Wednesday, February 4, 2009
Private Fox Island Retreat
This cottage is both charming and historical. Originally the site of one of the first schools on Fox Island, much of its original styling and design has been retained, yet it has been modernized to remain functional. The bell in the belfry can still be rung from the living room. The main home is bright and cheerful and features two bedrooms and one bath. The adjoining guest quarters has a 3/4 bath, sleeping loft and large multi-purpose room. Also, being on two plus acres makes the property large enough for potential expansion or renovation. The waterfront dock is shared with the neighbor. You can see a virtual tour of this property at http://www.windermere.com/tid222... Additional information about me and my listings is available at http://kenthiemann.mywindermere.com/.
Airpark Beauty Reduced $320,000
Situated just SE of Seattle, Washington, this immaculate & well-designed property features a four bedroom, den, four bath residence with great living and entertaining space; multiple outdoor patios; a picturesque view of Mt. Rainier; and a detached airplane hangar with an oversized RV garage, multi-purpose office and a two bedroom rental or guest quarters. With substantial down payment, owner will consider a private contract. Please view it at http://www.postlets.com/res/1038529 or visit my website at http://kenthiemann.mywindermere.com/.
Friday, January 30, 2009
How is your family budget?
This morning I had an opportunity to talk with a representative of Chase Credit Card Services in Springfield, Missouri. I had been directed to a supervisor because of an inquiry about the sudden increase in the minimum payment on my Chase Credit Card. I also had questions about a $10 service fee which I had noted when reviewing my monthly billing statement. The $10 charge had never appeared before.
Their representative was pleasant but firm and told me that Chase Credit Card Services had sent out a letter last fall outlining changes where the minimum payment on Chase Cards would be increased from 2% to 5% of the outstanding balance. I noted that I did recall receiving such a letter. But had called and was told the letter related to different accounts then mine. It was further explained that the changes were necessary because of the national credit crisis occurring. Their representative never explained the $10 service fee. I asked for a copy of that letter and it was agreed they would faxed it. But it was unclear when it would be faxed. Later I received a call saying it would be mailed instead.
While it is unclear if these changes affect every Chase Credit card holder, my account was created when I took advantage of a low fixed rate of 4.99% guaranteed for the life of the loan. Chase’s representative quickly pointed out that while the rate was guaranteed, the amount of the minimum payment was not. However, the random $10 service fee was not noted. It increased my otherwise guaranteed 4.99% rate to 8.04%. But, as he said, the changes were necessary because of the national credit crisis.
The question raised here is, can a family withstand an increase greater than twice, two percent-to-five percent, of any single line item within their monthly budget? Another question is, whose crisis is Chase Credit Card Services really concerned? Is it a crisis that Chase Credit Card Services guaranteed a low fixed rate for the life of a loan? Or maybe they want their low fixed rate obligations to go away? Chase’s representative said the explanatory letter sent to me had indicated I could opt out of the minimum monthly payment increase. But, if I did, I would have to agree to an increased rate of something over seven percent. Hasn’t that already happened? For lack of a better term, isn’t this legalized extortion?
But, once again, what about that family whose budget is already stretched to the limit. Whose family is facing reduced earnings? Whose job may be in jeopardy? What happens if they are late or miss a payment? It would seem that that’s the catch Chase Credit Card Services is looking for. You see, if a payment is late or missed entirely, it is a guarantee the interest rate gets bumped to the highest allowable rate Chase Credit Card Services can charge.
Either way, Chase Credit Card Services avoids the national crisis and legal extortion becomes the norm.
For additional complaints lodged against Chase Credit Card Services, please check out the website at: http://www.consumeraffairs.com/credit_cards/chase_credit_cards.html.
Their representative was pleasant but firm and told me that Chase Credit Card Services had sent out a letter last fall outlining changes where the minimum payment on Chase Cards would be increased from 2% to 5% of the outstanding balance. I noted that I did recall receiving such a letter. But had called and was told the letter related to different accounts then mine. It was further explained that the changes were necessary because of the national credit crisis occurring. Their representative never explained the $10 service fee. I asked for a copy of that letter and it was agreed they would faxed it. But it was unclear when it would be faxed. Later I received a call saying it would be mailed instead.
While it is unclear if these changes affect every Chase Credit card holder, my account was created when I took advantage of a low fixed rate of 4.99% guaranteed for the life of the loan. Chase’s representative quickly pointed out that while the rate was guaranteed, the amount of the minimum payment was not. However, the random $10 service fee was not noted. It increased my otherwise guaranteed 4.99% rate to 8.04%. But, as he said, the changes were necessary because of the national credit crisis.
