Moving For Work, Should I Buy?

When you move to a new area, particularly for a new job, one of the many decisions that may be considered is whether you should rent or buy a home in your new city.  There are additional questions one would consider:

  1. How long will I be here?
  2. Does it make sense from a financial perspective?
  3. Where would I live if I am not familiar with the area?

The list of questions goes on, but for transplants to the Pacific Northwest the answer is pretty simple, YES! Buying property in either King, Pierce or Snohomish Counties is a practical move given our booming economy and market.  If you stay 1 year or 10 years, the property you purchase will more than likely cost you less than renting while you reside in the area. Given the increase in rents, if you leave the area you can convert your property to an investment vehicle or sell it and use the equity for your next move.  Finding the right area is just a click or call away, let us help you answer those burning questions around buying!

Must Have Tools for Homeowners

 

 

When you own your home, things are going to break and, unless you want to spend your money on visits from a neighborhood handyman, you’re going to need to fix them yourself.

Luckily, you don’t need an arsenal of tools to handle most home maintenance fixes. These five tools will cover most of your basic projects.

1. Cordless drill. A cordless drill is a must-have for installing cabinets, drawer pulls, hinges, picture frames, shelves and hooks, and more. Whether it’s for do-it-yourself projects or repairs, you’ll use your cordless drill just about every month.

2. Drain cleaners. Shower and bathroom sink drains are susceptible to clogs because of the daily buildup of hair and whisker clippings. You can use chemical clog removers like Drano, but they’re expensive and the lingering chemical scent is unpleasant. Instead, buy some plastic drain cleaners that can reach into the drain to pull out the clog of hair and gunk. You can purchase them on Amazon or at a local hardware store for a low price.

3. Shop-vac. No matter how careful you are, spills and accidents will happen and there are some tasks that just can’t be handled with paper towels or a standard vacuum, like pet messes or broken glass.

4. Loppers. Even the minimum amount of care for your landscaping will require some loppers to remove damaged branches, vines, thick weeds, and any other unruly plants in your yard.

5. Flashlight. You’re going to want something a little more powerful than your iPhone flashlight when you’re in the crawlspace!

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Cautionary Tale of a First Time Homebuyer

 

 

As a real estate broker, my relationship with my clients doesn’t end at the closing of their transactions. I provide support with whatever my clients need; questions about rates as they are ready to refinance; home renovation; new purchases and the list go on.

Recently one of my clients contacted me, she had purchased her home the previous year and had some concerns regarding her transaction. She was a first-time homebuyer and had purchased a condo and after a year she confessed she wasn’t happy with her transaction. We got together for tea, so I could find out what exactly her concerns were and help her resolve them. What she disclosed to me was one of the many things I discuss with my clients but may not always get; full disclosure.

She acknowledged that, although I talked with her about providing me and her lender full disclosure regarding her purchase, she did not provide it. There was pertinent information that needed to be shared with us as her homebuying partners, but she omitted these crucial pieces. Now she finds herself in a situation she isn’t necessarily happy with because she did not provide me with all the critical information I needed to help her make the right decisions when it came to her purchase. She is very happy she bought a home, but not necessarily the circumstances by which it was purchased. This is the first time I’ve had a client admit this to me, and I was so glad she did. We were able to discuss a plan of action and next steps and we are on the way to her turning this situation around for the better!

As a buyer or seller, it is imperative you work with someone who you can trust. You need to trust in their ability to execute your real estate transaction properly, their capacity to council you through the process, and your comfort in sharing all the information that must be shared. Even if you have bought and sold before and are not a first-time homebuyer, every transaction is different and requires a professional to ensure your needs are met and you end up with the best-case scenario for you! Study after study and survey after survey reflect the need for a real estate professional and consumers wantonness to work with one. What is not shared is the need to provide your Seattle broker with the adequate tools she/he needs to support you and your family!

Consider This: When To Refinance Your Home

 

Refinancing your mortgage is something most homeowners consider at least once throughout the lifespan of their home loan. It allows you to pay off your previous loan by applying for a new one that has better financial advantages. While there are many good reasons to refinance, here are five common ones.

