Paul Pival's Tacoma Real Estate Blog

Finding A Tech Savvy Realtor

2014-05-19T16:44:00.000-07:00

The modern day housing market has changed with home buyers typically having the upper hand. Years back, home shoppers had to call an agent to check out local listings and schedule a tour of homes.

Now with technological advances and the Internet, almost anyone can search for new or older resale homes, apartments, condominiums, and townhouses in the privacy of their own home via their home PC, smartphone or laptop.

If you want to sell your home, it certainly makes sense to hire a realtor that knows how to effectively market your home to today's buyer. A recent survey of home buyers conducted by The Real Estate Book discovered that fifty percent of them considered mobile tools to be an essential part of their home search. And of those, 98% percent thought their mobile device was a valuable tool with 78% of them viewing photos and videos of homes on their device. What is interesting for you to know is that 68% sought out a listing agent based on their mobile search.

Given that more half the buyers employ technology to do their shopping, it is imperative that you hire a reputable, market and tech-savvy agent that will have a much better chance of selling your home quickly and for the price you want. What makes a realtor tech-savvy? Here are a few tried and true factors to look for when selecting a technologically skilled agent.

Check For Their Website - Home shoppers are going to click on one of the first websites they see, so if a potential agent is not showing up when you do a search, chances are home buyers will not find them either. Poorly constructed websites will be passed over by buyers making you lose out on many potential leads. If the agent's website offers you to 'shop' at your own personal ease and enjoyment, know that buyers will be probably feel the same way as you do and stick around.

Social Media Setup - Simple interaction in the social sphere shows that your realtor knows how important online communication is to modern day buyers. After all, a good agent can utilize tools like Facebook, Pinterest, Twitter, or YouTube to highlight your home and further communicate their thoughts and ideas with a wider audience.

Solid Home Search Option - The most important tool for any truly tech-savvy realtor to have is a fantastic home search option. Remember, almost 100% of the market is turning to online searches to find a new home. So if you're agent doesn't have an easy-to-use search, you will be missing out on an unbelievable amount of traffic.

Presentation And View-Ability Factors - How does the prospective agent's use of technology properly market properties similar to yours? Are images presented in a tasteful, user-friendly way and/or do they offer professional-looking video tours of homes? For higher-end properties, are aerial video and professional photography used? Poor quality or grainy images, difficult navigational tools, long-loading applications will deter buyers from coming back to your realtor's website.

Make sure all tools available on the listing agent's website are mobile app friendly as well. Ask if their website will has been converted to HTML 5, which ensures all images, videos, and other information can be easily viewed on tablets, smartphones, PCs or any other device without installing special software. In other words, buyers will be able to see the same easy-to-navigate site on any device quickly and easily.

There are other small benefits, such as your realtor being able to update you via email or text message, so you can stay updated even if you aren't able to be involved in a full-fledged conversation. Finding a realtor that knows how to use the Internet, social media websites, and mobile applications can be easy if you think like a buyer. By "Mock" shopping online using web tools and thinking like a potential buyer looking for a house like yours, you can find a tech savvy agent to market your home.

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Orignal From: Finding A Tech Savvy Realtor

Are you friggatriskaidekaphobic?

2013-12-13T11:41:00.002-08:00

Today is Friday the 13th. Twenty million Americans are feeling unlucky today — people who suffer from friggatriskaidekaphobia.
. It's a 99-year-old word made up of a combination of the Norse and Greek roots words for "fear" and "Friday" and "13."

Folklorists say that the phobia itself is a combination of two separate superstition-induced phobias — 13 is unlucky in much of folklore and so is Friday. Whenever the first day of a month is a Sunday, there's going to be a Friday the 13th that month.

The number 13 has been unlucky for a long time. Numerologists point out that 12 is a complete number in Judeo-Christian culture: There are 12 months in a year, 12 hours on a standard clock, 12 Apostles, 12 tribes of Israel, 12 days of Christmas, 12 eggs in a dozen, and so on. There's something unsettling, even repugnant, about going just a bit "beyond completeness" — that's how academic folklorists rationalize the superstition, at least. The vast majority of skyscrapers have no 13th floor, and room number 13 is missing from many modern hotels as well.

As for Friday, it's unlucky in a handful of ancient cultures. In Christianity, it's the day of Jesus' crucifixion.

There have been 13 films in the Friday the 13th series.

