Dan O'Donnell's Blog

 

 

Dear Friends,         The term "short sale" is getting thrown around a lot lately and it seems to be the trendy thing to discuss these days regarding real estate.  However, many people still don't really understand what the term means.  If you are one of these people, here is a link to a brief video describing the basics of a short sale.  And if you want more details, check out the Wikipedia entry.        Ok, so now that we all know what a short sale is, let me tell you a couple additional things to consider when deciding whether to get involved in a short sale.        For the Seller:  You'll want to work with an experienced Realtor who is familiar with the short sale process (not every Realtor knows short sales), and can help guide you through to closing.  Remember, in a short sale, the lender will not allow the seller to make money at closing, because the lender is losing money.  So there is no money coming to you either way, and a good Realtor can help simplify the process for you and increase your chances of success.  Also, you can sell personal property such as appliances, riding lawnmower, to try to put a little money in your pocket.  Lastly, the process generally takes at least a couple months after you've found a buyer, so you are likely to have a free place to stay for several months.        For the Buyer:  Some good deals can be had in a short sale purchase.  However, the price depends on several factors; the motivation level of the lender to sell quickly, and also the lender's opinion of the property's value are both crucial.  Some properties sell at significant discounts, but many are sold within 5-15% of market value, and I've even seen cases where lenders will try to demand an sales price well ABOVE market value!  If you are looking to buy and be in a home quickly, I would not recommend pursuing a short sale.  First of all, there is no guarantee the sale will be approved by the lender at a reasonable price.  And there is no telling how long it will take, especially if the lender is overwhelmed with foreclosures, as many are these days.        I hope this gives you a decent understanding of short sales.  There is certainly more to it than that, and if you have other specific questions, please feel free to call anytime, I'm happy to discuss it with you.         Don't forget interest rates are still right around 5% on a 30 year fixed mortgage, which won't last forever.  It's a great time to buy a home or a rental, so give me a call if you'd like to see what's out there.  I can run a custom search and email you properties meeting your specific criteria.    Thanks for reading, and please call any time if you'd like to talk real estate or even if you just need the number of a good handyman etc.   Sincerely, Dan O'Donnell  P.S.  The majority of my clients come by referral.  My valued clients refer their friends, family and coworkers to me for local real estate advice, and to help with relocation to areas outside Washington.  I am committed to building trusting, lasting relationships, one person at a time.  Who is the next person you know who is considering purchasing or selling real estate?  I'd be happy to talk with them and see how I can help.   Dan O'Donnell, 360-220-7157 www.HelpInWhatcom.com RE/MAX Whatcom County, Inc.

Dear Friends,    By now you know that I don't buy into the doom and gloom you see on the national news.  Just because some areas of the country have foreclosure rates skyrocketing and prices falling like a rock, does nothing to help you understand your LOCAL market. What you do need is to get real and relevant information about the area where you own property, or are thinking of buying.  

You see, real estate is a LOCAL business.  Sure, things like lumber prices and interest rates can affect the entire country, but they are far outweighed by local population and employment growth, just as one example.   

Another factor in Whatcom County is that we are a desireable destination for recreation and retirement, which will most likely help us outperform many parts of the country for the forseeable future.   Look, real estate is a cyclical business.  It has ups and downs, and we are in a "down".  However, just as Whatcom County appreciated faster than the national average during our recent "up", more importantly, we fell less in the "down".  So yes, we're down a bit (about 5% in the last year in Bellingham), but we're looking better than most areas, and we're still up over 100% from 2000 to 2008, ($146,500 to $297,500 Bellingham median prices).  

Ok great, you say, another optimistic, pie-in-the-sky story from a local Realtor claiming that his crysal ball says our area is special.  No.  I can back it up.   Check out this recent article from the Seattle Times with statistics for our local market.  Believe me now?   Don't forget interest rates are still around 5% on a 30 year fixed mortgage, which won't last forever.  It's a great time to buy a home or a rental, so get in touch if you'd like to see what's out there.  I can run a custom search and email you properties meeting your specific criteria.

   
Thanks for reading, and please call any time if you'd like to talk real estate or even if you just need the number of a good handyman etc.  

Sincerely,

Dan O'Donnell, REALTOR  

P.S.  Honesty and service are the foundation of my business.  And the highest compliment I can receive is a referral to help your friends, family, or coworkers with their real estate needs.  Whether they are in Washington State, or anywhere else, I can help get them moving in the right direction.  You have my word they will get great service.  Thank you.

 

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

 

Dear Friends,

  I want to let you know that it is a GREAT TIME TO BUY REAL ESTATE!  Interest rates for 30 year loans are right around 5%, and there are 23 HOMES IN BELLINGHAM AT OR BELOW $200,000!

