INSIDE
This Issue IS THE TIME NIGH FOR A REFI? WHEN TO PULL THE TRIGGER ON A MORTGAGE REFINANCE PAGE 5
INVESTORS PROVIDE CERTAINTY FOR SELLERS, FRUSTRATION FOR BUYERS PAGE 7 CLASSIFIEDS PAGE 7 JULY 2-8, 2021
INSIDE
TABLE OF CONTENTS
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Is the time nigh for a refi? When to pull the trigger on a mortgage refinance ........................................................P5 Q&A Ask Our Broker.......................................................................P6
Investors Provide Certainty for Sellers, Frustration for Buyers ..............................P7 Classifieds............................................................................P7
RE-Weekly To advertise in RE-Weekly or other Skagit Publishing publications, Call: 360.416.2180 or Email: ads@skagitads.com ©2021 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
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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. ContaCt: 360.424.3251 • ads@skagitads.Com 2
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STAT Real Estate Stat
53%
The percentage of buyers who attempted to use an FHA loan to buy property in the first 6 months of 2021. It surpasses buyers using a VA loan at 33% and a USDA loan at 15%. 40% of buyers used none of these. Source: National Association of Realtors
NORTH PUGET SOUND ASSOCIATION of REALTORS®
Feature Home From cover:
525 East College Way, Ste J
4101 EDITH POINT ROAD, ANACORTES
Mount Vernon, WA 98273
Ph:360-416-4902
www.npsar.realtor
$1,649,000
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Mission Statement: The North Puget Sound Association of Realtors advocates for Realtors and their clients, and promotes the protection of property rights.
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GINA DAVIS 360-708-7794
Mid-century home modernized with 2021 flare. Enjoy the peacefulness of Edith Pt along w/amazing 150 ft of unobstructed views of Burrows Bay, San Juan Islands, privacy & NW wildlife. Modern home w/ mixes of industrial touches & wood elements throughout. Large picture windows plus beautiful sliding patio doors out to mahogany decks. Main level living boasts a sleek kitchen w/quartz counters & moveable dining table to match, oversized sitting area w/fantastic in/out living. Primary bdrm w/rising shed ceiling+full wall windows for epic seascape views. Lower level gives flex room with wetbar & additional bdrm suite with attached spa-like bath & walk in closet. Detached studio w/ full kitchen, upscale finishes & 3/4 bth plus a heated garage. MLS: 1782030 101238-1
July 2, 2021
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Now could be the time to sell a new home and earn a slice of the real estate pie.
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Record-low interest rates and record-low housing prices are renewing interest in the floundering 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.
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Is the time nigh for a refi? When to pull the trigger on a mortgage refinance
By Erik J. Martin een a few years since you’ve closed on your home? You may want to take a closer look at current mortgage interest rates and your existing home loan. Chances are strong that rates may have dropped enough since you last closed to warrant a refinance of your mortgage – a move that could save you possibly hundreds a year and many thousands over the life of your loan. “With interest rates hovering near historic lows, now is a great time for borrowers looking to refinance their current mortgage. Lower rates can result in significantly decreasing your monthly payments,” explains Cathy Maloney,
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vice president of Mortgage Lending for Guaranteed Rate in Parsippany, New Jersey. Ponder that, since the start of 2019, national average 30-year mortgage rates have fallen from nearly 5% to 3% or lower, per Freddie Mac. At the time of this writing, the average 30-year fixed rate was 2.99%. That’s a tantalizingly low number that can motivate homeowners currently with rates in the mid-to upper-3% range or higher to take action. A general rule of thumb is that if mortgage rates are lower than your current rate by 1% or more, refinancing is a financial no-brainer; but even dropping your rate by 0.25% to
0.5% could pay dividends. Albert Chavez, a mortgage loan consultant with Sacramento-based United Wholesale Lending, recommends considering a refi if you currently have an interest rate higher than 3.125% and don’t plan on moving anytime soon. “Refinancing could save you hundreds of dollars per month,” he says. “The average savings I’m seeing for clients who refinance into a new 30-year fixed-rate loan are $270 to $525 per month. Others are shaving an average of eight years off their current term.” Indeed, lower monthly mortgage payments aren’t the only reason borrowers pursue a refi. Many seek to pay off their loan sooner
by choosing a shorter term – such as going from a 30year loan to a 15-year loan, which can generate tens of thousands in savings over the loan’s life. “Others refinance, assuming they built up enough equity, to eliminate mortgage insurance that up to this point has been required by their lender,” adds Maloney. “Many borrowers find that their home has increased in value, possibly allowing them to take cash out when they refinance to pay for a home improvement project, pay down debt, or fund a major purchase. And others switch from an adjustable interest rate to a fixed-rate loan, which provides stability in future payments.”
