Seattle Housing Buzz

Not housing news, but effective April 1, 2008, the sales and use taxes in King County will increase to from 8.9% to 9.0%. The additional one-tenth of a percent will go towards mental health or chemical treatment services. The sales tax for communities in non-RTA areas will be 8.6%.

See King County’s bulletin on the tax (PDF file).

Tags: King County Sales Tax

Ok, so I’ll weigh in here. Redfin recently announced their updated buyer-side performance statistics. Redfin agents, they say, beat other companies by negotiating 1.015% off the list price compared to .087%. Locally, Redfin states they’re able to negotiate more off the sales price for their buyers compared to all other agents, 98.89% to 99.38%. And, when combined with buyer rebates, they save their buyers $12,262 on average. This amounts to 2.45%…what they call the Redfin Advantage. Very commendable, indeed.

So, how did my buyers fare? Would they have done better with Redfin?

Over the same period, on average, I negotiated 2.76% off the list price saving my buyers $15,666 off the top. This figure does not include subsequent seller concessions such as seller paid closing costs (not wrapped into the sales price) and credit for repairs and so forth, which amounted to an additional $3,833, on average.

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Redfin buyers save on average: $12,262 which include the buyers rebate.

Ben’s buyers save on average: $19,499.

Tags: Buyers Agent, Redfin, Seattle Real Estate

The Washington Realtor Association recently surveyed home buyers throughout the state and compiled some interesting results.

Home buyers typically purchased a home within 13 miles of their current residence, averaging 1,790 sq ft with a median price of $300,000.

• Of homes purchased, 72% were single family dwellings and 25% were new construction.
• First-time buyers accounted for 41% of all homes purchased in 2007. They had a median income of $54,700 and their median age was 31 years. Nearly half of first-time buyers were between 25 and 34 years old.
• Of all buyers, the median household income was $73,900 with a median age of 38 years.
• Demographically, 63% were married couples, 21% single females, 6% single males and 9% were unmarried couples. (Don’t know who the other 1% were, though.)
• Seventy-six percent of buyers between 18 and 24 purchased a home out of a desire to own and establish a household.

Technology-wise, 73% of buyers began their home search online while 14% of first-time buyers and 22% of repeat buyers began their search by contacting an agent.

• However, 91% of all buyers utilized the internet at some point to search for homes.
• Interestingly, 37% reported they first learned of the home they purchased through the internet while 30% said their Realtor located the property for them.
• The typical internet searcher was 38 years old and visited a median 12 homes. The typical buyer who did not utilize the internet was 49 years old and only saw a median 4 properties.

Real estate agents assisted 85% of buyers who purchased a home.

• Though, buyers tended to search for homes for two weeks before contacting an agent.
• During the home search process, 72% of buyers indicated their agent was a useful information source.
• Of qualities important in selecting an agent, 98% of buyers stated honesty and integrity were most important. When asked to rate their agent’s performance on those qualities, 87% indicated they were “very satisfied”.
• And, 68% of buyers stated they would use their agent again.

Tags: Home Buyer, Home Search, Seattle Real Estate

From CNN Video: Desperate owners burn homes

The past couple of years Ballard has been a buzz with new condominium and townhome developments as well as witnessing the loss of apartments to condo conversions. Over the next two years the Ballard landscape will continue to evolve with the return of new apartment developments in this once sleepy enclave.

Here’s what’s on tap for the new Ballard:

Broadstone Ballard

Address: 1139 NW Market Street
Developer: Alliance Residential
No. Units: 163
Comment: Two 6-story buildings with retail along Market. Construction to begin later this year with a 2010 completion.

Ballard on the Park

Address: 24th Ave NW & NW 57th (QFC site)
Developer: Security Properties
No. Units: 268
Comment: Six-stories with a 45,000 sq ft QFC market on the ground level. A 2009 completion date is anticipated.

Alexan Ballard

Address: Market between NW 15th & 17th
Developer: Ballard Apartments / Trammell Crow Residential
No. Units: 260
Comment: Designed by GGLO who also designed the Hjarta on the north end of the Market. Two buildings, 6- & 8-stories, with commercial/retail on Market. Completion slated for 2009.

Additionally, the new owner of the Sunset Bowl is a major apartment developer and management company with 13 properties in Seattle and the Eastside.

Tags: Alexan Ballard, Ballard, Ballard on the Park, Broadstone Ballard, Seattle Apartments

Last week the state legislature overwhelming approved bill 2778 reforming the licensure of real estate agents. The bill now heads to the governor’s desk for signing. The bill, which strengthens consumer protections and professional accountability, received widespread support within the industry.

The core reforms include:

• Elimination of the real estate salesperson classification, leaving broker, managing broker and designated broker classifications.
• Amends the licensing and educational requirements for brokers to 90 hours. Essentially, the “new” broker designation replaces the “salesperson” classification which only required 60 clock-hours of education.
• Implements greater oversight of licensees.
• Requires a background check by the Washington State Patrol.

Once signed by the governor the bill will become effective July 1, 2010.

Personally, I’m all for this bill even though it should be tougher. There is a definite need to increase the educational and licensing requirements of real estate professionals in Washington State. The changes will help to assure consumers that individuals practicing real estate are qualified, above board, full-time business persons. It’ll eliminate the plethora of agents who aren’t committed to improving their own skill sets or who treat real estate as a hobby or second job.

Tags: Housing Legislation, Real Estate Legislation, Real Estate Licensing, Seattle Real Estate

From NWMLS Press Release:

February housing activity around western Washington signaled signs of an emerging spring market with a noticeable increase in open house traffic, reports of multiple offers and a big jump in pending sales from the previous month.

New figures from Northwest Multiple Listing Service show a 23.6 percent increase in pending sales (offers made and accepted, but not yet closed) compared to January. Prices for last month’s closed sales of single family homes and condominiums (combined) were up in 12 of the 19 counties in the MLS service area.

“In March, the real estate market is set to get its mojo back,” remarked J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. “We’re already seeing the momentum build as more and more buyers realize what a great time it is to buy a home thanks to low interest rates, healthy inventory, and a strong local economy,” he added.

Area-wide, the MLS reported 5,563 pending sales of single family homes and condominiums for February, up from January’s total of 4,499. Last month’s total still lagged the busier market of a year ago when there were 8,043 pending sales of single family homes (a decline of nearly 31 percent).

While encouraged by last month’s jump in pending sales from January, brokers also acknowledge hesitancy still exists among some buyers. However, among sellers, one broker said “they’re motivated like never before and willing to listen to reasonable offers much more readily today.”

Read more »

Tags: Housing update, NWMLS