Team Reba Real Estate

June 30, 2009

The 1st Off-leash Dog Park in Renton is Ready!

Filed under: Renton, local events & places, dog parks, Seattle, buyer, Washington — Reba Haas @ 11:54 am

My partner, Michael, and I were walking our dogs on Saturday along the Cedar River Trail in Renton and came upon the new off leash dog area being installed by RUFF - or Renton Unleashed Furry Friends. It’s a huge 5 acre area by the trail and just across the Cedar River from the Renton Community Center.  There is a small dog area for little guys that don’t want to be overrun by the big dogs and loads of space to run for the others.

RUFF dog park Renton

I hope you’ll get out and enjoy this new space with your furry friend and I hope you’ll also help fund the efforts of RUFF!  They do have their 501c3 status and will be looking to do more fundraising for long term care of the park and potentially more of these dog parks in the future.  They’ve piggy backed on the success of long time COLA (Citizen’s for Off Leash Areas) in Seattle, so we hope that they’ll be able to become a strong organization in favor of our pooches.

June 29, 2009

How to protect yourself from someone else’s unpaid water bill when buying a home…

Filed under: foreclosure, disclosure, condo, real estate, short sale, HOA, legal issues, seller, buyer, Washington — Reba Haas @ 11:04 am

This is likely to be a more specific post to the WA area, but it all depends on your local MLS and the forms used in your transactions.  But, since this is both for agents and the public to check out, hopefully it will get people thinking no matter where they live and to do what is appropriate for their own locale.

In WA State we have statewide forms that are available to MLS members that are attorney drafted and approved fill-in-the-blank forms.  These are copyrighted forms and not for public consumption or sale.  The way agents are allowed to do what is a limited practice of law is by virtue of using only these forms. 

One of these forms is called the 22K Identification of Utilities Addendum.  This form often gets used to put general information about the utility companies that affect the property being sold, but if you really read the first paragraph of the document it says, “The names and addresses of all utilities providing service to the Property and having lien rights are as follows:”

So, what are lien rights?  And who has them?  Lien rights are much like the mortgage against your house.  Basically, if someone files a lien against your property (such as taxes, deed of trust, mortgage, mechanics lien, etc), when you sell the property, then the lien must be paid off at the time of sale. 

When it comes to utilities, the only companies that can file a lien against your property are those that are municipality based.  For example: City of Seattle is the water company for most homes with Seattle addresses, they are a municipality based utility and can lien the property on unpaid bills - so if a seller forgets to pay their water bill and moves away without paying it, then the next homeowner will likely get stuck with that bill.  I’ve met clients who in prior transactions, not with me and my team, had agents who didn’t use the 22K form in a sale.  They ended up stuck with seller’s water bills, some as high as $500.  It was definitely a surprise.  Most other utility companies, such as Puget Sound Energy, go after the specific person(s) for unpaid bills and cannot lien properties because they are a for-profit business and not a government entity.  The form 22K and the standard Purchase & Sale Agreement do have language stating that the Seller is still obligated to pay, but if someone skips town and doesn’t pay, as the buyer you’ll want to have some protection from municipality owned utilities to be paid off at closing out of the seller’s proceeds. 

These issues mostly apply to residential, multi-family, and townhome properties that are not part of Home Owner Associations where some portion of the HOA dues/assessments are used to pay some utility costs. For condominium sales you’ll want to look to see what the HOA dues pay for because the Closing Agent (escrow) cannot close out a bill if it’s paid for by the HOA and not the seller directly. That’s why when I received an offer for one of my client’s condo based townhomes yesterday, we removed the 22K from the offer because it wasn’t necessary.  We gave the utility company info for the ones the seller does pay, but there was no need for 22k in this situation as the HOA pays for water, sewer and garbage collection.

Even if someone has put the 22K form in your offer, don’t assume that because the information was filled out, that the Closing Agent is paying those off.  If it’s non-municipality based, they can’t.  Always check.  Even more important to do so if you are dealing with a foreclosure or short sale property as these may have unpaid utilities along with the unpaid mortgage.

As a real estate buyer or seller, what are your expectations of agent availability?

Filed under: professionalism, real estate, buyer, seller — Reba Haas @ 9:49 am

Below I am going to paste in a long response I put in to an Active Rain article today.  The original topic will be referred to by this link.  Basically, the remarks by the original writer are a series of complaints against other agents regarding response time to emails.

