10 Questions to Ask a Home Inspector

Congratulations - you're purchasing a home.  An important piece, whether the home is brand new or 50 years old or anywhere in between, is the home inspection.  Here are 10 questions to ask a home inspector before selecting the best inspector to work on your behalf:

1. What are your qualifications?  Are you a member of the American Society of Home Inspectors or National Association of Home Inspectors?
2. Do you have a current Washington State Home Inspector License?
3. How many inspections of properties such as this do you do each year?
4. Do you have a list of past clients I can contact?
5. Do you carry professional errors and omission insurance?  May I have a copy of the policy?
6. Do you provide any guarantees of your work?
7. What specifically will the inspection cover?
8. What type of report will I receive after the inspection?
9. How long will the inspection take and how long will it take to receive the report?
10. How much will the inspection cost?

As your trusted professional, here are a few names of home inspectors I work with in Thurston County:

• Brendan Marchant, Pillar To Post, http://greaterolympia.pillartopost.com/
• Dewayne Boggs, Boggs Inspection Services, http://www.boggsinspect.com/
• Peter Doane, Reality Check Inspection Services, http://www.wahomeinspector.biz/

Housing market righting itself as buyers, brokers get creative to compete

Housing around Western Washington is on an upward trajectory, but inadequate inventory “in the right prices and locations” makes for a “very difficult market for purchasers and brokers,” according to an executive with one multi-office real estate company.

New figures from Northwest Multiple Listing Service show inventory increased in May compared to a year ago, but brokers say competition is keen. “Multiple offers and escalation clauses occur on a regular basis for properties that are extremely well priced and in great condition,” reports Dick Beeson, principal managing broker at RE/MAX Professionals in Tacoma.

4736 Remington Lane SE, Lacey 98503

I listed and sold this home in 10 days

 

Mike Gain, a former chairman of the Northwest MLS board of directors, also commented on the bidding wars. “We are experiencing more multiple offers than I have experienced in my 35 years of practicing real estate in this marketplace,” stated Gain, the president and CEO of Berkshire. “This is a very difficult market for purchasers, our agents and brokers. If we had inventory to handle the demand our pending and sold numbers would be greatly increased,” he believes, adding, “We desperately need good quality inventory.”

Last month’s pending sales topped the 10,000 mark for the first time in twelve months. The number of mutually accepted offers totaled 10,373, outgaining a year ago by 328 transactions for an increase of almost 3.3 percent. Last month’s total was the highest volume of pending sales since June 2006 when brokers tallied 10,448 transactions.

With demand outpacing supply in many parts of the region, brokers are noticing more creativity among competing parties. “Offer review deadlines have become pretty commonplace in this market, as have pre-inspections and some agents and buyers are getting even more aggressive by submitting their offer prior to the deadline.”

There’s also an increase in the number of cash buyers, and buyers willing to waive their financing contingency, “making it even more difficult for the vast majority who don’t have this option.” With ongoing competition likely to continue, we expect agents and buyers to be “increasingly creative until the market becomes more balanced, which probably isn’t going to happen any time soon.”

MLS figures show months of inventory slipped to 3.33 from April’s figure of 3.46. In King County, supply stayed about even with April (1.78 months of inventory in May versus l.74 months in April). Snohomish slipped from 2.47 months to 2.37. Four to six months is considered to be a balanced market.

 
Fewer sales closed last month compared to a year ago (down 2.2 percent), but prices increased. Compared to April, the number of completed sales in May jumped by 997 transactions for a gain of 16.1 percent. Brokers reported 7,187 closed sales of single family homes and condominiums last month with a median selling price of $285,000. That sales price reflects a 3.6 percent increase from the year-ago figure of $275,000.

This Week In Your Wallet: Mortgages, Marriage and Moolah, Oh My by Jean Chatzky

If you’ve been reading the same papers I have this week, then you’ve likely noticed the headlines swirling about falling mortgage rates. The average rate on the 30-year fell to 4.12% according to Fannie Mae, the average on the 15-year to 3.25%. This is one-third of a point lower than the highs that hit late last summer, but also about a point higher than the lows of recent years.

What’s driving rates down? Not dismal economic news. Rates tend to fall when data is released showing that the economy is slowing – and rise when we get reports that it’s improving.  We got the latter this week. Consumer confidence is up according to The Conference Board. Durable goods orders are rising.  And, according to a recent Gallup Survey, the amount consumers are spending on a daily basis – at $98 -- is at a six-year high and $10 over the April average.

