It was just announced that the USDA Zero Down loan program is coming back! This program is funded through the Rural Housing Administration, and allows buyer under a certain income limit to buy Zero Down, outside of city limits. In Whatcom County, all areas are included outside of the city limits of Bellingham. A couple of homes that I have listed that would qualify for the USDA program include 2565 Finkbonner Rd in Bellingham for $209,900, and 5144 Marshall Hill Rd in Deming, for $204,000.
This loan program also has no monthly mortgage insurance, so monthly payments can be extremely affordable (especially with today’s rates)!
Since the tax credit expired, there has definitely been a shortage of First Time Home Buyers entering the Real Estate market this summer. This should certainly help bring more first timers back into the market, which can have a trickle up effect on home sales and home prices. For more information, contact me here.
The expansion of the government’s Home Affordable program now includes a program that should help many sellers in distress and need to sell. If you’re behind in you’re mortgage payments, and/or owe more than you’re property is worth–the new HAFA program gives you an excellent alternative option to the typical shortsale process.
To qualify under Home Affordable Foreclosure Alternatives (HAFA), you must meet the eligibility criteria for the Home Affordable Modification Program (HAMP).
Typically on a shortsale, you have your home listed, and then once you get an offer, you start on a long process to negotiate with your lender. This process has many unknowns and usually is a process that takes 3-6 months.
With the HAFA program, you’re REALTOR can help you turn everything in to your lender before you list. Then the lender will agree to a list price before it goes on the market. You then have 120 days to get an offer on you’re home once you list. Then when you receive the offer, the lender will respond with in 10 days, and then it’s done and approved! In addition, there is the $3,000 in moving help that is available as well. Why should I consider a HAFA short sale?
Help you avoid foreclosure
Allow you to be “fully released” from any further liability on your mortgage
Provide financial assistance of $3,000 to help with relocation expenses
Once you recieve an offer, much shorter waiting period to get response and approval from you’re lender
Easier to plan for move and find a buyer for your home (since the approval happens before you list)
How Do I Qualify?
The eligibility criteria is based on the terms set forth under the government initiative. If you do not meet the eligibility criteria under HAFA, you may still be able to work with your lender on a short sale.
If you are in the Bellingham, Whatcom County, or North Skagit County area, and you are interested in discussing any of this, I can help you assess your situation to see if a shortsale or HAFA program is right for you. Whether this program is right for you or not, it is important to work with a REALTOR who understands the shortsale process and is knowledgeable about this new program. If you are in a different area, I can help you locate a specialist. Contact me here.
3959 Trickle Creek Blvd in Bellingham is offering a promotion that expires on August 9th! Just reduced to $316,000, plus offering a $4,000 bonus for this week only! This $4,000 can be reduced off the price, or go towards paying your closing costs.
This is a like-new 4 bed, 2.5 bath home with 2,086 sq feet.
It’s in the desirable Trickle Creek Neighborhood and it has possibly the best backyard setup in the neighborhood! They built an awesome back deck and gazebo and the backyard is fully fenced. The best part for me is the greenbelt back drop.
Give me a call at 360.920.5901 or contact me here if you’d like to see it. This is really a 1 week deal only!
As expected, May and June have both been slower than typical for this time of year, in large part because of the expiration of the tax credit. Pending sales were respectable (82) in June, but inventory of available homes for sale continues to rise. (see below)
With inventory rising, the supply of homes is increasing to it’s highest level in Bellingham since January. The current inventory level is 9.8 months–which means that for every 1 home that sold in June, there was about 10 for sale. Once the supply of housing rises into the 9 + month range, that indicates downward pressure on home prices.
The surprising statistic is the List Price to Sales Price Ratio, which is UP to 94% (see below). At the same time, the average dollar per square foot that homes have been selling for in Bellingham is down ($155 per square foot average). What that means, is that sellers had to be more aggressive in there price reductions to sell there home last month. Once a home was priced “right” buyers are showing a willingness to pay closer to asking price. But it’s easy to recognize that the bar has been rising on what buyers see as a “value” in today’s market.
With lower rates (under 5%!) and lower prices, I expect sales in Bellingham to improve slightly in July, but home prices will continue to stay soft in the short term.
