Thai Nguyen Real Estate Podcast

A Word About Luxury Condos in Bellevue

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Tue, 21 Feb 2017 09:06:00 -0800

If you want to buy a luxury condo in this incredibly competitive market, don't be afraid to offer an extra $5,000 or $10,000-- it won't impact your monthly payment as much as you think.

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Today I’m coming to you live from the kitchen of a luxury condo in the heart of Bellevue to talk a little bit about these specific properties.

The average luxury condo in this area is going for $767 per square foot. The condo I’m standing in right now is 1,641 square feet and it’s priced at $1.6 million.

I frequently get questions from buyers asking if they should pay an extra $10,000 if they’re in a multiple offer situation. If you offer an extra $5,000, you'll pay $10 to $20 more per square foot. Make sure you break down those numbers along with whatever your interest rate may be to determine what your payment difference is.

Right now we’re in a seller’s market. Most of the properties we’re listing are lasting only about three to five days on the market, and we’re reviewing a lot of multiple offers. Make sure that you effectively understand the difference of payment so you’re not stuck paying an extra $5,000 or $10,000.

If you have any questions about this topic or are interested in buying a luxury condo, please don’t hesitate to give us a call. We’d be happy to help you!

What Can Home Equity Do for You?

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Wed, 18 Jan 2017 10:05:00 -0800

If you live in a home for a long period of time, you’re building equity off that home. Here’s how you can use that equity.

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How can you build wealth using your home?

When you live in your home over a long period of time, you’re building equity off that home. During that period, you’re paying more off the principal of that property instead of the interest. This is a useful way to pay down your mortgage and earn equity.

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You can use the equity of your home to
pay off debts and assets.

”

When you build a lot of equity, you’re able to take out a home equity line of credit out. This can allow you to pay off anything from a large asset—such as your car—to an outstanding loan debt. When you take a line of credit out of your home, you can also get a tax deduction off that amount.

If you have any questions about this topic or are interested in buying or selling real estate, feel free to reach out to us so we can discuss building your portfolio and achieving financial freedom. I look forward to speaking with you!

Thank You for Your Support in 2016

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Thu, 22 Dec 2016 11:26:00 -0800

Happy New Year and thank you for your support!

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I just wanted to take a minute to thank you for your support this year.

Thanks to you, I’ve been able to grow my team. We are able to provide great service while giving back to the community. In 2017, we are going to do so much more, and we would love for you to be a part of it.

For now, have a great New Year and enjoy the holiday season. We are going to rock 2017!

See you soon!

How Important Is a Sewer Inspection?

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Mon, 5 Dec 2016 15:49:00 -0800

Why are sewer inspections so important for your house? I've brought in a professional inspector to explain why the $200 inspections could save you tens of thousands of dollars.

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Today I wanted to take a moment to tell you about why it's important to do a sewer scope or inspection on a property. I've brought in an expert in Todd Vecchio of Sound Sewer Inspection to help me explain the process.

A sewer inspection is an important part of the house you're buying that you can't see, Todd says, and can have a value from $50,000 to $75,000. It's the one part of the house that has a very substantial value that you can't see.

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A sewer inspector will put a camera into
the system's pipes, like a colonoscopy
for the house.

”

A sewer inspector will put a camera into the system's pipes, like a colonoscopy for the house. The camera will travel every inch of the pipes, from where it leaves the house all the way to the street. You want to be sure the system doesn't have any cracks, breaks, or root intrusions. Root intrusions can be a big problem here in Seattle.

As Todd says, it's a really good $200 insurance policy to make sure you don't have a $30,000 problem out in the street. Along with the inspection, you'll get the video and a thorough report so that you get the total picture.

If you're interested in learning more or you have questions about sewer inspections for Todd, you can give him a call at (206) 619-9990 or email him at todd@soundswerinspection.com.

If you have any real estate questions for me or you're thinking about buying or selling a home in the Seattle area, don't hesitate to give me a call or send me an email. I would love to work with you!

Are You Thinking of Purchasing a Condo?

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Mon, 7 Nov 2016 08:49:00 -0800

Buying a condo can be a big purchase, and it’s important that you do your research before you make an offer. Today I’ll go over five things you need to know before buying a condo.

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Today I want to go over five things you need to know before you purchase a condo:

1. What are the HOA dues? What do the HOA dues cover? Sometimes they cover lawn maintenance and swimming pool upkeep while others cover water utilities and trash collection. The condo in the video is technically a townhome, so the HOA dues, in this case, are much lower. You would only have to pay $120 a month, but that’s because the HOA only covers landscaping maintenance in the common areas.

2. What is the rental cap? Make sure that each condo association you are interested in does not allow a lot of renters. When rental rates are high, the next person who purchases a condo in that complex will have a hard time getting financing, which could mean that you will have trouble when it comes time for you to sell the property in the future.

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The rental cap directly affects the
resale value of your condo.

”

3. How much money is in the reserves? You want to make sure that you look at all of the financial aspects of the condo association. The condo association should have enough money in the reserves for future repairs. Every two years, the condo will undergo an inspection, and if there is not enough money in the budget, you will wind up incurring the costs of repairs.

