Some very good questions to ask when buying a home. I've got a whole lot more that you should ask based on your individual situation, just ask and ye shall receive!
First-time home buyers have a lot to think about, and sometimes they don't consider all of the factors that will impact their enjoyment of their new home.
A handful of recent home buyers in St. Louis say what they wish they would have asked before buying a property. The issues they raise are valid concerns for anybody buying a home practically anywhere:
For pet owners: How welcome and comfortable will my pet be in this home? Are there any pet restrictions and is there a safe convenient place to walk a dog?
For condo buyers: How often and by how much have the condo fees gone up in the past? Is there a maintenance fund, and how large is it? While past performance is no guarantee, stable fees and good planning in the past is promising.
For homes with basements: Does water sometime seep into the basement or other parts of the home? Has this property ever been flooded?
For everyone: Who are the neighbors? Do any of them have noisy animals or hobbies?
For homes near vacant land: What is the future of the adjacent open land? Just because a piece of property doesn’t have anything built on it now doesn’t guarantee that it won’t.
Wow! Can you believe that 4th of July is next week? We've already passed the Summer solstice and our days are getting shorter. We'll officially be in the second half of 2007 on Sunday. Time flies when you're having fun as the old adage says.
Well, what could be more fun than heading out on the 4th of July for the three F's? (food, fireworks and fun). Here's a short list of things to do around the sound this coming 4th of July. If you've got something to add to the list, feel free to post a comment here and I'll post it ASAP.
Remember, keep your 4th safe and sane. Follow all the rules for your area for fireworks and above all, have FUN! Take a few moments on the 4th to remember and give thanks to those of us that are abroad keeping us safe and protecting our freedoms we fought so hard to get. On this, our country's 231st birhtday it's important to remember from whence we came so as to direct where we're going.
Happy 4th of July everyone!
Here's the list:
Pirece County: Steilacoom - Day long 4th of July celebration on Layfayette street as well as a Puget Sound cruise on the ferry "Christine Anderson". Cost of the ride is $45.00 and includes a light summer fare and close up view of the fireworks. More information on Steilacoom's website.
Tacoma - Once again, Tacoma will be having it's "Freedom Fair" along Ruston way. There is an online auction, an air show, games and all kinds of fun for the kids. Check out their website for more information.
Tacoma - The dragon boat races are back! The Red Wind casino presents the Third Annual Dragon Boat festival with Dragon boat races on Commencement bay. This is really a neat event and lots of fun for the kids!
Sumner - The Arts Commission is proud to once again present the Music Off Main summer concert series in downtown Sumner's Heritage Park. Throughout the month of July, local performers will get toes tapping and hands clapping along with Big Band, classic rock, R&B, Western bluegrass and Tex Mex. All concerts are free
Fort Lewis - Celebrate Freedom Fest with Fort Lewis Wednesday, July 4, at Cowan Stadium. The festivities begin at 10 a.m. and last through the 3-D fireworks show at dark. This year's event features The Drifters, best known for their "60's hits "Under the Boardwalk" and "Up on the Roof." Plus other entertainment includes Classy Chassis Car Show, Funtastic Carnival rides, raffle, games, crafts, food, and much more. At 8:30 p.m. Special Forces will parachute into Cowan Stadium to kick-off our annual Salute to the Union, Army Band Concert and a terrific 3-D fireworks show. Visitors must use exit 119, Dupont, where they will find free parking and shuttle service. Visitors should have driver's license, proof of insurance and vehicle registration available, anyone over the age of 16 years old should have photo ID. Admission is free. For more information contact, 253-967-4294.
King County: Kent - The 4th of July Splash - The Fourth of July Splash is an annual community event with lots of free activities and fun for the whole family! The Splash takes place on July 4th at scenic Lake Meridian Park, 14800 SE 272nd Street in Kent, from 12 noon until the last firework is lit. Free parking and shuttle service from three parking lots make it easy to attend!
Kirkland - Fourth of July Parade and Festivities. Visit their website for the schedule of events.
Seattle and Surrounding Areas - Kiro TV has a GREAT list of 4th of July events including some of the ones mentioned above. Head to this site for more information.
