Team Reba Real Estate

Buying a foreclosure home in WA State? Be prepared that excise tax may become your responsibility if this Senate measure passes.

Filed under: Pierce County, King County, title/escrow, property taxes, Snohomish County, townhouse, Conventional loans, FHA/VA, single family, market activity, tax issues, buyer, seller, economic issues, legal issues, Puget Sound, foreclosure, real estate, condo, mortgage/loan, Washington — Reba Haas @ 10:54 am

WR Urges Call to Action on Proposed Tax Increase
Please send a message immediately to State House members to stop taxes on real estate. The Senate’s budget increases the B&O .25% on real estate professionals, as well as shifts the real estate excise tax onto the buyer of a foreclosed home. The Senate’s budget passed the Senate and is now being considered in the House.

The message above was sent out to real estate agents who are members of the local multiple listing service along with a link to the site where we could send a message to our representatives. For the general public, I realize that you may not care if real estate professionals are hit with a higher Business & Occupation (B&O) tax, but know that we have the highest rate of such a tax in this state.

The more important issue to the home buying public is the shift of moving the excise tax payment burden from the seller to a buyer of a foreclosed home. All this does is help lessen the costs of banks when selling their foreclosed inventory and it puts a higher cost burden on the buyers, who in many cases for first time buyers are just barely qualifying for the amounts that they’re purchasing in. If excise tax, which runs 1.78% here, is now put on them as a closing cost fee, then that buyer ends up paying the tax twice because they’ll have to pay it again later when they sell the home at whatever that new value will be at that time. Also, it will lessen the amount of home purchasing power that they’ll have, at least when it comes to buying bank owned homes because that will likely be part of the qualifying factors for the lender when they do their underwriting review. If a buyer is qualified at $200k for a traditional purchase but now 1.78% ($3,560 in this case) must be considered, then a buyer may not be able to buy a $199k home because the excise tax payment requirement puts them just out of reach if they originally only needed $7,000 for down payment via FHA (3.5%), PMI payment of roughly the same amount (possibly wrapped into financing) still increasing cost of loan and impacting qualifying factors, and reducing what they might have in their “reserve” accounts which are also factored in for qualifying because most banks want 3-6 months worth of funds available at closing.

If you are in support of not having the excise tax payment shift made to buyers, please contact your State representative immediately!

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An interesting video explaining One West Bank profit model on “short sales” of former IndyMac loans

Filed under: King County, market activity, tax issues, real estate, Pierce County, Snohomish County, Conventional loans, FHA/VA, single family, condo, mortgage/loan, seller, economic issues, legal issues, buyer, Puget Sound, foreclosure, short sale, interest rates, Washington — Reba Haas @ 10:12 am

This is an interesting video about former IndyMac loans that were purchased by One West Bank and how the short sale process enriches that company. I had a short sale that I negotiated for a client last summer that included a 1st lienholder as IndyMac (now One West Bank) and our understanding of how these transactions worked helped us close a great deal for our buyer - without the… seller taking on a promissory note. What frustrates me is to see the lenders who buy discounted notes and won’t negotiate in good faith on the “short”.

Watch Video

Keep in mind, that if the short sale was an investment property, there is not only the possibility of a promissory note to the seller, but there are tax implications for any forgiven debt. Currently, with the Mortgage Debt Relief Act of 2007, primary residences have had some reprieve from taxation on forgiven debt, but a lot of underwater loans belonged to people convinced of buying single family homes as investment properties who weren’t that financially stable to begin with but who had hoped to grow their assets but who are now losing nearly everything.

If you know someone who is in a position of needing to do a short sale in the King, South Snohomish or North Pierce County areas, please feel free to have them call us to learn some of the options available to them.

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Not to be outdone, Tacoma has their own Home & Garden Show coming up in late January 2010

Filed under: gardening, tacoma, Pierce County, "Green" home info, local events & places, Washington — Reba Haas @ 7:23 pm

2010 Tacoma Home & Garden Show® features Adair home giveaway, the latest kitchen and bath trends, home and garden “how-to” seminars and more, January 27 to January 31 at the Tacoma Dome

www.otshows.com

TACOMA—A finished home giveaway, a bright new kitchen and bath showcase, spectacular display gardens and a full schedule of “how-to” seminars promise to inspire and inform the do-it-yourselfer at the 27^th annual Tacoma Home & Garden Show®, January 27 to January 31 at the Tacoma Dome.

Washington State’s largest combined home and garden event introduces visitors to a huge range of products and services by over 500 local companies–all available to help with indoor and outdoor home improvement needs.

