Selling your house in this market is not a laughing matter, but just like a comedian, you need to know your audience to have a successful show (or - in this case - successful sale). Mortgage guidelines have changed significantly since the housing bubble came and went, and sellers need to know who is out there buying and where the money is coming from so that they can be competitive and get their properties sold.

 Below are a few fictional scenarios that represent some different types of buyers that we see in our area. All of these are assuming a straight 5% interest rate, a 30 year loan, and equal footing for all other conceivable variables. Obviously the numbers will vary for every individual situation - but this illustrates some general parameters regarding possible levels of purchasing power available to buyers in Anacortes.

 Keep in mind as you look at the data that the median annual household income in Anacortes according to the City of Anacortes website is currently just over $52,000 and, according to the Northwest MLS, the median average list price for homes in Anacortes as of this posting is $398,500. The median price for sold properties since March, 2009 in Anacortes is $296,000.

 The information below is what one excellent local mortgage banker recommended for each of these fictional buyers to maximize their purchasing power. Again, these numbers are general - individual circumstances can change things dramatically.

 Buyer A:
Annual Gross Income: $45,000
Monthly Fixed Expenses: $500
Savings: $5000
Credit History: Average
Suggested house price: $162,000
Notes: USDA Loan, zero down, use savings for closing costs.

 Buyer B:
Annual Gross Income: $65,000
Monthly Fixed Expenses: $1000
Savings: $50,000
Credit History: Poor
Suggested house price: $240,000
Notes: FHA loan, $50K down, seller pays closing costs.

Buyer C:
Annual Gross Income: $100,000
Monthly Fixed Expenses: $1500
Savings: $0
Credit History: Average
Suggested house price: $315,000
Notes: FHA loan, needs gift funds of 3.5%.

 Buyer D:
Annual Gross Income: $140,000
Monthly Fixed Expenses: $1500
Savings: $50,000
Credit History: Excellent
Suggested house price: $522,000
Notes: Seller pays closing costs, buyer pays mortgage insurance.

Buyer E:
Annual Gross Income: $200,000
Monthly fixed expenses: $2500
Savings: $200,000
Credit History: Excellent
Suggested house price: $810,000
Notes: Conventional financing, $190,000 down, $10,000 for closing costs.

Here’s a look at the week upcoming in Anacortes. If you need more information about anything you see here, please call or email me and I’ll hook you up! If you have an event you’d like to see on this schedule in the future, please send me an email at meredith@windermere.com. Enjoy your weekend!

Thursday September 17
Brown Lantern - Open Jam, 9pm
Johnny Picassos - Open Mic, 7-9pm

Friday September 18
Star Bar - Savage Jazz Quartet, 7pm

Saturday September 19
Brown Lantern - Red Jacket Mine, 9pm
Rockfish - Chris Stevens and the Surf Monkeys, 9pm Read More »

I don’t have to tell you that there are a lot of factors to be considered when determining property values - some scientific, (probablities, sales histories, market averages, etc.) and some emotional (how motivated is the seller, can that one-in-a-million buyer live without the property, etc.).

One thing is certain, buyers need money to buy property, and most of that money comes in the form of a loan of some sort. Very few of us have the cash needed to buy property outright - so we need help. Usually that’s from a bank or perhaps the seller of the property. With most loans, even with seller financing, an appraisal is required at some point in the purchase and sale transaction. When an appraisal is required, it is generally the case that the property must appraise for the agreed upon price or there is no deal. That said, it is critical for potential property sellers to understand what guidelines the appraisers are operating under at any given time in the marketplace.

Typically, appraisers use similar, recently sold properties as comparables when they are determining an appraised value. You are correct if you assume that in this market, it is challenging for appraisers to find a lot of recently sold similar properties. There just aren’t that many. What they resort to then, is looking at properties that may have sold quite some time ago, or properties that aren’t as similar as they would be in a regular market. When appraisers have to get creative with comparables, they are required to make adjustments to account for the differences in properties.

In a recent conversation with a local appraiser whom I consider to be one of the best, I was informed that one of the calculations being used to equalize property values is a one-half to two percent PER MONTH decline in value over the past 24 months. I knew that math class I took spring quarter would come in handy - you gotta do the logarithm to figure that out! Here’s the equation:

C=P(2.7)^-it 

C= current value
P=past value
i=percent decline
t=number of months

If an appraiser felt your house was worth $500,000 24 months ago, and you are in an area or property type that declined 1% per month, the equation to calculate your present value would look something like this:

C=$500,000(2.7)^-.01(24)
C =$393,951. (The 2.7 is a constant roughly equaling the value of natural logarithm e.)

