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Ginnie Mae announced on August 27th this year that they would be removing the limit on mortgage loans guaranteed by the Department  of Veterans Affairs (VA Mortgage Loans)! The limit previously has been capped at $417,000. The memorandum can be found here. This change became effective September 1st, 2007.

I don’t know how I missed this news when it was first published, and I am still surprised there has not been more media coverage. This is potentially big news for VA borrowers, Loan Officers and Realtors® across the nation. Right here in Kitsap County, this could easily reestablish some momentum in our real estate sales.

What this means to Kitsap County VA Homeowners

If you own a home in Kitsap County and you qualify for a VA mortgage loan, but you thought you could not take advantage of refinancing opportunities because the value of your home is too high, think again. With the loan limit removed, you may be able to take advantage of the historically low fixed rate loans VA offers. In addition, unless the lender imposes an add-on fee for exceeding the $417,000 conforming limit, Jumbo Loan borrowers will be able to acquire terrific low interest rates on very large loans. Imagine having a $750,000 mortgage at a fixed rate of 6.00% for 30 years.

What this means to Kitsap County Homebuyers

Kitsap County VA homebuyers, will no longer be limited to the $417,000 ceiling. If a homebuyer wants to exceed that limit, the borrower will need some cash down payment. VA guidelines stipulate that if the loan is above $417,000, the borrower can finance up to 75% of the difference. In other words, on a $517,000 pruchase, the veteran would need $25,000 (plus closing costs and pre-paid items). This scenario would be over the VA limit by $100,000 so the VA would allow financing to be increased by 75% of that or $75,000. The borrower is responsible for the difference. 

What this means for Kitsap County Sellers

Homes for sale above the $417,000 conforming limit, will now be able to be marketed to VA buyers! In the past, with the limitation in place, these properties could not be listed in the MLS as VA. Kitsap County has a very large population of Military families. Sellers in the upper price ranges have not been able to offer their homes to VA buyers unless the buyer was willing to switch away from VA financing.

What this means to Kitsap County Realtors®

Any Realtor® reading this article has already figured out what this could mean for their clients. Their sellers can now offer properties to a larger pool of buyers and their VA buyers can make offers on more expensive homes without the need to switch to conventional or subprime loan programs.

Overall, this is big news. Some questions remain that I have not been able to find answers to yet.

• Will lenders take advantage of this change? (Lenders can, and often do, refuse to participate in available programs)
• Will there be a maximum loan limit set? (Think jumbo and super jumbo loan sizes)
• Will the 25% veteran participation apply to the down payment parameters that lower the VA Funding Fee? (This is the question I really want an answer to)

I will add to this article as the information comes in. You may want bookmark this one and check it for updates.

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Posted in Bites of Washington, Bremerton WA Real Estate, Buyers, Gig Harbor Real Estate, Miscellaneous, Mortgage Bites, Port Orchard Real Estate, Poulsbo Real Estate, Real Estate Bites, Sellers, Silverdale WA Real Estate | 5 Comments »

Tags: kitsap va loans, Real Estate Bites, va mortgage loans

We hear it on the news as we’re getting dressed. We read it in our morning paper. We hear it being discussed while standing in line at Starbucks, or around conversations at work. The dark clouds of Doom have been spreading across the country, hitting us from all sides….

“The Real Estate Sky is Falling!”    “The Real Estate Sky is Falling!”

You hear something over and over long enough, it’s hard not to start believing it yourself. As a licensed real estate professional, I don’t buy into the seemingly dismal market heresay and all the water cooler speculations. But there are times when I find myself being affected in small, subtle ways. The ever-positive ‘Can-Do’ attitude begins to weaken slightly and wane. Suddenly you find yourself beginning to cringe whenever one of your Sellers call. Your usual air of confidence isn’t as convincing as it usually is. Your historically effective flurry of marketing efforts bears no fruit. Your Listings languish. Days on market becomes a curse, rather than a testimony.

Welcome to a Slow Market.

“Is the Sky truly Falling?”  No, of course it isn’t. It’s the proverbial ‘Ying & Yang’ of the real estate business. The perpetual cycle of peaks and valleys. A continuum of self-correction and balancing. How long will it last? No one knows. Will it get any worse? Again, no one really knows for certain.

