The Bellingham Real Estate Blog » Real Estate Questions

How Many Homes For Sale In Bellingham Currently Have Offers On Them?

Fawn — Tue, 10 Jan 2012 21:04:56 +0000

Every week we track the number of homes on the market that have offers on them and those that do not and create a ratio we call Pending Ratios. This weeks numbers were great with all areas either remaining stable or up in pendings.

As of Saturday, January 7th, the pending ratio in Bellingham was 21% . Pending is the time frame between when an offer has been mutual accepted between the buyer’s and the seller’s of the home and when the title actually transfers hands. This give the buyer’s time to get the financing, do inspection, review the title reports and more.

Birch Bay had a pending ratio of 18%

The Lynden area in East Whatcom County has a pending ratio of 17%

The Sudden Valley pending ratio was 27%

The Ferndale pending ratio was 24%

If you would like to search for Real Estate in Bellingham and Whatcom County that is currently for sale visit The Johnson Team Real Estate’s Property Search Page to search.

To view a complete history of Whatcom County Pending Ratios or for other real estate statistics don’t hesitate to contact The Johnson Team at (360) 303-2734 or by email at Info@JohnsonTeamRealEstate.com

For more information on Bellingham Real Estate or to search for homes in the Bellingham and Whatcom County area visit www.JohnsonTeamRealEstate.com, your one stop Bellingham real estate and community information resource!

When Selling a Home or Real Estate Are You Required to Disclose Defects?

Fawn — Mon, 09 Jan 2012 15:36:23 +0000

Question:

I understand sellers of a single family home in Washington State are required to disclose known defects in the house. What requires this?

Answer:

It is a matter of Washington State Law, and actually covers more than just single family residences. Different disclosures are required for different types of property, including residential, vacant land and commercial properties. There is a second disclosure required for condominium units. If the complex is new or newly converted to condos, a Public Offering Statement is required. If it is an existing complex, a Resale Certificate is required.

All these disclosures have specified time periods within which they must be given to a buyer. The buyer then has the right to withdraw from the transaction with a specified number of days after receipt. If the buyer does not receive the disclosure, they may withdraw from the transaction, without additional cause and with return of earnest money, at any time up to closing. However, if they close without receiving the disclosure, they effectively waive their right to receive it.

One more detail to keep in mind: if the disclosure is not complete when delivered, or if something changes after delivery which is covered by the disclosure, it must be delivered again, and the buyer’s right to review starts over again. If you are the seller, it pays to do it right the first time.

Real Estate Questions Answered, What Furnishings Come With a Home?

Fawn — Tue, 03 Jan 2012 14:22:30 +0000

Question:

I am buying an estate house that is fully furnished. What happens to the furniture?

Answer:

Most purchase and sale contracts cover all real property (anything attached to the land) and certain specifics that are part of structures. These might include anything part of a basic system of the house: light & plumbing fixtures, carpet, landscaping, hardware, as well as personal property such as window coverings & drapes, etc. If an item is not specified in the contract, it does not stay.

Also typical in a purchase and sale contract for real estate is a stipulation that the owner will remove all personal property (except as otherwise stated in the contract), prior to the possession date.

A good rule of thumb is, “Never assume anything.” If you want something in that house, you should specify it in the contract. If the seller wants something to remain in the house, they should specify it in the contract. If you are already under contract, have the conversation now so you know everyone is on the same page. It can spoil the pleasure in your new home to be fighting over drapes that are gone or junk that was left as you are trying to move in.

Fixed Rate or Adjustable Rate Mortgage? Your Real Estate Questions Answered….

Fawn — Thu, 29 Dec 2011 21:13:07 +0000

Question:

We are shopping for our first home and it looks like we could cut our mortgage payment quite a bit if we took out an adjustable rate mortgage rather than a 30 year fixed rate loan. What would you do?

Answer:

What I would do may not be the best thing for you, because more than the rate is an issue in this decision. We have used ARM’s extensively over the years and they were very good for us, but there were conditions in which we used fixed rate loans. First, note that most ARMs now are actually a hybrid of the true ARM and a fixed rate loan. The interest rate is fixed for the first years; 3/1 means the rate is fixed for the first 3 years. At the end of that time, the rate may automatically adjust for the remainder of the loan, or you may need to refinance it. Make sure you know what is going to happen at the end of that initial period.

When we are choosing a loan, we use the following questions to make the decision.

