Home Mortgage Interest Rate Timing

Home Mortgage Interest Rate Timing

Less is more:

If you’re new to investing or real estate and don’t know the first thing about interest rates, here’s a good tip: the higher the interest rate, the more expensive it’s going to be. High interest rates mean you will have to pay back more on the money you borrow. Another good rule of thumb is that affordability increases if you use an adjustable rate mortgage (it’s easier to qualify this way). Of course, there will be a wide range of prices that you can choose from, depending on what kind of financing you choose. Home mortgage interest rate timing is not easy.

Not even the Fed knows for sure:

The Fed holds a considerable amount of power, but they can’t control everything. Home mortgage interest rates are affected by many unpredictable political, economic and social events. So there is no guarantee what direction interest rates will go, despite the forecasts of the experts. Therefore, make your financial decision based on where things are today including your budget, your needs and your future plans.

Locking in rates assures your lowest interest:

If you do decide you want to lock in at a certain interest rate, you will need to complete a loan application and send it to your lender as soon as possible. This must be done so that your commitment doesn’t run out before your loan is approved. Follow up and be se sure that the lender is receiving all of the necessary documentation. Get a property appraisal, which usually costs about $300 – $500, through your Lender as soon as possible.

Don’t obsess and miss a good real estate deal:

Although rising interest rates can create more problems for home buyers, waiting and hoping for low rates is not necessarily a smart move. You may end up paying a higher price when playing the home mortgage interest rate timing game. Also, refinancing is always an option in the event that interest rates come down.

Buying the Best Home

Five Secrets to Buying the Best Home for Your Money

Do Not Make These Mistakes When Selling Your Home!

Mistake #1 — Pricing Your Property Too High:

Every seller obviously wants to get the most money for his or her product. Avoid these mistakes when selling your home. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price. This is one of the most damaging mistakes when selling you home!

Mistake #2 — Mistaking Re-finance Appraisals for the Market Value:

Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your REALTOR® for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.

Mistake #3 — Forgetting to “Showcase Your Home”:

This may be one of the worst mistakes when selling you home, but it is simple to avoid. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers.

Mistake #4 — Trying to “Hard Sell” While Showing:

Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don’t try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.

Mistake #5 — Trying to Sell to “Looky-Loos”:

A prospective buyer who shows interest because of a “for sale” sign he saw, may not really be interested in your property. Often buyers who do not come through a REALTOR® are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate. This is one of the mistakes when selling your home.

Your REALTOR® should be able to distinguish realistic potential buyers from mere lookers. REALTOR®s should usually find out a prospective buyer’s savings, credit rating, and purchasing power in general. If your REALTOR® fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, consider finding a new REALTOR®.

Mistake #6 — Not Knowing Your Rights & Responsibilities:

It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing.

Not being aware of the terms in your contract could cost you thousands for repairs and inspections and is one of the most serious mistakes when selling you home. Know what you are responsible for before signing the contract. Can the property be sold “as is”? How will deed restrictions and local zoning laws affect your transaction? Not knowing the answers to these kinds of questions could end up costing you a considerable amount of money. Do not make these mistakes when selling your home!

Mistake #7 — Limiting the Marketing and Advertising of the Property:

Your REALTOR® should employ a wide variety of marketing techniques. Your REALTOR® should also be committed to selling your property; he or she should be available for every phone call from a prospective buyer. Most calls are received, and open houses are scheduled, during business hours, so make sure that your REALTOR® is working on selling your home during these hours. Chances are that you have a job, too, so you may not be able to get in touch with many potential buyers.

Bothell Washington

Searching Real Estate in Bothell Washington

City of Bothell Washington

Nestled along the banks of the Sammamish River and tucked away between the trees, approximately 12 miles northeast of Seattle, you will find the quaint town of Bothell Washington. Not quite the fast paced urban feel of Seattle, yet full of hospitality and all the amenities a big city can offer.

Bothell is conveniently located next to the major Interstates of 405 and I-5. Its proximity offers a central location for day trips to the mountains and coast, as well as easy access to Seattle’s downtown and waterfront, Woodinville’s wine country and many other regional attractions. However, there is also plenty to do right here!

Bothell’s blend of past, present and future and its closeness to nature, culture and industry, makes it the perfect place to spend a day, a weekend or longer.

