Dan O'Donnell's Blog

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.