The question raised here is, can a family withstand an increase greater than twice, two percent-to-five percent, of any single line item within their monthly budget? Another question is, whose crisis is Chase Credit Card Services really concerned? Is it a crisis that Chase Credit Card Services guaranteed a low fixed rate for the life of a loan? Or maybe they want their low fixed rate obligations to go away? Chase’s representative said the explanatory letter sent to me had indicated I could opt out of the minimum monthly payment increase. But, if I did, I would have to agree to an increased rate of something over seven percent. Hasn’t that already happened? For lack of a better term, isn’t this legalized extortion?
But, once again, what about that family whose budget is already stretched to the limit. Whose family is facing reduced earnings? Whose job may be in jeopardy? What happens if they are late or miss a payment? It would seem that that’s the catch Chase Credit Card Services is looking for. You see, if a payment is late or missed entirely, it is a guarantee the interest rate gets bumped to the highest allowable rate Chase Credit Card Services can charge.
Either way, Chase Credit Card Services avoids the national crisis and legal extortion becomes the norm.
For additional complaints lodged against Chase Credit Card Services, please check out the website at: http://www.consumeraffairs.com/credit_cards/chase_credit_cards.html.
Wednesday, January 28, 2009
Reprint from Local Area Lender
The following is from an email I received from Rick Knight, Knight Financial in Tacoma, Washington. Rich gave me permission to post this in my blog. I’m unaware of whether this is original work of Mr. Knight or reprinted from some other unknown source. Nevertheless, I feel the information contained here is both encouraging and timely. It illustrates and states very clearly that our real estate market is good and loans to finance real estate purchases are readily available.
"IT'S A CRUEL, CRUEL SUMMER...LEAVING ME HERE ON MY OWN." From 80's band Bananarama And that's exactly what potential home buyers and refinancers who stay on the sidelines might be singing.
Although home loan rates are very attractive now, the picture could be quite different as some inflationary factors will likely come to light heading into summer. Oil prices may be on the rise as we approach the summer driving season, some of the economic stimulus might begin to take hold, corporate cost-cutting measures could start to bear fruit, and, perhaps most importantly, the Fed will no longer be a buyer of Mortgage Bonds. These are all ingredients in a recipe that could very easily result in significantly higher interest rates this summer...so if you have been thinking about acting on a home loan, do not delay.
But with no hint of inflation in the current market, why would Bond traders be fearful now? Are they listening to strange voices and what did they say? The forward looking markets got an earful from Fed Governor Frederic Mishkin last week...and he's not the only one. Mishkin said that "inflation could come to the forefront, given all of the government programs", and "once the economy recovers, liquidity must be taken out of the markets"...meaning the Fed may need to rapidly hike rates down the road, to control the potential of inflation.
In other news, Stocks around the globe faced heavy selling pressure last week on renewed fears of the deepening worldwide economic slump...and this despite better than expected earnings from Google and IBM, as well as GE meeting earnings expectations. Even with the downward pressure on Stocks which can sometimes benefit Bonds, the mention of the "I" word left its mark, with home loan rates ending the week around .25% higher than where they began.
The Heat is On
Homes are on sale, sellers are motivated, and interest rates are at historic lows...but may not stay that way, which means it makes sense to get moving on that home purchase or refinance you've been contemplating. But if you or one of your clients is among the smart individuals who are going ahead and taking advantage of the low home loan rates to be had right now, there are a few things to be aware of.
With interest rates at record lows, all lenders in the US have recently seen a sharp increase in loan applications - right at the time that many lenders have cut headcount to save money in a challenging economy. This means that timeframes needed for underwriting, approvals and closing have become longer than normal. Some companies have chosen to actually raise rates just to slow down the volume to a manageable level.
Sound crazy? No crazier than when you go to buy that hot new vehicle...only to find that there is no price negotiation. In fact, you wind up lucky to just pay the sticker price, as the demand usually allows the Dealer to add a markup to the price. And you don't get the car right away; you have to wait on a list for your turn to come up.
Right now, home loans are like that hot new car - but with the timer ticking on interest rates locks, there are a few things you can do to protect yourself.
First, longer lock in time frames than might normally have been considered are a necessity, to ensure that the file has time to be processed, underwritten, approved and closed in time to protect the rate lock in this extremely volatile climate. And that longer, safer lock-in period may be a bit more costly - but it's money well spent. Overall, the mind set here should not be one of greed. Don't try to squeeze every last drop out of rates. If you are within a quarter percent of the lowest rates offered in the history of this country, you did very well. And rates always shoot up higher at a much faster pace than when then dip lower. So if the savings or opportunity make sense - grab it.
