Ryan’s Capitol Hill Townhome for Sale
December 14, 2011
Listed at $499,000 this Pacific Northwest Craftsman styled town home sits in a prime location right in the heart of Cap Hill and with a walk score that has no equal.
The Glover Home original has upgrades with a brand-new kitchen, including Sub Zero refer, Viking (gas range) and stainless appliances, custom hardwoods, radiant floor heating and slab granite throughout plus so much attention to wood work detail in every space.
This home boasts a Large Master and custom Master closet(s) this home boasts roomy living and dining, separate floored bedrooms and awesome income generating potential with its size and location. Polish this off with a top floor balcony with sweet view and entertaining space. MLS #299974
Posted in Uncategorized | Leave a commentTRENDS Report: Time to Buy Multi-Family Housing?
December 8, 2011
Did you make it to the annual TRENDS conference this past Tuesday? The conference, which is the largest of its kind on the west coast, has been running for over 25 years. Our team spent the day meeting some of the 200 exhibitors and attending a sampling of the many available workshops.
Is this a Good Time to Buy Multi-Family Housing?
One session in particular struck home for the Pointe 3 agents–a talk hosted by Eric Smith, of Paragon RE Advisors, and Bob McGrouther, of Luther Burbank Savings. Geared towards investors of multi-family housing, the workshop aimed to answer a vital question: Is this a good time to buy an apartment property? While our brokerage typically focuses on single family housing, we thought this might be an interesting topic for those of you who are thinking of getting into this avenue of real estate investment. Here’s what we discovered as the session unfolded.
What’s Available Right Now?
First of all, the incredible interest rates that are available right now make this a great time to buy apartment buildings – but will there continue to be enough demand for rental housing? Although only 1,700 apartment units were built last year, there are 22,000 more scheduled to be completed in the next two years; meanwhile, demand based on job growth is only at 16,000 units. The current tri-county average price per unit is $114,000, with purchasers asked to put 25-30% down.
The Cap Rate / Interest Rate Balance
Another thing to take into account are the current cap rates. In 1990, the cap rate was about 8%; by 2009, it had dropped to 4%. There is a floor on cap rates, so we’re never going to see 0%, or even 2%; right now, the rates are at 5.5% in Seattle and 6.75% in the outlying areas. Today, we have positive leverage for the very first time–the cap rate is higher than the mortgage rate, which makes for an increased rate of return.
With the cyclical nature of interest rates, it’s safe to assume they will rise a bit in the future; but before they rise by much, the employment rate is going to have to be much more robust (and it’s estimated that we may not reach full employment until 2021). Based on what the Feds have told lenders, it will be 2014 before we see interest rates inch upwards at all.
Based on all this, it looks to us like there is a small window in the next few years where you’ll find great interest rates and a deficiency of units in the rental market. If you need advice, contact us!
Posted in Real Estate Advice, Real Estate News | Leave a commentCNN Loves the Evergreen State
December 2, 2011Wondering how our state measures up? Washington just scored big in CNN Money’s list of the top twenty small towns!
Last year, CNN Money came out with a list of the top 100 cities in the US. This year, they’re back with a list of the 100 best small towns to live in. The list was built by looking at a myriad of statistical data, and includes quaint locales all over the country–but Washington wins big when it comes to small towns, scoring three cities in the top twenty. We all know we love it here, and now we can put a value on why.
Number 9: Mukilteo
With a median family income of $104,939 and 2001-2011 job growth of nearly 14%, Mukilteo’s position right on Puget Sound makes for some gorgeous views, as well as convenient access to the Washington State Ferry lines. The city has a population of 20,310 and a median home price of $379,950. With reading and math test scores between 20-30% above the state average and a personal crime rate of one incident per 1000 people, Mukilteo’s residents describe their hometown as a wonderful place to raise a family.