I was told that in our market, condominiums and vacant land would most likely be at the higher end of the percentage spectrum, and conventional single family residences would be at the lower end.

Now, you might not care what an appraiser thinks your property is worth, and not all properties are going to fit into neat equations and probabilities, but it is a good thing to know as much as you can about what might factor into a buyers ability to buy your property. It’s just one more way a seller can get the competitive edge in todays market.  

A pplications for mortgages surged 17 percent last week as lower interest rates spurred demand for both refinance and purchase loans, the Mortgage Bankers Association said in releasing the results of its Weekly Mortgage Applications Survey.

Applications for refinancings were up 22.5 percent for the week ending Sept. 4, the largest increase since March, while an index measuring applications for purchase loans was up 9.5 percent from a week earlier. Both indexes are seasonally adjusted.

Requests for refinancings made up 59.8 percent of applications, up from 56.5 percent the week before, and applications for adjustable-rate mortgage (ARM) loans accounted for 5.8 percent of applications, up from 5.6 percent.

Read More »

« 1 comment so far. Share your thoughts... »

B enefiting Museum of Northwest Art and La Conner Quilt and Textile Museum. Featuring quality antiques, collectives, art, quilts, dishes, interior furnishings, glassware, jewelry, rugs, silverware, vintage clothing and much more.  The La Conner Civic Garden Club is located at 622 South Second Street in La Conner, WA.  Private Pre-Sale Party: Friday, September 11^th starts at 5:30, tickets are $25 each

Public Sale Hours: Saturday, September 12^th 9am-4pm and Sunday, September 13^th 10am-4pm

 For info, to donate items, buy Pre-Sale tickets, or volunteer, email: marketing@museumofnwart.org or call 360/466 4446, ext 109 or 360-466 4288

« 0 comments so far. Share your thoughts... »

F riday Harbor, WA - 27 August 2009 - Gary Franklin, long-time Island resident and real estate broker, is joining forces with the Scott family of Anacortes and Mount Vernon to buy the San Juan Island Windermere Real Estate office in Friday Harbor. John Dunning, who owns the Windermere office on Orcas Island, is the seller.

Franklin will continue as managing broker, the position he’s held for several years.  The Scotts own and operate Windermere offices in Anacortes and Mount Vernon.  ”The stars aligned just perfectly” said Franklin. “John Dunning was ready to focus on his new Vacation Rentals business and the Orcas Windermere office, the Scotts were looking for new opportunities, and I have wanted an ownership role for several years. ”

Jim and Mary Scott opened a real estate office in Mount Vernon in 1977, and have been Windermere owners since 1989. Sons Josh and Nate manage the Mount Vernon office and the Anacortes office respectively, and daughter Megan O’Bryan is Benefits Manager and an active sales agent. “We are delighted to join Gary in the Friday Harbor office,” said Jim Scott. “Over the years, Gary and John have worked hard to build a very successful office. The agents are experts in the island’s real estate market, and are extremely knowledgeable when it comes to the complex issues that affect buying and selling island real estate. Additionally, they’re all wonderful people who are committed to the island community-which is an important part of the Windermere, and our family’s, philosophy.

Says Franklin, “As an island resident, I’m excited to continue my role as a local business leader, and to know that our agents will continue to have strong, experienced leadership behind them. This is truly a win-win situation for all of us.”

« 0 comments so far. Share your thoughts... »

Here’s a look at the week upcoming in Anacortes. If you need more information about anything you see here, please call or email me and I’ll hook you up! If you have an event you’d like to see on this schedule in the future, please send me an email at meredith@windermere.com. Enjoy your weekend!

Thursday August 27
Brown Lantern - Open Jam, 9pm
Johnny Picassos - Open Mic, 7-9pm

Friday August 28
Port Marina Boat Launch - outdoor movie Madagascar II, dusk
Rockfish - Deadwood Revival, 9pm; Star Bar - Fidalgo Swing, 7pm
Department of Safety - Summer AIR Mark Tallowin Music and Art, 7pm

Saturday August 29
Rockfish - Mike Mulder, 9pm
Brown Lantern - SloMo Erotic, 9pm
Star Bar - Howlin’ Lane and the Angels of Sin Read More »