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Matt Warmack

Things to Consider for a Successful Shortsale Purchase

by Matt Warmack on February 20, 2012

Things to Consider for a Successful Short Sale Purchase
Short sales can be lengthy and difficult, but if you know what you’re doing, you can end up with a great deal.
When sellers need to sell their home for less than they owe on their mortgage, they’re asking their lienholder for a short sale of their property. Short sale homes can sometimes be bargains and only when they are bargains should you write an offer!  During a short sale remember…do your homework, stay patient, and remain unemotional during the sometimes lengthy and difficult short sale process.
Here are six tips for protecting yourself emotionally and financially when bidding on a short sale.

1. Get help from a short sale expert


Urban Abode Group Brokers are very experienced in purchasing and selling short sales.  We can help identify which homes are being offered as short sales, help you determine a purchase price, and advise you on what to include in your offer to make the lender view it favorably. Whether you use our team during the short sale purchase process or another broker, always ask for short sale success rate…this if very important in determining who you should work with.

2. Who is the team?


It is important to work with a team that is experienced in closing short sale transactions, even on the buyer side.  For example, with the Urban Abode Group you will get the services of more than one real estate Broker who have all successfully closed short sale transactions on both the buyer and seller sides.  This gives us knowledge as to what you should expect, typical red flags, etc.  A short sale negotiator is also key in the success of a short sale purchase.  They work on short sales all day, every day and know the ins and outs of successful short sale transactions.  They will negotiate everything from price to repairs to closing date with the bank on your behalf.

3. Know the home’s fair market value


By agreeing to a short sale, lenders are consenting to lose money on the loan they made to the sellers to purchase the home. Their goal is to keep those losses as low as possible. If your offer is dramatically less than the home’s fair market value, it may be rejected. Your agent can help you identify the price that’s good for you. The lender will determine whether approval is in its best interest.  Banks often come back and ask for more money than the offer that was submitted – so if you offer $300,000 on a short sale – the bank might come back and ask for $325,000 for the property.

4. Expect delays – it’s a long process


There are two stages to a short sale. First, the sellers must consent to your purchase offer. Then they must submit it to their lender, along with documentation to convince the lender to agree to the sale.

The lender approval process can take weeks or months, even longer if the lender counteroffers. Expect bigger delays if several lienholders are involved; each can make a counteroffer or reject your offer.

5. Pre-Approval


Making an offer on a Short Sale or a bank owned property will require a solid pre-approval letter.  Lenders will weigh your ability to close the transaction. If you’re preapproved for a mortgage, have a verifiable down payment, and can close at any time, they’ll consider your offer stronger than that of a buyer whose financing is less secure.

6. Pre-Inspect


You might not want to spend the money to do a full home inspection until after you get short sale approval from the sellers lender, but knowing the major issues of the house or condo upfront will help make this an easier transaction. 
Consider ordering an inspection so you’re fully informed about the home. Keep in mind that lenders are unlikely to approve an offer seeking repairs or credits for such work. You’ll probably have to purchase the home “as is,” which means in its present condition.  If you end up having to do two or three inspections on making short sale offers – it’s still a small insurance price to pay.

Keep in mind, more negotiators are requiring buyers to do a physical inspection after the seller has accepted an offer, but before full bank approval, so don’t be surprised if this ends up being the case.

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Three Tenant Screening Options for Landlords in Seattle

by Matt Warmack on January 12, 2012

You are going to rent out your home or condo.  Besides having a great lease, you need to screen your tenants.  Here are three great options I’ve discovered in my own rentals and working with investor clients.

SmartMove by TransUnion : www.mysmartmove.com

  • Online for both the landlord & tenant

Washington Landlord Association : www.walandlord.com

  • Great research – you should be a member of this non-profit!
  • $15 tenant screenings!

Rental Research Inc. : www.researchinc.net

  • Great local, Federal Way company with friendly & experienced staff

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Urban Abode Group is Growing!

by Matt Warmack on January 9, 2012

Urban Abode Group, A Top Producing Realty Team in Seattle has had sales more than triple in 2011

 Matt Warmack, founder of Urban Abode Group within the Keller Williams Greater Seattle office has witnessed phenomenal growth during 2011.  The strong sales have allowed Urban Abode Group to add three new members to the group in 2011.

Urban Abode Group is proud to announce their newest Team Members.

Bob Boyd, formerly of Windermere joins Urban Abode Group as a partner.  Bob began his real estate career notably in 1978.  He served as a Premier Homes Director for the NW area offices specializing in view and luxury homes from Magnolia to Edmonds.  Bob is joining the prestigious Keller Williams internal Luxury Home Division, which helps relocate and refer high end clients directly to agents. 