There are always the traditional folk remedies to ward off bad luck today: burning any socks with holes in them, or eating some gristle while standing on your head, or climbing to a mountaintop. And here's the good news: There's only one Friday the 13th this year and one next year. Some years can have up to three of them.

Thanks to The Writer's Almanac for this information.

Tips On Downsizing For Buyers

2013-11-13T10:32:00.000-08:00

Is it time to downsize and simplify life? Are you ready to cut down on mortgage payments to ease financial burdens? Are you concerned with the cost of living increasing to the point you will not be able to afford your bigger home? Do you want to spend more time relaxing rather than slaving away on home maintenance?

Although most buyers want the most house for the lowest price, you might find the best deal by looking at a smaller-than-average home with smaller-than average monthly costs. It is easy to see that smaller homes are easier on the budget, have less environmental impact, and take up less time to maintain.

The major first step before buying is to know why you want to move into a smaller home so you will not be saddled with regret. There is a luxury side to low maintenance and a simpler lifestyle, so if you are ready to cut any emotional ties to your big house and reduce your possessions, you are on your way.

Know Your Living Costs

Start by creating a list of expenses and finding out what you can or want to truly afford. Whether you are on a limited budget, retiring or facing a drastically reduced income, you will need to know how much of your income is available for mortgage payments, utilities, lawn care, maintenance, and property taxes. Also be mindful of other monthly expenses like Homeowner Association fees and insurance. Many websites have mortgage calculators that provide mortgage and insurance payments to assist you.

Know How much Space You Will Need

Make a list of all pieces of furniture, appliances, sports equipment, tools, and household wares you cannot live without. It does not make sense to keep them just to store somewhere else unless you want to pay a monthly storage fee. The least desired possessions can be cleared out in advance, making your move that much easier. Determine how much space will be needed to have easy access to the most utilized things you own. A garage can double up as car space and workout room, for example.

Know What Size Home You Need

Depending on your lifestyle, your smaller home needs to work for you. If you prefer to be indoors most of the time, buy a home with more inside space with smaller outside space. If you love the outdoors, a small house with space for a large deck or pergola might be a good choice. If you are planning to have a home office sometime in the future, carefully consider the floor plans and flow of traffic. First-time home-buyers need to know how long they plan to live in the smaller home before the necessity to increase bedrooms arises. If you are retired, you might want a smaller kitchen but a roomier bathroom, or if you are not home much, you may want a larger bedroom.

Know How Much Yard You Want To Maintain

Postage-stamp yards have their advantages because they are easy to keep, whether you pay a neighbor kid to mow it or do it yourself with a small push mower. Watering a smaller space of grass keeps the water bill down as well. Keep in mind there are many ways to make yards more spacious, so do not pass up what appears to be a small lawn.

Know What Energy Efficient Appliances The Home Offers

Because smaller homes have less expense and up-front costs, making them energy-efficient does not require a behemoth budget. Sellers often update their smaller homes by installing new heating and air-conditioning systems and appliances with the latest energy-efficiency ratings to attract buyers. With all-around smaller costs for furnishings and utilities, you may be able to afford higher-end, state-of-the-art appliances.

A 2011 study by the National Association of Home Builders showed smaller homes are moving faster in today's tough economy because of their smaller price tags and lower ongoing monthly costs. Find a realtor that is knowledgeable in smaller homes that are Eco-Friendly to help you find a home suited to your needs. If you find several homes, do cost comparisons for taxes and utilities, to help you narrow down to the best fit for you.

Tacoma Housing Statistics for October

2013-11-06T10:42:00.004-08:00

It's A Great Time To Buy!

[VIDEO 1 min] Here is your market video with the most recent activity for Tacoma, WA, Market Report!

Please click the link below to view and contact me if you have any questions regarding your next real estate transaction, I'd love to assist you with your real estate needs.

http://www.marketvideos.com/profile/paulpival@cbba.com

Short Sale Basics For Buyers

2013-10-23T12:32:00.004-07:00

Many homeowners, as an effort to avoid foreclosure, market their homes as a short sale. You can find a investment-worthy deals on houses headed for default.

You will be helping remove the financial burden from the previous owners and you most likely avoid some of the entanglements of a foreclosed property - e.g., a redemption period or the possibility that the previous owners will leave you with nothing but four walls and a foundation.