Bothell Washington Links & Information

City of Bothell,
Website: City of Bothell Washington

Bothell Washington Parks & Recreation
Greater Bothell Chamber of Commerce
Bothell Washington – Northshore School District

This page provides you with a current Windermere Homes and Land for sale listings search feature to find all real estate broker listed properties by MLS number from a trusted Windermere real estate agent and REALTOR® who services all of Bothell Washington real estate.

Using this site will provide Bothell real estate buying and selling information on Bothell homes for sale, Bothell new homes and Bothell land for sale from a trusted Bothell Washington Windermere real estate agent and REALTOR®, Bob Chapman.

Whether you are interested in a MLS number search for residential property, new home, condo or condominium, fixer home, townhomes, new construction, development land, vacant land, waterfront and lakefront, horse & equestrian property, rental investment, multi-family, foreclosure, home for sale or a home loan on your existing property, you will find a variety of Bothell Washington real estate listings and information available by CLICKING on any of the searches listed on this page.

Bothell Windermere real estate listings, will help you every step of the way with your current and/or future real estate needs.

This Bothell Washington real estate website page also has up to date information on real estate home loan interest rates, mortgages and a loan or mortgage calculator.

Tips for Real Estate Investing

Tips for Real Estate Investing

Be a Real Estate Investor!

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know Please see the tips for real estate investing below:

1. Compare Property Values and Rents:

Financial statistics only go so far; the best measure of a property’s market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.

2. Be Careful – Tax Laws May Change:

Don’t base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. Another one of the tips for real estate investing is finding the right property with the right financing. That is what you should look for as an investor.

3. Specialize In Something You Know:

Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know The Costs Going In!:

Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know Where Your Tenants Are Coming From:

If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing.

6. Assess The Tax Situation:

Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.

7. Investigate Insurance Coverage:

If seller’s coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs:

Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant’s rent.

9. Consult Your Accountant:

Taxation is a key element of successful real estate investing.  Find an accountant who is well-versed with the constantly evolving tax code is one of the important tips for real estate investing.

10. Inspect!:

Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In all cases, hiring a professional inspector is a sound investment.

real estate links

Real Estate Website Links & Related Topics

Each topic listed below contains real estate and real estate related useful links to valuable information websites and web directories.

Find a Real Estate agent or listing nationwide or search for International real estate resources – Locate a Home Mortgage lender in your city or state – Directory of multiple and/or general topic Search Engines – A great selection of Home Decorating, Furnishings, Gadgets, Improvement, Security, Safety, Gardening and Landscaping ideas. Find links to Building Design & Architecture plans websites.

Investing in Real Estate

Investing in Real Estate May Save You Money!

Lower Your Taxes:

Tax incentives for real estate investors can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. Tax breaks can often enable investors to turn a loss into a profit.

For which items can investors get tax breaks? You could claim deductions for actual costs you incur for financing, managing and operating the rental property. This includes mortgage interest payments, real estate taxes, insurance, maintenance, repairs, property management fees, travel, advertising, and utilities (assuming the tenant does not pay them). These expenses can be subtracted from your adjusted gross income when determining your personal income taxes. Of course, these deductions cannot exceed the amount of real estate income you receive.

In addition to deductions for operating costs, you can also receive breaks for depreciation. Buildings naturally deteriorate over time, and these “losses” can be deducted regardless of the actual market value of the property. Because depreciation is a non-cash expense — you are not actually spending any money — the tax code can get a bit tricky. For more information about depreciation and various tax alternatives, ask your tax advisor about Section 1031 of the U.S. Tax Code.

Seek advise from your Income Tax advisor or a CPA regarding the above information before beginning your investing in real estate program!

Have a Positive Cash Flow:

There are two kinds of positive cash flows: pre-tax and after-tax. A pre-tax positive cash flow occurs when income received is greater than expenses incurred. This sort of situation is difficult to find, but they are usually a strong and safe investment. An after-tax positive cash flow may have expenses that outweigh collected income, but various tax breaks allow for a positive cash flow. This is more common, but it is generally not as strong or safe as a pre-tax positive cash flow.

Regardless of what kind of real estate you choose to invest in, timely collections from your tenants is absolutely necessary. A positive cash flow — whether it is pre-tax or after-tax — requires rental income. Be sure to find quality tenants; a thorough credit and employment check is probably a good idea.

Use Leverage:

One of the most important factors in determining a solid investment is the amount of equity you are purchasing. Equity is the difference between the actual worth of the property and the balanced owed on the mortgage.