It is still an incredible time to buy though, because what a buyer may hope to gain in lower prices, may be more than offset as interest rates rise. Remember that for every 1% interest rates go up, the buyers purchasing power reduces by 9%.
This is really beautiful home and property. Deming is located about 20 minutes east of Bellingham, WA off of the Mt. Baker Hwy. You feel like your in your own private Oasis on this big private lot, with a stream and waterfall. Every window of the house looks out to trees, and the home has been maintained in excellent condition. This is also a great home for someone looking for shop space, since there is an over sized detached 2 car garage, PLUS a separate workshop in the basement. The home list as only having 2 bedrooms, but has a huge basement that could easily be separated to create a 3rd bedroom and rec room. There is also storage space galore. Just overrall an incredible deal at this price, and unique property.
This is subject to shortsale. On my website, you can learn more about shortsales here. You can also email me direct with any questions about it paulbalzotti@johnlscott.com. Here is a video I made showing the creek and much of the homes features..
The bad news is that Bellingham home prices are down 7.5% in the last year. The good news is that Bellingham, WA home prices are still up 88% over the last 10 years, and still up 203% over the last 20 years. That makes the Real Estate appreciation in this area rank in the 97th percentile nationally!
Today’s current home prices are down 9.6% in Bellingham from the peak, which is really not that bad compared to many areas of the country. Prices are showing some signs of stabilizing, and many are predicting we will hit bottom in the 3rd or 4th quarter of this year, followed by modest appreciation or flat prices for the next couple of years. This is really just a symptom of the 10 year cycle in Real Estate. Being at or near the bottom of home prices, and with historically low interest rates, it is really a great time to be investing in Real Estate.
Home Price chart of Bellingam over the last 30 years.
When working with buyers looking at homes or condos in Bellingham and Whatcom County, they have the luxury of incredibly low interest rates today, lower prices, and more selection.
What has happened though, is buyers expectations have gone up at the same time. Buyers want the $300,000 house for $275,000, or the house that was selling for $600,000 (last year) for $500,000. They want value, which makes sense, and that is what it’s all about!
But even when a buyer finds a good value, he/she still need to consider trade-offs. From the upper end to the lower end, it’s hard to get it ALL. Unless you pick a lot in your perfect location, and custom build it, buyers need to accept that there will be some trade-offs in your search, always.
The sooner the buyer separates needs from wants, the better experience they will have in there home search…And the better decision they will ultimately make. When looking at homes, it can be very emotional, and so it is important to use rational to consider your priorities.
Example being many buyers prefer, new or newer construction. If you want a newer home, you may have to accept less square footage for your money, or a smaller yard, or moving into a development that is not totally established.
If you want a big yard, and more square footage, you may have to seriously consider how much work you are willing to put in. Many times I find solid homes that fit a buyers criteria perfectly, but they can’t get passed the cosmetics, if the finishes/colors are outdated. Many times this may be the perfect match with some updating and personal touches. Also, deciding how important location is to you. Many buyers look at on-line classifieds and look at the houses first, and consider the location later. Often times a better way to search is to use the map search feature, and draw out the areas you’d prefer to be in, and start your search that way.
So in summary, it is best to analyze what trade-offs your willing to accept when considering a move.
Apologize if this is being cliche, but this beautiful home is definitely a one-of-a-kind!
2565 Finkbonner road Bellingham, WA, is a home located in the Gooseberry Point community, which is about 20 minutes to Bellingham, and about 10 minutes to Ferndale. It has a Bellingham address, but is in the Ferndale School district.
The home was originally built in 1954, and then in 1993, completely gutted and remodeled, and a 2nd floor was added at this time as well. The 2nd floor was designed to take in the bay and Island views, and has a beautiful master suite, and an office space, with a neat built-in for a bed (perfect for guests).
So it now effectively offers 3 beds, plus a loft (office and guest bed) and 2 full baths (one up, one down). The foundation, wiring, siding, roof, and most components of the home were re-done to make this effectively a 1993 year built home. Then in more recent years, the current owners updated the home with fresh interior paint, a remodeled kitchen, new fixtures, and also added a gas fireplace.
