Northwest Home

Residential rental vacancy rates are rising

John — Mon, 14 Dec 2009 17:59:58 +0000

According to an article in the Seattle Times this weekend, Puget Sound has experienced an increase in residential vacancy rates in the last twelve months, moving from 4 to 7.2%. With an the increase in inventory the market has to adjust to the increased pressure to lower rents. The article is a good one and suggests that rental rates may decline as much as 8% in 2010 and that rental incentives are now on the table.

Will this impact residential sales until it becomes less expensive to buy than to rent?

Extension of Unemployment Insurance Compensation includes tax credit for Home Buyers

John — Sat, 07 Nov 2009 01:25:12 +0000

For more information on this landmark legislation, read these articles:

President Obama Signs Bill Expanding Homebuyer Tax Credit

Unemployment rate rises above 10% ; Obama signs jobless benefit extension

WA Realtors visit Japan in 2010

John — Sat, 07 Nov 2009 00:56:49 +0000

In the Pacific Northwest we have a long history of trading throughout the Pacific Rim. In August of 1896 the Miiki Maru steamed into Elliot Bay with a cargo of teas, silk camphor soy oil and paper, among other things, from Japan. The Miiki Maru left with lumber, flour, cotton and hardware destined for Yokohama, Kobe, Nagasaki and Hong Kong.

In February of 2010 a delegation from the Washington Realtors will be steaming towards Kobe, Japan to join in ceremonies commemorating the 50^thanniversary of the Hyogo Prefecture Real Estate Transaction Association. The visit is in response to a visit in September of 2009 by five representatives from the Hyogo Prefecture Real Estate Transaction Association (Hyogo Taku-Ren). In a landmark ceremony members of the Washington Realtors and the Japanese delegation signed a Letter of Intent for a Bilateral Cooperative Agreement. Press release

Financial Markets, Cap & Trade and Health Care in the US (Part 1)

John — Sat, 24 Oct 2009 20:39:14 +0000

Zillow is emerging as a powerhouse of unfettered opinion in the housing sector, based on their love for housing market data. Regional recovery is still mixed so we are going to need more than optimism to believe that this market is beginning to stabilize. Zillow Chief Economist Stan Humphries has been in the public eye in the last few days and he outlined the housing market drivers that could stimulate or stall any recovery on CBS Moneywatch. In the true spirit of journalism, here is a voice that doesn’t have ties to your net worth or your bonus.

Abuse to one person may be fair play to another. Where do you stand today on the field of credit? Many of us have watched our net worth plummet and our retirement savings disappear. Some of us have received handsome performance bonuses for generating substantial profits based on formulas that don’t take into consideration looming write-downs that substantially influence our financial system. Do you think that regulation will help curb the instability?

What costs can be included in the APR?

John — Fri, 16 Oct 2009 17:14:49 +0000

I’ve attached a list that I was given for your review. The list was described to me as potential costs that might be included in the APR (Annual Percentage Rate) of a mortgage.

Do you see anything that shoudn’t be there? Or should be added?

APR_fees

Reverse Mortgage counselors qualified

John — Sat, 10 Oct 2009 21:31:37 +0000

Here’s a note that came out of the HUD newsletter on October 1st:

The National Housing Act requires that elderly homeowners seeking an FHA Home Equity Conversion Mortgage – a “reverse mortgage” – must receive counseling “provided by counselors who meet qualification standards..” A final rule published in the September 2nd, Federal Register establishes a roster of counselors who have met these standards and from which counselors should be chosen. For more, visit http://edocket.access.gpo.gov/2009/E9-21076.htm

It is usually a rather expensive means of gaining access to home equity, but in some cases a reverse mortgage may fill a gap that is ultimately a real help. The number of professionals working in this field today is growing rapidy. Look for experience and a good referral.

Top environmental news from around the world

John — Fri, 11 Sep 2009 19:45:27 +0000

I just found an interesting site that brings environmental issues together for us. Grist is located in Seattle but has writers and pulls from news on a global basis. Sign up for their news letter….

How can we estimate the cost of a remodel that we would like to do ourselves

John — Sat, 05 Sep 2009 00:56:53 +0000

Do just what a good GC would do on a very custom job:
1. Break the project into known and unknown scopes.
a. Known – for example 42 electrical outlets at $75 each, 5 doors at $200 each. These are items that you can see and there isn’t any reason to believe that these costs may vary. If you are uncomfortable doing electrical work or plumbing work these may be subcontracts that you get fixed bids on. Again the point is NO CHANGE in the future.
b. Unknown – these are tasks that may change in scope. For example, you are too lazy to pick out a light fixture, tile or plumbing fixtures now, or you want to make the choices later. Establish an allowance budget for these items now. Be realistic but don’t sweat the details.

2. Confirm (price) the known scope – this can be accomplished by going to the store with a shopping list and pricing it or asking subcontractors to give you prices on their specific trades.

3. Make allowances for the unknown scope - if you have to remove a wall it is very easy to estimate how long it will take to remove and replace the GWB. It may not be easy to estimate how long it will take to repair the rot behind the wall but don’t give up on the whole process as being too hard to estimate. To repeat; estimate the knowns (fixed priced) and document them. Make a guess at what you can’t see. It really burns me when subcontractors try and tell me that because it is a remodel they will only work on a T&M basis. Do you mean to tell me that a plumber doesn’t know how long it takes to rough in and set a sink or toilet? OKI believe that those costs are known and it is the vast majority of their work. When you pulled the wall apart, it turns out that he has to run 16’ more copper to get around a column or spend a few more minutes notching a beam for the toilet. OK, those are unknown, but how much did they cost? What we’ve done is control the risk. We’ve isolated the allowances and they are a very small part of the project.

4. Give yourself a contingency; the size depends on the size of the project. Start out at 25%. Do your estimate and revise your scope (eliminate or add back things you need or don’t need) if you want to. Revise the estimate and only use a 20% contingency. Make some more decisions and get subcontractor quotes. Do you feel comfortable going down to a 15% contingency? Remember, no matter how detailed your estimate is, something will change and you will need (or want) a little more money than the “bid.”

5. Use your estimate as a sounding board. If a subcontractor says they need more money, get really specific: what is actually different than was estimated. The more detailed the original estimate from the contractor, the easier this step is. If it looks sketchy to begin with, the little red flag goes up. If you over spent on plumbing fixtures, under spend on electrical fixtures….. You will find that the allowance budgets are far smaller that the known (fixed) budgets. If you watch the allowances closely you won’t go over budget.

6. If you live with a mate, tell them you love them on a daily basis, even if you are tired. If you live alone, include a friend for support.

The Law of Real Estate Agency

John — Wed, 02 Sep 2009 16:18:55 +0000

You deserve to know a little about the law that governs real estate agency in Washington State. The Law of Real Estate Agency is required to be given to every potenial client considering entering into an agency relationship with a real estate licensee in our state.

Exquisite building lot on the Washington Park Arboretum

John — Fri, 28 Aug 2009 23:45:13 +0000

Here’s a little gorilla marketing for a wonderful building lot (never been used) right on the Washington Park Arboretum. It is just over 10,000 SF and is accessed from a quiet loop of Arboretum Place E. and E. Garfield. The neighborhood is an enclave of well-built homes with easy access to both the Mountlake district and Capitol Hill.

This note is being circulated amongst a group of Architects with the thought that there may be someone that they are working with who is looking for an unusual in-city building site. The link below will give you an initial look at a site map.

If you have any questions I can be reached at 206-729-0243.

See the Arboretum Place Location map

Click on the photo to view its full size:

The corner of Garfield and Arboretum Pl