Benefit from Growing Equity:

While investing in real estate is relatively complex, it is often worth the extra work. When compared to other financial investments, like bonds or CD’s, the return on investment for real estate purchases can often be greater.

The key to investing in real estate is equity. Determine an amount of equity that you want to achieve. When you reach your goal, it’s time to sell or refinance. Determining the proper amount of equity may require the assistance of a real estate professional.

Short Sale

What is a “Short Sale”?

Short Sale Definition:

A Short Sale occurs when the proceeds of a real estate sale fall short of the balance owed on the property and; the underlying lienholder (Lender) agrees to accept a purchase offer from a Buyer that does not cover the existing mortgage including any costs of sale; and the Seller does not have sufficient assets to make up the deficiency.

Short Sales and Distressed Homes for sale make up a large percentage of the available homes for sale in County. Selling or Buying distressed real estate properties can be difficult for both Seller’s and Buyer’s in negotiating with the underlying lender (lien holder) in obtaining the desired decision from the lender, acceptance of the offer presented. Each lender has a set of rules for receiving and reviewing any offers that may be presented to them for Short Sale consideration. I have successfully helped to coordinate the processing of many Short Sales with several different lien holders.

If you are a Seller in Pre-Foreclosure or looking for sound information on how to avoid foreclosure, please contact me for Short Sale information that will assist you in making an informed decision. I cannot and will not guarantee to prevent a foreclosure sale.

If you are looking to buy Distressed Properties or wanting to discuss your options in Selling a Distressed Home. please contact me for Short Sale help.

Let me help you, as your Short Sale real estate Agent and Broker Specialist, with your Distressed Property Search and provide you with a list of the Short Sale and Foreclosure properties that meet your search criteria.

I can also help you with buying Foreclosure Homes, Bank Owned homes, Real Estate Owned (REO) and bank foreclosures for sale by providing you with real estate foreclosure listings of foreclosed properties.

Short Sale homes are often homes in foreclosure and may already be involved in the foreclosure short sale process.

Short Sale Buyer and Seller assistance offered for all pre-foreclosure homes and properties located in Snohomish County including: Arlington, Bothell, Brier, Edmonds, Everett, Granite Falls, Lake Stevens, Lynnwood, Marysville, Mill Creek, Monroe, Mountlake Terrace, Mukilteo, Snohomish, Stanwood, Sultan & Woodway.

We also offers Short Sale assistance in King County, Washington including: Auburn, Bellevue, Black Diamond, Bothell, Burien, Carnation, Clyde Hill, Duvall, Enumclaw, Federal Way, Issaquah, Kenmore, Kent, Kirkland, Lake Forest Park, Maple Valley, Medina, Mercer Island, Newcastle, North Bend, Redmond, Renton, Sammamish, Seattle, Shoreline, Snoqualmie, Vashon Island, West Seattle & Woodinville. King County Washington Short Sale homes.

FREE Home Value Estimate

FREE Home Value Estimate!

The FREE house value “estimate”, real estate home market value calculator, that is provided by many competitor sites, search Tax Records to get information in order to check property value on your home and the selling prices of comparable property, to find home value and calculate estimated fair sale price.

This data may or may not be current or accurate such as; square footage, number of bedrooms and bathrooms and most important – any upgrades or remodeling that may have been completed on your real estate.

My site does not provide for an “OnLine” market value calculator. Please take a moment to read the following information to find out why!

Because of those inaccuracies, a high percentage of the house market value reports, that the public receives from home value online sources, may not represent true resale market value of your home or property and may be way under or way over priced.

Most online free home value estimate finders do not take into account current market conditions, good or bad, for real estate values, in helping to determine an estimate of home value or home equity for a sound descision by you on selling or refinancing your home.

I believe in personally visiting your home to obtain first hand knowledge of the features your house has to offer.

By performing this FREE house value report as a professional service, at no cost or obligation, I will provide you with a more accurate real estate value.

If you may be interested in having a real estate professional, Bob Chapman, a Windermere real estate broker and agent and Realtor®, provide you with a current FREE property value estimate, even if it is just to find out your home equity –

Please send me the completed information request below, for a FREE home value estimate, via e-mail or call me directly at the phone number listed in the lower left of this page.

You may not want to sell or list your home or land right now – That is OK! I want to build relationships for the future.

IF YOU DO NOT KNOW A REALTOR® THAT YOU WOULD USE OR RECOMMEND – I WOULD LIKE TO BE THAT REALTOR®!