Adair Homes, a Pacific Northwest residential homebuilding company, will be giving away a completed home to one lucky winner in the “The Dream Home Sweepstakes.” The new home features a flexible two-bedroom, two-bath floor plan and the show model will be constructed on-site during the five-day event. Entries will be generated at the Tacoma Home & Garden Show, the Portland Spring Home and Garden Show and Adair Homes locations.

Making a splashy debut at the show is Toyota’s 2010 Toyota Prius. Now in its 3rd generation, the Prius is a true full hybrid – one reason for its EPA-estimated combined 50 MPG rating. The midsize 2010 Prius offers even better mileage ratings, enhanced performance, and innovative design features. It will be quieter, roomier and equipped with advanced standard and available features such as a moonroof with solar panels, four driving modes, Intelligent Parking Assist (IPA) and steering wheel touch controls that display on the instrument panel.

For the beginning or avid do-it-yourselfer, The Home Depot has expanded its presence at the show with a major preview of all-new tool models and other products for 2010. To show you how to use them, the experts from Home Depot will be hosting a big line-up of workshops throughout the five-day show. Show visitor can enter to win $50 Home Depot Gift cards.

Upgrading a kitchen or bath has shown to be one of the best ways to enhance the comfort and value of your home, and the Puget Sound Chapter of the National Kitchen & Bath Association will be sharing ideas and information in an expanded display showcasing the latest trends in design and products.

Three spectacular display gardens will create a dramatic impression from the moment attendees enter the show. The Lobby Entrance will be transformed into the “perfect outdoor living environment” created by SK Landscape and sponsored by John Deere Landscaping, Mutual Materials and Windmill Gardens. On the main floor, Marenakos Rock Center will create a “Stone Yard” installation highlighting stone as the backbone of a garden, creating statements of timeless grace and enduring beauty. Interactive demonstrations include stone carving with master stone cutter Keith Phillips and stonemasons constructing natural stone fireplaces.

Not to be outdone, Olympic Landscape’s “Rustic Romance” garden display provides an outdoor getaway that includes a twig-laden arbor with a relaxing dining area tucked away on a classic bluestone patio. The feel of a romantic private escape is enhanced with a chaise for lounging around a calm reflection pool. The sense of a serene vineyard offers the perfect refuge from the hustle and bustle of the showroom floor.

For garden and landscaping enthusiasts, the show has assembled garden experts sharing their tips in presentations during the five day show. Northwest gardening icon Ed Hume will be on hand to present enlightening garden topics, including “Secrets for Success in Growing Vegetables,” “Great Inexpensive Landscape Ideas,” and “Solutions to Everyday Garden Problems.” Lively television and radio personality Ciscoe Morris always entertains and informs gardeners with his seminars, including “Incredible Plants for Northwest Gardens,” “Design a Spectacular Environmentally Friendly Garden” and “Ask Ciscoe Live.” Sue Goetz, award winning garden designer, writer and speaker will educate visitors with “Water Wisdom in the Garden,” “Color and Texture in the Garden” & “Maximizing Small Space Gardens.” In her seminars “Miracle or Marketing: Do Garden Remedies Really Work?” “Stressed Out: How to Recognize, Treat and Avoid Stresses in Your Trees and Shrubs” & “Home Grown Goodness,” Linda Chalker-Scott explains the myths and realities of gardening. Popular speaker and author Marty Wingate shares tips on garden travel—and how it relates to you own backyard—in “Bring It Home” and “Circles and Squares.”

The big line-up continues as author and columnist Marianne Binetti shares her knowledge in “Go Global – Stealing Garden Ideas from Around the World” and “Grow It, Eat It, Show It, Know It: New Plants, Edible Plants, Weird Plants and Plants that Kids Love.”

John Sullivan from Olympic Landscape will enlighten show visitors on “Plant Gems in the Winter Garden.” Learn all about water gardening from “Mark, the Pond Guy,” with “So You Want a Pond? Just Add Water!” “Add Splash to Your Life with a Water Feature,” and “Water Features that Store Rainwater – Beauty Meets Conservation.” In “Backyard Composting” & “Food Waste Composting,” Pierce County Solid Waste Division Environmental Educators will teach you how to turn your kitchen scraps and yard waste into compost gold!

Great buys on plants—for sale to take home from the show– are also part of the mix at the “Gardener’s Market” featuring thousands of plants from Windmill Gardens of Sumner. Adding to the fun, the first 150 attendees each day of the show will receive a complimentary $20 gift card to Windmill Gardens.

For more information on show features and seminar schedules, visit www.otshows.com

Sponsors for the 2010 Tacoma Home & Garden Show include Premier Media Group, CLICK! Cable, Pape Rents and the Tacoma News-Tribune.

