Real Estate Weekly January 3, 2020

INSIDE

This Issue

Q&A

Ask Our Broker PAGE 4

Contingencies can spell trouble for a home seller in a hot market PAGE 6

SPREAD YOUR SNOWBIRD WINGS page 7

CLASSIFIEDS page 7

Jan 3 - 9, 2020

RE-Weekly.com

INSIDE

TABLE OF CONTENTS

PAGE

7

Q&A

Ask Our Broker.......................................................................P4

CONTINGENCIES CAN SPELL TROUBLE FOR A HOME SELLER IN A HOT MARKET ...................P6 SPREAD YOUR SNOWBIRD WINGS......................P7 CLASSIFIEDS......................................................................P7

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1922162 1697651

We have it all!

Bar and counter stools, marble coasters, mud rugs, sofas and love seats, kitchen chairs, coffee and end tables, benches, bookcases, desks, beds and so much more!

To advertise in RE-Weekly or other Skagit Publishing publications, Call: 360.416.2180 or Email: ads@skagitads.com ©2020 by Skagit Publishing | All rights reserved.

All real estate advertised in Real Estate Weekly is subject to the Federal Fair Housing Act, which makes it illegal to advertise “any preference, limitation, or discrimination because of race, color, religion, sex, handicap, familial status, or national origin, or intention to make any such preference, limitation or discrimination.” We will not knowingly accept any advertising which is in violation of the law. All persons are hereby informed that

all dwellings advertised are available on an equal opportunity basis.

For further information call HUD Toll Free at 1-800-669-9777.

All Houses subject to prior changes without notice. Neither advertisers nor Skagit Publishing are responsible for any errors in the ad copy.

Skagit Publishing reserves the right to refuse any advertising, which we deem unsuitable for our

publication.

Unless otherwise noted, all photographs, artwork and ad designs printed are the sole property of Skagit Publishing and may not be duplicated or reprinted without express written permission.

Skagit Publishing is not responsible for typographical or production errors or the accuracy of information provided by advertisers.

BURLINGTON

320 S Burlington Blvd Burlington, WA 98233 (360) 755-9494

Territory NW

www.SkagitValleyRealEstate.com

cE PRI NEW

$87,000

Call ron, 333-1045

bellingham

$329,000

Sedro-Woolley

$249,900

Own your own piece of paradise. Terrific opportunity if you love wild spaces and want a slice of heaven to build on. Property like this does not come up for sale very often! Two potential building sites on your own private lake.

MLS #1496104

Call elizabeth, 708-8800

roCkport

Own a BRAND NEW HOME ON 20 ACREAGE! Get out of the hustle & bustle, enjoy the peace & serenity of the Cascades. This 3 bd, 2 ba + office, open layout w/tasteful finishes home also has a 24 x 36 garage/shop & an additional second unfinished 728 sq. ft. home with its own well & septic. MLS #1501526

Call mike, 540-1341

Call elizabeth, 708-8800

2

Charlie & Jeannie Boon 708-9645

Jim Stransky 708-1681

Lisa Boon Meyer 420-6608

Kirk Campbell 770-7470

$250,000

Call Charlie, 708-1415 or Jeannie, 708-9645

$449,900

Gorgeous home on large, bright corner lot. This home features tons of natural light, an open floor plan that is functional & beautiful. Features are vaulted ceilings, skylights, kitchen with numerous cabinets, a deep pantry. 3 BD’s, 1 3/4 Baths, large deck, 2 car garage w/ overhead loft. All of this comes with everything that Sudden Valley has to offer MLS #1531291

Wilma Louia Designated Broker/Owner 661-1631

mount Vernon

Beautiful sweeping views of the sound and the valley below from this 1 acre lot in Saratoga Passage Development! Enjoy time spent watching the valley activities unfold beneath you. Come and see for yourself the site of your new home. MLS #1457782

Ron Van Pelt 333-1045

Elizabeth Detillion 708-8800

RE-Weekly.com

Ivana Wood 770-3550

Mike Welling 540-1341

Debbie Benjamin 708-8780

Kati Shannon 391-1203

Traci Erickson Property Manager 755-5555

January 3, 2020

1967807

Sedro-Woolley

Level & wooded 5 acre tract with some marketable timber. Wetland delineation complete, Septic design in for approval. History of good wells in the neighborhood. 15 minutes from Bellingham or Burlington. Convenience to nearby towns but still living rural. MLS #1479187

FEATURED HomE FRom covER: 4628 Parkview Lane eagLemont

visit re-weekly.com to easily search for local real estate listings!