Number 15: Sammamish
One frustration with small towns arises when residents become slaves to the commute. But with Microsoft, Boeing, and Amazon all headquartered a stone’s throw away, Sammamish (population 46,700) provides an alternative to Seattle for working professionals who want to balance their family lives and their careers. 2000-2011 job growth here came in at 35.18% (compare that to the Best Places average of 1.38%), with a median family income of $135,085 and home price of $535,000. Students in Sammamish do very well on standardized tests, scoring 50% higher in math than the state average, and the personal crime rate is actually zero incidents per 1000 people. While it is located further inland than nearby Bellevue, Lake Sammamish provides the views and recreational opportunities that define so much of our gorgeous state.
Number 18: Newcastle
While Newcastle also has strong job growth (26.13% between 2000 and 2011), high test scores (over 30% higher than the state average in math), and low crime rates, many residents would argue that the best aspects of Newcastle can’t be conveyed with a number. This town of just over 10,000 people backs up to Cougar Mountain Regional Wildland Park, 3,115 acres of gorgeous backcountry trails over and around Cougar Mountain in the “Issaquah Alps.” Located in King County just 13 miles from Seattle, this former mining town has a median family income of $111,939 and a median home price of $523,000. In addition to the park, residents enjoy a strong sense of community, with concerts and municipal events year-round.
To find out more, browse the statistics at CNN Money’s Best Places to Live: Money’s List of America’s Best Small Towns. Do you own property in one of Washington’s small towns? Tell us why you love it in the comments below.
Posted in Real Estate News | Leave a comment$28.8 Million Mercer Island Home Auctioned Off Today
August 30, 2011According to Puget Sound Business Journal, today a Mercer Island mansion valued at $28.8 million is being auctioned off.
Originally offered at $32 million, but then later decreased to $28.8 after construction finished, the home has been on the market for nearly a year. The home is approximately 14,000 sq. ft. and, in case you can’t afford the large price tag, you can take a peek at the house here.
The grounds include a dock for a 100-foot boat, two jet ski lifts, a 30-foot boat lift, pool, spa, outdoor kitchen and more. The home features some of the same technology features installed in Bill Gate’s house.
Posted in Property Sale | Leave a commentRyan Just Sold Queen Anne Townhome for $374,000!
July 28, 2011
Meticulous owner that has kept this spacious 2 bedroom/loft polished and like new. Slab granite throughout, stainless app. and gas range, beautiful lighting, tall vaulted ceilings perched on a corner lot with tons of windows and light everywhere. Roof top terrace with views of the cut, large outdoor yard and additional deck. A perfect room mate situation or investment property right next to SU and on the south slope of QA. Generous storage in every room making this a turn key & no HOA!
View more information here!
Price Change: Ashley’s Unit at the Klee is Now Listed for $249,000!
July 28, 2011
Ashley has Relisted the Klee Condo at $284,000!
June 6, 2011
Rent or Buy? A Capitol Hill Case Study
June 2, 2011
Is now the time to buy?
According to Standard & Poor’s Case Shiller Index, home prices are still dropping. And while real estate pundits rarely speak with one voice, the consensus among many experts is that smart buyers will continue to rent until the market really bottoms out.
Unfortunately, rental occupancies are on the rise, so landlords can afford to rent to the highest bidder, while slashing the little extras they once relied on to fill vacancies (parking spots, utilities, building amenities). As a result, we are living in a real estate market with dropping home prices and soaring lease payments.
So is now really the time to buy? The answer is yes… as long as you are going to be here for a little while.
We compared two properties, only three blocks apart on Capitol Hill.
| Apartment For Rent | Condo For Sale |
| $995/mo. | $238,000 |
| 700 sq. ft. | 633 sq. ft. |
| 1 bedroom, 1 bath | 1 bedroom, 1 bath |
| No dishwasher | Modern kitchen |
| Hardwood floors | Hardwood floors |
| Shared Laundry | W/D in unit |
On the surface, the apartment for rent looks like a better deal – and for under $1,000 per month with a great location, I can wash my own dishes. But our analysis proved otherwise.
Using the New York Times Buy or Rent Calculator, we plugged in current mortgage rates (4.1% for 30-yr fixed), and a 20% down payment.
