Brian Leavitt, REALTOR®

OK, It's real estate..

When one of my clients called the other day with a real estate question, I was surprised when she prefaced the question with “I know your main business is mortgage but...” I was delighted to help her with her question and found it interesting that the image I had cultivated is that mortgage is my primary business. One of the things this tells me is I need to do a better job educating my clients, so here goes.

Real estate is my primary business. In pursuit of my goal of delivering excellent service in real
estate I found that a consistent weakness in transactions was the mortgage component. This led me to the conclusion that the only way to make sure my clients were adequately served was to become
an expert in mortgage as well as real estate. I began serving my clients with their mortgage needs more than 18 years ago. The objective of the mortgage company has, from our first day in business, been threefold:

1. To serve my real estate clients by thoroughly educating them about their financing options so that they can select the best mortgage product for their needs.

2. To deliver competitive interest rates and low fees.

3. To maintain the highest level of integrity putting client needs first always.

Because of this we weathered the mortgage industry meltdown in a market that most of our
competitors did not survive.

As stated previously, real estate is my primary business but a large part of my success is the unique
ability to merge both the real estate and mortgage component taking service to a higher level. Even in the event that my client uses another source for their mortgage financing, the same level of
service and heart of the teacher are there.

In closing I would like to take a moment and say thank you to my many, many loyal clients who helped me during this very difficult time by referring friends and family for both their
real estate and mortgage needs. I can never thank you enough for your loyalty and support. I am blessed because of you.

Brian

Color influences thought

The Pantone Color Institute researches how color influences thought, emotions and physical reactions. Some of their recent recommendations for interior decoration are:

Yellow: When the eye takes in yellow, it releases serotonin, a neurotransmitter linked to feeling good. The institute recommends a soft chamois, butterscotch or honey yellow for a living
room, entry or foyer. It will boost moods.

Blue: They say when the blue sky is above you, it's hard to be anxious. Studies show that blue makes the heart rate slow, perspiration drop, and breathing deepen. Pantone recommends it for
bathrooms and for any room where you want to relax.

Brown: It has emerged as a rich mocha linked to the flavors of coffee and chocolate. People love their wood floors and furniture. Brown is associated with stability of the earth. In
bedrooms, it increases sleep-inducing sensations of safety and comfort, whether
it's on a wall, in furniture or bedspreads.

Red: It has an aggressive nature, commanding attention and demanding action. It may introduce a fight-or-flight reaction including elevated breath and pulse rate and an increase in adrenaline
and perspiration.

Black: To
banish sadness, limit the black and dark grays in your life. Leave pure white
on the ceilings.

In preparing a home for sale, color is among many of the considerations. Take a look at stagedhomes.com for an in depth look at the benefits and many of the techniques of home staging. Barb Schwarz is the leading authority on staging and she is a local talent.

U.S. Cities Where Homes Sell the Fastest - Seattle #2

In a recent article where CNBC uses Zillow's data to rank cities across the US, Seattle Ranks number 2 behind two Bay Area Powerhouses, San Francisco and San Jose(tied for first) Below is the complete article.

Although the U.S. housing market continues to struggle, many local markets are doing significantly better than the country as a whole, with some places virtually missing the housing bust altogether.

While shifts in home values are important in any market, it's important for sellers to determine the length of time a property can expect to be on the market before it will be sold. The faster that homes sell, the faster an inventory backlog can be cleared, suggesting heightened demand and an upward trajectory in prices. Additionally, if a home is on the market for an extended period of time, it may may turn off prospective buyers and force sellers to accept less-favorable offers.

To find the cities where this trend is the most extreme, real estate website Zillow.com analyzed the numbers to identify the cities where homes sell the fastest, according to the median number of days on the market. The numbers presented here are representative of home sales between mid-April and mid-July 2011.

During this time, the national median for time spent on the market stood at 117 days, while New York (168 days), West Palm Beach (175 days), and Indianapolis (180 days) were the cities where homes sold the slowest.

Also included in the analysis is the Zillow Home Value Index (ZHVI), which represents the median measure of home valuations covered by Zillow. The information presented here also includes the proportion of listings with price cuts, the average amount those listings were reduced, and the “final discount from list price,” which is the average amount that was negotiated off the original list price before the sale.