Skagit Tradition Realty 3780 E. college Way mount vernon, WA 360-424-0300 www.skagittraditionrealty.com

Elva HuntEr (360) 202-3086

Brand new home in sought after Eaglemont Golf Course Community! Luxury living in this custom 3,315 sq.ft. home, light and bright 4 bedroom 3 1/2 bath. Lg kitchen w/SS appliances, granite counters & island.

Greatroomw/gasfireplace,deckoverlooking nature. Main floor living w/master & bath w/jetted tub, shower & walk-in closet, utility room. Upstairs w/ 2nd master & bath + Additional SF downstairs ready to complete, AC & Tankless water heater.

Situated on a quiet peaceful street!

MLS# 14405852

easy to use tools & the most up-to-date information for finding local real estate 360.757.6013 800.869.7084

$689,000

Brown McMillen

w w w. b r o w n m c m i l l e n . c o m • 235 W. Rio Vista Avenue, Burlington

Partner

G

DIN

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SA

Spacious 1,899 SF Rambler with 3 bedrooms plus den, situated on a very large lot that has the potential to be subdivided. The attached garage is 820 SF & has a nice large workshop, plus covered deck off rear of home. $462,500 #1542624

N PE

WISHING YOU ALL A

Montreaux 55+...3BD/2.5BA, 2253 SF home w/master on main. Beautiful kitchen, SS appliances included, great rm w/gas frpl., dining rm leads to covered patio & fenced bkyd. Two car garage, fully landscaped, quiet neighborhood. $465,000 #1549870

G

DIN

Well-cared for home located in a quiet, well-established Burlington neighborhood. This 4BD/1.75BA tri-level is ready & waiting for updating.

Extra bonus room, spacious yard, storage shed, & 2 car garage! Great opportunity for someone! $340,000 #1545705 Yvonne Brown Galen Kindred Holly Hilts Jeff Ingman

January 3, 2020

840-4375 770-7083 661-5538 202-2859

Nookachamp Hills subdivision located in a beautiful country setting. We have ONLY 8 lots available for sale. All lots have public sewer, water, and natural gas available to the lots. Lovely pond and walking trails for you to enjoy. Call us today for details!

Shelah Inman Jodi Dynes Tim Reichert Ron Wortham

661-0145 333-7783 391-5587 661-1500

Mary Jo Reitsma Travis Lohman Tod LeHecka Jan Scally

RE-Weekly.com

770-6013 661-4533 333-1032 421-5160

Dale Owenby Dana Holmes Katie Hilsinger

913-8662 770-6716 391-3796

1966294

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SA

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Sandi riley y 770-8670

949 CHESTNUT LOOP, ‘’MONTREAUX’’ MT. VERNON

$518,900

808 BURLINGAME ROAD, MT. VERNON

$248,900

!

ED IST TL JUS

+) (55

CALL SANDI RILEY 360-770-8670

CALL SANDI RILEY 360-770-8670 *LOVELY 55+ COMMUNITY CLOSE TO EAGLEMONT GOLF COURSE *UPGRADED INSIDE/OUT, LIKE ‘’NEW’’ CONDITION 3 BEDROOM, 2 BATH BEAUTY *GAS HEAT, A/C, COZY GAS FPL., HUGE FINISHED 3 CAR GARAGE, GORGEOUS!!

8989 PRESSENTIN DRIVE, CONCRETE

$319,500

YOUR HOME FEATURED HERE! CALL FOR A CURRENT ‘’MARKET APPRAISAL’’ SANDI RILEY 360-770-8670 3100 ROSEWOOD STREET, MT. VERNON

$299,000

DING

*2 BEDROOM, 1 BATH RAMBLER W/WOOD LAMINATE IN LARGE LIVING/DINING ROOM *GAS STOVE, ATTRACTIVE BRICK FIREPLACE, LG. ‘’SHY’’ 2000 S.F. FIXER OUTBUILDING, ‘’AS IS’’ *LOCATION LOCATION LOCATION, ‘’ALMOST’’ 1 ACRE, LOADED W/POTENTIAL! 9080 E. PRESSENTIN DRIVE, CONCRETE

CALL SANDI RILEY 360-770-8670

CALL NORA MAZONSON 360-739-4335

CALL SANDI RILEY 360-770-8670

*VERY NICE 3 BEDROOM, 2.5 BATH AFFORDABLE BEAUTY *LARGE COVERED PATIO, FULLY FENCED EASY CARE YARD *GREAT LOCATION NEAR SCHOOLS & SERVICES + COLLEGE!

