Home selling Archives - Page 2 of 3

We can help you navigate the home selling process

Here you will find the main steps in the home selling process with detailed topics outlined to provide you with additional information on each step. If you prefer, we are happy to meet with you and go over each and every step in the process in person. Just contact us.

Selling your home is a very important event. If you’ve decided to sell, then you no doubt have some specific goals in mind. Those goals may be different for each seller, however, the process of selling your home is similar. That process, while straightforward, is not necessarily easy and can be frustrating at times. Become familiar with the process of selling your home and you may even enjoy it as you see your goals being met.

If you are involved in a short sale, pre-foreclosure or other other type of sale you may want to check our topics on those subjects.

The following are the steps in selling your home:

Form your real estate sales team: You will need help when selling your home. That does not necessarily mean the help of a real estate agent. At a minimum, you should consult a real estate attorney. You will also want to talk to a title company, an escrow company and other service providers to help you with the various steps. Other service provides can include, along with a real estate agent: a handyman to perform repairs, a photographer to take pictures and a print designer to help create flyers.

Prepare your home for sale: Most people have a goal of maximizing the price for their home while at the same time minimizing the time it takes to sell. The most important factor in this step of the process is pricing. A close second is making sure your home is aesthetically pleasing to potential buyers. Exactly how to prepare your home will vary depending on your home’s style, neighborhood and direct competition.

Price your home to meet your goals: Correctly pricing your home is the most important thing you can do to ensure that it will sell. It is even more important when the goal includes selling it quickly. In order to correctly price your home, you must understand how it compares to similar homes which have sold in your market recently and the price for competing properties in your market. You also need to understand other market factors that have a direct affect on your pricing.

Market your home to get offers: To sell your home you need to get offers. To get offers, you need to market your home. Preferably, you will market your home to the widest audience possible. More importantly, you need to market your property to the correct audience.

Review and negotiate offers: Assuming you have prepared and priced your home correctly and you’ve done a good job of marketing, you will receive offers. When you receive offers it is important to review the details. You will also want to negotiate any offers to ensure that you are getting the best possible terms, and that you are meeting your goals.

Follow up on buyer due diligence: Once you have accepted an offer, the work doesn’t end. The buyer will typically have several contingencies. You need to follow up with the buyer during the due diligence process. They will likely need to inspect the property and have an appraisal performed. They also need to complete their loan paperwork so that the transaction can close on time. Review the contract and list all the important dates on a calendar so you know if these buyer due diligence tasks are falling behind.

Get ready to move: While the buyer is getting ready to move in, you’ll need to get ready to move out. You will need to make sure you have a new place to live and make sure to pack all of your belongings. And, as a seller, you will need to keep your property maintained in the same state as when the buyer put in their offer.

Close the sale: The closing process is much easier for sellers than for buyers. For one thing, you have far less paperwork to sign. You will want to review the HUD closing statement to make sure you are paying your fair share, and only your fair share, of closing costs. You will need to provide the escrow agent with your lenders’ contact information so they will receive proper instructions for paying off any loans. The escrow agent will need to know how you wish to be paid (check or wire transfer to your bank).

NWMLS residential market update for April 2015

Pent-up demand triggering record pace of home sales around Western Washington

The Northwest MLS (NWMLS) released a market update summary and statistics for March of 2015 earlier this week. Here is a quick excerpt from the report:

Northwest Multiple Listing Service members notched a record high level of pending sales during April, surpassing the year-ago volume by nearly 1,800 transactions. Both closed sales and prices also surged last month as the spring market kicked into high gear.

Here is a link to the full news release:

April NWMLS news release

And, here is a link to marketing statistics for March, including more detailed reports for King and Snohomish counties:

NWMLS April 2015 Statistics

Its a new year, time to check your credit report

The new year is a great time to check your credit report if you haven’t done so recently. And, there are now more free ways to track your credit than ever.

Government mandated website for requesting your credit report

The first way to check your credit report is one we’ve recommended for a long time. Simply go to AnnualCreditReport.com. This is the website the federal government required the credit reporting agencies set up so you could get a copy of your credit report from each company, once a year, for free. Its still the only way I know to get a copy for free, from all 3 agencies. Simply fill out the request form and get a copy. Since you get reports from all 3, you could choose to spread the requests throughout the year, so that you see how things change over time.

My experience, though, is that one or two agencies will have more complete information on you than others… and this can vary by part of the county you are in. For me, Experian has the most complete info.

What’s the difference between AnnualCreditReport.com and CreditKarma.com?

