Francine Viola, Realtor - Homes for Sale in Olympia WA Expert

February 2012 Real Estate Market Update

The real estate market in DuPont, WA (in Pierce County) is holding steady.

In February 2012, there were six single family home sales with an average sales price of $307,250. Year-to-date, the average home sales price is $298,011.

In all of 2011, the average sales price was $285,349.

In all of 2010, the average sales price was $313,576.

With Pending Sales up, buyers believe we may have hit bottom. Pending Sales means there is an increase in activity. Buyers are making offers on homes and sellers are accepting those offers. Not every pending sale results in a closed sale but nonetheless, buyers are showing their confidence.

According to Lynn Franco, director of The Conference Board Consumer Research Center, consumers were more optimistic about the short-term outlook than they were a month ago.

“Consumers are considerable less pessimistic about current business and labor market conditions than they were in January. And despite further increases in gas prices, they are more optimistic about the short-term outlook for the economy, job prospects, and their financial situation.”

Nationally, the overall direction for the housing market is positive, according to analysts with the National Association of Realtors. Its latest figures show the past few months of contract activity are the highest in more than four years. The market isn’t as strong as it could be because of overly restrictive lending standards and contract cancellations due in part to appraised values coming in below a negotiated price. Locally, others believe that the only reason why we are not in a hot, thriving market is because of short sales and foreclosed properties, which represent about one-third of the transactions.

About Northwest Landing in Dupont, WA

Northwest Landing in Dupont, WA is located just minutes from Joint-Base Lewis McChord (JBLM) on the west side of Interstate 5.

Northwest Landing is still expanding and growing, and when fully built out, there will be approximately 12,000 homes. The residential section of Northwest Landing consists of single family homes, condos, townhomes as well as rental apartments and 55+ housing.

While Northwest Landing is a large community, the design of the neighborhood was carefully planned to create continuity and promote green living. With an extensive system of sidewalks, bike lanes and walking trails, Northwest Landing encourages leaving the car at home when visiting the city center with amenities such as shopping, restaurants, and other services.

Some of the design elements you’ll notice in Northwest Landing are:

• Streets are narrow to slow traffic and make pedestrian crossing easier.
• Many homes have front porches with garages in alleys so cars won’t hit pedestrians while backing out.
• Multifamily housing is designed to look like the single family homes, and blends in with the neighborhood.

(All data compiled from the Northwest Multiple Listing Service. Data is deemed accurate but not guaranteed.)

Interested in living in Northwest Landing? Call me today to find your next home. In the meantime, check out the current homes for sale.

How do you buy a $249,000 home when you are only qualified for $120,000? Be an investor!

With housing prices lower than the peak of the market, as well as low, low interest rates, investors are on the lookout for a good deal. But you don’t have to be an investor to pick up a great investment property.

In fact, if you are a first-time homebuyer or maybe an experienced homeowner looking to downsize, you may want to look into purchasing a duplex, triplex or fourplex and live in one of the units.

The rental income from the other unit(s) can count toward qualifying for the loan.

If you purchase a duplex for $249,000 with an FHA, owner-occupied 30 year loan, your down payment would be $8,715. With an interest rate of 3.75%, your estimated monthly payment for the duplex would be $1,600. If you rent out the second unit for $1,000 per month, your mortgage payment would be $600 a month.

You can use rental income to help qualifty when using:

• a conventional loan (but must have 2 years of landlord experience)
• a VA loan (but must have 6 months landlord experience and 6 months of reserves)
• an FHA loan - no limitations!

Why isn’t everyone doing this?

The key to making this work is finding a 2-4 unit residential property that you can live in yourself. Renters may be able to accept a 2 bedroom, 1 bath home on a temporary basis but you, as a long-term owner, may not want that small of a property. But there are properties are live like townhomes and offer good square footage, ample bedrooms and even a yard. Those are the properties you may want to consider.

The other advantage is if you need housing for multi-generations. Instead of having your aging parents move in with you, they can live right next door to you. Or your college-aged kids can have a “place of their own,” but still are nearby. Or first-time homebuyers who don’t like what they see in their price range can check out this option of becoming a homeowner and a landlord.

If you don’t like the housing options available at the amount you’ve been qualified for, discuss with your lender this option of becoming a landlord to increase your purchasing power.

To rescind or terminate – that’s the question, but what’s the difference?

As a home buyer in Olympia, WA, you have a mutually-agreed upon purchase and sale agreement with the seller, but a situation arises during the transaction where you cannot go through with the purchase of the home. For example, the home inspection uncovered an issue that is a deal-breaker for you. Or maybe you discovered in the neighborhood’s covenants that they don’t allow dogs and you have three. What do you do – do you rescind or terminate? Is there even a difference?

Definitions

A rescission restores the parties (buyer, seller, brokerages and brokers) as though the agreement was never written. A rescission also releases the parties from any and all present or future liability.

A termination ends the agreement at that point in the agreement. A termination recognizes the agreement (unlike the rescission) and does not release the parties from liabilities.

What to do?

I am not offering any legal advice. Buyers and sellers and their respective attorneys need to determine the best course of action for their particular situation. I am only commenting based on my professional experience as a Realtor.