Or rather I should post this title as "John's bank account will never be the same". While I'm not a big fan of Sushi (California rolls are about all I can do) my wife Teri LOVES it, the more the better. So I'm a bit distressed that a sushi joint has opened so close to home. However, that being said we went there for dinner last night before our movie and we had a delightful time.
Where you might ask? Happy Bento is the place. It is located on the south side of the new Wal-Mart on South Hill in the Wal-Mart parking lot. Right next to the new Forza coffee joint.
When we walked in, we were greeted promptly and escorted to our table and given menus. At first I thought it was just another Teriyaki place until I opened the menu. "UH-OH" I exclaimed. "What?!" Teri asked. I said, "turn to page 3". She did and her eyes lit up "OOOOH Sushi!" at which point our waitress delivered the sushi menu. It certainly was not the most expansive sushi menu I had ever seen, but looked to be an ample selection. Again, I'm not much of a Sushi guy, but Teri seemed pleased overall with the menu.
Teri ordered the Chicken Teriyaki bento and I ordered a combination of Chicken Teriyaki and Mongolian beef. The service was very prompt and friendly. The food arrived quickly and hot. The atmosphere was nice. The restaurant was decorated in shades of orange, purple and green with traditional Japanese decor. Soft classical music was playing in the background and the overall experience was very good. Very comfortable. The food itself was tasty. Teri's bento came with 8 pieces of California roll, vegetable tempura, steamed rice, a side salad and chicken teriyaki for $10,95. My dinner included chicken teriyaki, steamed rice and Mongolian beef for $8.95. The portions were large enough that I felt very satisfied when I left, but not overly stuffed. We will definitely return! If you're looking for a Sushi fix on south hill, head on over to Happy Bento! You won't be disappointed.
Happy Bento
9909 168th St E
Puyallup, WA 98375
(253) 445-7909
I originally wrote this for the May edition of Hurlbuthomes.com news, but thought it would be valuable information to post here as well. So here you go!
As I’m sure many of you are aware, Pierce county is getting a new bridge this Summer. That’s right after much debate and controversy, the new Tacoma Narrows bridge is scheduled to open in July. Along with this new bridge comes a new set of rules for how commuters will make their daily drive across the sound. The new bridge will incorporate a toll system to pay for the nearly 1 billion (yes, that’s with a B) dollar bridge project.
The Department of Transportation has created a new program called “Good To Go” to allow drivers who frequently cross the bridge to do so more efficiently. How it works: Drivers will be required to sign up with Good To Go in order to receive a tansponder that will be placed in their vehicle. This transponder will also be attached to an account that the driver sets up with the DOT. When a driver with Good to Go transponder approaches the bridge, they will have their own separate lanes free from toll booths. As the car with the transponder attached passes under the readers, an amount is automatically deducted from the driver’s account. Its as simple as that. No stopping, no waiting, no toll booths. AND to incentivise drivers to use the new system, vehicles equipped with the transponders will pay less of a toll than their non-equipped commuter brethren.
As part of a pilot program, Real Estate agents were given an opportunity to sign up for the new Good to Go system in advance of the general public release on April 25th. I was the 15th person in the state to sign up and I can tell you from personal experience that it was a PIECE of CAKE! Simply log on to the DOT Good To Go Website (see links below) and create an account. After creating an account, you’ll need the make, model, year and license plate of each vehicle you want to be assigned to the account. The DOT will provide up to 6 transponders for free, with a nominal fee being charged for each vehicle beyond 6. I registered my car, Teri’s car, and my motorcycle.
After providing vehicle details, you’re asked to create your on-line account. You must deposit a minimum of $30.00 to establish the account. You then tell the DOT how much to debit your card after the initial $30.00 is depleted. For example, I signed up and deposited an initial $30.00 No muss, no fuss.
For my motorcycle, they provided a license plate frame that incorporates the transponder. For each of our vehicles, a small 3” X 3” (approx.) sticker was provided to place in the front window of each vehicle. It took about a week to get them, but the whole process was very easy.
