We're well into 2014 and the real estate market is off to a great start. Now that the holidays and Superbowl celebrations are behind us, more people are starting to think about buying and selling homes again. Matthew Gardner, of Gardner Economics, recently gave a presentation with his predictions for the coming year for our area. In summary:
"Regional Employment Situation: Seattle remains one of the best west coast locations relative to potential growth; overall, we are looking better than a vast majority of states in the union with the metro area & I anticipate over 35,000 new jobs (2.5%) in 2014."
In addition, Mr. Garnder predicts that interest rates will climb, inventory is still low but will increase a bit, and prices will increase this year in the mid- to high-single digits. Even with prices going up, he does not forsee a housing bubble forming.
By all reports we've seen, we are at least two years into a great housing market with 2014 continuing the trend.
What’s one thing that sets Windermere agents apart from the general population of real estate agents? For one thing, all Windermere agents follow the National Association of REALTORS® strict code of ethics that is based in professionalism and consumer protection.
To further reinforce our commitment to clients, Windermere has built upon the REALTOR® Code of Ethics by establishing what we call our Windermere Standards of Practice. Within these Standards of Practice is an outline of how we believe clients deserve and expect to be treated. It is intended to provide total transparency about how we do business, while letting clients know that Windermere agents hold themselves to an even higher level of competence and accountability.
Our commitment to these standards is part of what sets us as Windermere agents apart and guides our daily activities. It draws a clear picture of our culture and what our clients, colleagues, and community can expect from us. In turn, we trust this translates into a more satisfying real estate experience and peace-of-mind for our clients, knowing that doing right by them is our highest priority.
That's just one reason we choose to be Windermere agents – because we know that following these standards is a benefit to our clients and it meshes with our personal beliefs. It's just how we roll!
The Spring District is a new mixed-use development east of Downtown Bellevue. Construction began last year. This will be an amazing addition to the community – residential, retail, offices, parks, and a Sound Transit light rail station. When finished (in approximately 15 years) the site will cover 16 city blocks. The first phase of the project, apartments and office space, is projected for completion in 2015.
Check out the cool video: http://www.thespringdistrict.com/
One of the many questions buyers often have is about title insurance. Here’s a great overview from CW Title, one of our wonderful resources:
Title insurance is an insurance product that protects an insured owner (or lender) against various adverse claims, encumbrances, and defects against title to real property.
When a request for title insurance is received, we examine the title history to the property in question and issue a title commitment that reflects the title’s current status. This commitment displays who owns the property, any taxes and assessments due, unpaid mortgages, liens, easements, covenants, and any other matters that may indicate someone other than the owner has rights to all or part of the real estate under search.
When the commitment is issued, the seller and purchaser (or lender) agree upon which items can remain on the title and which should be eliminated. Once title is acceptable to the purchaser and/or lender, the transaction is closed and we issue our policy showing the condition of the title at the time of closing.
Unlike automobile or life insurance, title insurance is a one-time fee paid at closing of the transaction. In the Puget Sound Region, unless agreed upon otherwise in your purchase and sale agreement, typically the seller purchases the buyer’s title insurance policy. The buyer pays for a policy of title insurance for the lender (if any).
Why do I need title insurance?
When you buy a home, you want to be certain that it is safely yours. But even the most diligent search of the public records could fail to disclose a number of title defects such as a forged will or deed, a title transfer by someone under age, or a married person conveying real estate without his or her spouse. Fradulent impersonations. Undisclosed heirs. Invalid divorces. False affidavits. The list of potential problems that can surface goes on. Without the protection of title insurance, you'll be in jeopardy of losing your investment.
How long does title insurance last?
Coverage lasts as long as you or your heirs retain an interest in the real property and, in some cases, even longer.
Who pays for title insurance?
By custom, not law, the seller pays for the buyer’s Owner’s Standard Title Insurance Policy. Again by custom, the purchaser pays for the Title Insurance Policy insuring the lending institution providing the purchaser’s financing. Again this is by custom, and a buyer and seller may agree between themselves as to who should bear the cost of title insurance.
What is a title search?
A title search is a detailed examination of the historical records concerning the real property. These records include deeds, court records, property indexes, name indexes, and tax records, among others. The purpose of the search is to verify the sellers’ right to transfer ownership and to discover any claims, defects, rights or burdens affecting the property.
What kind of problems can be revealed?
A title search can show defects, liens, encumbrances and restrictions, such as unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land.
Are there problems that can be missed?
Yes. There are some “hidden hazards” that even the most diligent title search may never reveal. For instance, the previous owner could have incorrectly stated his marital status, resulting in a possible claim by his legal spouse. Other “hidden hazards” include fraud, forgery, defective deeds, mental incompetence, confusion due to similar names and clerical errors in the records. These defects can come to light after you have purchased your home and jeopardize your right to ownership.
How much could I lose if a claim is filed against my property?
That depends on the claim. In an extreme case, you might lose your entire home and property and still be liable to pay off the balance of your mortgage. Most claims are not that dramatic, but even the smallest claim can cost you time and money.
Are there different kinds of policies?
Yes. As a homeowner you have the option of choosing different types of coverage.
How do I know which policies to order?
For help in deciding which policy best suits your needs contact your title representative.
Does title insurance really protect me?
Yes. If your claim is accepted, the title insurance company may defend your title in court if necessary, at the company’s expense. Alternately, the title insurance company will indemnify you against monetary loss or damage due to covered title defects, according to the terms of your title insurance policy.
Questions? Give us a call or email and we’ll get you the answer!
This is a great synopsis of what's happening in the general Seattle market. The real estate news is near the bottom.
You may have recently received a little, white post card in the mail from the King County Assessor’s office: OFFICIAL PROPERTY TAX NOTICE. Were you shocked at the new value? After declining for several years, values are now increasing, a reflection of what’s happening in the market. Property tax valuations typically lag behind the market and don’t generally reflect true market value. They do, however, set the value of the property that is used to determine how much property tax you will owe the following year.
Think your property is overvalued based on what you’ve seen selling in your neighborhood? There is a new, online way to appeal to the King County Board of Equalization (BOE). Go to www.kingcounty.gov/eappeals.
The site has some great tools for looking at comparables. There is a step-by-step process to figure out if it’s even worth the effort of appealing. Check out the You Tube video for instructions: https://www.youtube.com/watch?v=j3fq83SCNCo#at=16
And here’s what the Seattle Times is saying about the process: http://seattletimes.com/html/localnews/2021192964_assessorxml.html
Also, we found the “Area Report” (one of the options at the top of the page) very interesting. It describes what went into the assessment process for your specific neighborhood.
Need more information on comparables or the process? Give us a call or email – we’re happy to help!
If you've been paying attention to the local and national real estate news, you'll know that there is a very low number of houses on the market for sale. And this is pushing prices up – yeah for sellers!
Why is now a good time to list your house? Here's a great video from the Washington Association of Realtors: 10 Reasons to List Your Home Today.
All areas of the eastside are defined as a sellers' market right now, with inventories ranging from 0.7 to 2.3 months of inventory (that means if no other houses were listed, then all of the currently listed houses would be sold with that time frame at the current rate of sales). A balanced market is defined as a 3-6 month supply of homes. Obviously, we need to add a lot of inventory in order to reach that.
So if you have been thinking of listing your home, this is the best time in the last five years to do it!