The take from Bankrate.com: The markets don’t seem to believe the economy is headed for a roar -- more like a “slow growth, low inflation” period of the sort that supports bond prices (yields on 10-year Treasuries are akin to 30-year-mortgage rates). There’s also some sense that the housing market, while improving, has a decent amount of ground to make up before it’s fully recovered.

So what does this mean for you going forward? I was asked that question this week on Twitter: @natehyde wrote: Do you foresee the rates for the 30 yr getting into the 3’s?

I don’t, and neither do the forecasters at HSH.com. According to their most recent weekly post: “Will mortgage rates continue their slow downward drift next week? Probably. Are they confounding expectations, including ours? Yes….For our part, we think the [upcoming] news will be pretty solid, and both stocks and interest rates may firm a little bit.”

If you’re shopping for a loan, take a look at hybrid products that can lower your rate, while not dramatically increasing the amount of risk you’re taking. Last week, The Wall Street Journal wrote about a 15/15 adjustable rate loan from PenFed Credit Union. Like other ARMs (5/1s, 7/1s, etc.), it’s fixed for the first part of the term, then adjusts a single time. Right now, the starting interest rate is 3.65%. If you think (or even know) that you’ll be out of your house by then, that can be a smart move. Likewise, Bankrate Senior Financial Analyst Greg McBride has seen 5/5/20 adjustables, which are fixed for the first five years, then adjust and hold for another five, then adjust once again. “These are products that warrant consideration for people who are not using them as a crutch of affordability,” he says, noting that using an adjustable to buy more home than you could really afford was a big problem when the housing market collapsed. “They’re for people who have plenty of cash flow to make the payments, but are disciplined enough to put the savings into other investments.” 

New Listed in Hawks Prairie!

Just Listed For Sale: 

anyamyer.remaxagent.com/NWM642609

Attractive 2-story in The Greens at Edgewater featuring 4 spacious bedrooms, large bonus room, 2.5 bathrooms, master suite with spacious tiled 5 piece bath. Open gourmet kitchen with stainless appliances, island, nook, pantry and exquisite hardwood floors. Formal dining rooms, family room with gas fireplace, den with French doors. Tandem 3 car garage and fenced yard with patio, heat pump. Neighborhood features 3 large parks, 3 mile walking trail to the beach, nearby golf and easy access to I-5. Call Anya today to schedule a tour.

4442 Logan Drive NE
Lacey WA 98516
Offered at $343,000
MLS# 

642609

10 Tips to Green-Up Your Home

Whether you’re a renter or a homeowner, chances are you care about protecting the environment – and saving money. Here are some tips from Seattle Mortgage, a subsidiary of Seattle Bank to help you do both.

Location, location, location efficiency. Carefully consider the location of your home. If you’re close to work, shopping and entertainment, you may not need a car. Without a car you would save money on gas, car insurance and maintenance, not to mention reduce pollution. If you’re thinking about moving further out, try to find something near public transportation and shopping.

Light up the house, not the electric bill. Replacing incandescent light bulbs with more energy efficient compact florescent light (CFL) bulbs will save you about $6 a year in electricity costs per bulb and more than $40 over its lifetime. According to ENERGY STAR, if every American home replaced just one light bulb, we would save enough energy to prevent 9 billion pounds of greenhouse gas emissions per year. Remember to recycle used CFL bulbs. Go to www.epa.gov/bulbrecycling for recycling locations.

Some like it hot, hot, hot…or cold, cold, cold. Closely monitor your thermostat. Adjusting it just a few degrees while you’re out can save energy and money. You can make it easier by installing a programmable thermostat. Use fans and close the blinds during the warm months and let the sun in for natural warmth in the winter. Also, change your filter every three months.

How low can you go? One way to save water is by using low-flow toilets. The most cost-effective way to do this is to simply take a 1 liter plastic bottle, fill it with water and place it inside the tank. This will reduce your water use per flush. Another way to save water is placing an aerator on all of your faucets.

Make it mean-green-clean. Cleaning supplies can be expensive and are made with toxic chemicals. You can save money and the environment by making your own cleaning supplies. All you need are some basic household ingredients like vinegar, lemon juice, baking soda and borax to clean everything from windows to tile. Look online for recipes and suggestions.

Reduce, Reuse, Recycle! Sticking to this mantra can help you save money around the house. Use a rag instead of paper towels. Buy products in bulk, concentrate or refillable containers to reduce packaging waste. Look for products made from recycled content. And don’t forget to recycle!