However, one thing IS certain. One of the most predictable constants in the wild world of real estate is that people will need to move. There will always be Buyers and Sellers. Regardless of rates, regardless of prices, regardless of market variables, people will need to move.

In the majority of residential transactions, someone will represent the Seller, and someone will represent the Buyer. Who do YOU want to represent you? Someone who is standing under a dark cloud crying “Wolf!” Or someone who is optimistic and positive? Someone who understands the dynamics of a slow market and embraces the challenge?

Success begins with the proper attitude. Don’t allow Henny Penny, Ducky Lucky, Goosey Loosey, and any other doom-sayers to negatively influence your perception of the market.

The sky ISN’T falling. It’s simply filled with opportunities!

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Posted in Bainbridge Island Real Estate, Bremerton WA Real Estate, Buyers, Gig Harbor Real Estate, Port Orchard Real Estate, Poulsbo Real Estate, Real Estate Bites, Sellers, Silverdale WA Real Estate | 6 Comments »

Real Estate Market Report/Conditions in Kitsap County WA for 09/02/2007

The following is a quick analysis of the combined single-family home and condo market within Kitsap County, Washington for September 2007, provided by Rich Jacobson of Windermere Real Estate, in Silverdale, WA (excludes Bainbridge Island).

• Properties currently active on the market: 2158
• Properties closed in the last 180 days: 1749
• Average Sales Price: $312,461
• Average List Price: $342,534
• Ratio of List Price to Sales Price: 96%
• Average Days on Market: 87
• Sales Pending this Week: 45

Current Market Conditions: The highest ratio of List Price vs. Sale Price was 101% for Area 141 (South Kitsap West of Hwy. 16).  The lowest ratio was 73% for Area 168 (Indianola). Shortest Days on Market (DOM) was Area 150 (E. Central Kitsap) with 59 DOM. Area 146 (Chico) was 2nd at 67. Longest DOM goes to Area 163 (Port Gamble) with 149, and 2nd longest is Area 162 (Kingston) with 105.  Overall inventory dropped slightly, and sales increased as well. Certainly a more optimistic indication that the market may be stabilizing somewhat.

For Buyers: Now is still a great time to consider purchasing a home, especially for 1st Time Home Buyers. The current rate this morning for a 30-year Fixed Rate loan is just over 6% just under 6.00%! (edited by Mark) With the number of available homes on the market, Buyers have more choices and greater negotiating room.

For Sellers: Make sure that you’re priced aggressively and that you and your Listing Agent are working closely together as a team, doing everything you can to position your home Head & Shoulders above the competition.

Two of my most recent listings are both great values! A lovingly remodeled Turn-of-the-Century Charmer by Island Lake (13110 Lakeview Avenue in Poulsbo), and a stunning Craftsman Puget Sound View home (22829 Jefferson Point Rd. in Kingston). Call (360) 440-4758 for more details or to arrange a private showing!

For additional information and resources concerning real estate and living in Kitsap County, Washington, access my comprehensive website, www.KitsapLife.com.

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Posted in Bainbridge Island Real Estate, Bremerton WA Real Estate, Buyers, Gig Harbor Real Estate, Port Orchard Real Estate, Poulsbo Real Estate, Real Estate Bites, Sellers, Silverdale WA Real Estate | 2 Comments »

Real Estate Market Report/Conditions in Kitsap County WA for 08/02/2007

The following is a quick analysis of the combined single-family home and condo market within Kitsap County, Washington, provided by Rich Jacobson of Windermere Real Estate, in Silverdale, WA (excludes Bainbridge Island).

• Properties currently active on the market: 2199 up 4.7%
• Properties closed in the last 180 days: 1652 up 5.5%
• Average Sales Price: $309,118 up 1.1%
• Average List Price: $313,008 up .09 %
• Ratio of List Price to Sales Price: 99% same
• Average Days on Market: 85 days down 4.5%
• Sales Pending this Week: 69 up 36%

Current Market Conditions: Well, as you can see from the monthly stats update, inventory continues to increase. Fortunately, so have home sales. The pendulum has clearly swung over towards the Buyers favor in most areas of Kitsap County WA. Personally, as a professional licensed agent, this is a market dynamic I much more prefer. My Buyer clients have more time to shop and make prudent/wise home purchasing decisions. As a Seller’s agent, it requires greater effort and creative marketing ability to successfully achieve a timely sale. Many newer agents who jumped on the ‘Hot Market’ bandwagon are going back to their former jobs. A slower market definitely separates the career agents from the ‘wannabes.’