So, where do homes sell the fastest? Read ahead to find out!

5. (Tied) Oakland, California

Median time to sell: 81 days
Zillow Home Value Index: $316,400

Listings with price cuts: 26.17%
Average price cut amount: 8.70%
Final discount from list price: 1%

5. (Tied) Woodbridge, Virginia

Median time to sell: 81 days
Zillow Home Value Index: $230,500

Listings with price cuts: 20.54%
Average price cut amount: 5.66%
Final discount from list price: N/A

4. Alexandria, Virginia

Median time to sell: 74 days
Zillow Home Value Index: $402,500

Listings with price cuts: 33.30%
Average price cut amount: 4.47%
Final discount from list price: 2%

2. (Tied) Seattle, Washington

Median time to sell: 73
Zillow Home Value Index: $347,700

Listings with price cuts: 33.55%
Average price cut amount: 6.88%
Final discount from list price: 2%

2. (Tied) San Jose, California

Median time to sell: 73
Zillow Home Value Index: $494,500

Listings with price cuts: 26.16%
Average price cut amount: 5.58%
Final discount from list price: 1%

1. San Francisco, California

Median time to sell: 59
Zillow Home Value Index: $655,400

Listings with price cuts: 22.55%
Average price cut amount: 6.05%
Final discount from list price: 1%

Staying calm during home negotiations

After much soul-searching and working the numbers, you decided to put your home on the market. You may be selling to change cities for a job or are needing to downsize. Regardless of the reason, this is a big and important decision!

The time has come, though. You have received an offer on your home. How can you make it through? This can be a very trying time. How do you know which offer to take or what counteroffer to make?

Here are 10 tips to help you stay calm during negotiations.

• Trust your Agent: You hired your agent for a reason. He has experience handling negotiations and contracts. Feel free to ask him any questions you have, but don't let the pressure of every minute detail overwhelm you.
• Eat and Sleep: Our body needs to refuel in two ways: food and rest. Be sure to get plenty of both so that your brain is well-prepared for any big decisions you may need to make. Pack a bag lunch or some snacks if you think you may be too busy to stop for lunch or dinner on the way to your agent's office.
• Have Downtime: Getting your mind off of a stressful situation means you can come back later refreshed and ready for a challenge.
• Open Communication: Express real concerns to your spouse, significant other, or business partner. You never really know what someone else is thinking unless you talk openly. ·  Exercise: This is a great way to clear your mind and to gear your body up for the stress of selling. Walks, runs, and even a trip to the gym can be extremely beneficial.
• Meditate: Take a moment and find a quiet space. Sit quietly with your eyes closed and focus on your breath coming in and going out of your body. Be still and be in the present moment. As thoughts and worries come in your mind, acknowledge that they came and then pull your focus back to your breathing. Even a few minutes can do wonders at centering the mind.
• Run the Numbers: Seeing the facts in black and white can help take emotion out of this business decision. Should you accept this offer? Is it too low? Do the math and know for sure.
• Practice Patience: Buyers may take their time to consider your counter-offers. Be patient and know that an answer will eventually come.
• Leave Impulse at the Door: This is not a time to make rash decisions. You want to be sure that this is the right deal and the right time.
• Enjoy the Process: Yes, it's a stressful time, but it can also be the doorway to your new life. Embrace it and stay positive.

It was a big day when you decided to list your home for sale and it will be a even bigger day when you close with a seller. Take care of your body, relax your mind, and trust in your team of professionals and you're sure to make it through this stressful time.

