Real Estate Weekly May 26, 2023

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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.

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Real Estate Stat

-3.4%

Existing-home sales decreased 3.4% in April 2023, with all four major U.S. regions registering month-over-month and year-overyear sales declines.

517 E. F airh aven Ave, Burlin gton , WA 98233 (360) 416-4902

www.n psar .realtor

The Ter m REALTOR ®

The term REALTOR® is a registered collective membership ma rk that identifies a real estate professional who is a member of the NATIONAL ASSOCIATIO N OF R EALTORS® ( NAR) and subscribes to its strict Realtor Code of Ethics

Local associations are required to enforce the code of ethics through a Professional Standards Coun cil or Committee.

The R EALTOR® Political Action Committee (RPAC) fights for Homeowner and property rights in Washington DC, Washington state and right here in your community

Using a designated REALTOR® assures that you r trans action is handled ethically, and that you r rights will be protected now, and in you r future as a homeowner.

To find a R EALTOR® member in your a rea, visit www.n psar.realt or to view our member and affiliates lists.

skagit Tradition Realty llc 3780 E. college Way Mount Vernon, WA 360-424-0300

www.skagittraditionrealty. com

Custom built for enter taining and for longevity, this beautifully appointed 3,006 square foot home has no steps; wide door ways and hallways: walk in pantr y, spacious open kitchen, fabulous primar y suite with two separate baths and generous sized walk-in closet accessible from both primar y baths; storage and more storage throughout. Third bath off hallway connec ts to guest bedroom. Large office/den/work/recreation space. Spacious, convenient utility room. Enameled metal roof. Ex tremely large 3 car garage (1,178 square feet) with 1/2 bath, and even more storage and work area. Large deck with gazebo for outdoor enter taining and enjoyment on this beautifully landscaped .49 acre lot. Circular drive, lots of ex tra parking; generous sized RV space.

MLS#2067842

Danya Wolf (360) 708-8294

Why advertising matters

No matter the size of your business, good and thoughtful promotion will always help you grow awareness about your brand, get in front of more serious prospective clients, and ultimately boost your revenue. Advertising has been shown to be worth the investment, and we’re taking a deeper dive into why it really matters and what you can do to spread the word about your business.

• It creates brand awareness.

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• It drives lead generation.

• It produces more continuous business.

• It improves your digital presence.

• It encourages customer engagement.

• It keeps your consumers up to date.

• It leads to repeat business.

The bottom line? Advertising really works. It’s a key component to building your brand, growing your earnings, and maintaining a successful real estate business. Our marketing solutions can help you get lots more eyes on your business with targeted online advertising.

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

What is a short sale in real estate, and how does it work?

by Erik J. Martin

Whether you’re talking about money, patience or even height, “coming up short” is a situation you typically want to avoid, whether in the short term or long term. But one form of “short” that could serve as a lifeline to a homeowner is a short sale, which may be necessary in certain circumstances.

In short (okay, no more puns), a short sale is a transaction where a homeowner sells their property for less than the outstanding balance they owe on their mortgage loan. is occurs when the house is upside down in value and the owner needs to unload the property because they are no longer able to make

mortgage payments.

“It usually occurs when there is an individual or family facing foreclosure due to not being able to afford the mortgage. e lender that holds the mortgage must usually agree to accept less money than what is owed on the loan and forgive the remaining debt. is gives homeowners an alternative option other than foreclosure,” explains Albin Hubscher, a broker and Realtor in Orlando, Florida.

A short sale can be a winwin for both parties.

“ e homeowner avoids foreclosure and potential damage to their credit, while the lender avoids costly legal fees and expenses associated with foreclosure,” notes Min Hwan Ahn, an attorney in Philadelphia.

For a lender or bank to approve a short sale, the homeowner has to meet particular criteria. ey must face a financial adversity or hardship, have a monthly income shortfall and prove they are insolvent.

“Somebody who is facing financial difficulty, is nearly broke and who may be inching closer to foreclosure is a good candidate to pursue a short sale,” Desiree Avila, a Realtor in Fort Lauderdale, Florida, says.

To determine if you are a good prospect or eligible for a short sale, it’s important to discuss your situation with a knowledgeable real estate agent and/or attorney experienced in handling short sales.