  • Scoring a lower interest rate. The number one reason homeowners decide to refinance is to secure a lower interest rate on their mortgage. Not only does this save you money in the long run and decrease your monthly payment, but you can start building equity in your home sooner.
  • Using an improved credit score. Even if interest rates have not dropped in the market, if you’ve improved your credit score over the last few years, you may be able to reduce your mortgage rate.
  • Shortening the loan’s term. If interest rates are decreasing, there is a chance you may be able to get a shorter loan term with little to no change in your monthly payment, allowing you to pay off your loan sooner.
  • Switching from an adjustable rate to a fixed rate. If you chose an adjustable-rate mortgage with great introductory rates when you initially financed your home, that rate may increase significantly over the years. By switching to a fixed rate while interest rates are low, you can protect yourself from future increases.
  • Cashing out home equity. If there is a big purchase or payment on the horizon, such as funding a wedding or going back to school, your best option may be to use the equity you’ve built in your home to borrow money at a lower cost.

 

For Buyers and Sellers Who Just Aren’t Sure

The holidays are coming, on a rocket, I might add; I know buying or selling a home is the last thing on your Christmas to-do list.  But the market is prime for just that this time of year!

Our local real estate market has come off the fever pitch of summer to a very healthy pace, and the numbers from October certainly support this assertion.  For South Puget Sound, there are still numerous homes for sale at many price points.  Providing a great opportunity for buyers, with the ability to negotiate a strong contract; and sellers who can be confident that the market is supporting listings that are priced right!

Make Christmas 2018 one to remember and contact us to buy and/or sell today!

Buyers Now is the Time!

Fall is upon us, which signifies a slowing in the heated seller’s market of the past several months. With that comes the most opportune time for buyers to get in the market, the month of October! Listings are staying on the market longer AND pricing is slowing and leveling off, which gives buyers more options in the marketplace. In addition, this is also the best time to take advantage of Down Payment Assistance (DPA) programs available to not just first-time buyers, but anyone looking to purchase a new primary residence.
 
There are so many misconceptions around buying; you must save 10%-20% to even think about buying. NOT TRUE!!! There are multiple programs that require as little as 3.5% down and DPA programs can cover it! As a buyer, you do need to have the cash for an earnest money deposit and an inspection, which I highly recommend. Outside of that, the money is out there for you to buy today! Just go to our website www.bascombrealestate.com/buy/ and click on the link ‘Down Payment Help’ to see which programs you qualify for, then give us a call!

How to Prepare for a Mortgage Loan?

Unless you are independently wealthy, using the financing to buy a home is the option for most consumers.  Mortgage lending has changed drastically due to the housing crash in 2007. The market did not immediately recover which resulted in stricter lending standards.  But, don’t let this preclude you from buying a home. There are many programs available for everyone, and there are many factors you must consider if you are interested in a mortgage loan. Here are the top 4 things you should consider when shopping for a mortgage.

 

Select a Mortgage Suitable for your Financial Situation

One of the major benefits of buying a home is the tax deductions that you can realize once you are a homeowner. In addition, you must choose the correct mortgage product suitable for your financial situation. For example, a fixed-rate mortgage will give you a higher starting rate, but your principal and interest payments stay the same. While an adjustable rate mortgage’s interest rate tends to be lower, it has periodic adjustments throughout the life of the loan affecting your monthly payment.  Be mindful of the entirety of the mortgage you are selecting. It is important that you do a personal accounting of your finances and consults a great mortgage loan officer.

Reduce your Debt-to-Income Ratio

If you are applying for a mortgage, lenders always look closely at your debt-to-income ratio. Debt-to-income ratio is the ratio of your monthly debt payment divided by your gross monthly income. It is one way for the lender to measure a person’s ability to manage their monthly payments and debts and their capacity to repay the loan.

Minimize Your Borrowing

More often than not, applying for new credit can have a huge effect on your credit report, which in turn impacts your eligibility when applying for a mortgage. If you know you will be applying for a mortgage in the near future, be sure to suspend any further inquiries on your credit until after your home closes. Inquiries and new accounts can and will affect your credit score and debt to income.

Educate Yourself

Knowledge is power. When dealing with a mortgage, you must be fully aware of your financial capacity, what you need, what you can afford, and what type of mortgage is perfect for you. You can conduct your own research regarding mortgages or consult your real estate broker regarding a good referral.

 

Homeownership is a dream for most but does not have to be difficult to achieve. If you are prepared prior to shop for your home, it makes the process that much smoother. Buying your home is the single largest investment most American’s will make, so the best thing to do is to assess your preparedness and give us at Bascomb Real Estate Group a call!

How to Calculate Your Home Equity?


One of the many questions I receive from homeowners is, how do I find out how much equity I have in my home? This is a very important question, as it is the one factor that can determine whether you can or should sell your home, or even refinance it for a better rate; or to take out some cash for debt consolidation, home repairs or the like.