Next, responding quickly to requests for information or documentation is important - the faster the file is submitted and approved, the better off we are to keep that great interest rate protected.
Finally, be aware that it may be a smart idea to pay points to gain the best interest rate - and sometimes is even necessary in today's market. Giant mortgage buyers Fannie Mae and Freddie Mac have recently imposed more "risk-based pricing adjustments", meaning that even credit scores and loan to values which in the past would have been considered very low risk, may now be subject to mandated fees by Fannie and Freddie. And based on the way lenders have changed their rate sheets over time, there is now very little "premium pricing", which used to allow options for fees like these, points or other closing costs to be covered in return for a slightly higher interest rate.
Right now is still an excellent time to act, before the great low rates of today get away from us. But let's be smart - call me for information on how we can get started right away.
All the best,
Rick Knight
KNIGHT FINANCIAL
P: 253-224-3756
"IT'S A CRUEL, CRUEL SUMMER...LEAVING ME HERE ON MY OWN." From 80's band Bananarama And that's exactly what potential home buyers and refinancers who stay on the sidelines might be singing.
Although home loan rates are very attractive now, the picture could be quite different as some inflationary factors will likely come to light heading into summer. Oil prices may be on the rise as we approach the summer driving season, some of the economic stimulus might begin to take hold, corporate cost-cutting measures could start to bear fruit, and, perhaps most importantly, the Fed will no longer be a buyer of Mortgage Bonds. These are all ingredients in a recipe that could very easily result in significantly higher interest rates this summer...so if you have been thinking about acting on a home loan, do not delay.
But with no hint of inflation in the current market, why would Bond traders be fearful now? Are they listening to strange voices and what did they say? The forward looking markets got an earful from Fed Governor Frederic Mishkin last week...and he's not the only one. Mishkin said that "inflation could come to the forefront, given all of the government programs", and "once the economy recovers, liquidity must be taken out of the markets"...meaning the Fed may need to rapidly hike rates down the road, to control the potential of inflation.
In other news, Stocks around the globe faced heavy selling pressure last week on renewed fears of the deepening worldwide economic slump...and this despite better than expected earnings from Google and IBM, as well as GE meeting earnings expectations. Even with the downward pressure on Stocks which can sometimes benefit Bonds, the mention of the "I" word left its mark, with home loan rates ending the week around .25% higher than where they began.
The Heat is On
Homes are on sale, sellers are motivated, and interest rates are at historic lows...but may not stay that way, which means it makes sense to get moving on that home purchase or refinance you've been contemplating. But if you or one of your clients is among the smart individuals who are going ahead and taking advantage of the low home loan rates to be had right now, there are a few things to be aware of.
With interest rates at record lows, all lenders in the US have recently seen a sharp increase in loan applications - right at the time that many lenders have cut headcount to save money in a challenging economy. This means that timeframes needed for underwriting, approvals and closing have become longer than normal. Some companies have chosen to actually raise rates just to slow down the volume to a manageable level.
Sound crazy? No crazier than when you go to buy that hot new vehicle...only to find that there is no price negotiation. In fact, you wind up lucky to just pay the sticker price, as the demand usually allows the Dealer to add a markup to the price. And you don't get the car right away; you have to wait on a list for your turn to come up.
Right now, home loans are like that hot new car - but with the timer ticking on interest rates locks, there are a few things you can do to protect yourself.
First, longer lock in time frames than might normally have been considered are a necessity, to ensure that the file has time to be processed, underwritten, approved and closed in time to protect the rate lock in this extremely volatile climate. And that longer, safer lock-in period may be a bit more costly - but it's money well spent. Overall, the mind set here should not be one of greed. Don't try to squeeze every last drop out of rates. If you are within a quarter percent of the lowest rates offered in the history of this country, you did very well. And rates always shoot up higher at a much faster pace than when then dip lower. So if the savings or opportunity make sense - grab it.
Next, responding quickly to requests for information or documentation is important - the faster the file is submitted and approved, the better off we are to keep that great interest rate protected.
Finally, be aware that it may be a smart idea to pay points to gain the best interest rate - and sometimes is even necessary in today's market. Giant mortgage buyers Fannie Mae and Freddie Mac have recently imposed more "risk-based pricing adjustments", meaning that even credit scores and loan to values which in the past would have been considered very low risk, may now be subject to mandated fees by Fannie and Freddie. And based on the way lenders have changed their rate sheets over time, there is now very little "premium pricing", which used to allow options for fees like these, points or other closing costs to be covered in return for a slightly higher interest rate.
Right now is still an excellent time to act, before the great low rates of today get away from us. But let's be smart - call me for information on how we can get started right away.
