Nothing Better Than Fresh Produce!

Fresh produce is amazing! Grocery stores try their best to get the produce to us as quickly as they can but you can’t beat fresh cut produce! What is even more fun is picking your own! We have picked our own strawberries, blue berries, green beans, potatoes, etc. It’s a lot of fun, great for the family, and just something different!

If you can I encourage you to support your local farms and buy produce locally. Don’t know where to go? Here is a link to all the farms in the area http://wafarmersmarkets.com/washingtonfarmersmarketdirectory.php

Click on the carrot for more information.

Spring – the long awaited housing recovery!

Five years after the U.S. housing bust sent sales and prices plunging, the spring home-buying season is pointing to a long-awaited recovery.

Reduced prices, record-low mortgage rates, higher rents and an improving job market appear to be emboldening many would-be buyers. Open houses are drawing crowds. A wave of foreclosures is leading investors to grab bargain-priced homes.

Still, few think the housing industry is nearing a return to full health. For that to happen, a robust job market would be needed. More hiring would give more people the money and job security to buy. That would help boost sales and prices.

Confidence is rising along with prices. Among the reasons:

— Hiring has strengthened. Each month from January through March generated a solid average of 212,000 jobs. Unemployment has sunk from 9.1 percent in August to 8.2 percent. More job security tends to embolden more people to invest in a home.

— Loans remain cheap. The average rate on a 30-year fixed-rate mortgage is 3.88 percent. That’s just above the 3.87 percent reached in February — the lowest since long-term mortgages were first offered in the 1950s.

— Homes are more affordable. Nationwide, home prices are down 34 percent since 2006.

— Americans are more confident. The Thomson Reuters/University of Michigan’s survey of consumer confidence rose in March for a seventh straight month to its highest level in 13 months.

520 Rates Set to Increase, Are you ready?

Did you know the 520 Bridge Toll has 4 annual 2.5 percent rate increases? It does and the first increase will start in July! That will bring the rates on the State Route 520 floating bridge up 9 cents on the peak rate of $3.50 and 3 cents on the lowest rate of $1.10.

The rate increase is needed to ensure revenue will meet costs and make debt payments to the bondholders, as required by bond contracts and the project financial plan.

The new SR 520 floating bridge is planned for completion in late 2014.
At the time of the initial rate-setting decision in January 2011, the commission chose to include the 15 percent step increase after project completion, rather than start with a higher initial toll rate, and maintain consistent annual increases of 2.5 percent for the first four years.

The July rate increase affects all rates, whether weekday, weekend, Pay By Plate, or Pay By Mail.

Where is Seattle in the US Job Growth?

Where does Seattle rank in the US Job Growth? Well I’m happy to say we are ranked 5th according to a new study for growth from 2011-2012.  Washington state job growth increased 1.49 percent, improving upon the 0.99 percent job growth a year earlier.

Progress is progress no matter how small!

Just Ask For Forgiveness

Something very important is happening on December 31st of this year – something that might impact your life, or the lives of your friends, family or co-workers.

What am I talking about?

The expiration of the Mortgage Forgiveness Debt Relief Act.  The expiration of the Mortgage Forgiveness Debt Relief Act.  As your real estate expert, I talked about the Act in a previous Coffee Break Newsletter.

Oddly enough, many homeowners (including those affected by the Act) are unaware of its existence, or of its ticking clock.

The Mortgage Forgiveness Debt Relief Act applies to debt relief “forgiven” between January 1, 2007 and December 31, 2012. At this point in time, it does not appear the Act will be extended.

What’s really at stake? Money!

Let’s take a step backwards to put this in perspective.

Debt “relief” comes about when a lender “forgives” debt owed by a borrower, as can happen with a short sale, foreclosure, or other type of loan “workout”. Ordinarily, that forgiven amount is taxable. However, under the Act, the borrower’s need to pay taxes on the amount of the forgiven debt is eliminated.

Of course, there are caveats that come along with this tax relief. For example, the debt must be related to a principal residence. In addition, the total amount of the debt can’t exceed the borrower’s original mortgage loan … plus the cost of improvements made to the home.

The implications of this tax relief are huge in dollars and cents! Take a look at an example.

In 2006, Mary Jones bought a home for $375,000 and took out a mortgage of $265,000. This month Mary is relocated across the country for work and must sell her home. Her current mortgage balance is $237,000. Luckily for Mary, her lender is a bank that is willing to work with her on a short sale … and she is lucky enough to find a buyer.
Mary and her buyer agree to a sales price of $218,000. However, that amount falls short of what Mary needs to pay off her mortgage, and pay closing costs – all of which is estimated to come to $227,620. Since Mary does not have enough money to bring to the closing table, Mary’s lender agrees to the short sale, forgiving debt in the amount of $9,260.

Prior to the Act, Mary would have been required to declare the $9,260 as income, and pay taxes on it. Under the current provisions of the Act, taxes on Mary’s $9,260 in relief are forgiven. For individuals in a 20% tax bracket, that’s almost $2,500 in tax savings!

And owners of high-end homes – defaults of which are on the rise — could be looking at very substantial tax breaks, depending on the amount of debt forgiven.

Which leads to several questions my clients have repeatedly raised about the Act:

• What is the maximum amount of debt relief under the Act? Up to $2 million may be forgiven for married couples ($1 million if single or if married but filing separately); of course, this must be for a principal residence. If there is debt forgiven above this amount the borrower is taxed at ordinary income rates.
• Does the Act apply to cars, boats, second homes, investment properties, credit cards, or other debt? Not under this provision. Only debt relief for a principal residence applies under the Act, however, bankruptcy debt relief is non-taxable, and that is sometimes true for insolvency as well.
• Do I have to report the forgiven debt, since I won’t be paying taxes on it? Yes! See the IRS and/or your tax professional for additional details.

