by The KCM Crew on March 18, 2014 in For Sellers

Many sellers are still hesitant about putting their house up for sale. Where are prices headed? Where are interest rates headed? Can buyers qualify for a mortgage?  These are all valid questions. However, there are several reasons to sell your home sooner rather than later. Here are five of those reasons.

1. The Most Serious Buyers Are Out Now

Most people realize that the housing market is hottest from April through June. The most serious buyers are well aware of this and, for that reason, come out in early spring in order to beat the heavy competition. These buyers are ready, willing and able to buy…and are in the market right now!

2. There Is Less Competition Now

Housing supply always grows from the spring through the early summer. The choices buyers have will continue to increase over the next few months. Don’t wait until all the other potential sellers in your market put their homes up for sale.

3. The Process Will Be Quicker

One of the biggest challenges of the 2014 housing market has been the length of time it takes from contract to closing. Banks are requiring more and more paperwork before approving a mortgage. As the market heats up, banks will be inundated with loan inquiries causing closing timelines to lengthen.  Selling now will make the process quicker and simpler.

4. There Will Never Be a Better Time to Move-Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by over 19% from now to 2018. If you are moving to a higher priced home, it will wind-up costing you more in raw dollars (both in down payment and mortgage payment) if you wait. You can also lock-in your 30 year housing expense with an interest rate at about 4.5% right now. Rates are projected to be well over 5% by this time next year.

5. It’s Time to Move On with Your Life

Look at the reason you decided to sell in the first place and decide whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

You already know the answers to the questions we just asked. You have the power to take back control of the situation by pricing your home to guarantee it sells. The time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

by The KCM Crew on March 17, 2014 in For Buyers

Based on prices, mortgage rates and soaring rents, there may have never been a better time in real estate history to purchase a home than right now. Here are five major reasons purchasers should consider buying.

1. Competition is about to Increase

Every spring a surge of prospective purchasers enter the housing market. Like you, they will want the best homeavailable in the best location at the best price. They will be competing with you for the ‘steals’ in the market. Don’t miss the opportunity to get that ‘once-in-a-lifetime’ buy available today that no longer be available as the market heats up..

2. Price Increases Are on the Horizon

Nationally, home prices are projected to appreciate by 4.5% in 2014 and by over 19% from now until 2018. First home buyers will probably pay more both in price and interest rate if they wait until the spring. Even if you are a move-up buyer, it will wind-up costing you more in net dollars as the home you will buy will appreciate at approximately the same rate as the house you are in now.

3. Owning a Home Helps Create Family Wealth

Whether you rent or you own the home you are living in, you are paying a mortgage. Either you are paying your mortgage or your landlord’s. The Federal Reserve, in a recent study, revealed that the net worth of the average homeowner is 30 times greater than that of a renter.

4. Interest Rates Are Projected to Rise

The Mortgage Bankers Association, the National Association of Realtors, Freddie Mac and Fannie Mae have all projected that the 30-year mortgage interest rate will be over 5% by the spring of 2015. That is an increase of almost 3/4 of a point over current rates.

5. Buy Low, Sell High

Most would all agree that, when investing, we want to buy at the lowest price possible and hope to sell at the highest price. Housing can create family wealth as long as we follow this simple principle. Today, real estate is selling ‘low’ compared to where it will be next year. It’s time to buy.

A recent study revealed that the number of existing home ownersplanning to buy a home this year is about to increase dramatically. Some are moving up, some are downsizing and others are making a lateral move. Another study shows that over 75% of these buyers will, in fact, be in that first category: a move-up buyer. We want to address this group of buyers in today’s blog post.

There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.

Assume they had a home worth $300,000 and were looking at a home for $400,000 (putting 10% down they would get a mortgage of $360,000). By waiting, their house appreciated by 13.8% over the last year (national average based on the Case Shiller Pricing Index). Their home would now be worth $341,400. But, the $400,000 home would now be worth $455,200 (requiring a mortgage of $409,680).

Here is a table showing what additional monthly cost would be incurred by waiting:

Prices are projected to appreciate by over 4% and interest rates are also expected to rise by as much as another full percentage point. If your family plans to move-up to a nicer or bigger home this year, it may make sense to move now rather than later.

by The KCM Crew on February 25, 2014 in For Buyers, Interest Rates

Originally published January 29, 2014 at 11:25 PM | Page modified January 29, 2014 at 11:55

Many are turning back the clock when it comes to cleaning and rediscovering old-time cleaning recipes — many of them used before the advent of the synthetic formulas widely available after World War II.