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The best way to determine if a refinance is right for you at this time is to crunch the numbers carefully. “Closing costs usually range from 2% to 5% of the loan principal, which means they generally average several thousand dollars,” says Peter Zomick, senior director of consumer direct lending for Silverton Mortgage in Charlotte, North Carolina. If you are aiming to lower your payments, you need to determine your closing costs and breakeven point, suggests Elizabeth Whitman, an attorney and real estate broker in Potomac, Maryland, who suggests the following scenario: Say you currently owe
$200,000 on a mortgage loan with a 4.0% fixed interest rate. You opt to refinance at a 3.0% interest rate, which will set you back roughly $5,000 in closing costs (2.5% of your mortgage loan amount). The difference between these two interest rates will save you 1.0% interest annually – equating to about $2,000 per year. So, you would need to remain in the house for at least 2-1/2 years to cover the $5,000 closing costs (breakeven) on this transaction. “In this example, if you expect to stay in the house for several years, this refinance makes sense. But if you plan to move in two years, it probably isn’t a good idea,” Whitman notes. Worried that you may not qualify for the lowest interest rate possible? “Take the time to check your three free credit reports, at annualcreditreport.com, and your credit score, through your bank or credit card, to see if there’s room for improvement. A few quick fixes may help you secure the best possible rate for your refi,” advises Anthony Sherman, CEO of New York City-headquartered Simplist. The good news is that if your credit score has improved since you last closed on your home, “you may find yourself eligible for a more attractive interest rate,” Sherman points out. 5
Is a Home off the Market Once Under Contract? Question:
We looked at a home, and it apparently had several offers and was soon “under contract.” Is that it? We really like the place. Is it now out-ofreach?
Answer:
When a home is placed on the market the seller asks for buyer offers. In most jurisdictions that offer uses a form prepared by attorneys for a local brokerage association. The form is typically familiar to local brokers and attorneys and thus easy to review. It might seem as though when an offer is accepted that the property is sold, that the deal is done. That’s usually not the case. Most real estate offers are conditional. They might say the buyer will close only if certain financing is available, there’s a home inspection satisfactory to the purchaser, that the seller replaces the hot water heater with a specific model before closing, etc. The seller might also have contingencies, maybe requiring a letter from a lender by a certain date and time showing that the buyer can finance the property or that a home
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inspection must be complete by a given time. The result is that a successful contract offer is typically not final. It’s a nice start, but there remain hoops to jump through. Meanwhile, as the buyer and seller go back and forth in private, the house is not actually sold, but it is also not fully for sale. It’s in an intermediate state, a contractual limbo of sorts, so it might be described as “under contract” or that a sale is pending. In this way the public knows that the deal is not final. What can other buyers do if they still have an interest in the property? They can ask the broker if the owner will consider a back-up offer. In other words, if the first offer falls through the seller is open to other offers. And, here again, there’s likely to be a contingent arrangement. The seller might accept back-up offers but with the right to choose what the owner considers the mostfavorable back-up offer — not the first backup offer or the back-up offer with the highest purchase price (remember, terms are also important). And bidders, in turn, are likely to have a kick-out clause, maybe x hours, so they can end their offer with notice to the seller
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Q&A
ASK OUR BROKER By Peter G. Miller
if they want to pursue another property. For details and specifics, speak with a real estate broker or local attorney. This brings us to the situation in many local markets today. There are a lot of buyers and relatively little inventory. Mortgage rates are near historic lows. The result is offers well above original asking prices. How long will sellers have a marketplace advantage? According to the National Association of Realtors, the median existinghome sales price rose to $329,100 in March. That’s 17.2% higher than a year ago. Demand will likely falter if home prices continue to substantially outpace income growth, if interest rates move materially-higher, or both. Already, unit sales dropped in both February and March even as prices went higher. But, if you need is to buy a home now, you can’t wait for the housing market to change. You have to deal with realities as they are and do the best you can in today’s market. Email your real estate questions for Mr. Miller to peter@ctwfeatures.com.
