Real Estate Weekly: April 8, 2022

INSIDE

This Issue

FAREWELL, FOREVER HOMES EXPERTS. RECOMMEND CHOOSING A HOME THAT PRIORITIZES SHORT-TERM GOALS PAGE 5 OLD HOMES FOR YOUNG BUYERS PAGE 7

APRIL 8, 2022

INSIDE

TABLE OF CONTENTS

PAGE

5

Farewell, Forever Homes.

Experts recommend choosing a home that prioritizes short-term goals....................................P5 Q&A

Ask Our Broker.......................................................................P6

Old Homes for Young Buyers..................................P7

RE-Weekly To advertise in RE-Weekly or other Skagit Publishing publications, Call: 360.416.2180 or Email: ads@skagitads.com ©2022 by Skagit Publishing | All rights reserved.

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own the local real estate market expand your reach when you combine the power of our digital audience and premium print ads in the re weekly ask your multimedia account executive for details.

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April 8, 2022

STAT Real Estate Stat

801,000 The rough number of new home sales in the month of January 2022.

Source: National Association of Realtors

NORTH PUGET SOUND ASSOCIATION of REALTORS® 525 East College Way, Ste. J

Mount Vernon, WA 98273

360) 416-4902

www.npsar.realtor

Devastatingly effective wire fraud scams are becoming more and more common in real estate transactions. Sophisticated hackers are monitoring client and/or broker email accounts and waiting for a window to steal monies from clients.

The scammers convincingly impersonate the broker or escrow agent, and then send messages urging the clients to wire funds to fake accounts set up by the scammers. The clients are left with no recourse to recover the stolen funds.

Are you prepared to protect yourself?

Washington REALTORS® in cooperation with the NWMLS, the Department of Licensing, Department of Financial Institutions and the Office of the Insurance Commissioner have created several resources to educate our members and consumers about this widespread but preventable fraud.

 

Obtain the phone number of your real estate broker and your escrow agent at your first meeting.

Call the known phone number to speak directly with your broker or escrow officer to confirm wire instructions PRIOR to wiring.

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

April 8, 2022

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Now could be the time to sell a new home and earn a slice of the real estate pie.

Record-low interest rates is renewing interest in the housing market for many people.

“When sellers are interviewing real estate agents to market their homes, their primary focus is usually on the advertising that the agent will offer them,” says Jessica Goodbody of Weichert Realtors.

Let us help you meet your marketing goals by advertising your listings in Real Estate Weekly.

Call 360.416.2180 Today!

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RealEstate weekly In print and online goskagit.com ads@skagitads.com

w i t o g t C t n u

a o p b April 8, 2022

route of building a forever home from the ground up, there’s the dilemma of lumber shortages that are delaying the construction of homes for months at a time and making it more costly to build your home from scratch,” Famulener explains.

If you have your heart set on purchasing a forever home in today’s market, be sure you are financially ready to take the leap.

“As prices rise and inventory shrinks, the competition is fierce, and bidding wars are more common now than ever,” says Famulener.

Good candidates for claiming a forever home versus a shorter-term home include those who are childless, those confident in long-term job security, or those who can work from anywhere.

“Essentially, these folks are less likely to experience the kind of lifestyle changes that might necessitate finding a new home,” Orefice continues.

One alternative to seeking a forever home is to opt for the ability to work remotely “The idea of changing homes a move-up residence. Recent has increased—are all driving every few years is predicated polling of real estate agents forces in no longer investing partly on the prediction that by HomeLight finds that in forever homes. And due the housing market will only trade-up/move-up homes are to the Great Resignation, go up and interest rates will projected to be a huge trend where workers are voluntarily remain low, although that in 2022. leaving jobs, a lot of the traffic could change,” he says.

“Thirty-five percent of agents in the real estate market is Another reason why say trade-up homes are the due to consistent relocation purchasing a forever home type of inventory they expect for new jobs. In the long run, may not financially be in to increase the most this year,” investing so much money your best interests lately is Famulener adds. “Agents into a forever home, only to that a long-term residence is expect a wave of sellers in have to move, may not be typically more expensive. many markets to cash out beneficial financially,” adds “Your forever home may on their recent equity gains, Famulener. be on the market for an Martin Orefice, founder of extremely higher asking price which could free up some mid-level homes, although Rent To Own Labs, notes than it normally would be, first-time buyers are expected that the hot housing market making it out of budget. to purchase and renovate and low-interest rates are Plus, inventory continues smaller homes that they can encouraging people to move to shrink month-by-month. afford.” more frequently nowadays.

And, if you are taking the

Farewell, Forever Homes

Experts recommend choosing a home that prioritizes short-term goals

understood as working for you at every stage of your life.