Win-dos for your windows. There are a number of ways you can make your windows more energy efficient without replacing them. For better insulation from the weather you can caulk exterior joints, put shrink wrap on them or hang blackout curtains.

Fan the green flames. To keep your refrigerator running efficiently, keep the fan clean. The motor won’t have to work as hard if the fan is clear of debris.

Decorate green. Houseplants are like living air-filters. English Ivy, rubber trees, peace lilies and red-edged dracaena can help clean the air and look pretty too.

Vampire energy is sucking you dry. On or off, anything plugged into the wall sucks energy. Vampire power costs U.S. consumers more than $3 billion a year, according to the U.S. Energy Information Administration. Unplug your electronics and appliances when they’re not in use.

For more green home solutions, visit: epa.gov/greenhomes

Hot New Listing in Tumwater!

anyamyer.remaxagent.com/NWM636079

Better than new quality home in Tumwater's Highlands. All the perfect touches are in this 3 bedroom plus den plus bonus floorplan. Main floor features include living and dining rooms, den, open family room to kitchen offering granite counters, stainless appliances, nook, hardwood floors. Large utility room with sink, exterior access. Top floor offers master suite with 5 piece bath, balcony with views. Fully landscaped yards with sprinklers plus low maintenance deck perfect for entertaining. Call Anya today to schedule a showing.

1833 Vista Loop SW
Tumwater, WA 98512
MLS#636079
Offered at $324,900

Housing activity in Western Washington ranges from “red hot” to “slowly healing”

Brokers report some skittishness among both buyers and sellers, but the latest statistics from Northwest Multiple Listing Service indicate the housing market is continuing to rebound. Both the number of pending sales and the number of new listings added to inventory during April reached their highest levels in 11 months.

Closed sales of single family homes and condominiums were slightly below the year-ago volume, while the median sales price rose slightly (up about 1.9 percent).

“The residential market is red hot,” where multiple offers are the “norm” for new listings, with about two-thirds of homes near job centers selling in the first 30 days. That’s about twice the normal rate.

 

4761 Brech Street $365,000

I listed and sold this home in less than 2 weeks

Many areas outside the Greater Seattle job centers also show signs of positive activity, but at a more moderate pace. “The real estate market continues to show positive signs both locally and nationally,” stated John Deely, one of the directors of Northwest MLS.

MLS members reported 9,590 pending sales of single family homes and condominiums during April, about even with the same period a year ago when brokers tallied 9,600 mutually accepted offers. Last month’s total marks the highest level since May 2013 when the MLS reported 10,045 pending sales across its 21-county area.

Improving inventory is helping to boost sales, but MLS officials say the number of distressed sales in some areas, and shortages of the “right kinds” of inventory persist, are causing some drag on activity. Some brokers also expressed concern about the sluggish pace of new construction.

Members added 11,043 new listings to inventory during April, about 700 more than a year ago for a 6.7 percent gain. At month end, there were 21,390 listings system-wide, up nearly 7.9 percent from twelve months ago when active listings totaled 19,826.

“A lot of potential sellers who would like to move up are reluctant to list due to uncertainty that there will be something on the market they would want or be able to purchase,” said Northwest MLS director Diedre Haines. Changes in the new construction segment are also affecting activity, she suggested.

Other brokers had similar comments about current inventory.

“We are still desperate for inventory in spite of statistics indicating we have more listings,” commented MLS director Kathy Estey. Inventory is being held back because potential sellers fear they will sell their home and not find one to move into, said Estey, the managing broker at John L. Scott in Bellevue.

South Puget Sound seeing impact of distressed properties

Distressed properties are still influencing activity and prices in the South Sound, reported Dick Beeson, principal managing broker at RE/MAX Professionals in Tacoma. According to his analysis of Northwest MLS data, about 30 percent of April’s sales in both Pierce and Thurston counties were distressed properties, either bank owned or short sales. He noted this appears to be more than twice the ratio in King County.

Buyers are indecisive, Beeson noted, explaining, “They can’t decide if they like a bigger selection or not, especially if much of the inventory is not in the greatest physical condition, which describes many distressed properties.”

Despite the relatively high proportion of distressed properties in Pierce and Thurston counties, multiple offers are occurring on “right priced, right conditioned” listings, remarked Beeson.

Commenting on the minor price drop (down 0.15 percent) compared to a year ago, Beeson believes it is due to the high number of bank owned properties and short sales that were in the mix. He indicated his analysis revealed a median price of $240,000 for non-distressed single family homes, or about 30 percent higher than the distressed component. The gaps in King County, with a smaller proportion of distressed sales, were not as pronounced.