July 2, 2021
Real Estate Weekly RENTALS Apartments Unfurnished
NEW TODAY Alpine Ridge Retirement Apartments in MV is accepting applications for 2 Bdrm apts. Income limits apply. 360-424-9622 for more info.
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Investors Provide Certainty for Sellers, Frustration for Buyers By Marilyn Kennedy Melia “Will I ever beat the competition?” That’s the question home buyers, waiting in lines to enter an open house, only to have their offer rejected again, are asking themselves. Frustrated shoppers, go easy on yourself. Currently, says Rick Palacios Jr., principal of John Burns Real Estate Consulting, “institutional investors” are purchasing twenty percent of single-family homes and condominiums nationwide, leaving even fewer homes on the market. Institution investors include firms that own thousands of single-family rental homes; individuals using high-tech platforms t to purchase property for rental income or to find homes to July 2, 2021
fix and flip; as well as “iBuy” operations, which are often arms of traditional real estate brokerages. Institutional investors are especially active in markets favored by relocating remote workers or vacationers, with annual investor purchases accelerating by double-digit percentages in markets, like Naples, FL {57%]; Tulsa, OK {41%}; Chattanooga, TN {28%}; and Boulder, CO {29%], according to research from John Burns Real Estate Consulting. Investor firms attract sellers who want a quick, sure sale without the hassle of painting, improving, and staging for individual shoppers, says Palacios, even though not opening up to all buyers can result in a slightly lower price.
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In some cases, a home seller might initially list his property his traditional way, and then decide to take a sure, cash offer rather than negotiate with individuals. Or, sellers may be alerted to the ability to sell to an investor from his real estate agent who’s connected to an iBuy before even listing. Sellers can explore sites like Zillow and RedfinNow to investigate iBuy opportunities for their location, says Palacios. These iBuy firms tend to work with a variety of institutional investors. Right now, investor buyers are siphoning off inventory, but long-term, predicts Palacios, this trend will increase turnover and open up more options for ordinary buyers. 7
1308 ALpINE VIEw DRIVE MOUNT VERNON
$819,000
2xxx urban aVenue, Mount Vernon
360-708-8294
41546 soutH sKagit HigHway, Finney creeK waterFront $90,000 60102 STATE ROUTE 20, MARBLEMOUNT Beautiful 1.71 acres of amazing recreational waterfront property. Enjoy swimming, fishing, walking on the beach or just watching the wildlife. Carla Fischer
$777,000 Mondo Restaurant has a newly remodeled kitchen with beautiful, new appliances. Great work space and tremendous storage. Public area offers very spacious seating. There is also an outside dining option. Small gift shop area. Chef creates incredible and varied menu, both nutritious and delicious. Restaurant is situated in a beautiful location in the Cascade foothills. Well worth a day trip. MLS# 1757641 Sherry Ruderman
360-982-0010
45153 KoKanee trail lot # 3c3 $45,000 8001 acorn lane 3D1-162, MarbleMount $29,900 re
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$600,000
Prime commercial property with utilities in street, including P.U.D. water, Puget Sound Energy electricity; Cascade Natural Gas, fiber optics; cable; and sewer. Subject To survey and short plat. Property is located between Chicago Title Company easterly parking lot and Max Dale Restaurant’s south easterly parking area. MLS# 1649968 Danya Wolf
