May. 27, 2008 - Who do you make your Earnest Money Check Payable to?
Someone asked this question today, so I thought maybe everyone would like to know that answer.
"Who do you make the Earnest Money Check Payable TO?
The Earnest Money check is made payable to "the escrow holder". Here in the Seattle Area that is usually either the Escrow Company OR the Brokerage of the Agent for the Buyer. Rarely is it ever the listing brokerage.
The check is most often made out to the escrow chosen in the contract on the day that you make an offer and sign the contract/offer. "Closing Agent" or "Selling Broker" are the two options on line 7 of the standard contract. "Selling Broker" is the opposite of "Listing Broker".
More and more, real estate companies are closing out their "Trust Accounts" and using the "Closing Agent" as the place where your Earnest Money is held.
You, the buyer, fill out the contract first as "the offer", so you, the buyer, designate on line 11 your choice of Closing Agent, and write out the check payable to that Company.
That check is then held by your agent until there is a final agreement and contract, and escrow is opened. If the seller changes the Closing Agent, and you agree to that change, the original check is voided and a new check needs to be written to the Closing Agent as agreed to in the contract.
Volume down 30% (Much better than Bellevue or Kirkland or the County as a whole)
Currently in escrow awaitng close 48
Currently for sale 156. By 2007 standards that would have been just over 4 months of inventory.
By 2008 standards that is over 6.6 months of inventory.
Median days on market has increased from 19 days to 56 days.
Prices are down by 3.5% from $307 per square foot to $296 per squre foot (median)
I expect to see median days on market getting better. The median price per square foot of properties for sale is more in line with what they are actually selling for than in Bellevue or Kirkland.
Currently for sale 389. By 2007 standards that would have been just over 4.5 months of inventory.
By 2008 standards that is 11.8 months of inventory.
Median days on market has increased from 27 days to 45 days.
Prices are down by 6% from $334 per square foot to $314 per squre foot (median)
Of note, properties in escrow and those on market have asking prices that are WAY up to $400+ per square foot. Must be weighted more heavily to new construction.
Back in 2005, my partner Kim Harris and I represented the sellers of these two homes on 29th Avenue South. They were next door to one another. Speaking from memory, Kim had sold "the property on the right" to the people who bought it as a flip project for $125,000. The same people approached the owner of "the property on the left" and purchased it "off market" for $120,000. The owners then remodeled both homes, and Kim and I represented the owners in the subsequent sale of both.
This is the house on the left. It was sold on February 26, 2005 for $299,999. Today on Zillow it is shown with a Zestimate of $415,500.
You can see from the Zillow chart above, that the home was purchased at a below market price in 2004, remodeled and sold in 2005 and continued to improve in value to this date.
The "house on the right" shown below, was sold a little later on June 7, 2005 for $309,000. Both were put on the market around the same time, though the home below was completed first, it sold second.
The person who did the work on these home felt that this house, which I called "the house on the right" was worth more, as he spent more on it. On a net basis I believe they sold at the same price, though the gross price of this home appears to be $10,000 more.
According to Zillow, this home is in fact worth A LOT more today at $500,500.
Interesting, since these homes are next door to one another, that Zillow places this one as having sold at less than market value in 2005, and the home above as having sold for at market value.
The homes were remodeled without "high end" finishes like granite counters. Simple improvements included new kitchens with IKEA type cabinetry and formica countertops. Remodeled baths. New carpet. The significant expenses were on the basement levels and on the new roofs and on the other exterior improvements on exterior of the second house.
So on a combined basis, the owners paid $245,000 for these two homes, sold them at $608,996 and today Zillow shows them as $916,000 on a combined basis 3 years later.
Is "the home on the right" really worth almost $100,000 more than the one on the left, as Zillow Zestimates? Possible, if the new owners made addtional added improvements. But given the difference in those charts above, I doubt it. Some day when they both sell again, we'll be able to tell for sure. Until then...it's a nice story of how our clients were successful with their "Flip Projects" and how the people who purchased them have also done well in their purchase of these two homes.