“Your representative can help determine if a short sale

is the best option and guide you through the process, including gathering the necessary documentation, such as proof of financial hardship, and negotiating with the lender,” Ahn continues. Avila agrees. “You will need copious amounts of paperwork to demonstrate your hardship and why you need to short sell. Prepare to gather all paperwork the bank asks for and submit it punctually. Be thorough, because one mistake can mean the short sale package gets kicked back and all the paperwork has to be updated,” she says.

Following a successful short sale, you may still be responsible for any remaining mortgage balance not covered by the sale

proceeds – which is known as a deficiency balance.

“However, your lender may agree to waive this deficiency or negotiate repayment terms with you,” Ahn points out. “Sellers should expect their credit score to be negatively impacted by a short sale, too, although it is generally less severe than with a foreclosure.”

Additionally, be forewarned that a short sale process can take several months or longer due to the complexity of negotiations and the required approvals involved. Also, your lender may not preclude you from reporting forgiven debt as income, which could mean there will be tax penalties in the future. Ask if your agent has an accountant on their team to help you understand

the full gamut of potential financial ramifications.

Alternatives to a short sale include loan modification, in which the lender agrees to change loan terms like interest rate or payment schedule; refinancing, which involves obtaining a new mortgage loan with better terms; or filing for bankruptcy protection if you qualify. Each of these options has its pluses and minuses, depending on your individual circumstances.

“If you are considering a short sale, regard it as a last resort but a good one if it will help you avoid foreclosure,” says Avila. “ ere is no shame in a short selling.”

Real Estate Questions and Advice

Question:

Is it really possible that we cannot afford a home because we bought a car? We›re not talking about a fancy vehicle or some type of exotic antique. We needed a safe, reliable car for work and now the mortgage lender tells us that because of monthly car payments our debt-to-income ratio is too high. What can we do about this?

Answer:

We hear a lot about the rising cost of homeownership, how the combination of higher prices and steep interest rate increases over the past few years have made homes unaffordable. e reality is that the cost of many goods and services has gone up. One of the most visible increases concerns the cost of new cars, SUVs and pick-ups. According to the Federal Reserve, the typical amount financed for personal vehicles in December was $39,407, the average loan term was 67 months and the usual finance-company interest rate was 6.1 percent at the time. Put the num-

bers together and you get a monthly payment of $695.48 per month or $8,346 per year.

e monthly car cost shows up in mortgage applications when it comes time to calculate the debt-to-income ratio (DTI). You take monthly recurring debt payments for such obligations as student debt, homeownership (meaning costs that include mortgage principal and interest, real estate taxes, and property insurance), and auto loans, and then add them together. If the total of such expenses equals more than 43 percent of your gross monthly income it becomes harder to qualify.

It’s possible to get financing with a 50 percent DTI if you have “compensating factors” such as a high credit score, big reserves, or a large down payment. But, while it may be possible to get a higher DTI, many potential buyers are not comfortable with big monthly payments. Remember, people lose jobs, surprisingly big costs arise, bonuses fall through, etc.

One practical way to lower a DTI ratio is to look at your monthly payments and see if any can be

ASK OUR BROKER

By Peter G. Miller

reduced.

For example, suppose you have $2,100 in debt remaining from the purchase of an old car. e monthly payment is $350. By paying the $2,100, you can end the $350 monthly payments and lower your DTI. However, some lenders won’t count the debt against you if fewer than 10 payments remain. It may be that the $2,100 in cash can be better used by reducing other debt.

Another approach is to reduce spending so that larger monthly credit card payments can be made several months before applying for a mortgage. Also, of course, more income – from overtime, certain gig work, etc. -- may help improve your DTI.

And, of course, avoid making major purchases on credit before your mortgage financing has finally closed. e reason is that lenders may pull credit reports multiple times during the loan application process, and major purchases can change the DTI.

As always, speak with loan officers for details.

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

MLS #2059676

Open House Saturday 5/27 from

Cozy

“On The Fence About Selling Your Home? Here’s What Gets Homeowners Moving”

Home buyers are all too familiar with the same problem currently: ere’s a shortage of homes for-sale. Fairly or not, Baby Boomers have been getting the blame; If more of them would sell, they’d make it easier for young families to afford a home.

True, Boomers, are staying longer in their home than previous generations; but so is everyone else. In 2021, the median length of time U.S. owners were staying in their home was 13.2 years, up three years from the previous decade.

Now, data analytics firm TKI says that it can predict what prompts certain owners to sell within the next year. “We utilize more than 300 data points” for each household in some 23,500 zip codes, says

CEO Tom Gamble, who adds that TKI has already been successful with many of its predictions made for 2022.