In many and most instances, a termination is in order.

The language in our purchase and sale agreements in Olympia, WA state in many instances that if a condition cannot be met, then the parties agree to terminate.

For example with the home inspection contingency, the buyer has the option of “disapproving the inspection and terminating the agreement.” But all liabilities are still in place. The inspection contingency also states, “Buyer shall be responsible for all damages resulting from any inspection of the Property performed on Buyer’s behalf.” If the buyer terminates the agreement based on an unsatisfactory home inspection, the buyer is still responsible for any damage. (This is the language that has been agreed to in the purchase and sale agreement.) But if the buyer chooses to rescind, then this agreement and the liabilities do not exist.

Sellers also need to consider this as well. In this example, if damage was done during the home inspection and the damage wasn’t readily known and was discovered weeks later, if the buyer has terminated, then the buyer is still liable for that damage.

So what is the best answer?

Ask your attorney. This answer requires legal advice. If your Realtor is not an attorney, do not take their guidance.

What if the Escrow Company asks for a rescission? Or a termination?

The escrow company is a neutral third party, which cannot offer legal advice. If the closing officer requests a rescission or a termination, they are offering legal advice. Instead, they need to ask for the instructions on how to disburse the earnest money.

Rescission and termination are NOT interchangeable terms. They have completely different meanings. Make sure you understand the meanings, and consult with your attorney to determine what course of action is best for your situation.

Olympia, WA is for the birds!

If you are like me, you may have a few bird feeders with different kinds of feed in your yard to attract all different kinds of birds. Here in Olympia, WA, we are fortunate to have a very diverse bird population, and it’s interesting to see who visits your backyard feeders!

This weekend, the Audubon Society needs your help in the Great Backyard Bird Count to assess the bird population. It’s easy to do. Look out your window for at least 15 minutes on any day from Friday, February 17^th to Monday, February 20^th, and count the number of birds you see. Then log in your results at www.birdcount.org/gbbc.

You’ll need to be able to identify the birds as well and write the highest number of that species you saw at one time. This website also has a helpful identifier download.

In the Olympia area, past volunteer bird counters counter 105 species! That is a lot of birds compared to surrounding areas that only counted 48-65 species. Not only do the birds like living in Olympia, but you just may like it, too!

If you’d like to learn more about living in the capitol city of Washington, call me today! I’d love to give you a bird’s eye view of the great neighborhoods in Olympia, WA.

When de-cluttering, did you also de-drug to get your home ready to sell? Where to take your unwanted medications in Olympia WA.

When getting your home ready to sell, most homeowners will clean and de-clutter, spruce up the yard, and maybe add a fresh coat of paint, but there is another part of your house that may be over looked and that is your medicine cabinet. You’ll want to put in a safe place your medications when your home is being shown, but this is also a good time to go through your medicines and dispose of the expired and unused prescription and over-the-counter medications.

Thurston County is one of the 17 counties (of Washington’s 39 counties) that provides free, safe and secure medication disposal drop-off locations. Also visit Thurston County’s Solid Waste website.

Why can’t I just put the medication in the trash?

Medicines are hazardous materials and bad for the environment. Once in the landfill, the medicines will breakdown into harmful chemicals that can leach into the water system. Flushing medicines down the toilet also contaminate the water system. Even though water treatment plants treat wastewater, they are unable to filter out the pharmaceutical compounds, and these compounds are then released into Puget Sound. Of 139 streams sampled in the US, 80% tested positive for pharmaceutical drug contamination.

What is the harm in keeping unused medication?

As a home seller, you don’t want to have any medications accessible to people who are viewing your home. The drugs of choice for abuse are prescription drugs, but over-the-counter drugs can also be abused.

Strangers are not the only problem with keeping unwanted medications. Accidental overdoses and poisonings are the leading cause of accidental deaths according to the Washington State Department of Health. Gil Kerlikowske, Director of the Office of National Drug Control says, “More than 70 percent of people who abuse prescription drugs get them from friends or family – often from the medicine cabinet.”

Where do I dispose of my unwanted medications for free?

In Thurston County, there are several drop box locations. All collection locations take controlled substances like Oxycontin or Vicodin EXCEPT Group Health.

Lacey Police Department - 420 College Street SE (drop box available 7 days a week, 24 hours a day)

Thurston County Sheriff’s Office – 2000 Lakeridge Dr SW outside of Building #3 (7 days a week, 24 hours a day)

Tumwater Police Department at City Hall – 555 Israel Road (Monday-Friday, 8 AM to 5 PM)

Rainier City Hall – 102 Rochester Street West (Monday-Thursday, 8 AM to 5 PM)

Tenino Police Department – 358 McClellan Street South (Monday-Friday, 7:30 AM to 4 PM)

Yelm Police Department – 206 McKenzie Avenue SE (Monday-Friday, 8 AM to 5 PM)

Group Health Cooperative – 700 Lilly Road (Monday-Friday, 8 AM to 11 PM; weekends and holidays from 9 AM to 7 PM. Group Health does not accept any controlled substances.)

For locations in other counties, visit www.TakeBackYourMeds.org.