Di Kawell Real Estate Blog

Buying or Selling a Home in Fife WA 98424?

Fife WA 98424 Home Sales Stats - Looks like you can buy a decent bank owned or short sale home for about $12,000 less than a 'regular' non-distressed home here in Fife.  Most of the housing activity in Fife is taking place in the planned communities of Radiance and SattleCreek. 53% of currently active homes for sale are short sales or bank owned properties. 33% of closed home sales in the past 6 months were short sales or bank owned properties. Average Sold Price on shorts is $232.000; Average Sold Price on Bank Owned is $229,000. These prices are about   4.5 to 5.5% lower than regular, "non-distressed" sales. (I am talking about resale homes .. new construction is different, and I have not included those stats here. Availability now looks like less than 10 homes.) Call me for further details!

March Home Sales In Federal Way Much Improved!

Even with rain, snow, sleet and hail Federal Way home sales are gaining momentum! Closed sales for the month are up 60% over February. And that means with inventory holding steady at 350 properties for sale, closed sales at 37 units, we have a 9.5 month supply of homes. That is down from a 15 month supply in February - much improved!

 The median price of the homes on the market for sale is $300,000, and the median price for the homes that have closed is $249,000. We are still seeing first time homebuyers as the main group taking action - not surprising since they have such great incentive with the Federal First-Time Homebuyer Tax Credit now solidly in place, plus excellent FHA financing available.

For up to the minute reports of home values in your neighborhood of Federal Way, please comment here or send an email to me at dkawell@windermere.com  I'll need your address and a list of the improvements you have made to the property. You can also phone me at 206-794-0844.

Federal Way Mayor Hosts First of Four Town Hall Meetings

Mayor Jack Dovey is hosting an informal town hall meeting on March 25th, 6:30 PM at the Federal Way Community Center, 876 S 333rd St, near the Celebration Park campus. This is a great opportunity for area residents and business people to learn and ask questions about life in Federal Way, as it is and what's new and coming soon. The mayor will give a brief update, and area service clubs will make a short presentation on volunteer opportunities in the community. 

For more information, contact Brook at 253-835-2401.

Federal Way Goes Green on March 21st ..

Selling Your Home Or Not, one thing we all need to do is clear the clutter and do some "Spring Cleaning"at least once a year. The City of Federal Way is having it's semi-annual community recycling event March 21st from 9 a.m. to 3 p.m. at the Twin Lakes Park & Ride, 21st Ave SW and SW 344th St.

Residents can recycle a wide range of materials that are not typically collected at the curb, including appliances, scrap metal, clean wood, bulky yard debris, petroleum products, tires, oil, gas, batteries, rigid plastic, holiday lights and select electronics, such as computer keyboards, mice and printers, fax machines, scanners, cell phones and CD/DVD players. Most items are accepted free of charge - however there is a $10 cash fee for recycling fridges, freezers and air conditioners. For more information see the City of Federal website.

Burst of Home Sales in Federal Way - Last 2 weeks

According to my search in the MLS database,for February 2009, 40 of the 50 new sales contracts accepted on homes in Federal Way happened in the last 2 weeks - hopefully this is not just a flash in the pan, but we'll take every bright spot we can find in this real estate market!

Current Inventory of Homes for Sale total 349 and are priced from a low of $85,405 to a high of $1,340,000 - and a median price of $299,950.

Sales Pending currently total 103, from a low of $75,000 to a high of $685,000 and the median price of $259,000. These homes averaged 73 days on the market before a sale.

February Closed Sales totaled 23, low $152,400 to high of $621,000, and median at $270,000.  The total closed is virtually unchanged from January (21)  So based on closed sales we are at a 15 month supply of homes.

Regarding foreclosure, short sales, bank owned and pre-foreclosure stats - 28% of actives, 31% of pendings and 35% of solds fall into these categories.

Hopefully the increased activity over the last 2 weeks will be gaining momentum with the buyer tax credit and other government actions taken recently, and being clarified. I'll keep you posted!

Federal Way Sellers - How Can You Compete?

With bank owned, pre-foreclosure & foreclosure properties being approximately 25% of our Federal Way area active listings - besides pricing, what can you do to be in the top 1% of your competitors?

Answer: STAGE YOUR HOME, completely - as in every room, including the garage, from curb to fence lines - completely. Bank owned and foreclosure properties are not everyone's first choice but they do make up 35-40% of the listings that are actually selling right now. You must price to those homes and then you must be staged to be top dog.

I asked Mary DeBella, Accredited Staging Professional, "In your experience, what one room do most sellers overlook, that costs them a sale in this market?"

Here is her response,

" Diane-
That's a good question. I would probably have to say the Master Bedroom (or bedrooms). Most sellers will tidy up their main living spaces such as the Living Room, Family Room, Kitchen, etc. But the bedroom(s) tends to get overlooked because of the challenge of living in the space while it is on the market.

