not subject to additional phasing or annexation.

______ 4. (a) There are no special assessments pending.

______ (b) No legal action is pending against the condominium association, or its officers or directors.

______ 5. The common areas have been under the control of the homeowners association for at least one year.

______ 6. At least 90 percent of the total units in the project have been sold. Verified by _________________________.

______ 7. At least 51 percent of the total units in the project are owner-occupied. Verified by ______________________.

______ 8. There are no adverse environmental factors affecting the project as a whole or individual units .

______ 9. No single entity owns more than 10 percent of the total units in the project. Verified by ______________________.

______ 10. The units in the project are owned in fee simple or the units are held under a leasehold acceptable to FHA.Leasehold in file.

______ 11. The owners association has adequate common area insurance coverage. General liability, replacement coverage,etc. reflects the character, amenities and risks of the particular development. Flood and other insurances carried, when applicable.

______ 12. General maintenance level of common elements is acceptable and there is no deferred maintenance, based on the comments by the Appraiser and/or the pictures.

______ 13. The owners association has a reserve plan and are serve fund, separate from the operating account, that is adequate to prevent deferred maintenance. The amount of the fund is $_________ as of __________.

_______14. (a) For projects consisting of over 30 units, no more than 10 percent of the total units are encumbered by FHA insured mortgages. Verified by ___________________.

_______ (b) For projects consisting of 30 units or less, no more than 20 percent of the total units are encumbered by FHA insured mortgages. Verified by _______________.

Quality Concierge Service: The Icing in Condo Living

How is the concierge service at your condominium?

Aside from the typical drill when purchasing a condo, i.e. location, HOA dues, occupancy rate, special assessment, etc., have you considered how important it is to have good quality concierge services when purchasing a condo? I hadn’t given it much thought until a colleague and I went to stage a condo unit in downtown Bellevue. My first impression of this supposed desirable condominium was poor. There were no warm greetings, salutations, acknowledgements, or offers for help of its incoming and outgoing residences or its visitors. This concierge was preoccupied and our visit was an intrusion rather than a welcome to this person.

Okay, I’ll admit this seems silly and petty but hear me out. A condominium building is an encased microcosmic community, a village within a metropolis. It should be an oasis from a sea of city commotion. Wouldn’t you agree? So, in such an environment, quality concierge services have a rippling effect on resident attitudes, the quality of life within, and should help resonate desirability. Good concierges can bring in a sense of community in an already increasing chasm of neighborliness. It’s a sorry excuse to create an artificial community but it has to start somewhere. It’s a hefty job and most of the time a thankless position.

Here’s a positive experience I want to end with. Julie works at the Astoria off of Old Main in downtown Bellevue. I met her while showing several units in the Astoria. My clients had made several visits to neighboring condominium complexes in the surrounding downtown area but they felt Julie’s great concierge services persuaded them to more seriously consider purchasing the units there. My clients were looking to purchase something within the interior courtyard which at that time was not on the market. Julie took time to show us the floor plans, the building design and then proceeded to jot down the units that faced the inner courtyard that in due time would become available. She discussed with us the history of the building and its management. The experience for them as well as for me was one of care, importance, community and a personal touch. Julie was very knowledgeable, she knew her residents, their needs, building activities, she knew of units for sales long before they came on the market, she offered helpful suggestions, and her persona communicated to us that she loved working there.

I believe great concierge service is the icing on the cake. They can be the hub of community interactions and the epicenter for positive influences. So if you happen to have a great concierge, please do compliment them plentifully, acknowledge their good services, and encourage them to continue their good services by showing your appreciation.

New Condo Underwriting Guidelines Effecting Condo Loans

Mr. M came to my office asking for advice about whether or not he should sell his condo now or later. It is always a good time to sell if you need to sell; however, I believe his concerns were more than real estate related. He lives in a condominium complex where the homeowner association was borrowing against the HOA (Homeowner Association) funds which are collected monthly from the associated condo members. Could the HOA action affect the value of his condo, he asked. If the HOA action is questionable, i.e. illegal, shows poor management, or jeopardizes quality of life, yes it can affect the desirability and the value of the condominium. Any material facts or concerns that may affect the value of the condominium are required disclosures and they can often turn away potential buyers. But to not disclose these material facts is fraud.

With increasing scrutiny from lending underwriting guidelines, condominiums have become the forefront casualty of tightening guidelines because of its higher level of risk for the mortgage investors. Condo ownership has associated dilemma and problems that can become cancerous. A few bad rotten apples can spoil the entire lot. Fannie Mae has new guideline requirements such as no more than 15% of the condo HOA dues can become delinquent more than 30 days in new condo projects and homeowner association must have at least 10% of its budget placed in reserves for repairs and insurance deductibles. However, each condo projects are assessed on a case-by-case basis.

When purchasing condominiums homebuyers should be conscientious and be informed of possible liens, defects, special assessments, history of assessments, pending litigations, delinquent dues, percentage of homeownership versus rental units, quality of management and maintenance, board meeting minutes for the past two years, HOA meeting minutes for the past two years, the insurability of the condo complex, and whether or not a reserve study was done.

Having a reserve study has not been a common practice but because of poor management of condo finances, it is a practice that has become highly recommended. Although the practice of having a reserve study is strongly encouraged there is no enforcement power except when a lending underwriting guideline may require monetary reserves set aside for a rainy day and for insurance. So, if the condominium don't meet those guideline requirements, the buyer cannot obtain a loan from that lending institution for that particular condo complex. However, as lending institutions differ from each other their underwriting guidelines may also differ. It is best to do some research to find loans that best fit your needs and know well the condominium you plan to buy into.

Keep in mind that townhomes are considered condos in the State of Washington; and to be safe, double check lending requirements in all complexes that have HOA dues to determine whether or not they are subjected to any new lending requirements.