Michael's Bellingham Real Estate Blog

Mortgage Guideline Changes - A Summary Of Changes Over The Last Few Years That Consumers Need To Know

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Thu, 10 Dec 2009 20:10:44 -0600

This is a great post by John Jones of Dallas Texas

Via John Jones (Keller Williams Elite, Dallas/Park Cities):

Since the beginning of the financial crisis, several significant changes have occured with mortgage guidelines. A summary of these mortgage guideline changes is imperative to helping consumers understand what changes that have taken place over the last few years may affect their ability to obtain a new mortgage loan.

Contrary to popular belief, the guideline changes have involved a lot more than just higher credit score requirements. In fact, one could argue that credit scores have perhaps been the least significant factor that has changed.   This assumption is perhaps my biggest reason for writing this article. Many buyers I encounter today, especially those who monitor their credit score and know they have good credit, are under the false impression that mortgage guidelines are essentially the same as they were a few years ago with the exception of higher credit score requirements. This leads them to assume that they will automatically be approved for a loan.

Perhaps they were able to obtain a mortgage quite easily a few years ago, or perhaps they simply do not understand that credit score is only one of a long list of factors that mortgage lenders consider. The main reason for their misunderstanding is because the media has oversimplified the complexity of the mortgage crisis and constantly portrays it as being caused by "banks giving loans to people with bad credit".   So it's logical to most people to conclude that credit score requirements have been the only factors that have changed.

Unfortunately this is far from the case. That doesn't mean that it's impossible to get a loan nowadays, but buyers need to be aware of the other changes that have taken place with mortgage guidelines. Simply having a good credit score no longer guarantees a loan approval like it did a few years ago.

The subprime mortgage market at one point made up more than half of the mortgage market in the US. Today, it accounts for just a small percentage. Fannie Mae, Freddie Mac and Ginnie Mae now account for over 90% of the mortgage market, with the remaining share consisting largely of jumbo loans held in bank portfolio and hard money loans, which are private mortgage loans made by a variety of different entities.

In other words, FHA, VA, USDA and Fannie/Freddie Conventional loans are about the only game in town, aside from jumbo loans and the small share of hard money lenders that make loans on their own terms. Of course, hard money lenders usually demand much higher fees and interest rates than the government agencies since they are able to provide a loan when nobody else will.

The government agencies guarantee loans made by banks, they do not loan the money themselves directly to consumers. But they purchase the loans from the banks once the loan has been made to the consumer. So banks will typically not lend outside of these guidelines since they do not wish to hold these loans on their books. They would rather transfer the risk and make loans to new customers by sellling them to Fannie Mae or Freddie Mac.

Here's a summary of changes that have taken place in mortgage guidelines over the last few years:

MOST SIGNIFICANT CHANGES:

ELIMINATION OF VIRTUALLY ALL STATED INCOME AND NO DOC LOANS

Stated income loans were originally designed as a way to simplify the mortgage approval process for self-employed borrowers who had to provide a significant amount of paperwork (tax returns, etc). Over the last several years, many lenders dropped the down payment requirement for stated income loans from 20% all the way down to 0% while at the same time eliminating the requirement to actually verify the borrower had a business in the first place.

Then came "no doc" loans, where the borrower simply had to provide their name and a social security number. At one point, a buyer with a 680 credit score could purchase a $750,000 home with no money down with no verification of employment, income or assets. Needless to say, these loans mostly resulted in foreclosure and massive losses to the investors.

WHAT'S DIFFERENT NOW?

Most states have passed laws that completely outlaw stated income loans. Furthermore, banks realize that loans made to individuals that can't document their income through traditional means (W-2's, tax returns, etc) have a much higher instance of foreclosure. Fannie Mae no longer purchases stated income loans. The only option most homebuyers have who can't document their income is to seek financing from a hard money lender who is willing to take the higher risk. The rates and fees are typically much higher than government insured loans.

MANY 100% FINANCING PROGRAMS HAVE BEEN ELIMINATED

A few years ago, subprime loans allowed buyers with credit scores as low as 560 (in some cases 500) to obtain a 100% loan. Also, there was a loophole in the FHA guidelines that allowed buyers to obtain a "gift" from the seller to circumvent the 3% down requirement. Fannie Mae also had a variety of 100% loan programs.

WHAT'S DIFFERENT NOW?

Fannie Mae now requires a minimum of 3% down. FHA down payment requirements have been increased to 3.5% and the loophole allowing sellers to pay their down payment has been eliminated. 100% subprime loans have been gone for several years now, and 100% stated income loans have been retired to the graveyard of history.

PROGRAMS THAT STILL ALLOW 100% FINANCING include the USDA loan program and the VA loan program. Some government grants also may be used for down payment, but these usually have very strict income requirements. The USDA loan has some specific loan guidelines and, more importantly, geographic restrictions. 100% VA loans are still available to qualified veterans. And surprisingly, the guidelines for VA loans have changed very little. This is likely due to the fact that VA analyzes income more closely than other types of loans, which has led to fewer losses compared to subprime and conventional loans.

GUIDELINES FOR BUYERS WHO WANT TO KEEP THEIR CURRENT HOME AS AN INVESTMENT PROPERTY, SECOND HOME OR SELL THE HOME AFTER CLOSING ON THE NEW ONE

A few years ago, most buyers who wanted to purchase a different home (move-up) or even downsize to a smaller home would simply lease their current home and provide a copy of this lease to their lender to offset their mortgage payment. Then once the foreclosure crisis picked up steam, lenders began to notice that a significant amount of foreclosures were occuring on homes where buyers had purchased another home and simply let the first home go into foreclosure. This was even happening on many buyers who had perfect credit. This tactic, known as "buy and bail", began causing a massive amount of losses to mortgage companies. Even many buyers who intended on keeping their home as an investment property or who were planning to sell the home shortly after closing on the new one began falling behind because of a slowdown in the market.