Briefly, a short sale is preferable to a foreclosure, even though you may pay a bit more than you would at auction. Here are a few tips for finding the best deals when you opt to purchase a short sale property.

Use a Realtor® - Although a short sale can interpreted to mean "terrific buy", there may be reasons that you do not want to purchase a property. A short sale certified real estate agent can uncover any crucial information beneficial to you. For example, they can find out if the property is going into foreclosure, or if the short sale is just a marketing trick used to help the owner sell.

Second mortgages on short sale home will mean dealing with a secondary lender. Even if the homeowner and the original lender sign off on the sale, the secondary lender will have to, too. Ask your agent how this situation is most effectively handled. Their experience with short sales will ensure that you don't get the short end of the stick.

Be Prepared to Wait - The biggest consideration for buying a short sale property should be your time frame to move. Buying a home that is close to foreclosure in a market in which home values have dropped significantly is not as easy as you might think. For starters, even if the homeowner accepts your bid, the bank that holds title may not and could lead to weeks or months of negotiation before you come to an agreement.

Never Give Cash - Any seller who asks you for cash or other payment up front is committing fraud. Since a short sale means that you are buying the house for less than what is owed to the bank, the homeowner will come out of the deal with no money. If demands for payment seem suspicious, they probably are, so do not work with any seller using this common scheme.

Deal With the Lender - Once the homeowner agrees to your purchase price and sign the paperwork, all further dealings will be conducted with the lender. They will also have to approve the terms of your offer and then you will pay them, not the homeowner, for title to the property.

Make a Short Sale Offer with a Strong Earnest Money Deposit - If you have a deposit amount of 1% to 3% of the sale price, you are letting the sellers know you are serious about purchasing the home. The minimum down payment for FHA loans is 3.5% of the purchase price, and the earnest money is part of that down payment. Make sure you have a reasonable down payment ready, if the property is what you truly want.

Agree to Put Your Deposit into a Trust Account - Some real estate contracts call for the earnest money deposit to be placed into a trust account upon short sale approval. Sellers like to see that you are committed to the transaction.

Check the Comparable Sales - Some short sale listings are deliberately priced under market value to attract buyers like you, but it doesn't mean the home will sell at that price. Do not be alarmed, though, because many banks will approve a short sale that is priced between 5% and 10% under market.

Inspections and Condition of Property - Any inspection you would typically ask the seller to pay for will lower the bank's bottom line on the HUD-1. The lowest offers are rarely accepted and the time to negotiate major repairs is not at offer inception. Do not ask for seller-paid pest inspections, roof certifications or home warranty plans but pay for them yourself. At the very least, you should avoid purchasing a property if the seller won't let you have it inspected. If you buy the home in "as is" condition, know that any damage and pre-existing problems become your sole responsibility that turns your "cheap" property into a money pit.

Banks Need Time for Short Sale Approval - Although it is possible to receive short sale approval within 3 to 4 weeks, many banks take at least 6 to 8 weeks, and sometimes longer, to approve or reject short sales Be willing to wait 120 days and be prepared to act immediately if approval arrives earlier. If you ask for approval in 30 days, your offer may get chucked.

Wait for Short Sale Approval - The biggest problem short sale listing agents and their sellers face if you decide to walk away. Do not write offers on dozens of homes, hoping to take the first offer that sticks, which is generally against the law unless the you can afford to buy all those homes. No short sale listing agent wants to work on a transaction for several months only to find out your offer was accepted but you have vanished upon short sale approval.

When You Make a Short Sale Offer, Do Not Ask the Seller to Pay Fees - Another mistake you do not want to make is to ask the seller to pay fees that are customarily paid by buyers. After all, the seller is not the one actually paying those fees on a short sale, it's the bank. If there are certain closing costs that the seller typically pays, the bank will most likely pay those fees. However, if you agree to pay part of those fees, even if the bank receives an offer identical to yours, your offer will net the bank more money.

Provide a Strong Preapproval Letter - There may be a pile of pre-qualification letters, but a lender pre-approval letter, which specifies you are actually pre-approved for a loan, stands above them all. It will ease the seller's mind to know that you are financially capable of closing the transaction. When you make a short sale offer, you want those pieces of paper to convey strength.

Shorten Your Inspection Period - Depending on your area, standard purchase contracts will give you a specified number of days to conduct inspections. That means the home is basically off the market while you do due diligence, and the sale is not considered solid until that contingency period has been removed. If you can do your home inspections within 10 to 14 days, your offer will hold greater appeal.

