Dan O'Donnell's Blog

Short sales, what are they?

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Mon, 23 Mar 2009 15:25:22 -0500

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.

Whatcom County, how do we compare?

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Tue, 24 Feb 2009 14:39:57 -0600

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.

Bellingham Real Estate Investors

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Thu, 28 Aug 2008 15:49:10 -0500

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?

Hot buys in Bellingham and Whatcom County!

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Tue, 09 Dec 2008 16:20:40 -0600

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.

Hot tip of the day, use your commission as a down payment

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Tue, 19 Aug 2008 00:07:06 -0500

Hot Tip of the Day

A friend of mine was once buying an investment property, a rooming house. He asked the bank if he could use his 3% commission as part of his down payment. They said "sure".

Being the clever guy that he is, he thought "I wonder if I was getting a 205 commission if I could use that as my 20% down payment?" He asked the bank, the bank said "no". So my friend said "how about 15%?" and the bank said "no". Next he said "how about a 10% commission used toward my downpayment?" and the bank said "hmm, well, ok fine."

So they raised the purchase price by 7% (the difference between the original 3% commission and the higher 10% commission), and my friend used his 10% commission as half of his 20% downpayment. Of course the property had to appraise at the new higher price. The funny thing about appraisals is they often tend to come in at the purchase price. Also, each bank will have it's own ideas on this concept, but it sure can't hurt to ask, and ask, and ask.

So there's an easy way for you agents out there to keep some more dough in your pocket when purchasing a property, one of the many perks to being both and agent and investor.

I hope this helps, let me know if you have any questions.

Dan O'Donnell, Bellingham, WA

How much does it REALLY cost to sell my house?

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Wed, 19 Nov 2008 19:11:28 -0600

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.

How to identify LP siding, and related issues

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Thu, 14 Aug 2008 01:55:16 -0500

Louisiana Pacific or "LP" siding is very common on homes from the 1990's and the product from around that time has had many problems. In Washington State, where I live, our wet environment saturates this product and is begins swell and warp. This can cause the siding to fail and need replacement, and possibly damage the structure beneath the siding by allowing moisture to enter. When the siding is swollen, you can usually see holes where the nail heads have sunken beneath the surface of the siding. This is one easy way to spot LP siding and indicates that damage has already occured.

However, some siding is fairly well sealed with paint and caulk and therefore the LP siding may be in relatively good condition. Also, nearer to the roof eves the siding is better protected from weather and can look pretty good to the untrained eye. This makes it easy to mistake LP for later, better products and assume that there is no need to worry. It is very useful to be able to identify LP siding and the general condition at a glance (before you pay a home inspector to look at it for you).

Below is a photo of the "signature knot" from the LP siding. It is only found every so often on the material, so don't just look at one board and say "no knot, must not be LP". Take a close look at a large section of siding to be sure.

Also, a full home inspection by an experienced home inspector with good references is usually a very good investment. In my area, an inspection will cost you in the neighborhood of $400, depending on the size of the house, and can often uncover many issues that you would not have discovered until they were more serious and more expensive to remedy.

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

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

Bellingham/Whatcom County Real Estate Market Statistics

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Sat, 18 Oct 2008 15:46:25 -0500

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.

Bellingham/Whatcom County real estate market, how to use the market to your advantage

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Wed, 13 Aug 2008 02:02:33 -0500

I would like to give you my opinion of our current market and what it means to you. First of all, the doom and gloom you're hearing on the news is largely referring to areas such as Las Vegas, parts of California and much of Florida. These markets are seeing corrections of prices that skyrocketed to unjustifiable highs. Easy access to mortgages and strong local economies had some of these markets posting 50-100% appreciation in one year periods. That is not sustainable!

In Bellingham and Whatcom County, we had a strong run also, and some parts of our market became overpriced. Duplexes are a good example of this. People were buying rental property that lost money each month because they were told if they didn't buy quickly they would miss out on huge profits. Does this sound anything like the stock market of ten years ago? "Who cares if Amazon.com doesn't make a profit, just buy it before it doubles again!" This is speculating, not investing, and leads to inflated prices.