Please take a moment to complete and submit the Contact Form

Monroe Washington School District

Monroe Washington School District

These links are provided to assist you in gathering detailed information about the area or region where you may be thinking of buying a home.

Monroe Washington Public School District

District Offices – Monroe School District – Monroe Washington:

Monroe School District
200 E. Fremont
Monroe, WA  98272
Office Phone: (360) 804-2500
Website:
Monroe School District

Monroe School District – High School:

Monroe High School
17001 Tester Rd.
Monroe, WA  98272
Office Phone: (360) 804-4500
Website:
Monroe High School

Monroe School District – Middle Schools:

Hidden River Middle School
9224 Paradise Lake Rd.
Snohomish, WA 98296
Office Phone: (360) 804-4100
Website:
Hidden River Middle School

Monroe Middle School
351 Short Columbia St.
Monroe, WA 98272
Office Phone: (360) 804-4200
Website:
Monroe Middle School

Park Place Middle School
1408 West Main St.
Monroe, WA 98272
Office Phone: (360) 804-4300
Website:
Park Place Middle School

Monroe School District – Elementary Schools:

Chain Lake Elementary School
12125 Chain Lake Road
Snohomish, WA 98290
Office Phone: (360) 804-3100
Website:
Chain Lake Elementary School

Frank Wagner Elementary School
115 Dickinson Road
Monroe, WA 98272
Office Phone: (360) 804-3300
Website:
Frank Wagner Elementary School

Maltby Elementary School
9700 – 212th Street S.E.
Snohomish, Washington 98296
Office Phone: (360) 804-3500
Website:
Maltby Elementary School

Salem Woods Elementary School
12802 Wagner Rd
Monroe, WA 98272
Office Phone: (360) 804-3600
Website:
Salem Woods Elementary School

Monroe School District – Alternative School / K-12:

Sky Valley Education Center
17072 Tye St, Building B
Monroe, WA 98272
Office Phone: (360) 804-2700
Website:
Sky Valley Education Center

Hot Western Market

Buyers & Brokers get Creative to Compete in a Hot Western Market

Housing around Western Washington is on an upward trajectory, but inadequate inventory “in the right prices and locations” makes for a “very difficult market for purchasers and brokers,” according to an executive with one multi-office real estate company.

New figures from Northwest Multiple Listing Service show inventory increased in May compared to a year ago, but brokers say competition is keen. “Multiple offers and escalation clauses occur on a regular basis for properties that are extremely well priced and in great condition,” reports Dick Beeson, principal managing broker at a real estate brokerage franchise in Tacoma, Washington.

Mike Gain, a former chairman of the Northwest MLS board of directors, also commented on the bidding wars. “We are experiencing more multiple offers than I have experienced in my 35 years of practicing real estate in this marketplace,” stated Gain, the president and CEO of a real estate brokerage in Seattle, WA. “This is a very difficult market for purchasers, our agents and brokers. If we had inventory to handle the demand our pending and sold numbers would be greatly increased,” he believes, adding, “We desperately need good quality inventory.”

Last month’s pending sales topped the 10,000 mark for the first time in twelve months. The number of mutually accepted offers totaled 10,373, outgaining a year ago by 328 transactions for an increase of almost 3.3 percent. Last month’s total was the highest volume of pending sales since June 2006 when brokers tallied 10,448 transactions.

With demand outpacing supply in many parts of the region, brokers are noticing more creativity among competing parties. “Offer review deadlines have become pretty commonplace in this market, as have pre-inspections,” said OB Jacobi, president of Windermere Real Estate. He said some agents and buyers are getting even more aggressive by submitting their offer prior to the deadline.

Jacobi said there’s also an increase in the number of cash buyers, and buyers willing to waive their financing contingency, “making it even more difficult for the vast majority who don’t have this option.” With ongoing competition likely to continue, Jacobi expects agents and buyers to be “increasingly creative until the market becomes more balanced, which probably isn’t going to happen any time soon.”

MLS figures show months of inventory slipped to 3.33 from April’s figure of 3.46. In King County, supply stayed about even with April (1.78 months of inventory in May versus l.74 months in April).  Snohomish slipped from 2.47 months to 2.37. Four to six months is considered to be a balanced market.

Fewer sales closed last month compared to a year ago (down 2.2 percent), but prices increased. Compared to April, the number of completed sales in May jumped by 997 transactions for a gain of 16.1 percent. Brokers reported 7,187 closed sales of single family homes and condominiums last month with a median selling price of $285,000. That sales price reflects a 3.6 percent increase from the year-ago figure of $275,000.