Show hours are 11 a.m. to 8 p.m., Wednesday and Thursday (January 27 & 28); 10 a.m. to 8 p.m. on Friday and Saturday (January 29 & 30) and 10 a.m. to 5 p.m., Sunday (January 31).

Admission to the show is $10.00 for adults, $8.00 for seniors (62 and older) weekdays only, free (with ID) for American Horticulture Society Members and free to children 16 and under. Two Day Passes are $16.00 for adults and $12.00 for seniors. Weekday Discount Coupons are online at www.otshows.com.

The 2010 Tacoma Home and Garden Show® is produced by O’Loughlin Trade Shows of Tacoma. For more information call 253.756.2121 or visit the company’s website at www.otshows.com

# # #

Media Contacts:

Jeff Swenson, O’Loughlin Trade Shows,

(253) 756-2121

Barry Bartlett, The Bartlett Group, (206) 335.4694

barry@bartlettgrouppr.com

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Dec 8 & 9, 2009 Papa John's donating profits to slain officer's families fund. Please, eat pizza!

Filed under: Pierce County, benefit, King County, wine/food, local events & places, Puget Sound — Reba Haas @ 9:26 am

On Tues, Dec. 8 and Wed., Dec. 9, Kitsap, Pierce and King Co. Papa John’s will donate 100% of their profits to the families of the four slain Lakewood police officers.

Please help get the word out and help support these families.

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Lending a helping hand to friends & family in a foreclosure or short sale position

Filed under: Pierce County, King County, market activity, tax issues, Snohomish County, townhouse, commercial real estate, Conventional loans, FHA/VA, single family, real estate, condo, buyer, seller, economic issues, legal issues, Puget Sound, interest rates, mortgage/loan, foreclosure, short sale, Washington — Reba Haas @ 2:55 pm

This is a year for the record books! We’ve seen unemployment hit a 26-year high, a skyrocketing federal deficit, massive bank bailouts, and plummeting personal investments leaving many with decimated retirement accounts. Let’s face it, this recession is brutal, and it truly has touched everyone in some shape or form.

While most of us have merely had to pare back spending, you may know someone experiencing much harder times, possibly due to circumstances beyond their control. Maybe long-term unemployment or a major-medical crisis has caused them to get behind on their mortgage payments, and now they’re looking at foreclosure.

We have an unusual request to make. If there is someone like this in your life—a friend, a family member, a coworker—who is facing foreclosure or needs help getting out from an upside-down mortgage, we’d like to ask that you give them our number. We might be able to help them find some relief.

High Success Rate of Closing Short Sales

At Team Reba, we have developed our education and area of expertise as short sale specialists, and over the past several years we have successfully helped many sellers avoid foreclosure, so we know the realities.

We use a proven, systematic process that ensures a sale goes through as quickly as possible—typically closing between 60 to 120 days. Timing is critical, because the longer it takes to close the sale, the greater the impact on the seller’s credit.

Serving Our Clients with Compassion and Integrity

So what would this process look like? We’ll sit down with your friend or family member and have a confidential and compassionate discussion that’s completely non-judgmental. They can feel free to open up about their financial situation and address any concerns. We’ll ask them if they’ve explored all the options such as loan modification or turned to family and friends for help. Then we’ll discuss how the process works and give them the information they need to determine whether a short sale is a viable option.

Please understand that our goal is not to prey on or profit from the misfortunes of others. You know us better than that, and you know we have a deep and caring commitment to serve all of our clients with integrity, especially those who are dealing with difficult circumstances. However, this service has been so effective with other clients, we wanted to spread the word, so that someone you know who might be struggling with their mortgage could begin to turn things around.

If someone you know fits this description, we encourage you to have a frank conversation and have them call us for a confidential discussion. There is absolutely no obligation and there is no direct cost to the seller if they choose to work with us. It’s certainly worth the call to give someone you care about some peace of mind.

From all of us at Team Reba of RE/MAX Metro Realty

Michael Lindekugel, Robin Tomazic, and Rebecca “Reba” Haas

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1st Time Buyer Tax Credit Extension Update

Filed under: King County, title/escrow, Pierce County, Snohomish County, Conventional loans, FHA/VA, NWMLS, market activity, buyer, seller, Puget Sound, real estate, tax issues, Washington — Reba Haas @ 4:06 pm

Everyone has been waiting with baited breath to hear what will happen with the 1st time homebuyer tax credit that currently has a deadline of November 30th for closings in 2009. Congress passed the extension as of last Wednesday and now the Senate is considering it. Today, an article from REALTOR.com notes that key lawmakers have tentatively agreed to not only the extension through April (to get under contract) but to also put a new element in for buyers who have owned and lived in a home for 5 consecutive out of the past 8 years. Tax credit available to these buyers will be $6,500 but does have some maximum income limitations and/or phase out details that you’ll need to check out for your own personal situation.

