Friday, December 16, 2016 / by Christine Andreasen
If you buy a home in Seattle, what are your closing costs likely to be?
As you can see in the video above, the example I used to answer this question is a median-priced home of $550,000 with a 20% down payment ($110,000). This brings your monthly payment to $2,714. Your monthly payment includes your principal and interest (what you think of as your mortgage payment), but it also includes your homeowner's insurance and your taxes.
All of these get paid at the same time with the same check. The bank or lender will divide out the money for you. This is because they want to make sure the taxes and the insurance get paid every month, so they collect it. It’s all part of your PITI (principal, interest, taxes, and insurance). This is important because your closing costs are divided into prepaid costs and fixed costs.
Your prepaid costs cover what you pay for your insurance, depending on what time of year you close. The month and the day you close will impact your pr ...
Friday, December 2, 2016 / by Christine Andreasen
If you’re selling your home, what can you expect to pay in closing costs? This a commonly asked question, and today, we’re answering it.
The first thing we’ll be looking at is the net sheet, which your lender or Realtor should have access to. Note that this is simply an estimate, not the final copy. You’ll receive the final costs when your home goes under contract. As a principal, however, this sheet will give you an idea of what your closing costs will be, and whether it’s a good time to sell. It does not help you determine what the price of your home should be.
In this example, I’ve taken a median price house in Seattle of $550,000 and determined the estimated closing costs. To start off with good news, you’re getting some of those prorated taxes back! Anything you’ve paid in between the estimated close date and the end of the year you’ll get back in taxes. I know ...
Friday, November 11, 2016 / by Christine Andreasen
Today, I’m here to discuss the third quarter of 2016 and compare it to the third quarter of 2015 in our real estate market.
There are three graphs in the video above that will show you the difference between our market at this time last year, versus our market this year.
The first graph compares the number of homes that were put on the market, to the number of homes that sold. We’re going to compare July, August, and September of 2015, to the same time this year. In 2015, there were about 29,500 homes for sale. Meanwhile, there were about 27,000 homes for sale in 2016. That’s an 8% decrease in available inventory! In addition, there were 16,000 homes sold during this time last year. Over the last three months of this year, there were 17,000 sold. That’s a 6% increase! With a decrease in inventory and an increase in sales, prices go up.
The second graph details the average price of homes for sale versus the average price of those that have already sold. Ag ...
Friday, October 28, 2016 / by Christine Andreasen
How do you know it’s the right time to sell your home? Here are the five things I ask people to consider in order to figure that out:
The first consideration is the money. You’ll need to know the equity, how much you owe on the house, and how much the house is going to sell for. You can calculate how much you owe by conferring with a lender. To estimate how much your house will sell for, you can use the home valuation button or ask a professional and solicit their opinion. After that, subtract 9% from the figure it’s going to sell for; that covers both sides’ commissions (which the seller pays for), taxes, and closing costs. In other words, 9% less than the dollar amount it’s going to sell for is how much money you’re going to be left with at the end of the transaction.
How much money you’re going to get out of the deal is a worthwhile consideration.
The second and third considerations are whether the ...
Friday, October 14, 2016 / by Christine Andreasen
Today I wanted to talk about two things: burgers and real estate.
First, a word about what I consider the best burger in the Puget Sound. Where is this burger, you might ask? You can find it at Triple XXX Rootbeer Drive-In. This is a 1950’s style diner that’s makes its own in-house root beer floats and hosts weekend car shows. I recently went there with my daughter and we got to sit down and treat ourselves. I can’t recommend this place enough.
Now, onto real estate. There are two graphs in the video above that give you a sense of where our market’s at and what you should be doing about it.
The first graph measures the number of homes for sale versus the number of homes that have already sold. As you can see, the myth that it’s better to sell in the spring is disproven once again. Last November and December would have been a much better time to sell because there was much lower inventory relative to the number of buyers than ...