Offer less? Or ask for a seller paid buy down? Which is better for you as a buyer?

When you are preparing to make an offer on a home it is good to know what your options are as a buyer, especially when your budget is tight and you would like to keep some of your money in the bank. It’s very common in a “buyers market” for buyers to offer less for a home than what it is currently listed for. But, does that make sense for you? Rather than offering less, would it make more sense for you to come up with a plan to lower your monthly payments and your cash required at the closing table? Many people don’t realize they have this option. Below you will see an example of two different 5% down scenarios. One is an offer of $485,000 with no seller paid closing costs. The second is a $500,000 offer with the seller paying $15,000 in closing costs including a permanent rate buy down. [Read more →]

Should You Leverage Your Home or Pay It Down Rapidly?

By Maryanne Coffman, Golf Savings Bank

There is a great debate within the inner-mortgage circles these days. Should we, as loan professionals, encourage clients to borrow as much money as possible? Or would consumers benefit more if we helped them to understand the advantages of 15-year amortization schedules and pre-paying principal? Let’s examine the pros and cons of both strategies.

Leveraging Your Property. In order to understand why you’d want to borrow as much as possible for your home purchase, you must first grasp the concept that equity has a zero rate of return. Here’s an example:

If Consumer “A” buys a home for $300,000, and puts 20% down, then they have $60,000 in equity. Over the next 5 years, the property appreciates $100,000 in value. Consumer “A” now has $160,000 in equity. [Read more →]

How Many Ways Can I Count the Reasons Why, YES You Need an Agent!

With the skyline dotted with construction cranes and new buildings going up faster then you can drive to the Eastside, it’s no mystery why many buyers are looking at new construction projects. Downtown Seattle and Bellevue have more new condo buildings being built then either city has ever experienced. While builders and developers are pushing new units out as fast as possible to maximize their return on investment, what does this mean for the average buyer who is interested in buying new construction?

Well first off, it means that there may be a lot of “bumps” along the way to the actual finished project. Most projects have spent thousands of dollars looking good on paper and online. However, looking great on paper or in their 3D models may be an entirely different experience then looking great in a 520 square feet unit with no storage or views. Having an objective, experienced “voice” to help you understand the projects benefits and drawbacks is vital to making a good investment. With so many projects and deadlines for developers to manage, you become a number in a see of many. You may not know the right questions to ask, and the site agents are not going to volunteer additional information unless it’s information that might get you to sign on the dotted line. [Read more →]

The link below (to article) was just posted on Forbes.com, regarding the country’s most stable real estate markets. Seattle was #1 for stability. We seem to hit a sweet spot between lack of housing units (still) & low # of non-conforming loans and job growth.

1. Seattle, Wash.

• Median home price: $395,000
• Annual price change from 2006: 8.9%
• Projected price change to 2008: 3.09%

“Seattle continually bucks national housing trends. Price appreciation in the Emerald City has been strong over the last six quarters. Besides a very low unsold housing inventory and a strong sales rate, there are very few non-conforming loans, which lessens the chance of widespread foreclosures and delinquencies. While the market is slowing, the strong lending situation and sales rate bode well for the market.”

It also mentions that it won’t be another “gangbusters” year (in any US market), but Seattle will still do “OK”.
Read the Article Online at Forbes.com

SOLD


Listed at $220,000


8632 164th Ave NE #A201


Redmond, WA


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Beautiful sunsets from this cozy top floor end unit. This one bedroom lives large! Slate entry leads to gleaming new hardwood floor throughout living space. Neutral colors throughout with crown molding & custom trim finishes. Kitchen has stainless steel appliances, newly finished cabinets and designer flooring. TWO parking spaces, TWO storage units with shelving, newer dbl paned windows. Includes one year home warranty and first two months home owners dues paid!! Great downtown location within min to Redmond TC, theatres, restaurants, shops, trails, Microsoft, and Marymoor Park!

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