Knowing how much equate you have in your home also provides you with a better financial picture. Home Equity is simply the value of the ownership stake in your home. It is the difference between its current market value and the total sum of debts or liens (mainly but not exclusive to your primary mortgage) you have against your home.

First, you can figure out the equity in your home by subtracting the amount you owe on all your loans secured by your house from its appraised or market value. For example, Nicole owns a house recently appraised at $500,000. Nicole subsequently owes ABC Lender $150,000 as a mortgage on her home. We can calculate Nicole’s home equity in the figure below:

(Current Appraised/Market Value) – (Mortgage Balance/Loan Balance) = (Home Equity Value)
$500,000 – $150,000 = $350,000

If you are interested in calculating your home equity percentage, you can do so by dividing your home equity value with the current appraised/market value of your house.
(Home Equity Value) ÷ (Current Appraised Value) = Home Equity percentage
$350,000 ÷ $500,000 = $0.7%

Loan-to-Value Formula

Another method of calculating the equity in your home is through the loan-to-value formula or (LTV formula). Lenders use this method in all case when you are discussing encumbering your home with a loan. If you are interested in applying for a mortgage, Loan-to-Value Formula will compare the amount of the loan you are seeking against the current market or appraised value of your home.

To calculate your LTV, divide your current loan balance(s) with the current appraised or market value of your home. After that, the answer will be multiplied by 100 to find the percentage.
In the example given above, the $150,000 loan balance, will be divided by the $500,000 appraised value of your house. This will result in 0.3 multiplied by 100 equals to 30% LTV for your home.

Take note that LTV can affect if you must pay Private Mortgage Insurance(PMI) or if you qualify to refinance, 80% LTV is the max you can borrower to avoid paying PMI. Nonetheless, these are easy ways to calculate your home equity. Remember that Both LTV and home equity values will be subject to fluctuations depending on the market value of your home.

If you are a homeowner and interested in finding out the value of your home visit or website at www.bascombrealestate.com and visit the ‘What’s Your Home Worth’ tab, or email us at customerservice@bascombrealestate.com, we are looking forward to hearing from you!

Fair Housing in King County 50 Years Later

2018 has served as a pivotal year in this country’s history.  We mourned 50 years of the loss of a beloved leader Dr. Martin Luther King Jr.; President Lyndon Johnson signed into law the Civil Rights Act also known as the Fair Housing Act the same year just days after Dr. King’s murder.

Here in King County we have seen monumental changes in housing, particularly who owns their home and who doesn’t.  Homeownership has always been the American way to build roots; wealth; legacy; and sustainability, but how far have we come in 50 years in our community?


This graph only reinforces the importance of homeownership in a community; some may thing it is merely about buying a home, which is true in some cases.  But in reality homeownership can be the single most important indicator of future health for you and your family, just by owning your property.The term ‘asset poverty’ denotes: a household’s inability to access wealth resources that are sufficient to provide basic needs in times of emergency for a period of three months.

This month, Bascomb Real Estate Group would like to continue the conversation around black homeownership in King County and how we can begin a pendulum shift in our community around the barriers to reaching one of the most basic of American goals, owning your home.

Renting VS Owning

If you’re currently renting and not certain if buying fits into your financial and/or life plans, here are just a few pros and cons for you to consider:

Renting

Pros

  1. No long term commitment to your living space
  2. Landlord responsible for most issues regarding the property
  3. Flexibility in choosing the type of living space you choose
  4. Flexibility in geographic locations

Cons

  1. Higher probability in being transient and needing to move more often
  2. Subject to the landlords’ rules regarding your living space
  3. Rent subject to increases
  4. High move in fees with no return on your investment

Average rent in King County for 2 bedroom apartment – $1,750*

If you’re owning a property, the following should be noted.

Owning

Pros

  1. Fixed and stable housing costs with low likelihood of increases
  2. Building equity through homeownership
  3. Ability to put down roots in your community long-term
  4. Low down payment options and support that becomes an investment in your property

Cons

  1. All property issues are your responsibility as the owner
  2. Decreased ability to move
  3. Price can limit your ability to live in your chosen area
  4. Property tax increases can increase mortgage payment

Average mortgage in King County for 2 bedroom condo – $1,268**

Gives us a call to discuss your specific situation to determine if it is a good time for you to buy!

 

*Statistical data provided by Renthop.com
**Statistical data provided by the Northwest Multiple Listing Service

About Us

Purposeful in providing the most personal of services, our firm is small in size by design in order to enhance the exceptional service we provide.  We are a firm that prides ourselves in offering superior knowledge and skill making us the only choice for your real estate needs.