Mortgage Rates have come down!
In recent months, the real estate landscape has experienced a significant shift that has left many buyers and sellers feeling optimistic about their prospects. With the Federal Reserve's decision to slash interest rates, the mortgage market has seen a welcome decline in rates, creating a ripple effect that benefits both parties in the real estate transaction. For buyers, this change is particularly advantageous. Lower mortgage rates translate to more purchasing power, allowing prospective homeowners to afford homes that may have previously been out of reach. For instance, a decrease in interest rates can mean lower monthly payments on a mortgage, which can make a substantial difference in budget considerations. This newfound affordability could allow buyers to consider larger homes or properties in more desirable neighborhoods, enhancing their overall quality of life. Moreover, with increased buying power comes greater competition among buyers. As more individuals enter the market eager to take advantage of these favorable conditions, sellers will likely see an uptick in interest for their properties. This surge in buyer activity can lead to quicker sales and potentially even bidding wars, as multiple parties vie for the same home. Sellers who have been hesitant to list their properties due to previous high-interest rates may now find it an opportune time to put their homes on the market. The current climate is also encouraging for sellers who have been waiting for the right moment to sell. With lower mortgage rates attracting more buyers, sellers can expect a broader pool of interested parties. This increased demand can lead to higher sale prices and faster closings, making it a win-win situation for those looking to sell their homes. Additionally, with lower rates making homeownership more accessible, we might witness a shift in demographics within the housing market. First-time homebuyers are likely to be particularly active during this period as they seize the opportunity to enter the market at a time when affordability is improved. Young families and individuals looking to establish roots may find this an ideal moment to make their dreams of homeownership a reality. However, while there are many positives associated with falling mortgage rates, it’s essential for both buyers and sellers to remain informed and strategic about their decisions. Buyers should take the time to understand how different loan products work and what rate options are available based on their financial situation. Consulting with mortgage professionals can provide clarity on how much they can afford and what monthly payments will look like over time. On the other hand, sellers should be aware of how market dynamics shift with increased buyer activity. While it’s tempting to list at a higher price due to heightened demand, it’s crucial not to overprice a property. Conducting thorough research or working with a knowledgeable real estate agent can help determine competitive pricing strategies that attract serious buyers while maximizing profit. As we navigate this evolving landscape together, it's worth noting that while lower mortgage rates create opportunities, they also come with some uncertainties. Economic factors such as inflation and employment rates can influence future interest rate adjustments by the Fed. Therefore, both buyers and sellers should keep an eye on these developments as they plan their next moves in real estate. In conclusion, falling mortgage rates present an exciting opportunity for both buyers and sellers in today’s real estate market. Buyers can enjoy enhanced purchasing power and access more desirable properties than before. Sellers stand to benefit from increased demand and potentially quicker sales at favorable prices. By staying informed and strategically navigating this changing environment, both parties can capitalize on these trends effectively. As we move forward into this new chapter of real estate dynamics shaped by lower mortgage rates, it’s essential for everyone involved—whether you’re buying your first home or selling your long-time residence—to stay proactive and engaged in the process. With careful planning and consideration of current market conditions, you’ll be well-positioned to make decisions that align with your goals and aspirations in the realm of homeownership or investment.
Real Estate Settlement... what does in mean for Kitsap?
