Newsletter • February 23, 2016

Maddoxville | Feb. 2016

by Heather Maddox

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MADDOXVILLE: a real estate information newsletter
www.heathermaddoxhomes.com

In 2015, I was referred Joel & Lindsey Palmer, recent WSU graduates who at the time were engaged to be married. Despite being younger than your average homeowner, they were extremely smart about their purchase. They had saved for a downpayment and did not try to stretch their dollar beyond their means. If anything, they were looking for something that they could put some sweat equity into. They had great vision when house-hunting, looking at the floorplan & bones of homes rather than the cosmetics.

They won a multiple offer situation on a home in Covington and completed an impressive list of improvements before moving in. The couple put Do-It-Yourself (DIY) home improvement shows to shame, and their house looks amazing! Their work inspires me and if the home looked like it does now when it was on the market, it would have received at least three offers and gone for $30,000 more than they paid. Click here or on the photo below for their Before & After story.

What ‘Slow Season?!?’

Statistically speaking, November to January can be a bit sleepy in the real estate world. This winter was the opposite of sleepy. I was arguing a successful offer on behalf of a Buyer the week of Christmas that was up against a handful of other offers. What does this mean for the PNW housing market?

Spring is going to be unprecedented.

Windermere Real Estate chief economist Matthew Gardner said recently, “With a vast majority of our metropolitan areas having fully recovered from the job losses seen during the recession, I expect to see somewhat more modest job growth in the coming year. That being said, our economy will continue to expand, which will be a benefit to our region’s housing market.”

This speedometer reflects the state of the region’s housing market using housing inventory, price gains, sale velocities, interest rates, and larger economic factors.

The market is heavily in favor of Sellers, but some markets are reaching price points that will test affordability. Because of the constricted inventory of homes available for sale, which is not expected to keep up with demand, this will add further upward pressure on prices.

Annual Change in Home Sale Prices

Prices in the region rose by an average of 9.3% on a year-over-year basis, but were 0.4% lower than seen in the third quarter of 2015.
Unsurprisingly, no counties saw a drop in average home prices compared to fourth quarter last year.
When compared to the fourth quarter of 2014, San Juan County again saw the fastest price growth with an increase of 37.6%. However, this county is notorious for extreme swings giving the huge variations in prices in the San Juan Islands. Double-digit percentage gains were also seen in five other counties.
As long as inventory contraints persist, it is likely that price growth will continue. That said, modest increases in interest rates, in combination with declining affordablity conditions in several markets, will likely slow price appreciation.

Source: Windermere Real Estate Chief Economist, Matthew Gardner

First-time buyer down payment statistics

How does your savings strategy stack up against other first-time buyers?

The typical first-time buyer had a down payment of 6%.
47% of first-time buyers saved for their down payment in a year or less.
Among first-time buyers, 81% used their savings, 26% used gifts, and 10% borrowed money from friends or relatives for their down payments.

Source: NAR 2014 Profile of Buyers and Sellers

VENDOR OF THE MONTH | Ballard Lock & Key

It is extremely important that you change your locks after taking posession of your new home. You never know who might have copies of keys, garage door openers, etc., and changing the locks adds an extra layer of protection.

Do-It-Yourself, or consult a pro. Ballard Lock & Key is just one of many reputable locksmiths in the area. Please, please, please change your locks!

Ballard Lock & Key
206-783-6360
www.ballardlockandkey.com

PENDING SALE

This one bedroom, one bath condo in Greenwood went pending in a week. Demand for affordable condos in Seattle continues to be strong.

RECENTLY SOLD

Vacant land with view of Lake Sammamish got 5 cash offers in 24 hours, and sold in just two days for more than the asking price. Interesting fact— the winning offer owns the adjacent house and wanted to preserve their view.

NEW LISTINGS

Beautiful 5 bedroom, 3.5 bath home with territorial views at the end of a private lane in Bridlewood in Bothell. Offers will be accepted this week.

NEW LISTING

This immaculate 5 bedroom, 2.5 bath Redmond home that backs to Farrell-McWhirter Farm Park is on a shy-acre beautifully landscaped lot. Offers will be accepted this week.

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Heather Maddox, Broker
Windermere Real Estate/Renton, Inc.
heathermaddox@windermere.com
206-330-9185

Copyright © 2016 Heather Maddox Homes, All rights reserved.
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Windermere Real Estate/Renton Inc.
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Renton, WA
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Newsletter • January 20, 2016

Maddoxville | Jan. 2016

by Heather Maddox

Maddoxville Newsletter | Heather Maddox Homes

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MADDOXVILLE: a real estate information newsletter
www.heathermaddoxhomes.com

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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.