WHAT'S DIFFERENT NOW?

Homebuyers who want to keep their current home may not be able to simply show a lease to offset the payment. Fannie Mae, in most cases, requires the buyer to prove they have at least 30% equity in their current home in order to offset the current payment with a lease. They also may be required to show at least six months payment reserves for both the current and new home. FHA also requires 25% equity, unless certain conditions exist (such as moving to an area that's not within reasonable commuting distance). Proof that the first month's rent and/or security deposit has been obtained is often required as well. Homebuyers that are upside down on their current home or who do not meet these equity requirements may still be able to obtain a new loan provided they qualify with both mortgage payments.

RESERVE REQUIREMENTS

During the subprime boom, many lenders relaxed or completely eliminated requirements that borrowers have reserves in the bank after closing. Statistically, buyers are much more likely to have problems paying their mortgage without at least some cushion to fall back on in case of a financial hardship, such as job loss, etc.

WHAT'S DIFFERENT NOW?

While most loans do not have specific requirements for reserves, some lenders now require reserves for buyers with lower credit scores, as well as in certain situations where the overall risk of default may be higher. A good example is buyers that are keeping their current residence, as described above. In general, buyers who have little or no reserves will find it harder to obtain a mortgage.

DEBT TO INCOME RATIO LIMITS

The debt-to-income ratio is defined as the ratio of total monthly obligations compared to total gross monthly income. So a homebuyer who makes $5000 per month but has $2500 per month in debts, including the proposed new house payment, would have a debt ratio of 50%. Debt ratio requirements during the subprime boom were often allowed to exceed 60 or 70% and were completely ignored in many cases.

WHAT'S DIFFERENT NOW?

Fannie Mae recently changed their maximum debt-to-income ratio to 45% from 50%. Many lenders may also have an arbitrary requirement regardless of whether or not the loan program guidelines do or not. The automated underwriting systems have tightened the maximum debt-to-income requirements in many situations. While credit score may help to increase a buyer's allowable debt ratios, having a high credit score alone does not guarantee an approval.

OVERLAY (ARBITRARY) GUIDELINES

This is perhaps becoming the most significant change that is affecting many loan applicants. An overlay guideline is essentially a guideline imposed by a lender that is over and above the loan guidelines themselves. For example, FHA does not have a minimum credit score requirement per se. However, I'm not aware of any lenders that do not have some kind of minimum credit score for FHA buyers. Why do lenders do this? Because even though an agency such as FHA or Fannie Mae may guarantee a loan, that doesn't mean the lender will not incur a loss if the buyer fails to make their payments. Therefore, lenders will often analyze the loans they've originated in the past and impose certain requirements that may be over and above the requirements set by the federal agency that insures or guarantees the loans.

WHAT'S DIFFERENT NOW?

Most lenders have a minimum credit score requirement of 600-620 for FHA loans. Also, some lenders may either require a second-level signature from upper management on loans that are deemed to carry a higher risk of default, such as for buyers with high debt ratios, low reserves, a spotty employment or income history or buyers that are purchasing a home that's in an area where real estate values have declined significantly.

OTHER CHANGES:

HIGHER INTEREST RATES FOR BUYERS WITH LOWER CREDIT SCORES AND LESS MONEY DOWN

Fannie Mae began this trend a couple of years ago by instituting "loan level price adjustments" for buyers with less than 740 credit scores and who were putting down less than 40% down (yes, 40%). Although the adjustments to the rate are very minor at this level, buyers with less than a 680 credit score and less than 20% down may see a significant adjustment to either their rate or to their closing costs. And since many buyers assume the rate they see advertised is the rate everyone gets, they may budget the cost for their new home based on a rate that is not obtainable based on their situation. Furthermore, many companies are now imposing rate adjustments to buyers seeking government loans (FHA, VA and USDA).

MORTGAGE COMPANIES THAT ADVERTISE RATES ON THE INTERNET, TV AND RADIO DO NOT TAKE THESE PRICING ADJUSTMENTS INTO ACCOUNT. Most advertisements disclose somewhere in their fine print that the rates they advertise assume a credit score of 740 and a 20% down payment. So don't assume the rate you see is the rate you're going to get until a loan officer has a chance to fully qualify you by obtaining a full credit report and also an analysis of your current situation and income.

TOUGHER APPRAISAL REQUIREMENTS

Lenders require an appraisal to be conducted on virtually all home purchase transactions to ensure that the price a homebuyer is paying for a home can be justified with recent sales data. This protects lenders collateral position in case of foreclosure.  In past years, loan officers would simply call their favorite appraiser and request an appraisal.

Because of perceived conflicts of interest with this process, a new process was created called the Home Valuation Code of Contact, which restricts loan officers and production staff from communicating directly with an appraiser. The result has led to longer waiting periods to obtain appraisals and sometimes inaccurate appraisals since the management companies often select appraisers that are unfamiliar with an area. Since the appraisals are now ordered through appraisal management companies, this extra step means extra time (and money in many cases) for home buyers.

LONGER WAITING PERIODS

The Federal Reserve recently amended the Truth In Lending laws. Buyers now must wait at least seven days to close after the full terms of their proposed loan have been delivered and disclosed to them. Furthermore, if the terms of the loan change (which is sometimes not the fault of the lender and may be the result of a change outside of everyone's control), the buyer must wait another three days to close.

While this may seem like nothing to worry about, keep in mind that the sales contract in Texas calls for a certain specific closing date. If the buyer fails to close by this date, even as the result of a federally mandated waiting period, the seller has the option of terminating the contract at their sole discretion in the State of Texas. These waiting periods can often become an issue and put buyers at risk of potentially losing the contract on their home if they wait too long to select a lender. The days of five day closings are a thing of the past, and the process of the new appraisal requirements can also cause additional delays as well.   The bottom line is that homebuyers need to shop for their loan well in advance of shopping for a home to avoid any potential delays.