Fabulous Custom Craftsman Home in beautiful Eaglemont Community, on the 13th fairway! Open living & dining w/soaring ceilings, gorgeous custom mill work, hardwood floors, gas fireplace surrounded by built-in cabinets. Entertain on your large deck overlooking the fairway & view to Mount Baker. Spacious office/den with shelving & desk ready to start your day. A Gourmet chefs kitchen w/ 6 burner gas stove & warming, double wall oven plus microwave, large granite island & counters, pantry & laundry on main fl. Deluxe owner suite, master bath w/heated fl. walk-in shower & Calif style closet, jetted tub. Downstairs makes for perfect MIL 2 bedrooms full bath, family room with bookshelves & TV, granite counter & wine cooler, enjoy your outside patio. John Hunter Elva Hunter MLS#1795702 (360) 202-3086 (360) 202-3086
360-540-1552
Danya Wolf
360-708-8294
44973 KacHess trail, D3-a4, laKe tyee $46,000 44979 KacHess trail, D3-a6, laKe tyee $74,000 17180 MeMorial Hwy Mount Vernon $415,000
ice
What To Bring: Wine/Spirits, Snacks, Food, Clothes, Firewood TURN KEY! Sweetest vacation spot located at Lake Tyee. The trailer has a bedroom and bunk beds for the littles. Every little detail of this property is absolutely adorable; from the renovations of the trailer to the cozy deck, engaging yard and firepit area. COME QUICKLY! YOU WANT Sherry Ruderman 360-540-1552 THIS ONE!
Quiet corner in the wilderness is where you wanna be? Come check out this location and notice the birds chirping and the roar of the Cascade River. Existing structure can be renovated or tear down and start over. It’s the perfect little getaway in Cascade Sherry Ruderman 360-540-1552 River Park. MLS# 1796088
1310 olyMPic lane, Mount Vernon
Tucked away on Black Tail Loop at Lake Tyee, this very clean and well maintained travel trailer has room to sleep the family plus extra sleep space in the camper. This comes with extras so come and check it out. It’s a perfect time to find the camp spot you’ve been wanting. MLS# 1783219
360-540-1552
$725,000 118 E ORANGE AVE, BURLINGTON
6.98 acre tract zoned Rural Intermediate. Level acreage with great road access both from Memorial Highway and from Avon Allen Road. Stop light and curbs at the intersection. Special Use Permit potential.The Animal Hospital and an espresso stand is across the road to the west. 980 feet along Memorial Highway (SR-536); 620 feet along Avon Allen Road. Danya Wolf 360-708-8294 MLS# 1572330
$650,000 Great opportunity for a small business. Includes commercial kitchen & other restaurant equipment. Great space out back for outdoor dining/ drive-thru. There is parking and storage. It’s located just one door from one of the busiest corners in Burlington; E Orange Ave & Burlington Blvd. Upstairs there is 1BR/.75BA and den. The possibilities are endless in this fast growing community. Sherry Ruderman 360-540-1552 MLS# 1780005
Luxurious living in Beautiful Eaglemon aglemont! Custom om grand built, one owner home! Welcoming Welc and en entry, heated tiled floor,, elegant elegan and comfortable ortable dining room, spacious chef’s chef kitchen with slab granite & stainless steel appliances es. EEnjoy your morning ee & views from a sunn coffee sunny breakfast room leading to outside deck. Relax in lar large family room with gas fireplace eplace & TV. Main floor owner suite opens to large ge deck ooverlooking garden & tranquil nature, w walk-in closet & shower tub. Lower level features spacious media great room opens to fenced yard. 3 bedroom or home office, bath & abundance of storage. Laundry on main fl. lg garage with 18’ doors, attic storage above. Incl. all appliances. Solar system, pay only base connection for 8 month of the year! Elva Hunter John Hunter 360-202-3086 360-202-3086 MLS# 1772884
SOL
Sherry Ruderman
So unique in a gorgeous setting. This is the time of year to relax on your deck while smelling the aroma of dinner on the grill and enjoying the sound of the water feature. While you look over to the beautiful territorial hills, crack open your beverage and be grateful you found this perfect lot to begin your summer. Sherry Ruderman 360-540-1552 MLS# 1783232
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360.424.0300
3780 E. College Way, Mount Vernon
www.skagittraditionrealty.com 111001-1
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