Nicole Weidauer

For those of you who have the privilege of living in Shoreline, you know that it is a great city. Shoreline was featured in Seattle magazine as the #1 best neighborhood in the Seattle area. We have a lot to be proud of! We are an ever growing city that just seems to be getting better and better.

When I first moved here in 1997, the city looked very different than it does today. Where Central Market is today was an old Thriftway store. Top Food & Drug on 175th used to be a run down framing shop and grocery store. The mini mall and John L. Scott real estate office just off of Aurora across from Fred Meyer once sat an outdated mini mall and QFC store. And in 2008 we welcome a new addition to our city. At about 190th and Aurora, construction is underway for a new YMCA, senior housing, and other affordable housing options. Major public improvements like the North City Project and the Interurban Trail have also been added for better enjoyment to our citizens.

We are an ever changing city and with each change comes great improvement for our residants and the property values of the homes they live in. The City of Shoreline wants to create a shared vision for the city and wants your input.

Shoreline City Council is currently drafting a vision for the future that will guide Shoreline's growth and development for years to come. What Shoreline attributes or characteristics would you like to see preserved or improved? How can we meet the challenges of anticipated growth in a way that keeps this the #1 place to live in the greater Seattle region? What changes in technology, society or the way we live do you envision by 2028?

City Council is asking residents to take part in this process and get involved in community conversations about Shoreline's future. Meetings to discuss the vision for Shoreline's future will be held in October through the city in it's various neighborhoods. Check out the link below for the calendar of meetings in your area and get involved. Shoreline needs your experience, your ideas, and your opinions to turn our shared vision for Shoreline's future to become a reality.

http://cosweb.ci.shoreline.wa.us/uploads/attachments/cir/Vision%20flyer.pdf

Fannie/Freddie Bailout Situation

For those of you who haven't heard yet, federal officials announced their takeover efforts of mortgage firms, Fannie Mae and Freddie Mac. Talk of the takeover has been going on all summer and Sunday they were finalized and the two companies will now be overseen by the Federal Housing Finance Agency. "Under conservatorship, the government would temporarily run Fannie and Freddie until they are on stronger footing" (http://money.cnn.com/2008/09/07/news/companies/fannie_freddie/index.htm). Freddie CEO Richard Syron and Fannie CEO Daniel Mudd will no longer run the agencies, while the FHFA will assume control of the boards.

"(Both Fannie and Freddie) have been badly hurt in the last year by the sharp decline in home prices as well as rising mortgage delinquencies and foreclosures. All told, the two firms have racked up about $12 billion in losses since last summer."

"Shares of Fannie and Freddie, which have fallen more than 80% as of the end of Friday's session, were hammered this summer among concerns they would need to raise additional funds to cover future losses or need to be taken over by its federal regulator. Investors feared that either step would reduce or wipe out the value of current shareholders' stakes."

What this means to you?

"Sunday's federal takeover of Fannie Mae and Freddie Mac will likely translate into lower mortgage rates and greater availability of credit, experts said. Rates could drop by 1 percentage point from the stubbornly-high 6.39% for a 30-year fixed rate mortgage" (http://money.cnn.com/2008/09/07/news/economy/fannie_homeowners/index.htm?postversion=2008090809).

The bailout of Fannie and Freddie will help reduce the cost of financing and will greatly help would-be home-buyers. Just today the interest rate for a 30-year fixed dropped about 3/4 of a percent to about 5.6%. That is great news to anyone who is in need of financing for home loans.

According to L. Matthew Lewis, of Greater Seattle Mortgage, the rates will not stay this low for long. "This drop in rates is not guaranteed to continue for much longer but we can count on them staying low at least into November."

While home prices remain low, inventory remains high, and now mortgage rates make a dramatic drop, now is a great time to get into the home buying market. If you have been on the fence about whether now was a good time- here is your sign! Take advantage of this opportunity in front of you and give the Egerer & Weidauer Team a call today to get on the path to home-ownership!