So in conclusion, the changes that have taken place in mortgage guidelines over the last few years have been a lot more than just higher credit score requirements. In fact, the minimum credit score of 620 that most lenders require to obtain an FHA loan is not much higher than it was a few years ago.  The most significant changes have occured in the more detailed guidelines that most buyers may not even realize exist. And while it's certainly safe to say that many changes have taken place, it's certainly not impossible to obtain a loan if these situations can be overcome.

But waiting until the last minute to consult with a lender is a mistake that will cost many homebuyers the opportunity to qualify for a home loan. If you are considering purchasing a home, please contact me today so I can evaluate your situation and put you in touch with a lender that can consult with you at no charge to evaluate your options.

John Jones, Realtor

The Kaul Group - Keller Williams Elite, Dallas / Park Cities

www.dfwhomefinder.info

www.thekaulgroup.com

8201 Preston Road Suite 265

Dallas, TX 75265

Dallas, TX Real Estate and surrounding areas of Richardson, Plano, Addison, Frisco, Carrollton, Farmers Branch, Garland, Allen and Irving.

Dallas, TX neighborhoods and subdivisions of Lake Highlands, White Rock Lake, Lochwood, Eastwood, L Streets, M Streets, Hollywood Heights, Lakewood, Coronado and Gastonwood, Forest Hills, Preston Hollow.

Copyright 2009 by John Jones, All Rights Reserved. You may reblog or republish with links back to this post.

* THIS ARTICLE WAS ORIGINALLY PUBLISHED AT http://dfwhomefinder.info *

Whatcom County Real Estate Market Report for November, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sun, 06 Dec 2009 14:06:58 -0600

The following is a quick analysis of the Whatcom County real estate market.

There are currently 1325 homes for sale
Homes are priced from $15,000 - $4,500,000
Average Asking Price $409,206 Days on Market: 144 days
Median Asking Price $325,000 Days on Market: 107 days
Homes sold in November: 189
Average Listing Price $317,989
Average Sold Price $318,141 Days on Market 106
Median Listing Price $259,000
Median Sold Price $252,490 Days on Market: 78
Homes Pending this week: 45 Total Homes Pending: 431

Average Sales Price November 2008: $289,803
Median Sales Price November 2008: $267,000
Sold in November 2008: 100

The Average Sales price is up 9.8% compared to November 08 and up 9.8% compared to last month.

The Median Sales prices is down 5.4% compared to November 08 and down 2.1% compared to last month.

The number of sales is up by 89 compared to November 08 and down by 16 compared to last month.

Condo Analysis for Whatcom County

Currently Active Listings: 380
Price range of active listings - $22,000 - $1,565,000
Average List Price $231,534 Days on Market: 170
Median List Price $189,900 Days on Market: 125
Sold in November: 25
Average Listing Price $194,618
Average Sold Price $184,092 Days on Market: 143
Median Listing Price $189,500
Median Sold Price $175,000 Days on Market: 65
Condos Pending (went under contract) last week: 5 Total Condos Pending: 79

Average Sales Price November 2008: $214,434
Median Sales Price November 2008: $199,000
Sold in November 2008: 11

The Average Sales price is down 14.1% compared to November 08, and down by 10.0% compared to last month.

The Median Sales prices is down by 13.7% compared to November 08 and down by 7.9% compared to last month.

The number of sales is up by 14 compared to November 08 and down by 22 compared to last month.

Whatcom County Real Estate Market Report for November, 2009

Bellingham Real Estate Market Report for November, 2009

Blaine Real Estate Market Report for November, 2009

Ferndale Real Estate Market Report for October, 2009

Lynden Real Estate Market Report for November, 2009

Sudden Valley Estate Market Report for November, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sun, 06 Dec 2009 14:05:59 -0600

The following is a quick analysis of the Sudden Valley Estate Market.

There are currently 87 homes for sale. Homes are priced from $139,900 - $869,900

Average Asking Price is $299,075 Average Days on Market are 107 days
Median Asking Price is $264,000 Median Days on Market are 77 days
Sold in November: 15
Average Listing Price $232,730
Average Sold Price $230,380 Average Days on Market 98
Median Listing Price $224,900
Median Sold Price $220,000 Median Days on Market 63
Pending Sales Last Week: 3 Total pending sales: 30

Average Sales Price November 2008: $243,310
Median Sales Price November 2008: $238,750
Sold in November 2008: 12

The Average Sales price is down 5.3% compared to November 08 and down 15.6% compared to October 09.

The Median Sales prices is down 8.5% compared to November 08 and down 3.3% compared to October 09.

The number of sales up by 3 compared to November 08 and is down by 1units compared to October 09.

Condo Analysis for Sudden Valley

There are currently 9 condos for sale. Condos are priced from $69,900 - $350,000

Average List Price $301,467 Average Days on the Market: 135
Median List Price $199,000 Median Days on the Market: 81
Sold in November: 2
Average Listing Price $159,900
Average Sold Price $149,500 Average Days on Market 99
Median Listing Price $159,900
Median Sold Price $149,500 Median Days on Market 98
Pending Sales Last Week: 0 Total pending sales: 14

Average Sales Price November 2008: $155,000

Median Sales Price November 2008: $155,000

Sold in November 2008: 1

You might want to talk to your banker to see what you can afford. Meanwhile interest rates are still extremely low and there are some great values in the Bellingham market right now. You might want to take a look at what it would cost you to purchase one of these homes at today's rates. You might be surprised at what your monthly payments would be, maybe less than your paying for rent right now if you are renting a comparable sized house.

