Their new policy, which took effect January 15, states:
• With a credit score between 500-579 a borrower would be considered if the borrower was able to make a minimum down payment of 10% (gifted funds and other down payment assistance is not allowed)
• With a credit score between 580-599 a borrower would be considered if the borrower was able to make a minimum down payment of 5% (gifted funds and other down payment assistance is not allowed)
• With a credit score 600 and above the minimum down payment would be 3.5%
So what are you waiting for?! Call your Wells Fargo lender now! (I have no affiliation with Wells Fargo; I am simply a supporter of policies that allow more options for the consumer).

4.62%
Average mortgage rate in 4th quarter 2010. Down from 6.21% in 4th quarter 2005.

$250,400
Median existing home sales price in Washington in 2010. Down 1.6% from 2009.

149.4
All-buyer Housing Affordability Index in 4th quarter 2010. Record high affordability. Median income family has 49.4% more income than minimum required to purchase median price home statewide.

46.8%
Decline in existing home sales (units) since 2005 peak.

20.4%
Decline in median home price since 2007 peak.

51.8%
First-time home buyers in Washington who cite tax advantages as a major reason for buying a home in 2009 (may reflect tax credit).

4.8%
Apartment vacancy rate to Washington in Fall 2010. Down 2.1% from year earlier.

87%
Washington home buyers in 2009 who purchased with assistance of real estate licensee.

64.7%
Washington homeownership rate in late 2010. Down from 69.2% peak in late 2005.

7.6
Months supply of homes on the market at year-end 2010. Generally considered a balanced inventory, but foreclosure and pre-foreclosure properties suggest oversupply.

35,300
Washington mortgages at some stage of foreclosure in late 2010. Up from 24,900 in late 2009.

1) Become familiar with the market. You probably have an idea of the general area that you would like to buy a home; there are a variety of ways for you to get familiar. One option is to simply pick up the phone and call a Realtor. That person should be happy to talk with you about what is available, what the current trends are in that area, what the prices may be, etc. 2) There are an abundance of websites that allow you to sign up for a FREE update program (we call ours a listing manager account). You can enter your specific criteria including price range, size of the land, number of bedrooms, etc. The more parameters you enter the more restricted the results will be, so if you are just starting out it may be best to keep it simply to price range, or simply to the size of the land that you desire. 3) Go online often and search local websites and watch the new listings and the listings that are selling. This will give you a good idea of the market values.

2) Understand the amount that is needed for the down payment. There is a huge range of amount due for down payment on a home/land. It is a percentage of the purchase price but varies based on the lender you use and the program that best fits your needs. At this point the down payment can be as low as 3% and as high as 20% (more if it is vacant land). The best resource is going to be a local lender. They will undoubtedly start the conversation off with “it depends” but you can usually get them to give a general idea of down payment amounts. If you are at a loss for a lender to contact, your Realtor can suggest a few alternatives.

3) Know how much you can afford. There is nothing worse than falling in love with a home only to find out that you cannot afford the payments. Again, a lender can help you with this magic number. Another tool that I find helpful is one of the online amortization calculators that you can play with the numbers and find out how rates and down payment amount affect the monthly payment. The one I have bookmarked is: http://www.bretwhissel.net/cgi-bin/amortize but there are plenty available.

4) Be sure to include other monthly expenses when you are figuring what the costs will be monthly. Include insurance, taxes, utilities, maintenance items, and any homeowner’s dues or road maintenance amounts.

5) Get your credit score all cleaned up. You are allowed one free credit report for each of the 3 major credit reporting companies annually. Go to https://www.annualcreditreport.com/cra/index.jsp to get started.

GOOD LUCK!

What this includes is:
• 2-hour Assessment & Consultation with a BPI Professional
• New CFL Light Bulbs Installed
• Low Flow Shower Heads Installed
• Written Reports Detailing Recommendations

Some items recently discovered during Energy Audits include:
• Recalled Electrical Panels
• Recalled Heaters
• Insufficient Ventilation / Moisture (Mold) Issues with Attics & Crawlspaces
• Standing Water & Wood Destroying Organism Activity in Crawlspaces & Attics
• Myriad Simple Ways to Save Homeowners Substantial $ on their Utility Bills
• Poorly Installed Insulation & Air Sealing Measures
• Insufficient Clearances between Flues & Structure (Fire Hazards)
• Rebates Available through OPALCO
• Structural Deficiencies (Safety Issues for the Home)
• Plumbing Leaks
• Excessive Moisture at Ceiling (roof leaks) and Subfloor (toilet seals)

For more information go to: http://www.opalco.com/energy-services/energy-assessments/
Or Contact Elisa Howard at OPALCO: 360-376-3586

Truth be told short selling your home may have fewer, or less severe, repercussions on your credit and other records than a foreclosure.