So, if owners see themselves in these profiles of likely sellers, they may want to begin getting serious about decluttering and prepping for sale:

-Families with school age children who enjoy a growing income, desire more space, and maybe want a “better” school district, or proximity to their kids’ activities are the largest group of movers, accounting for 23.5 percent of listings.

-Empty nesters between the ages of 45 to 64 are the second largest seller group. If they hold a high level of equity in their current home, they may want to take home

sale profits and move to a lower-cost community. Or, health changes, a strong desire for better weather or a craving for closer proximity to friends or family may also affect this age group.

-Single adults between 35 to 64 will make up 8.7 percent of sellers. A change in relationship status, having children, a new job or a promotion or a strong desire to be closer family, friends or passions like sports offerings moves this group.

-Retirees aged 65 or older will make up 7.5 percent of sellers. eir motives are similar to empty nesters.

-Families with at least one older child – between 18 to 24 – living at home are the most likely to stay put, accounting for only 6.3 percent of listings.

Owner

MLS

Open

Situated on a quiet Anacortes street just a block from the Anacortes Community Forest Lands. Single-level beautifully maintained, move-in ready home. Many recent upgrades, it might as well be new!

This 4 bed/ 3.5 bath, 3982 sq. ft. home is per fec tly situated on a shy acre offering exquisite one -level living in prime location with a spec tacular bay and mountain view. Away from the hustle and bustle yet so incredibly close to ever ything! Easy access to Hw y 20 for travel West to Anacor tes, Deception Pass, and beyond; or travel East to I-5 for commuting (Nor th and South) or continue Eastward to the beautiful Nor th Cascades. Recent upgrade of kitchen cabinets, decks on nor th, south, and west sides of the house, 3 car garage, expansive driveway parking, sauna, Thermo -spa Aquasizer, updated professional landscaping, sprinkler system, and garden space. Near to beach, park, and Padilla Bay trails; great area for walking, jogging, and biking. MLS# 2047824

60102 State route 20, MarBLeMouNt $675,000

Patricia Box (360) 941-9186

OWNER FINANCING AVAIL ABLE!

Charming well maintained mid- centur y rambler, t wo bedrooms, one bath with stucco siding, attached garage, and a detached carpor t off of the Alley.

BUSINESS ONLY $375,000

Danya Wolf (360) 708-8294

Mondo is a well- established and well-loved family-style restaurant at the foot of the Cascade Mountain Range Locals and travelers make this par t of their Hw y 20 and Nor th Cascade National Park trip. Major ar terial choice to Newhalem and continue on to Winthrop; or cross the Skagit River bridge and continue up to Cascade Pass and hiking to Stehekin. The restaurant is warm and inviting, with incredible fare. Ver y spacious dining area. Some outside seating available Small gift shop area. The kitchen is beautifully remodeled New flooring and ex terior lighting MLS#2038466

24017

Many investment possibilities with this home & proper ty: Classic 4 bed/2.5 bath farmhouse style 2560 sq. ft. home with east-facing deck on 1.76 acres. Home offers kitchen w/island & ceramic tile floors, office, bonus room, mud/laundr y room, living room with propane fireplace, built-in bookshelves & beautiful laminate over hardwood floors Detached building per fec t for office or studio. The proper ty features a 16,000+ sq. ft. pole building with its own water, power & septic Pole building includes a large, insulated shop area & expansive ex ternal parking area; RV hook-up at the east end, per fec t for guests. Potentially income -producing proper ty. Special Use permits were previously approved for home -based businesses (in 1995 & 2010). MLS#2028784

Nice level backyard with garden space and a large Birch tree providing shade and helping the house stay cool in the summer. Conveniently located with easy access to shopping, restaurants, hospital, and I-5. MLS#2072106

31835 e MaiN St, Sedro WooLLe y $535,000

2 bed, 1216 sf home with updated bath. New floor in kitchen & laundr y, new metal roof, new vinyl windows, tankless water heater. Garage 625sf, multi-purpose bldg 880sf, 450 sf guest house w/1 bed/1 bath and living area. Fenced yard, .66 acre lot. MLS#2072474

triNit y LaNe, Sedro-WooLLe y

729 N 16tH St, MouNt VerNoN $355,000

Carla Fischer (360) 982-0010

JoAnn Boudreau (360) 391-0746

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