Matt also welcomes Ginny Matthews as a partner to Urban Abode Group.  Ginny has sold real estate for over a decade specializing in the neighborhoods that make Seattle a unique place to live.  Ginny provided a creative eye for Urban Abode Listings with her background in Design & Staging helping listings hit the market in their best light.

Jennifer Daniels also joins the Group as Director of Concierge Services from Keller Williams in California.  She has been in Executive Management at two California Keller Williams franchises and is expert in her field of growing real estate team business.

Urban Abode Group closed 42 transactions for over $18 Million in Residential Sales in 2011 placing it in the top ten regional teams for Keller Williams Northwest.  Urban Abode Group is an owner in the Keller Williams Greater Seattle franchise that has closed over $300 Million in transactions in 2011.  In this down market, despite the negative attention the real estate market continues to receive, Matt Warmack’s residential real estate group reflects the current market is strong for select real estate teams.

 

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Year End Real Estate Update

by Matt Warmack on January 2, 2012

Seattle Real Estate Market Update

Interest rates continue to stay low…Interest rates can have huge impact on your monthly mortgage payment, so with rates staying below 4% many first time home buyers, move up buyers and investors are taking advantage of historically low interest rates.  Purchasing power is a lot higher for home buyers with low interest rates.  This means homes that are priced right are selling quickly!  We constantly hear about falling home prices, but interest rates play a major factor in the housing market.

Great properties continue to sell FAST…and have continued to sell fast through the winter and holidays.  With so many distressed properties hitting the market regular sales are very much in demand.  This is great for sellers who are not selling short.  As a seller this should give you reassurance that if home is well maintained and updated, especially in a desirable neighborhood you will likely have a strong & fast offer in the Seattle Metro Area.  Many well priced properties are currently receiving multiple offers.  The outlying areas of Seattle are having a tougher time recovering.

Bank owned and short sales are still losing value…as a buyer this is good news because deals are still available.  Don’t let this scare you from getting into a good property though, because again, interest rates make what you can afford more attractive than ever – creating a lot of value for you in the future.  Buying a bank owned or short sale in a desirable neighborhood and putting in a little money to fix it up will add significant value to your home, because standard sales that are well maintained are sought after!  Many buyers don’t want a project.

The rental market was red hot throughout 2011…but has flattened out in the winter of 2011 due to the low interest rates pushing first time home buyers into the market because it is now cheaper to buy than rent in some City of Seattle neighborhoods and areas just outside of Seattle.  Due to the tax advantage of owning a home as opposed to renting – the value becomes even better for the rent versus buy calculation.  Landlords and investors should follow the in-city apartment building closely and make wise decisions.  Many investors continue to scoop up deals in all areas of metro area as they feel it’s a great time to purchase – which is another factor in keep the housing inventory low right now.

The farther out you go, the harder hit the market is… the days on market and the percentage in price drop from the height of the market is hitting the further out areas more than it’s hitting the great neighborhoods of Seattle & the eastside communities close to Microsoft.

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2011 Seattle Real Estate Market Update – Urban Abode Group Market Update

by Matt Warmack on February 9, 2011

Seattle Real Estate Market Update

What is the Seattle Real Estate market doing (and where is the market going)?

There are no easy answers to these questions, but I’ll make my best educated guesses for what you can expect for Seattle Real Estate in 2011.

  • The good news is that real estate prices are stabilizing, but the bad news is that the amount of quality inventory is getting tight and interest rates are definitely on the rise. This is creating a pretty substantial sense of urgency for buyers on the fence.  The 2011 Spring market is red hot compared with the last two years.

  • On the flip side, sellers that don’t have to sell are choosing to wait out the market.  This unfortunately means that there is less quality inventory of homes and condos for sale.  These Seattle home sellers are simply holding out for better prices in 2012 and beyond – which makes 2011 a great year to buy if you can find something you want! Keep in mind that inventory can be tight at certain price points in certain neighborhoods. But I can testify that the quality listings are going super fast right now, it will not pay to wait. And hey, more sellers might enter the market but with higher expectations and price tags. Overall, this will create a much healthier Seattle Real Estate market where quality listings will go fast.

  • Rising interest rates will be more important to the buyer than trying to time the market for the lowest purchase prices.

  •  Desirable Seattle and Eastside neighborhoods that are close to retail services and good schools will remain steady – especially at first home buyer price points. Quality Real Estate has always rebounded first and it is beginning to happen.

  • Even the “bubble” bloggers are saying that the Seattle 2011 market will have roughly flat pricing in quality neighborhoods and have a slight increase in sales volume–-creating a great time for buying and (finally!) the ability to sell without too much pain.

  • The NWMLS Press Releases are usually pretty positive, and they recently gave us even more good news:  “Dramatic increases in open house activity and shrinking inventory are fueling optimism among members of the Northwest Multiple Listing Service. Commenting on the just-released MLS report on January’s housing activity, one director stated, ‘There is a strong belief in the industry that the worst is behind us and we can look forward with confidence.’” Music to any Seattle property owners ears.