Foreclosure Consequences
• Affects future mortgage rates for 7 years.
• Lower credit score from 250 to over 300 points; on your credit for over 3 years.
• Stays on your credit history for 10 or more years.
• Difficult to get security (such as military or government) clearance; current clearance revoked and position terminated.
• May face immediate reassignment or termination, if in a sensitive job.
• Can pose a challenge to gaining new employment.
• Lender can pursue a deficiency judgment if legal in your state.
• Higher deficiency judgment than short sale in most cases.
Short Sale Consequences
• Will not, in itself, affect future mortgage rates; late payments will affect future rates
• Lowers credit score about 50 points; on your credit for 12 to 18 months.
• Not reported on a credit history; loan typically reported as ’paid in full, settled.’
• Poses no challenge to most security clearances.
• No challenge to keep currently employment or gain future employment.
• Lender may not pursue deficiency judgment, especially if illegal in your state.
• Lower deficiency judgment than foreclosure in most cases.
The moral of the story is, do not assume that foreclosure is your only option. Talk to your lender or the representative at the bank in which your mortgage is held. They should be inclined to work with you; after all, it’s in everyone’s best interest.

Here’s how:

Text SIR to 87778
Type in this url: m.sir.com/sir

Off you go!

1) Price Adjustments are being made and prices are generally “soft”. On average, we are back to values similar to 2002 in and around the islands. Couple that with phenomenal interest rates and it simply makes sense.

2) Interest rates are still low, for now… If you are “waiting for the rates to go lower” you may miss the boat. We are seeing indications that rates may slowing begin to increase. It makes sense to step forward now and take advantage of these 30 year low rates.

3) Tax deductions in your mortgage payments. Owning a home is a great tax shelter and tax rates favor you if you are a homeowner. As long as your mortgage balance is lower than the price of your home, mortgage interest is fully deductible on your tax return. Deducting the interest on your income taxes helps make the real cost of owning more attractive. Talk to your financial advisor for specifics.

4) Sales prices are lower than replacement values. You have a lot of choices in homes and raw land. But the cost of building can look down right scary if you compare it to buying a pre-existing home. Rates are lower, down payments are lower, and you can move right in upon closing!

5) Pride in ownership. There’s no place like home! Think of all the things you get to do: decorate your house, landscape your yard, brag about how cozy and wonderful your home is, take your Holiday pictures in your home and send them to everyone! You have worked hard to have a home and the sense of accomplishment is invigorating. Enjoy!

For more information about the real estate market in this area go to www.SanJuanConnection.com or email me directly at Michele@sanjuanconnection.com (text to 360.317.5683).

First, know that most Buyers nowadays go to the internet to search out their properties, not the local classifieds. Start by typing in the name of your town, the state, and the words real estate or houses for sale. You can also go to a real estate site like Zillow.com or Trulia.com and check out the listings in your area. You will want to use a Realtor who shows up on these web pages with listings. Should you pick the Realtor with the most listings? That depends upon how much individual attention you want. Select a few names, at least three, then add any names that may have been recommendations from friends.

The next step is to meet with each of these three Realtors. Tell them each you are meeting with three Realtors; let’s be fair. Have you ever had an acquaintance that tells you something that you do not comprehend? People have different ways of communicating and the only way to find out if you “click” with a Realtor’s communication style is to sit down and talk to them face to face. Ask some questions and see if their answers seem clear to you rather than jibberish. See if they are actively listening to what you say. Look at their desk and their office and see if it presents the image you like.

When you visit a Realtor, the expectation will be that you are asking for a comparative market analysis (CMA) to set a price for your property. This is a service offered for free by most Realtors who want to get a listing. It is appropriate at the face to face meeting to share information about your property with the three Realtors you choose, but do not tell them the price you want for your property yet. You do not know which one you will pick and regardless of the choice, you will want independent input from all three. Ask them to email you their CMA’s and emphasize that you want to set a realistic price in today’s market. You will probably be asked to show them the house or lot first.

You will likely have a favorite Realtor in mind when you complete this process, even before you see the CMA’s. You have in the process had the opportunity to deal with the office receptionist, the phone messaging system, and the length of time and work involved on your behalf from each of the agents. You have been able to see if they are on time for an appointment. You know how long it takes them to return a phone call. Even if your favorite choice had a price you didn’t like, you can now discuss in detail why you think the price should be different with a person who will listen and respond to your needs. You will be signing a listing agreement with your favorite but the day that you do that, you should call the other two Realtors and thank them and tell them your price. They still have an opportunity to sell your property, and it is a nice thank-you for them to be the first to know it is listed so they can contact their buyers.