Carla Hill /  Realty Times

Selling in today's market

In today's market many sellers want to know the secret to selling their homes quickly. They want to know ways to hold on to the equity they've built over the past decade. Unfortunately, there is no golden equation that equals the perfect sale. Yet, while there is no "sure thing" in the housing market these days, there are certain factors that affect how quickly and for how much your home sells. Here are the top ten. Consider how these apply to your own home, how that affects marketing, as well as what aspects of your home you should "play up" to elicit a better response from buyers. 1. Price: It's a common misconception in today’s market that location is the leading factor of whether or not a home sells. It is, instead, price. Think about this scenario. You have a home located in a prestigious and sought-after neighborhood, yet the list price is tens of thousands of dollars over the comps for the area. No one will be interested. This same property priced just below the competition will fly off the market. 2. Location: Okay, location is still very important. A home that sits next to a transfer station, crime-ridden neighborhood, or busy street is less desirable than one that backs up to green space. If your home has a premier location, then by all means boast about it in your marketing. 3. Livability: This is fast becoming a hot button word in real estate. Buyers today are looking for neighborhoods that deliver amenities such as golf course, restaurants, and theaters.  I am surprised how often people map the walking distance to the nearest Starbucks.   They want good schools, walkable neighborhoods, and plenty of things to keep them entertained. 4. Condition: There is a certain segment of the market that is made up of renovators, flippers, and investors. You won't find as many people these days eager to buy your run-down property that is in a good location. They simply can't sell the property fast enough before monthly mortgage payments begin eating up their profit. Homes that are well-maintained or in move-in ready condition appeal to a broader range of buyers. Even simple fixes, such as new paint, cleaned carpets, or power-washed decks, can have an effect. 5. Competitive Advantage: Don't make the mistake of assuming that you're in this race alone. Past area sales, as well as current listings and foreclosures, are your direct competition. You must take these into consideration when settling on a list price for your home. What amenities and upgrades do these homes have? Do the homes in your neighborhood all have updated baths, kitchens, or landscaped yards? In order to price in line with them you must be able to boast these same things. 6. Curb Appeal: Curb appeal is the first impression of the home. You must keep the yard orderly and maintained when your home is on the market. 7. Staging: Once inside your home, a buyer must be wowed. Intoxicate their senses. They want to see up-to-date furnishings, smell a clean home, touch cabinets that are in good repair, hear peace and quiet, and of course "taste the good life." 8. Kitchens: A kitchen sells a house. It is where families gather and connect. Minor kitchen remodels rank high among the list of top remodeling projects, with owners updating cabinets, counters, and floors. Nobody wants an outdated kitchen. What fixes are in your budget? If your kitchen is already spectacular, be sure you play this up in any marketing. 9. Agents: An accomplished, knowledgeable agent can be your biggest ally during the selling process. They know the latest market trends and have built a network of agents and contacts to whom to market your home. With an arsenal of marketing tools available to agents today, from video tours and webcasts to brochures, websites, and mls listings, they are part of your selling team. 10. Marketing: Marketing has gone global. With the power of the Internet, you can showcase your home to millions of potential buyers. Sit down with your agent and develop a solid marketing plan. This is why you are paying them a commission. Make them earn it! The market is not what it once was. You must be realistic about what selling in today's market means. You value your home, but it may not be "worth" as much today as it was yesterday, last month, or last year. Consider these top ten ways a home sells and help your home put its best face forward.

IRS Provides Relief for Homeowners with Corrosive Drywall

The Internal Revenue Service today issued guidance providing relief to homeowners who have suffered property losses due to the effects of certain imported drywall installed in homes between 2001 and 2009.

Revenue Procedure 2010-36 enables affected taxpayers to treat damages from corrosive drywall as a casualty loss and provides a ”safe harbor” formula for determining the amount of the loss.

In numerous instances, homeowners with certain imported drywall have reported blackening or corrosion of copper electrical wiring and copper components of household appliances, as well as the presence of sulfur gas odors. In November 2009, the Consumer Product Safety Commission (CPSC) reported that an indoor air study of a sample of 51 homes found a strong association between the problem drywall, levels of hydrogen sulfide in those homes and corrosion of metals in those homes.

Revenue Procedure 2010-36 provides the following relief:

• Individuals who pay to repair damage to their personal residences or household appliances resulting from corrosive drywall may treat the amount paid as a casualty loss in the year of payment.
• Taxpayers who have already filed their income tax return for the year of payment generally have three years to file an amended return and claim the deduction. The amount of a loss that may be claimed depends on whether the taxpayer has a pending claim for reimbursement (or intends to pursue reimbursement) of the loss through property insurance, litigation or otherwise.
• In cases where a taxpayer does not have a pending claim for reimbursement, the taxpayer may claim as a loss all unreimbursed amounts paid during the taxable year to repair damage to the taxpayer’s personal residence and household appliances resulting from corrosive drywall.
• If a taxpayer does have a pending claim (or intends to pursue reimbursement), a taxpayer may claim a loss for 75 percent of the unreimbursed amount paid during the taxable year to repair damage to the taxpayer’s personal residence and household appliances that resulted from corrosive drywall.