However, single family home prices are a different story. Record low interest rates and easy access to mortgage loans encouraged renters in our local market to become homeowners. Others decided to sell their existing home and upgrade to a newer/larger/more expensive one. This obviously increased the demand for housing. With that new demand, prices rose sharply, in the ballpark of 10-20% per year for several years in a row. 2004, 2005, and 2006 had many of us feeling like real estate geniuses. Fast forward a few years and here we are. Less people are qualifying for mortgages. There is a general hesitation among buyers, whose emotions have swung from exuberant and frenzied to a more cautious stance. Much of that caution is encouraged by the media, the same folks who helped to create an irrational buying frenzy just a few years ago.

So now you are likely saying, "That's all very interesting Dan, but please get to the point." Here's my point. Now is a great time to buy. Interest rates are still quite good, 6 to 6.5% is typical. And there are some bargains to be had. I recently saw a Bellingham 1 bedroom house listed for $159,000 in a good neighborhood, and it took 25 days for them to get an acceptable offer! In 2005, I saw similar homes receive 10 offers, IN THE FIRST DAY! So if you're thinking of buying in the next 5 years, I would strongly encourage you to consider doing so now. This is an opportunity that historically comes around every 7 to 10 years, a great buyer's market. On top of that, recent legislation offers a hefty tax credit to first time home buyers.

So what about selling in this market? If you want to sell in the next two years, this summer is a good opportunity to sell before school starts up, the weather turns, and the presidential election could have any number of effects on the housing market. You can sell in this market, but you need an experienced agent and realistic pricing. Fancy websites and color flyers on the sign post are great, but buyers have time to shop around now, and you have to be competitively priced. You need to look at homes for sale similar to yours and try to see them from a buyer's perspective. It really is as simple as asking yourself, "If I was a buyer, which homes would I be interested in?" If after four to six weeks on the market you have not received any offers, it is time to revisit the price.

In conclusion, the market is what it is, we can't control it. The key is staying informed, and not letting your emotions control your actions. Many buyers, and sellers are getting good results right now, and you can be one of them.

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

Bellingham Real Estate Investor Network

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Wed, 13 Aug 2008 02:51:28 -0500

If you are a local Bellingham/Whatcom County real estate investor or plan to be, you need to get down to the next BREIN meeting. I'm a founding member and it's helped me make many profitable connections. It's a local, independant non-profit group whose mission is to "Educate and inspire investors to ethically acheive success".

Every good book about investing tells you to get down to the local investors group, and in Whatcom County, that's BREIN. Build relationships with local investors, appraisers, lawyers, builders, loan officers, inspectors, contractors, escrow officers, etc, they're all here. Monthly meetings with education and networking. Also, the Network has negotiated significant discounts for members at Hardware Sales, Office Max, Louis Glass, SOS Office Solutions, and Sherwin Williams Paint.

See www.breinonline.org for details.

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

Local Whatcom County Information, Bellingham/Whatcom County top websites

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Wed, 13 Aug 2008 03:14:25 -0500

A great site giving an overview of the county is www.Kulshan.com , with reviews of parks, directions to hiking trips.

Another excellent site is www.Bellingham.org , with tons of information and links to every aspect of life in Whatcom County. You could spend a week on these two sites learning all about our area. I've lived here all my life and I always get ideas on things to do when I browse through these sights. It reminds me what a wonderful place this is.

Last, but not least, Wikipedia is a great place to check. It is a powerhouse of information.

If you have any questions about housing in the area, of course feel free to give me a call any time at 360-671-2561 and I'll be happy to get you any information you need.

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

Mortgage Broker vs. Dealing Directly With A Bank?

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Thu, 14 Aug 2008 03:29:52 -0500

So many choices, so many ads on tv, where should I go for a loan?

I prefer a good mortgage broker. They earn a living by shopping the lenders to find the best fit for you. They are not limited to one bank's loan products and borrower qualifying criteria.

Not only do they offer a wide selection of loan products from many different lenders, but they also get wholesale rates from many lenders. They then add their fee to that price, just as the loan officer at the bank will do if you go there directly. So in the end, the pricing should be very comparable. For example, my mortgage broker can give me the same pricing on a loan from XYZ bank as if I was to walk in to the local XYZ location myself. And, if XYZ goes out of business or stops offering the product I want, we'll just use ABC bank and I'll still be dealing with the same person. The real key is that my mortgage broker is someone I trust and have done business with for years.

