This article that I found on Flickr is an excellent read, though it does remind me of many I read when the world was credit heavy in the past. People spending more than saving is a result of low intererest rates and continuing inflation. People decide to spend when they believe the item they are buying will cost more in the future, and the return on saving the money instead of spending it, is low.
Everyplace I turn, someone is asking "Should I buy a house now or wait?" If you are asking the question, the likely answer is you should wait. It's like asking if you should get married or if you should have a baby. All of these things are important enough to only do when you feel compelled to do so. If there is a hint of doubt, then no...don't do it. Don't even let someone else convince you, and don't make someone else responsible for your decision in any way, shape or form.
List your pros and cons and convince yourself. On the cons, be sure to include that the value is more likely to go down than up in the next 3-5 years.
If the house you are in is dramatically curtailing your quality of life or that of your family, the answer might be yes IF you can well afford to improve your situation.
If you think you might be relocating to a new job in another area in the next 3 years, the answer might be no...stick it out where you are.
If you're not all that happy with your spouse and think to yourself "if this new house doesn't make us happy, I may just call it quits!" Then NO! Do not expect a house to resolve relationship issues. Needing to sell because of a divorce could make a messy divorce even worse.
If the purchase of a house will stretch you to the limit financially and create other problems outside of the home, then no, don't buy a house.
The key is to expect prices to be down a year from now and then ask yourself "Why NOT wait until next year?" If you have a compelling reason why not to wait until next year, then do it knowing that you are doing it for reasons that are not financially based.
If you keep asking "Should I buy a house?" in the hope of someone talking you into it, then you are"
1) Begging to be lied to
2) Trying to shift responsibility for a bad decision on someone else
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.
1) Determine your price range - 3 to 4 times your annual income plus your downpayment, is a good guideline if you don't want to talk with a lender yet. Stick closer to 3 times.
2) Go to my site or any Broker's Website with a property search function
3) Put in all of the cities you might like to live in
4) Put in your price range
5) If you are using my site, you will see two types of property. Active and Offer STI. The Offer STI properties are "SOLD Subject to Inspection", but will most often better represent what your dollars will buy in a given area.
6) Narrow down the places where you would like to live and can afford, using this method
I don't often show property down in Maple Valley, but it is hard to find a more idyllic setting at such a reasonable purchase price.
When the owner told us about the coyotes that you can hear at night, I thought that would be alarming to the couple with two small children. But no. Apparently people who like to live out in a country setting, are well prepared for a coyote to stop by and visit.
The couple wasn't in hearing distance when the owner was talking about the coyotes, so I said, "You may need a dog", to which the couple responded instantly, "Oh, you mean the coyotes."
One of the reasons I look at the statistical data regarding housing sales, is to determine the odds of finding a property that matches my client's needs.
When determining a reasonable real estate commission, I need to know the odds. When we find a house and make an offer, we need to know the liklihood of the seller being able to get a higher price than the one we are offering.
I posted many pie charts in different price ranges. If I have a client looking for a property for $300,000 in an area where housing in that price range is scarce, It could take many months to find the right property. If I have a client looking for a house for $1.3 million, where only 1 out of 9 sell quickly, then the search will take a completely different working set than for the first client.
It also helps when determining whether or not to accept a client at all. If someone wants to buy a house for $450,000 with a view, some agents will take the client and wait until that client realizes that their housing criteria needs to change. Others will show them that no house has sold in the area the want to live, with a view, at $450,000 in the last three years.
Every person is different. Some people like knowing up front what the odds are of their finding a property that meets their needs. Others want to look for that needle in a haystack for as long as it takes, years even, to accomplish the seemingly impossible.
Stats and graphs help people quickly eyeball those odds.
Dec. 28, 2006 - Using the Internet to Find Property
Last night I ran to show a property that had come on market just before noon. When I returned home after writing the offer on it, I check it in a poplar map home search site (not Redfin) and it wasn't there! I was so HAPPY! And yes, no one else had an offer on it yet...probably didn't even know it was for sale yet!
Here is an article I wrote earlier this year that was helpful to many. I totally agree that this should not be the case, but for some reason it is. And my clients are very glad that it is true :)
It should come as no surprise to you that very often, the best homes sell quickly.