*2+ BEDROOMS, 2 BATHS, UPDATED INTERIOR, INC. ALL APPLIANCES *DEN/OFFICE, LOVELY WOOD LAMINATE FLOORING *HUGE 2 CAR GARAGE W/SHOP, PARK LIKE W/TALL CEDARS!

3314 ROCKEFELLER AVE, EVERETT

DING

$448,900

SOLD

PEN

CALL SANDI RILEY 360-770-8670

CALL SANDI RILEY 360-770-8670 *QUIET CUL DE SAC, DESIRABLE SEDRO WOOLLEY NEIGHBORHOOD, CLOSE TO SCHOOL & SERVICES *3 BEDROOMS, 2 BATHS, GAS HEAT, VAULTED CEILINGS *DOUBLE GARAGE, LARGE DECK, GREAT LOCATION!!

45%

PEN

*’’TIMBERLAND’’ BUILT HOME W/POTENTIAL ‘’IN LAW’’ APARTMENT DOWN *TOTAL OF 3 BEDROOMS, 3 BATHS + FAMILY ROOM *CREEK FRONTAGE, VIEW DECK & GAZEBO, CLOSE TO SKAGIT RIVER A BONUS! $358,900

Real Estate Stat

$220,000

DING

PEN

961 SUMMER MEADOWS COURT, SEDRO WOOLLEY

STAT

*UPDATED CUSTOM RAMBLER W/PARTIAL BASEMENT, GAS HEAT *3 BEDROOMS, 2 BATHS, NEARLY 1800 SQ. FT. *HUGE 2 CAR GARAGE, FENCED YARD, CLOSE TO SHOPPING & SERVICES

23734 RUTH LANE ‘’CONWAY’’ MT. VERNON

$448,900

The percentage of millennial mortgage borrowers in 2019.

SOLD

Sourc: Realtor.com CTW Features

CALL SANDI RILEY 360-770-8670 *PARK LIKE 1.27 ACRES, NICE SHOP, DEAD END ROAD *3 BEDROOM, 2 BATH RAMBLER W/LARGE FAMILY ROOM *DESIRABLE ‘’CONWAY SCHOOL’’, S. COUNTY FOR E-Z COMMUTE & I-5 ACCESS! 1980587

Cathy West Oak Harbor Escrow Manager/LPO 360.679.5055

Christa Canell Freeland Escrow Manager/LPO 360.331.4838

Kari Pittenridge Anacortes Escrow Manager/LPO 360.299.0565

Holly Mathers Island County Title Manager 360.675.2246

LAND TITLE AND ESCROW W 4

525 East College Way, Suite J Mount Vernon, WA 98273

Brandi Jensen Stanwood Escrow Manager/LPO 360.629.9737

Katey Von Hagel Marketing Representative 360.707.1076

Service you deserve with people you trust Visit any of our 5 locations in Oak Harbor, Burlington, Freeland, Stanwood and Anacortes

Ltco.com

NORTH PUGET SOUND ASSOCIATION of REALTORS®

Shelley Miner Burlington Escrow Manager/LPO 360.707.2312

Eldon Brown Skagit County Manager 360.707.2158

Pictured: Marty Lehr (Chicago Title), Morgan Huntsman & Mike Gubrud (Farmers Ins Agency)

Tel. (360) 416-4902

www.npsar.realtor

In just 1 year, Morgan has embraced what it means to be a REALTOR®. She has joined an Association committee, has earned the Military Relocation Professional (MRP), REBAC, and ABR Designations. We are proud to have Morgan as part of our Realtor family!

Congratulations!

Mission Statement: The Nor th Puget Sound Association of Realtor s advocates for Realtor s and their clients, provides services to help members prosper, and promotes the protection of property rights.