If you have any questions or want to see any Bellingham Property feel free to email me at or give me a call at 360-739-6981

Whatcom County Real Estate Market Report for November, 2009

Bellingham Real Estate Market Report for November, 2009

Blaine Real Estate Market Report for November, 2009

Ferndale Real Estate Market Report for October, 2009

Lynden Real Estate Market Report for November, 2009

Sudden Valley Estate Market Report for November, 2009

Ferndale Real Estate Market Report for November, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sun, 06 Dec 2009 14:05:05 -0600

There are currently 205 homes for sale.

Homes are priced from $69,900 - $1,500,000
Average Asking Price is $383,692 Days on Market are 137 days
Median Asking Price is $319,900 Days on Market are 99 days
Homes sold in November: 20
Average Listing Price $303,688
Average Sold Price $298,420 Days on the Market 94
Median Listing Price $248,475
Median Sold Price $243,950 Days on Market 82
Homes Pending this week: 8 Total Homes Pending: 50

Average Sales Price November 2008: $305,298
Median Sales Price November 2008: $300,000
Sold in November 2008: 11

The Average Sales price is down 2.3% compared to November 08 and up 14.5% compared to last month, October 09.

The Median Sales prices is down 23.0% compared to November 08 and down 2.6% compared to last month, October 09.

The number of sales is down up by 9 compared to November 08 and is down 4 compared to last month, October 09.

Whatcom County Real Estate Market Report for November, 2009

Bellingham Real Estate Market Report for November, 2009

Blaine Real Estate Market Report for November, 2009

Ferndale Real Estate Market Report for October, 2009

Lynden Real Estate Market Report for November, 2009

Sudden Valley Estate Market Report for November, 2009

Lynden Real Estate Market Report for November, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sun, 06 Dec 2009 14:04:21 -0600

There are currently 146 homes for sale.

Homes are priced from $112,900 - $987,000
Average Asking Price; $369,474 Days on Market are 153 days
Median Asking Price: $339,929 Days on Market are 120 days
Homes sold in November: 16
Average Listing Price $353,688
Average Sold Price $339,406 Days on the Market 120
Median Listing Price $347,000
Median Sold Price $343,750 Days on Market 100
Homes Pending last week: 6 Total Homes Pending: 29

Average Sales Price November 2008: $303,329
Median Sales Price November 2008: $272,000
Sold in November 2008: 12

The Average Sales price is up 12.6% compared to November 08 and up 8.7% compared to October 09.

The Median Sales prices is up 26.3% compared to November 08 and up 14.5% compared to October 09.

The number of sales is up by 4 compared to November 08 and is up by 2 compared to last month October 09.

Condo Analysis for Lynden

There are currently 29 condos for sale.
Condos are priced from $139,900 - $379,500
Average List Price $226,328 Days on the Market: 198
Median List Price $219,9056 Days on the Market: 155
Condos Sold in November: 1
Average List Price: $124,800
Average Sales Price: $120,000 Days on the Market: 7
Median List Price: $124,800
Median Sales Price: $120,000 Days on the Market: 7
Pending Sales Last Week: 0 Total Condos Pending 3

Average Sales Price November 2008: $285,635
Median Sales Price November 2008: $285,635
Sold in November 2008: 1

If you have any questions or want to see any Bellingham Property feel free to email me at or give me a call at 360-739-6981

Whatcom County Real Estate Market Report for November, 2009

Bellingham Real Estate Market Report for November, 2009

Blaine Real Estate Market Report for November, 2009

Ferndale Real Estate Market Report for October, 2009

Lynden Real Estate Market Report for November, 2009

Sudden Valley Estate Market Report for November, 2009

Blaine Real Estate Market Report for November, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sun, 06 Dec 2009 14:02:18 -0600

The following is a quick analysis of the Blaine real estate market.

There are currently 216 homes for sale.

Homes are priced from $77,5000 - $2,950,000
Average Asking Price $440,517 Days on Market: 165 days
Median Asking Price $317,500 Days on Market: 125 days
Homes sold in November: 20
Average Listing Price $306,212
Average Sold Price $291,670 Days on Market 125
Median Listing Price $225,495
Median Sold Price $225,495 Days on Market: 77
Homes Pending this week: 5 Total Homes Pending: 51

Average Sales Price November 2008: $280,375
Median Sales Price November 2008: $265,500
Sold in November 2008: 12

The Average Sales price is up 4.0% compared to November 08 and up 8.4% compared to the previous month October 09.

The Median Sales prices is down 15.1% compared to November 08 and up 3.9% compared to the previous month October 09.

The number of sales is up by 8 to November 08 and is down by 2 compared to the previous month October 09.

Condo Analysis for Blaine/Birch Bay

Currently Active Listings: 65
Price range of active listings - $22,000 - $1,149,000
Average List Price $254,195 Days on Market: 181
Median List Price $219,000 Days on Market: 161
Sold in November: 5
Average Listing Price $188,890
Average Sold Price $170,800 Days on Market: 196
Median Listing Price $198,000
Median Sold Price $185,000 Days on Market: 113
Condos Pending this week: 0 Total Condos Pending: 14

Average Sales Price November 2008: $404,000
Median Sales Price November 2008: $404,000
Sold in November 2008: 1

Whatcom County Real Estate Market Report for November, 2009

Bellingham Real Estate Market Report for November, 2009

Blaine Real Estate Market Report for November, 2009

Ferndale Real Estate Market Report for October, 2009

Lynden Real Estate Market Report for November, 2009

Sudden Valley Estate Market Report for November, 2009

Bellingham Real Estate Market Report for November, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sun, 06 Dec 2009 14:00:01 -0600

The following is a quick analysis of the Residential Bellingham real estate market.