All the best,
Rick Knight
KNIGHT FINANCIAL
P: 253-224-3756
Cost of updating and remodeling
In response to a clients question about how the cost of repairs/updates to a home built in 1979, I provided the following insights, questions and recommendations.
As I read your email, a couple of thoughts come to mind. First thing, your home will sell. How long it will take and what the sale price will be, I wish I had a crystal ball. But, unfortunately, I don’t. When we started, I think I was reluctant to get too many things started for somewhat different reasons then what you’ve alluded to in your email. My concern was, once you get started, were do you end. And what do you have when you do finish.
Without any work being done to the home, despite the hole in the dining room carpet, the house is totally livable. The cleaning was necessary and painting would probably help. But, beyond that, it seems that you could get into too many personal preferences and faced with the ongoing questions of “what would yield the great benefit?”
Whether I agree or not, regardless of the age of a home, today’s buyer hopes to find a home that looks new and modern inside. Anything that differs is considered dated; out-of-date if you will. Buyers want ceramic tile floors, vinyl insulated and tinted windows, hardwood floors, new carpet and granite slab countertops surrounded by new & modern kitchen cabinets with stainless steel appliances. The problem is, if you put new floors in the kitchen and a prospective buyer wanted to redesign the kitchen, the value of that new floor is essentially lost. What if they preferred ceramic tile over vinyl? It’s a paradox! On the one hand new floors make it look nicer, but if it really isn’t what the buyers would choose, the value of the new floors could be minimal. While all of this is true, the other fear I have is, if you make the floors look good, what about the counter tops and the flaking wallpaper. But if you think about the countertops, why don’t you just do the cabinets to begin with.
Yes, I have spent a lot of time considering everything that could be done; $20,000 –to- $30,000 or more could easily be spent. Sometimes I just wish I had a crystal ball where I could predict with certainty which things would prove to be most beneficial and would help sell a home faster. Some sellers are evening spending thousands of dollars to stage their homes hoping to make them look more appealing and livable.
Now, four years ago, if I were faced with the same questions, there would be no hesitation. Yes, do everything and you’ll get all of your money plus a handsome profit back in return. But, as the market has changed, I’m uncertain if the same could be said today. Actually, I don’t think it could.
But, all of these questions and possible actions or inactions do have an impact on the price a buyer is willing to pay for a home. I recall we talked a bit about some of that when we originally put her home on the market. And, with everything going on in the national economy and the new listings and price reductions which have occurred in the past 20 days, it is evident that our market and the homes we find ourselves competing with for a limited number of buyers has changed dramatically. I’m not saying the changes are negative; now we just have more competition in the $300,000 price range then we had before. As an illustration, I called a agent who had just listed a newer similar rambler for $300,000 and asked her about price. Basically, like I had told you when we listed the home, she said, “I wanted to be under anything else that was remotely comparable in the area.” And, with buyers preferring homes they perceive as the best value, it becomes my responsibility to try and interpret all of this and relate it to you in a meaningful way.
Honestly, this has become the most difficult part of my job. Sellers’ don’t want to hear about market changes or flexible marketing plans, they want their homes sold. This is probably why I’m taking so long to answer your question and I apologize. There are no simple answers.
At this point I would say, aside from possibly getting the interior painted, my best advice would to be to able to be flexible with the price and offer to credit prospective buyers with replacement carpet and vinyl costs.
Again I apologize for taking so long to get to the point.
As you have questions, please don’t hesitate to contact me.
Sincerely,
Ken Thiemann, Real Property Specialist & Consultant
Windermere RE / Paragon Co.
(253) 370-5626
As I read your email, a couple of thoughts come to mind. First thing, your home will sell. How long it will take and what the sale price will be, I wish I had a crystal ball. But, unfortunately, I don’t. When we started, I think I was reluctant to get too many things started for somewhat different reasons then what you’ve alluded to in your email. My concern was, once you get started, were do you end. And what do you have when you do finish.
Without any work being done to the home, despite the hole in the dining room carpet, the house is totally livable. The cleaning was necessary and painting would probably help. But, beyond that, it seems that you could get into too many personal preferences and faced with the ongoing questions of “what would yield the great benefit?”
Whether I agree or not, regardless of the age of a home, today’s buyer hopes to find a home that looks new and modern inside. Anything that differs is considered dated; out-of-date if you will. Buyers want ceramic tile floors, vinyl insulated and tinted windows, hardwood floors, new carpet and granite slab countertops surrounded by new & modern kitchen cabinets with stainless steel appliances. The problem is, if you put new floors in the kitchen and a prospective buyer wanted to redesign the kitchen, the value of that new floor is essentially lost. What if they preferred ceramic tile over vinyl? It’s a paradox! On the one hand new floors make it look nicer, but if it really isn’t what the buyers would choose, the value of the new floors could be minimal. While all of this is true, the other fear I have is, if you make the floors look good, what about the counter tops and the flaking wallpaper. But if you think about the countertops, why don’t you just do the cabinets to begin with.