Unfortunately what occurs is that they neglect to showcase one of the most "used" rooms in the house! They forget that they spend the largest majority of their time in this room and tend to say "Well the buyer will just understand my messy bedroom because I live here - after all!"

Most buyers will want to visually see how their bed might fit in the room, or if their clothes will fit in the tiny closets, or where their TV might plug in, etc. If each room is not showcase-ready, sellers have just narrowed down their selling margin. In the current buyer's-market, sellers can't afford to justify the reasons their homes don't look good.

Selling one's home requires a big commitment. Sellers would do well to remember that "the way you live in your house, is not the way you market and sell your house". They are two different things. Your house is now a product that must look better - in every room - than its competition. I always like to encourage sellers who drag their feet about cleaning out a particular room by saying "Are you planning on selling that room with the house?" They smile, and understand the message.

SEE THE BEDROOM AFTER

     

SEE THE BEDROOM BEFORE 

 The second most neglected room (IMHO) would be the garage. In other words, the "man cave". Why fill the garage with boxes and stuff, when many men consider the garage - their haven? Times have changed for sellers and "sweat equity" is the new mantra! Staging Works!"

Auburn West Hill / Jovita Real Estate Stats Mid-month Update Feb '09

Good News - Buyers are Buying, Sellers are Signing and Activity is Picking Up since Jan 1st, 2009 - just 6 weeks ago. Overall we have about a 10 month supply of homes on the market; and about 25% of the market is pre-foreclosure, foreclosure or bank owned properties. This is consistent with the Federal Way/NE Tacoma/Brown's Point areas as well. And these properties are creating sales, while also still causing a downtrend in pricing.

Here's a Current Market Snapshot of Auburn West Hill/Jovita

ACTIVE LISTINGS

There are currently 160 Active Listings/single family homes on the market, with the highest price at $1,295,000 and the lowest price at $125,000. The median price is $329,925.  22.5% OF THESE HOMES FOR SALE ARE IN PRE-FORECLOSURE, FORECLOSURE, OR BANK OWNED.

PENDING SALES

There are currently 31 homes under contract since Jan 1, 2009. The highest price is $399,900 and the lowest is $148,800. The median price of these pending sales is $251,900; and the average days on the market is 82. 32% OF THESE HOMES ARE IN PRE-FORECLOSURE, FORECLOSURE OR BANK OWNED.

CLOSED SALES

There are 15 sold and closed homes since Jan 1, 2009. The highest price was at $348,960 and the lowest was $155,000. The median sold price was at $260,000. And the average days on market in this group was 80. 40% OF THESE SALES WERE IN THE PRE-FORECLOSURE, FORECLOSURE OR BANK OWNED CATEGORY.

Federal Way Real Estate Stats - Mid-month Update - Feb '09

It's Beginning to Thaw!  Buyers have been making offers, sellers are signing and we have made some good progress since Jan 1, 2009 - just 6 weeks ago!

Here's a Current Market Snapshot of Federal Way:

ACTIVE LISTINGS

There are currently 349 Active Listings/Single Family Homes on the market, with the highest price at $1,400,000 and the lowest price at $75,000. The median price is $309,000. These listings average 111 days on the market. 24% OF HOMES FOR SALE ARE IN PRE-FORECLOSURE, OR ARE BANK OWNED.

PENDING SALES

There are currently 60 homes under contract since Jan. 1, 2009. The highest price is $685,000 and the lowest price is $75,000. The median price of these pending sales is $257,950; and they average 85 days on the market. 37% OF THESE HOMES ARE IN PRE-FORECLOSURE, OR ARE BANK OWNED.

CLOSED SALES

Since Jan 1, 2009, there have been 30 homes that have sold and closed. The highest price at $880,000 and the lowest price at $145,000. The median price of these sold homes is $362,475 and the average days on market is 123. 30% OF CLOSED SALES ARE PRE-FORECLOSURE OR BANK OWNED.

SUMMARY: Based on closed sales we have an 11.6 month supply of homes on the market. If you count the pending sales and closed sales, that number drops to 3.8 months of inventory - however over half of the pendings are pre-foreclosure or bank owned and many of these may not end up closing. We should rely on the 11.8 month figure. This still beats the 20 months we had just 2 weeks ago! (A balanced market is approx 6 months of inventory.) Buyers are buying primarily in the $200,000 to $300,000 range, and primarily distressed properties.

Don't Get Ripped Off By Foreclosure 'Rescue'

If it sounds too good to be true

For people who are going through foreclosure or are about to they need to know that things can get worse.  Foreclosure rescue scams have become the flavor of the day.

The ads look or sound something like this:

"Stop Foreclosure Now!”

“We guarantee to stop your foreclosure.”

“Keep Your Home. We know your home is scheduled to be sold. No Problem!”

“We have special relationships within many banks that can speed up case approvals.”

“We Can Save Your Home. Guaranteed. Free Consultation”

“We stop foreclosures everyday. Our team of professionals can stop yours this week!”