Currently Active Listings: 432
Price range of active listings - $107,600 - $3,450,000
Average List Price $492,090 Days on the Market: 123
Median List Price: $375,000 Days on the Market: 85
Sold in November: 87
Average List Price: $362,903
Average Sales Price: $374,068 Days on the Market: 91
Ratio of List to Price: 103%
Median List Price: $288,000
Median Sales Price: $280,000 Days on the Market: 62
Ratio of List to Price: 97.2%
Pending Sales Last Week: 10 Total pending sales: 126

Average Sales Price November 2008: $320,973
Median Sales Price November 2008: $288,950
Number Sold in November 2008: 36

The Average Sales price is up 16.5% compared to November 08 and up 13.6% compared to the previous month October 09.

The Median Sales prices is down by 3.1% compared November 08 and up 2.3% compared to the previous October 09.

The number of sales is up by 21 compared to November 2008 and down by 9 compared to the previous month October 09.

Condo Analysis for Bellingham

Currently Active Listings: 241
Price range of active listings - $113,900 - $1,565,000
Average List Price $236,909 Days on the Market: 157
Median List Price $184,900 Days on the Market: 118
Sold in November: 15
Average List Price: $207,106
Average Sales Price: $199,771 Days on the Market: 123
Ratio of List to Price: 96.5%
Median List Price: $185,000
Median Sales Price: $175,000 Days on the Market: 44
Ratio of List to Price: 94.6%
Pending Sales Last Week: 3Total pending sales: 25

Average Sales Price November, 2008: $181,125
Median Sales Price November, 2008: $179,750
Sold in November, 2008: 4

Average Condo sale price is up 10.3% from November 2008 and down 0.9% from the previous month - October 2009

Median Sales Price is down 2.6% from November 2008 and down 2.3% from the previous month - October 2009.

The number of sales is up by 11 compared to November 2008 and down by 20 compared to the previous month October 09.

If you look at the graph you can see that prices the residential market has taken a bit of a rise again. Where will the graph go next month is anybody's guess. Will the roller coaster ride of prices continue?........Tune in next month

Great news the First Time Home Buyer's Tax Credit of $8,000 available to anyone who hasn't owned a home in the past 3 years has been extended until April 2010. The new program will also expand the tax credit to include existing home owners who have owned a home for at least five of the last 8 years will be able to apply for tax credits of up to $6,500 when they purchase their next home.You might want to talk to your banker to see what you can afford.Meanwhile interest rates are still extremely low and there are some great values in the Bellingham market right now. You might want to take a look at what it would cost you to purchase one of these homes at today's rates. You might be surprised at what your monthly payments would be, maybe less than your paying for rent right now if you are renting a comparable sized house.

If you have any questions or want to see any Bellingham Property feel free to email me at or give me a call at 360-739-6981

Whatcom County Real Estate Market Report for November, 2009

Bellingham Real Estate Market Report for November, 2009

Blaine Real Estate Market Report for November, 2009

Ferndale Real Estate Market Report for October, 2009

Lynden Real Estate Market Report for November, 2009

Sudden Valley Estate Market Report for November, 2009

Whatcom Middle School Structurally OK

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sat, 05 Dec 2009 19:15:43 -0600

Good news for Bellingham and Whatcom Middle School. The gym floor is warped from water damage everything is dirty, damp and covered in debris, and light pours into the building where the roof used to be, but the building appears to be salvageable.

The good news is the interior is largely still intact, the structure still stands and the fire damage appears to have been mostly limited to the roof, according to Bellingham Fire Chief Bill Boyd.

Investigators with the Bellingham Fire Department are still trying to determine the fire's cause.

"I was surprised by what I would consider to be a minimal amount of fire damage on the second floor," Boyd said. "Obviously it's a mess that's going to take some cleanup."

The school boards hopes of saving the school are starting to look pretty good, maybe within a few years the doors of Whatcom Middle School will be open again.

Should Bellingham Landlords be Licensed?

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Tue, 01 Dec 2009 23:29:07 -0600

In an attempt to control "nuisance" houses, usually those where students live and have loud parties and bother neighbors, the Bellingham City Council is considering a licensing law for landlords.

If you own a rental in Bellingham you might want to attend the meeting on Monday, December 7, 2009 at 7 PM in the Bellingham City Council chambers. You can also submit written comments prior to the meeting.

This law is not just limited to landlords with a certain number of rental units but to anyone with a rental property in Bellingham. So if this law were to take effect, and you own one home and rent it out you'll need to be licensed. There will be inspection requirements not only to check for health and safety issues to ensure compliance with the rule that states that not more than three unrelated persons may live in the same house.

There are many people who believe this law is unnecessary and stricter enforcement of present laws is all that is required.

Other cities that have implemented similar licensing laws have an initial licensing fee which may be as much as $1500 with an annual inspection of rental units of $150 per unit. Penalties for failure to get a license could be as much as $1000-$5000 and up to 90 days in jail. And as far as nuisance calls go if the city receives three of them the landlords license may be revoked and the property may not be used as a rental.
‘
Do you think these fees will come out of the landlords pockets, I don't think so, I think they will be passed along to tenants increasing rents in the area.

So maybe you should attend the meeting even if your tenant.

Blaine Real Estate Market Report for October, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sat, 28 Nov 2009 19:22:11 -0600

The following is a quick analysis of the Blaine real estate market.

There are currently 221 homes for sale.
Homes are priced from $77,5000 - $2,950,000
Average Asking Price $445,449 Days on Market: 165 days
Median Asking Price $325,000 Days on Market: 129 days
Homes sold in October: 22
Average Listing Price $283,94
Average Sold Price $268,983 Days on Market 72
Median Listing Price $227,000
Median Sold Price $217,00 Days on Market: 55
Homes Pending this week: 7 Total Homes Pending: 55

Average Sales Price October 2008: $295,709
Median Sales Price October 2008: $259,950
Sold in October 2008: 20

The Average Sales price is down 9.0% compared to October 08 and up 9,5% compared to the previous month September 09.