Last month, I offered some practical advice to prospective Sellers. Here it is again:

• Conduct a pre-sale home inspection. Anticipate and correct any problem issues ahead of time.
• If you’re on a septic, go ahead and have it pumped and inspected. Place of copy of the receipt and inspection results in the Home Book.
• Depending on the age of your home, offer a Home Warranty Plan to prospective Buyers.
• Consider having your home staged or hire a staging consult to give you some suggestions.
• Price your home aggressively.

One of the best values on the market right now is my listing on 7236 Hillridge Place. It’s a great newer home (2005) off Bielmeier Road in Port Orchard. The 4BR (3BR septic) 2586 sq.ft. Craftsman-style home is situated on a 1/2 acre lot on a small private cul-de-sac with 5 other custom homes. Call (360) 440-4758 for more details or to arrange a private showing!

For additional information and resources concerning real estate and living in Kitsap County, Washington, access my comprehensive website, www.KitsapLife.com.

another quality consumer article by Sparky

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Posted in Bainbridge Island Real Estate, Bremerton WA Real Estate, Buyers, Gig Harbor Real Estate, Kitsap County Bites, Port Orchard Real Estate, Poulsbo Real Estate, Real Estate Bites, Sellers, Silverdale WA Real Estate | 3 Comments »

In many regions across the country, the housing market has been cooling off. Inventories are up, prices are coming down. Basic supply and demand stuff, right?

Well, as is typical amidst such conditions, real estate buyers tend to become increasingly more bold and brazen. Many property sellers are desperate to sell, and real estate buyers are only too happy to accomodate them with an equally desperate offer.

Now there’s nothing inherently wrong with a low offer. Everyone wants to feel like they got a good deal. It’s the American way! I always tell my Sellers that a low offer is better than no offer, regardless of how ridiculous and laughable it may be. It takes time and energy to draft a contract offer. Every offer should be considered as serious and worthy of consideration. If nothing else, it may simply be the starting point for further negotiations.

However, as a Buyer, there are several key priniciples/strategies to writing a successful low offer.

1. The first key is to offer an amount that doesn’t overly insult the Property Sellers, and yet still warrants their response. Your real estate agent should be able to offer you guidance with this. Consider the following questions:

• How long has the property been on the market?
• Have there been any previous offers?
• Have there been any price reductions?
• What are comparable properties in the area currently selling for?

2. The second key ingredient is to strengthen all other elements of your offer. There are many times when other aspects of the offer are nearly as important to the Sellers as price. What accomodations/exceptions can you provide to make your offer more attractive? Consider the following:

• Increase your Earnest Money Deposit amount. The more cash you are willing to provide as Earnest, the more serious your offer will be taken.
• Do the Sellers have a preference for a closing date? Do they want a quick closing, extended closing, or rent-back?
• Write your offer as clean and straight-forward as possible. Keep the amount of contingencies to a minimum.
• Make sure to enclose your Lender’s loan pre-approval letter along with your offer.
• Do the Sellers or Listing Agent have a preference regarding where to direct title & escrow?

3. The last key is to convey a positive upbeat attitude towards the Sellers and their Listing Agent. You’re behind the 8-ball to begin with by offering the Sellers less than what they’re asking. You don’t need to pour salt in the wound by telling them what a ‘dump’ their home is, and then rattling off a exhaustive laundry list of how much work it needs.

You rarely know what a Real Estate Seller’s motivation or bottom-line price may be, but by incorporating some of these suggestions, you’ll definitely come closer to achieving a mutual agreement.

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Posted in Bainbridge Island Real Estate, Bremerton WA Real Estate, Buyers, Gig Harbor Real Estate, Kitsap County Bites, Port Orchard Real Estate, Poulsbo Real Estate, Real Estate Bites, Sellers, Silverdale WA Real Estate | 4 Comments »