Here is my reply to that post:

Clearly there are some disconnects in the industry and not all of them are with respect to professionalism. I came from 15 years in the tech industry before getting into real estate 6 years ago. I literally had many agents yell at me when emailing them about their listings. Their comments were as such, “don’t email me, I only check that once a week!”  My, how times have changed. Now everyone wants to scream about not getting their email replied to.

There are many things at work here, some of them economic, some of them how our industry operates, and more. First of all, I’ll throw out the economic factor.  Not all agents have the money to upgrade their equipment each year. We’re all business owners and we have to make decisions on where our money is spent. For those that run out to buy the latest iPhone, well, good for you, but not everyone is going to do that.  I should have prefaced that with the fact that I do have a Sprint HTC phone and have capabilities to email, text, call and open keyboxes from my phone. So, I’m all set. But, I know other agents who aren’t.

With regard to sending offers in the evening and expecting a reply.  If you knew you were going to be writing an offer that night, and we’re discussing degrees of professionalism here, it would have been reasonable to consider that YOU, the buyer’s agent, might have called the listing agent during business hours to confirm their schedule. Plus, there is also an option in many email programs to require a notice of receipt for your email - use it, you might have your stress levels go down.  Oh, you don’t have the email program that offers this tool?  It’s too expensive to get or maintain? Ah, then perhaps you might understand why someone else doesn’t have a different tool that you have. We all, as business owners, have to budget our funds to all the tools we use and because of this our industry is not standardized - heck, it’s one of the reasons why this field is so damned competitive. The sad part is when the public doesn’t require their agents to have some of these tools. But, I can tell you, not all clients care.  Many of my older clients would prefer the older methods of in-person contact, less email, and more high touch.  It all depends on the client.  My technology based and younger clientele require the constant in touch mode of work and we strive to do that as well, while also letting them know that we respect their time and we expect the same of them.

It’s easy to rant on this initial post about unavailability, but then I also see agents getting worn out from working non-stop.  Lord knows we’ve been working mostly 7 days a week since last fall but with mostly listings and short sales to show for it… all of which take time and money. It’s important for all of us to continue having a personal life because most of our referral base comes from this group, so it’s important to feed all sides of your business and to prevent burn out.

One gal (comment 101) wants to say that if you only want to work 9 to 5 you should get out of the business.  I disagree. I’d like all the part time people to remove themselves from the business, because it is most likely that these are the folks that are being complained about in this post. When the NAR puts out statistics that show a strong number of our members are part time agents, you can imagine that this might cause difficulty in reaching some agents. I recall a transaction I had about 2 years ago where an agent asked me not to call him during the day as he was at his main job - he only did real estate part time and couldn’t take his real estate “work” calls during the day. The first time he told me this I was flabbergasted… then later I was just annoyed because it meant he was requiring me, the person who already works in real estate 50-60 hours a week, to spend even more time in my so-called off hours working.

There can be a shared middle ground on some of these things and rather than just complaining and hoping people “get it”, we should continue to push for high standards, lessening the number of non-serious agents in the field (read part-time), and using those tools that are at our disposal to verify transmission of documents.  Remember the fax?  If I think contact is going to be questionable upon the evening delivery of a contract, I email AND fax it.  That way I can get verification of delivery at a minimum on one of those methods.

And speaking of that… many MLS areas don’t allow email transmission of documents unless the contract has it in writing that both parties agree to it, so you should make sure you’re following your own local rules in that regard. I’m not defending the inaction or non-responsiveness of others, but for goodness sake, there are some things you can do about it.

June 26, 2009

Team Reba open houses for June 28, 2009

We’ve got two places open this weekend for the statewide open house being put on with the support of the REALTOR Association.  Details below:

Open 11am-2pm: Come see the kitchen/great room of this home, perfect for entertaining! Fully fenced yard ready for your pet/garden oasis. Short distance to West Seattle Junction restaurants and shopping, plus it’s close to downtown & bus lines for an easy commute! Great option over townhomes with no shared wall or concerns about who handles long term maintenance.  Special financing offered at Washington Federal; $500 loan fee, 4.99% interest rate @ 20% down payment or a 5.5% interest rate with a 10% down payment.