1898385

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January 3, 2020

January 3, 2020

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5

A long lending process QUESTION:

I was a banker for 33 years (middle management) and 11 years as a tax collector. I’ve been a homeowner for over 32 years. Recently, I was buying a new house for $615,000. I wanted to borrow $125,000 — the difference I was paying in cash.

The lender had my net worth at $2 million with my total liabilities at $210,000 (the home I had for 32+ years). No car payments etc., verified government pensions, Social Security, annuities of $7,000 per month plus $80,000 in savings and another $280,000 in 401Ks. Our credit scores include mine 795, my wife’s 803.

Even with all this and with over 70 percent down, the hoop-jumping was so difficult I stopped the process and just paid the total in cash. So if difficult for me, can you imagine how hard it must be for someone with a 700 score credit with 20 percent down?

Contingencies can spell trouble for a home seller in a hot market 6

ANSWER:

You are in the fortunate position of having choices and thus not dependent on lenders for financing.

That said, why is getting a mortgage so difficult for someone in your situation?

Lenders are required to verify at the time of application that borrowers can repay their mortgage.

If you borrow $125,000 at 3.65 percent over 30 years, the monthly payment for principal and interest is $571.82.

Because you have little or no required monthly payments for non-household costs, your debt-toincome (DTI) ratio is nowhere near 43 percent, the limit for many programs. The loan-to-value ratio (LTV) is 20.3 percent.

The 2006 mortgage crash was an awful event that led to millions of foreclosures. Lending laws were changed to make the system as risk-free as possible. One result is the teeny, tiny foreclosure

Sellers love to hear a buyer is preparing an offer for them. That happiness can disappear if they spot “contingencies” in the purchase contract.

The National Association of Realtors {NAR} reports 74 percent of purchase contracts contained con-

Q&A

ASK OUR BROKER

By Peter G. Miller

levels we see today. A second result is intense investor interest. Cash is flooding the mortgage marketplace because there are good returns and little risk, which is one reason for today’s low rates.

But maybe we have made the system too strict. The Urban Institute argues that “from 2009 to 2014, lenders failed to make about 5.2 million mortgages thanks to overly tight credit. In total, lenders would have issued 6.3 million additional mortgages between 2009 and 2015 if lending standards had been more reasonable.”

It now seems we’re moving in the other direction.

Mortgages with high DTI ratios are increasingly common. HUD reported that in FY 2018, almost a quarter of all loans insured through the FHA had DTI ratios above 50 percent. More and more loans no longer require formal appraisals.

Lenders claim they can approve mortgages in minutes. Yours should not have taken that long.

Email peter@ctwfeatures.com.

tingencies in summer of 2019.

Contingencies in a contract stipulate something must happen for a sale to go through, like a home inspection that doesn’t reveal unfixable flaws.

For sellers, probably the most dreaded contingency is when the buyer stipulates he must sell his own home before the purchase goes through. “The seller is essentially trading the sale of their house for another which they can’t control,” says Jeremy Browne of TTR Sotheby’s International, Arlington, Virginia.

In areas where swarms of buyers are competing for a limited number of homes, contingencies of any type “are off the table,” says Paige Schulte of Windermere Professional Partners, Tacoma, Washington.

But with NAR recently labeling only three states as having “very strong” buyer traffic and most with “stable” or “strong” activity, contingencies are common.

Sellers can at least counter with a

RE-Weekly.com

“kick-out” or “bump” clause in response to the dreaded home sale request.

Basically, a kick-out provision lets w the seller accept a contract while y still continuing to market his prop- a erty, and “bumping” the first buyer r out if another offer comes in within s a stipulated number of days. The p t first buyer can’t waive his sale contingency, explains Scott Royal s Smith, and Austin, Texas real es- o o tate attorney and investor.

N Browne says he would advise a t seller to take a home sale proviR sion and counter with a kick-out if a t home has been on the market for i longer than what similar properties m have taken to sell and if the buyer t offers other enticements, like offer- b t ing to pay full price.

While there’s no sure forecast of p a whether buyers will be out in force B in 2020 –NAR says interest rate i cuts lure buyers, but a slowing s economy is a fear --- many areas M could be stable, giving both buyers t r and sellers a chance to tussle.