I’m not suggesting that you hurry up and default on your mortgage loan so you can take advantage of the Act. However, it is important that you understand the implications of the Act and how it may affect you.

I encourage you to contact qualified professionals (such as attorneys or Certified Public Accountants) who can assist you with this program.  I have names of trusted service providers.  I also suggest you visit the IRS site for information on the Mortgage Forgiveness Debt Relief Act, which can be found on the IRS’s website. I used information from that site, in addition to information provided by NAR in preparing this blog post for you.

Most people are not aware of the Act’s existence, and pending expiration.  Call me at 425-330-0663 for more information on this important and expiring topic. Or just click here!

A Stain on the ceiling could come from a unlikely source!

When you see a stain on the ceiling you instantly think of a water leak, right? Well it could be that but more and more people are finding a unlikely source for the stains: candles!

Candles can actually leave gray, soot deposits on surfaces like ceiling, walls, or around picture frames. Interestingly enough candles in glass jugs are the biggest soot generators because the jug limits air flow to the flame and this inhibits combustion, causing extra soot.

To get away from the stains battery operated candles are gaining in popularity but if you want the real deal try buying high-quality candles and keeping the wicks trimmed to about a quarter inch so that the flame is better controlled.

And if black smoke is already on the ceiling, you should be able to clean it off. First, try to vacuum any loose particles off, and then use a dry sponge or a sponge with cleaner to remove the rest of the stain.

The 2012 Color Of The Year Is……

The 2012 Color of the year (according to Pantone Color Institute) is Tangerine Tango. Yep, a burnt orange hue is the top color this year. I have no idea what goes into choosing the color of the year or why Tangerine Tango beat out Sunset Orange but I do have some ideas on how to incorporate this color into your house.

Stage it with accessories. A moderate amount of tangerine tango can add just the right amount of pop with pillows, throws, or tabletop accessories. Pair it with gray-scale neutrals for a modern flair.

Mix it in the kitchen. Some home owners are choosing this sunset hue for kitchen appliances to add an extra colorful touch.

Brighten up a wall. As Pantone suggests, try a painted accent wall in tangerine tango to create “a dynamic burst of energy” in the kitchen, entryway, or hallway. We have a client that did this to their utility room. It sure does “pop.”

Two Areas of The Home to Remodel To Make Your Life Easy

People today are busy! Between work, kids, housework, and fun it’s just too much to fit all in one day. Here are 2 rooms you never thought about remodeling but it would make a major impact on your daily life.

Separate laundry room  Sellers or recent buyers can enhance laundry room space by installing shelving and cabinetry surrounding the washer and dryer. It doesn’t have to be expensive; it’s the perfect DIY project. Consider what can be stored in that space: laundry detergent, other household cleaners, an iron and ironing board, towels, bedding, and, of course, dirty laundry. Add bins or baskets for instant clothes sorting. A big enhancement, if there’s room, is the addition of a rolling table for folding laundry or doing arts and crafts projects.

Smart storage Get dedicated towers or cubbies for each member of the family—even one for pets. Add names to them and place them near a widely used entrance. They’re great for creating a convenient system for sorting jackets, backpacks, mail, keys, and leashes.

Simple Ways To Save Money

While some parts of the country might be seeing warmer tempertures this time of year it’s still pretty cold in Seattle. Here are some easy tips that can save you money. It might only be a little bit but it all adds up!

Automated HVAC Systems Programmable thermostats can save consumers about $180 per year in energy costs, according to Energy Star.   Automated systems can be set to reduce consumption when residents are out and to create heating and cooling zones in a home—a guest bedroom, for instance, might not always need the same level of heat as the living room.

Water Heaters Tankless gas water heaters turn on when residents start using hot water and turn off when they’re done, which can reduce water heating costs up to 35 percent annually. Water heaters that have a timer can be programmed to turn off when the home owner is away.

Lighting Automatic dimmers will adjust lighting based on the time of day, which is extremely beneficial for exterior lighting.

Blinds & drapes Automated blinds are an eco-savvy development in window treatments. Program shades to close during the hottest part of the day in summer and to let sun in during winter.

The Appraisal Process Has Changed

Just like everything else in real estate the process for getting your home appraised has changed! Here are 3 key areas that have been modified:

1. Relationship Between Lenders and Appraisers
The biggest change is that lenders and appraisers no longer work together — a method that many say was a breeding ground for appraisal fraud. While fraudulent activity is down as a result of the changes some new problems have arisen.

2. Quality of appraisals
As for the quality of appraisers… Here’s the reality: appraisers are not making as much money as they used to. Some appraisal management companies are paying about $200 for an appraisal that would normally pay $350-$400 and they are to get the job done quicker. As a result both the quality and level of competence of the appraiser has taken a hit. In 2007, there were nearly 99,000 licensed appraisers; at the end of 2011, there were just 87,000.

3. Deal or no deal?
Stats don’t lie: An astounding number of contracts are being cancelled – some 33% in January, 2012, alone. That’s up from just 9% in January, 2011. This is  due to lowball appraisals, something has gone wrong with the inspection process that cannot be remedied, or the buyer has either lost his/her job unexpectedly, or simply gotten cold feet. Regardless, brace yourself for the possibility that your home may not be assessed at a fair value, putting you at a disadvantage.

Things are changing but never fear, we are here to help. If you have any questions at all please call 425-330-0663