Remember These Things As Well:

Often (not always the case) the seller is in jeopardy of foreclosure.
The seller's lender(s) makes the final approval on sales price and all terms of the contract.
No one can guarantee that the short sale will be approved. The lender(s) can reject or counter the your offer.
The property can possibly go into foreclosure before the short sale process is complete.
Your agent, the listing agent, and the seller are NOT in control of how fast the process moves.
Buying a short sale home requires patience, so make sure you have plenty on hand.

Tacoma Housing Statistics for September

2013-10-08T17:06:00.000-07:00

How To Choose Between Two Homes?

2013-09-17T16:37:00.002-07:00

Buying a home is a major lifetime investment and so is finding the home that best suits your needs for years to come. What if you find two homes that meet your criteria now it is only a matter of choosing one or the other?

What final factors should you weigh in on to help you decide? Below are seven things to consider when comparing two homes to decide which one will become your new address.

Neighborhood - Rate the neighborhood in regards to safety and convenience to your lifestyle. List the advantages and drawbacks for shopping, entertainment/restaurants, city services and cost of utilities.

Schools And Work - Visit the local school district to gain more information about the school(s) your children will be attending. Compare the schools' success rate for teaching, sports, or other extracurricular programs that are important to your family.

Even if you do not have children, neighboring schools affect area traffic from buses and cars picking up students to speed zones and loitering. What is the driving distance to work or does it matter to you? Also, take into account drive times from work to schools, shopping and other appointments.

Appreciation - If the two homes are in different parts of town or different neighborhoods, ask your real estate agent to retrieve sales of homes in those neighborhoods over the past few years. If one neighborhood shows an annual average percent increase while the other shows twice the percentage, you may have your decision made.

Home Size - Compare the houses to other homes in the neighborhood. While it may boost your self-esteem to have the biggest house on the block, it's typically a better idea to stay away from purchasing the neighborhood monster. When it comes time to sell, you'll find that the lower the value of your neighbors' homes will shrink your home's value.

Seller Motivation - Ask your real estate agent how long each home has been on the market. If the home has been on the market for some time, the seller may be more motivated that the other seller.. Conversely, if the house has just listed recently, the sellers will probably wait for the best offer.

Knowing why someone is selling their home is key to making a good offer. Your estate agent might have additional information about the seller's motivation whether is is job-related or otherwise. Some sellers likely want to move as quickly as possible in certain situations, meaning you have a better shot at them accepting a lower price.

The House That Is A Home - First create a list of things important to your lifestyle, like 'family gatherings', 'privacy', 'sunsets', or 'relaxation'. Also, make a list of the amenities and attributes your home must have. If you want that first-floor home office, a large, open back yard for the kids, or a gourmet kitchen, be sure to include that on your list.

Then, rate how each house measures up to each need on your list. Likewise, make a list of the cons associated with each house and determine how much of a negative impact each will have. Other considerations may include ease of maintenance, parking, and homeowners fees.

Appointed Time Visits - Visit each home at different times of the day to get a feeling for how the house and neighborhood look and feel in the morning versus late afternoon or evening. Consider the amount of traffic the street has night or day. Even if the deal on the house you choose falls through, you may still have the other home to buy.

Tacoma Housing Market Report for August

2013-09-06T09:44:00.002-07:00

The Tacoma market continues to improve. The median listing and sales prices are up, sales are up, inventory turned over faster. Inventory is down. Sellers with correctly priced homes can expect to sell quickly.

If you'd like the selling details of the home that sold in your neighborhood, call or e-mail. I'll be happy to provide them.

Tacoma Market Report for June

2013-07-08T08:14:00.001-07:00

View Paul Pival, Realtor(r)'s Market Videos

Tacoma Market Report for May

2013-06-05T10:33:00.000-07:00

May Market Report

Activity in May this year increased by 29%, another significant increase.

This year homes closed 17 days faster.

Sellers accepted nine percent less than their original listing price.

There are 344 homes on the market in North and Central Tacoma and University Place, with an average listing price of $303,500 and a median of $202,000. List prices range for $50,000 to $5.4 million.

We're in a seller's market. Well-qualified buyers can still get mortgages at very low rates.

If you'd like the selling details of the home that sold in your neighborhood, just send me an email.

