Seattle Real Estate News

Since March of 2020 and the COVID-19 Pandemic, "normal" has been difficult to describe and for those thinking of buying a home over the last few years, the market has been anything but what used to be though as "normal".  Property appreciation ascended rapidly due to high demand and lack of inventory  and mortgage rates jump significantly due to economic concerns. 

To buy now or wait. Higher mortgage interest rates  generally mean a larger monthly payment. Mortgage rates change daily and PLEASE do not expect rates will come back down to 2021 level again.  There are options to lower your rate such as with temporary rate buy-down option or with an Adjustable Rate Mortgage (ARM). 

Your goal is to have a monthly mortgage payment that is within your budget and not to overstretch yourself financially leaving nothing for repairs, living expenses and emergency savings. If you can comfortably afford the mortgage payment, then now is the time to buy. Else, waiting would be more prudent. 

Timeline. If you are planning to stay put for only a year or two, in this current economic cycle, waiting would be more prudent. 

Housing market. Buying a house in a more balanced or "normal" market when you are up against 1 or 2 other buyers rather than 20 and where you can actually inspect the house may be better fit your risk appetite than buying during the 2021 housing market.

Ring video doorbells, Nest Hello and other connected security cameras are the fastest-growing home improvement gadgets since garage door openers. These cameras alert your phone when someone is at your door and save footage online.  Here are some tips from lawyers and city officials to make an ethical field guide for people who want technology to help us stay safe.  

1. Don't point your camera at neighbors. If your doorbell is located in an awkward place, you can try to use wedges to angle the camera toward your door. Some cameras let you mark zones to limit recording only to action that's important for your home. Also let people know that they're on camera and put up a sign to flag that you're filming might also deter a burglar. 
2. Share footage sparingly. Some people love posting clips of "suspicious/looking characters" on social network app. But are you actually an expert in what counts as "suspicious"? Sharing on these sites can help fight crime but also perpetuate racial profiling of actual crimes. 
3. When police get involved, it should be voluntary. Police should only access to your footage on a voluntary basis. Law enforcement doesn't have  aright to the footage without a court order. 
4. Delete old footage. The more you have the more vulnerable you are. You should only keep your footage for two months. You can always download and save the ones you want to keep. 
5. Keeping hackers out is a serious responsibility. Make sure that you update software, using unique passwords and taking other security protections. 
6. Facial recognition is not a product feature, it's a super power. The ability to keep tabs on a person's whereabouts by reading their face is a super power that we don't have yet the legal or ethical framework to handle. Initially, our cameras will offer to flag family members faces. Next, they'll link to a few public databases such as a terrorist watch list, missing kinds and sexual offenders The real question is who gets to make those lists and how accurate are the systems flagging people? 

• The No.1 regret across all generations was buying a property that was too small. 
• The second most common mistake was not saving enough money before buying their first home. Most buyers anticipate the money the'll need for their mortgage, homeowner's insurance and taxes but they don't always budget for home maintenance and repairs. As a general rule of thumb, most financial experts suggest saving at least 1 percent of the home value annually for repairs. 
• Homeowners spent the most money on new appliances (16%) during their first year followed by replacing the roof (13%), replacing a furnace or air conditioner (11%), landscaping (10%) and replacing flooring (9%). 
• Nearly half said they spent more than their budget during the first year of home-ownership. 

• May 24: Commanding 10.5% seller premium.
• May 31: Commanding 10.7% seller premium.
• June 20: Commanding 10.6% seller premium.
• June 28: Commanding 10.8% seller premium. 

Some of the important steps to homeownership include:

• Getting approved for a mortgage.
• Choosing the right real estate agent.
• Finding the right home that fits your budget.

Here are 5 tips first-time homebuyers should avoid:

1. Budget.  Your monthly payment consists of principal, interest, property insurance, taxes, and homeowners association dues (if applicable). Keep in mind that here in King county, property taxes are not fixed and tend to go up every year. In addition, you have to incorporate property maintenance and utility bills into your monthly budget.
2. Looking for a home first and a loan later. Often, first-time homebuyers "are afraid to get Pre-Approved" for fear of denial or qualify for a loan smaller than expected. No real estate brokers (with any common sense) would show houses to first-time homebuyers without a solid Pre-Approval Letter.  Please consult me for your Pre- Approval letter.
3. Not getting professional help. You will need a reputable real-estate agent and a good mortgage broker (as a start). In general, first-time homebuyers will need a selling real estate broker (not a listing broker). A selling broker represents a homebuyer (you) and will only work for you (don't worry - you do not have to pay their commission since it will be paid by a home seller). If you hire an agent or loan officer without a referral from friends or family, ask the agent to provide references from previous buyers.
4. Using up savings on the down payment. I prefer if you put down 20% to avoid paying monthly mortgage insurance. However, spending all or most of your savings on the down payment and closing costs is one of the biggest mistakes first-time homebuyers make.  You can still put down less than 20% and not pay monthly mortgage insurance. It's crucially important that homeowners to have rainy day fund.
5. Violating any of these rules before the deal is closed. You found the house you wanted, the contract is signed and the closing is in 30 days. Don't celebrate by buying another big purchase on CREDIT. Lenders will re-pull credit reports before the closing to make sure the borrower's financial situation has not changed since the loan was approved. Any new loans on your credit report can jeopardize the closing.