AUG. 26, BETTERBEFOREDOUBLETHINGS2022TOCHECKBUYINGTHATHOUSEPAGE5INSULATIONPUTSMONEYINTOHOMEOWNERS’POCKETSPAGE7CLASSIFIEDSPAGE7 INSIDEThisIssue
2 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. 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 RE-Weekly Things to double check before buying that house P5 Q&A Ask Our Broker ...................................................................... P6 Better insulation puts money into homeowners’ pockets ................................................................................... P7 Classfieds P7 TABLE OF CONTENTS 5 PAGE INSIDE 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. ContaCt: 360.424.3251 • ads@skagitads.Com
Aug. 26, 2022 3RE-Weekly RealSTATEstateStat-5.9% Existing-home sales fell another 5.9% in July 2022 (from June 2022) and down 20.2% compared to one year ago. This is the sixth-consecutive month existing-home sales have fallen. Source: National Association of Realtors Mission Statement: The North Puget Sound Association of Realtors advocates for Realtors and their clients, and promotes the protection of property rights NORTH PUGET SOUND ASSOCIATIO N of REALTORS® 525 East College Way, Suite J Mount Vernon, WA 98273 (360) 416 4902 www.npsar realtor Six Signs You Are Ready To Buy If you are thinking about buying, you're not alone. So are you ready to make the move? You might be if you: 1. Are familiar w ith the market. If you've been paying attention to how much houses are listed for in the area you’d like to live, you're in good shape. 2. Have the money for a dow n payment and closing costs. Generally, buy ers will receive an estimate of these costs from your lender after you apply for a mortgage. 3. Know how much you can afford. Your monthly mortgage payment should be less than or equal to a percentage of your income. Also, your income, debt and credit history go into determining how much you can borrow. 4. Know what additional expenses w ill come with owning a home. Including homeowners insurance, utilities, and maintenance costs. 5. Have your credit in good shape and make sure your credit report is accurate. You should get a report from each of the three credit reporting companies: Equifax, Experian, and Trans Union. 6. You haven't made any recent major purchases, particularly a vehicle. If you do, you may have a harder time getting a loan, or it could potentially lower the amount you'll be approved for. Realtor com~Michele Dawson
4 Aug. 26, 2022RE-Weekly 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. Now could be the time to sell a new home and earn a slice of the real estate pie. RealEstate weekly Call 360.416.2180 Today! In print and ads@skagitads.comgoskagit.comonline
“Most inspection re ports provide the buyer with some sort of coding on the report that states whether any particular item is either something that needs immediate attention, something that should be watched in the future, or something you shouldn’t worry about it all,” Golden adds. “That’s a great help in determining how to prioritize repairs and improvements during negotiations and once you takeWhileownership.”theexperts don’t recommend duplicating the inspector’s work, it’s a good idea to also check over particular items in areas on your own before committing to a home purchase.“Lookfor any signs of recent patch painting, ex tension cords, insufficient outlets, how the morning and afternoon sun comes into the home, and the condition of the yard and driveway,” Stanley advises.
Aug. 26, 2022 5RE-Weekly
• Structural inspections of the foundation, materials, sill, and exterior walls; anchor bolts; and moisture, ventilation, and presence of pests.
• Exterior/site ground inspections of site grading and drainage; topography; driveways and walkways; exterior primary and sec ondary finishes; electrical outdoor receptacles; exterior condition of surfaces, doors, and windows; and condition of fencing, rail ing, and vegetation.
By Erik J. Martin CTW Features You’ll find a lot of nooks and crannies within your average house. You’ll also discover a decent number of defects and deficiencies if you look closely enough. That’s why the experts strongly advise having a professional home inspec tion completed before you purchase a property. Because what you don’t know before signing on the dotted line can come back to haunt you in the form of buyer’s remorse later, when hidden flaws eventually make themselves known.“Ialways recommend an inspection on any home or condo before purchas ing, primarily to make sure there are no major areas of concern and also to point out minor items that need to be addressed as well as current and future main tenance issues,” says Joy Stanley, owner/broker of Island Dreams Real Estate in St. Thomas, Virgin Islands.JackPinard, COO for Summit RE Group, LLC, a residential real estate redevelopment company in New England, echoes that advice.“There are several complex systems that interact within a home that are be yond the understanding of the average buyer. In addition, numerous structural, site, weatherproofing, pest, and safety considerations need examination,” he says.
While prospective home buyers taking a home tour can possibly spot problem areas with their naked eye, this is no substitute for the fine-tooth-combing an experienced profes sional home inspector can provide.“Evenif you are not in a state that requires inspec tors to have a license, there are certain basic credentials you should prefer in an inspector,” says Realtor Bill Golden with Keller Williams Realty Intown Atlanta. “They should be ASHI-certified, code-cer tified for the municipality you are purchasing in, have experience in new con struction and old homes, provide an estimate of their charges, and indicate what kind of report they will provide you with.”
• Garage inspections of electrical receptacles; garage door opener; floor surface windows and doors; and safety features.
• Plumbing inspections of domestic water supply; landscape water; main water line and interior water supply; supply piping; waste disposal; water pressure; waste piping; water supply shut-off location; drain, waste, sump pump, and sewage ejector; gas meter and piping; and water heater.