What is the difference in the payment? This morning the lowest rates I see in our area are 3.67% for a 30 year fixed and 2.62% for a 5/1 or 3/1 ARM. Note: these are rates with 0 points – make sure you always compare rates with the same points. At these rates, your principal and interest payment for a $250,000 loan would be $134 a month lower at the adjustable rate.

What are all available adjustable rates? As of this morning, the 3/1 and 5/1 rates are the same…lock in the lowest rate as long as you can.

How long are you going to live in this house? Always add a year or two…this may be determined not only by your wants, but also by the market, so give yourself some leeway. Also, know what happens if you decide to move on and rent the house…you may not be able to adjust the loan at the end of the initial period.

What happens at the end of the initial period? Will you have to qualify for a new loan? If the rate simply adjusts, how is the new rate determined? Will there be additional loan fees? What if the value of the home has fallen? Costs to reset the loan could cut into your payment savings.

What does the trend line for interest rates look like? An upward trend line can mean you will be wishing for that earlier fixed rate when the adjustment time rolls around. If rates are falling, you won’t feel as pressured to refinance (and pay the fees), if your existing rate is already low.

Is there a prepayment penalty? If you need to change the loan (rates fall further, you want to lock in a long term fixed rate, you are changing jobs and don’t know if you will qualify at the end of the term, you want to keep the home as a rental and know you won’t be able to roll your existing loan when it adjusts) will you have to pay a lump sum for the right to pay off the loan?

As with all real estate questions, there is seldom a simple answer, but hopefully this will give you a guideline for making a decision. Good luck!

Bellingham Real Estate Market Report- Mixed News!

Fawn — Tue, 06 Dec 2011 18:50:46 +0000

Sales were up, sales were down, some prices were up, but most ing were down…and whether they were up or down changes according to how one compares them. If you are confused already, welcome to the club…but let’s try to make some sense of it.

For the most part, the number of homes sold was less than in October, which is normal. The exceptions were Ferndale and Nooksack Valley, where almost twice as many homes sold in November, and Birch Bay/Blaine, where there was a slight uptick. If we compare sales numbers to last November, however, more homes sold this year in every area of the county except Lynden and Mt. Baker. Overall, nearly 11% more homes sold in Whatcom County this year than in November of 2010.

That’s good news. It means that people want to buy and are able to get loans.

Now let’s look at prices, which seem to be an entirely different story. Hang in here and I’ll explain the “seem to be” after we look at the numbers.

From October to November, average and median prices dropped by double digits in every area except Lynden (and the median in Sudden Valley). As a whole, average prices in Whatcom County fell by 16.7%, while the median fell by 5.7%. November 2011 to November 2010 price changes were not quite as dramatic, but almost. Bellingham, Ferndale, Nooksack Valley and Mt Baker saw double digit declines in both average and median prices. Only the Birch Bay/Blaine area saw increases in both average and median, although both Lynden & Mt Baker saw medians go up a bit. For the county as a whole, the average was down 12% and the median down a bit over 11%.

So has the housing apocalypse hit us? I don’t think so. Let me show you why. The following table shows how many Bellingham homes sold in each of 4 price ranges in November 2010 and then in November 2011. (If you wonder why I just use Bellingham numbers for this, give me a call or email and I’ll explain my reasoning.) When I look at this table, there are a couple of numbers that jump out. Look at the total units sold in 2010 in the under $300,000 range…then look at the same category in 2011. Then follow each of those lines over to the “% of Market” column. Pretty dramatic, right?

So what does this mean? Have a lot of homes dropped so much in price that they are now in the under $300,000 range rather than the $300,000 to $500,000 range? Certainly some have crossed that line, but we have actually seen fewer dollars of change in the lower price range. Remember, 1% of a large number is a lot more than 1% of a smaller number. I don’t think that explains the substantial increase in under $300,000 sales, and I will show you why.

November 2010 Price Ranges in $1000’s	Total 2010 November $ Sales	Total Units Sold	Average Sales Price	% of Market	Changes in November Year to Year Distribution of Residential Sales in Bellingham
<300	$6,601,220	29	$227,628	56.9%
300 to <500	$6,046,108	16	$377,882	31.4%
>500	$2,618,630	5	$523,726	9.8%
>750	$1,150,000	1	$1,150,000	2.0%

November 2011 Price Ranges in $1000’s	Total 2011 November $ Sales	Total Units Sold	Average Sales Price	% of Market	Unit Change	Average Price Change
<300	$8,941,940	44	$203,226	74.6%	51.7%	-10.7%
300 to <500	$3,423,400	10	$342,340	16.9%	-37.5%	-9.4%
>500	$2,350,000	4	$587,500	6.8%	-20.0%	12.2%
>750	$850,000	1	$850,000	1.7%	0.0%	-26.1%

For the complete article and analysis of the Bellingham and Whatcom County Real Estate Markets go to the December Real Estate Wrap up on our website.

