Penny Bolton Rebecca Evans

What is happening in the Seattle rental market?

Penny Bolton Rebecca Evans — Tue, 21 Feb 2012 18:11:18 +0000

2011 was a busy year for rentals. We don’t manage rentals ourselves (except for our own) but we do help clients find and analyze them And we have been very pleased with Cassie Walker-Johnson of Windermere Property Management. She knows her stuff. She put together some good statistics for us recently. Last year rental rates went up 14% which is a big increase. The fact that former buyers are not buying because of credit problems, job insecurity and their unwillingness to dive into the market means there are more renters. People who have been foreclosed on or have done short sales are not buying but they need a place to live. And, especially in Seattle, younger people are moving here for jobs and need a home but can’t or don’t want to buy yet. There are tenant’s galore!

Here are some sample rental rates in the City. Our experience is that the closer you are to Downtown and jobs the higher the rates.

Area	2 Bedrooms	3 Bedrooms
West Seattle	$1547	$1952
Cap Hill, Madrona, Madison	$2077	$3067
Queen Anne Magnolia	$2392	$2968
Northwest Seattle	$1712	$2096
Northeast Seattle	$1558	$2254

How do you decide what price range to look at?

Penny Bolton Rebecca Evans — Thu, 16 Feb 2012 20:54:07 +0000

If you are starting to look at homes you need to be realistic about what you can and want to pay in a monthly payment. Remember that you will have taxes, insurance and home upkeep to pay for so budget for that. Don’t use your last nickel to get into a house. You need reserves.

A lot of buyers are looking at homes with higher prices than they want to pay and assuming that they can buy a home for 20% off the asking price. That may be true for a house that needs a lot of work. But it is not true for homes that are clean, in good condition and priced well. Inventory right now is very low. We hope to see more listings in the next few months.

In a buyers’ market it is possible to make offers on houses for less than the asking price. We will coach you on how to be realistic and make an offer that the seller will at least take seriously. Sellers typically won’t entertain a really low offer until a house has been on the market several months or more. It is an art to make an offer that doesn’t insult the seller yet gets the negotiations going. We like to go to bat for our buyers and help them get what they want in a home. We will help our buyers look at all the comparable properties and discuss recent sales.

In the normal offer process, a buyer makes an offer on a home, the terms of the offer are negotiated between the buyer and seller and once there is “mutual acceptance” (the terms of the offer are agreed to by both sides), the buyer has their inspection. After the inspection, the buyer can either proceed with the contract, ask the seller for concessions or can walk away from the deal without risking their earnest money.

What is Title Insurance and why do I need it?

Penny Bolton Rebecca Evans — Thu, 16 Feb 2012 15:21:14 +0000

This is a question we hear in every transaction. Number one is that banks require it to fund a loan. They want to be sure that no one else has claim on the property. See this link for more about how title insurance covers the property.

Life of an Escrow

Penny Bolton Rebecca Evans — Wed, 15 Feb 2012 20:16:27 +0000

Here’s a good summary of who pays for what when you buy or sell a house. Some fees are required by the bank, some by escrow and are typically spelled out in your purchase and sale contract.

If someone else wants your house, what do you do?

Penny Bolton Rebecca Evans — Wed, 15 Feb 2012 18:37:01 +0000

Consider doing a pre-inspection

Even though the market has been a buyers market for a while, we are seeing multiple offers on nicely presented and well priced homes. How can you make the most competitive offer? If you think you’ve found “the one”, and there are other buyers making offers, an aggressive technique is to have your home inspection done before writing your offer. Then the seller knows that if they accept your offer, their home is really sold. It removes a big “what if” from the equation. We would discuss this in depth if we think it would help you get your house. You will decide what you are comfortable with. It can remove some of your negotiating power so it is not necessary unless you are competing for a particular house with other buyers.

Put together an offer packet that wins-

Writing an offer includes putting together a packet of information that the seller and the seller’s agent will review. Included in this packet will be a brief warm but not too effusive letter from you to the seller. During our meeting, we will talk more about the letter, but for now it’s important to know that we will ask you to write a one page letter. This letter will describe why you want to buy the seller’s home. It may seem hard to imagine writing such a letter when you haven’t yet found a house to buy, but when the time comes, you will have a good idea of the kinds of things you would like the seller to know. Writing a letter give you a chance to put a personal touch on your offer. We can share examples to help you.

Decide what you can afford and make that offer.