So what you have now, is an updated home, with all of the modern features (stainless appliances, solid surface counters, master bath, new fixtures, double pane windows) but lots of charm and character through out.
The house also has great outdoor space to entertain, garden, and barbeque. There is a front deck that looks out to the bay, and then a back deck that is more private and goes out to the fenced backyard. There is handi-cap access from the rear deck as well.
The best part of the home, has to be the bay views and the beach. Gooseberry Point has a beautiful sandy beach, and in the summer, it is hard to beat. You will find many clam digging or kayaking, or just walking the beach, and soaking in the view. All of the homes in Gooseberry Point have private waterfront rights to this beach.
Here is a short video clip I made, showing the beach, and the short distance from the beach to the house..The video quality is not great, since this was shot on my cell phone.
You are also just steps to the Lummi Island Ferry, which you can walk on for the 10 minute ride across. Lummi Island offers restaraunts, biking, and much more. It’s just a very neat island to be able to take advantage of.
In this price range, there is always trade-offs. In this case, the trade-off would livingoutside of town and having a 10-25 minute commute.
But if your someone who avoids the “cookie-cutter”, and is looking for value in this price range, or just wants to live by the bay, it is absolutely worth your consideration.
Update 7/1/2010 -Obama has passed into law the extension, so it is official!
For those that entered into a purchase and sale in April, and still have not closed, all of that stress about the looming deadline may not be needed.. The Senate has just gave you more breathing room to qualify for the $8,000 tax credit. The deadline has been pushed back 3 months, from the end of June, until the end of September.
This still needs to go through the house and then approved by the President, but I can’t see a reason why this won’t go through. The Senate passed it with an overwhelming majority, and we need it!
This is potentially great news, since the National Association of Realtors estimates that nearly 1/3rd of the buyers trying to close by the end of June will not close on time. I have clients buying homesand condos in Bellingham that are trying to close later this month as well, and lenders have been totally behind all year long. So safe to say it would have been a disaster if 150,000 to 200,000 would-be buyers lost out on the $8,000 credit because there loan got delayed beyond there control. Bottom line is this was a necessary bill and will definitely cover everyone that had got an offer in by the end of April.
Keep in mind this would not extend the credit for new offers-only existing pending contracts.
We wanted to find another way to give back to the community and help someone in need. With that in mind, I have partnered with John L Scott to once a year, offer to list a home for Free (no listing commission). This is not a gimmick. John L Scott Real Estate and I will take zero commission and zero fees. This is donating time and money to help someone in need, and it’s as simple as that.
We are trying to find a candidate with a specific circumstance, to be sure we offer this service to someone truly in need.
The criteria is as follows:
-A building or property owned by a Non-Profit Charitable Organization.
OR
-A “Distressed” sale. Loss of job, or divorce, or job relocation, or other financial hardship making mortgage difficult to pay.
-Less than 10% equity (difference between how much you owe, and how much your home can sell for). We offer a free market analysis if you’re not sure of how much equity you have.
-Home or Condominium and located in Whatcom or North Skagit County
Things to note:
-This does not include 2.5 or 3% commission offered to buyers agent. If we find the buyer, we will not charge ANY commission (Zero), but if a buyers agent brings an offer, we still offer a commission to the buyer agent/broker.
-If you owe more than your home is worth, this would not qualify for the Free Listing offer. But we can help you sell your home and negotiate a shortsale on your behalf with your lender. Commissions are discounted and usually paid out of closing costs and negotiated during shortsale process.
Example of situation we are looking for:
Seller owes $190,000 on house, but house is only worth about $200,000. Seller can no longer make payments. Paying full commissions would require a shortsale or other distressed sale. With the “Free” listing, seller saves approximately $6,000 in commission. With this savings in closing costs, seller can then afford to sell and payoff mortgage. This may help save some one’s credit, and ultimately payoff the liens they owe on there home.
Due to the time, and costs that go in to marketing a home, we are offering just One Commission-Free listing a year. Right now, the Free Listing for 2010 is available. To inquire, email paulbalzotti@johnlscott.com or call 360.920.5901.