I hope your week is going well! I've been waiting to see what would shake down after the NAR settlement. I'm excited to say that many things have been corrected and, for me, it will be much 'business as usual'. There's been a ton of marketing, alluding to the idea that sellers can 'save money', since NOW, buyer's agent commissions are negotiable. So, here's the deal. Commissions, on both sides, listing and buying, have been negotiable, for years. It's been a law in Washington that commissions are negotiable for a long time. That negotiation happens between the listing agent and the seller, and the buyer agent and the buyer. Side note: I've been doing Buyer's Agency Agreements for almost three years. It's a good thing for both the buyer and the buyer agent. it puts all the expectations on the table, opens the conversation to how a real estate purchase works, and allows the buyer to truly see ho wI do business to get the answers they need to help me represent them in the the best way possible. This agreement literally saved a deal for one of my buyers, adn I'm proud to be a pioneer of using it! So, what happened? A jury found that NAR (National Association of Realtors) had "conspired to keep commissions artificailly high", according to the Washington Post. Because of this, there has been a settlement on the part of NAR to put in place some protections. One is a buyer's agreement, one is removing commissions from the MLS (Multiple Listing Services), when listing a home, and some other things. What is important to understand here is that NAR owned several MLS boards, across the country. There was some confusion among members that the listing agent had to 'share' THEIR commission with the buyer's agents. According to an article on their own website, NAR attempted to clear up the idea that commissions were ever NOT negotiable. However, there is a misconception, at least in Western Washington, that listing agents have the right to set compensations for buyer's agents. "The listing broker retains the right to determine the amount of compensation offered to subagents, buyer agent, or to brokers acting in other agency or non agency capapcities, which may be the same or different." Excerpt from Correcting the Record Article At least in my market, Western Washington, it is NOT the right of the listing broker to determine commissions for the buyer's agents. When I go to a listing appointment, we discuss my fee, what I do, what value I bring to the situation, and we discuss a buyer's commission, as a separate topic from my own commission negotiation. This has not been a right of the listing agent since I have been a real estate agent, and has, since I've been in the industry, ALWAYS been in the hands of the seller. Sellers do not, and have not, HAD to offer any commission, on either side. It is fully negotiable. In my opinion, the above wording, from the NAR, was part of what muddied the waters. End of the day, nothing has actually changed. Commissions CONTINUE to be fully negotiable, for BOTH listing agents and buyer's agents. Moving on to removing the buyer commission from the MLS, we are very blessed that NWMLS is not owned by NAR. Our NWMLS has been at the forefront of this issue, and have had buyer's agreements for years. I chose to use them, when I was shown how useful they could be, both for myself and for my buyers! Our listing agreements have always shown what the listing agent commission would be, separate from the buyer agent commission. Buyer's agreements are new to many agents here in Western Washington, but for me, again, nothing, has changed. I will continue to use buyer's agreements and consultations, and make sure we are all on the same page! Transparency is key! NWMLS was given the opportunity to 'opt in' to the settlement. As of the date of this writing, they have stated they will NOT be opting in, and will not be conforming to what the NAR has agreed to. Here's the deal. Kitsap County is full of budget homes. Homes that will be available for buyers who will utilize First Time Home Buyer's Assistance, FHA and other mortgage programs. While commissions continue to be negotiable, if your home falls in a certain market, the buyers who will be available to purchase your home may not have the extra money laying around to pay a buyer's commission. In our buyer's agreement contracts, it is specifically asked if the buyer wants to see homes where there is no buyer agent commission offered. If they don't have the funds, buyers will choose not to view your home, effectively removing your home from the very audience that would purchase. If they DO view your home, they will be asking for standard commission in the offer, anyways. Two and half to three percent is standard right now. No one works for free. While the buyer's agreement obligates the buyer to the commission, it also gives negotiating power to their buyers, to be represented in the highest and best way possible. Not all markets are the same. For example, the Kitsap Luxury market may not be so dpendent on having a percentage for buyer's commission, more on that in a later blog. Truly, the buyer's agreement forces the agent to a higher standard. It's in your best interest to choose an agent who will work to represent you well. if you are in the market for an agent, click here to download my free Buyer's Agent Interview Guide! The information vault is open! As always, the best time to buy a home was five years ago. If you are renting, the next best time is NOW! Kari Green [email protected] 360 552-8150 www.karigreen.evrealestate.com
Story of a Lifetime-Luxury Home Spotlight, Vashon Island, Washington