Yes, I have spent a lot of time considering everything that could be done; $20,000 –to- $30,000 or more could easily be spent. Sometimes I just wish I had a crystal ball where I could predict with certainty which things would prove to be most beneficial and would help sell a home faster. Some sellers are evening spending thousands of dollars to stage their homes hoping to make them look more appealing and livable.
Now, four years ago, if I were faced with the same questions, there would be no hesitation. Yes, do everything and you’ll get all of your money plus a handsome profit back in return. But, as the market has changed, I’m uncertain if the same could be said today. Actually, I don’t think it could.
But, all of these questions and possible actions or inactions do have an impact on the price a buyer is willing to pay for a home. I recall we talked a bit about some of that when we originally put her home on the market. And, with everything going on in the national economy and the new listings and price reductions which have occurred in the past 20 days, it is evident that our market and the homes we find ourselves competing with for a limited number of buyers has changed dramatically. I’m not saying the changes are negative; now we just have more competition in the $300,000 price range then we had before. As an illustration, I called a agent who had just listed a newer similar rambler for $300,000 and asked her about price. Basically, like I had told you when we listed the home, she said, “I wanted to be under anything else that was remotely comparable in the area.” And, with buyers preferring homes they perceive as the best value, it becomes my responsibility to try and interpret all of this and relate it to you in a meaningful way.
Honestly, this has become the most difficult part of my job. Sellers’ don’t want to hear about market changes or flexible marketing plans, they want their homes sold. This is probably why I’m taking so long to answer your question and I apologize. There are no simple answers.
At this point I would say, aside from possibly getting the interior painted, my best advice would to be to able to be flexible with the price and offer to credit prospective buyers with replacement carpet and vinyl costs.
Again I apologize for taking so long to get to the point.
As you have questions, please don’t hesitate to contact me.
Sincerely,
Ken Thiemann, Real Property Specialist & Consultant
Windermere RE / Paragon Co.
(253) 370-5626
Thursday, January 15, 2009
Oh My, It's Thursday Morning Already
Yes, it’s true. It’s already Thursday morning and since my last entry, I know I’ve done a lot, but much of it is a blur. Well, let’s think. Along with an office meeting Tuesday morning, we toured new listings. One looked interesting and I called and left a message with a client. Although I know I was busy, the rest of the day was busy. I know I talked with lots of people. Some strangers and others friends and neighbors
On Wednesday, I was again up and running early. My primary goal was to complete a valuation on a client’s home. I was doing it for estate purposes. Although it didn’t get totally completed, I’m well ahead of the curve. The rest of the day, I know I was busy. I showed two clients two different properties and I got my outlook set on my home computer, my office computer as well as my handheld phone. Plus, when the day was over, I was dead tired. Oh yes, we had a Papa Murphy’s pizza for dinner.
Sorry, I got interrupted. A banking executive called and we had a lengthy conversation about distressed sales, bank losses, home builders and value decay. He had an interesting perspective on how to potential deal with the problem. Yes, it sounded like a glimmer of hope.
Well, with that I need to head off and get my day rolling. I hope you all have a great and productive day. I know I will.
On Wednesday, I was again up and running early. My primary goal was to complete a valuation on a client’s home. I was doing it for estate purposes. Although it didn’t get totally completed, I’m well ahead of the curve. The rest of the day, I know I was busy. I showed two clients two different properties and I got my outlook set on my home computer, my office computer as well as my handheld phone. Plus, when the day was over, I was dead tired. Oh yes, we had a Papa Murphy’s pizza for dinner.
Sorry, I got interrupted. A banking executive called and we had a lengthy conversation about distressed sales, bank losses, home builders and value decay. He had an interesting perspective on how to potential deal with the problem. Yes, it sounded like a glimmer of hope.
Well, with that I need to head off and get my day rolling. I hope you all have a great and productive day. I know I will.
Tuesday, January 13, 2009
Happy Wednesday Early Morning Greetings
Good Morning!
Although it's early, just after 4 am, we're up and going. I've already done my morning review of new listings and closing. Not much that really caught my eye though.
I'm going down for breakfast now.
Hope you have a great day.
Although it's early, just after 4 am, we're up and going. I've already done my morning review of new listings and closing. Not much that really caught my eye though.
I'm going down for breakfast now.
Hope you have a great day.
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