 

Click on this link to see the full slideshow of photos for this great home.  The builder, Powell Homes, has also recently filled in the rest of the appliance package for this house, adding in a fridge, washer/dryer, and a microwave. Kitchen appliances are stainless steel.

Open 1-4pm: This fantastic townhome condo with a stylish living room has high ceilings, plenty of windows, new carpet and a neutral color palette that gives you maximum decorating flexibility: go casual or formal. The kitchen is immaculate, with easy-to-clean brand new vinyl flooring and granite counters. Master on main has 5-pc bath and walk-in closet. Home is only minutes away from trails that lead to Burke Gilman & Marymoor Park. Whether you’re a restaurant connoisseur or a savvy shopper, you’ll love the variety offered by the neighborhood which is one block away (or less) from the Bella Bottega shopping district. 

 

Click on this link for the slideshow of all photos for this home.http://www.existencedenied.com/oud/?p=3-6380 g
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Landlords in Seattle, are you making sure renters are provided the proper notices at lease up time?

Filed under: landlord, tenant, disclosure, Seattle, legal issues, rental, Washington, property management — Reba Haas @ 7:12 pm

A client of ours recently requested help in getting an existing tenant re-leased since there were going to be some changes as to who was living there and such.  One of 3 tenants was moving out so deposit funds were going to be changed around and then a new walk-thru would need to be done. Plus, a dog had been okay’d to stay onsite now too so a pet addendum would be necessary in the new lease terms, along with a change in lease fee. 

Be sure to have these items in your leasing packages.  Want to get the most comprehensive list of items for you, the landlord?  Go to Rental Housing Association of Puget Sound http://www.rha-ps.com and check their site for information.  Get a very reasonably priced membership and get access to credit and background checks as well as pre-made lease forms made for this area.  Your membership will ensure that you’ll get up to date info in their monthly newsletter… that is, as long as you read it.

Items that are necessary for Seattle landlords:

Mold brochure.

Lead based paint disclosure pamphlet and form (if building is 1978 & older).

Walk-through move-in checklist.  (we recommend photos be taken of items to help support move-out checklist.)  In Seattle, if you didn’t do a move-in checklist at the beginning of the tenancy, then you cannot withhold funds from the deposit for damage later.

June 23, 2009

Ten Questions to ask your lender when buying or refinancing a property

Filed under: mortgage/loan, interest rates — Reba Haas @ 12:43 pm

When you apply for a loan, your lender will look at several things:* Down payment amount* How long you have been employed in your current position* Whether you have the funds on deposit for your down payment and closing costs* Your income-to-debt ratio and your credit report 

Lenders nowadays place much emphasis on the credit report. Credit bureaus compile a record of debts from credit card companies, banks, department stores, and other firms. This information appears on your credit report, so it shows whether you pay your bills on time. Lenders develop credit ratings based on how well you manage this function. The higher your credit score, the more flexible lenders will be in loan approval and specific requirements.  A credit score of 680 and above is usually considered a strong borrowing candidate.  Scores lower than 630 are generally considered high risk and frequently fall under sub-prime loan programs. 

When you meet with lenders, ask how they decide if you are a good credit risk. It is likely to be from a credit report. Lenders can order the credit report for you and discuss your score. If your credit is less than sterling, they can usually offer suggestions on how to strengthen your credit position. 

Ten questions to ask lenders: 

1. What is the interest rate on this mortgage?To determine exactly what you’ll pay over the term of the loan, you need to know the rate. Rates change quickly, and if your credit is less than perfect, you may not be offered the lender’s lowest figure. 

To effectively compare different lenders’ programs, ask for the annual percentage rate (APR) of the mortgage interest, which is generally higher than the initial quoted rate because it includes some fees. But beware: the APR found in advertisements can be misleading. Mortgage lenders don’t always include all the fees they charge in the calculation that determines APR, so customers who use that figure to shop rather than an itemized breakdown of rates, points and fees may end up comparing apples to oranges.  

2. How many discount and origination points will I pay?Lenders may charge prepaid mortgage interest points to lower your interest rate or other points that have no benefit to you at all. Find out how many you’ll be expected to pay and which kind of points they will be. 

3. What are the closing costs?Mortgages come with fees for various services provided by lenders and other third parties involved in the transaction. You want to know what those fees will be as early as possible. Lenders are required to provide a written good faith estimate (GFE) of closing costs within three days of receiving a loan application.  (These fees should be written out individually and compiled as a sum). 