I learned about CreditKarma.com from TechCrunch. Credit Karma will provide you a copy of your Fair Isaac (FICO) credit score and copies of your credit report from TransUnion and Equifax (but not Experian). Those are the two main differences in information… the Annual Credit Report site does not provide your credit score (though you can order it), and it does provide your Experian Credit report.

Why does Credit Karma provide this information for free? (Or, rather, how does it make money from providing this information?) It uses the information it gathers from the credit reports, which you gave it permission to do, in order to present you offers for financial services you might need, and then gets paid if you buy those services. In theory it doesn’t sell your information to anyone. Most importantly, it doesn’t charge you directly for either the score or credit reports.

Both sites provide information about challenging incorrect information.

No matter where you go, be sure to check your report regularly. This will help prevent identity theft, incorrect information, and also let you know where you are having problems like missed payments. Make a point of doing it today!

NWMLS releases year end summary for 2014

The Northwest MLS has released its annual summary for 2014. Here is a quick excerpt:

Despite tight inventory, Northwest MLS brokers complete more than 77,000 sales valued at nearly $28 billion during 2014

KIRKLAND, Wash. (Jan. 22, 2015) – Members of Northwest Multiple Listing Service reported 77,276 closed sales during 2014 to outgain the prior year’s volume by 1,759 transactions for a 2.3 percent increase.

Measured by dollars, last year’s sales of single family homes and condominiums were valued at nearly $28 billion. Compared to 2013, that dollar volume represents a 9.4 percent gain.

The sales activity reflects the work of more than 22,000 brokers across 21 counties in the member-owned Northwest MLS.

Last year’s completed sales included 66,716 single family homes (about 86 percent of the total) and 10,560 condominiums. The total units and dollar volume are the best since 2007 when members registered 82,197 sales valued at $32.3 billion.

To read the full summary release, go here..

NWMLS releases year-end results for 2013

The Northwest MLS (NWMLS – http://www.nwmls.com) released year end results for 2013 recently. The NWMLS is the local residential MLS and sales are primarily single family homes and condos.

It should come as no surprise the 2013 handily beat 2012 for sales, both in number of closed transaction and dollar amount. There were 11,000+ closed transactions (a 17% increase) valued at 25.5 Billion dollars (a greater than 24% increase) You can find the full news release and numbers on the NWMLS website: http://www.northwestmls.com/index.cfm?/News–Information

A quick overview of common real estate agency scenarios

Agency and dual agency are incredibly challenging issues in real estate. They are, I think, very hard to explain clearly. More importantly, they are areas that can be hard for some brokers to handle ethically and legally, especially when you are talking about dual agency. This can be true for the most honest and ethical broker, simply because we are human. I make it a point to discuss agency with potential clients. Its an important part of the job. This post is an attempt to put some of those explanations in writing so I can point clients at the scenarios later.

Before we go further, here is a link to the Washington State “Law of Real Estate Agency” pamphlet on the Tellus Real Estate website. We provide a link directly from our website where it is easy to get to, so clients and agents can quickly refer to it. This pamphlet spells out the legal obligations of brokers and managing (or designated) brokers when it comes to agency. It goes to great length to define certain concepts such as “material facts” that all buyers, seller, landlords, and tenants should understand.

There is a fairly straightforward set of possible agency relationships in a real estate transaction. They are:

Neither buyer nor seller has an agent
Both buyer and seller have agents with separate companies
Seller with an agent and buyer without an agent
Buyer with an agent and seller without an agent
Buyer and seller with separate agents within the same brokerage
Buyer and seller with the same agent

Let’s look at what each of these looks like:

Neither buyer nor seller has an agent

No real estate agents On the surface, this seems easy and the obvious scenario is one where a person selling a house ‘for sale by owner’ (FSBO) finds a buyer. No real estate agent is involved, so there is no agency relationship. But, we’ve also seen cases where a FSBO owner or buyer asks a real estate agent to handle paperwork for a fee, without creating an agency relationship. The challenge here is that the agent will likely, at some point in the transaction, offer advice to either the seller or buyer, thereby creating an agency relationship without meaning to do so. As the owner of a real estate brokerage, I see this as a recipe for law suits, and since ultimately it is my responsibility, I don’t want my brokers doing this. If a FSBO buyer and seller needs help with paperwork, they can contact an escrow company or an attorney to guide them through the process.