The Median Sales prices is down 20.0% compared to October 08 and down 3.7% compared to the previous month September 09.

The number of sales is down by 2 to October 08 and is down by 12 compared to the previous month September 09.

Condo Analysis for Blaine/Birch Bay

Currently Active Listings: 84
Price range of active listings - $22,000 - $1,149,000
Average List Price $365,168 Days on Market: 210
Median List Price $264,925 Days on Market: 172
Sold in October: 7
Average Listing Price $252,479
Average Sold Price $243,714 Days on Market: 149
Median Listing Price $220,000
Median Sold Price $212,000 Days on Market: 118
Condos Pending this week: 1 Total Condos Pending: 14

Average Sales Price October 2008: $511,500
Median Sales Price October 2008: $511,500
Sold in Oct 2008: 2

If you have any questions or want to see any Bellingham Property feel free to email me at or give me a call at 360-739-6981

Ferndale Real Estate Market Report for October, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sat, 28 Nov 2009 19:17:56 -0600

There are currently 212 homes for sale.

Homes are priced from $100,000 - $1,500,000
Average Asking Price is $380,597 Days on Market are 140 days
Median Asking Price is $314,350 Days on Market are 108 days
Homes sold in October: 24
Average Listing Price $265,483
Average Sold Price $259,558 Days on the Market 87
Median Listing Price $246,750
Median Sold Price $250,194 Days on Market 67
Homes Pending this week: 5 Total Homes Pending: 49

Average Sales Price October 2008: $342,675
Median Sales Price October 2008: $319,950
Sold in October 2008: 14

The Average Sales price is down 24.3% compared to October 08 and down 2.8% compared to last month, September 09.

The Median Sales prices is down 21.8% compared to October 08 and down 6.9% compared to last month, September 09.

The number of sales is down up by 10 compared to October 08 and is equal to last month, September 09.

If you have any questions or want to see any Bellingham Property feel free to email me at or give me a call at 360-739-6981

Lynden Real Estate Market Report for October, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sat, 28 Nov 2009 19:15:09 -0600

There are currently 148 homes for sale.

Homes are priced from $112,900 - $987,000
Average Asking Price; $370,170 Days on Market are 151 days
Median Asking Price: $338,400 Days on Market are 115 days
Homes sold in October: 14
Average Listing Price $322,606
Average Sold Price $312,307 Days on the Market 69
Median Listing Price $312,450
Median Sold Price $300,000 Days on Market 43
Homes Pending last week: 5 Total Homes Pending: 29

Average Sales Price October 2008: $357,118
Median Sales Price October 2008: $343,500
Sold in October 2008: 14

The Average Sales price is down 12.5% compared to October 08 and up 16.2% compared to September 09.The Median Sales prices is down 13.7% compared to October 08 and up 14% compared to September 09.

The number of sales is equal to October 08 and is down by 1 compared to last month September 09.

Condo Analysis for Lynden

There are currently 31 condos for sale.
Condos are priced from $139,900 - $379,500
Average List Price $222,529 Days on the Market: 194
Median List Price $219,900 Days on the Market: 149
Condos Sold in October: 2
Average List Price: $209,000
Average Sales Price: $200,000 Days on the Market: 135
Median List Price: $209,000
Median Sales Price: $200,000 Days on the Market: 135
Pending Sales Last Week: 0 Total Condos Pending 3

Average Sales Price October 2008: $122,600
Median Sales Price October 2008: $122,600
Sold in October 2008: 1

If you have any questions or want to see any Bellingham Property feel free to email me at or give me a call at 360-739-6981

Sudden Valley Estate Market Report for October, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sat, 28 Nov 2009 19:12:28 -0600

There are currently 87 homes for sale. Homes are priced from $139,900 - $995,000

Average Asking Price is $312,401 Average Days on Market are 107 days
Median Asking Price is $274,900 Median Days on Market are 72 days
Sold in October: 16
Average Listing Price $279,772
Average Sold Price $272,772 Average Days on Market 89
Median Listing Price $239,450
Median Sold Price $227,450 Median Days on Market 35
Pending Sales Last Week: 3 Total pending sales: 34

Average Sales Price October 2008: $255,850
Median Sales Price October 2008: $229,250
Sold in October 2008: 10

The Average Sales price is up 6.6% compared to October 08 and up 14.9% compared to September 09.

The Median Sales prices is down 0.1% compared to October 08 and down just $50 compared to September 09.87

The number of sales up by10 compared to October 08 and is down by 1units compared to September 09.

Condo Analysis for Sudden Valley

There are currently 10 condos for sale. Condos are priced from $69,900 - $350,000

Average List Price $198,220 Average Days on the Market: 118
Median List Price $186,950 Median Days on the Market: 53
Sold in September: 0

If you have any questions or want to see any Bellingham Property feel free to email me at or give me a call at 360-739-6981

Old Town Cafe's 37 Free Thanksgiving Dinner

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Fri, 27 Nov 2009 20:22:35 -0600

For the 37^th year, Bellingham's Old Town Cafe served a free Thanksgiving dinner on Thursday, this year to 434 people. It took 29 turkeys and lots of mashed potatoes, casseroles, salads and pies and the help of about 50 volunteers. Lots of the food was donated, and it was definitely homemade and all made from scratch

Owner Diane Brainard said the volunteers start calling in August. Some of the volunteer started cooking Tuesday and Wednesday night, while others worked two shifts Thursday to provide the free feast from 10 a.m. to 3 p.m.

While the restaurant has run out of food in the past, this year's feast fed all who showed up.

Local musicians showed up throughout the day to provide holiday spirit as diners they ate their turkey dinner.

The diners were a mix of homeless people, college students and families. "It's a real community event," Brainard said. "We get people from all walks of life. A lot of these people I see once a year. I see them at this event."

