Urban Living

The Fed did this! The Fed did that! Rates are up! Rates are down! Aaaagggh! Okay, now exhale.  In turbulent economic times the media can’t wait to report what interest rates are doing.  Pundits prognosticate, forecasters forecast and soothsayers sooth.  When should you buy a home based upon interest rates and when is it the right time?

The fact is that interest rates, while important, have little impact when it comes to buying a home.  Alright, alright, I’ll admit: it’s important…but it’s not a deal-killer.

There is a fixation on what rates are doing.  A fixation on what rates will be in the future and what rates were in the past.  I’ve heard potential home buyers tell me, “I’m not sure I want to buy now because rates are ¼ percent higher now and I think I’ll wait.” I say,  “Wait for what?”  I say let’s not look at the rate but instead concentrate on what that rate actually represents … your monthly payment.

Let’s look at what an interest rate move of ¼ percent really does to a $200,000 mortgage.  Say a 30-year interest rate at 6.00 percent “jumps” to 6 ¼ percent. Shall we sit on the sidelines, thinking such a move is suddenly unaffordable?  No.  The payment on a $200,000 loan “jumps” by about $32 a month!

Now let’s get a bit more draconian and look at a ½ percent increase and the monthly payment increases by $64.  Putting that into daily financial terms, $64 is about a tank of gas. While not insignificant, it’s hardly a reason to stay on the sidelines of home ownership. Right now, buyers should have more urgency than ever. Home prices have declined enough to make buying more affordable than it’s been in recent memory and interest rates (whether at 6 percent or 6 1/4 percent) are historically low. It’s time to act.

Are rates important? Sure they are.  But are they the end-all?  Heck no.  Interest rates over the past few years have been in a very tight range, with few major swings.  Just remember what interest rates represent, your monthly payment, and pay less attention to the headlines.

You’ve watched the news and read about it in the papers. You know, the “credit crisis” and how buyers need 20 percent down in order to buy a home? And even if you found a buyer with 20 percent down, lenders aren’t making loans anyway. So, why bother, right? Wrong!

We’re right smack in the middle of what just might be the biggest disservice ever perpetrated on potential home buyers.  It seems the press just can’t get enough of all the gloom and doom in the housing industry.  The fact is that mortgage money is as available today as it was a year ago and loans are being made this very moment with little or no money down. And, no, platinum credit isn’t required.  You just need to know where to look.  Who are these lenders? They’re right down the street.

Federal Housing Administration (FHA) loans are exploding onto the mortgage scene; recent estimates are that one out of five mortgages are FHA loans. FHA loans never went away, their reemergence is a result of the collapse of the sub-prime market. FHA doesn’t technically have a minimum credit score, although, in practice, lenders won’t approve an FHA loan with a credit score below 500. But that’s a far cry from the notion that an 800 score is the only thing lenders care about.

The best part?  FHA only requires 3 percent down. 3 percent. And that 3 percent can come in the form of a gift or grant.  FHA borrowers only need to have $500 in a transaction.  All the while, FHA mortgage rates are as good or better than their conventional counterparts.

Low or no down payment, extremely competitive rates and easier qualifying.  No wonder FHA is moving up the charts!

Please contact me if you would like more information about FHA loans or help getting into your first home.

It’s the perfect time to take the Buy New Buy Now Tour, April 19 to 20 and April 26 to 27 from noon to 6 p.m.

Sponsored by the Master Builders Association of King and Snohomish Counties, this tour represents some of the area’s finest new home construction in all price ranges. Whether you’re in the market for a new single-family home, condo or townhome this special free event will help you get an idea of our area’s exciting array of housing opportunities. It’s also a fun and easy way to give you ideas for the home you plan to build and maybe, find the builder that’s right for you! Contact me for the details or click here to visit Master Builders Association site.

As I shift my business towards Seattle and Bellevue, so will the posts be about these cities. Snohomish county has experienced a decline in the demand for housing, and when the demand goes down, so do the prices. It is definitely a great time to buy. The selection is fantastic, and the prices are good too. They’re certainly better than a year ago. Currently I have a few short sales available. A short sale is a sale, where the buyer gets a great deal on the home they buy, and the bank looses some money. It is my responsibility to negotiate with the bank and see that they will agree for this type of sale. This is similar to reposessed properties, where you as a buyer get a great deal. For a seller, I can help you avoid the foreclosure and deficiency judgement. Please visit www.NWResidences.com to see the list of homes I have listed for sale. Let me know if you’re interested in taking a look at any of them, or if you’re in financial trouble and you need my help of avoiding foreclosure. Thanks a lot.

