INSIDE
This Issue BUILDING A NEW HOME? CONSIDER A CONSTRUCTION LOAN PAGE 5 HOW MUCH COLOR HELPS A HOME SELL? PAGE 7
NOV. 12-18, 2021
TABLE OF CONTENTS Building a new home? Consider a construction loan.................................P5 Q&A
INSIDE
Ask Our Broker.......................................................................P6
PAGE
How Much Color Helps a Home Sell?.................P7
5
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November 12, 2021
STAT Real Estate Stat
September 2021 Pending Home Sales Pending home sales dipped by 2.3% in September with each of the four major U.S. regions seeing contract activity decline month-over-month and year-over-year. Source: National Association of Realtors
525 East College Way, Suite J
Mount Vernon, WA 98273
(360) 416-4902
www.npsar.realtor
FEATURED HOME FROM COVER:
1016 JAMESON ST, SEDRO WOOLLEY
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 with 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 down payment and closing costs. Generally, buyers 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 will 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 Mission Statement: The North Puget Sound Association of Realtors advocates for Realtors and their clients, and promotes the protection of property rights.
November 12, 2021
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Skagit Tradition Realty LLC 3780 E. College Way Mount Vernon, WA 360-424-0300 www.skagittraditionrealty.com
$390,000
Danya Wolf
360-708-8294
Well cared for home with lots of personality, warmth, and welcoming ambiance. The interior offers a cheery living room with a free standing fireplace; a great kitchen area with natural gas range;lotsofcabinets,counterspace,andapantry. There are two bedrooms on the main level; and the upstairs offers both the master bedroom, extra storage;andabonusroom.Thegeneroussizedyard has a garage with shop space (336 square feet), a second level loft area; plus a separate storage building. There is access to the back yard via an alley, with the ability to park an extra vehicle. There is also garden space, fruit trees; and room for lawn chairs, relaxing, and yard games. MLS# 1860262 3
146441-1
NORTH PUGET SOUND ASSOCIATION of REALTORS®
Now could be the time to sell a new home and earn a slice of the real estate pie. 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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long tenure with the same employer,” she says. “The amount we were allowed to borrow was dependent on our debt-to-income ratio and our property value, including the value of the home after completion, which was predetermined by an appraisal.” Ranae says they were allowed to apply the funds to any materials or contractor fees that were necessary for building the home, based on the original specifications identified in the appraisal. “The materials could be purchased by our family and reimbursed from the loan or purchase by the contractor who would then request a reimbursement through voucher system from the lender,” she explains. DiSalvo says a construction loan can be better for someone with at least some homeownership experience. “It’s not an ideal type of financing for a first-time purchaser because they have little experience with the hectic process of constructing a home from the ground up,” says DiSalvo. Prepare to shop around suitable for borrowers who higher while the life of the carefully for a construction will be doing the construcloan is much shorter.” loan; while they are offered tion themselves as the general You’ll need to provide lots by various lenders and some contractor. of information when you retail/commercial banks, With any of these choices, apply for a construction loan, they can be less commonly prepare to jump through a including details about your available than other types of few extra hurdles. income, employer, home financing. “Qualifying for a construc- building budget, general con- A worthy alternative to a tion loan can be more com- tractor/builder, and more. construction loan is a renovaplex compared to a standard For Brigitte Ranae, a home- tion/rehabilitation loan, mortgage product. And the owner in De Soto, Missouri, which can fund the costs guidelines for what type a construction loan was the associated with remodeling of property qualifies for a perfect option to fund the or repairing an older home, construction loan can be far creation of her recently built should you choose to bypass more strict,” cautions Rachel dream dwelling. new construction. DiSalvo, broker associate “For us, the process was “The most popular renovawith Keller Williams Park very easy and we were aption loan is the FHA 203(k) Views Realty in Rutherford, proved within one week. We rehab loan, the funds from New Jersey. “Also, the loan went with a local small-town which can go toward purapproval process may be bank that we had no history chasing the home along with any needed renovations or complex, and the interest with. It helped that we had rates are usually considerably credit scores over 800 and a repairs,” DiSalvo adds.
Building a new home? Consider a construction loan
By Erik J. Martin You dream of having a brand-new home built from the ground up on an empty lot of your choice. Problem is, you can’t get a mortgage loan until that home is completed. So what do you do if you can’t cover all the construction costs out of pocket? In this scenario, a construction loan comes in handy. A construction loan represents short-term financing that commonly spans 12 to 18 months, enough time to fund the homesite, manpower, and materials required to build your desired domicile. “Construction loans differ from typical home loans in November 12, 2021
that they specifically focus on building projects and their facilitation,” says Brad Cummins, a Columbus Ohio-based principal agent at Insurance Geek. Cummins notes that disbursement of funds with a construction loan works differently than for mortgage loans. You are allowed to draw down on the loan in stages to cover related expenses as the building of the home advances. Every draw you make typically compensates the builder or general contractor for that finished phase of the construction. Borrowers can select from three different types of construction loans. The first is an
adjustable-rate constructiononly loan, where the funds are used exclusively to pay for the home’s construction. Upon completion, the loan must be paid off in full or refinanced into a permanent fixed-rate mortgage loan. Type #2 is a constructionto-permanent loan that combines two loans in one package: The funds first pay for building expenses, but then the loan transitions to a permanent mortgage loan once the home is finished. The permanent loan starts within adjustable rate but converts to a fixed-rate fully amortized loan later. The third type is an ownerbuilder construction loan,
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The Quieter Benefits of Your Home Rising in Value Question:
Home prices have been soaring, but what’s the value of higher prices for those who do not wish to sell or refinance? Are higher real estate values anything more than a happy number?