Bellingham Home Loan and Mortgage Rate Update

Fawn — Wed, 30 Nov 2011 18:01:43 +0000

Bellingham WA Home Loan Rates

It’s that time again, time to update you on the latest in home loan and mortagage rates. If you are in the market for a home loan below are the mortgage rates as of today November 30th, 2011, courtesy of Sidney Stonecypher at People’s Bank.

	Down Payment	Interest Rate	APR	Credit Score	Points
Conventional 30 yr fixed	20%	3.875	3.973	740	1
Conventional 15 yr fixed	20%	3.125	3.357	740	1
Jumbo 30 yr fixed	20%	4.625	4.738	740	1
FHA 30 yr fixed	3.5%	3.750	4.181	660*	1
VA 30 yr fixed	0%	3.750	4.104	640	1
*Score requirement will vary by lender

For more details, or a custom quote, contact Sidney Stonecypher at People’s Bank, 360-676-4597 or sidney.stonecypher@peoplesbank-wa.com. Remember that many variables come into play in determining the rate a lender will give a borrower. If you are getting a rate quote from a lender who does not have all your information, that rate may not be real. What with the low rates, it is still a great time to buy a house!

Luxury Real Estate in Bellingham, Washington and Beyond!

Fawn — Tue, 08 Nov 2011 20:50:01 +0000

With a vast array of natural beauty, culture and history it is no wonder that we are noticing that Bellingham, Skagit County and the San Juan Islands seem to be attracting more luxury home buyers. Bellingham and the Pacific Northwest are graced with many luxurious homes and estates. The incredible natural landscape and history help the Northwest boast some of the finest luxury real estate in the nation.

Wherever your real estate price point rests luxury can be at your finger tips. Whether you are looking for incredible snow capped mountain views of Mt. Baker, rolling acreage to enjoy your equestrian members of the family or a private lake dock for you boat, or saltwater front real estate, you can find it all here.

Each week we showcase a home or homes which have just sold and help you get an idea of what the real estate markets in Bellingham and the neighboring areas have to offer. You can also search for active luxury real estate on our website’s Luxury Real Estate Page.

2020 Falcon Ct sold last week for $735,000 and is located in Bellingham, Washington in the prestigious Parkhurst Neighborhood over looking Bellingham, Fairhaven, Bellingham Bay and The San Juan Islands beyond.

The custom buit 3,400 sq ft home is beyond breathtaking with no luxury detail overlooked with Brazilian cherry wood floors, a spacious master suite and high quality appliances. Quality landscaping around the home only adds to the incredible setting with the incredible sunrise and sunset views over the ocean in the distance.

4927 Surfcrest Drive sold last week for $800,000 and is located in Oak Harbor, Washington approximately 45 minute North of Seattle and 45 minutes South of Bellingham.

Situated on just shy of one acre in the desirable Surfcrest Beach Community this home is sure not to disappoint. Often referred to as one of the best beaches on Whidbey Island the home is graced with 100′ of no bank sandy waterfront and incredible Westerly views of sunsets, the Olympic Mountains and The San Juan Islands. The exterior cedar shake siding adds to the Pacific Northwest detailing and design in this 3,196 sq ft custom built home with 3 bedrooms and 3 bathrooms.

To search Luxury Real Estatein Bellingham and neighboring areas be sure and check out The Johnson Team’s Real Estate’s Luxury Real Estate Page.

Bellingham Real Estate Market Monthly Report

Fawn — Mon, 07 Nov 2011 14:42:42 +0000

They’re Still Bouncing!

Last month I compared our market to ping pong balls, sometimes up, sometimes down, sometimes both…just depends on the area. In October

Bellingham unit sales up from October 2010 (to 75 homes from 65) & almost equal to last month (to 75 homes from 77).
Ferndale unit sales down from October 2010 (to 14 homes from 27) & down further from last month (to14 homes from 37).
Birch Bay/Blaine unit sales down a bit from October 2010 (to 13 homes from 15) & down a lot from last month (to13 homes from 28).
Ferndale unit sales dropped substantially from October 2010 (to 14 homes from 27) & from last month as well (to 14 homes from 37).
Lynden managed to about break even – up 3 homes from 2010 and down 3 from September.

