Blog May 29, 2012

The science behind the short sale

A short sale is defined as a sale of real estate property where the proceeds fall short of the mortgage debt owed. While all short sales do not necessarily forgive borrowers’ deficiencies (the amount of the unpaid balance), they are often considered more favorable than foreclosures. How a lender determines whether a borrower qualifies in the first place is explained in this cdpe.com video.

Understanding the process from the start is critical, says Kay Maurer, short sale manager at Wells Fargo, reports MercuryNews.com. In a recent Silicon Valley Association of Realtors meeting, Maurer recommended these steps:

  • Determine qualification for government programs (HARP, HAMP, HAFA).
  • Understand that short sales are processed on a first come, first served basis. Submit complete and legible paperwork. If the lender finds an error, the file is returned to the client, who has 72 hours to correct the mistake before losing their place in the cue.
  • Expect a minimum 60-day processing timeline.
  • Communicate openly and regularly with the lender and respond quickly to inquiries.
  • Make no assumptions.

The valuation process begins once the short sale package comes under review. The lender verifies the numbers, evaluating the borrower’s ability to pay the mortgage, the property value, and the purchaser’s offer against the total debt amount. If a short sale potentially offsets the loss incurred by a foreclosure, the lender will be more likely to approve it. Sellers who enlist the help and expertise of short sale negotiators or go it alone will need the patience and wherewithal to navigate what can feel like a muddy process.

Blog May 25, 2012

An all-American house built in Bozeman, Montana

One man in Bozeman, Montana, has thrown down the gauntlet to builders throughout the nation. Anders Lewendal, a builder who holds a degree in economics, asserts that buying just 5% more American-made materials would create 220,000 jobs. When ABC News reporter David Muir spoke to a Boston consulting firm, that figure was validated. Watch this compelling story about Lewendal’s all-American house and the 33 states that played a part in making it happen.

http://youtu.be/YkQXs_Tn7H4

BlogUncategorized May 23, 2012

Seattle beats Silicon Valley

Seattle wins the top spot for long-term, broad-based technology growth, reports Forbes. Based on a ranking system developed by the Praxis Strategy Group, Forbes considered employment growth in two sectors — high-tech companies (software, data processing, Internet publishing) and industries connected to science, technology, engineering, and mathematics (STEM).  The numbers were tallied over the last two years as well as the past decade for the 51 largest metropolitan statistical areas in the U.S.

Surprisingly, the Emerald City beat out Silicon Valley and the other 49 areas with these high notes:

  • 12% tech job growth over the past two years
  • 7.6% STEM growth over the past two years
  • 43% increase in tech employment over the decade
  • 17% expansion in STEM jobs over the decade

The presence of tech-oriented companies like Microsoft, Amazon, and Boeing supports consistent growth in the Seattle, Tacoma, and Bellevue metro areas. GeekWire credits Amazon for playing a large role in the recent expansion. Over 9,400 employees have joined the Amazon labor force worldwide in the first quarter of 2012, and 1,000 open positions were recently announced for Seattle alone. Additionally, Bay area firms like Facebook and Google continue to establish sister campuses in the Seattle metro market.

BlogUncategorized May 22, 2012

How will Echo Boomers affect the housing market?

Generation Y, the Millennials, and Echo Boomers refer to individuals between the ages of 17 and 31, and they are 62 million strong in the U.S. alone, reports the National Association of Realtors in a recent news release. Echo Boomers represent significant buying power, according to the 2011 NAR Profile of Home Buyers and Sellers. Buyers aged 18 – 34 made up about one-third of all recent home purchases.

What makes this generation unique? The Millennials or Echo Boomers are predominantly children of the baby boomers. Authors William Strauss and Neil Howe, developers of generational theory, describe the Millennials as those individuals born between 1982 and 2001. Start and end dates can vary among sociologists, but what’s clear is that this generation is technologically well connected to their world, racially and ethnically diverse, and better educated than their parents.

As Baby Boomers age and transition to alternative housing options, Millennials will begin to impact the market over the next two decades, says NAR economist Selma Hepp. The demand for rental housing may be up among this group, but it won’t last, she observes. Millennials are currently challenged by the demands of work, student loans, and other debt. As the economy improves and household formation begins, this generation’s purchasing power will grow and influence the housing market.

BlogUncategorized May 18, 2012

A picture is worth a thousand words

Blog May 16, 2012

The housing market gets a boost in April

Housing starts in April were strong, increasing by 4.7 percent to a 685,000 annual rate, according to the median estimate of 80 economists surveyed by Bloomberg News. The Associated Press reports a slightly higher annual pace of 717,000 homes, based on Commerce Department figures.