Q: What home-cleaning products are safe for the environment?

A: There is a greater awareness among homeowners that chemicals in commercial home-cleaning products can have negative effects on personal health — not to mention the environment.

Many are turning back the clock when it comes to cleaning and rediscovering old-time cleaning recipes — many of them used before the advent of the synthetic formulas widely available after World War II.

Believe it or not, you can handle nearly all of your day-to-day cleaning with just seven easily available, inexpensive, environmentally benign ingredients: baking soda, washing soda, soap flakes, oil soap, vinegar, borax and ammonia. And of those, only ammonia is potentially hazardous in its concentrated form. Just use it carefully, and store it out of the reach of children and pets.

Kitchens and baths

Instead of using commercial products to clear your kitchen sinks, faucets and drains, give baking soda a try. Just dampen with water and apply it the same way you would with scouring products. Unlike bleach and phosphates, which are common ingredients in commercial cleaning products, baking soda isn’t toxic to the environment and won’t kill the bacteria that sewage and septic systems need to work properly.

When baking soda is combined with vinegar, it produces an impressive foaming reaction. Pour a cup or more of vinegar into the toilet bowl, and then toss in a handful of baking soda. The combination will strip off hard-water lime deposits if you leave it for a while.

Vinegar and baking soda are also effective for cleaning drains. Dump a handful of baking soda into the drain, then pour in a big shot of vinegar and put the plug in to drive the carbon dioxide down the pipe. Keep the plug in until the fizzing stops, and then run hot water down the drain. Not only does it clean and clear pipes, it also eliminates the need for corrosive cleaners.

Vinegar by itself is terrific for cleaning faucets. And mixed with warm water, it’s your secret weapon if you have to deal with the occasional pet stain on carpeting. Combine equal parts vinegar and water and wipe pet stains away. It also works on linoleum that isn’t heavily soiled.

Laundry rooms

A mixture of one part borax, one part washing soda and one part soap flakes (about three-fourths of a cup of the mix per normal load) will work as well as any detergent. It is especially effective and kind to natural fabrics. Be sure to start by running all of your clothes through a cycle with washing soda only, which removes detergent residue. Otherwise, your whites could look yellowed.

White clothes that contain synthetic materials can yellow slightly over time with this formula, but you can counteract that by line-drying your whites in the sun now and then. Sunshine is the oldest and best bleach and disinfectant of them all.

Mother, grandmother and great-granny really did know best.

HomeWork is the weekly column by the Master Builders Association of King and Snohomish Counties’ Remodelers Council about home care, repair and improvements. If you have questions about home improvement, send them to homework@mbaks.com.

http://www.foxbusiness.com/personal-finance/2014/01/31/5-things-to-ask-your-real-estate-agent/

Selling a home can be difficult — you probably want to sell in a certain time frame and for the maximum price. For most of us, it represents one of the biggest financial transactions of our lifetimes, and it can help to have expert guide us through the process. A knowledgeable and trustworthy real estate agent can be a huge asset — and you want to do a thorough screening to get the best match for you.

You’ll want to ask about commission, of course, but it doesn’t stop there. Here are five questions that you should ask your potential real estate agent.

1. What’s Your Experience Like?

This is an important question because it will tell you how long the agent has been selling homes and what kinds of of properties they usually deal with (condos or single-family homes, or in-town or suburban). It’s important to find someone who not only has years of experience, but someone who is familiar with the neighborhoods you’re interested in and often sells homes in your price range.

2. May I See Your References?

Just as when you’re hiring a new employee, it’s important to check up on your real estate agent’s references. You should call every one of them. Ask what it was like to work with this person on a day-to-day basis. Was the agent easy to reach? Would you hire him again? Did she follow up with you regularly? Most real estate agents will give out their best references so don’t be afraid to ask the tough questions in order to get the most honest responses.

3. How Many Clients Do You Have?

Asking this question should give you a good idea of how much time your agent will have for you. You don’t want a real estate agent with too many clients nor do you want one with too few. The latter could be a bad sign since no one else seems willing to hire her. (On the other hand, seasonal fluctuations are normal.)

If you’re worried that your real estate agent might have too many clients or not enough time for you, ask if he works independently or with a team. A good agent will generally have a solid support staff to handle the routine tasks.