Both buyer and seller have agents from separate companies

This is the clearest case of NOT having dual agency. In order to understand why, it is important to understand who the agents are. In real estate brokerage, there are several entities (roles) at the real estate company that represent you when you are the buyer or seller. The same person might fill all the roles, or each role might be filled by a separate person. The roles are:

Buyer or seller’s broker/agent – This is the person who you work with directly as the buyer or seller
Managing broker – This is the person who directly supervises your broker. They must have a special license and they are legally responsible for the actions of your individual broker.
Designated broker – this is the person who is responsible for the actions of the entire real estate company and all the managing brokers and individual brokers in the company. For all intents and purposes, they are the company. If you sign a listing contract or a buyer representation agreement, you are actually making a contract with the company and this person. That contract allows them to assign someone (the broker mentioned above) as their representative when working with you.

You will notice I didn’t use the word “agent” here. The State of Washington has updated the terminology when referring to brokers and agents in order to make things more clear. Any of the people serving in the roles above can be an “agent” (can owe you an agency obligation as defined in that pamphlet we mentioned earlier). It is also possible for them to be other peoples’ agents or to be dual agents.

So, back to this scenario. In the scenario where the brokers working with the buyer and seller are each from different brokerage companies, then everyone in the roles I mentioned is an agent for only 1 person, either the buyer or the seller.

This is nice and clear, and much less likely to cause a lawsuit than any other scenario. And, in most cases, unless you are working with a large brokerage company with many brokers, this will the scenario you are most likely to encounter as a buyer or seller, assuming you are working with a broker.

Seller with an agent and buyer with no agent

So, when would we see this? The easiest scenario to imagine is where a seller has listed their property with a brokerage and the broker assigned is their agent. That broker holds an open house and a potential buyer comes into the house, and does not have their own real estate broker working with them. The buyer says, “I want to buy this house.” After confirming the buyer does not have an agent, the seller’s broker (the listing broker) should first make sure the buyer understands that they, the broker, represent the seller, and give the buyer a copy of the Law of Real Estate Agency Pamphlet. This is required, legally. If the buyer wants to go ahead with the offer, then the broker would fill out the offer paperwork.

This scenario may not be a problem if the buyer is fairly sophisticated and really understands what is going on. But, many buyers in this situation really don’t understand. That broker is the seller’s agent and is not required to look out for the buyer’s best interests. They are not supposed to lie, but they are not required to protect the buyer from their own mistakes. For example, if the buyer does not ask for an inspection contingency when describing the offer, then the broker, who is the seller’s agent, would probably not mention that fact to them (depending on if they felt it was in the seller’s best interest to have the buyer inspect or not).

Another problem I see, from the brokerage owner perspective, is that it may be hard for the broker/agent to avoid ‘helping’ the buyer, even though they don’t legally represent them.

Buyer with an agent, and seller with no agent

This is a lot more common than the previous scenario. The classic form it takes is the For Sale by Owner (FSBO) property where the seller is willing to pay the broker bringing a buyer a commission. While more common than the previous situation, it has many of the same challenges. The broker, who legally represents the buyer, should not be giving the seller advice on how to get more money or in how to negotiate the deal. For example, if seller doesn’t ask for earnest money (or asks for less than typical in the market), the buyer’s agent would be unlikely to offer up that fact to them, since it hurts their buyer client by putting more of their money at risk.

I think there is also a challenge here because of who is paying the money. The seller may feel later than the broker was supposed to advise them about how to proceed since they were paying them.

Buyer and seller with separate agents within the same brokerage

This is probably the second most common scenario. If you work with a large real estate brokerage with many offices (which may or may not be one of the national or regional franchises like CENTURY 21, Windermere, John L Scott, Coldwell Banker, etc.), there is a decent chance that if you are the seller, the buyer may be represented by a broker from the same company as your listing agent. Or, if you are the buyer, you may end up putting an offer in on a home listed by someone else in that company.

In this scenario, the individual brokers representing the buyer and seller are each single agents, just as if they worked for separate companies. However, as you work up the management and ownership chain in the business, someone will become a dual agent. If both of those individual brokers are supervised by the same managing broker, the managing broker will be a dual agent. If all else fails, the designated broker that runs the company, will be a dual agent.

Generally, this is no more a problem than it is when the individual brokers work for different companies. Typically, the designated broker’s involvement in the transaction is to review paperwork to make sure that company policies and various legal requirements are met. They do not have a direct stake in the transaction.