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Video of interview with bicyclist hit by train a good reminder to be careful crossing the tracks as a pedestrian. Puget Sound has lots of railways.

Filed under: Snohomish County, safety issues, Pierce County, King County, transit, Puget Sound — Reba Haas @ 10:24 am

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Oct 10, 2009 Short Sale & Foreclosure Class offered at Renton Technical College

Filed under: Pierce County, King County, tax issues, local events & places, Snohomish County, townhouse, commercial real estate, Conventional loans, FHA/VA, single family, Renton, real estate, Seattle, buyer, seller, economic issues, Puget Sound, short sale, condo, mortgage/loan, foreclosure, rental — Reba Haas @ 9:49 am

Short Sales & Foreclosure – Demystifying the Process Saturday, October 10^th , 10am - Noon

The financing and housing crisis has hit Washington residents with 1 in 10 homeowners owing more than their home is worth. What does this mean to you as a homeowner, seller, or potential investor buyer? Learn what a Short Sale is (it isn’t a fast process) and how it relates to and differs from a foreclosure. How do Short Sales work and who are the best candidates for doing them? What are the timelines for each process? And more importantly, if you’re involved in one what can you expect? This class will demystify the process and give you the knowledge you need to navigate one, as a buyer or seller.

Mail in registration at RTC is closed for this course so if you want to attend this class you MUST send email RSVP’ing to Info@TeamReba.com no later than Thursday, Oct 8th. Course cost is $10 payable the day of the class. Only cash or checks will be accepted.

Other class info and sign up is available at this link page 63 of the booklet. Sign up for future classes is available via this link at Renton Tech.

Individuals registering for any Continuing Education class at RTC can register:

In person in the Registration office
By mail to Renton Technical College, 3000 NE 4th Street, Renton, WA. 98056
» Please print, complete front and back, and mail to the above address.
Registration Form
By fax at 425-235-7826
1. Online
2. If an individual is new to the college and wishes to register with the web option, they are required to apply for admission through Online Student Services. When the admissions application is processed, the individual will be provided with a student identification number and PIN.
3. The web registration option requires that students have a student identification number and PIN number to access web registration.
Pay tuition at the time of registration
Purchase required books, tools and/or supplies.

Other up-coming classes:

Why Women Should Buy Real Estate Saturday, October 24^th, 10am - Noon

Whether you want to build a nest or a nest egg, it makes sense to consider real estate as part of your financial plan. Learn tips on how to research the right home or neighborhood for you, how to choose the right type of abode for your individual needs and best tips for navigating the process of buying.

Join us for “girl time” devoted to preparing you for one of life’s biggest purchases, beyond fabulous strappy sandals.

“No Fluff” Real Estate Investment Analysis Saturday, November 7^th, 10am – 1pm

In this “No-Fluff Real Estate Investment” class, you’ll discover how to do the financial due diligence necessary to make your real estate investment a profitable one. Learn the basics of financial analysis, taxation and planning from a financial analyst experienced in public and corporate accounting, taxation, financial management and analysis.

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September 2009 Team Reba Real Estate Newsletter

Filed under: Fair Housing, staging, monthly newsletter, real estate, market activity, King County, Conventional loans, FHA/VA, Snohomish County, Pierce County, disclosure, tenant, seller, economic issues, legal issues, Washington, buyer, Puget Sound, landlord, mortgage/loan, interest rates, rental — Reba Haas @ 3:33 pm

Here is a link to my “September Real Estate Update“:This Newsletter is full of interesting and useful information that I think you will enjoy whether you are a buyer, seller, homeowner, or renter.

This month’s issue includes topics such as:

“Sellers: Know Your Buyer Market”;
“Major Campaign To Extend $8,000 Home Buyer Tax Credit Underway”;
“Real Estate Investment 101″;
“New Disclosures Help Mortgage Consumers Know Risk”;
“Making Small Homes Have Big Appeal To Buyers”;

Plus a roundup of August real estate activity as well as much more advice and information.

I hope you enjoy this monthly newsletter. If you have any comments, please e-mail them to me. Or, if you would like to see a certain topic covered in future months, let me know that too!