Time reports these strides in the housing market:

  • Construction went up for both single-family homes and apartments.
  • Overall housing starts around the nation have hovered around 700,000 over the last six months, which is 100,000 more than levels for the previous six months.
  • Even though the rate of construction is at 50% of the 1.5 million annual pace economists believe to be ideal, the recent gains coupled with job growth and builder confidence indicate that the nation is on the right track.
  • Single-family home construction increased 39% from its low point during the recession.

Economists watch the number of starts because new homes, which comprise about one-fifth of the total housing market, create an average of three jobs over a year and approximately $90,000 in taxes. Based on 717,000 units, the housing market would support over 2.15 million jobs.

Blog May 14, 2012

Spotlight on Pacific NW gardening

Everything comes alive in the Pacific Northwest with fair May weather. The last frost of the season is likely behind us, and gardeners have the next 200 days, approximately, to cultivate the annuals, perennials, and vegetables of their choice.

The Pacific Northwest, which is defined by the area bounded by the Pacific Ocean to the west and the Cascade Mountains on the east, has a cool growing season. Oregon, Washington, and Idaho as well as the Canadian province of British Columbia are commonly considered to be part of this region, while looser definitions also include the northernmost part of California. Trees and shrubs like rhododendrons and redwoods do well in this part of the country, but so do a plethora of other plants.

There are many resources available to both novice and professional gardeners. The National Gardening Association provides key information on zonal gardening, seasonal plant trends, and how-to videos. Better Homes and Gardens features articles that range from the highly specific to the general, accompanied by helpful visuals, and Sunset is another magazine full of guidelines and inspirational ideas for gardeners as well as home decorators and entertainers.

When choosing plants, don’t discount the benefit of native species, which are proven to thrive in the region’s growing climate and are ideal for creating a Pacific Northwest-themed garden. Consider the goatsbeard with its tall plumes of white bloom or the broadleaf lupine, an evergreen perennial with silvery leaves and blue-violet flowers. Gardeners who want long-blooming perennials need look no further than the blanket flower, which produces vivid red, yellow, orange, or rust colors throughout the summer months.

Blog May 11, 2012

Seattle touts job growth and sustainability

Seattle ranked fifth in the nation for job growth during the period between January 2011 and January 2012, according to the Puget Sound Business Journal. Washington state was fifteenth in the nation. The W.P. School of Business at Arizona State University conducted the study, indicating these percentage increases.

  1. Houston – 3.7 percent
  2. Atlanta – 3.1 percent
  3. Denver – 2.5 percent
  4. Dallas – 2.4 percent
  5. Seattle – 2.2 percent

The state’s overall employment base grew by 1.49 percent for the same period. And that’s not all. Seattle has become a significant player in green technology.

Green Chip Stocks, a blog that tracks developments in the cleantech industry, ranks the Emerald City fifth for its strides toward raising green standards. Here are the highlights:

  • The Green Building Sustainable Communities Program creates city projects that meet sustainable outcomes.
  • Seattle invests in deriving electricity from garbage landfills.
  • The Green Fleet Plan, housed in Seattle, looks for alternative sources of fuel, advanced technology vehicles, fuel reduction policies, and educational programs.
  • The local community demonstrates initiative and participation in energy efficiency policies.

For additional updates on the region, see the Seattle Times Market Review.

Blog May 9, 2012

Modernize your grandmother’s kitchen

Blog May 8, 2012

Kitchen islands aren’t going away

Better Homes & Gardens

The kitchen island is often the hub of the home, the place where family members and guests gather to eat and socialize. While the island’s function remains the same as it has been for years, its look and feel are changing.

“Pare it down to the basics, and anything else is a great addition but not necessary,” says Samantha Emmerling, a senior editor at House Beautiful, as reported in the Chicago Tribune. She notes that since most homeowners want an area for prep, additional counter space, seating, and storage, the form of the actual island ought to follow its function.

What about size? The National Kitchen and Bath Association recommends a minimum of 3 feet by 4 feet. Maximum size should be determined by the aisle space that surrounds the island. A clearance of 42 inches is ideal for providing ease of movement. Kitchens accommodating more than one home cook, however, should have at least 48 inches of aisle space.

Homeowners can get creative with design, because the best islands are not necessarily custom-built. Better Homes and Gardens features furniture pieces that are up to the task — antique table, workbench, and stainless steel restaurant-grade shelf. Repurposing antiques and salvaged pieces or buying shelves that aren’t expressly made for the kitchen add unique style and charm to the single-most utilized room of the home.