    Have you been considering buying a rental property or two to help you retire wealthy?  Now is the best opportunity I've seen to do so.  Being "countercyclical" and not following the herd is the key to buying right in real estate.  As Warren Buffett puts it, "When others are greedy, be fearful.  When others are fearful, be greedy".

    Well, guess what?  Others are fearful, and it's time to be greedy.  Think about where your grandparents would be if they had bought just one or two rental properties in the 1960's or 70's and now owned the property free and clear!

   I have plenty of experience with owning and managing rental property myself, and I can help you with everything from locating a property, to finding financing and setting up managment of your investment.  

  Honesty and service are the foundation of my business.  And the highest compliment I can receive is the opportunity to help your friends, family, or coworkers with their real estate needs.  Whether they are in Washington State, or anywhere else, I can help get them moving in the right direction.  And the sooner we talk, the better they can prepare for the process of buying and/or selling. 

So give me a call and put my experience to work for you!  

 

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

 

 

Watch the video

Learn the real costs for selling your house and be prepared for what you will actually "put in your pocket".  This information is specific in some ways to Bellingham and Whatcom County, Washington, but much of the information applies to many areas. 

Feel free to contact me any time if you have further questions, thank you,

 

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

 

 

 Get the facts

Tired of relying on "experts" to tell you whether the market is "good" or "bad".  Below are the numbers straight from the Northwest Multiple Listing Service.  This is all Whatcom County single family homes listed and sold throught the MLS (the multiple listing system real estate agents use).

So look for yourself, the numbers don't lie.  If you'd like specific data on any area in Washington State, or condo's, Bellingham, Birch Bay, new construction, homes less than 1,000 square feet, etc., just let me know.  I have all of it at my finger tips and I'm happy to share. 

Any real estate needs at all, call any time, thanks,

 

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

 

Date	7/07	8/07	9/07	10/07	11/07	12/07	1/08	2/08	3/08	4/08	5/08	6/08	7/08	8/08	9/08
For Sale	1924	1984	1933	1797	1534	1417	1305	1481	1531	1666	1785	1789	1878	1870	1742
Sold	288	312	211	218	155	158	129	164	176	180	179	195	227	193	176
Pended	278	252	193	207	162	124	171	186	179	199	200	214	254	198	185
Months of Inventory based on Closed Sales	6.7	6.4	9.2	8.2	9.9	9.0	10.1	9.0	8.7	9.3	10.0	9.2	8.3	9.7	9.9
Months of Inventory based on Pended Sales	6.9	7.9	10.0	8.7	9.5	11.4	7.6	8.0	8.6	8.4	8.9	8.4	7.4	9.4	9.4
Avg. Active Price	427	424	423	424	431	433	435	436	437	439	445	456	450	449	452
Avg. Sld Price	344	334	336	322	347	327	320	327	315	320	301	349	311	346	306
Avg. Sq. Ft. Price	186	172	182	184	178	179	172	177	164	172	168	182	171	184	167
Sold/List Diff. %	98	98	97	98	96	96	95	97	97	97	98	97	97	96	95
Sold/Orig LP Diff. %	95	95	94	94	92	92	92	94	94	94	95	94	93	91	89
Days on Market	98	91	109	99	108	97	104	111	112	107	115	89	103	85	105
Avg CDOM	108	103	120	126	132	125	134	145	162	122	129	110	138	114	129
Median Price	290	290	301	285	300	288	270	286	285	280	264	294	275	280	270

*All reports are published Oct. 2008, based on data available at the end of Sep. 2008. This representation is based in whole or in part on data supplied by the NWMLS. Neither the Board or its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its MLS may not reflect all real estate activity in the market. Report reflects activity by all brokers participated in the MLS.

 

 

Whatcom County for sale, sold, pended single family homes

 

 

 

 Average price per square foot, Whatcom County single family homes

 

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

 

 

"Short sales" are more and more common in Bellingham, Whatcom County and across the nation.  I am working on several right now in the Bellingham area, and I'm sure many of you have seen the term and wondered what "short sale" means exactly.  Whatcom County foreclosures are up sharply and it pays to get informed.  This video should give you a good idea of the basics, and if you have any other questions feel free to give me a call or an email. 

Dan O'Donnell
http://www.helpinwhatcom.com
360-671-2561

 

 

 

Late summer sales down in beautiful Bellingham

 

August was an especicially slow month for Whatcom County home sales.  The number of single family home transactions in August was down 40% from August of 2007, according to a recent Bellingham Herald article.  Another Herald article tells us that 71 forclosures were filed in Whatcom County in August, up from 54 in July.  

On a positive note, the national average interest rate on a 30 year mortgage is at a very attractive 5.73%, according to Bankrate.com.  

The slow sales numbers of course are a concern to sellers, but they are great news for buyers. The slow sales and low interest rates make it a great time to buy in Whatcom County.  For those willing to look past the doom and gloom hype of the media, this slow market is a great opportunity to find a home or property at a great value.  These market slowdowns have happened before and do not last forever.  We are just in a natural part of the real estate cycle, and it is a great opportunity to invest in local real estate.  

