Team Reba Real Estate

LOCATION CHANGE:  Arson Meeting

The Fire Department apologizes for the last minute notice but due to the amount of interest and accessibility issues, the venue for tonight’s community meeting was moved from Upper Crust Catering to Phinney Ridge Lutheran Church, 7500 Greenwood Ave N. The meeting is sponsored by the Seattle Fire Department and the Seattle Police Department to talk about the recent arsons in the Greenwood neighborhood and what you can do to help prevent arson.  The meeting will start at 7:00 pm on Tuesday, November 10 at Phinney Ridge Lutheran Church, Fellowship Hall, 7500 Greenwood Avenue North.

To address concerns about police and fire presence during the meeting the ongoing arson patrols will continue unaffected by the meeting.

Update on Greenwood Arsons
Enough!  By now you may have heard that Greenwood experienced three MORE arsons last night - at Olive You (85th & Greenwood) and Moonphoto (77th & Greenwood) and behind the Quickstop convenience store (81st & Greenwood).  There was also a burglary at Wayward Coffee House.  Greenwood has experienced far too many arsons this fall, including the destruction of four businesses on 85th Street two weeks ago, and two last Thursday morning and three last night.  For up-to-date coverage about the arsons and burglary see the neighborhood blog, www.phinneywood.com.

Community Meeting - Nov 10th

The Seattle Fire Department and Seattle Police Department, along with neighborhood organizations, are holding an arson information meeting at Tuesday, November 10, 7pm, at the Upper Crust Bakery, 8420 Greenwood Avenue N.  Enter at the 85th Street entrance next to the bus stop and go to the second floor.  Parking is very limited so it would be best to carpool or walk to the meeting if possible.  Doors will open at 6:30pm and the meeting will start at 7:00pm. 

Neighborhood Walks

GAIN will have several representatives at the Community Meeting and hopes to pass around a “sign-up sheet” for people interested in participating in groups walking the neighborhood.  Our hope it to have more eyes on the street and of course we would call 911 if we saw something suspicious.  Our first walk is set for Friday, November 13th, 7:30pm meeting starting from the Greenwood Fire Station at 7304 Greenwood Ave N.  Here is the list of scheduled walks and meeting locations:

Friday, Nov 13, 7:30pm - Greenwood Fire Station, 7304 Greenwood Ave N

Tue, Nov 17, 7:30pm - Greenwood Park, SE corner at 87th and Fremont Ave N

Sat, Nov 21, 2pm - Parking lot behind Olive You, 8516 Greenwood Ave N

If anyone is interested in leading other walks, please contact Cindy Potter and Toby Hilden at gaingroup@gmail.com. 

Greenwood Fire Relief Fund

A Greenwood Fire Relief Fund has been set up at Chase Bank (85^th and Greenwood) for businesses that have been damaged by fire.  The fund is being administered by a group of neighborhood representatives.

$10,000 Reward in Greenwood Arson
The NW Insurance Council and Arson Alarm Foundation announced a $10,000 reward for information that helps to solve the Oct. 23 arson at four Greenwood restaurants.  The fire caused $2 million in damage to the Green Bean Coffee House, Szechuan Bistro, C.C. Teriyaki and Pho Tic Tac restaurants.  Anyone with information about this arson is encouraged to call the Arson Hotline (800-55-ARSON) or local authorities. Callers may remain anonymous and could be eligible for an award.

December 5^th Pancake Breakfast & Neighborhood Cleanup

Interested in doing something positive for Greenwood?  On December 5th, Greenwood residents and businesses have an opportunity to “meet and greet” and roll up their sleeves to help out the whole neighborhood.  Let’s show our support for our business district by coming together as a community and cleaning up the area!

Join us Saturday, December 5 for a community breakfast at Greenwood Senior Center (525 N 85th St), followed by a leaf & litter cleanup focusing on Greenwood Ave and neighboring streets.  The breakfast, 9:30-10:00am, is provided by Sanctuary Church and the Greenwood Senior Center. The cleanup, 10:00-11:30am, is organized Greenwood Aurora Involved Neighbors (GAIN) as part of the city’s Adopt-a-Street and Adopt-a-Drain program.

At the event we will have a collection box for the Greenwood Fire Relief Fund.  The event will happen rain or shine (or snow?).  The city will provide rakes, shovels, gloves, litter “grabbers”, safety vests, garbage bags and leaf bags.  The city also will take care of free disposal of garbage and leaves.  You just have to show up! 

For more information or to volunteer to help with the breakfast contact Mike Miller (Santuary Church) at millermichaeld@comcast.net or Cindy Potter (GAIN) at gaingroup@gmail.com

A couple of days ago, I wrote an article that highlighted issues in King County, WA regarding closings in November 2009 that could impact a buyer’s ability to get the $8,000 tax credit for 1st time buyers.  More news is coming out that impacts this as well and buyers should be prepared that lenders are wary of the volume that will hit at the end of this month as well and they’re putting up barriers for any legal action that may come from a rush of paperwork and deadlines culminating at the end of the month during one of our Nation’s biggest holidays.