4. Are there any pending assessments? Pending assessments are very important; some associations that are five, 10, or 20 years old could need roof repair in the future. If there is not enough money saved up, there will be a pending assessment. You want to know when those are coming up because again, if there is not enough money in the reserves for repairs, you will have to pay out of your own pocket.

5. What are the rules and regulations? Do they fit into your lifestyle? Many condos have pet restrictions. Some may only allow cats and other small pets, while other condos allow dogs of a certain size. Some dog breeds may not be allowed in the condo. You will also want to ask about things like parking restrictions or whether or not you can barbecue on the balcony.

It is very important to do your research on these five items before you submit an offer for a condo. If you have any other questions about buying a condo or about real estate in general, give me a call or send me an email. I would be happy to help you!

Tips for Buying a Bank-Owned Seattle Property

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Tue, 7 Jun 2016 11:13:00 -0700

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Buying a bank-owned property can seem overwhelming, but it can be amazing to see the potential in the property come to life. Here are a few tips for purchasing bank-owned properties.

When your offer gets accepted on a bank-owned property, you absolutely must do a full inspection. In order to know everything that is going on with the property, you need to call the utility company to turn the utilities on. Usually, the bank will shut off the water and electricity to prevent leaks and other issues while the home is vacant.

The utility company will turn everything on for 24 hours. That’s when your inspector can go in, run the water, check the heating system, and make sure everything is working. It costs about $200 to turn the utilities back on for the day, and the inspection will cost about $450 or $500, depending on the size of the property.

The property we’re filming at today has a great layout with a five-piece master bath. When you look through a bank-owned property, don’t shy away from dirty carpets, holes in the wall, or mildew in the ceiling. Small issues like that are all fixable. Pay attention to things you cannot change, like the layout and the location, before making the purchase.

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Don’t get hung up on small

issues that can be easily fixed.

”

This property is listed at $388,000, which is a little high based on my market research. It is an active property and has been on the market for 155 days but the bank has not yet reduced the price. I think you could get this property at $325,000, and that would be a great value, especially considering that a similar, well-maintained property would run at $450,000 to $475,000.

I have been working with bank-owned properties for 11 years, and it is really fulfilling to see these properties get fixed up to their full potential. If you have any questions, give me a call or send me an email. I look forward to hearing from you!

Common Questions About the 1031 Exchange

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Mon, 23 May 2016 07:49:00 -0700

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Kevin Hummel is with McFerran Law here in Seattle, and he is a certified exchange specialist. Kevin helped me with my 1031 exchange, and he’s here to answer some common questions.

First off, why would you do a 1031 exchange?

In short, we do this to avoid capital gains. The 1031 exchange can save you tens of thousands of dollars. It’s a simple process that happens during the normal closing process. Then, Kevin steps in and works directly with your escrow company.

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The 1031 exchange can save you tens of thousands of dollars.

”

What kind of properties qualify for the 1031 exchange?

A 1031 exchange is set up for an investment property. That includes rentals, commercial properties, or properties that you are holding onto for long-term appreciation and value.

How many properties can you exchange? How long is the process?

There is no limit to the number of purchases or sales that happen during an exchange. To keep things more simple, however, consider limiting the number of properties you buy to three. You have 45 days from the close of the sale to identify the properties in the exchange. Then, you have 180 days from closing to complete the exchange. Once you close on the sale, you can use the money you saved during the 1031 exchange to purchase other properties, so long as the values line up.

Can you identify a property that is worth more than the home you sold?

Let’s say you sell your house for $300,000 and identify a $350,000 property in the exchange. Since that property is worth more than $300,000, you can do a partial exchange. In that instance, you would pay taxes on the difference between the two properties. In order to get a full deferral, you need to match the exchange value, which is the sale price minus the closing costs.

The three basic rules for a 1031 exchange are: purchase a property equal or greater than what you sold; use all the proceeds from the sale towards your purchase; and replace the debt that’s paid off on your sale, if you have a mortgage on it.

If you sell a property and decide to buy land, is that still a like-type property?

Absolutely, as long as the land meets the same qualifications as an investment property. Again, that means creating income, being used for a business, or holding the property for long-term appreciation and value.

What happens if you miss your deadline?

You will owe capital gains taxes on the property. The capital gains rate for most individuals is 15%. That is what we are trying to help you avoid.

Do you need a consultation before handling a 1031?

The consultation is not required. If you have a simple question about an exchange, you can call Kevin and talk about it. If you would like an hour long consultation, that will cost about $150 to speak with Kevin or one of his fellow attorneys.

If you have any further questions for Kevin, you can call him at 253-383-1200, or click here for more information. If you have any other questions, give us a call or send us an email. We look forward to hearing from you!

Instantly Upgrade Your Seattle Home Value

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Fri, 22 Apr 2016 11:35:00 -0700

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A lot of my clients in Seattle have been asking me how it’s possible to increase their Zestimate on Zillow. The Zestimate is created by an algorithm, and there is no ability for humans to manually alter the Zestimate for a specific property.