Jeremy 360.990.4083 www.jeremyandnicolesellhomes.com Nicole 206.661.7256

We all know that Seattle is the best city ever - and now the rest of the world does too!

Two major magazines, National Geographic Adventure and The Smithsonian, feature articles in their September issues about how wonderful our fair city is.

National Geographic picked the top 50 best places for the adventuresome to live. According to the article, Seattle ranked #1 and was chosen among the most innovative towns that welcome people who relocate there. The magazine also says these spots have plans for becoming still more attractive - all without sacrificing green space or jobs (http://adventure.nationalgeographic.com/2008/09/weekend-getaways/best-places-to-live/adventure-towns-text).

University of Washington professor, Charles Johnson, relocated with his family from Long Island to Seattle in 1976. In the latest issue of the Smithsonian, Johnson shares a rather poetic tribute to the place he now calls home. He praises the welcoming spirit that people in the area possess. "Yet people who came to Seattle could somehow recast it in the image of home, arranging the city around themselves like so many pillows on a bed. One day you'd wake up to find things so snug and familiar that you could easily believe that you'd been born here. In other words, this is an ideal environment for nurturing innovation, individualism and the creative spirit" (http://www.smithsonianmag.com/people-places/mytown-seattle-200809.html).

It's no wonder we are still one of the best real estate markets in the country... we are a friendly, open, and adventurous place to live and play in. And we have the articles to prove it!

Being a player in this market is a tough one. Buyer's are hesitant to buy and seller's are weary of weather or not their listings will sell. Because of all the fear floating around, more fear comes as a result. We are in a self perpetuating real estate crisis!

In order to get things moving again, buyers and sellers need to come to grips with the realities of this market and start acting bold in the face of uncertainty. Action is the only way we are going to get out of this and if you are up to the challenge of jump starting our housing mess, then buckle up and heed the advice of the play makers making a difference in our current housing market.

BUYERS:

This is your time! Inventory is at all time highs, prices are dropping, sellers are flexible, and rates will remain steady through the end of the year (http://www.msnbc.msn.com/id/26436824). It really IS a wonderful time to make some money in real estate and with no skin off your back.

"[During the boom] buyers usually accepted the property as-is, and we even occasionally offered to pay the seller's state and county transfer taxes. No more!" said Washington D.C. based agent John Sullivan. Buyers are in the driver's seat and they know it. They're using that leverage to pry more concessions out of desperate sellers than they ever dreamed of during the bubble (http://money.cnn.com/2008/08/29/real_estate/sellers_concessions_in_buyers_market/index.htm).

"Real estate decision-making has always been one of the most critical exercises that a household must undertake. Home ownership impacts not only your emotional well-being and lifestyle on a very large scale, but also your family's personal financial wellness, both monthly and lifelong. A generation ago, people treated decisions such as the one you are currently facing with a deliberateness and gravity appropriate to the importance of the subject matter, but over the past decade or so -- not so much. The recent foreclosure crisis, in addition to creating opportunities for buyers, has also had the silver lining of creating a national-level consciousness of what can happen when real estate decisions are not made with sufficient information, long-term lifestyle and financing planning, or attention to detail" (http://www.boston.com/realestate/news/articles/2008/08/28/get_rid_of_buyers_block/).

Real estate agent, Tara-Nicholle Nelson, said there are 3 things a buyer in this market should do to arm himself for the home-buying process.

1.) Mindset Management - Rather than approaching this home-buying experience from a place of fear and paralysis, approach it as a project. Your task is simply to gather the specific information you need to equip yourself to make the right decisions throughout your home-buying process. Warren Buffett, advised an audience to "look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it."

2.) Need-to-Knows - Real estate markets, values, negotiating practices and transactional procedures are very local --many real estate news reports that confuse people are not. You simply cannot know what the market is like in your state, county, city or even neighborhood unless and until you obtain specific information from a local real estate professional to determine whether now is the right time for you to buy, and how to harness current market conditions to make the best buy possible.