Even if you don’t travel the Tacoma Narrows bridge very often, you’ll likely want to pick these up anyway. Just for that ONE day you decide to take a leisurely drive to the peninsula. You don’t want to wait at the toll booth for an hour to cross the bridge. Initial estimates have Good to Go equipped drivers paying $1.75 each way and toll lane drivers paying $3.00 each way.
If you live anywhere near south hill, and particularly if you regularly travel south of 144th and Meridian, you start to wonder what kind of people live "out there". There's not a whole lot of shopping per se and the traffic on Meridian at times is enough to drive you straight to the nut shack. Personally I live in Sunrise, the planned community east of Thun Field on South Hill. And I deal with Meridian and the lack of amenities every day of my life. Don't get me wrong, the new Applebees and Wal-Mart and that whole complex has been a nice addition. In fact my wife and I enjoyed a lovely dinner at Applebees just last night. But to do any shopping, I mean REAL shopping, you have to head north towards the South Hill mall and the wide variety of options available there.
Well it looks like South hill is finally growing up and back filling the infrastructure that we've all sorely lacked for quite a few years. This is certainly not Puyallup's fault. When I graduated High School (1988), the end of the world was at 144th. In fact, past 144th Meridian turned into a two lane highway all the way out to Graham. There was NOTHING there. In just under 20 years, 10's of thousands of people have popluated that area and I just don't think anyone really expected growth to be that rapid. Now Meridian is four lanes with a turn lane all the way past 224th in Graham!
Enter Sunrise Village. Located at about 157th and Meridian on the East side. Right now you'll see a VAST open space that is just getting the dirt work done. There is a terrific view of Mount Rainier from there as well. Just last week I saw the signs for Sunrise Village and wondered what it was going to be. Now I know. Tarragon, the company that developed Lakeland Town Center and Bonney Lake Plaza is developing 550,000 square feet of retail space.
The plan is to have two "Anchor" stores (rumors are Home Depot and Target) amongst a "lifestyle component of shop space". The artists rendering on Tarragon's site looks awesome! I certainly hope it turns out that way. We've got some time, Sunrise Village is not set to open until 2008, but this will CERTAINLY add to the appeal and the overall appreciation of property on South Hill. In looking at the site plan for the property it looks like it will bring in 2 more restaurants, the aforementioned anchors, a fitness center and quite a few retail shops.
So if you've been hesitant to move "out" to South Hill, you're not going to be so far "out" any longer!
Back in the heyday of home sales, you remember way back in 2006? Getting your home staged for sale and preparing for showings at all hours of the day was no big deal. It was a week of pain for a lot of gain. You got your home staged, you kept the dirty laundry off the floor and the dishes in the dishwasher for what, 10 days max? Then you sat back and quietly chuckled at all the offers pouring in reminding yourself what a real estate mogul you were. You hand picked the offer that suited you and you moved on.
But now, with average market times in Pierce County hovering around the 80 day mark and in some parts of the country, the SIX MONTH mark, how do you stay motivated? Well now is the time to be more dilligent than ever before. Whereas over the last few years, you could leave a couple dishes in the sink and some underwear on the floor (perish the thought!) and at least one of the dozens of buyers that came through would look past that and make an offer anyway. Not today. Today every showing is the critical showing. If you take a day off from keeping up on the household chores, THAT will be the day your perfect buyer comes through.
We all know we don't have the luxury of 24 hours notice for showings. An agent could call while you're at work and want to show the home at noon. Sitting at your desk at 10AM with a meeting at 11 is NOT the time to remember that you hadn't done last night's dishes, or picked up after the dog in the back yard.
You need to remember what your goal is. To sell your home. As agents, we'll pull out all the stops to market the home the best we know how to attract buyers. You're on the front lines however, and you need to do your part as well. So take 30 minutes before you go to bed and 15 minutes before you leave for work and walk your home and view it through the eyes of a potential buyer. Start outside and work your way in. Really be objective about what you see. Just because you're OK with something doesn't mean that someone else will be. Look for potential show stoppers and find creative ways to deal with them.
Spend some time on the weekends or after work finishing any projects you may have started, or touching up areas that have become less than perfect. Time spent now will pay off in the end with a solid offer from a solid buyer.