In conclusion, I believe the Bellingham area will continue to outperform most other parts of the nation for reasons that will not change.  Our location between the mountains and the islands continues to draw people from every part of the country.  Not to mention our easy access to Seattle and Vancouver, without the traffic and noise of a large urban area.   

I think this is a bump in the road, and 20-30 years from now everyone will be laughing about how low the prices were in the 2000's, just like we now laugh about $14,000 Bellingham homes in the 1970's. 

If you have any more specific questions about how this market affects you as a buyer or seller, please feel free to call or email me any time.  Thanks for reading.    Dan

 

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

 

 

 

If it's been a while since you've sold a house, or if it's your first time, you're probably wondering how much you will pay in selling costs.  Also, if you're like me, you want a ballpark number you can use, not two pages of fine print that will leave you more confused than when you started.

The ballpark number I use in Whatcom County, Washington is 8.5% of selling price.  That would typically include 6% to the Realtors (which pays both listing agent and buyers agent), and the other 2.5% includes excise tax (currently 1.78% in Whatcom County) title insurance, escrow fee, and various small recording fees etc.

These fees are paid at closing, and are not due unless a successful sale takes place.

Keep in mind that each state and county around the country differ.  For example, some do not have excise tax, and others may require a survey or other items my area does not require.  Talk with your Realtor or an escrow office to find out what is typical in your area.

The biggies are..

Real estate commissions to your broker: this can differ depending on price range, area etc.  6% is very typical. Vacant land for example is usually 8-10% in my area, and some brokers will be willing to negotiate some on the commission.  Keep in mind that in most cases the commission is split between the "buyer's agent" and the "listing agent".  For most cases, 6% is a safe bet.

Excise Tax:  Paid at closing, 1.78% of the purchase price in Bellingham and Whatcom County, WA.

Title Insurance:  You can call your local title insurance office and tell them your expected sales price and they will give you a quote.

Escrow Fee, and miscellaneous recording fees etc:  Most title insurance companies do escrow as well, so ask for an escrow quote as well as title insurance.  They should also be able to estimate fairly close on the other smaller fees for you.

I hope this helps, and feel free to call or email with any questions,

 

 

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

 

 

I grew up on Gooseberry Point and have many fond memories.  From crabbing with a stick and up to my waist in the saltwater when I was little, to riding my dirt bike on the ferry to Lummi Island when I was fourteen.  It was a great place to grow up.  My friends and I ran around the neighborhood with the local dogs usually close behind (no leash law), blowing up firecrackers and riding our bikes off poorly constructed jumps.  If you've seen the movie Sandlot, you get the idea.

It's a beautiful stretch of Beach, with Lummi Island to the west and many spectacular sunsets.  Gooseberry Point is one of the best kept secrets in Whatcom County.  It is located on the Lummi Indian Reservation, but you do not have to be a tribal member to live or own land there.  The Ferndale School district serves the neighborhood.

Gooseberry Point, you can see the Whatcom Chief ferry approaching the dock

 

The price of real estate is quite affordable compared to Bellingham proper and other nearby towns such as Ferndale, and dirt cheap compared to other beach communities in Whatcom County.  It's about a 15 minute drive to Bellingham and a bit closer to Ferndale.  Also, you can easily walk aboard the "Whatcom Chief" ferry for the five minute ride to Lummi Island, which has gorgeous beaches and views both east toward Bellingham and west to the rest of the San Juan Islands.

 

Saltwater waterfront home on Gooseberry Point, WA

The Whatcom Chief ferry to Lummi Island

 

So go visit sometime and see for yourself.  If you have any questions don't hesitate to call.  Thanks for reading,

 

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

 

 

 

 

Bellingham Real Estate Investor Network

Mission: "To educate and inspire real estate investors to ethically achieve success"

Last night was another great meeting for the Bellingham Real Estate Investor Network (BREIN).  Al Schweitzer taught us about collecting on judgements, screening potential business partners, and locating distressed property.  It was another good turnout with lots of great networking, and several new members joining the group.

BREIN now has well over one hundred members and holds monthly meetings, featuring national and local speakers on various topics.  Members include investors, brokers, lawyers, contractors, appraisers etc.  Everyone is welcome.

Timely real estate investing information as well as local Bellingham and Whatcom County information is offered, and members can learn from one another and even buy and sell property at the meetings.   

The next meeting is Wednesday, September 24th at 6pm, all are welcome.  Details are on the website.

 

July 2008 Meeting

 

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

  

 

The majority of my clients come by referral. This means I can spend my time providing excellent personalized service for my clients. As a result, my valued clients refer their friends, family and coworkers to me for real estate advice. I am committed to building strong, lasting relationships, one person at a time. Who is the next person you know who is considering purchasing or selling real estate?