3.) Action Plans - First, decide to make your decision whether to buy or sell based on your lifestyle and life plans. Next, get educated about your local market and make decisions about how to best execute your plan of buying in a way that takes advantage of current conditions. And finally, get your own team of professional advisors, by referral. At the very least, talk with a CPA about the tax implications of home ownership; a mortgage broker regarding the mortgage rates, terms and price you can qualify for; and a Realtor about current, local market conditions and what sort of home you can expect to find at your price range.

SELLERS:

We're in the midst of a challenging home-sale market in many areas. However, soft markets can provide opportunities for some home sellers. If you want to sell your home, you've got to set yourself apart from the competition. You can still sell your home despite the current marketing conditions: all it takes is a little creativity, some clever strategies - and a whole lot of patience!

1.) Price Right - "Sellers need to know that correct pricing is and always has been the key to a successful marketing process." says agent Chelsey Samonte. (Price Shopping-True Value, Seattle Metropolitan Magazine, September 2008) Pricing your home right for today's market is a vital step to take when selling your home! Reference my last blog, The True Value of a Home, for a more in depth look at pricing your home effectively in this market.

2.) Offer Financial Incentives - Buyers are in the driver's seat now and sellers need to follow suit. By offering financial incentives to prospective buyers to cover a portion of the closing costs, you will attract a larger portion of today's buyers looking for a great deal. Often times, potential buyers are hit with hefty closing fees from mortgage lenders, and can often be scared out of purchasing your home. If you offer $3,000-$6,000 for assistance with closing fees, you'll save much more money than by lowering your asking price by $10,000 or more - and you'll provide prospective buyers with a selling point that many other homeowners wouldn't think to offer.

3. Prepare Home for Buyers - Buying a house is largely an emotional decision because people are not just purchasing a home; they are buying a dream ... a lifestyle. If you can help them with their vision so they don't have to rely completely on their imagination, you positively impact how they feel in the home, which will be reflected in the sales price and number of offers you receive. Effective staging maximizes those feelings, creating an atmosphere that makes people want to linger and imagine themselves living in the space. Ultimately, staging creates a home the prospective buyer will not be able to live without. Dana Dickey, vice director of Interior Redesign Industry Specialists said, "We want to give each home that ‘wow' factor, especially in today's housing market, in which home buyers largely make their final decision based on emotional factors, it's important that a house make a good first impression" (http://rismedia.com/wp/2006-10-17/effective-home-staging-proving-crucial-in-swaying-buyers-in-competitive-housing-market/).

DISTRESSED HOMEOWNERS:

We know all to well of the mess of people in financial hardship due to housing situations. Legislation signed by the President has started to help thousands of homeowners get out of risky loans and into more affordable ones. There are also organizations and coalitions such as The Hope Now Coalition, that are working hard to rescue desperate families in need. Hope Now has helped more than 2 million at-risk borrowers stay in their homes during the past 13 months, according to numbers released by the coalition last week.

"Despite this progress, foreclosures continue to clumb; 91,752 families lost their homes in July. That represents an increase of 14% from June and more than double the number of July 2007, when only 42,043 homes went to foreclosure.

But even now, after months of publicity, many borrowers still fail to respond to Hope Now's offers to help.

Of the nearly 1.6 million letters that have gone out since November 1, 2007 to borrowers 60 days past due, more than 80% of borrowers still had not called their lenders a month after receiving the letters, according to Schwartz. 'Outreach is crucial,' she said. 'Borrowers have to talk to their lenders. That's the most important message we communicate' " (http://money.cnn.com/2008/08/26/real_estate/Hope_now_hits_two_million/index.htm).

If you find yourself facing the same situation that 91,000+ families faced last month, you need to take some steps to pull yourself from the fire.