When buyers are looking to s children, we were purchase or build a forever told stories about princes and princesses home, it’s usually a house they conjured up in their dreams— who lived happily ever after in their kingdoms, occupying both in terms of appearance and functionality,” says their castles over a lifetime Vanessa Famulener, president of peace and bliss. And for generations, it seems that was of HomeLight Homes in San Francisco. “The most the homeownership goal: Claim a dream home and rule important aspect of a forever that residence until at least the home is that you have no plans to sell it.” nest was emptied or perhaps Eric Maribojoc, an until life came to an end. accounting professor at But the times they are George Mason University a-changing, and the concept School of Business in Fairfax of the “forever home” is less County, Virginia, agrees popular today among many buyers, the pros agree. that forever homes have “A forever home can be traditionally been thought of

By Erik J. Martin

A

April 8, 2022

as permanent properties and highly valued among many purchasers.

“A forever home could apply to homebuyers intending to raise their children to adulthood or any home where residents intend to spend their retirement years and age in place,” says Maribojoc.

But within the last few years, the forever home has become frowned upon by many prospective buyers for a variety of reasons.

“Warmer winters, lower property taxes, being closer to family, or finally having the ability to travel and try something new—especially since the pandemic hit and

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Has the Pandemic Made FHA Loans More Attractive?

Question:

During the past year or so, several coworkers have bought their first homes. They all financed with FHA loans. Why do they use FHA mortgages, and has the pandemic made such financing more attractive?

Answer:

The FHA program was first established by the government in 1934. The purpose was to make home loans available to more buyers during the Great Depression. In effect, it was one of many steps undertaken during the Roosevelt Administration to re-start the economy.

HUD estimates that 44 million FHA-backed loans have been originated since the program began. While the pandemic has impacted just about everything and everyone, the FHA program has remained in place with little change in recent years. In fiscal 2021, according to HUD, almost 85% of all first-time buyers financed their home purchases through the FHA program.

The reason the FHA program is so popular with first-time buyers is that it offers financing with little down, liberal credit standards, and no prepayment penalty.

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The FHA program is an insurance plan. It promises to pay lenders in case borrowers default. With FHA-backed mortgages, borrowers can finance the purchase of a prime residence with just 3.5% down and credit scores as low as 580. This is much better than the 20% down that lenders would really like.

As is always the case with mortgage lending, higher credit scores mean lower interest rates.

While it may be true in theory that borrowers with less than 580 credit scores can get FHA loans, the reality is that few get such financing.

According to the FHA’s 2021 annual report, just 0.32% of all FHA-insured loans went to borrowers with scores between 500 and 579.

Not only are borrowers with really low scores unlikely to get lender approval, but when scores fall below 580, the FHA requires at least 10% down.

With FHA loans, borrowers pay a 1.75% upfront mortgage insurance premium (the upfront MIP) and a .85% annual premium (the annual MIP). The upfront MIP can be added to the loan amount, thus reducing the amount of cash needed to close the loan.

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Q&A

ASK OUR BROKER

By Peter G. Miller

The money collected from premiums goes into a reserve account called the Mutual Mortgage Insurance Fund. It’s the money from this reserve that’s used to pay lender claims if a borrower defaults.

The good news is that there haven’t been many lender claims against the program in recent years. The FHA finished fiscal 2021, a period that ended September 30th, backing loans worth more than $1.2 trillion. Reserves equaled 8.03% of this amount, or more than $96 billion. The FHA is required to have reserves equal to 2% of insured loan balances, so the program is wellprepared to cover lender claims.

Not only is the FHA reserve account well funded, but it also has so much cash on hand that the real question is whether premiums costs should be reduced to more accurately reflect borrower risks. That’s going to be a big debate in the coming year.

Email your real estate questions to Mr. Miller at peter@ctwfeatures.com.

April 8, 2022

REAL ESTATE FOR SALE

RENTALS

Open Houses

Apartments Unfurnished

NEW TODAY

NEW TODAY Alpine Ridge Retirement Apartments in MV is accepting applications for 2 Bdrm apts. Income limits apply. 360-424-9622 for more info.

2021 N LaVenture Road #202, Mount Vernon $325,000 OPEN HOUSE Sat, April 9th, 12-2 pm Beautifully maintained two-bedroom, two full bath condo! Nice bright kitchen with Corian countertops and tile backsplash. Large living room has marble incased fireplace. All new tinted privacy windows.

Large deck. Separate locked storage area with shelving, Covered parking.

Secure building with elevator. Great location! MLS #1912304 Geri Cole, 360-391-1614 WRE/Skagit Valley Windermereskagit.com

Old Homes for Young Buyers

By Marilyn Kennedy Melia

Millennials born between 1981 and 1996 may crave modern, multi-functional rooms. But, according to a recent report from the governmentsponsored mortgage firm, Freddie Mac, they’re likely to buy homes reminiscent of ones that were built near or before they were born.

Younger Millennials purchase homes that average 41 years old, while the older half of this generation buys homes averaging 34 years, according to Freddie Mac. The younger the buyer, the harder it is for them to afford a home, so they turn to older homes that haven’t been updated or maintained well.