  • It’s also important to keep in mind that distressed properties (short sales, foreclosures, and bank owned) will still play a factor in the Seattle market. We’re not out of the woods yet, but it’s not quite so dark.

  • In my opinion, while 2011 might not be the strongest seller’s market in Seattle’s history, don’t be a buyer in 2012 that wish they had made their move in 2011!

Predicting the future of Seattle Real Estate activity for the next year is always inexact, but I believe wise buyers and sellers can both take advantage of more favorable market opportunities – especially interest rates. And we here at Urban Abode are ready to help you make the most out of a promising 2011.

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2011 Gallery Condos Auction – March 5th, 2011

by Matt Warmack on January 26, 2011

Banner Bank Belltown in Gallery Condo Building

Schnitzer has teamed up with Accelerated Marketing Partners for a 2nd Condo Auction at Gallery Condos in Belltown.  The auction will take place on March 5th, 2011 according to a letter to homeowners.  Public information and an updated web site will be announced on Thursday (January 27th, 2011).

We will be annoucing details to the broader public in our campaign event launch on Thursday, January 27th and welcome the opportunity to meet with you as our VIP at the Gallery Sales Center.

If you are interested in partcipating in the Gallery Condos auction on March 5th, 2011 – we can help represent you through the process.  Please contact us at team@urbanabodegroup.com to tour the auction units for sale.

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Federal Mortgage Interest Deduction Update

by Matt Warmack on January 20, 2011

I understand National Association of Realtors ® (NAR) role as a cheerleader for the Real Estate industry.  I get that and know some of the readers of this blog look at the Realtor Association spin with a wary eye.  I truly believe in talking with all political types over the past few months that the support for the Mortgage Interest Deduction (MID) on the West Coast is quite strong and this isn’t NAR hype – it’s a fact!  The road to recovery in the US Residential Real Estate market is to keep the Federal Mortgage Interest Deduction and I have no doubt that we will stay the course in the US on the MID.  If you have followed this – please read the letters linked below:

Letters (Link)

Congressional Resolution Introduced Supporting Mortgage Interest Deduction

Congressman Gary Miller (R-CA) and a group of bipartisan cosponsors have introduced House Resolution 25, a resolution that affirms the importance of the mortgage interest deduction (MID) and urges retention of current law. He has circulated a letter to all House members to secure additional cosponsors. In addition, NAR has circulated its own letter to House members requesting their support.

Letters (Link)

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Short Sales In Seattle Will Be Around For A Long Time

by Matt Warmack on November 11, 2010

If you’re looking to buy or sell real estate in Seattle, I’m sure the term “short sale” has come up at some point. A short sale is when an owner sells their home or property for less than what is owed on the loan secured by the owner’s property.  The challenge with this process is that the mortgagee (or lender) has to approve the acceptance of less money than what is owed to them to release the lien and let the short sale happen. To say the least, this process can take a very long time. If the property isn’t going for well below market price, it isn’t worth your time as a buyer.  As a “short sale” seller of property, your Real Estate Team needs to make the math work for your mortgage holder – more on that topic on a later blog post.  Sometimes it doesn’t even make sense to do a Short Sale as a Seller, but that is a complicated decision that is best discussed one-on-one with a trusted professional. If you are a buyer – you definitely don’t want to pay market price with all of the hassle of a short sale – it must be below market value.

Keep in mind that the short sale trend is happening all over the country. According to National Association of Realtors (NAR) data, in the second quarter of 2010, the top states where significant shares of all properties on the market are potential short sales are:  Nevada (32%), California (28%), Florida (27%) and Arizona (24%). While Washington isn’t on the top of this list (or even near the top!), short sales are still very much a reality when considering buying real estate in Seattle.  A property owner in Seattle that bought in the bubble years (2006/2007) with little money down and is selling in 2010 & 2011 will be in a short sale situation due to market decline.

Here are two reasons why short sales have become more of a more viable option in Seattle:

1.    Bank Owned Properties (REO’s) appear to be in shorter supply recently because they are so aggressively priced, which often brings out deal seeking investors or buyers. This causes the properties to generate multiple offers and sell fast, thereby creating buyers that increasingly become more and more aggressive with each property that they lose out on. On the upside, this behavior is good for our future economy (as long as it doesn’t create the same irrational exuberance that got us here in the first place). These zealous buyers then have to consider all of their options to purchase and–low and behold–short sales enter into the conversation.  Now keep in mind that they are definitely not the only option. I actually just wrote about it here.  But, with short sales becoming a better option than foreclosures for distressed sellers, more are being listed every day. This, combined with the fact that buyers are willing to make offers on short sales (aka pre-foreclosure), banks have been willing to approve more and more short sales.