Answer:
Higher home prices have real meaning, even for those who do not wish to sell or refinance. In November 2015 the typical existing home sold for $220,000 according to the National Association of Realtors (NAR). That same month, borrowers likely paid 3.94% for new financing, according to Freddie Mac. If that $220,000 home was financed with 5% down, then the original mortgage amount was $209,000 At 3.94% over 30 years, the monthly payment for principal and interest is $990.58. After six years, the loan balance has been reduced to $184,324. Today, however, the same home was likely worth $356,700 in August, according to NAR. How much equity does the owner have? We might subtract $184,324 from $356,700 to get $172,376. So -- even if not selling or
6
refinancing -- our owner should be happy. More realistically, we can define equity as the property’s market value less any mortgage balance and less 20% of the property’s value. Now we have a $356,700 market value minus 20% or $71,340. That leaves $285,360 in property value less the $184,324 mortgage balance, or “tappable” equity worth $101,036. Why subtract 20%? Because when lenders consider a refinance many like to see 20% equity free and clear, in case the home must be quickly sold. According to Black Knight, US homeowners had tappable equity worth $9.1 trillion in the second quarter, an increase of $1.8 trillion during the first half of the year. The question, though, is not how much equity, it’s what is the value of equity if an owner does not wish to sell or refinance? Everyone will have different answers, but I suspect the major points will look like this. First, rising prices are better for owners than falling prices. Second, if an owner runs into serious
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Q&A
ASK OUR BROKER By Peter G. Miller financial problems, with lots of equity a foreclosure can likely be avoided by simply selling the property and paying off the mortgage. In markets with soaring home values, it may well be possible to quickly sell the property at full market value. And, in some cases, with bidding wars, maybe for more than the list price. Third, local governments love rising home prices. As property values go up, that can also be the case with property values. However, in many cases, property tax increases are capped and there are often various exemptions and exclusions that hold down bills. Fourth, higher real estate values increase net worth, a key measure of wealth. Lastly, there is also the psychological value of finding marketplace success. There aren’t too many owners who feel badly when home values go up. Simply put, higher prices are good for ego, status, and balance sheets. Email your real estate questions for Mr. Miller to peter@ctwfeatures.com.
November 12, 2021
How Much Color Helps a Home Sell? By Marilyn Kennedy Melia
ed color. Those findings seemingly contradict the cardinal color rule of real estate that neutrals sell. Buyers want to find a place that they can easily After all, neutrals help buyers envision a place envision themselves living in. But first, they as their own; a beige to grey palette won’t comhave to be interested enough to tour a home and pete with most furnishings or tastes. Amanda Pendleton, a Zillow home trend expert, explains rank it among their favorites. That idea explains the findings of a recent that the survey results don’t negate the imporZillow survey of 1,300 prospective homebuyers tance of neutrals, but show that it’s also imporwho said they were more interested in visiting a tant to create interest. home they viewed online which had a primary The homes favored still had neutral walls in bedroom painted dark blue, deep charcoal gray common areas like the living, dining, and family or rich forest green. Buyers also indicated they would like to tour rooms family and entryway, with a spark of color a home with a bathroom painted light blue. in “private rooms like a bathroom or bedroom,” What’s more, buyers also estimated they’d pay a Pendleton notes. bit more for homes with these pops of unexpectBut Helen Bartlett of Kansas City Refined November 12, 2021
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Interior Staging Solutions believes colorful walls are too risky, even in ‘private’ rooms, with the exception of children’s spaces. “People walk into a space that has color [painted walls] and it evokes a feeling or response. Sometimes it may be as simple as ‘I like that color’ or ‘What would I ever do with that color; I would have to paint immediately,’” she explains. To enliven interest, Bartlett prefers adding color and textured materials with pillows, rugs, accent chairs, and artwork. But these attention-getters should be minimal; small souvenirs that help a buyer remember a home as having the space, flow and basics that they could live in, conclude Bartlett. 7
10504 56th aVe ne, MarySVille
Pen
$435,000
41546 South Skagit highway, Finney Creek $80,000