Here are some red flags:

Guarantees to stop the foreclosure process – no matter what your circumstances

Instructs you not to contact your lender, lawyer, or credit or housing counselor
Collects a fee before providing you with any services.
Accepts payment only by cashier’s check or wire transfer.
Encourages you to lease your home so you can buy it back over time.
Tells you to make your mortgage payments directly to it, rather than your lender.
Tells you to transfer your property deed or title to it.
Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale.
Offers to fill out paperwork for you.
Pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

One of the most common scams is someone promising to rescue a home owner from foreclosure, telling the home owner that they will take care of everything, collecting a fee from the home owner and doing nothing.

For legitimate help from people who are not running scams try Hope Now 

Banks really don't want your house. They can't sell it because banks can't sell real estate.  The best time to contact your lender is before the first late payment. There are people who are worried about losing their homes who pick up the phone and contact a total stranger and explain their situation and how badly they need help. They make it easy for people who are running scams to find victims.

 

Posted with permission by Teresa Boardman on 12.29.08 

For people who are going through foreclosure or are about to they need to know that things can get worse.  Foreclosure rescue scams have become the flavor of the day.

The ads look or sound something like this:

"Stop Foreclosure Now!”

“We guarantee to stop your foreclosure.”

“Keep Your Home. We know your home is scheduled to be sold. No Problem!”

“We have special relationships within many banks that can speed up case approvals.”

“We Can Save Your Home. Guaranteed. Free Consultation”

“We stop foreclosures everyday. Our team of professionals can stop yours this week!”

Here are some red flags:

Guarantees to stop the foreclosure process – no matter what your circumstances

Instructs you not to contact your lender, lawyer, or credit or housing counselor
Collects a fee before providing you with any services.
Accepts payment only by cashier’s check or wire transfer.
Encourages you to lease your home so you can buy it back over time.
Tells you to make your mortgage payments directly to it, rather than your lender.
Tells you to transfer your property deed or title to it.
Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale.
Offers to fill out paperwork for you.
Pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

One of the most common scams is someone promising to rescue a home owner from foreclosure, telling the home owner that they will take care of everything, collecting a fee from the home owner and doing nothing.

For legitimate help from people who are not running scams try Hope Now 

Banks really don't want your house. They can't sell it because banks can't sell real estate.  The best time to contact your lender is before the first late payment. There are people who are worried about losing their homes who pick up the phone and contact a total stranger and explain their situation and how badly they need help. They make it easy for people who are running scams to find victims.

Lease Purchase or Lease Option - Are You Wondering About These?

The easiest way to keep these straight is to remember that a 'lease purchase' is a purchase agreement - remember the word 'purchase.' In this strategy, the buyer agrees to buy and the seller agrees to sell, and the buyer will lease the property from the seller pending closing. There is often a delayed closing, but the buyer is obligated to close the transaction on a specified closing date. There would be a written purchase and sale agreement plus a lease agreement, and default on the lease would be default on the purchase and sale as well.

A 'lease option' is a situation where a tenant is obligated only to lease the property, but also has the right, or option, to purchase the property at a future date. There would be a written lease, as well as a written option agreement that should outline the terms of what the buyer's purchase would include, and a deadline for the buyer to decide to purchase or not. There would also be a negotiated cost between the parties for the option itself, which could be handled in several different ways (part of each rent payment, an upfront lump sum, etc). And the option cost may not be refundable if the tenant chooses not to exercise the option.

Also, there is another strategy which is simply an 'option to buy.' And this option is unrelated to any lease between the parties. Again, there would be a written option agreement outlining all basic details. And most often there would be some sort of cost for the option itself.

***All of this said, none of what I've written above, or will say below, is to be relied upon or construed as legal advice. I am a licensed real estate associate broker, not an attorney. I am licensed to fill in standardized forms, but not to give legal advice.*** Also, at this time in Washington state, there are big legal issues if a property owner is in a distressed situation and a buyer wants to offer to buy and lease back to them with a purchase option - you don't, and I don't, want to go there.

3 Issues to Consider: 1. In a declining market, a sale price set today, may not be market value by the time a sale would close, and that could mean financing problems due to any required appraisal.  2. Although a buyer might qualify based on today's rates and programs, they may not qualify when it comes time to close - we know the current volatility in the financial markets!  3.  The parties will have to decide whether or not is acceptable or desireable to keep the property on the market during the pending, lease or option period - there is no law addressing this issue.

In my opinion as an agent, successful transactions are always about win-win between the parties, so with the right set of circumstances, using these options might just be the best answer. Example: Sellers whose homes are not selling, who don't need to be cashed out and would be happy to have their property occupied by a responsible and qualified tenant with an interest in buying and closing a deal when some planned event allows them to do so. Another example: Seller is working out of area for the next couple years, might or might not want to sell, and buyer needs time to get their lives or finances straightened up.

Still Have Questions? Please ask here in a comment, or email me with your concern - I will do my best to help! ... And, I Have People ;-)