2.    In general, I think it is safe to say that banks overall are getting better and more open to approving these short sale deals. When the real estate market started to collapse, banks and/or lenders did not know how to deal with short sales (and they certainly weren’t staffed to handle the volume). Now that we are several years into the decline, the banks/lenders have staffed the Loss Mitigation Departments and have put processes into place to more adeptly approve short sales.

If you’re looking to purchase Seattle Residential Real Estate, we all better get use to short sales since they will be around, and in large volumes, for at least the next three years. So it really is important that you know your REALTOR’S comfort level and experience in working with short sales—whether you’re buying or selling. We would love to help you with your short sale here at Urban Abode Group. Give us a call or post a comment—we’re here to help.

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Bellevue Towers : Closed Sales Update

by Matt Warmack on November 10, 2010

August 2010 & September 2010 Bellevue Tower Closings – (Floor Plans)

 10608 NE 4th St Unit 1005             Bellevue              WA         98004    8/2/2010              $500,000              2 Bed / 2 Bath

10608 NE 4th St Unit 1509             Bellevue              WA         98004    8/2/2010              $300,000              Studio / 1 Bath

10608 NE 4th St Unit 3212             Bellevue              WA         98004    8/20/2010            $888,500              2 Bed / 2.5 Bath

10608 NE 4th St Unit 1105             Bellevue              WA         98004    8/31/2010            $510,000              2 Bed / 2 Bath

10608 NE 4th St Unit 332               Bellevue              WA         98004    9/7/2010              $325,000              1 Bed / 1 Bath

10608 NE 4th St Unit 1107             Bellevue              WA         98004    9/16/2010            $380,000              1 Bed / 1.5 Bath

10608 NE 4th St Unit 1912             Bellevue              WA         98004    9/23/2010            $580,000              2 Bed / 2 Bath

10608 NE 4th St Unit 1001             Bellevue              WA         98004    9/27/2010            $707,000              2 Bed / 2 Bath

10608 NE 4th St Unit 608               Bellevue              WA         98004    9/30/2010            $500,000              2 Bed / 2 Bath

 No closed transactions in October 2010

Search Downtown Bellevue Condos Now!

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How To Get The Most Money For Your House Or Condo

by Matt Warmack on November 3, 2010

I’m sure it comes as no surprise that your Real Estate Agent’s job is to get the most money for your house in the shortest amount of time.  What should you and your REALTOR® do as a team to get your property sold in Seattle, WA?
 
Home sellers often think that to help this process that their Real Estate Agent needs to do a lot of “out of the box” thinking to get their property to stand out.  Getting a house sold isn’t about out of the box thinking – it’s about making the basics solid – really, really solid.  Does it look & smell great inside & out?  Is it staged and de-cluttered?  And most importantly is it priced right with a top performing agent?  An agent with some crazy “500 point marketing plan” is never going to beat an agent that nails the basics.  I have run across a few property owners that want to do less work and still over-price their homes.  Not sure why anyone thinks this will work in today’s market.  If it looks great inside and out and priced at market value with a top performing agent - it will sell.
 
Before you dive into any projects, I’d suggest consulting a professional real estate broker who can guide you in to focusing on getting it ready for market. Here are three items that will drastically help you sell your house quicker and for more money:
 
1) Professional Photography

In this day and age, the photos that are taken of your home are vital in attracting people to your property. Remember: all searches start online.  I know it takes a lot of work to get your house or condo ready for the pictures, but keep in mind that these photos will drive all aspects of marketing your home. It’s worth the money to have good, quality photos.  At Urban Abode Group – this is free to you.  We pay for all professional photography for our clients.

2) Fixed Up & Staged

You’re going to have a lot of potential buyers walking through your home and you’ll want to make sure that it’s warm and inviting. You should be aiming for a “model home” feel to the property so make sure that it looks (and smells!) great inside and out and is free of clutter.

3) Priced to sell in 90 days or less! 

A high priced house with great marketing only helps to sell all of the houses around it.  People look at multiple homes before purchasing and if yours is overpriced, then it’s on to the next open house.  In today’s market with pre- and post-foreclosures being your competition you need to be motivated to sell, not motivated to “test” the market. A properly priced house will create enough interest to get a quick offer, and this type of behavior will help you get the best price for your home history shows.

The focal point is to make sure that your home looks great online and in person and has a fair price. In today’s market you need to be a smart seller that is putting their time, effort, and money into the basics. I’m sure if you do these things, you’ll move your house quickly and for the best price.
 
We’ve recently sold a client’s condo in 22 days.  Read more here.
 
When you’re ready to sell your Seattle House or Condo - give us a call or email!  We’ve got the resources you need to get your home at the forefront of the local market.  Urban Abode Group would be proud to help sell your Seattle property quickly and for a great price.

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