However, because the company will typically stand to make more money if both the buyer’s side and seller’s side of the commission stay with the company, there may be more pressure to keep the transaction going when there are problems. For example, what if the buyer is having second thoughts after the inspection. They are wondering if they should really by the home. Their agent goes to his or her managing broker, or the designated broker, for advice. That designated broker is a dual agent. They have the challenge of fairly and legally representing the needs of both the buyer and seller. They also stand to make more money, which might have an unintended (and even unrealized) influence on their thinking.

As both the designated broker and an individual broker directly involved in deals, I’ve been a dual agent many times. It is tough. I make a point of reminding my clients about the possible conflicts of interest, especially when it’s a tough call. I let them know up front that it’s possible that the money I stand to make on that transaction could affect my thinking. I also remind them, myself, and any broker working for me, that if I do make a point of being honest, that I’ll make up the money later if I don’t make the money now.

Buyer and seller with the same agent

There was a time when all real estate brokers in Washington State represented the seller by default. As you can imagine, that caused a lot of confusion for buyers who sure felt they were being represented by their broker. Today, the law has changed and it is basically the opposite. All brokers are assumed to represent the buyer unless they have a signed contract with the seller. That makes things more clear.

Now, when the buyer and seller have the same broker representing them, we have a clear case of dual agency. Everyone in the chain of command for that broker is also a dual agent. Happily this is typically the least frequent scenario for most brokers. Some brokers specifically avoid it by saying they will represent only the seller or only the buyer in any transaction. This is great! It’s the easiest and safest way to avoid lawsuits and make sure you are not hurting your clients. Why? Because of all the same issues mentioned when the brokerage acts as dual agent, only all the issues are intensified. If a managing broker or designated broker is a dual agent, they may not even get part of the commission (this depends on the specific arrangement with the brokers and brokerage). But, if you are the individual broker, unless you work on a salary, you get paid more if you represent both buyer and seller. Sometimes it is a LOT more. I know some brokers who charge very small commissions for listings, simply because they expect to make it up by representing buyers and they encourage the seller to pay the buyers’ agents well.

For me, it is really dependent on the clients and the situation on whether I would be willing to act as a dual agent. When listing properties, I ask the seller up front how they feel about it. In most cases, sellers expect me to go find buyers, so they think it silly that I would NOT act as a dual agent. In fact, they might be mad if I don’t, and it hurts getting their house sold.

With buyers, it largely depends on how I met them and what kinds of homes they are interested in. If I met them because they contacted me about a listing I represent, I need to have the conversation immediately. I always ask if they have a broker representing them, and if they do not, I then explain that I currently represent only the seller and if they would like me to represent them, I can but there are issues I need to explain. Admittedly, the conversation make happen over a period of emails, phone calls, etc. It doesn’t make sense to overload your potential clients with information too early. The most important thing to remember is to make it clear what is happening, before anyone starts making decisions. Washington State law requires that you make your agency relationship clear to anyone you are working with. There are no exceptions to that rule.

Ok. Hopefully I’ve explained the scenarios, and the challenges in each one. If you have more questions or comments, let me know.

Residential market statistics and market update from NWMLS for November 2013 no available

Statistical Summary by County of Market Activity Summary – November 2013

The NWMLS has released their monthly update for November 2013. Their latest news release shows that in general, the volume of sales is up (though in November it was down slightly in King County, compared to a year ago). According to the statistics, there is still a shortage of properties for sale in King and Snohomish counties. There is less than 2 months’ supply in King, and just over 2 months supply in Snohomish county.

Compare that to the situation for our friends and clients in Kittitas county, where there is more than a 6 months’ supply of homes for sale, which helps explain continued soft prices there.

NWMLS Pending Sales Trends Table for Puget Sound

If you look at the chart of pending sales, you’ll see that things really peaked in Western Washington (not counting the Peninsula) in May. But, that is pretty typical for any year. With interest rates expected to rise, it will be interesting to see how the competition between continued increased demand and higher payments due to rates will affect prices and the number of sales.

Here is the full text of the NWMLS press release so you can see what various NWMLS directors/members have to say. Let us know what YOU[customblog postblock=”post-layout-term”] think.

Home sales “chugging along,” as recovery continues, but brokers expect prices, mortgage rates to rise in 2014

KIRKLAND, Wash. (Dec. 4, 2013) – Improving inventory, stabilizing prices, fewer short sales, and a healthy local economy are credited with keeping the real estate market “chugging along nicely” around western Washington, according to brokers with the Northwest Multiple Listing Service.
The latest figures from Northwest MLS show year-over-year gains in inventory (up 4.8 percent), pending sales (up nearly 1.6 percent), closed sales (up 5.3 percent) and median selling prices (up 4.86 percent).