A taxpayer who has been fully reimbursed before filing a return for the year the loss was sustained may not claim a loss. A taxpayer who has a pending claim for reimbursement (or intends to pursue reimbursement) may have income or an additional deduction in subsequent taxable years depending on the actual amount of reimbursement received.

For purposes of this revenue procedure, the term “corrosive drywall” means drywall that is identified as problem drywall under the two step identification method published by the CPSC and the Department of Housing and Urban Development in their interim guidance dated January 28, 2010.

Further details and limitations can be found in Revenue Procedure 2010-36 on IRS.gov.

  NWREporter November 2010

Foreclosure Time Line

Talon Northwest Neighborhoods

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Watch out for foreclosure scams Posted: 20 Sep 2010 11:12 AM PDT  I had a pretty scary conversation over the weekend with one of my Seattle area loan officers.  One of her past south end clients called to complain about a "prospective buyer" that showed up on her door step interested in making a bid on the property.  Naturally she was concerned since she hadn't received any notices in the mail. Here's the scoop.  Late last week, someone came knocking on the past clients door and said that they were interested in buying the home at auction.  They asked the homeowner to do a walk through on the property to make sure everything was in good shape.  So they walked through the house, inspected it, said thanks and left.  The owner then called my loan officer to complain about not being notified of the pending foreclosure auction date. So my loan officer calls her department that handles foreclosures, and sure enough the homeowner is current on their payments.  The loan officer called the owner back and told them to call the police right away. The loan officer I spoke with mentioned that she's heard of people pretending to be from the bank as well, and needing to do an inspection before the bank puts it on the auction block.  Or they are an inspector for the auction and need to review the home before the auction date.  Regardless of the story, it's not a good idea to let someone in your home that you're not sure of.  There are rules and time lines associated with foreclosures.  There is no reason why one should come as a surprise to any homeowner.  Here's the time line of the process, from www.usa-Foreclosure.com: Time line Step Days for Step Total Days Loan referred/file received 1 1 Trustee Sale Guarantee report ordered, NOD mailed and posted on the property 30 days before Notice of Sale 1-3 4 Trustee Sale Guarantee report received and reviewed, Substitution of Trustee prepared 30 34 Substitution of Trustee received/recorded, Notice of Sale recorded, posted and mailed 90 days prior to sale; sale date set; Warranty Deed sent to lender (HUD/VA) 1-5 39 Publication period 90 129 Publication (2 of 2) completed request bidding instructions 1-5 134 Sale held 1 135 Deed recorded 5-15 140-150 (Time line is for non-judicial foreclosures. Intervals are optimal and assumes no delays.) For more information on Washington State Foreclosures, please visit the learning center at usa-foreclosure.com.  It's unfortunate to hear these types of stories.  I'm glad to hear that nothing was taking from the home, and a police report was filed.  It could have been worse.  As always, be careful out there everyone.   Photo Courtesy of 05com

 

Short Sale Not A Cure All

In a recent conversation with another agent I was surprised to hear him boasting how the surge in short sales is such a great opportunity for distressed sellers because it "really bails them out"  Hold on there... This is a common misconception with short sales because it isn't necessarily so.  In real estate, and especially short sales, you do not get what you deserve, you get what you negotiate.  Let's take a look at some common misconceptions.

1.  There is no such thing as a free lunch:  Although the bank may willingly cooperate with a short sale, don't be surprised if they ask the seller, their borrower, to repay the unpaid portion of the obligation.  This usually takes the form of an unsecured note.  If the seller does not pay, the lender may seek a judgment against the seller that can follow them around for as long as 20 years and could become a lien against future real estate purchased, wages, etc. 

2.  No such thing as a free lunch, continued:  Don't be surprised if the lender issues the seller a 1099 for the portion of the obligation that is not paid.  In the event the lender does not require the seller to agree to repay the unpaid portion, you can expect they will receive a 1099 reporting the forgiven debt to the IRS as income.  The seller may have an out with this one because of the debt relief act, but they need to consult a qualified tax adviser before agreeing to a short sale.