If you work from home, you've got to be extra dilligent. I came across this article from Web Worker Daily that provides some good tips for those of you in that unique situation.
Keep the faith and stay proactive, and when the ONE comes through, they'll know it and you will to . . . with an offer!
Many of you have heard of the "Subprime" fallout. Some of you may not understand what exactly that is, or how it affects you when you want to purchase a home. Let me give you some recent history, and follow that up with how to make sure it does not affect you.
History: I've been an agent for about four and half years now serving the Puyallup Real Estate market and beyond, covering much of Western Washington in my career. When I first got into the business we had a "Perfect Storm" in the local real estate market. You remember the movie "Perfect Storm" with George Clooney and Marky Mark Wahlberg right? They were fishermen who found themselves out on the ocean in the middle of two or three converging events that combined to make a perfect storm. One that they had no possibility of surviving. So the perfect storm in our local real estate market was the combination of historically low interest rates (Can I hear 4.5% on a 30 year fixed?!) and historically high appreciation. With the low interest rates, buyers were jumping into the market in droves. The lower interest rates meant that they could purchase more home for their money. Because so many buyers were jumping in, inventory was scarce and the laws of supply and demand kicked into high gear. Higher demand combined with Lower supply drove prices up at a record pace. Enter the lenders. The lenders seeing an opportunity to make a tremendous amount of money loosened their underwriting requirements to allow even MORE people to obtain loans. Whereas in the past, a borrower might have had to have a 620 credit score to qualify for a particular loan product, the underwriters lowered that requirement to a 540. This brought even MORE buyers into the mix. The lenders then began getting creative. If some buyers were good, then a LOT of buyers would be great. So in addition to loosening underwriting requirements, they started to introduce creative loan programs. Like interest only, option ARMs and other products that let EVEN MORE people buy.
Fast forward a couple years. Now a lot of the people that had gotten interest only loans, option ARMs, etc. got a big shock in the mail one day when their mortgage company informed them that next month their mortgage payment would be $500/month higher. Had their loan officer or Real Estate agent taken the time to explain the loan they were getting, they would have been prepared. OR in a lot of cases, the loans WERE explained to them, but they got used to the lower payments and any additional discretionary income was used to purchase cars, boats, or whatever. So when it was time to refinance, sell, or suck up the higher payments, they weren't ready. So three months later, they end up in foreclosure. OR if they did want to refinance, interest rates had now risen to a point where even their new payment was too high.
And now, with so many loans ending up in foreclosure, a lot of the subprime lenders are folding and no longer offering their products. The ones that have survived have tightened their underwriting requirements so that fewer people now qualify for a subprime loan. Overall, the shift in the market is good for the economy. There was no way we could sustain record high appreciation and record low interest rates. Now we find ourselves in what's becoming a more normal, stable, sustainable real estate market.
So now that you want to buy a home, how does this all affect you? First off, it means you've got to be more aware of your individual situation. If you don't know what your credit looks like, you'll need to figure it out BEFORE you pick up one of those shiny real estate magazines. A good place to start is my first podcast "Preparing Your Credit To Purchase a Home". You want to get ahold of your credit report before you meet with a lender so you know some of the things they'll be questioning you about. If there are any inaccuracies on that report, you'll want to at least begin the process of clearing it up prior to meeting with your lender. Your real estate agent is a great source of information (and I happen to know a good one if you're looking) and can help you decipher your credit report to pick out the highlights. At this stage of the game, you should plan on having a credit score of at least 620 to qualify for 100% financing. We may see that creep up to 640 or even 680 as we go deeper into this market. Start living like you'd live if you had a home. If you're paying $900/month for rent now, but would be willing to spend $1,400 on a mortgage payment, start putting the $500/month into a savings account now. You'll get used to your payments AND you'll build up a tidy little sum to put down on your new home when you're ready.
So I guess the moral of the story today is do your research and you'll be fine. Real Estate is still a tremendous investment. Once we get through the current inventory and get back to a more normal inventory level, appreciation will kick back in at a normal 5 - 7% and no matter what, you have the tax savings when you own Real Estate. We're just going from subprime to sublime. No worries!