Brokers reported 6,624 pending sales (mutually accepted offers) of single family homes and condominiums during November, improving on the year-ago total of 6,522 for a 1.56 percent increase.

Closed sales across the 21 counties in the report outgained the volume of a year ago by 283 transactions, rising from 5,333 completed sales to 5,616 for a gain of 5.3 percent.

The median selling price on last month’s closed sales increased 4.86 percent, from $258,500 to $271,061. The condominium portion of those sales had double-digit price gains, jumping 14.2 percent. In King County, where 60 percent of the condominium sales occurred, prices were up 17.4 percent, rising from $204,500 to $240,000. Snohomish County condo prices shot up 19.7 percent from twelve months ago.

For single family homes (excluding condominiums), the median sales price was $280,000 area-wide, up about 4.1 percent. King County’s volume of closings dipped slightly compared to a year ago (down 2.9 percent), but prices increased more than 7.5 percent. The median selling price for single family homes that sold last month in King County was $414,000; a year ago it was $385,000.

OB Jacobi, president of Windermere Real Estate, believes the slowing pace of home prices, “is “actually a good thing,” saying, “As we saw in years past, continual double-digit price appreciation leads to boom and bust cycles that none of us want to relive.”

Similarly, fewer distressed sales bode well for the market, according to Northwest MLS director Darin Stenvers. “The real estate industry is supported by reduced rates of short sales and foreclosures, thus returning almost all markets to a healthy position for consumers. Rising home values have helped sellers who wish to avoid the long drawn-out and painful short sale process,” stated Stenvers, the office managing broker at John L. Scott in Bellingham.

In most cases Stenvers said those sellers are able to repair their credit in a short time, and maybe even re-enter the marketplace with more affordable budgets. “Foreclosures and the percent of short sales have sent a clear message to buyers that the market is stable and they can feel confident in their investments,” Stenvers suggested.

MLS director John Deely agreed. With rising prices, the number of homeowners with negative equity continues to shrink, he noted, citing data from the Case Schiller index. “Many sellers do not realize they have gained back substantial equity and that we are close to the peak values of the Seattle market,” said Deely, the principal managing broker at Coldwell Banker Bain in Seattle.

Commenting on recent activity along with expectations of a holiday season slowdown, some brokers noted there are multiple and sometimes, unrealized advantages to buying and selling homes as the year winds down. “Waiting will not provide much benefit,” suggested Mike Gain, CEO and president of Berkshire Hathaway HomeServices Northwest Real Estate in Seattle.

MLS director Frank Wilson agreed. He believes it will be more expensive to buy a home during 2014. “Slow but steady price appreciation, upward pressure on interest rates and increased costs of getting a loan will all work to decrease the buyer’s purchasing power,” said Wilson, the branch managing broker and Kitsap District manager for John L. Scott in Poulsbo.
Deely attributes the threat of interest rate hikes with spurring some activity in the midst of the holidays. “In 2014 the big question is not if interest rates will rise but when. This concern appears to be encouraging buyers to continue their home search during this holiday season, defying the seasonal slowdown,” he observed.

MLS spokespeople also point to inventory shortages in some areas as another challenge for buyers.

“As we approach the holiday season when we typically experience the seasonal slowdown, the housing market is showing signs of stability and resilience,” said Gain, but added, “Even though November’s new listings were up 10.1 from a year ago, and pending sales were up 1.6 percent, the lack of inventory is holding sales down.”

Many Seattle neighborhoods are still experiencing high demand for listings, noted Gary O’Leyar, designated broker and co-owner of Prudential Signature Properties. “Although the pace of the in-city Seattle market has leveled off somewhat, we are still seeing many instances of multiple offers due to high demand in several of the most sought-after neighborhoods,” he commented.

Multiple listing service figures underscore O’Leyar’s report. Most of the MLS map areas comprising Seattle show only around 1.5 months of supply – well below the 4-to-6 months many industry analysts say indicates a “balanced” market.

Tight inventory is not limited to Seattle. “Once again, this year we will be heading into the New Year with shortages and low inventory of homes for sale in the price ranges where 90 percent of the sales activity is taking place,” said Lennox Scott, chairman and CEO of John L. Scott Real Estate.
Scott and others believe sellers who are thinking of selling could benefit by listing now instead of waiting for the expected ramp-up of activity in January. “Traditionally, the number of new listings coming on the market during the holidays declines at a higher rate than buyer demand, thereby making the buyers-to-new-listings ratio advantageous for sellers.”