April Market Report

2013-05-15T12:34:00.000-07:00

April Market Report

Activity in April this year increased by 31%, a significant increase.

This year homes closed 24 days faster.

Sellers accepted five percent less than their original listing price.

Inventory has increased from last month, indicating a sellers' market. There are 315 homes on the market in North and Central Tacoma and University Place, with an average listing price of $319,643 and a median of $268,700.

The market continues to favor sellers, but well-qualified buyers can still get mortgages at very low rates. There have been a number of bidding wars reported.

If you'd like the selling details of the home that sold in your neighborhood, just shoot me an email.

2013-04-16T10:29:00.000-07:00

8 Dirty Secrets in Your Home

Steel yourself: We help you expose — and purge — your home’s dirtiest little secrets. Read

Visit houselogic.com for more articles like this.

2013-04-01T11:25:00.000-07:00

March Market Report

Activity in March this year slowed by four percent.

This year homes closed 47 days faster.

Sellers accepted seven percent less than their original listing price.

Inventory has dropped again. There are 218 homes on the market in North Tacoma and University Place, with an average listing price of $456,300 and a median of $329,000.

The market continues to favor sellers, but well-qualified buyers can still get mortgages at very low rates.

If you'd like the selling details of the home that sold in your neighborhood, just shoot me an email.

Tacoma Market Report for February

2013-03-13T11:30:00.002-07:00

February Market Report

Activity in February this year slowed by 18%.

BUT . . . the average sales price was four percent higher than last year's February. This year homes closed 40 days more quickly.

Sellers accepted nine percent less than their original listing price.

Homes continue to sell more quickly and at higher prices. Inventory has dropped. There are 220 homes on the market in North Tacoma and University Place, with an average listing price of $368,000 and a median of $225,000.

This market is favoring sellers, but well-qualified buyers can still get mortgages at very low rates.

If you'd like the selling details of the home that sold in your neighborhood, just shoot me an email.

Tacoma Market Report for January

2013-02-05T15:51:00.000-08:00

January Market Report

Activity in January this year increased by eight percent.

The average sales price was two percent higher than last year's January. This year homes closed 17 days more quickly.

Sellers accepted nine percent less than their original listing price.

Homes continue to sell more quickly and at higher prices. There are 405 homes on the market in North Tacoma and University Place, with an average listing price of $227,055 and a median of $246,750.

Indications are that this market is favoring sellers, but buyers can still get mortgages at very low rates.

If you'd like the selling details of the home that sold in your neighborhood, just shoot me an email.

December Market Report

2013-01-02T11:19:00.003-08:00

December Market Report

Activity in December this year decreased by 12 percent.

The average sales price was two percent higher than last year's December. This year homes closed 44 days more quickly.

Sellers accepted three percent less than their original listing price.

Homes continue to sell more quickly and at higher prices. Inventory is down to 275 homes in North Tacoma and University Place. The average listing price is $290,740 with a median of $218,800.

If you'd like the selling details of the home that sold in your neighborhood, just shoot me an email.

November Closed Transactions

2012-12-05T11:15:00.000-08:00

November Market Report

Activity in November this year increased by four percent.

The average sales price was 19% higher than last year's November. This year homes closed seven days more quickly.

Sellers accepted seven percent less than their original listing price

If you'd like the selling details of the home that sold in your neighborhood, just ask.

Homes continue to sell more quickly and at higher prices. Inventory is down to 333 homes in North Tacoma and University Place ranging in listing price from $50,000 to $5.4 million. The average listing price is $332,123 (up from $326,500 last month) with a median of $249,000 (up from $245,000).

The bottom line: shrinking inventory, rising prices, and record low interest rates on mortgages equals an improved housing market.

Are You Ready To Buy In Today's Market?

2012-11-23T11:28:00.001-08:00

By using a mortgage-qualifying calculator (mortgage-info.com), find out how much house you can afford. You typically will need a down payment of at least 20 percent, plus another 6 percent for closing costs, lawyers' fees, etc.

When you put less than 20% down, you have to pay for some kind of insurance to protect the lender from the higher risk that you may default. With FHA loans, mortgage insurance is built into the payment. With conventional mortgages, you will have to buy private mortgage insurance, but some private mortgage insurers are not willing to do business.

With credit issues and foreclosures running rampant, you should maintain a credit score of 760 or more. It is the minimum you need for a mortgage with the best interest rate. For free credit scores, try quizzle.com or creditkarma.com; see your credit report at annualcreditreport.com.

All financial experts agree that the important message for all home-buyers is that "you can't afford not to save." If you have nine months of expenses in the bank to protect yourself in case of job loss or disability, then purchasing a home will be worry-free for you and your family.

How long will you be in your home? If you will not have to move in the next five to seven years for work or any other reason, then you are ready to buy. Make sure you think through career change possibilities, whether you will be moving when you are done with school, or whether additions to your household will necessitate an upgrade soon.

If you move too soon, the costs you pay up front could result in a not-worth-it situation. If you are prepared to maintain the house in terms of time, labor, and expense and are able to set aside 1 to 2 percent of its value per year for upkeep, as well as emergency repairs or upgrades, then you are ready for home ownership.

Knowing the loan approval process can take weeks--if not months--to be completed will certainly test your desire to own a home. If you are on a tight deadline or looking to avoid any hang-ups, have all the necessary documents ready and completed. Having all of the paperwork in advance will ensure there are no delays which can be costly.

You should not assume a mortgage broker or lender will find or create the ideal loan for their financial situation. Mortgage brokers and loan officers will typically look at the usual programs available. You need to know what your goals are and all of your financing options with your lender or broker.

Are you prepared for additional costs? Understand all the fees that are included, what will be due at closing, or before closing, and the payment and amortization schedule. Sometimes there are fees that may come as a surprise to you. Lenders are required to provide borrowers with a "Good Faith Estimate" which lists the anticipated costs for the loan.

However, sometimes fees and other costs become an issue and inflate the total loan cost. You should compare costs with several lenders because the processing charge for collecting and packaging the loan information can cost between $500 and $1,000, while the underwriting fee can hit $800 to $1,500. Remember, though, the origination fees, application fees and the underwriting fees can be negotiated.

Do you have a stable budget? Is your income stable enough to make regular mortgage payments? Make sure that you can keep up with your payments, and that the reliable portion income can handle your mortgage. Do a mock budget with home ownership that includes estimated taxes, HOA fees, maintenance costs, utilities, repairs and other expenses on top of your monthly principal and interest payment.

October Closed Transactions

2012-11-02T14:53:00.000-07:00

October Closed Transactions

Activity in October this year decreased by eight percent.

The average sales price was 25% higher. This year homes closed 48 days more quickly.

Sellers accepted 11% less than their original listing price

If you'd like the selling details of the home that sold in your neighborhood, just ask.

Homes are selling much more quickly and at higher prices. Inventory is down to 389 homes in North Tacoma and University Place ranging in listing price from $54,000 to $5.9 million. The average listing price is $326,500 (up from $253,146 last month) with a median of $245,000 (up from $179,380).

Market Report for September

2012-10-02T12:26:00.002-07:00

September Closed Transactions

Activity in September this year decreased thirteen percent.

The average sales price was nineteen percent higher. This year homes closed 26 days more quickly.

Sellers accepted fourteen percent less than their original listing price

If you'd like the selling details of the home that sold in your neighborhood, just ask.

We have moved to a sellers' market. There are 878 Tacoma homes on the market today ranging in listing price from $39,000 to $5.9 million. The average listing price is $253,146 with a median of $179,380.

2012-09-05T10:42:00.002-07:00

August Closed Transactions

Activity in August this year decreased 9%.

The average sales price was 1% higher. This year homes closed 20 days more quickly.

Sellers accepted 13% less than their original listing price.

If you'd like the selling details of the home that sold in your neighborhood, just ask.

US Economic & Housing Market Outlook - August 2012

2012-09-04T11:51:00.001-07:00

The shadow inventory is creating uncertainty about the recent indications that home values have reached their bottom levels. The news regarding home prices has been good during the last quarter.

The House Price Index of Freddie Mac showed a good 4.8% increase from March to June, the best quarterly rise in the last eight years. Furthermore, things improved on a relatively broad level - 34 states as well as District of Columbia experienced higher values in the 12 months through Jun this year.

The improvement in market conditions is also recognized by other home-price metrics. There was a 2.5% increase from June-to-June in the Core Logic index (and up 3.2% when the distressed house sales are excluded). Different inventory measures indicate the presence of a shadow, however, it is not so foreboding. As a matter of fact, there has been a decrease in the shadow inventory. And, it is expected that the U.S. market may return to a good supply and demand balance in the near future, even if some local housing markets remain lopsided.