First let me begin by defining what a "Piggyback" loan is. Traditionally to purchase a home, you would have to come up with a 20% downpayment to qualify for a 30 year fixed loan OR be required to pay PMI (Private Mortgage Insurance). PMI was an additional premium that you paid to a mortgage insurer that would cover the LENDER should you default on the mortgage. Yes, PMI does NOT protect you, it protects the LENDER and YOU pay the premiums. Sounds like a great deal right? I mean you want to pay your neighbor's car insurance premiums don't you? So the piggyback loan was created to help borrowers avoid PMI. The piggyback loan works like this: You generally take out a first mortgage for 80% of the value of a home and a second (piggyback) mortgage for the remaining 20%. The interest rate charged on the second mortgage is slightly higher than what you'd pay on the first mortgage, BUT the difference in payment would be LESS than what you would pay in PMI.
For the past few years, the piggyback loan has been the loan of choice for many home buyers. They were able to purchase a home with little or no money out of pocket AND keep their payments reasonable. It was a win/win situation. The thinking was that within a couple months the home would appreciate enough in value that should the borrower default, or no longer be able to maintain the home, the home could be sold quickly and most times at a profit above and beyond the repayment of both mortgages and selling costs.
However, with home prices flattening out, or even declining in some parts of the nation, lenders are starting to reduce their offerings of such products because there simply is no guarantee that home prices will appreciate enough quickly to recoup costs should a home have to be re-sold in a short amout of time. And it looks like the FHA (Fair Housing Administration) is finally catching up with the times too. Right now there is a bill before congress that would eliminate the 3% downpayment requirement for FHA insured loans, raise the loan limits in most cases, and reduce the mortgage insurance premiums on the loans.
When I purchased my first home for $90,000 in March of 1996, I used an FHA loan to do it. I had to come up with the 3% down, which at 25 coming up with $2,700 required a trip to the bank of Mom & Dad. But it got me into the home ownership dream and I never looked back. Now that the median price of a home in Pierce county has risen above $280,000 coming up with 3% would certainly be a burden to most first time home buyers. So the elimination of the 3% requirement will make this a much more popular loan option. And with median home prices rising, FHA's determination to raise loan limits again makes this a more attractive option to buyers.
Can a piggyback mortgage still make sense? In some cases, sure it can. If you have 10% to put down on a home and the home you're buying is above the FHA loan limit, doing an 80/10/10 piggyback loan makes perfect sense. You still avoide PMI, you've got equity built into the home purchase should unforseen circumstances arise that force you to sell the home quickly, and you get to keep your payments reasonable. That's just one example of when a piggyback might make sense. But soon, in most instances, if FHA has their way with congress, you may want to reconsider.
For those of you that are not Pierce County residents, this post may not make much sense. However those of you that are and particularly those of you living in South Pierce County (Spanaway, South Hill Puyallup, Graham, Eatonville, etc.) this will be of particular interest to you.
Background: The cross-base highway (SR-704) is a project that has died many deaths over the years, but now it finally seems to have some legs and we may (powers that be willing) actually see it in our life times. The issue is that Pacific avenue (Highway 7) and Meridian (SR-161) are beyond capacity and have been for years. Driving from Highway 512 on the north to 176th on the South can at times take 45 - 60 minutes. To go just over 5 miles. The number of homes built in south Pierce county in recent years has been staggering. Even with the improvements to Pacific avenue, Canyon Road and Meridian, traffic is still horrible and I often find myself looking for an alternate route home if I've got to travel any of those roads between say Noon and 7PM. Yep, it's that bad.
So SR-704 would begin it's journey on I-5 at the Thorn Lane exit (Exit 123) across Fort Lewis Army Base and McChord Air Force Base to connect with 176th Street at Pacific Avenue (Highway 7). 176th between Pacific and Meridian (SR-161) would be improved to be four lanes with a turn lane the whole way. Between Pacific avenue and I-5, there would be minimal stops. The idea is to take a lot of the traffic off Highway 512 and divert it further south on I-5 to SR-704 allowing the residents of Spanway, Graham, Roy, Eatonville, South Hill direct access without having to sit in traffic on either 161 or 7.