Mike Gain agreed, referring to a checklist his company uses that outlines advantages of listing a home during the holiday season. Among the benefits it cites are “decked halls look great,” “only serious buyers are out,” and “the process will be quicker.”

“All in all, the real estate market is chugging along nicely thanks in part to the health of our local economy,” observed Jacobi. Rising interest rates are playing a part in motivating buyers as well, he added. It’s typical to see housing sales slow during this time of year because of the holidays, he acknowledged, but even so, he said “sales are still strong.”

Wilson said Kitsap County’s momentum is “slowing a bit,” but noted cumulative figures for the year show the volume of pending sales is up 14 percent. As for prices, he seemed satisfied with Kitsap’s modest increases compared to double-digit jumps elsewhere. “We are happy to let the Seattle market steal that limelight,” he declared, noting Kitsap’s affordability advantage as a result of the differences.
Looking ahead, brokers tend to agree positive momentum will continue, but hurdles such as unrealistic sellers, new loan regulations, and threats to purchasing power remain.

“The market is poised for another solid year in 2014, but buyers are “out of breath,” said Dick Beeson, noting attention is diverted to holidays and national uncertainties. “If we could just get buyers off fences and sellers’ expectations in line with 2013 pricing not 2005, we’d be just fine,” he quipped. Beeson, the principal managing broker at RE/MAX Professionals in Tacoma, also worries about “the poor job market” in many parts of the state that aren’t faring as well as Seattle. “Without a strong job market, housing sales eventually show down,” he noted.

New loan regulations are also troublesome, according to Beeson. “If anything will kill a good market, tightening the money supply will,” he emphasized.

Asked about his projections, Wilson said he thinks 2014 will be more of the same. “We are in a familiar cycle in which buyers in 2015 will be saying….I wish I would have bought a home back in 2013.”

O’Leyar has a similar outlook. “I think the ‘wild cards’ for the 2014 Greater Seattle real estate market will be the Federal Reserve’s policy decisions and stricter lending standards.” He believes both factors could shrink the number of buyers. He also expects a leveling off of price appreciation, but continued strong demand due to the robust nature of Puget Sound’s vibrant economy.

Stenvers expects 2014 will be another year of stabilization and recovery for home and condo sales around the Pacific Northwest, and points to upticks in new home construction and commercial leasing as positive signs for job creation.

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 21,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

Hey Mike! Guess what day it is! Nope, its not hump day!

Computing time lines in your real estate contract

With Thanksgiving coming up, its a good time to review the terms of local real estate contracts as they relate to dates… at least those pre-packaged purchase and sales contracts provided by the Northwest MLS or the Commercial Brokers’ Association. Clients and even agents can be confused calculating due dates and deadlines. But, its actually not that hard.

You just need to know the following information:

Which days are considered holidays
Is the timeline 5 days or less, or more than 5 days?
The start date you are calculating from

What holidays count for real estate contracts?

Check the official holidays in your state (http://dor.wa.gov/content/contactus/localoffices/con_hldy.aspx) and the federal holidays (http://www.opm.gov/policy-data-oversight/snow-dismissal-procedures/federal-holidays/#url=2013). The combined list counts. Washington state’s holidays are pretty much the same as the federal ones, but we also have an extra day for Thanksgiving.

Why does it matter if the timeline is 5 days or 6 days?

In the local CBA and NWMLS contracts, if a timeline is set to be 5 days or less, then the timeline does not count weekends or holidays. So, if you are calculating from Monday, and the timeframe is 5 days, then it ends on the following Monday (from this Monday, count days… Tuesday is 1, Wednesday is 2, Thursday is 3, Friday is 4, don’t count the weekend, so Monday is 5). If Monday is a holiday, the day 5 is Tuesday.

Or, to put it in context of Thanksgiving. If you get ‘signed around’ on Monday (the 25th), and you have a 5-day time limit to finish something, then your deadline ends on the Wednesday (the 4th), because we don’t count Thursday or Friday (holidays) or the weekend.

OK, what about time-frames longer than 5 days? Per the contracts, the timeline includes the weekend. Lets look at a 7 day period, because it causes something interesting to happen. If your time-frame starts on Monday, the 7 day period ends on Monday (just like the 5 day period did).

Lets calculate it: From Monday, count days… Tuesday is 1, Wednesday is 2, Thursday is 3, Friday is 4, Saturday is 5, Sunday is 6, and Monday is 7. So in this scenario, 5 days and 7 days are equal.