4. What Can You Tell Me About Growth Trends?

One of the biggest strengths real estate agents can bring to the table is their ability to analyze trends in the housing market. Anyone can go on Redfin or Zillow and look up homes for sale, but how do you know what is or isn’t a competitive price? Some ZIP codes might turn from a bustling metropolis to a forgotten foreclosure town in just a few years so it’s important to hire an agent who pays close attention to growth and price trends and can help you set an appropriate asking price.
5. What’s Your Success Rate?

The Internet has made it easy to look up your real estate agent’s sales records but don’t be afraid to ask. One thing you could ask for is the agent’s list-to-selling-price ratio. This ratio is found by comparing the list price to the selling price. But don’t get too caught up in this number, make sure to vet his or her other success metrics too.

by Phil Georgiades on February 6, 2014 in For Agents, For Buyers

We are pleased to welcome Phil Georgiades as our guest blogger today.  Phil is the Chief Loan Steward for VA Home Loan Centers, a veteran and active duty military services organization. – The KCM Crew

VA loans are the most misunderstood mortgage program in America. Industry professionals and consumers often receive incorrect data when they inquire about them. In fact, misconceptions about the government guaranteed home loan program are so prevalent that a recent VA survey found that approximately half of all military veterans do not understand it.

With this in mind, we would like to debunk the most common myths about VA Loans.

Myth 1: The VA loan benefit has a “one time” use.

Fact: Veterans and active duty military can use the VA loan many times. There is a limit to the borrower’s entitlement. The entitlement is the amount of loan the VA will guarantee. If the borrower exceeds their entitlement, they may have to make a down payment. Never the less, there are no limitations on how many times a Veteran or Active Duty Service Member can get a VA loan.

Myth 2: VA home loan benefits expire if they are not used.

Fact: For eligible participants, VA mortgage benefits never expire. This myth stems from confusion over the veteran benefit for education. Typically, the Montgomery GI Bill benefits expire 10 years after discharge.

Myth 3: A borrower can only have one VA loan at a time.

Fact: You can have two (or more) VA loans out at the same time as long as you have not exceeded your maximum entitlement and eligibility. In order to have more than one VA loan, the borrower must be able to afford both payments and sufficient entitlement is required. If the borrower exceeds their entitlement, they may be required to make a down payment.

Myth 4: If you have a VA loan, you cannot lease the home.

Fact: By law, homeowners with VA loans may rent out their home. If the home is located in a non-rental subdivision, the VA will not guarantee the loan. If the home is located in a subdivision (such as a co-op) where the other owners can deny or approve a tenant, the VA will not approve the financing. When an individual applies for a VA loan, they certify that they intend on making the home their primary residence. Borrowers cannot use their VA benefits to buy property for rental purposes except if they are using their benefits to buy a duplex, triplex or fourplex. Under these circumstances, the borrower must certify that they will occupy one of the units.

Myth 5: If a borrower has a short sale or foreclosure on a VA loan, they cannot have another VA loan.

Fact: If a borrower has a claim on their entitlement, they will still be able to get another VA loan, but the maximum amount they would otherwise qualify for may be less. For example, Mr. Smith had a home with a $100,000 VA loan that foreclosed in 2012. If Mr. Smith buys a home in a low cost area, he will have enough remaining eligibility for a $317,000 purchase with $0 money down.  If he did not have the foreclosure, he would have been able to obtain another VA loan up to $417,000 with no money down payment.

Veterans and Active duty military deserve affordable home ownership. In recent years, the VA loan made up roughly 13% of all home purchase financing. This program remains underused largely because of misinformation. By separating facts from myth, more of America’s military would be able to realize their own American Dream.

Please join me if you can, this promises to be a very interesting evening with the Mayor of Everett, Ray Stephanson and Matthew Gardner, a well-known local economic analyst specializing if Real Estate. It's at the Everett Golf and Country Club, light dessert will be offered.  If you plan on attending please RSVP to me as soon as you can at Shelia@Windermere.com . 

by The KCM Crew on January 28, 2014 in For Sellers

Now that the housing market has stabilized, more and more homeowners are considering moving up to the home they have always dreamed of. Prices are still below those of a few years ago and interest rates are still below 5%.

However, sellers should realize that waiting to make the move while mortgage rates are increasing probably doesn’t make sense. As rates increase, the price of the house you can buy will decrease. Here is a chart detailing this point: