The 3.8% Tax

Beginning January 1, 2013, a new 3.8 percent tax on some investment income will take effect. Since this new tax will affect some real estate transactions, it is important to clearly understand the tax and how it could impact you. It's a complicated tax, so it will have a different affect on all buyers and sellers.

Attached is an informational brochure.  On the following pages, you'll read examples of different scenarios in which this new tax - passed by Congress in 2010 with the intent of generating an estimated $210 billion to help fund President Barack Obama's health care and Medicare overhaul plans - could be relevant to you.

Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.

Download Pamphlet Here

Fixed-Rate Mortgages Remain at or Near All-Time Lows

30-year fixed-rate mortgage (FRM) averaged 3.88 percent with an average 0.8 point for the week ending March 8, 2012, down from last week when it averaged 3.90 percent. Last year at this time, the 30-year FRM averaged 4.88 percent.

15-year FRM this week averaged 3.13 percent with an average 0.8 point, down from last week when it averaged 3.17 percent. A year ago at this time, the 15-year FRM averaged 4.15 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent this week, with an average 0.7 point, down from last week when it averaged 2.83 percent. A year ago, the 5-year ARM averaged 3.73 percent.

1-year Treasury-indexed ARM averaged 2.73 percent this week with an average 0.6 point, up from last week when it averaged 2.72 percent. At this time last year, the 1-year ARM averaged 3.21 percent.

Did you know? If your credit score is around 620, your interest rate will be approximately 1.4% more than a credit score of 720. Over the life of a $300,000 mortgage, you'll end up paying an additional $91,000!

Washington homebuyers realizing “market may have reached bottom of cycle”

KIRKLAND, Wash. (March 5, 2012) – With spring on the horizon and consumer confidence on the rise, members of Northwest Multiple Listing Service are reporting positive gains in activity. Pending sales for February increased more than 27 percent from a year ago, more sellers are listing their homes, and brokers are reporting an uptick in multiple offers.


“Buyers are beginning to realize that we may have seen the bottom of this real estate market,” remarked Frank Wilson, a member of the Northwest MLS board of directors. “Waiting to buy may only result in paying a higher interest rate, having fewer houses to choose from, or finding that sellers do not need to give up as much as they have in the past,” he added.


Brokers reported 7,623 pending sales during February, the highest volume since August when they notched 7,632 mutually accepted offers. Last month’s tally jumped 27.4 percent from twelve months ago, with 20 of the 21 counties in the MLS service area reporting double-digit gains.


“The only thing tempering this from being a hot, thriving market are the short sales and foreclosed properties which represent about one-third of the transactions,” Wilson commented.


Buyers have fewer homes to consider compared to a year ago, with inventory down 22.5 percent area-wide. At month end, there were 25,510 active listings in the Northwest MLS database; a year ago, there were 32,922 homes and condos listed for sale.

REALTORS + Blood, The Radio Interview

I'm feeling extremely blessed to have had the opportunity to speak this morning on KGY with Smilin J and Tori Fairhurst of the Puget Sound Blood Center about the Thurston County REALTORS Association's upcoming mobile blood drives.  Here's the link to the 15 minute Piece:

How Much Is Enough?

There is no doubt about it: this is a buyers market.  Buyers have their pick of anything and everything on the market today.  So if you are in the market to sell, listen up.

It's our responsibility to sell your home in the shortest amount of time, at the highest possible price and the best terms available.  

The condition of the home, your responsibility, must be the best it can possibly be.  Case in point:  We listed this beautiful South Olympia home in one of the most desirable neighborhoods in the Olympia area.  This home is an estate and the heirs were understandably hoping to do as little as possible in preparing the home for sale.

From the first day we entered this home, we suggested the owners remove the carpet (installed in every single room) to expose the gorgeous hardwoods underneath.  After a few months on the market and no offers, our clients took our advice and the first buyer to see the home with the floor modification made an offer.

As trusted professionals in our industry, take our advice.  You'll be glad you did.

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Hot Off The Press

RE/MAX and This Old House have teamed up to co-brand a new do-it-yourself consumer magazine, "Maximize Your Home with RE/MAX," to help me connect with you.

In addition to a number of helpful articles for homeowners, the magazine includes a letter from RE/MAX CEO Margaret Kelly, a RE/MAX ad featuring the J.D. Power and Associates awards, and a Lowe’s ad offering a 10 percent-off coupon.


If you haven't received your copy, please let me know so I can send you one.

FSBO In This Market?

Consumers have been using REALTORS for over one hundred years; there must be a reason for this.  Before searching online or skimming the yellow pages for the best looking real estate agency, a person must be knowledgeable of the agent & company they are choosing to represent their biggest investment.  You won’t find any inexperienced agents in our RE/MAX Office.  But you will find synergy – the kind that occurs when the best work with the best, sharing the support & services of the world’s premier real estate organization.  Over the past 35 years, RE/MAX has grown from a single top producer to nearly 95,000 agents.  That’s more than 95,000 professionals, averaging twice the experience & three times as many sales per agent as other real estate agent in the United States.

Many homeowners decide to market their homes independently in order to save money by not paying the real estate agent’s professional fee for services.  Buyers in today’s market are working with professional agent to find a home.  We have all the tools for a successful sale.  Why would a buyer go to a ‘for sale by owner’ when there are over 1200 homes for sale in Thurston County listed in the NWMLS?  Obviously they are looking for a deal & there’s just no such thing as a deal.  Frequently the job of selling your own home is extremely difficult because of emotional involvement.  Retaining objectivity throughout negotiations with a buyer is not always easy.  I can negotiate in three party transactions without getting emotionally involved as a seller easily could.

Even if successful, will they ever know with certainty that they received the highest possible price?  I can assist in this process by getting price data on sold comparable properties & helping create a marketing plan for their home.  First identifying it’s selling features.  Then decide who the potential buyers are & how they can be reached.

Should they advertise and if so, where?  What will the marketing strategy be and to who?  Will they hold open houses?  Open houses will allow them to meet all their neighbors, as well as those who just like to “kick the tires” off of the local real estate market.  At my office, we’re constantly developing new promotional tools, implementing new advertising strategies & introducing new technologies to keep us “Out in Front” of the competition.

Finally, when a seller tries to sell & market the home on their own, they are not equipped with the mandatory Washington State forms such as the five page real property transfer disclosure statement & the lead based paint disclosure.  Unlike our major competitors, RE/MAX is still led by the same team who created it 35 years ago.  The concept was to attract the top agents in the profession who felt that they wanted to have total control over their sale and marketing efforts.

Isn’t the decision easy?  Call me & you’ll have an agent for life.