Maybe these old houses have a lower price tag, but they’re hardly easy to purchase, especially in April 8, 2022

this market when sellers want a quick sale, notes Kate Ziegler, an agent with Arborview Realty, Boston.

Here, are some careful considerations for firsttime buyers purchasing an older home: Is rehab necessary immediately?

When a home is “livable,” meaning that crucial components like the furnace don’t need an immediate replacement, Ziegler says buyers benefit by renovating at a slow pace, and not taking on all the expense at once.

However, there are mortgages, like the “Limited FHA203K” and the Freddie Mac “Choice Renovation Express” which bundle the purchase price and renovation costs, up to certain limits.

These loans are relatively easy to secure, unlike purchase-renovation loans involving bigger rehab

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Houses for Rent -Unfurnished SEDRO-WOOLLEY Newer 3 bedroom, 2 bath, available May, $1700 month. Background/credit.

Reply by text message to 360-630-4183

sums, notes Keith Gumbinger of the mortgage data firm HSH.com.

Want a real fixer-upper? That requires determination.

Loans that combine substantial renovation funds with purchase money, like the FHA 203K, require work both from the lender and homebuyer, Gumbinger says.

“Everything from architect’s plans and the contractor’s estimate to various local permitting” must be lined up to close the loan, he explains.

It also helps to have a real estate agent skilled in the process who can refer you to a contractor, a home inspector with expertise in rehab loans, or lenders willing to comply with all the necessary documentation, concludes Paul Welden, an agent with HomeSmart, Phoenix.

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547 CrEstEd ButtE BlVd, Mount VErnon

$500,000

Three bedroom plus den and loft space on this corner lot in the Skagit Highlands. Open concept main floor, kitchen has eating bar with pendant lighting, and matching black appliances. Laundry conveniently located at upstairs loft area. Single car garage access thru alley. Community features trails, playground areas, basketball court, & parks. Easy access to local amenities and I-5.

MLS#1906699

Please Join us on Elliott Johnson Day - April 9th!

We will be volunteering along with the

P.S. La Conner Rotary tulip sales are also in April, Danya says stop by.

Johnson family! This is a great family, community fundraising event and we are proud to be participating again this year! See you there!

Carla Fischer

(360) 982-0100

20787 Bulson rd, stanWood

He recently celebrated his 100th birthday!

Elliott has been a member of Kiwanis for 75 years!

He will be at the Salmon BBQ 11:30 am to 1:00 pm.

$5,200/Mo

PREPPING TO PAINT Choose your interior paint color, exterior paint color has been chosen. Paint is BEHR brand, can be viewed online at behr.com/ onecoatneutrals . 3200 sq. feet, 9 offices /conference rooms, work area; lunch room; reception/waiting area; natural gas forced air heating; air conditioning; 3 restrooms ; new flooring. Available May 1st, 2022. NOT triple net.

Patricia Box Office Manager O: (360) 424-0300 C: (360) 941-9186

JoAnn Boudreau (360) 391-0746

Juanita Bunch (360) 941-5530

Carla Fischer (360) 982-0010

Elva Hunter (360) 202-3086

Danya Wolf

(360) 708-8294

John Hunter (360) 202-3086

(360) 708-8294

21290 lafayEttE rd, sEdro-WoollEy

$595,000

Shy 20 acres of farmland with deluxe triple-wide 2150 sq.ft. manufactured home. Portion of acreage is leased year to year to local farmer (about $4500 per year). Acreage offers Pole barn/garage w/ attached carport and separate large shop. There is garden space and fruit trees, several smaller outbuildings, including starter greenhouse and deck. The home offers a large kitchen with island, pantry, and nook with bay window overlooking farmland. High ceilings and open feel to this floor plan. Free standing wood stove supplements forced air heat. Primary bedroom has walk-in closet and private bath.

There are two more bedrooms, a den, and another full bath to complete this home.

Lots of parking for you and your guests.

MLS#1905659

Suzanne Jenkins (360) 941-2983

360.424.0300

$350,000

Beautiful wooded 4.98 acres situated on south side of Snohomish County/ Skagit County line. Power is in street. Solar power is also possible.

Adjacent property to the east of Subject Property is fenced, open field.

Zoning allows for one building site.

Stanwood-Camano School District; and just ten minutes to I-5. Great country living yet convenient for commuting.

Danya Wolf MLS# 1841822

Stop by and say “Hi” to Elliott Johnson!

1413 E CollEgE Way, Mount VErnon

Patricia Box Buyers agent

(360) 941-9186

Phil LaMay (360) 840-3086

Russ Lanker (360) 708-1117

Brett Tacker (360) 840-7931

Carla Fischer

(360) 982-0100

Danya Wolf Designated Broker/ Owner (360) 708-8294

3780 E. College Way, Mount Vernon www.skagittraditionrealty.com 214412-1

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