1.) Speak up - A foreclosure is nearly as much trouble for your lender as it is for you. Banks are more than willing to do what it takes to help you get out of this mess.

2.) Know your options - The first thing a mortgage company will do is put you on a repayment plan, which will likely involve either suspending or reducing your payments for a few months. Whatever you don't pay will be rolled back into the mortgage for repayment later on or save up enough money to get back on track. If the repayment plan doesn't help, the company's next offering will probably involve an interest-rate modification. They can freeze it interest rates or even lower the interest rate to keep your payments down. This can make a world of difference when it comes to the amount of money you're forking over on a monthly basis.

3.) Seek outside help - Organizations like HOPE NOW, a non-profit alliance of mortgage services, counselors and investors (888-995-HOPE) is there for you in your time of need- Use them!

4.) Learn your lesson - If one good thing has come out of this housing situation, it's that it's served as a not-so-gentle reminder of the importance of having a long-term lifestyle and financing plan. I have said it before and I will say it again, Dave Ramsey's 7 Baby Steps is the most effective way to dump some serious debt and building great wealth (http://www.daveramsey.com/etc/cms/baby_steps_2867.htmlc).

So whether you are a buyer, seller, or are in pretty big pickle, take note of the options out there and use them to your advantage and turn this crisis situation into a profitable one.

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The Egerer & Weidauer Home Team is always available to help with whatever situation you are in so give us a call and we can get things started!

Jeremy Egerer 360.990.4083 www.jeremyandnicolesellhomes.com Nicole Weidauer 206.661.7256

"Sellers need to know that correct pricing is and always has been the key to a successful marketing process." says agent Chelsey Samonte. (Price Shopping-True Value, Seattle Metropolitan Magazine, September 2008)

Pricing a home correctly and in line with the market value from the beginning will save you lots of time, money, and aggravation. An important thing to remember is that the seller creates the price but the buyer is the one who ultimately creates the value. Come in at a price that is in line or even slightly below what the comparables indicate a home's price should be and you will get tons of activity. Or pick the alternative and have your listing sitting months past when it should have sold had it been priced right from the beginning. You don't want to trail the market and always be behind on price reductions to get to market value.

When pricing a home for sale look at the like-kind properties selling in your neighborhood. "Look at comparables for similar houses. Study prices and sales for one year ago, six months ago, three months ago and current numbers, says Dick Gaylord, president of the National Association of Realtors. says William Poorvu, professor emeritus at Harvard Business School, said "You've got to know more than you would have if you'd sold a year ago if you want to protect yourself, you have to become knowledgeable. You have to look at what's being sold and at what price," says Poorvu. (http://realestate.msn.com/Selling/Article_bankrate.aspx?cp-documentid=6030034)

Here is some non-conventional advice that seems to be catching on with today's sellers. Barbara Corcoran, founder of one of New York City's largest real estate companies, recommends that sellers price their homes 15 percent below comparable homes on the market. "Slash the price of your home before you put it on the market." (http://www.frontdoor.com/news/article/2106/?nl=FD_v038_14)

"If you look at ebay, sellers start with the lowest price," said Klein, a sales agent with Schweppe Burgdorff ERA in Upper Montclair. "They say 99 cents and no matter what the product is, it's going to find its value in the market place." Nothing draws bidders quicker to an auction than a low opening bid. Setting a list price slightly below market value builds excitement and is more likely to create a bidding frenzy -- which can ultimately drive up the final price in the end. (http://www.nj.com/business/index.ssf/2008/03/real_estate_study_finds_low_li.html)

In King County, houses sit on the market for an average of over 70 days (Multiple Listing Service). To avoid sitting even longer, homes should be priced right and be making price adjustments as time moves on. The longer the property sits , the more reason a buyer has to make a lower offer. There are buyers out there, but there is a whole lot of inventory too! So the buyers can be picky and if they don't see value in your house, they will move on.