But how about the prices, you say. They were bouncing too, with average sale prices in Bellingham and Birch Bay/Lynden down in the double digits from September while Ferndale, Sudden Valley and Nooksack Valley saw double digit increases. If we compare to October 2010, Ferndale and Mt Baker home sale averages were up by double digits, while Birch Bay/Blaine and Lynden were down by those amounts and Bellingham and Sudden Valley were close to holding their own. Want more specifics?

Bellingham prices October 2011 to 2010: average -3.7%; median -12.1%
Whatcom County prices October 2011 to 2010: average -15.8%; median -18.8%
Bellingham prices October to September 2011: average -12%; median -2.4%
Whatcom County prices October to September 2011: average +.4%; median -1.9%

The Bellingham market moved even more strongly into the lower price points, with 64% of the sales below $300,000. Obviously, as prices have dropped, more homes have moved into this category, but it is interesting to note that 4 of the past 6 months have had over 60% of sales at or below $300,000. This is atypical, even as far back as 2006. It certainly isn’t because it is now easier for buyers in the lower price ranges to get loans! During the frenzy, this part of the market was heavily dependent on sub-prime loans. Now, standards for even FHA loans are higher.

There are several speculative explanations for the shift:

Prices for homes at all price points have fallen, moving more of the inventory below $300,000.
As prices have fallen, fewer owners of lower priced homes have been able to sell and take sufficient equity out of their current home to move into the next bracket.
As prices have fallen in areas traditionally providing our incoming purchasers (California, Seattle), our market has localized so our buyers have local incomes and less equity.
Buyers (and lenders) are more aware of the hazards of “over-buying”, so they are purchasing more conservative homes.

The table below shows the change in market distribution from last October

October 2010 Price Ranges in $1000’s	Total 2010 October $ Sales	Total Units Sold	Average Sales Price	% of Market	Changes in October Year to Year Distribution of Residential Sales in Bellingham

<300	$7,380,000	34	$217,059	50.7%
300 to <500	$8,739,727	24	$364,155	35.8%
>500	$3,508,000	6	$584,667	9.0%
>750	$2,731,000	3	$910,333	4.5%

October 2011 Price Ranges in $1000’s	Total 2011 October $ Sales	Total Units Sold	Average Sales Price	% of Market	Unit Change	Average Price Change

<300	$10,575,540	48	$220,324	64.0%	41.2%	1.5%
300 to <500	$7,895,576	20	$394,779	26.7%	-16.7%	8.4%
>500	$2,828,005	5	$565,601	6.7%	-16.7%	-3.3%
>750	$2,805,000	2	$1,402,500	2.7%	-33.3%	54.1%

To read the complete article visit The Johnson Team Real Estate’s Real Estate Update Page. www.JohnsonTeamRealEstate.com also includes a constantly updated list of newly listed properties and a list of properties being offered as short sales & foreclosures (REOs), as well as the entire listing database of the Northwest Multiple Listing Service, fully searchable to your specifications.

Bellingham Real Estate- Pending Ratios

Fawn — Mon, 26 Sep 2011 14:05:52 +0000

As of Saturday, September 24th, the pending ratio in Bellingham was 22% . Pending is the time frame between when an offer has been mutual accepted between the buyer’s and the seller’s of the home and when the title actually transfers hands. This give the buyer’s time to get the financing, do inspection, review the title reports and more.

Birch Bay had a pending ratio of 18%

The Lynden area in East Whatcom County has a pending ratio of 17%

The Sudden Valley pending ratio was 21%

The Ferndale pending ratio was 18%

Bellingham and Whatcom County Real Estate Pending Ratios

Fawn — Mon, 19 Sep 2011 12:48:43 +0000

As of Saturday, September 17th, the pending ratio in Bellingham was 20% . Pending is the time frame between when an offer has been mutual accepted between the buyer’s and the seller’s of the home and when the title actually transfers hands. This give the buyer’s time to get the financing, do inspection, review the title reports and more.

Birch Bay had a pending ratio of 17%

The Lynden area in East Whatcom County has a pending ratio of 15%

The Sudden Valley pending ratio was 20%

The Ferndale pending ratio was 18%