A few days ago Seattle Times posted an article about home prices declining in Puget Sound. Sometimes media ads their own twist on things, so I am writing this post to clarify things for you - readers. Prices of homes in Puget Sound have been declining since early spring of 2007.  You can find the copy of the article by clicking here.

I checked out Blue Angels air show yesterday. I go every year to watch this awesome show. This year I happened to go to Mercer Island and watch from Luther Burbank Park. This place is great because I did not have to struggle with parking situation and there is a beach and of course, the water, so that if you get hot, you can swim and cool off. There are picnic tables there, so even if you go with kids, you can be comfortable. The view is not the greatest, but it works. I think that the only better way to go about the Seafair, and       4th of July fireworks show at Lake union is to drive a truck or SUV and have your bicycles with you. Park somewhere and ride a bike up close. Any ideas from you? Leave your comments. Thanks

 Pavel Vasilyuk

Two days ago I went to see Seattle Street of Dreams. You would think that the houses would be so nice that a person would want every one of them. Well, it isn’t so. This year the houses are all under two million dollars, where last year they were around five million. Out of the 5 houses showcased, only two are actually nice. One gave me the impression that the builder or designer had no taste in what they were doing. Another one I would’n pay more than a million for it. Last one had great outdoor living area, but lacked in design inside. 

         For those that are planning on going to this year’s Street of Dreams, I have $3 off coupons. All you need to do is email me at Pavel@kw.com, or call me at (206)406-8664 and I will give you as many as you need.

         For current real estate information, newsand listings, visit my websites, whichever you like          www.RealtorPavel.com         www.NWresidences.com     www.IntegrityRealtyCrew.com

Today’s post is about Alki Beach in West Seattle. This is one of the few best places to live and hang out if you like to live practically on the beach. Across the street from the beach are different restaurants, bars, cafes, bakeries and more. The beach is sandy in one place, but covered in little stones in another area. On the weekends, this is a get-together spot for friends. Across the water you can see downtown Seattle. This is a gorgeous place.

           Condos in this place are supprisingly affordable. They start at $200,000 and go up to over a million for a really nice one. This is a great area if you enjoy watching the water, boats, and people strolling, jogging, biking down the beach. It’s also great for sunbathing and then cooling off in cool water. You can search for homes in this area on my website NWresidences.com. If you have questions, leave them in comments area, email to pavel@kw.com or call me for a free, no obligations consultation at (206)406-8664.

Seattle annual Street of Dreams is open. For those that don’t know, it is a showcase of top builders and architects, as well as some additional vendors that hosts 80-100,000 people every year and benefits organizations that help children in need. This is truly a magnificent show of talent, creativity and skill in construction and decorating of residential homes. These top homes are for sale at a very reasonable price and all sell very quickly.  2007 Seattle Street of Dreams is located in the brand new community of “Quinn’s Crossing”. Five eco-friendly show homes, ranging in size from approximately 4,200 - 4,750 square feet are featured. The show homes are priced up to $1.975M with each home uniquely designed and displaying the latest trends in architecture, interior design, home technology and landscaping.  Street of Dreams is open daily from 10 AM to 9 PM July 14th through August 19, 2007. Visit SeattleStreetofDreams.com for more information and to buy tickets.

            I recently listed two houses for sale, and I have to say that it has been an awakening for me. What I personally realized is that homes are not selling so quickly as they used to. One house has been for sale for 60 days, and another one for seventy, and very few people come look at them. No offers to purchase yet. This is totally different from previous years. Further, aggressive pricing does not work in market like this. You have to price the property on the low end of price range if you are serious about selling it.

        We are heading into the buyer’s market. This is unusual for many sellers in Seattle area that have gotten used to houses selling fast without much effort to sell them. Sellers will not only have to price their homes well, but prepare the house to look really good, to appeal to prospective buyers. Inventory of homes on the market has doubled or even tripled, without additional buyers on the market. Staging a home to look like a model home is a good thing to invest into when putting a home on the market. Also, fixing anything that’s broken is necessary. No longer will buyers buy a home that smells ar needs new carpet, unless of course it is priced really low, which is not typical. Most sellers that I’ve seen price the house at the top of the price range and say that they will credit some money for new carpet. That won’t work. Now sellers need to change carpet and possibly paint the house to generate any interest from the buyers. Leave your questions or comments below, or visit my website to request booklets about common seller mistakes to learn more. Thank you.

Pavel Vasilyuk

www.realtorpavel.com

www.integrityrealtycrew.com

www.nwresidences.com

pavel@kw.com