Sign up for two or three sites to email you listings as they come on market. I use two. I use the mls and I use searchingseattle.com I sign up AS my clients, so I can screen the homes. But my clients also sign up as most times I only email them the properties I am recommending. One thing I like about SearchingSeattle.com (my site) is that it has no "back door". I am not watching you look at homes, I am not capturing emails from there, and I am only contacted when you choose to contact me. No registration in the sense that I am adding you to some list of people to nag. The registration process is simply to provide you with emails when properties come on market. It also emails you to say 0 homes came up today.
Being the first to know is SO important, as it gives you ample time to view and consider the home. The biggest disappointments are usually when you are the 20th person to view, and the 3rd person to offer. Being first to offer often has its benefits, not always, but often.
For a few weeks now an agent friend of mine has had a client who is considering purchasing a house that backs up to a freeway. The agent has asked for my thoughts. The owner has asked for my thoughts. After questioning both of them, I still could not come up with the answer, because they were not providing the information I needed to offer my advices. So I went to the house with the other agent's clients (with her permission of course) to gather the information needed.
On the plus side, you could not SEE any cars. Even worse than road noise, is road noise and seeing the cars going by. This is true of streets that have much less traffic than a freeway as well. If you see cars going by at a steady clip. If you are at the bus stop, which is very noisy as the bus stops and starts, and you have people waiting for the bus hanging out on your front step, Generally, what you can see and what commotion is happening at the house, is more important than road noise alone. Noise alone is better than noise and visual chaos.
So I get to the house and there is noise at the house. That there is no noise IN the house is good, but still, don't you want to be able to open the window? Always judge the house by the noise you can hear with the window open, or from the front steps, the deck and the yard.
Why would someone buy a house that back up to a freeway? Easy answer, because it is much cheaper. It has a view of the lake and mountains, it's a great house and it is $300,000 to $500,000 less than that same view in a better location. If you really want a view, and you can't afford a view house in a good location, at the right discount you can get that view home in a lesser location.
The property WAS properly discounted for the negative aspects of the location, so why did I say NO, you should not buy this house? They liked the floor plan and they liked the view. But that was about all that they did like. They talked about doing a $50,000 remodel on the kitchen. They talked about doing a $20,000 remodel of the master bathroom. They talked about replacing every door frame and every door and every cabinet in the place. By the time they stopped talking about what they would DO to the house to get it the way they wanted it, they were up to $100,000 or more of improvements.
If you like the house just the way it is. If you do not plan to sell it in the near future. If you could see yourself living there for fifteen to twenty years. Then you should buy it if it is properly discounted for the location weaknesses. But if you are going to sink a ton of money into it AND think you may want to move in three to five years...then NO, do not buy that house!
By the way...the seller RAISED the price $50,000 after not selling it for two years, because Zillow said it was worth more. Guess Zillow can't see the road noise and need for updating :-) Zillow can be a great tool, if sellers understand that computer generated value calculations need to be adjusted for things a computer can't see or hear.
Our first house was "my" house. Near my Mom. Just the right size. In a cul'de sac In a neighborhood I knew, where I could walk around and even walk to my Mom's if I was feeling energetic. Down the street from the church. Around the corner from the hospital. I thought I'd live there forever.
On our first vacation we were sitting on the beach, and my husband started talking about our first single home (vs. a "twin") and I was amazed that he was already thinking about moving. The house was just getting to be "our" home with the changes we were making.
Our second house was "his" house. I was panicked at the price and payment. I even went to the minister and said "I think I'd rather have a divorce than a $100,000 mortgage!" It was across the bridge in NJ from everyone I knew. It was gorgeous and big on a half acre, but too much for me to handle with three little ones and a full time job. I finally freaked out and we sold it. (I switched to real estate then, before I sold it)
Our third house was a transition house that wasn't really suited to us, but the kids really liked it. I insisted we qualify on his income only as I had a 4 year old, a 2 year old and a 6 mo. old.
Our fourth house everyone liked and was in the same neighborhood as the third house...
It's why I never forget that when I am working with a married couple, I have two clients and not one. Best for everyone to like it. OK if one likes it more than the other. But not OK if one compromises too much and isn't comfortable in their home.
Sep. 26, 2006 - 26. Is There a Penalty if I Can't Close On Time?
Yes and No. It's not really a penalty. If the seller is willing to wait for you, then it seems only fair that you should cover his carrying charges for the extra days. In fact you should offer to do so if the delay is going to be more than a day or two.
If his mortgage payment is $2400 a month, you should voluntarily offer to pay him $200 for every day your are going to be late. If you do offer it, you will more likely get his approval to extend the date, so it can be a win-win situation.
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
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.
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