Apr. 29, 2015 - 2015 YTD Home Prices Bellevue near Microsoft 98007 & 98008
This morning I posted the home price graphs for 98052 and 98033. When you are looking for homes in close proximity to Microsoft Main Campus you often look at parts of 98052 and then shift to 98033 for good reasons not associated with being really, really close to work. Often parts of 98033 are more desirable than parts of 98052 for that reason. Singling out all of Bellevue 98007 and 98008 as I have done will make perfect sense to those who work at Microsoft main campus and also to those looking for Lake Sammamish vs Lake Washington water views. I combined the two zip codes as 98007 does not have enough Single Family Home vs Condo sales to warrant its own graph.
This area is completely different than what I posted this morning. You have one or two Elementary Schools in the 98033 and 98052 data I posted this morning that aren't in the preferred ranking of 8 to 10. BUT when you get to 98007 and 98008 you only have a couple of schools that ARE an 8 to 10 ranking and most that are not.
This creates an odd conundrum when doing the graphs, because many home buyers do an overlay of the Elementary School being ranked at 8 or higher.
So for these Zip Codes I need to show two graphs. One for all homes and a second for all homes in the boundaries of the Elementary Schools ranked at 8 or higher.
If I did not show this in both ways, people would be looking for something that doesn't exist. They would be looking for all of the future 104 homes near Microsoft in these Bellevue Zip codes, not knowing that if they also say "but only homes with an Elementary School ranked 8 or better" they would be eliminating all but about 30 of them and eliminating all of the ones but for ONLY 7 that are priced at $550,000 or less.
So to save people from going out on a wild goose chase and wasting their precious time in this limited inventory market waiting for something that doesn't exist...I am showing the data in both ways below.
The Graph - All Elementary Schools
The Graph - Elementary Schools Ranked 8 or better
(Required Disclosure: Stats in the Post are hand compiled in real time by Ardell DellaLoggia and not previously compiled or published by The Northwest Multiple Listing Service.)
Also note that "school rankings" are as noted at GreatSchools.org and not being hailed by me as being completely valid or the only consideration for choosing a school or a house. I am simply noting what most buyers do with that information and how that impacts home prices.)
Apr. 29, 2015 - 2015 Year to Date Home Prices in Kirkland WA 98033
Home Prices in Kirkland 98033 vary based on proximity to Lake Washington and Downtown Kirkland, as well as age of home, size of lot, condition of home and other factors. School Ranking not as significant in Kirkland 98033 as it is in Redmond 98052, with one exception.
It is helpful to see if you are looking at the least expensive
or most expensive home in this Zip Code.
Once you subtract land value you will see a vast difference between the size and quality of the home you can buy at the very same price. If the home costs $800,000 in a lot = $400,000 neighborhood, you will get significantly more in the home itself than in a neighborhood where the lot = $650,000. The difference between the lot value and the price is the cost of the actual house.
Lot value = 1/3rd the price a new home on that lot would sell for - rule of thumb.
Most people looking in 98033 are also looking in parts of Redmond and parts of Bellevue and possibly parts of Sammamish or Issaquah and Bothell. For that reason I have posted the low to high price stats for those zip codes as well. 98052 There will be a wrap up post HERE when I get to the conclusions you should draw from these stats.
While my numbers don't always jive with Zillow home price stats for Kirkland WA 98033, you should always review a variety of sources since we are compiling them differently and all are important. We'll throw in Trulia Home Prices for Kirkland WA 98033 as well so you can see that even between Zillow and Trulia, even though Zillow now owns Trulia, you will see vast differences and all info should be reviewed and balanced, including mine.
(Required Disclosure: Stats in this post are hand calculated by Ardell DellaLoggia in real time and not a reprint of data previously compiled and published by The Northwest Multiple Listing Service.)
Apr. 29, 2015 - 2015 Year to Date Home Prices in Redmond WA 98052
Home Prices in Redmond 98052 vary based on school ranking and proximity to Microsoft, as well as age of home, size of lot, condition of home and other factors.
It is helpful to see if you are looking at the least expensive
or most expensive home in this Zip Code.
Once you subtract land value, which includes the location variances of school ranking and proximty to X, you will see a vast difference between the size and quality of the home you can buy at the very same price. If the home costs $600,000 in a lot = $400,000 neighborhood, you will get significantly less in the home itself than in a neighborhood where the lot = $250,000. The difference between the lot value and the price is the cost of the actual house.
For most people looking in 98052, they are also looking in part of Kirkland and part of Bellevue and possibly parts of Sammamish or Issaquah and Bothell. For that reason I will be posting the low to high price stats for these zip codes in the next several blog posts. There will be a wrap up post HERE when I get to the conclusions you should draw from these stats.
While my numbers don't always jive with Zillow home price stats for Redmond WA 98052, you should always review a variety of sources since we are compiling them differently and all are important. We'll throw in Trulia Home Prices for Redmond WA as well so you can see that even between Zillow and Trulia, even though Zillow now owns Trulia, you will see vast differences and all info should be reviewed and balanced, including mine.
(Required Disclosure: Stats in this post are hand calculated by Ardell DellaLoggia in real time and are not a reprint of stats compiled and published previously by The Northwest Multiple Listing Service.)
Jan. 2, 2015 - 2015 Home Prices in Redmond Washington
Home Prices in Redmond Washington 98052 (vs 98053)
Quick Facts based on prior 365 days and year end 2014 price start point for 2015.