In nine years, the financial benefits of buying outweigh those of renting.
After fifteen years, your mortgage payments save you $34,302. When we cut the down payment to 10% (because not everyone has $40k socked away), buying still beat renting. You could be saving $34,932 over the same fifteen years. If you have the job stability and commitment to plan beyond the terms of a 12-month lease, there is no reason to keep lining a landlord’s pockets when you could be building equity.
Take advantage of the lowest home prices since 2003. For those of us who cannot imagine living anywhere but here (especially now that the sun has started to come out again!) the moment to buy has arrived.
Ashley Just Listed a Condo at the Klee for $289,000!
May 24, 2011
5 Things to Avoid When Applying for a Home Loan
May 20, 2011You are feeling pretty happy with yourself.
You have searched for months and finally found the ideal home, you are pre-approved for the loan, and you have found the perfect sofa, wing backed chair and ottoman to accent your light-filled living room. Happy, happy, happy! But, before you get too giddy be warned – those fab furnishings may cost you your new home.
Fannie Mae has introduced “The Loan Quality Initiative” which requires lenders to pull a refreshed credit report within 10 days of closing. If there is a change in credit, it may affect your rate, point and/or loan approval. If you are depending on a mortgage to buy your home delaying major purchases is just one tip to note.
5 THINGS YOU SHOULD AVOID WHEN APPLYING FOR A HOME LOAN
1) Postpone Major Purchases
As mentioned above, it is wise to perhaps sit on your hands and even stay away from temptation (that would be outlets malls for me) while your home is nearing the final stages of closing.
Photo from Homeit.com
An increase in your debt to income ratio reduces the amount of monthly income available for your mortgage payment. If you tack on a higher credit card payment, the bank might decide you can’t afford the home.
Using cash to purchase the furnishings could also create a problem, since banks
consider cash reserves when approving your mortgage. Additional credit inquires must be explained in writing and may affect your credit scores. If you must make a major purchase before closing, talk to your loan officer before you do it.
2) Don’t Change Jobs Unless It’s Necessary
Lenders like to see a consistent job history. They aren’t usually as nervous if you change jobs within the same field. However, a new job may involve a probation period or change in compensation.
Most commissions/bonuses must be averaged over a 2 year period with the same employer or they cannot be used for qualification purposes. So, it’s better to stay put in the same job until the house is yours.
You can deal with your micro-managing boss a few more weeks ….right?
3) Don’t Move Assets From One Bank Account To Another
As your lender reviews your loan package, you will likely be asked to provide bank statements for the last two or three months on your checking accounts, savings accounts, money market funds and other liquid assets.
Photo from Armedforces-int.com
Money transfers show up as new deposits and may complicate the already complicated loan process. If a deposit is “out of the norm” given the recent history, you
must then disclose and document the source of funds for each new deposit. This practice was put in place to eliminate potential fraud as most loans require a thorough paper trail to document the source of all funds.
Changing banks or transferring money to another account (even if it’s just to consolidate funds) could make it difficult for the lender to document your funds.
4) Don’t Consolidate Your Bills
As an add on to number 3, just avoid consolidating your bills until after the closing. This process will have an affect on your credit. Your loan officer can advise you if this really needs to be done and if so, if it is possible to consolidate simultaneously with the loan closing date.
5) Don’t Pack Documents Needed for The Loan Application
While we all like to get a jump on the arduous process of packing in anticipation of our move, take note that important paperwork such as W-2 forms, divorce decrees and tax returns should not be packed or shipped with your household goods.
Your lender will need copies of these and failure to submit certain qualifying documents
Photo From FOI News
could cause you to lose the loan and the financing you need to buy your home. Sure, you may order duplicate copies of these documents but they could take weeks to obtain and this delay could be detrimental.
By educating yourself on the financing procedures and carefully following your lenders advice, the approval process should run smoothly. Then the hardest decision you will have to make will be choosing the sofa in a lush suede or stain resistant pleather.
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