There is no widely accepted definition of "shadow inventory." One metric is the single-family housing loans that can be considered seriously delinquent - loans at least 90 days past the due date or going through the foreclosure process.

According to the National Delinquency Survey of the Mortgage Bankers Association, there are about 3.6 million loans (after an adjustment for about 88% survey coverage) that can be considered seriously delinquent as of Mar 31 of the present year. This number is about 1.4 million lower compared to the peak level at the end of 2009, but it is still considerably higher than the pre-2008 levels. These loans cast a long shadow on the housing market.

While there still remains the shadow, there is a difference between the current market and the market situation in the recent past: There has been a considerable reduction in the excess supply of vacant houses. According to the Census Bureau, the rate of rental vacancies has decreased to 8.6%, the lowest it has been since 2002's second quarter, and the for-sale rate of vacancy has fallen to 2.1%, the lowest it has been since 2006's second quarter.

The immense oversupply put a lot of downward pressure on home values and rents during most of the middle part to end of the first ten years of the 2000s. This scenario caused suppression of homebuilding. However, the comparatively small amount of new construction and the increased household formation has resulted in the absorption of the excess vacant inventory during last two years. At the national level, the for-rent market is now apparently in a comparatively good balance, with the rental stock in proximity to the overall rental demand.

This continuing decrease is important as it results in the real-estate-owned (REO) houses for-sale not going in competition with an oversized vacant home inventory in majority of the markets. Thus, investors may find REO houses more attractive as less number of vacant homes are available, and REO sales will have a lesser impact on other house sales or house values.

Furthermore, with the increase in overall sales in 2012 so far, REO makes a smaller portion of the sales: According to CoreLogic, REO had decreased to 13.5% of all sales in the country in May, the lowest share since Mar 2008. That's a good development as a smaller REO sales share usually increases house values, as either purchaser demand increases REO prices or decreasing REO volume decreases downward price pressure on other houses on the local housing market.

Even if there is a decrease in national indexes in the seasonally weak autumn and winter, it is expected that the dips would probably not be sufficient to cancel out the good second-quarter result on house values, meaning that the shadow on the housing market may finally be disappearing.

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Orignal From: US Economic & Housing Market Outlook - August 2012

2012-08-13T14:12:00.002-07:00

July Closed Transactions

Activity during July this year increased 3%.

The average sales price was 13% lower. This year homes closed 27 days more quickly.

Sellers accepted 7% less than their original listing price.

If you'd like the selling details of the home that sold in your neighborhood, just ask.

We have moved to a seller's market, with multiple bids being reported and inventory dropping. There are homes in the market for any budget. As of August 13, you have a choice of 424 single family residences priced from $60,000 to $5.9 M. The average listing price is $347,000 with a median price of $260,000.

How To Keep The Seller Interested When Buying A Home

2012-07-24T16:39:00.001-07:00

In recent years, the real estate markets have been favorable to buyers leaving some sellers reluctant to play ball, especially if the buyer uses tactics that turn sellers off.

Common pitfalls for buyers typically are offensive lowball offers, mortgage snags, and subtle upper-hand arrogance. Do not let these common mistakes keep you from getting the home you want.

By following a few simple guidelines you can keep the seller engaged in the transaction there creating a win-win situation for both parties.

Say No To Lowball Offers Strategies – Working with your real estate professional to find a good buy takes understanding how home prices are determined and what the dynamics are in your market. Making an offer depends on these factors, so the offer you make should have reasonable justifications. Lowballing the seller may cause them to think you are wasting their time making you look unfavorable from the start. No home owner can afford to accept a price far below the home’s worth.

Besides, some lower than low offers may end up nowhere when the seller will not respond with a counteroffer. Ask your realtor to explain market data, such as the average ‘list price to sale price’ ratio or the average number of days homes stay on the market. Be realistic instead of hoping for a nod from the seller at your giveaway price offer. Remember that asking price is just that, but make sure the market data supports your lower offer.

Say Yes To Pre-Approval – On the financial end of real estate, being prepared is your best game plan. Even if your credit is decent and you have cash in the bank, do not assume you will be automatically approved for the amount of the loan you need to buy the house you want or worst case, a loan at all. If a seller accepts your offer only to discover you can’t get the loan, it can cause problems for you and them. Start smart by checking into mortgage options before you start looking for a home. See what banks or lenders can do for you by getting pre-approved for a loan. If you qualify for a certain amount, let your real estate agent know what price range to work from. Keep a tight hold on your spending, avoiding large purchases like cars or furniture until after the closing or consult with your lender if expenses

like these are necessary.

