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Matt Warmack

A Seller’s Market? Well…

by Matt Warmack on March 23, 2012

Seattle Real Estate Market Update

With the combination of low inventory that just keeps decreasing, and interest rates that are creeping up we now have a hot market, and dare I say seller’s market.

For the past couple of years interest rates have dropped and stayed at historical lows.  The most popular loan for homebuyers, the 30 year fixed rate mortgage, has hovered at and below 4% for the last 2 years.  Although it was so inexpensive to get a home loan, consumer’s faith that home prices would not continue to fall was low.  This meant we saw many buyers nervous to put in offers, assuming the low interest rates and high inventory would continue to be available.  This was all true until about six months ago.

As real estate agents we have seen the inventory start to reduce as a result of the decreased amount of foreclosures new to the market.  This is due in part to the efforts by banks to accept loan modifications to homeowners who would otherwise have foreclosed as well as the time that has elapsed since the “housing bubble”.   In fact, in certain areas of the Pacific Northwest we are at below one month of inventory, this is unheard of.  In conjunction with the severely decreased inventory, we have now seen the interest rates start to climb, which will ultimately get more buyers off the fence.

What does this meant to you as a buyer or a seller.  Well, multiple offers are happening on practically every home.  We still have investors paying all cash snatching up the distressed properties competing with all the buyers who were waiting for the market to jump back to life competing with the normal move up/down and first time homebuyers.  Homes that are priced right are not sitting on the market for more than a few days, many are selling for over asking price.  It is also not uncommon now to see 50+ people through an open house.  For sellers, you will still have to price your home for the market, which is lower than it would have sold for 5 years ago, but if you can do that you are now in control, much like a traditional seller’s market.

The last of the great deals WILL happen in 2012!!

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Queen Anne Home Stats: March 2012

by Matt Warmack on March 2, 2012

Queen Anne Real Estate Market Update

 

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March 2012 Belltown Stats Update

by Matt Warmack on March 1, 2012

March 2012 Belltown Condo Stats Update

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Seattle Real Estate Heating Up

by Matt Warmack on February 28, 2012

Warren Buffett is praising buying investment properties. 

What you might not be seeing in the news is that the Seattle housing market has changed.  We are witnessing multiple offers this month on nearly EVERY single transaction.  It’s changed overnight.  Please call me if you want to discuss real estate or know someone wanting to sell their house.  Seattle does not have enough houses & condos for sale right now – so please spread the word and let me have a chance at becoming the listing agent.

WARREN BUFFETT QUOTE
February 27th, 2012 on CNBC

Well, if I thought I was going to live— if I knew where I was going to want to live the next 5 or 10 years I would— I would buy a home and I’d finance it with a 30-year mortgage, and it’s a terrific deal. And if I— literally, if I was an investor that was a handy type, which I’m not, and I could buy a couple of them at distressed prices and find renters, I think that’s— and again take a 30-year mortgage, it’s a leveraged way of owning a very cheap asset now and I think that’s probably as an attractive an investment as you can make now.

http://www.cnbc.com/id/46541258

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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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