Buyers typically look at the listing price to decide what to offer on a house but that is not the only way to look at it. If you have been looking at properties that are in the $350K price range with 2 bedrooms and 1 bath and one comes on for $325K what should you do? If it is underpriced make the offer that makes sense in comparison to what other properties you have looked at. It may be $25K under priced. Other buyers will jump on it, too. We’ll talk about what works for you and make that offer.

Stay available while we are presenting your offer.

If you have an offer on the table this is not the time to go away for the weekend unless you can use a computer where you will be.
When we present your offer to the seller and/or their agent, they may counter back to you right away on terms – price, possession, etc. We will not have a deal until it is ALL signed and agreed to by both parties. If another better offer comes in during this time period the seller can take it. So stay by your phone, cell phone or us until it is done. Getting a house, or not, may depend on it.

2012 Credit is Loosening – Will this help?

Penny Bolton Rebecca Evans — Wed, 15 Feb 2012 16:38:01 +0000

Banks are loosening the credit requirements to purchase a house. Here’s a link to an article about that. LTV ( Loan to Value) was 74% but now banks are lending up to 82% of a homes value. It is interesting to note, though, that transactions are failing at a rate of 8% now because borrowers can’t qualify. Most of these are failing on low appraisals. We make a point of meeting with the appraisers on our transactions and provide them with accurate up to date data so they can appraise our listings and our buyers’ purchases accurately. And the deals close.

The Year in Review

Penny Bolton Rebecca Evans — Wed, 15 Feb 2012 02:54:55 +0000

Check out the stats in this Seattle Times article. They talk about “lots of inventory” in 2011 but we don’t see lots of inventory now in early 2012. At least not lots of “good” inventory. Reports in our office that there are multiple offers on many houses now. When something good comes on the buyers are waiting. IF it’s a good value and looks nice.

Look at what is affordable within the City of Seattle

Penny Bolton Rebecca Evans — Thu, 26 Jan 2012 19:12:19 +0000

We are working with first time buyers and are finding some places that work. And people wanting to be landlords and who can make things cash flow now with the super low interest rates. Here’s the link to houses in the city of Seattle under $250K. Check them out.

Negotiating the deal

Penny Bolton Rebecca Evans — Thu, 26 Jan 2012 17:58:20 +0000

You have done all the work to get your house ready. You looked at the comparable properties. You chose the right price and now you have an offer. Yikes! What to do?Strong negotiation and people skills are critical once you receive an offer. The goal is to reach mutual agreement between the buyer and the seller. Generally the buyer wants to buy for less and the seller wants to sell for more. Already we’re at cross purposes! But, with a listing price that appeals to a few buyers, right off the bat, your chances of getting someone to step up and meet your terms is increased.

The goal is to keep the communication rolling along, stay focused and calm and create a plan that works for everyone. Remember that once you have a signed deal we will still be working with the buyers as they have their building inspection and decide whether to move forward.

We research the buyers, their loan, their agent and their recent experience with previous offers. Did they write an offer last week, have an inspection and walk away from the deal? Why? Have they made 6 offers on properties below asking price and never put a deal together? Is there a silent partner like a parent who is really the decisionmaker? Have they seen and approved the house? How much down payment? Closing date?

Whatever we’re presented with, it’s our job to be clear about the pros and cons of an offer and try and meet your needs – to sell your home for the best price possible in this market.

Are you better than the other guy? You won’t know unless you look

Penny Bolton Rebecca Evans — Sat, 14 Jan 2012 08:00:00 +0000

I am reposting this great article by Elaine Scoggins from the Seattle Times last year. She sold her house in Florida in a horrible market then bought a house here. She saw both ends of the process.

As we work with our sellers to get ready for the spring market, it pays to think like a buyer. We appreciate sellers who are partners in the process and own what they can of it. We are great advisors and tool providers but you, the seller, are the one who will ultimately do what needs to be done to get your house sold. We are here to assist but can’t pick up the clothes before a showing or make the final decisions about pricing, painting and prepping without your commitment to the process.

Adopt the attitude that selling your home is the equivalent of a new full-time job. You are the one with the most at stake. If you’re casual about anything that’s under your control, potential buyers will know it.

This important step also may require you to spend a little money, even if it’s the worst time for you financially. Your competition probably is doing that.

And speaking of competition, save some time and energy to visit other open houses. Everybody else sees what else is out there. You should, too.

So many sellers do not go out to open houses to see the competition. We certainly screen listings and tell you about them but seeing for yourself will really help you when your house is on the market.