O

January 3, 2020

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CLASSIFIEDS PUBLISHER'S NOTICE

Spread your snowbird wings

O

nly ones who fly south for the winter.

Snowbirds head to warmer climates this time of year, too, and take refuge in a second home or vacation residence they own out of state. And the perks can be plentiful: Sunny skies, balmy temps, and no worries about shoveling snow, scraping ice off the windshield or slipping on the sidewalk.

New research published by the National Association of Realtors (NAR) suggests that vacation homes are increasingly popular. The median sales price in vacation home counties jumped by 36 percent from 2013 to 2018, compared to a 31 percent jump for all existing and new homes sold.

But buying a second home isn’t ideal for everyone seeking sanctuary from Old Man Winter. The pros agree that plenty of research is required as well as a plan to January 3, 2020

vacation home counties was under $100,000 (although many of these are in colder winter locations).

But renting out your snowmaintain and monetize that costs to maintain that home bird refuge while you’re away adds another $18,000 to property when you’re not isn’t a failsafe strategy. your expenses. That adds around.

“An increasing number of “The life of a snowbird is the up to $30,000 coming out condo associations are proideal lifestyle. From October of your pocket a year,” notes hibiting Airbnb-like rentals, Kirsner. to April, snowbirds typically and some require a miniTo help defray your mortgage mum of 90-day rentals with live in a warmer, beautiful payment and related costs, prior association approval of location and then often fly you could rent out that sec- the renter,” cautions Charles north for the spring and ond home via Airbnb, Vrbo, summer to enjoy milder cliNilsen, national director of mates,” says Craig Kirsner, a or another short-term vaca- Private Client Lending for nationally recognized fiducia- tion rental service. Per Vrbo Boston Private, headquarry retirement planner based data, the average vacation tered in Boston. homeowner in Florida, for in Coconut Creek, Florida.

Also, tricky tax rules can example, can earn nearly But affording a second come into play. home isn’t easy. And it may $2,300 per booking, on av- “If you live during the warm not represent a great invest- erage, between August and months in a high-income tax November alone. ment. state like California or New Moreover, many people “Let’s say you buy a vacaYork and spend the cooler aren’t aware that some tion home for $300,000. months in a zero-income-tax You could have earned, say, second homes can be had location like Florida or Texas, a 4 percent return — around for less than expected. The you have to prove that you $12,000 annually — on that aforementioned NAR report spent at least 183 days $300,000 if you invested it reveals that the median in a primary residence in elsewhere. Assume that the price in the least expensive that zero-income-tax state

What to consider before buying a second home in a warmer climate

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or you’ll pay the higher tax state’s rates,” says Steven Jon Kaplan, CEO at New York City-based True Contrarian Investments, LLC. Dan Trumbower, a senior wealth advisor with Halpern Financial in Rockville, Maryland, says it’s hard to qualify as a worthy snowbird homeowner candidate, per his criteria.

“A good snowbird candidate is someone who can afford the cost in both the landscape view and portrait view,” he says. “Portrait view is how most people mistakenly make financial decisions. They say, ‘could I afford the monthly mortgage on a second property?

Sure—I have that amount available to spend every month.’ But you need to think about this decision in a big-picture landscape view.

How does adding hundreds of thousands of dollars of mortgage debt to your net

All rental and real estate for sale advertising in this newspaper is subject to the Fair Housing Act which makes it illegal to advertise any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin, or an intention, to make any such preference, limitation or discrimination Familial status includes children under the age of 18 living with parents or legal custodians, pregnant women and people securing custody of children under 18. This newspaper will not knowingly accept any advertising for the rental or sale of real estate which is in violation of the law. Our readers are hereby informed that all dwellings advertising in this newspaper are available on an equal opportunity basis.

To complain of discrimination call HUD at (206) 220-5170.

worth affect your overall financial picture? Would paying the mortgage on two properties tie up cash that could be invested in a more liquid asset?”

For these and other reasons, many experts, including Dror Poleg, author of “Rethinking Real Estate” (Palgrave Macmillan, 2019), believe it’s better to rent than own a vacation home.

“These days, it’s extremely easy to find, book, and check into a home anywhere in the U.S. for weeks or months at a time,” adds Poleg. “It also leaves snowbirds the option to invest their money based on purely financial considerations and not based on where they would like to live.”

10 - January 29, 2019

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