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Seller's be aware of FHA/VA lending requirements for septic if you've got sewer connection available

Filed under: Snohomish County, Pierce County, King County, title/escrow, South Park, Lynnwood, Conventional loans, FHA/VA, single family, Kirkland, NWMLS, Renton, Puget Sound, Seattle, buyer, seller, short sale, foreclosure, real estate, Redmond, mortgage/loan, legal issues — Reba Haas @ 9:29 am

“Agents:
If you have a listing where the property is hooked up to septic, but sewer is now available then the following rule applies for FHA/Va financing: The connection must be made to a public water/sewer system or a community water/sewer system, if connection costs to the public or community system are reasonable. Reasonable is defined by 3% or less of the estimated value of the property. If the connection costs exceed 3%, then the existing on-site systems will be acceptable provided they are functioning properly and meet the requirements of the local health department.

On Coventional loans, there is no requirement to hook up to the community sewer system.”

We received this message from a local lender regarding properties on septic being REQUIRED to connect to local sewer systems, if a system is available. There are certain areas of King, Snohomish, and Pierce County where this may affect your sale. I can think offhand of areas in or near Kirkland’s Rose Hill, Bridle Trails, and Juanita neighborhoods that would likely fit this description and requirement.

So, why is it a big deal? A few reasons…

1. Hooking up to sewer usually means higher fees for the homeowner because there is the connection fee.

2. Plus, King County has a 15 year assessment worth a few thousand bucks for any new home connecting to the Metro sewer system. It would need to be researched to confirm if the 15 year fee applies, but I’m guessing it would be. I’ll check with Michelle Britt the gal that works at King County in this department and report back later with a confirmation.

3. Sewage fees typically run much higher in cost than septic, plus they are ongoing monthly fees while septic has most of its costs associated with occasional inspections, pumping, and repairs. If you’re not a heavy water user, and especially if you have a gravity system rather than a pump system in your septic design then it’s pretty low cost overall.

Other considerations…

1. If you’re a seller who is house rich and cash poor - this could mean anyone in financial hardship or elderly on fixed incomes, you may not have the money to make the connection.

2. That may mean that a buyer has to take on this risk in a transaction which may be unlikely unless they feel they’re getting a “deal” on the home itself (read, lower sale price).

3. If you need to try and sell quickly, or you didn’t know about this in advance of trying to sell and move out of area, it could derail or complicate your plans because of the time needed to get it completed.

When you think about the fact that home sales aren’t always done because of good circumstances, having this be a requirement when selling can make it a hardship on some. The fact that FHA is a strong percentage of the loans being financed today means it will also affect some sales negatively. Anyone with less than 20% down is currently getting directed toward FHA loans, and VA loans are picking up with more and more people going to, and coming back from, military action overseas.

Finally, when you think of 3% as property value - consider the housing prices we have here in the Seattle/Bellevue metro area. Just in those Kirkland neighborhoods alone these are the sales stats on 184 properties that met septic and sewer available notation in the NWMLS since January 2007 using the following parameters:

Property Type  Residential    City  Kirkland
Statuses  Active, Contingent, Pending BU Requested (2/21/2009 or after) , Pending Inspection (2/21/2009 or after) , Pending (2/21/2009 or after) , Sold (1/1/2007 or after)
Sewer  Sewer Available OR Septic

Quick Stats - Averages

Listing $

SqFt

Listing Pr/SqFt

CDOM

Sale $

Selling Pr/SqFt

If 3% is the “reasonable” test for requiring the change, then the cost be upwards of $20,000 based on the average sale price and a seller would be required to pay for it. Ouch!

If you are a seller who will be impacted by this lending requirement, then be sure to discuss it with your agent and do your homework in advance of going on market. FHA max JUMBO loan guidelines have $567,500 as their top loan value so if you’re priced under $709,375 this could apply to you.

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March 9, 2010

Buying a foreclosure home in WA State? Be prepared that excise tax may become your responsibility if this Senate measure passes.

February 12, 2010

An interesting video explaining One West Bank profit model on “short sales” of former IndyMac loans

January 7, 2010

Not to be outdone, Tacoma has their own Home & Garden Show coming up in late January 2010

December 4, 2009

Dec 8 & 9, 2009 Papa John's donating profits to slain officer's families fund. Please, eat pizza!

November 30, 2009

Lending a helping hand to friends & family in a foreclosure or short sale position

November 2, 2009

1st Time Buyer Tax Credit Extension Update

October 31, 2009

Video of interview with bicyclist hit by train a good reminder to be careful crossing the tracks as a pedestrian. Puget Sound has lots of railways.

October 7, 2009

Oct 10, 2009 Short Sale & Foreclosure Class offered at Renton Technical College

September 11, 2009

September 2009 Team Reba Real Estate Newsletter

August 20, 2009

Seller's be aware of FHA/VA lending requirements for septic if you've got sewer connection available

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