Be A Better Buyer

Dealing with sellers requires tactfulness and a little respect for them and their home. One common misstep of buyers is showing little consideration to the seller. Being late for appointments to view the home casts you in a bad light especially when the seller has to get things in show condition and then leave. Be prompt and do not make the seller shift their schedule to fit your tardiness.

Another is to view a home that you are not truly interested in. Sellers are assuming their house is under serious consideration by you. Don’t make an appointment just to see the layout or what patio looks like when the home is not what you want. Also, do not bring small children or pets to the showing. Sellers have entrusted their home to the realtor and the buyer for a space of time. Pets can leave behind undesirable tokens of their visit. Children should not be allowed to freely roam any occupied home. If they must come along, keep them at your side.

Trash-talking a seller’s home does not work to get a lower price. You may motivate the seller not to sell to you and you alone. It is their home and they may still be emotionally attached to all of its charm they felt when they bought it years ago. Comparing it with other houses regarding condition, sale price or your desired renovations should only be discussed with your agent.

If the home has obvious drawbacks to you, do not think that pointing them out will suddenly make the seller change the price. Keep your comments to yourself and make sure any reasons you give for a lower offer are factually based and legitimate. Keep the level of communication at a professional one by asking your agent to relay your concerns to the seller’s agent.

Understanding Mortgages

2012-07-12T11:45:00.000-07:00

Let’s face it, whether you’re a buyer, a seller or an agent – mortgages can be a confusing part of buying or selling a home.

This confusion is one of the biggest reasons why it generally takes a team of workers to get through the sale or purchase of a home.

While your agent is obviously well-versed and knows about mortgages they are still all kinds of nuances that only a mortgage professional will be aware of.

This is the primary reason we utilize professional mortgage brokers to help us get through the process and understand what’s going on. The government has decided to take initiative to reduce some of the uncertainty that makes mortgages so confusing and has proposed a new set of rules that will simplify things for everyone.

The Timing

These new rules were created by the U.S. Consumer Financial Protection Bureau and they are expected to be proposed this summer. Finalization of these rules is expected to happen as of January 2013, making mortgages easier for consumers and anyone else involved in the financing process to understand.

What Should Happen

With the implementation of these new rules things like mortgage points and fees will not only be more clearly explained and exposed to the consumer but make it easier to comparison shop. The intention of the CFPB according to Director Richard Cordray is, “to bring greater transparency to the market so consumers can clearly see their options and choose the loan that is right for them.”

The new rules will require mortgage lenders to offer a no discount point loan option. This means that it will be easier for buyers to compare offers amongst different lenders. Lenders will no longer be able to charge what we now known as points that vary according to the size of the loan either. The CFPB will allow only a flat rate fee or as the lenders call it origination fees.

Along with making points and fees easier and more evident to the buyer, the CFPB is also proposing placing regulations on the qualifications that are necessary for brokers and loan officers to attain.

Why The Changes?

The CFPB is concerned that mortgage loan originators have actually created a spider’s web of confusion that consists of fees and incentives which in the end translate to less than favorable terms for the buyer. They want these changes to make how the mortgage companies handle your mortgage more transparent and obvious to you, the consumer.

While the CFPB had attempted to help consumers with the Truth In Lending Act, which became effective in April 2011, they realized that these particular aspects of lending hadn’t been addressed. Too many consumers were still walking away confused. These new rules will help to alleviate any conflict of interest along with making the structure and terms of the mortgage easier to understand and more transparent.

End Result

The end result of these new rules should help the consumer and anyone else that is a part of the transaction feel more comfortable and in control. It should help to alleviate any originators that may not necessarily have the best interest of the consumer at heart and keep them from being able to hide behind certain terms and fees. This is definitely a plus for the consumer when it comes to finding and comparing mortgage providers.

Paul Pival's Tacoma Real Estate Blog

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US Economic & Housing Market Outlook - August 2012

July Closed Transactions

How To Keep The Seller Interested When Buying A Home

Be A Better Buyer

Understanding Mortgages

The Timing

What Should Happen

Why The Changes?

End Result