3.  A short sale is "always" better for the seller than a foreclosure:  As we see in items 1 and 2 above it is likely that the obligation will follow the seller after the sale at some level.  Not so with a foreclosure in most cases.  In a non judicial foreclosure the obligation is wiped out.  Unfortunately the sellers credit is wiped out as well.  However this is true of both short sales and foreclosures but remember, if an unpaid obligation is following the seller around for the next 20 years that WAY outlasts any negative impact of a foreclosure.

When representing a seller in any short sale or foreclosure it is imperative that you, the agent, advise your seller to seek legal counsel.  A short sale or foreclosure, for many sellers, will have the greatest legal impact on them that they may experience in their lifetimes, so it is just too important for them NOT to have legal counsel.

 

Infrared Technology

This morning's Northstone team meeting featured Wade Pennington of Inspection Services Northwest demonstrating and discussing thermographic imaging.  Wade showed how this technology can be used to reveal otherwise hidden defects in structures including water leaks, moisture damage, electrical hazards and structural defects.  He also demonstrated how missing insulation and can be detected and how areas of energy loss can be shown.

One of the most important points that Wade made was that it's not just about having the technology but having the skills to interpret the data that the technology presents.  Wade says that many inspectors will purchase the infrared camera, but don't go to the trouble of really learning how to use it or are taking the appropriate courses.  He also demonstrated several areas where images from the camera can be easily misinterpreted and what steps he uses to verify the accuracy the items  he finds with the infrared camera.

Although many inspectors are now moving towards infrared technology it is important to choose an inspector who not only uses this tool, but is trained in its proper use.  Wade says that this technology is standard operating procedure for him and that each client can expect this as part of their inspection service that he provides.

 

by Brian Leavitt Northstone Real Estate, Inc.

Brian Leavitt is a Licensed Real Estate Broker and a Licensed Mortgage Broker representing  Northstone Real Estate Inc and Northstone Mortgage.

Brian Serves clients within the Northwest Multiple Listing Service.

You can contact Brian directly by phone at 425-837-4700 or toll free at 800-806-3145 or by email at broker@northstone.net

Click here to see Brian's client newsletter.

Brian is licensed by the Washington State Department of Licensing and the Washington State Department of Financial Institutions License number 510-MB-19802 and is a memberr of the Seattle King County Association of Realtors and Northwest Multiple Listing Service.

The Number 1 Myth of Pricing Property

This market, more so than most, continues to be a very price sensitive market. One of my favorite agents, Dan Edwards, of Northstone Real Estate said it best recently when he said "it is no longer adequate to the priced competitively, your price must be compelling."

The most common objection I get from sellers when working to have a compelling price is a concern over receiving low offers. They frequently have a desire to leave "Padding" in the price so as to have room for negotiation. Over the years I have found this to be the number one myth in pricing property. I have found that it is rarely a good idea to leave"Padding" in the price. The problem in this market, as in most markets, is not low offers, it is no offers. By pricing the property as competitively as we can and striving for a compelling price we get offers that otherwise we would not have. The reason we experience this is that it is crucial to price the subject property against the correct competition. I'll keep the numbers simple here so we can do easy math. Let's say that our subject property is worth $400,000 but the seller decides to list the property for $450,000 so as to have a "buffer" built into the price. The problem is that agents will show the subject property against the wrong competition. Let's say for example, I take a buyer out and show them five properties that are offered at $450,000, let's also assume that all the properties except the subject property are worth $450,000. The seller's thinking is that the buyer will simply make an offer, but the fact is that if I asked the buyer which house they like best the last house they will choose is the subject property. The reason is that it does not compare favorably against the homes we are showing it against. When I ask them why they don't just make an offer on the subject property the answer is quite simple. "That's ridiculous, that was the worst house you showed us for the money." The key here is to show the subject property against the correct competition. By leaving "padding" in the price you are instantly positioning yourself for failure. Once sellers realize this they are more likely to price the property properly; they are more likely to give you a compelling price so that you can show the home against the best competition showing the buyer the value of the property instead of placing it in the class that it will not compete effectively against.