700 N REED ST #40, SEDRO-WOOLLEY
$135,000
ding Beautifully remodeled 1995 Nashua 52 x 28 doublewide manufactured home: 1350 square feet offers amazing kitchen including range, refrigerator, and dishwasher; a multitude of beautiful cabinets; pantry; and lots of counter space; formal dining
WATERFRonT Updated 3 bedroom 2 bath open floor plan rambler. This warm and welcoming home offers a lovely kitchen; Pergo hardwood flooring; Nortron in wall forced air heaters. Covered front porch. Fully fenced backyard: trex decking, storage building; spacious yard. RV parking. newer roof; vinyl windows; skylights; separate utility room. MLS#1855470
Carla Fischer Buyer’s Broker
Danya Wolf
(360) 982-0010 (360) 708-8294
24094 n. weSt View rd, Mount Vernon
(360) 982-0010
$850,000
After 60+ yrs this Big Lake prime property on the sunny side of the lake can now be yours. Approx. 80 ft of no-bank water front just minutes away from a nine-hole golf course. Property features a pier connected to a floating dock perfect for mooring your boat & watercraft. The approx. 4,500 SF of property bisected by N. West View Rd has an access road and additional possibilities for your needs. Besides the 2 bed 1 bath manuf. home the lot has a detached 750 SF garage/ shop, out buildings and RV parking. And the large covered deck is perfect for watching eagles, seasonal waterfowl & spectacular sunsets! Russ Lanker (360) 708-1117 MLS# 1848508
819 n 18th, Mount Vernon
$549,900
Home on the hill, close to shopping, schools and medical. This home features 6 bedrooms and 2 baths with 2 additional bonus bedrooms in the garage (easily convert back to a 2-car garage). Plenty of parking, nice size yard with mature landscaping. Danya Wolf MLS# 1811049 (360) 708-8294
JoAnn Boudreau (360) 391-0746
Patricia Box Office Manager O: (360) 424-0300 C: (360) 941-9186
Juanita Bunch (360) 941-5530
Carla Fischer (360) 982-0010
Beautiful 1.71 acres of amazing recreational waterfront property. Enjoy swimming, walking on the beach or just watching the wildlife. MLS# 1800415 Carla Fischer
Elva Hunter (360) 202-3086
20787 BulSon rd, Stanwood
room; spacious living room; three bedrooms and 2 full baths. Master suite offers walk in closet; master bath offers double sinks and tub for relaxing plus separate shower. Separate utility room. Nice decking; generous sized yard with storage building. Greenbelt to protect fish and wildlife adjacent to the south of lot. MLS# 1849202
Danya Wolf
Phil LaMay Buyer’s Broker
(360) 708-8294 (360) 840-3086
$350,000 nhn Mountain View rd, Mount Vernon $115,000 1203 e SeCtion, Mount Vernon Located just outside the Mount Vernon City limits, this wooded 1 acre plus lot could be a building site for a stick built, modular, or manufactured home, with plenty of room. Tract has been surveyed
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. StanwoodCamano School District; and just ten minutes to I-5. Great country living yet convenient for Danya Wolf (360) 708-8294 commuting. MLS# 1841822
(LeGro and Associates) and wetlands have been delineated (Oscar Graham and Pat Bunting). Power and PUD water are available at the street. MLS# 1861233
24329 wiCker road, Sedro-woolley $250,000
2XXX urBan aVenue, Mount Vernon $600,000
Danya Wolf
(360) 708-8294
$599,900
Contemporary 2 story home offers 7 bedrooms plus a bonus room! Open floor plan, spacious kitchen, 3.5 baths, recessed lighting and skylights. Spacious covered porch for relaxing before, after, or instead of work. Located in a desirable neighborhood, close to schools, shopping, medical and easy commute to I-5. Danya Wolf (360) 708-8294 MLS# 1810956
i’m a Seniors real estate Specialist Every transition is an opportunity, regardless of your stage of life. By partnering with an
Sold
SRES like one of us, you gain the help and experience of a Realtor® specializing in meeting the needs of home
Cozy home with 1 bed and ¾ bath on a 1/3 acre lot. A work in progress- there has been some updating and remodeling. Roof new in 2017. Foundation new in 2009. Extended foundation on front of home is ready for your expansion plans. Tankless water heater. Gas free-standing stove, gas range. Original Fir floors, some newer laminate flooring in kitchen. The ½ bath in outbuilding opens possibilities for guest cottage or hobby room. Carla Fischer MLS#1828933 360-982-0010
John Hunter (360) 202-3086
Suzanne Jenkins (360) 941-2983
buyers and sellers 50+. We offer you the opportunity to complete your transaction with patience, professionalism
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
Phil LaMay (360) 840-3086
360.424.0300
Russ Lanker (360) 708-1117
Kim Schlimmer (360) 661-7670
and the expertise you deserve. We are pleased to be YOUR SRES®
Carla Fischer
(360) 982-0010
Brett Tacker (360) 840-7931
Elva Hunter
(360) 202-3086
Danya Wolf Designated Broker/ Owner (360) 708-8294
3780 E. College Way, Mount Vernon
www.skagittraditionrealty.com 157475-1
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