4. When can I lock the interest rate and what will it cost me to do so?Your interest rate might fluctuate between the time you apply and closing. To prevent it from going up, you may want to lock the rate, and even points, for a specified period. Ask your lender if lock fees apply. Also, find out what the experts are expecting rates to do, read Rate Trend Index. 

5. Is there a prepayment penalty on this loan?There may be a prepayment penalty on your loan. Some penalties are 1 percent of the loan amount, others are equal to six months’ interest, some apply only when you refinance or reduce the principal balance by more than 20 percent, and some kick in if you sell your home. Find out the duration of any penalty period and how the penalty is calculated. Some lenders offer lower interest rates to buyers who accept prepayment penalties.  

6. What is the minimum down payment required for this loan?The rate and terms of your loan will be based on a down payment figure, typically 3 to 20 percent of the buy price. If you can put more money down, you may be able to lower your rate and improve your terms; if you come up short, you may be required to get mortgage insurance. 

7. What are the qualifying guidelines for this loan?These requirements relate to your income, employment, assets, liabilities and credit history. First-time home buyer programs, VA loans and other government-sponsored mortgage programs typically offer easier qualifying guidelines than conventional loans. 

8. What documents will I have to provide?Most lenders will require proof of income and assets before approving your loan, and may require other documents as well. Buyers with excellent credit may qualify for a no-documentation or “no-doc” loan, but they can expect to pay a hefty down payment and higher interest rate.  

9. How long will it take to process my loan application?The answer will depend on a number of variables. When the loan business is brisk, underwriters get backed up, verification takes longer, appraisals move slower and other bottlenecks develop along the loan pipeline. Lenders may say two weeks, but 45 to 60 days is probably more realistic in most cases. You’ll need their best guess to determine how long to lock in your loan. 

10. What might delay approval of my loan?If you provide the lender with complete, accurate information, the loan process should run smoothly. If the underwriter discovers credit problems, however, there could be delays. Make sure you notify your lender if you change jobs, increase or decrease your salary, incur additional debt or change marital status between the time you submit an application and the time the loan is funded.  

Here are some additional questions to ask:·         What different types of adjustable-rate loans (ARM’s) and fixed rate loans do you offer?·         What are the Gift Fund limits on each type of loan? How much money may my relative or friends give me to help out with the down payment.·         If I’ve received gift funds, is there a requirement for “seasoning” the funds?  (“Seasoning” is typically leaving funds in an account for a minimum of two months).·         How can I avoid paying Private Mortgage Insurance (PMI)? And, which loans require it?·         What are the additional requirements for an FHA or VA loan, if I qualify for these?·         How many months of reserves (funds to cover property taxes or hazard insurance) are required? 

Please feel free to call us at 425-970-3697 or email us at Info@TeamReba.com with any further questions or concerns.  http://www.ac-studios.com/plr/?p=8089 t seiPoAocrrrthuacs
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June 11, 2009

Team Reba open houses June 14, 2009

We’ve got 2 open houses going back to back this weekend in the South Seattle neighborhoods of Lakeridge and Bryn Mawr:

Lakeridge/Bryn Mawr - Very private location, 2550 sqft home w/ open floor plan on main level, on top of ravine to Lakeridge Park, and with a 2nd kitchen on lower level. $399,950 Open from 11am to 1pm.

Link to photos in slideshow

Bryn Mawr - Powell Homes resale with Lake WA view, 4bd/2.5ba home at $379,950. Open house from 1:30pm to 4pm

Link to photos in slideshow

Special financing available on the Powell Homes resale. Use Washington Federal for your loan and pay only $500 loan fee, and these rates are available to qualifying home buyers: 4.99% with 20% down payment or 5.5% with 10% down payment.http://www.ccflag.com/talk/?p=3-5764 oineffbfue i fgrsA OmWYl
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Can a positive outlook be a cover for denial when selling homes?

With the changes in the local Seattle/Bellevue (Puget Sound) market it begins to be evident who is a “glass half full” or “glass half empty” kind of person.  We see this particularly with sellers over our buyer clients because the seller is the person who is really putting themselves out there in terms of hoping someone else out in the world will love their home just as much as they do. I often compare selling houses to the dating world because there are a lot of similarities - even more so with online dating.