Zillow can't take features or upgrades on your property and compare them to other recently closed homes in your area, even though doing so gives you a more updated value on your property. Tax values and data from appraisals are used to place a value on your home, which really has nothing to do with its real market value.

However, you can go into Zillow and claim your home, which allows you to change the data on the website. Zestimates are notorious for being inaccurate, and this is one way to combat this problem. Simply follow the instructions in the video and update the features of your home. You can even add square footage from your basement and new pictures of your home. Within 24-48 hours your home value will change on the website.

If you want to find the true value of your home, I would recommend you reach out to me and I can run a comparative market analysis on it. That will be the most accurate way to find your home’s true market value.

We look forward to hearing from you!

What 3 Kinds of Bank-Owned Properties Can You Buy?

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Mon, 4 Apr 2016 09:14:00 -0700

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Today we are excited to discuss the three types of bank-owned properties you can buy here in Seattle. Each one is a little different, and could be a great option for you depending on your situation.

1. Short sale

When the owner of a home can no longer pay their mortgage, one option they have is a short sale. At this point, their home is worth a lot less than the home’s actual value. When you submit an offer on a short sale, the owner will sign off on it and it will then be submitted to the lien holder. The lien holder will then send someone out to make sure the home is priced at market value. One downside about short sales is that they often take 60 days and can take as long as 180 days to close.

2. Traditional bank-owned property

These are properties where the bank has taken ownership of a home, and puts the home back on the market. These homes are first come, first serve. However, make sure you do your inspection and understand what kind of work the property will need once you buy it.

3. Auction property

These properties are usually sold at a discount. This is a great option for cash buyers who have the money already. We can also work with lenders to get buyers a loan for an auction. You’ll have to put 10% down, but the mortgage company will cover the rest. There’s a chance you may be able to get the property for less than your loan.

There are a lot more details and nuances regarding these three types of properties. If you’re interested in buying a home like this, give us a call or send us an email. We’d love to hear from you!

Why You Need an Agent to Sell Your Seattle Home

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Mon, 14 Mar 2016 12:50:00 -0700

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Homes are flying off the market. This leads many sellers going the For Sale By Owner route. Today, we’ll go over the pros and cons of listing your property as FSBO.

For instance, if you sell on your own, you know you have a set number. If you get that price, you can walk away from the transaction without having to pay a 6% commission to the agent.

However, what you don’t know is that there are multiple buyers out there willing to pay more for your property. Since the market is so competitive, a lot of buyers make offers with an escalation clause. They are willing to up their offer in order to beat other buyers. We’ve seen properties sell for $50,000 above asking price. Not only that, most of these buyers will waive inspections and be flexible on the closing date in order to get the property.

If you list on your own, you’re missing out on these great buyers. Your agent will position your home to attract multiple offers, and work hard behind the scenes to keep the transaction on track. An agent can protect your interests and keep everything running smoothly.

Additionally, sellers in Washington state are required by law to fill out a seller disclosure statement. You can fill this out on your own, but if anything is filled out incorrectly and a problem arises later on, the buyer could sue you. An agent will make sure that the seller disclosure is filled out correctly.

Finally, when buyers look at houses, they don’t want to see the owner there. If you sell on your own, you will be responsible for showing the property. Buyers get very uncomfortable when they go to a property and the owner answers the door.

Ultimately, you can sell your home on your own, but hiring an agent comes with many benefits. If you hire an agent to showcase your property properly, there’s a 90% chance you will get more money than you would negotiating yourself.

If you have any questions, give us a call or send us an email. We would be happy to help you!

Where Is the Seattle Real Estate Market Heading?

Thai.Johnlscott@gmail.com (Thai Nguyen ) — Mon, 29 Feb 2016 13:29:00 -0800

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A lot of my clients are asking me about the current condition of the market. Today, I answer the five most common questions I’m hearing.

Is it a buyer’s or seller’s market? Right now, the Seattle market definitely leans in favor of sellers. We’re seeing homes come on the market and sellers are receiving multiple offers. In fact, one home I listed received between 25-50 offers in only seven days!
What does the housing inventory look like? I just recently reviewed the inventory for our area and found that there are more pending than active homes. This means there simply aren’t enough homes on the market for all the buyers out there!
How does the current inventory affect home values? In certain areas, I’ve seen inventory affect home values by 5-10%. I’ve listed a home that sold for $25,000 more than their neighbor’s home, which sold only months before. The home we sold received multiple offers at our asking price and it sold in five days! In other words, values have increased substantially!
How much money do you need to put down to buy? There are different loan programs for everyone. There are government loan programs where the government will help you with your down payment, including FHA loans that require only 3.5% down! VA loans ask you to put nothing down, if you’re active or inactive in the military. Of course, there are also conventional programs that ask for a little bit more down up front, but are still very affordable.
What do current conditions mean for our market? Since interest rates are low and there are great financing options available, now isn’t a bad time to buy if you are patient with the market. On the other hand, it’s a fantastic time to sell because home values are up and inventory is so low. It’s a great time to sell quickly and for a whole lot of money!

If you have any questions about the state of the Seattle market, or if you would like real estate assistance of any kind, please don’t hesitate to reach out to us. We would love to hear from you!