Bellingham Community Donates Generously for Thanksgiving

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Thu, 26 Nov 2009 19:23:19 -0600

The Bellingham community showed the true spirit of generosity this holiday season by responding to a request by the Bellingham Food Bank who put a call out for turkeys for this Thanksgiving.

Over 1,500 turkeys were donated to the food bank so that every food bank client that wanted a turkey could get one. Visits to the food bank had up considerably this year and jumped 40% over 2007.
Among those helping out with Turkey donations were the employees and contractors at the BP Cherry Point refinery who contributed over 800 turkeys.

It is great to know that we live in such a generous community.

Whatcom County Real Estate Market Report for October, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Thu, 19 Nov 2009 23:57:08 -0600

The following is a quick analysis of the Whatcom County real estate market.

There are currently 1387 homes for sale
Homes are priced from $12,000 - $4,500,000
Average Asking Price $409,010 Days on Market: 139 days
Median Asking Price $320,000 Days on Market: 102 days
Homes sold in October: 183
Average Listing Price $299,098
Average Sold Price $289,807 Days on Market 94
Median Listing Price $262,900
Median Sold Price $258,000 Days on Market: 52
Homes Pending this week: 91 Total Homes Pending: 431

Average Sales Price October 2008: $301,847
Median Sales Price October 2008: $275,395
Sold in October 2008: 146

The Average Sales price is down 4.0% compared to October 08 and up 9.2% compared to last month.

The Median Sales prices is down 6.2% compared to October 08 and up 6.2% compared to last month.

The number of sales is up by 37 compared to October 08 and down by 16 compared to last month.

Condo Analysis for Whatcom County

Currently Active Listings: 429
Price range of active listings - $22,000 - $1,565,000
Average List Price $248,926 Days on Market: 170
Median List Price $194,566 Days on Market: 119
Sold in October: 47
Average Listing Price $210,852
Average Sold Price $204,557 Days on Market: 147
Median Listing Price $193,000
Median Sold Price $190,000 Days on Market: 97
Condos Pending (went under contract) last week: 12 Total Condos Pending: 79

Average Sales Price October 2008: $247,208
Median Sales Price October 2008: $177,000
Sold in October 2008: 22

The Average Sales price is down 17.3% compared to October 08, and down by 1.0% compared to last month.

The Median Sales prices is up by 7.3% compared to October 08 and up by 8.5% compared to last month.

The number of sales is up by 25 compared to October 08 and up by 14 compared to last month.

If you have any questions or want to see any Bellingham Property feel free to email me at or give me a call at 360-739-6981

The Lightcatcher – Whatcom Museum’s latest addition

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Thu, 19 Nov 2009 23:55:15 -0600

Whatcom Museum's latest addition The Lightcatcher has just opened this week.With the buildings architectural design and it's exhibits, the museum will be bridging the gap between art and nature, showing the beautiful simplicity of nature's form and function.

The building's name comes from the Lightcatcher wall. Designed in an arc, the 37-foot-high and 180-foot translucent wall surrounds the courtyard capturing, filtering and translating the light of the sun. The building has an interesting shape but I find it's dull sand color exterior a little boring, some vibrant color or a mural would make it a lot more interesting.

The Lightcatcher is the first museum in Washington State built to LEED Silver standards and it includes a green roof and rainwater harvesting strategies that will be used for public education.The roof manages stormwater, their is a natural ventilation systems in the Lightcatcher wall, and a cistern for harvesting rainwater, as well as a rain garden in the courtyard,

One of the premier exhibits is John Grade's architectural installation of sculptures that he calls "Bloom: The Elephant Bed," 10 bell-shaped sculptures hanging from the 26-foot high ceiling. A type of organism called coccolithophores that forms algal blooms, was Grade's inspiration for the sculpture. After millions of years of decay and deposit, their calciferous skeletons have became the basis of England's chalky white cliffs of Dover. The "elephant bed" is a layer in the chalk deposit that holds the fossilized bones of ox, deer and even mammoth. The sculptures are made of water-soluble materials and over the course of the exhibit, a few will be lowered into a pool of inky-black water where they will slowly dissolve. On Saturday, April 10, 2010 the remaining pieces will be cast into Bellingham Bay after a public procession where they will dissolve and spend eternity.

Grade's exhibit honors the natural world's state of impermanence, death and renewal; the cycle of birth and decay is nature's way of creating a sustainable habitat.

The museum's art gallery, has works that explore political, social and gender issues and show how ordinary materials and ideas can be transformed into art. The Lightcatcher building's inaugural exhibition "Out of Bounds" features more than 80 compelling works in all media - painting, sculpture, drawing, Out of Bounds is the collection of Driek and Michael Zirinsky.

The Family Interactive Gallery (FIG), formerly the Children's Museum is the Pacific Northwest's newest family attraction. Art-based activities in a dramatic setting connect visitors to our region's history and environment, the FIG promises to be a fun and engaging experience for the whole family.

The Whatcom Museum Lightcatcher is a welcome addition to the city of Bellingham.

Bellingham Real Estate Market Report for October, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sat, 07 Nov 2009 20:32:44 -0600

The following is a quick analysis of the Residential Bellingham real estate market.

Currently Active Listings: 468
Price range of active listings - $124,900 - $4,500,000
Average List Price $506,950 Days on the Market: 118
Median List Price: $379,450 Days on the Market: 85
Sold in October: 76
Average List Price: $339,339
Average Sales Price: $329,072 Days on the Market: 98
Ratio of List to Price: 97.0%
Median List Price: $273,450
Median Sales Price: $273,750 Days on the Market: 50
Ratio of List to Price: 100%
Pending Sales Last Week: 19 Total pending sales: 169

Average Sales Price October 2008: $305,045
Median Sales Price October 2008: $292,000
Number Sold in October 2008: 66

The Average Sales price is up 7.9% compared to October 08 and up 8.2% compared to the previous month September 09.