Having lived in Spanaway for 10+ years and now a resident of South Hill, I say sooner the better! There is even a campaign out there who's motto is "704 - Build it - They're here!" (First one to provide me with a link to their website, free Starbucks card!)
I just ran across an article by Jim Gallagher of the Tacoma News Tribune "I burst into song at mere mention of 704" I can't exactly tell if he's for 704 (I think he is) or against it. But the two songs he wrote for it are pretty funny. Have a look at the article. 704 is even so popular it garnered it's own Wikipedia entry. The Cross Base coalition also has some great information for you, although they are vehemently opposed to the whole idea.
Now don't hold your breath, construction is set to begin next year with improvements to the East end of the road and isn't expected to be complete until . . . 2017 . . . so we've got some time. I've already noticed that new housing projects along 176th are requiring the devlopers to widen the road, my guess is this is in preparation for this eventuality.
As I deal with a lot of buyers and sellers who are currently serving or who have served our country, this is certainly welcome news. This post comes from Realtor Magazine Online:
WASHINGTON — New legislation introduced in Congress Wednesday would expand opportunities for U.S. veterans to purchase, build, repair, or improve a home by increasing their access to low-interest loans through the VA Home Loan Guaranty program.
The NATIONAL ASSOCIATION OF REALTORS® is endorsing the legislation, named the 21st Century G.I. Bill of Rights Act, which was brought forth by Sen. Hillary Rodham Clinton (D-N.Y.) and Rep. Patrick Murphy (D-Pa.).
“As the leading advocates for homeownership and affordable housing, REALTORS® have long supported policies that make housing more accessible and affordable for America’s veterans,” said NAR President Pat V. Combs, who joined Clinton and others at Wednesday’s announcement. “We strongly support efforts to improve housing benefits for all veterans, no matter where they live.”
Under the 21st Century G.I. Bill of Rights Act, veterans will be exempt from paying loan fees and will be able to access to low-interest VA loans for homes valued up to $625,000. The current program caps loans at $417,000.
The bill will guarantee eligibility to all service members — Active Duty, National Guard and Reserves — who have served since September 11, 2001.
“The G.I. Bill has helped millions of soldiers transition successfully to civilian life,” Sen. Clinton said. “Now it is time to update and modernize the G.I. Bill for the 21st century to meet the needs of today’s soldiers, veterans, and their families — from education to housing and microloans to start small businesses.”
She said this legislation is the “right way to invest in the future of our service members and reward the service they have given to our country.”
In this premiere episode of the Northwest Real Estate Update Podcast, we'll explore your credit report and credit score and show you how this affects the type of loan you get, the interest rate you get and ultimately the type of home you purchase. Topics covered include: What is a credit score? Where can I get MY credit score? Where can I get my credit report? How do I clean up inaccuracies in my credit report? What affects my credit score? How does my credit score affect my loan and how does that loan determine the type of home I buy.
One of the things you're always told by your real estate agent when selling your house is to make sure it has "curb appeal". What does that mean really? In it's simplest form, It means that the outside of the home should entice the buyer into wanting to see the inside of the home. The grass should be neatly mowed, weed free and edged. The flower beds should have some flowers in bloom, fresh bark or mulch and be weed free. The exterior of the home should be neatly kept, freshly painted if possible and the door should be neat and tidy. The windows should be clean, gutters clean, roof free of moss, driveway free of oil stains, etc. etc. Basic things to enhance the outward appearance of the home. You want to lead the buyer to believe that if there is nothing wrong outside, you must keep your home in tip top shape on the inside too. They'll be encouraged to set an appointment and take a more in depth look at your home.
The following picture is NOT an example of enhancing curb appeal:
Thanks to Beulah Fitzer for sending this along, it gave me a chuckle. Note to potential clients . . . I have my own yard signs. Krylon is not part of my marketing package.
As more and more homes are on the market today, I find it odd to see prices increasing. But whenever I go on a listing appointment, I'm faced with a seller that still believes that just because their neighbor's home sold for X last year, they should get X+Y for their home and often times Y is far more than it should be.