1,018 people bought a home in Redmond 98052
404 of them bought a condo and 614 of them bought a house.
The median price of a single family home in Redmond 98052
Of the 404 condos sold, 200 were one level condos and 204 were townhome style condos.
The median price of a one level condo in Redmond 98052
The median price of a townhome style condo in Redmond 98052
236 of the 404 Single Family Homes sold were less than ten years old.
The median price of a SFH less than 10 years old in Redmond 98052 is $791,000
The median price of a SFH more than 10 years old Redmond 98052
98053 Redmond vs 98052 Redmond is a secondary market much like Sammamish and Bothell vs Kirkland, parts of Bellevue and Redmond 98052.
491 homes sold in 98053 of which 433 were single family homes.
Historically people would purchase a bit far out in the 98053 vs 98052 zip code to get a lot more land with their home than they would in 98052. 166 of the 433 homes sold fit that description with lot sizes of 15,000 sf or more and a median price of $715,000.
ONLY 19 of the homes sold in 98053 with lots that are 15,000 sf or more were less than 10 years old, and those sold for a median price of $900,000.
The trend to go to 98053 to get a NEW house on a small lot is relatively new, and the question is will the prices they pay to go that far to get NEW hold when they try to sell that house as NOT new.
Quite a bit of in between here, much like Sammamish, but mostly I say if you are going out a bit from Redmond 98052 then put closer in Sammamish in the mix along with 98053 before making any permanent decisions between the two. Sometimes an almost new in Sammamish is better than a brand new in 98053 and often most any age 98052 is better than new in 98053. Not always, but worth taking the time to compare the options with a high degree of due diligence before buying.
(Required Disclosure: Stats in this post are not compiled, published or verified by The Northwest Multiple Listing Service NWMLS. They are hand compiled by Ardell DellaLoggia as she was writing the post in real time.)
May. 18, 2014 - What is Appraised Value vs Market Value or Assessed Value?
Current Value of a home is always somewhat subjective and accurate only to the degree required for a given purpose.
When buying and selling a residential property to live in, you are basically dealing with FOUR different values to four different purposes all at the same time. Let's address them in chronolocigal order.
1) ASSESSED VALUE
The Tax Assessed Value of the home establishes the yearly amount of Real Estate Taxes you will need to pay. While you may not think of this as the first valuation of importance when buying or selling a home, it is, and here's why.
When a buyer goes to their lender to get a pre-approval before they even go out to look at homes to purchase, the lender is not really qualifying them based on a purchase prie, even though the pre-approval comes out in writing as a purchase price. The letter says you qualify for a home priced at $650,000 with 20% down. That is what the pre-approval letter says. BUT that is a conversion of what the lender actually did to give you that approval. All lenders are approving you based on monthly payment, not purchase price. They convert it to a price because that is what they think everyone wants, and usually but not always, that works. UNTIL you are buying a screaming deal or a condo-townhome vs a house. Then it doesn't work. So you need to understand the basic assumptions.
PITI + RE Taxes + Homeowner's Insurance + Condo FEE
The lender is making some assumptions as to the above when giving you a pre-approval letter. If you are saying you want to buy a single family home and not a condo, then the condo fee will not be used to determine the amount you are pre-approved to purchase. The lender will ASSUME an amount for RE Taxes and Insurance. Consequently the pre-approval is ony as good as these assumptions turn out to be later when you choose a property to purchase.
IF you are qualified up to $650,000 as noted above, the lender may assume RE taxes of $6,500 a year and Homeowners insurance of $650 a year. If you are lucky enough to buy a screaming deal, then the ASSESSED VALUE will be much higher than the Price Price AND the RE Taxes will be much higher than the lender assumed they would be when they told you how much home you could buy AND your loan can fail and you can lose your Earnest Money if you find this out too late. Same is true if you buy a Condo instead of a house.
So Assessed Value actually kicks in first, as it is influencing the amount noted on your preapproval letter, before you even go out to see homes to purchase.
2) CMA VALUE - ASKING PRICE - OFFER PRICE
This is actually a fourth valuation method not noted in the caption of this post in that it is not the Assessed Value or the Appraised Value or Market Value. It is related to all three, but a mash up of all potential outcomes and values. It comes in SECOND because most buyers are looking at homes that have an Asking Price based on a CMA (Comparative Market Analysis) and then the buyer is changing that up or down in their Offer Price based on specific market conditions on the day of offer.
A seller and the seller's agent are looking at the same information as an appraiser and adding a layer of "what will the market bear" and also what does the seller want in terms of price and terms. An Asking Price should not be higher than 95% of anticipated sold price. Some sellers will price higher and often because they are testing the market and not really in a big hurry to sell and leave. Some sellers want to stay after closing until they find a house to move to and those sellers will usually prie lower so as to have a pool of buyers to choose from in order to find one who will not require that they leave on the day of closing. What a buyer is going to offer on a house is always an unknown to the seller at the time they establish the Asking Price.
How close the Asking Price is to Market Value and whether it is higher or lower is something the buyer has to consider in their offer strategy. All subjective calculations, but not without solid basis.
ARDELL DellaLoggia of Sound Realty on Seattle Real Estate process and market including Kirkland, Bellevue, Redmond, Green Lake and most areas around the top of Lake Washington North of Downtown Seattle.
Phone: 206-910-1000 - Mailto:ARDELLd@gmail.com