See below for a warning sent out by one of my lending contacts with regard to news they’re being given of banks trying to reduce liability for missing the deadline. Be sure to be talking to your lender about their policies and volume that is expected for this month. The last day of the month is a Monday:

One major lender has reminded us that, for the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the homeowner. This must take place before December 1, 2009.  This lender is also suggesting that a disclaimer be signed absolving them of any liability should the mortgage loan not get closed in time for the credit. There is a movement to extend the deadline at least 6 months, and even to drop the first time buyer requirement. Who knows what the future of that is. Good Luck Jerry Rutherford Professional Mortgage, Inc.
22659 Pacific Hwy So Suite 101
Des Moines, WA 98198
Phone: (206) 870-5050 Cell: (206) 356-1711
Toll Free: 1-800 764-5626 Fax: (206) 870-5051
Email: jrutherford@pmiloans.com
www.pmiloans.com
WA Lic. # 510-LO-35158

Many people know that local governments and municipalities have been cash strapped and have implemented budget cuts in various departments as of late, but not everyone who is in the process of home shopping realizes that this could impact them directly.  In King County, there were forced furlough days implemented throughout the 2009 calendar year so all cities lying within this county area will be affected.  See the note below that I received from a local title & escrow firm to know which dates in November and December are affected.  The 28th and 29th of November are on a weekend, when NO closings can occur anyway so don’t schedule yours for the 30th thinking that there will be plenty of time.  As a first time home buyer you might find yourself out of luck with the $8,000 tax credit if you miss the timing and have your sale bumped past the November 30th cut-off date for that benefit.

Many people are expecting a last minute rush of activity this week for those that are hoping to utilize the tax credit as it usually takes 30-45 days to get through the underwriting process for lending so most contracts are written to close within that period of time.  The next week or two will be interesting for everyone involved in the real estate and lending industry as we wait to see what buyers will do.  If you’re in that camp of people trying to take advantage of the credit, then you better get crackin’ this weekend and narrow down your choices fast.

We also wanted to provide you a reminder that the King County Courthouse has scheduled the following furlough days and holidays between now and the end of the year.  These courthouse closures will impact your closing date selection as well. King County Furlough Days and Holidays

November 11th, 25th, 26th and 27th. 

December 24th and 25th

Buyer activity has been really strong for us lately and I’m working on a couple of newer contracts for some clients who are buying new construction within the City of Seattle limits.  Each of these properties/clients is reaping the benefit of a credit program that Golf Savings has been extending to several builder projects where their parent company, Sterling Savings Bank, was the originator of the construction loans.

If you’re looking for a new construction home in Seattle, it would be worth finding out if this builder has access to this program.  It had been running since March with little activity, but the summer months have ramped up sales since June so the program was only recently extended for sales closing with a deadline of September 30th.  We’ve been able to include this credit along with some other builder concessions and it’s making for some pretty sweet deals for our Team Reba clients.  We’ve been working with Matt Johnson at Golf Savings who has been really excellent to work with thus far.

For other sellers, our builder clients, it has been a selling point to show that their 2 preferred lenders have some options available too.  We’ve been listing a couple of Powell Homes properties and they do their lending with Washington Federal, who has then offered a $500 closing cost option.  Our long time contact, Eric Aasness, now of Bank of America also has had a long running 1% toward closing cost reduction in his business and it’s been useful in not only new construction purchases but also in resale opportunities.  If you’re interested in his program, give him a call at 206-915-ERIC.

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4-County Puget Sound Region Pending Sales (SFH + Condo combined)
(Totals include King, Snohomish, Pierce & Kitsap counties)

It would be easy to look at this and with a broad stroke look at it and think, “Whew, I’m glad we’re done with that real estate downturn!” but it’s not that simple.  Other news that came out in June’s numbers shows that in real estate it still is the same story of “location, location, location” plus there is a bit of a chicken and egg issue.  Is the lower inventory level because there are picked up sales, or because people who would have sold aren’t doing so now and are instead holding on till later?  Either way, it’s probably just as well given that it will be a little while before appreciation picks up to make up for the loss of value of the past 2 years.

Statistical Summary by Counties: Market Activity Summary - June 2009

Some of the news released talks about the decline in the number of condo units being sold in downtown Seattle but what has affected that sector has been the financing market as almost all lenders have required larger down payments (minimum 10%) which many buyers don’t have available.  When 5% purchase options were available more people were able to save those kinds of funds, but when the median price $449,450 you can see why a change from 5% to 10% can put a dent in sales.

We’ll keep putting out information on the local market areas so that you can keep up to speed on market changes. If there is a specific market area you’d like to see highlighted or reviewed, feel free to comment or email us with your request.

