MADDOXVILLE: a real estate information newsletter www.heathermaddoxhomes.com View this email in your browser Happy New Year, and cheers to a bright 2016!   Last year was a very rewarding year in real estate, but it was also extremely challenging. This market is brutal for Buyers—often submitting offers on multiple homes, competing, spending $1000s on pre-inspections and often paying (as much as 25%!) over the asking price―and it is an emotional roller coaster on the way to finding a home. This type of market is hard for me as a Buyer's agent. I take pride in helping my clients find THE HOUSE, not just a house. This can take months in a balanced market, and the current market is anything but balanced. Inventory is lower than ever, and competition is higher than ever. It often feels like an impossible task to prevent a Buyer from settling. However, I'm also proud to say I was the winner of 17 multiple offer situations on behalf of my buyers last year.   On the flip side of that, I had many happy Sellers. The chart below is a data visualization of my listings in 2015. Not one of them sold for under the list price, and on average they went for 8% OVER the asking price. DIY transformation sets resale record My record sale this year was a home in Meadowbrook, a neighborhood in the Lake City area of Northeast Seattle. John and Kelly Poort bought a mid-century rambler in 2010, it was all original inside and had a pool in the backyard. Over the next five years, the couple had three daughters, removed the pool and completely updated the house. (A true DIY project, thanks to a handy John, and his three handy brothers.) "We were nervous about the process of selling," the Poorts said. "But after talking to Heather about the market and what we'd need to do to get our home ready...we decided the time was right. We went away for a long weekend when the house hit the market and were both shocked and thrilled when Heather shared the offers a few days later. Making the decision to leave a home [that] held so many memories for our young family was scary, but we are so grateful that we did as it led us to the home where we will watch our girls grow up." We listed the house in March at a market-based price that was appropriate given the recent comparable sales in the neighborhood. After five days we had 13 offers. The winning offer was nearly 37% over the asking price, and included an addendum noting the Buyer was willing to make up the difference in cash, as it would likely appraise for closer to the asking price. Demand for this house was so high― thanks to timing of the market, location, size, and fantastic updates (we didn't even need a stager!)― that the Buyers were willing to pay more than what they knew it would appraise for. Mortgage insurance tax breaks extended Premium payments may be deductible for some borrowers with adjusted gross incomes less than $110,000 In December, President Obama signed a bill that included provisions extending the deductibility of mortgage insurance (MI) for the 2015 and 2016 tax year. To qualify, the policy must be for loans for the purchase, construction or major improvement on a first or second home. So mortgage insurance policies on cash-out refinances or home equity loans will not qualify for the deduction. The deductibility is effective for purchase and refinance transactions closed after Dec. 31, 2014. Mortgage insurance premiums paid during the year are reported on Form 1098 and are sent to borrowers by the lender. Consult your tax advisor for additional assistance on claiming the itemized tax deduction on the Schedule A form.  Here is a breakdown of how the deduction works: Borrowers with adjusted gross incomes below $100,000 may deduct 100% of their PMI premiums. For borrowers with adjusted gross incomes from $100,000.01 to $110,000, deductions are phased out at 10% increments for each additional $1,000 of adjusted gross household income. How low is inventory? Have you heard that real estate inventory in Seattle is at an all-time low? Check out this map of single family homes in North Seattle, it shows only 19 properties for sale that are currently listed for less than $550,000. That means that for the 1000's of Buyers searching from Lake Union to Shoreline there are only 19! available homes. Wow. Similar trends are present in neighborhoods around the region, and inventory in 2015 was also at an all-time low (see chart below from SeattleBubble.com, a real estate information blog). A recent story in The Seattle Times highlights that recent King County home prices have hit new highs while inventory is at new lows. We NEED houses to sell― please call me if you have one. PROFESSIONAL SERVICE Skyline Roofing Greg Mooney | 425-638-2674 gregorymooney@me.com   Greg's company does excellent work, and I recommend you contact Skyline Roofing when it is time to repair, replace or maintain your home's roof.   Special for clients and friends of Heather Maddox: $500 off a new roof, $100 off a roof cleaning NEW CONSTRUCTION My clients have been watching their brand new home take shape since June and are finally taking possession this month! The builder is MainVue Homes. MULTIPLE OFFERS OVER CHRISTMAS This market doesn't stop for the holidays. We beat out many offers, including cash, to ensure that my clients were the new owners of this Pinehurst townhouse. Subscribe to NEIGHBORHOOD NEWS The best way to stay connected to what's happening in the real estate market in your area, is to subscribe today to NEIGHBORHOOD NEWS. FIND #heathershousefavs ON SOCIAL MEDIA Horseshoe court, built-in gas fire pit, chicken coop-ready shed, 5BR/3BA on a 3/4 of an acre level lot backing to Farrel-McWhirter Farm Park— all less than 5 minutes from Microsoft.   Who wants to see more?? @HeatherMaddox Facebook Instagram heathermaddox@windermere.com heathermaddoxhomes.com Heather Maddox, Broker Windermere Real Estate/Renton, Inc. heathermaddox@windermere.com 206-330-9185 Copyright © 2016 Heather Maddox Homes, All rights reserved. Our mailing address is: Windermere Real Estate/Renton Inc. 3800 NE 4th St. Renton, WA Want to change how you receive this newsletter? your preferences or unsubscribe from this list

Did you know that using a realtor is FREE for Buyers??  The Seller pays the commissions for both the listing and selling agents, so as a Buyer this is a free service to you!

Having an advocate on your side, guiding you through the process is a must when you are making the biggest purchase of your life.  Many people are under the impression that if they do not use a Realtor they will be saving money as a Buyer, when in fact it is just the opposite.   It is common to think that if you use the listing agent of a property write up the offer and don’t get your own Realtor you will save money in negotiations – WRONG.  In fact, the listing agent will usually get double the commission (3% for listing the property, and now 3% for selling it to you).   The Seller has already signed a contract with the listing agent detailing how much commission they will pay to both sides.  So not only are you not getting a discount you have the Seller’s agent trying to negotiate for you.  The Seller is already the listing agent’s priority, so you are actually doing yourself a disservice and many times paying more than you would if you would have gotten yourself a FREE Realtor.

I would rather have you pick a realtor out of the phonebook than not use one at all… but of course your best chance of saving money would be to work with me! 🙂

The last 5 years have definitely changed the market.  As a potential Buyer,  I am sure you are hearing from everyone what a GREAT time to buy it is.  Here are some actually numbers that may put into perspective HOW great of a time it is now….

These stats are based on National numbers and a $400,000 home. 

A 30 year mortgage today is 4.13%, in September 2006 it was 6.41%

The monthly payment today (based on the above amount & interest rates) is $1,939.76, in September 2006 it would have been $4,024.02 – a difference of $2,084.26 a month!

Over the term of the loan the total savings for the house purchased today would be $750,333!

The average monthly rent for a 2 bedroom in Seattle is $2,260 a month.

Don’t let this great time to buy pass you up!!

After the past few years, many owners are curious where things stand as far as the value of their real estate.  Zillow can give you a very general range, that is if you haven’t done ANY remodeling, updating, or additions.  To get the most accurate value, a price opinion from a realtor is the way to go.  This very specific opinion will take into account the current state of your home and give you an idea of what it is worth.  If this is something you are interested in, just shoot me an email and I will have it back to you within the week.

Welcome to my new website.  I am going to do my best at keeping this updated and current.  Take a look around and leave me a comment if you have any suggestions or questions!