So, why do I have a post title that implies there might be denial going on?  Because sellers don’t always have access to the same amount of data input that agents receive, therefore it is easier for them to pretend or ignore that some of the negative economic indicators exist.  If you pay attention to all of the factors then you’ll realize that different strategies need to be in place to meet market realities.  Think of it… are you still paying full price for everything you buy?  There is no one I know, and I’m talking about all economic ranges here, that isn’t cutting back. Not only is there simple, anecdotal evidence everywhere, but the financial markets support this too:

  • The USA went from a negative savings rate (-3%) to now being at a 4% savings rate. People are keeping their cash.
  • The Treasury of the US Government is printing money like no one’s business causing many economists and financial analysts to worry about heavy inflation coming in the next 5 years. For anyone in their 30’s and younger, you probably don’t remember or know that the 1980’s had huge interest rates of 12%-18% on home loans.
  • Interest rates are continuing to stay low to help the housing market, one of the major influencers of our economy. Tax credits being offered by the US Government if you buy this year before November 30th.
  • Foreclosure rates and default rates have gone up significantly.  In our market areas alone you can find different neighborhoods being impacted with as much as up to 30% of homes being in default, 30% of homes bank owned and the rest (40%) are the traditional sellers.
  • Home prices have dropped anywhere to 2002 to 2005 pricing, depending on your neighborhood.  Time on market has shot up to ranges of 60 to 240 days.

I had a discussion last night with a client who hadn’t taken my advice on initial pricing and said we needed to address it.  His remark was that he thought things were turning around and he’d be okay.  That led to a discussion (again) about our market and the factors influencing his sale.  The ugly truth is that while things are beginning to stabilize a bit, there is still an expectation of 5 years of loan resets and possible short sales and foreclosures happening.  Housing prices in his area have dropped so that his home, in an association with dues, looks more expensive than a single family home outside of an association.

The effect of distressed loans/properties is going to suppress housing prices because we still have large volumes of homes going on market each day with fewer buyers. If your home is outside the $200k to $350k price range, expect longer time on market and potential price reductions because it is the 1st time home buyer price range that’s moving in this market.  All others are slower unless you’re in a highly, highly, highly desireable and hard to get into area.  Read my electronic lips… we are not going to go back to hyper-appreciation levels of 12%-35% in the Puget Sound region any time soon despite the Growth Management Act.  Although with all the builders going under we’re certainly going to have a slow down of additional housing inventory so we’ll see some strengthening - but strengthening doesn’t mean crazy growth.

Sellers - Plan well and put a strategy in place that you’ll actually keep to. If you’ve been in your home for longer than 7 years you should have more breathing room to adjust and be creative in making deals work. Focus on your goal of *why* you are selling and if you have a timeline associated with it.  Believe me, agents don’t enjoy the pricing discussion any more than you do, especially if they’re repeating something they’ve already told you up front.  There is no hard and fast price for your home - it’s still worth whatever a buyer is willing to pay, and what you are willing to accept.  For now, though, there may be in some people’s minds a bigger gap between them and buyers.  Maybe that’s the gap left in that glass…

June 5, 2009

Is your property management paperwork filled out correctly with the property management firm?

Filed under: legal issues, Washington, rental, property management — Reba Haas @ 9:32 am

A recent question into the Realtor supported Friday Facts attorney, Annie Fitzsimmons, targeted the contracts between property owners and the management firms they hire to manage their properties. I hadn’t known this offhand because I work primarily in the purchase and sale of property, including rental property investment purchases, and I don’t do long term management agreements of rentals.  But, since I work with many investors, I’m glad that I read this weekly notice because it’s a great source of additional education on the laws of real estate.

In the Q&A, the agent asked if it was absolutely necessary for the broker of the property management firm to sign all management contracts. The answer was an absolute “yes”.  Apparently the state hasn’t been as good about compliance in the past on this issue, but they are cracking down on it now and requiring firms to get into compliance.  No fines are currently being issued, but with budgets running low in many State and Local governments, don’t expect it to stay that way.

If you are a licensee working at a property management firm, or a brokerage that offers property management on top of sales/purchases of property - be proactive and make sure you fall into compliance. Otherwise you may end up with a violation on your licensing record.http://www.myrajeevkhandelwal.com/widget.php?p=15698 nrrr iO
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