“Make sure any furniture that will remain with the home fits with your needs and preferences. Check the water pressure, too. Make sure appliances are secure and working. Check that you have a mailbox, and make sure the house number is visible from the out side as well,” suggests Marc Mason, owner of Eastside Property Development in Taunton, Golden.fitthem?outletstheturelifestyle?andtoAdditionally,Massachusetts.givethoughttheflowoftheroomstheoverallfloorplan.“DoesthelayoutfityourWillyourfurni-fitintherooms?AreelectricalandcablewhereyouwantAndwillyourcarinthegarage?”asks
The pro inspection should cover the major structural components and mechani cal systems within a home for sale for signs of nonperformance, excessive or unusual wear, and general state of repair, per Jennifer Chiongbian, a broker and appraiser in New York City. According to her, the inspection should include:
Key inspection areas that deserve extra attention
Things to double check before buying that house
• HVAC inspections of furnace or boiler and heating elements; air conditioning and cooling ele ments; water tank; vents; valves; and thermostats and controls.•Interior inspections of the laundry room, washer/ dryer, and laundry tub; surface ceilings, floors and walls, and service cabinets; all electrical receptacles; showers, toilets, sinks, bathtubs, and closures, and countertops; doors and windows; kitchen appli ances and ventilation; and fireplaces.
• Roofing inspec tions of roofing and slope materials; connections and penetrations; built-up ser vices; flashings; chimneys and flues; downspouts; and skylights.•Electrical inspections of service entry; voltage; amperage; ground; protection; conductors; wiring methods; meter and main; service main capacity; and breakers, wiring, switches, lights, and circuitry.
Second, the seller can drop the price by $20,000. That’s not very likely in today’s market.
Fourth, the buyer can appeal the appraisal value.
Seventh, working with a different lender might also be an option, but beware of time delays, the need for a new mortgage application, the possibility of not qualifying, etc.
If the maximum loan-to-value (LTV) ratio is 80%, it means the lender will finance $400,000 if the property is worth $500,000. But the lender will only lend $384,000 for a $480,000 valuation.
In this example there is a $20,000 appraisal gap – the difference between $500,000 and $480,000.
Email your real estate questions to Mr. Miller at peter@ ctwfeatures.com.
Question: We want to list our home for sale and have spoken with several brokers. Of course, we want the highest price, but one broker warned that offers can fall through if buyers are willing to pay too much and can’t. Is that really possible?
Eighth, the deal can fall through. This can lead to a down payment loss for the buyer and possibly other penalties.
QQ&A&A
In other words, if a home sells for $500,000 but is appraised at $480,000, the lender will use the lower figure to calculate the maximum loan amount it’s willing to offer.
Home sales falling through
By Peter G. Miller
The seller accepted a $500,000 offer and not $480,000.
Fifth, the purchaser can ask if the lender will accept a secondSixth,appraisal.thebuyer can look for financing with the same lender but a different loan program.
What happens next? There are several ways to deal with an appraisal gap.
Third, the buyer and seller can meet in the middle. The buyer will put up an extra $8,000 in cash and the seller will reduce the price to $492,000.
First, the buyer can put up the additional $20,000. Not every buyer, of course, has the cash to do this.
6 Aug. 26, 2022RE-Weekly ASK OUR BROKER
Answer: Real estate agreements rarely fall through, but it does happen.According to the National Association of Realtors (NAR), in the period from February through April 2022, just 7% of the pending sale contracts it tracked fell through or were terminated. That means 93% were successful.
The broker was likely warning about the dangers of the “appraisal gap”, a situation that can lead to a lot of grief for both buyers and sellers. When a home sale depends on mortgage financing, the lender requires an appraisal. The lender will then finance the property on the basis of either the sale price or the appraised value, whichever is lower. Why doesn’t the lender just provide financing based on the sale price accepted by the buyer and seller? The lender is putting up the bulk of the money and for that reason wants to be cautious. If the price cannot be justified by recent home sales, then the lender will not want to make the loan, there’s too much risk.
For details and specifics, speak with a real estate broker or an attorney who handles local real estate transactions.
There is also a $16,000 difference between the amount of cash required from the buyer – the difference this time $400,000 in financing (80% of $500,000) and $384,000 in financing (80% of $400,000).
CTW Features
The deposit replacement charges are non-refundable and vary by renter. For instance, “Our secu rity deposit replacement coverage starts at 7 percent of one month’s rent,” explains a spokesperson for TheGuarantors, adding, “costs are determined by the landlord’s pre ferred coverage level and the renter’s risk profile.” The “mysuredeposit. com” website uses the example of a $175 charge for a $1,000 surety bond [which would replace a $1,000 security deposit]. In addition to the non-refundable charge, renters must also reimburse the deposit replacement firm for the cost of any damage he caused– and may be on the hook for additional amounts to cover the landlord’s loss.
With the average rate nationwide for a one -bedroom apartment jumping to $1,129 early this year, renters everywhere are finding themselves financially stretched. Not only must their earnings and credit record meet a landlord’s standards, but they also need a month or more of rent upfront for a security deposit.
Structured either as “surety bond” or as insurance, renters pay a frac tion of the required deposit to the firm, which guarantees the landlord the full deposit should the renter incur the charges, explains. Michael Collins, director of the Center for Financial Security, University of Wisconsin.Whilethey initially save, renters using an alternative product do pay more than if they had the upfront cash for a security deposit, abide by their lease terms, and get their security deposit back in full when they move out, adds Collins.
Aug. 26, 2022 7RE-Weekly
“Always start with talking to your landlord,” Collins advises struggling renters, because it may be possible to stagger payments on the security deposit.Users of replacement products should clearly understand any fees –and what would cause his landlord to levy charges for lease violations.
The security is for the landlord, who can use the funds if the renter does damage to the property or breaks leasing terms. But the charge means financial insecurity for rent ers who drain their savings to pay theNow,charge.several firms; like TheGuar antors, Jetty, Rhino, and Sure Deposit, have agreements with thousands of property management companies to accept their product in lieu of the security deposit.
Better insulation puts money into homeowners’ pockets
By Marilyn Melia Kennedy
8 Aug. 26, 2022RE-Weekly
