Reaching the Real Estate Finish Line

Guest Blog: Jodi Ashline, Coldwell Banker Evergreen Olympic Realty may be reached at 352-7651 or email at jodiashline@gmail.com or tour Jodi's listings at http://www.jodiashline.com/

My last column got you started on your purchase by determining how much you could afford, getting loan pre-approval, finding the right agent to tour suitable homes. Now what? Get “comparables” from your representative for each appealing home, review property disclosures, and research restrictions.

Now you’re armed to make your offer,which should include contingencies regarding financing and inspections, as well as any special requests or repairs, and also a closing date and earnest money deposit. There may be some negotiation, but once both parties have agreed on the terms, you’ll have fully executed Purchase and Sale Agreement.

Now you’ll apply for financing, order an appraisal and inspections, and possibly renegotiate after those reports are complete. You’ll need to secure homeowners insurance and complete the loan process. You’ll want to have cash ready for your down payment and closing costs, and do a final “walk through” just before closing.

You and your agent will be able to review all the settlement documents in advance of the closing date, to be sure everything is correct and to dot the “i”s and cross the“t”s. You’re finally ready to make an appointment with the closing agent, get an Official Check from your bank for downpayment plus closing costs, and sign the papers giving you the coveted status of “homeowner!”

Local Housing Report: Positive Signs for 2011

This time of year many people ask us, “what’s going to happen in real estate this year?” While our "crystal ball" is not clear, we are seeing positive signs that our local housing market is improving.

At the start of the past few years, the market faced serious challenges: high unemployment, falling stock and housing prices, to name just a few. The housing market is not completely out of the woods, but there are a number of factors that point to a more positive 2011.

The net result is that we are seeing a palpable uptick in interest from buyers compared to a year ago. The fact that there is so much more buyer interest at the start of this year is really saying something about how buyers are viewing the market. In its recent nationwide survey of home buyers, the National Association of Realtors found that twice as many buyers in 2010 compared to just two years ago said the timing of their purchase was based on affordability. This is a big confidence signal – and it is coming without government stimulus. It takes more than affordability to create a sustainable recovery. Employment numbers and the broader economy must provide a healthy foundation. Both are trending in a positive direction for the first time in a long time.

Very few people would be satisfied with where the job market stands right now. Jobs might be the single biggest challenge on the demand side of the local housing market in 2011. With the legislature facing a budget deficit, hard choices will be made. However, our local job market is in much better shape than a year ago when the unemployment rate stood at 9%. Today it is 7.6%.

Look to the States’ larger markets to see how much the Legislature’s actions impact our local job market. Some encouraging news comes from healthy increases in retail and housing sales (and the taxes that go along with them). In Seattle, for instance, housing sales and prices were up in 2010. That is a very positive sign after several years of declines.

This is all good news, but there remains a note of caution on the supply side of the market. The number of foreclosures still on the horizon is unknown. Thurston County has seen a steady flow of about 30 foreclosures notices per week - about three times the "normal" number. While we expect that trend to continue through 2011, the steady volume over the last few years suggest that more is behind than in front of us.

Given the reality sellers have to keep a realistic eye on market value and price competitively. With a lot of homes for sale, buyers are taking time to be savvy shoppers. They are acting quickly on homes priced competitively and ignoring homes that are priced about above the competition.

Home Sales Climb for Third Consecutive Month

Today the National Association of Realtors (NRA) reported that existing home sales continued to climb in January for the third consecutive month. Lawrence Yun, NAR chief economist, said, “The uptrend in home sales is consistent with improvements in the economy and jobs, which are helping boost consumer confidence,” Yun said.

Credit remains tight and has lead to an abnormal increase in cash-only and investment purchases. Competitively priced homes are selling and homes in good condition are holding their value, said NAR President, Ron Phipps.

In Thurston County, January home sales were up 10 percent over last year. There were 153 closed home sales last month, compared to 139 in January 2010. The National Association of Realtors reported that the growth in sales of existing homes in the West rose 7.9 percent, a trend we hope continues.

To read entire story visit:
http://www.realtor.org/press_room/news_releases/2011/02/january_above