Today most Buyers get the majority of the information they need about a listing or pricing by a click on the internet to one of many sources for free real property information. When a Realtor gets a phone call from a Buyer, for example, in many cases that Buyer already knows what he wants to see and has learned a lot of facts about it online. Online is where most people look for property, but where do they look for Realtors, and how do they pick one? Here are a few places that in my opinion are not the best place to look:
1. The listing agent of the property you want to see. Why might this not be a good idea? Think about it: the listing agent gets paid a commission from the Sellers and has been hired to have the Seller’s best interests at heart. As a Buyer, you may want someone to represent your best interests, especially if you are a first-time Buyer.
2. A phone call to a real estate office. It’s Russian Roulette. How do you know what you will get? The new agent that has only lived in town six months? Someone who talks too fast or drives too slowly? It is a potluck pick for a pretty important position.
3. The guy down at the local tavern that hands out advice on everything under the sun. OK, yes he may have had good or bad experiences with certain Realtors in town, but since you and he are very un-alike, it is only borderline useful.

My suggestion on how to choose a Realtor? Ask yourself what is important to you and call a few Realtors who have good websites on-line. Ask to meet at least three of them, separately, in their offices for a short interview. Sit face to face with them to see how you communicate with each other. There is a Realtor for everyone, and this is an avenue to find just the right one for you.

If I was interviewing a Realtor to be my Buyer’s Agent I would ask how often they would get in touch with me about new listings. I would want to know if they basically communicated by phone or email. I would look at the things in their office and ask about them – family pictures, travel mementos, etc. I would ask them to tell me about their most memorable recent sale. I would ask them what they thought was the most important thing for me to know about the local market at this time. The answers to these questions would give me a good idea if I had found a person who communicated clearly to me. I would know about their values. I would know whether or not they were a whiner or someone with a good sense of humor. I would get a sense of the process they go through for a sale and see if they were detail-oriented.

I would not get into details of talking about certain listings at the first interview. The time spent on specifics should be saved for the person you select to represent you after the interview process. It is unfair to the Realtors to go looking at property with more than one of them. After the meeting, if you get a follow-up phone call (or especially if you don’t) that will be another big hint about your compatibility with the Realtor, as well as their organizational skills.

I know, interviewing a Realtor sounds like a crazy thing. But think of all the time you put into finding a house. You need a person who can “read” your needs clearly. You want someone who is “on the same page.” In today’s market, any Realtor would be happy to give you a few minutes to discuss things. If they won’t do that, you certainly wouldn’t want to use them anyway.

Next: Advice for the Seller

A used thing takes on a sort of persona. To the second hand buyer, it has a sense of mystery. It often is something from far away or long ago. In many cases it is not something that you could buy at the mall, even if you wanted to get it new. But this column is not about buying, it is about releasing. When you decide to give away, sell at a garage sale or charity event, or go online or classified with your treasures, you will be pleasantly surprised at how happy it makes other people to get your things. They may hold up your tourist souvenir of a Native American doll which was made in China and purchased 30 years ago at a Canadian tourist trap and reverently say, “Where did you find this?” They always want to know. It’s called Provenance, or at least it is called that on PBS’s “Antique Road show.” Stay tuned to that series and you might discover some real treasures you own that you should even insure.

I scaled down about ten years ago. We owned a four bedroom farmhouse on twenty acres with plenty of storage spaces and we wanted to move into a much smaller home. In choosing things for the garage sale I was surprised to see how many items of the same use or purpose I had somehow ended up with. You know how things accumulate if you are a mother. Little gifts for many occasions that you don’t really need, an attempt by someone to start you on collecting things you never admired in the first place, and just that weird concept that when people see you they think you probably would like a certain kind of present. For me, it was ceramic candy dishes and purses.

What a pleasure it was to pick my favorites from many similar things and let the rest of them go to others. How many candy dishes does a Diabetic need, after all? Having found and sorted through all my things, I sort of felt like I had passed away and come back again. But looking at it from that standpoint, I am happy that it was me that did the sorting, not my bereaved children. The good thing was that I didn’t have to mourn myself! It was fun to open up the barn to young islanders who were needing feathers for their nests. Their enthusiasm for my leftovers was making us all happy.

The real prize was when I moved into my scaled down house. I could put my mind and even my finger on where everything was! I got to thinking about how much of our lives are spent in searching for things. Sometimes, things we never find until we decide to scale down. The final reward, then: looking less and therefore living lives full of more important things. And, feeling knowledgeable and in good mental state when someone says to you, “Honey, where is the candy dish?”