However, once in a while I will go to the local bank. There are some cases when a smaller local bank can offer some unique advantages as well. This is often true with construction loans or unique situations where you need to be able to sit face to face with the "decision maker". They can often be more flexible than a larger lender, as long as your proposal makes sense to them. Also, they often prefer you have accounts with their institution, "you scratch my back, I'll scratch yours". They will almost always request that you open an account with them if you do not already have one. If you want the loan, humor them and open the account. It will make the process much easier.

I hope this helps, feel free to call or email with any questions you may have.

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

Nationally famed investigator will speak in Bellingham August 27th

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Thu, 14 Aug 2008 00:51:06 -0500

Al Schweitzer

The Bellingham Real Estate Investor Network (BREIN) will host Al Schweitzer, a nationally recognized investigator, on August 27th at 6pm. Schweitzer will teach techniques to better screen tenants and partners, and collect on judgements. He has appeared on various national television shows, including Oprah, Nightline and 20/20. A graduate of numerous Federal and State Intelligence and Law Enforcement training programs, Schweitzer has been a consultant to the F.B.I., Department of Treasury, United States Customs Internal Affairs, United States Attorney's Office, The Federal Trade Commission, and numerous State Attorney Generals.

The meeting also offers networking with local investors and others in the real estate industry. BREIN is the investors group in Bellingham/Whatcom County. For details visit www.breinonline.org

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

How to get information about foreclosures in your neighborhood

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Thu, 14 Aug 2008 23:20:28 -0500

Below is a great question I received in response to my newsletter from a man living next to a vacant house in Bellingham, Washington, that is at some stage of the foreclosure process. Of course, he is not alone. More and more foreclosures are popping up in our neighborhoods, and I figured others would be interested in the information he was seeking.

Look familiar?

Question: "Hi Dan, Thanks for the informative news update! Say, I have a question: the house next to us has been vacant for nearly two months, a result of a foreclosure that occured to a young couple. It is sad; however, there has been no activity there since they moved out. How can I find out what's going on with this house? I'm curious for one thing and the weeds and grass are growing. Plus it could be prone to vandalism, etc. Do you have any suggestions as to where I could find out the status of this property? Thanks! Darrell"

Answer: "Hi Darrell, I'm glad you liked the newsletter, thanks for letting me know. On the house next to you, the local title companies usually have good information on the foreclosure process. It may be that the couple still own the house, if the auction sale hasn't happened yet. Or if the auction did happen, it is likely that no one bid on the property and it is now owned by the lender. Lenders sometimes are quite slow to put a house up for sale, especially lately. Many are quite busy with foreclosures. The customer service department at a local title company (I like Jason York at Chicago Title in Bellingham 360-734-7000) can get you the information regarding who owns the home, and the phone number for the trustee (aka lawyer) for the lender. That information is likely available for free or for a very reasonable charge. That trustee or the lender's REO (real estate owned) department can likely give you an idea of what their plans are for the home. Usually they will list the home with a local Realtor. But if you're interested you may be able to buy it before it is listed if you get in touch with the right person at the lender. I hope that helps Darrell, I think a lot of other people probably have the same question right now. Have a great day and let me know if you need anything else, Dan "

If anyone out there has any further questions please let me know. I'm happy to help. Thanks,

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.

Referrals to great professionals and contractors in Bellingham and Whatcom County

Dan O'Donnell (RE/MAX Whatcom County, Inc.) — Thu, 14 Aug 2008 23:39:43 -0500

Need a mortgage broker, builder, roofer, home inspector, real estate lawyer, escrow agent, bookkeeper, banker, title company, handyman etc? If it has anything to do with real estate or real estate investing, I know them.

I've spent 8 years building a team of the best in the business, and I'm happy to save you time and grief by putting you in touch with them. My top criteria are:

They must be trustworthy
They must be experienced
They must have great references
The must be helpful, positive, and good communicators

Use my experience and network to your advantage. Get in touch any time, I'm happy to help. Have a great day,

Dan O'Donnell, 360-220-7157

www.HelpInWhatcom.com

RE/MAX Whatcom County, Inc.