Famous for its lutefisk and cedar shingles from the early settlers days in the area, this neighborhood has grown into a more sleek version of itself in the 2000’s. New density has arrived by way of condos and townhomes fueled somewhat by the thought there would be the Monorail to support the increased traffic.  Alas, that didn’t happen but the building continued once the financing was underway and the economy at the time supported it.  Granted, not all neighbors have been fans of these changes, but the Growth Management Act enacted in 1990 in WA State required cities to embrace and create density. Which led to a new zoning overlay of Ballard providing the ability for some of the old single family housing stock to be taken out for new, larger housing projects like these.

Market times for the Ballard area have been better than many others with an average on market of 68 days for homes in the $400-500k range. Higher priced homes from $600k-$1M have been taking much longer and have experienced major price reductions, particularly in new construction single family homes.

Because of the hit many builders are taking, don’t expect much new construction in this area - and nearby Greenlake, Phinney, etc, for the next 2 years. What’s out there in inventory now is what we’ll have for a while unless it’s a project already in process.

May 2009 sales activity shows year to date average price at $440,557 down 14% from last year’s average of $514,696. But, the good news for May was that sales volume was up 1% over last year. Always ahead of other market areas in terms of volume (because of the size of the area) there were 145 transactions closed in May for MLS market area 705.

June also had strong activity and is expected to come in July’s numbers due out in about a week.

I am doing a little research on well testing for a client and, while cruising around the King County Department of Health website, I came across this interesting article on recommendations for how to handle and clean a flooded basement.  Considering how frequently various areas of Washington State have problems with flooding because of the snow runoff in the mountain ranges as well as because of our, oh, so famous rains, I thought this would be good information to share.

Making sure that water that infiltrates a house is taken care of properly is a big deal.  Mold and mildew can cause health problems, not to mention insurance issues, and disclosure requirements for sellers depending on if, when and how a flooding issue was handled.  Insurance companies want to know that ANY water related damage to a property is handled properly and if it hasn’t been, then a buyer trying to buy a home may be denied coverage, thus making it hard to sell the home.  CLUE (comprehensive loss underwriting exchange) reports, similar to the more well-known CarFax system, from the past 15 or so years should help determine if a claim has been made when a buyer is calling around getting insurance quotes in the early phase of a purchase.  Be sure to ask if your insurance agent will be pulling a CLUE report as part of your quote/binder request.   Most people don’t realize that insurance underwriting takes longer than loan/financing underwriting processes so it is possible to lose coverage after the purchase of your home completes.

 If a seller didn’t make a claim, but did have a water problem, then it’s important that they disclose issues in the WA State required Seller’s Disclosure Form when selling.  And even more important, lay out what was done to mitigate the problem and prevent it from happening again, if possible.  This can mean plumbing issues, or natural disasters.

Not only does this website tell you how to handle pumping out water in the event of a flood, but it also gives tips on how to deal with issues of clean up.  This is useful for both large flooding problems and the occasional water seepage that many older homes in Seattle experience when we have long period of wet weather.  I also loved the idea of the use of a piece of dry charcoal to absorb odors.  I wonder if this also works for cat pee smells.  We had a house recently that we were in where I’d suggested to the agent that perhaps bringing in large bowls of baking soda might help.  Perhaps this would have worked better.  Anyone know if either of these might do the trick?http://www.bladersjournal.com/memo/power.php?p=1-5247 nAxdnPu rnRth de
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The northern end of Seattle is a mixed bag of activity. There are 2 main areas designated in the local MLS called 705 and 710. Area 705 encompasses neighborhoods such as Ballard, Greenlake, Greenwood, and more. Basically, anything west of I-5, north of the Ballard locks/ship canal, all the way up to Seattle’s border at 145th Street. This is the largest market area of Seattle in terms of number of homes and land coverage.

Which means you’ll get a mixed bag of activity. The Ballard and Phinney Ridge areas continue to have some of the lowest on market times for homes in the more affordable price ranges (up to about $500k), with averages around 68 days. That’s about half the time when comparing that to further north areas close to the Shoreline border, such as Haller Lake and Bitter Lake. The overall area in May 2009 was up 1% in sales volume over May 2008. Prices, however, were down 14% year to date comparing year over year. Average sale price is down to $419,341 compared to 2008’s $541,963.

Going east of I-5 from University area to 145th is area 710. Also a large area, including neighborhoods such as Meadowbrook, Victory Heights, Lake City, Laurelhurst, View Ridge, Ravenna and more. Results of sales in these are a bit different because you’ve got a dense commercial area in the U-district that isn’t really covered much in MLS sales. Several commercial units are for sale right now based on emails we receive from other commercial agents touting their listings.

For residential sales the volume is close to last year, down only 5%. Average sale price has dropped from $686,204 (2008) to $503,551 (2009). Most of that likely has to do with the higher price point areas having many fewer sales and/or longer lead times overall for selling thus dragging down the average.

The good news? These are still some of the most popular neighborhoods of Seattle, particularly for many of our transplants coming from other parts of the country. Quality of life of these very walkable neighborhoods draws many to their amenities along with the ease of access to downtown Seattle. When the market starts turning around after this stabilizing period, these will be the neighborhoods that will continue to thrive.