What happens with a holiday like Thanksgiving? In that case, if we start this Monday, the 25th, the end date is still next Monday, the 2nd, because we still count those days when the time period is more than 5 days. So, oddly enough, you actually have LESS time with a 7 day period than you would with 5 days!

What is my start date?

Most dates are calculated from “mutual acceptance”. As a general rule, mutual acceptance (MA) is defined as the day when everyone is in agreement and has signed the same version of the contract. Generally, this is the date of the last signature on the contract. (We can’t have agreement until everyone has signed.) Your timeline starts from that day, but does not count that day. So, if your Mutual Acceptance date is Monday the 25th, a 1-day timeline would end on Tuesday the 26th.

There are exceptions to the mutual acceptance definition, but those will be spelled out by your contract. The most common in recent years has been in the case of short sales, where the mutual acceptance date will often be defined (at least for some portions of the contract) as the day the seller accepts their lenders’ terms for approving the short sale.

Also, there are many timelines that start after some other occurrence… for example, deadlines for reviewing and approving the title report start once it has been received, if that option is chosen.

Are you still confused?

OK. We are used to these calculations. So, perhaps it is confusing for people who don’t deal with it all the time. If you have questions, just let us know and we’ll try and help. If you have an agent you are working with already, please ask them for help first, though.

October 2013 residential real estate statistics from NWMLS

box-margin-rt-5The Northwest MLS (NWMLS) has released statistics for October, 2013 last week. The short summary… the real estate market has put on the brakes. That seems clear. Now the question is “Why”? The possibilities include the effect of the government shutdown (undoubtedly part of it), typical seasonal slowdowns (starting slightly early), or below-normal inventories. I think the last is a bit of wishful thinking by brokers. I’ve been telling clients that there is a distinct possibility that the price recovery could stall, at least in the short run. Interest rates are holding fairly steady… but have still risen. Also, the economy still isn’t recovering as fast as people hope. Why do you think prices are not continuing to increase?

Here is the full news release:

Home sales “paused” during October but prices continued to rise, according to the latest statistics from Northwest Multiple Listing Service. Commenting on year-to-date totals for 2013 compared to 2012, one industry expert remarked, “I would say the real estate market is recovering nicely.”

KIRKLAND, Wash. (Nov. 5, 2013) – Home sales “paused” during October but prices continued to rise, according to the latest statistics from Northwest Multiple Listing Service. Commenting on year-to-date totals for 2013 compared to 2012, one industry expert remarked, “I would say the real estate market is recovering nicely.”

Pending sales during October dipped 2.7 percent when compared to the same month a year ago, but rose nearly 3.2 percent from September’s volume. October’s decline was the first negative change in year-over-year comparisons since April 2011. (That drop-off was attributed in part to a frenzy during April 2010 when buyers were scrambling to take advantage of a federal tax credit that was expiring.)

Brokers point to the federal shutdown during the first two weeks of October, below-normal inventory, and shaken consumer confidence as factors in the slowdown.

MLS figures summarizing last month’s activity across the 21 counties in its service area show year-over-year improvement in inventory (up 5.5 percent), double-digit increases in the volume of closed sales (up 12.5 percent), and moderate increases in selling prices (up 7.7 percent).

Mike Gain, president and CEO of Prudential Northwest Realty Associates, believes the market has taken a “slight pause,” but emphasized one month’s numbers don’t indicate a trend.

“We are two years into what has been a very steady recovery. It’s okay – and actually healthy – to have a slight slowdown,” he remarked. The government shutdown “definitely hurt consumer confidence” and put many would-be buyers on the sidelines, according to Gain.

Consumer confidence “deteriorated considerably” in October as a result of the shutdown and debt ceiling squabbles, according to The Conference Board. A recent Gallup poll found some improvement in Americans’ economic confidence, but reported it is still well below mid-September, before the shutdown.

Gain said despite improving inventory the limited supply of homes for sale is also hampering sales. “Numerous buyers are looking but just can’t find the right home to fit their needs,” he reported.

Northwest MLS brokers reported 8,086 pending sales during October, down from the year-ago total of 8,312 sales, but outgaining the number of mutually accepted offers in September by 247 transactions for a 3.2 percent increase. Eleven counties had fewer pending sales last month versus a year ago.

In King and Snohomish counties the “torrid pace” of home sales activity has eased to a “healthy/strong level,” observed J. Lennox Scott, chairman and CEO of John L. Scott Real Estate. He believes the housing market is transitioning from a recovery market to a sustainable mode.