208 homes for sale with a median asking price of $650,000 at $248 MPPSF
127 sold YTD with a median price of $640,000 and $233 MPPSF (median asking price of the homes that sold was $659,000.
55 in Escrow with median asking price of $649,950 and MPPSF of $237.
MPPSF is down from $251 to $237 vs. this same time last year, but DOM increased from 22 days to 63 days, so like other areas and what I'm seeing, most of the price issues are created by stale inventory pricing to sell before new inventory comes in market.
Not bad. Better than King County as a whole as to volume. Down 22% vs. King County being down 32% as to volume. Prices are a bit off on a price per square foot basis, but median prices are up at $630,000 vs. $624,000 last April. You get more square footage for that more money, so MPPSF is down. but compared to Woodinville, Sammamish is doing great...and almost as good as Redmond.
May. 12, 2008 - Woodinville 98072 - Home Sale Stats
I'm glad someone requested Woodinville, as I've been curious about what's been happening there. Seems to me sales were very sluggish and it's been a very long hard winter. We'll see if my perception was correct.
Currently for sale 164 houses with a median asking price of $622,000 of $246 per square foot.
Only 12 closed in April at a MPPSF of $198
61 closed year to date vs. 91 closed during the same time in 2007.
29 sold in April 2007 MPPSF $227. April 2008 12 sold MPPSF $198
The median asking price of the 61 that sold this year was $569,950.
The median SOLD price of the 61 that sold this year was $538,850.
61 divided by 4 months averages 15.25 houses a month with only 12 closed in April. With 164 on market, that's over 10 months of inventory.
These stats not compiled or published by NWMLS, all hand calculated by ARDELL
Not worth mentioning the condos. Only 8 closed in 2008 in the first 4 months with 29 for sale.
May. 11, 2008 - Redmond Washington Sales Stats 98052
Redmond Washington 98052 faring better than King County as a whole.
Residential Volume in King County is down 32% YTD in 2008 vs. 2007. Redmond 98052 is down 20%
Median Sale price in April of 2008 was $605,000 vs. $642,550 in April of 2007
MPPSF April 2008 $246 vs. $256 in 2008. YTD MPPSF only $263 in 08 vs. $264 in 07.
I did see some significant price drops on Fall inventory that was still hanging around. Likely in an effort to get sold before new 2008 inventory started flooding the market. This could account for the drop in prices in April. Let's see if it swings back or if sellers use the recent reduced prices as comps at time of setting their list prices. Or if buyers hold out for the comp prices.
Median prices in March were the same in 07 vs. 08 at $575,000. So prices just didn't jump up as high March to April in 2008 vs. 2007. Again, I think this is somewhat due to stale inventory making a huge effort to get sold before new inventory takes over the market and they get left behind.
256 homes for sale, 81 in escrow and 140 sold YTD and 43 sold in April (vs. 48 sold in April 07) Pretty strong numbers in April vs. the County as a whole.
Condos: 122 for sale asking $315 per square foot (median price per square foot)
40 in escrow - $292 MPPSF based on asking price
98 sold YTD $295 MPPSF
32 of those closed in April at a median price of $344,950 MPPSF of $320
39 sold last April at a median price of $326,000 MPPSF of $307.
So prices up, volume down though the properties in escrow are likely to show a decline once closed, given the asking is $292 per square foot...unless they all sold over asking price, which I seriously doubt.
Redmond 98053 is not considered in the above stats.
Required Disclaimer: These stats NOT Compiled or Published by NWMLS and are hand calculated by ARDELL
ARDELL
DellaLoggia
On Seattle Real Estate including Kirkland, Bellevue, Redmond, Green Lake and most areas around Lake Washington North of Downtown Seattle.
Phone: 206-910-1000 - Mailto:Ardell@RainCityGuide.com
Stats "As always, thanks for the detailed analysis.
Aloh..."
You can find many great Seattle real estate agents and loan officers on ActiveRain.com ARDELL DellaLoggia is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
RSS Blog Feed