Vashon Island?? Where is that?? I grew up in Washington State. I love the green beauty that is always around, the many outdoor adventures that can be had, at all times of the year, and, I think, best of all, the diversity of culture that is shared by those of us who live here. There is literally something for everyone. A couple of the marks of a born and bred Washingtonian is that we can tell tourists by their umbrellas, and that, regardless of where we were born, if we were born in western Washington, when we are asked by out of staters where we were born or where we are from, we simply answer, "Seattle", because it's just easier! Nobody knows where Bremerton is. It's a little town, about two hours drive from Seattle, or a 45 minute ferry ride. Being here as long as I have, I enjoy knowing little bits of history about every place I visit. My family has always enjoyed hiking, fishing, nature trails, and my kids all enjoyed camping. Being who I am, we had to be more than 12 hours away before I was willing to sleep on the ground! But campfires, nature walks even cave hiking in the Ape Caves of Mount St. Helens.. these are adventures I coveted with my kids. One of the most beautiful places in western Washington, in my opinion, is Vashon Island. As a child, the mystique of living on an island, with no land bridge, was the epitome of fairytale. Located between the bustling 'Emerald City' of Seattle one one side and the much more rural area of Port Orchard, Purdy and Gig Harbor, on the other, Vashon stands alone. To my mind, as a child and teenager, this was a wonderous feat of humanity, and the idea of living on a completely separate island was intriguing to me. In reality, Vashon, like most of our towns here, began with logging, and ended up be a place for settlers and farmers to set roots. Out of the grit and hard work of those who settled her, Vashon and Maury Islands became towns of their own, dependent on steamboats, lumber and other exports in and out of Puget Sound. The history of Vashon Island is a fun read. This site has some extensive history on the island, for more info: My Vashon Island Blog Today, Vashon Island seems to be a place to 'get away from it all.' A short ferry ride to either Seattle or Port Orchard, one can easily see how it would lovely to work in a hustle bustle world, and still be able to retreat to a santuary. According to Vashon Island, "To preserve their comfortably casual style of living, the people who call the island home have fought vigorously to prevent a bridge from being built, which they are sure would be an invitation to large agricultural industry. Currently, the only way for visitors to gain access to Vashon Island is by ferry." The community is committed to preserving the quality of life that has flourished there. One of the best things I get to do as a real estate advisor, is showcase homes I would not otherwise be able to see. The Wildwood Estate on Vashon Island is one of the breathtaking opportunities. The fairytale is here! Tucked away on 21 acres, this rambling estate offers all of the beauty nature has to offer, without leaving your own back yard. Stop and marvel at the stunning front yard landscape, that enhances the natural beauty around you. This waterfront location is superbly appointed. All before you even enter this home, there is a massive barn. This has been used successfully as an AirBNB, and has two, one bedroom units. Completely ready for equestrian pursuits, this astounding area includes stables, tackroom, room for any needed equipment. I have visited and toured many homes, in many markets, from Birch Bay to Sequim. This home has no comparison! The spectacular view of Puget Sound, is only the beginning. This breathtaking home was built in 1994, and has only had one owner. Situated on the property in such a way that you feel like you are entering and modern day fairytale. In every corner, you see beauty, elegance, and grace, married exquisitely with the calling of 'home'. The kitchen is the heartbeat of many homes. High ceilings, ample storage and counter space, the warmth and glow is aparent, even in the day time. Gaze out at the natural beauty of the sound, as you create mouth watering delacacies. Perfect for morning coffee and dinner parties, this kitchen is ready for everything! The large living room sits beautifully in this home. Situated with a glorious view, high windows allow natural light to flood the space. Complete with fireplace and hearth, curl up and read a good book, or comfortably peruse the next project on the drawing board. My favorite space in this home is the master bedroom. In my childhood fairytales, I always saw myself in a bedroom with a fireplace. Whether imagining about 'The Little Princess', as she is de-stationed and forced to clean the fireplaces of the rich girls, or dreaming of being the princess in the castle, bedrooms had fireplaces. This home doesn't fail to inspire. Large bedroom, complete with fireplace, attached to very generous master suite. Masterfully designed to invite relaxation in a hot bath after a long day, while maintaining the exquisite sense of elegance, grace and indulgence. This home is amazing, with new things to appreciate around every corner. The last room that really grabbed my attention is the office/study. The room is large enough to support wood paneling, fireplace and french doors. It is a space that exudes luxury, and has hints of by gone times, when smoking jackets, cigars, and brandy were readily at hand for entertaining, meetings, and exchanges of great ideas. Ample shelves, a space for media, the rooms speaks... "So you have to work... Why not work in luxury..." I'm so grateful that my team and I have the opportunity to bring light to Vashon Island, and this 21 acres of heaven. It is priced to sell at $8,950,000. On the global market, it's worth every penny. Not only is it well appointed for daily living, but it also is a well established, high end AirBNB. In the end, it's not only an amazing place to live, with every amenity, including elevator and indoor swimming pool and hot tub, but it's an investment that can bring semi immediate returns, depending on how often it is booked. Check out this incredible opportunity! With proof of funds, I can schedule you for a tour, and we can get you started on your very own fairytale. Let's see where the dream takes you! Kari Green, Real Estate Advisor360 552-8150