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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

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Heather Maddox, Broker
Windermere Real Estate/Renton, Inc.
heathermaddox@windermere.com
206-330-9185

Newsletter • December 15, 2015

Maddoxville | December 2015

by Heather Maddox

MADDOXVILLE: a real estate information newsletter
www.heathermaddoxhomes.com

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Happy Holidays!

I am so happy with the overwhelmingly positive response I got to the first installment of Maddoxville. I’ve wanted to send a monthly newsletter for many years, and it is so rewarding to see it finally come to life. Each month will feature stories, tips, market updates, new listings and recently sold properties.

Four years ago, I sold Scott and Aimee Heffernan a somewhat dated home in Bothell, that they lovingly referred to as “the cottage house.” They recently invited me over to check out the transformation of their home. I am so excited to show you all that they have done for this month’s Before & After. During the buying process, the Heffernans had big ideas for updating— as most Buyers do. In just four years they have been able to make most of those ideas become reality, which as their Realtor makes me feel like a proud parent.

Click here or the image below to view the Before & After of the Heffernan’s home.

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.

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When I am asked, “What area do you work?” I have a hard time answering it, and usually say, “the general Puget Sound area.”

I made a map to visualize where my clients sold or purchased homes in 2015, so you can see what I mean—Everett to Tacoma, both sides of Lake Washington, I’m literally all over the regional map.

I also take pride in finding my clients excellent agents in other areas to assist them with their needs. So please don’t hesitate to call me if you or someone you know needs an agent referral for properties outside of the area. Some examples from the past year were: Anacortes, Ashford, Gig Harbor, Oak Harbor, and Tacoma.

If you are interested in receiving a price opinion on your own property, or are curious what the current market trends are in your neighborhood, please give me a call.

FIND #heathershousefavs ON SOCIAL MEDIA

Thank you to so many of you that made the trek on a stormy night to Woodinville’s Januik/Novelty Hill Winery on November 12 for my “Taste & Take” Client Appreciation Party. I always love seeing and catching up with my clients, especially in a more relaxed atmosphere than buying & selling real estate. I hope you are all enjoying your bottle of wine while celebrating with friends & family over the holidays.

#heathershousefavs
Download images from the party, HERE.

Do you want to pay off your mortgage faster?
5 ways
to reduce
your principal

Choose a shorter payback period.
If you can afford higher payments, consider a 15-year fixed mortgage. You will pay off your home within a shorter timeframe and save 15 years worth of interest payments.

Round up.
The more you pay toward your principal, the fewer payments you’ll have to make in the end. For example, if the payment is $975 a month, make a payment of $1,000 and apply the extra $25 toward the principal. It may not seem like much, but it all adds up overtime.

Make biweekly payments.
By paying half of your mortgage payment every other week, you’ll make one whole extra month’s payment by the end of the year. Call your lending institution to see if this is a service they offer.

Make an annual lump sum payment.
Whenever you receive a windfall– your tax return, an annual bonus, an inheritance, etc. — apply it toward the principal of your loan.

Double the principal each quarter.
Four times a year, double the principal amount and add it to your total payment. For example, if the principal comprises $500 of your total payment, add an extra $500 to the principal of your regular payment.

RECENTLY SOLD

30K over list price

2 bedroom, 2 bath updated townhome in a great location between Ballard and Fremont. The unit had 3 offers in 5 days, and the winning offer waived an inspection.

Buyers get great deal

Negotiated the purchase of this Renton home for LESS THAN the list price for wonderful long-time clients. This is their third real estate purchase in five years, and they always make very smart decisions that continue to pay off.

@HeatherMaddox

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heathermaddoxhomes.com

Heather Maddox, Broker
Windermere Real Estate/Renton, Inc.
heathermaddox@windermere.com
206-330-9185

Buyers • October 24, 2011

Buyer’s agents are a FREE service!

by Heather Maddox

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! 🙂

Buyers • Statistics • October 17, 2011

What a difference 5 years makes!

by Heather Maddox

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!!

Sellers • Value • October 12, 2011

Wondering how much your house is worth?

by Heather Maddox

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.

Uncategorized • October 11, 2011

Welcome!

by Heather Maddox

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!

What ‘Slow Season?!?’

Annual Change in Home Sale Prices

First-time buyer down payment statistics

Happy New Year, and cheers to a bright 2016!

DIY transformation sets resale record

Mortgage insurance tax breaks extended

Premium payments may be deductible for some borrowers with adjusted gross incomes less than $110,000

How low is inventory?

#heathershousefavs Download images from the party, HERE.

Do you want to pay off your mortgage faster? 5 ways to reduce your principal

#heathershousefavs
Download images from the party, HERE.

Do you want to pay off your mortgage faster?
5 ways
to reduce
your principal