The latest statistics from the Northwest Multiple Listing Service show average home prices for the tri-county area (King, Pierce and Thurston) are up over last year, but so is inventory. (If you get my monthly newsletter, you already knew that!) The statistics also show that homes that DO sell are selling within 5% of list price. What those statistics don't show is that often times the homes had been on the market for months (Average market time in Pierce County is around 86 days now) and had multiple price drops to finally sell. And yes, they finally sold within 5% of their list price. But not within 5% of their original list price.
So if you are considering listing your home and interviewing agents and those agents tell you that "All of my homes sell within 5% of list price" they aren't lying. However, ask them if it's within 5% of the home's initial price point.
I've been extolling this for as long as I can remember. But keep in mind that you've got to be disciplined with your money to start with. Normally when someone asks me (or tells me) they're wanting to pay off their mortgage sooner, I ask why? After getting beyond the stunned look on their face, I continue:
There is no vehicle like a mortgage that you can use to leverage someone else's money at a much lower interest rate than you would pay on say a line of credit, or a credit card. So why not use that to your advantage? If you're mortgage is at 6.5% and you wanted to put an extra $200.00 per month to pay down the principal, my question would be; "Is there somewhere else you can earn more than 6.5% on your money?" (With tax benefits added into the mortgage, the real interest rate you're paying on your mortgage is less than 6.5%, but for the sake of keeping this an easy argument, we'll leave it at that) Even a somewhat decent financial advisor can earn you much more than 6.5% on your money (Enough even to more than make up for his or her fees). So if you've got the discipline to put that money into something else that can earn for you, paying down your mortgage may not always be in your best interest.
Here's an article from the Seattle Times that supports this theory (and goes into much more depth): Link to Seattle Times
Yes folks, the real estate market of today is not the real estate market of last year. It's a good thing though! There was no way we could withstand the double digit appreciation we were seeing here in the northwest and other parts of the country. The ride had to end sometime. While there are a few more homes on the market this year than there have been in the past, we're still in a VERY good real estate market. This will likely be the 3rd or 4th best real estate year in history, so that's not too shabby. Home sellers are having to be more realistic about their prices. Just because their neighbor's home sold for $350,000 last year does not mean they will get $385,000 this year. They may still get $360,000 which is still a pretty dang good return on investment!
Here's a news story from RIS media that shows some of the instability felt earlier in the year, may be ending.
I know I've been talking about doing this for a long time now, but it's finally here! A blog on my real estate site. My intent here is to give you the latest and greatest information affecting you, the real estate consumer. Look here for Real Estate news affecting Pierce, King and Thurston counties, the Puget Sound, Washington and the rest of the nation. Also, as I produce video tours for my listings, I'll embed them here in my blog. AND, I've just received my microphone and software to begin producing my own podcasts! So you'll be able to find those embedded here as well.
The blog will contain quick little blurbs on the state of Real Estate locally and across the nation, while my Podcasts will be intended to be 5 - 30 minutes in length going deeper into subjects. Some topics I have in mind for my Podcasts will be:
Buyer Series - Subjects related to buyers such as how to prepare your credit when purchasing a home, how to interview your buyer's agent to make sure they're working for you, what happens during the home buying process, what is closing, I've got the home, now what? and lots more.
Seller Series - Subjects related to sellers such as; How to stage your home, What will an inspector look at?, How do I make sure I get top dollar for my home in the least amount of time?, etc.
Investor Series - Subjects related to real estate investors such as: What is a 1031 exchange and why do I need one?, How can I increase rents without making my tenants mad?, How do I find a good property manager?, etc.
So look for those in the coming weeks. I've got to get used to speaking into the microphone, but rest assured, when I get going, you won't be able to shut me up! I've got an opinion and I'm not afraid to show it!
Anyway, thanks for visiting my blog! Drop me a line anytime at: blog@hurlbuthomes.com and let me know what you think!
Welcome to the Hurlbuthomes.com blog! Here you'll find information that's relevant to you, the Real Estate consumer. Information on Pierce, King and Thurston county real estate as well as national real estate news.