For single family homes (excluding condos) the area-wide price rose 4.2 percent, increasing from $285,000 to $297,000. Condo prices jumped nearly 15% from the year-ago price of $200,000 to last month’s price of $229,900.

Brokers added 12,605 new listings to inventory during May, about 10 percent more than a year ago. At month end, the selection across the 21 counties served by Northwest MLS included 23,917 active listings. That total reflects a 9 percent increase from twelve months ago when buyers could choose from 21,943 homes and condominiums.

In several counties served by Northwest MLS distressed properties make up about 20 percent of the activity, according to an analysis by Beeson. His figures show one of every five homes that sold in Pierce, Thurston, Kitsap and Cowlitz counties was distressed, while in King County such properties accounted for only around 10 percent of the sales.

Beeson, a board member at Northwest MLS, expects distressed properties will continue to be an integral part of the market. As median prices continue to rise around Puget Sound, he believes the inventory of short sales will be reduced.

“The inventory of bank owned properties holds steady at twice the number of short sales,” Beeson reported, adding, “This probably will not change in the foreseeable future as banks have warehoused much of their ‘shadow inventory’ and are slowly bringing it on the market so as not to glut the market, and to help keep pricing levels up, which benefits them as well.”

Another MLS director, George Moorhead, characterized the market as “sluggish” in areas. Buyers are about “45 days later to the starting line” compared to patterns of the past three years. “Some areas are still doing extremely well and still seeing multiple offers, but not on the whole,” observed Moorhead, the managing broker at a real estate office in Bothell, Washington. Overall, he believes “the market is righting itself slowly and becoming healthy and sustainable.”

Snohomish anomaly

Inventory in Snohomish County jumped 43 percent compared to a year ago. Asked about the surge, Moorhead attributed much of it to an influx of new construction. The MLS database shows 406 of 2,206 listings of single family homes are classified as new construction. That’s about twice the number from a year ago. “The price points are some of the best in the market areas for size, style and overall location,” Moorhead stated.

Kitsap: Different segments tell different tale

Like many areas, Kitsap County has several submarkets. “Using a countywide statistic in this market is much like judging a book by its cover – you shouldn’t,” suggests MLS director Frank Wilson, the branch managing broker at a brokerage in Poulsbo, WA. “Each part of Kitsap is its own chapter with a story to tell,” he explained.

Overall, Kitsap’s inventory is holding at about a four-month supply, “just on the sellers’ side of neutral,” Wilson said. Traffic at open houses is up, and more listings are drawing multiple offers and offers with escalation clauses, he added.

Prices in Kitsap are down about 4 percent, but of 19 areas the Northwest MLS tracks in that county, 10 had year-over-year price gains, and nine map areas had declines. The sharpest price increase occurred in East Central Kitsap where values jumped 20 percent from twelve months ago.

Rosy outlook

Despite inventory shortages, Northwest MLS brokers were mostly upbeat about short-term activity:

  • “Locally, the summer selling season can be the busiest time of the year. This year with the lack of inventory it is probably the best market sellers will ever experience,” suggested Mike Gain.
  • “We anticipate the market remaining at modest levels of growth [in Snohomish County] and inventory levels continuing in a healthy range of seven to eight months instead of two to three months.”  — George Moorhead.
  • “In almost every county, inventory increases since last year have brought a sigh of relief from many buyers . . . If interest rates continue to hold under 5 percent and the unemployment picture continues to improve or remain the same, we should see a moderate to strong market throughout the balance of 2014.” – Dick Beeson.

MLS spokespeople encouraged potential sellers to consider listing now. “Now is a great time for move up sellers/buyers who can sell their homes quickly today and secure another at today’s prices and today’s low interest rates,” Gain suggested. He also noted the majority of homeowners have experienced significant gains in their equity over the past two years. “Sellers who took their homes off the market in the down market can now get the prices they were wanting when they made their decisions to rent them. The prices are back and the homes will sell,” he emphasized.

Wilson urged sellers to make sure their home is exposed “to as many real estate brokers from as many real estate firms as possible to ensure all buyers in your area and price point have a chance to make an offer on your home.”

Buyers also need to be prepared, Wilson suggested. In addition to being fully approved for financing a mortgage before making an offer, buyers need to be mindful that their offer “may not be the only one being tendered to a seller” and be poised to respond.