Prices on sales that closed last month rose 7.7 percent ($19,375) from a year ago. Area-wide, the median price for single family homes and condominiums (combined) was $271,000.

Homes that sold in San Juan County last month fetched the highest median price at $384,000, up 17.2 percent from a year ago. King County prices were slightly lower at $380,000, about 11 percent more than the median price of a year ago.

For single family homes only (excluding condos), King County prices topped the list. The median price for last month’s completed sales was $426,000, or 15.1 percent higher than the year-ago selling price of $370,000. System-wide, the median price for single family homes (only) was $283,000, about 8.4 percent higher than twelve months ago when it was $261,050.

Gain said the increases reflect a healthy and stabilizing real estate market. “It is good to see the prices rising modestly, allowing the market to become more balanced,” he stated.

Northwest MLS director George Moorhead agreed, saying more moderate and balanced growth helps “mitigate huge home price fluctuations.” The slowdown is also reflected in the time it is taking listings to sell, he noted. “We are seeing inventory staying on the market longer, which will continue through the holiday season until late January to mid-February,” said Moorhead, the managing broker at Bentley Properties in Bothell.

More inventory is still needed to meet demand, suggested Dick Beeson, principal managing broker at RE/MAX Professionals in Tacoma and a past chairman of the Northwest MLS board of directors. In Pierce County, where his office is located, inventory is about even with year-ago levels, but 2,019 more sales have closed so far this year for a jump of 25.4 percent.

Statistical Summary by Counties: Market Activity Summary – October 2013

Three counties – King, Pierce and Snohomish – have less than three months of supply, well below the 4-to-6 month level that is generally considered to be an indicator of a balanced market.

“It still looks like a potential housing shortage in Puget Sound come 2015 if building doesn’t increase,” Beeson commented.

At least one segment of the new construction market shows signs of rebounding: condominiums.

“Most residential developers went into hibernation during the real estate bear market of the past five years, but this past month heralded a bullish resurgence of several developments,” said John Deely, a member of the Northwest MLS board of directors. Last month was like spring in the South Lake Union neighborhood, he reported.

Deely, the principal managing broker at Coldwell Banker Bain in Seattle, cited the opening of sales for a new 41-story condominium community and the restart of two other major residential developments as positive indicators. The projects include a high-rise residential development near the Space Needle and the restart of a hotel-condo building in the Denny Triangle area of downtown Seattle. “This is good news as the market is starving for new condominium inventory,” he stated.

Beeson also commented on upticks in condo activity. He said some condo developers who placed units in the rental pool during the 2008-2010 downturn are converting them back to for-sale housing and trying to sell them in today’s improved market. “The price points have still not returned to 2006-2007 levels but the chance to move some product now exists,” he commented.

MLS brokers added more than 1,000 new listings to condo inventory last month, a jump of 24.3 percent from a year ago. Total inventory is 9.1 percent higher than at this time last year. Closed sales during October jumped 15.3 percent, with prices rising about 5.3 percent.

4-county Puget Sound Region Pending Sales (SFH + Condo combined)

Condos that closed during October had a median price of $200,000. In King County, which accounted for about two-thirds of those sales, the median price was $234,000.

“The real estate market has been moving in the right direction,” observed Gain, adding, “It has been a huge improvement over the past several years.” To underscore his point, he noted pending sales year-to-date are up by nearly 6,000 units (at 5,994) for a 7.3 percent increase. YTD closed sales are already up 10,167 units from a year ago for an increase of almost 19 percent (18.8), and prices are up by $27,000 for an increase of 11.1 percent. “I would say the real estate market is recovering nicely,” he concluded.

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 21,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.

NWMLS market report for May 2013

The Northwest MLS (NWMLS) released, last week, the sale and listing statistics for this past May. As most folks know, the news is no suprise .

Competition among home buyers “still fierce;” rising interest rates adding to fury
NWMLS, Kirkland, WA, June 5, 2013 – Well-priced homes continue to draw multiple offers and sell at a brisk pace around Western Washington as buyers react to increases in interest rates and asking prices.Northwest Multiple Listing Service reported double-digit gains in several key indicators it tracks for the 21 counties in its service area. Compared to a year ago, the number of new listings climbed 16 percent, pending sales increased about 10 percent, closed sales jumped nearly 22 percent, and prices rose more than 13 percent. Despite gains in listing activity, inventory remains tight.

Here is the full press release: http://www.nwmls.com/discover/index.cfm?SectionGroupsID=1&SectionListsID=1&PageID=6261