The Median Sales prices is down by 6.3% compared October 08 and up 5.3% compared to the previous September 09.

The number of sales is up by 10 compared to October 2008 and down by 6 compared to the previous month September 09.

Condo Analysis for Bellingham

Currently Active Listings: 262
Price range of active listings - $103,738 - $1,565,000
Average List Price $228,986 Days on the Market: 143
Median List Price $184,900 Days on the Market: 102
Sold in October: 35
Average List Price: $207,320
Average Sales Price: $201,597 Days on the Market: 148
Ratio of List to Price: 97.2%
Median List Price: $185,000
Median Sales Price: $179,300 Days on the Market: 93
Ratio of List to Price: 96.9%
Pending Sales Last Week: 3Total pending sales: 27

Average Sales Price October, 2008: $237,257
Median Sales Price October, 2008: $179,000
Sold in October, 2008: 17

Average Condo sale price is down 15.0% from October 2008 and down 5.9% from the previous month - September 2009

Median Sales Price is $300 or .2 %up from October 2008 and down 6.8% from the previous month - September 2009.

The number of sales is up by 18 compared to October 2008 and up by 9 compared to the previous month September 09.

If you look at the graph you can see that prices the residential market has taken a bit of a rise. Where will the graph go next month is anybody's guess. Will the roller coaster ride of prices continue?........Tune in next month

If you have any questions or want to see any Bellingham Property feel free to email me at or give me a call at 360-739-6981

The New Improved Home Buyer Tax Credit is Here

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Fri, 06 Nov 2009 15:01:40 -0600

The home buyer tax credit ,which is part of a larger bill that also extends unemployment benefits. has been approved by both houses of Congress and signed by President Obama.

First-time home buyers are still eligible for tax credits of up to $8,000. Buyers will now have to sign a purchase agreement by April 30, 2010 and close by June 30.

The new program will also expand the tax credit to include existing home owners who have owned a home for at least five of the last 8 years will be able to apply for tax credits of up to $6,500 when they purchase their next home.

The maximum price on a home will be $800,000 and vacation homes are not eligible.

The National Association of Realtors says that so far, about 1.4 million first-time homebuyers have qualified for the program and they estimated that 350,000 of these buyers would not have otherwise purchased.

The tax credit will also be extended for another year for military personnel serving outside of the United States until June 30, 2011.

Senator Johnny Isakson, who heavily pushed for the extension, along with his own version that would have increased the credit to $15,000 stated, "this bill will help us boost what is the real problem in the U.S housing market today and that is what is called the move-up market."

Today we got something to help the move up buyers that should help jump start that segemet of the market as well as the first time buyer market.

What are my closing costs for my Bellingham Home?

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Fri, 23 Oct 2009 18:59:00 -0500

Another common question from buyers as well as sellers is, "what are my closing costs?" Some typical closing costs in real estate transaction are

Title search fees - is the assurance of clear title to the property and title insurance to defend against any future claims made on the title by circumstances that were not picked up at the time of the title search. This fee is based on the price of the transaction. It will vary from one company to another but they usually pretty close to each other. Traditionally the seller will buy the title insurance policy to protect the buyer, and the buyer will buy a title insurance policy to protect the lender that is providing the loan for the transaction.

The appraisal fee - this fee is paid by the buyer to have a professional appraiser give their value of the property. The appraisal is based on recent comparable sales.

Prorated property taxes, utilities, and association fees - these fees are based on the percentage of the year, or month in terms of utilities such as water and sewer, that you own a home.

Insurance fee - you can usually expect to prepay the first year of your insurance premium

Recording fees - these are fees charged to record the change in ownership usually by the county.

Document fees - these can be fees for drawing up different documents involved in the transaction.

Escrow fees - this fee is usually shared by both buyer and seller and pays for the escrow company that is handling the transaction.

Credit report fee - this fee is for the lender to render buyers credit report.

Other miscellaneous fees - these can include courier fees, electronic transfer fees, flood determination fees, digital storage fees, retrieval fees, underwriting fees, wire transfer fees, tax service fees, e-mail document fees. You won't necessarily be paying all of these, but you will pay some of them.is

Loan origination fees and discount points - the loan origination fee can vary from 0.5 % to about 2% of the loan amount pays for the cost of providing loans. Discount points are percentage of the loan amount paid to buying down the loan rate, resulting in a lower monthly payment.

Sellers additional fees - the seller will also pay a percentage of the sales price in excise tax to the county, and commissions to real estate agents.

You real estate agent can usually give you a pretty close estimate of what most of these fees will be.

Ferndale Real Estate Market Report for September, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Fri, 23 Oct 2009 18:53:20 -0500

There are currently 230 homes for sale.

Homes are priced from $69,900 - $1,500,000
Average Asking Price is $390,513 Days on Market are 126 days
Median Asking Price is $328,5005 Days on Market are 92 days
Homes sold in September: 24
Average Listing Price $278,583
Average Sold Price $265,341 Days on the Market 81
Median Listing Price $272,000
Median Sold Price $268,750 Days on Market 55
Homes Pending this week: 10 Total Homes Pending: 60

Average Sales Price September 2008: $327,001
Median Sales Price September 2008: $304,900
Sold in September 2008: 17

The Average Sales price is down 14.8% compared to September 08 and down 9.8% compared to last month Auugst 09.

The Median Sales prices is down 11.9% compared to September 08 and down 4.0% compared to last month August 09.

The number of sales is down up by 7 compared to September 08 and is up by 3 compared to last month August 09.

Lynden Real Estate Market Report for September, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Fri, 23 Oct 2009 18:51:34 -0500

There are currently 146 homes for sale.

Homes are priced from $124,900 - $987,000
Average Asking Price; $369,443 Days on Market are 134 days
Median Asking Price: $346,500 Days on Market are 99 days
Homes sold in September: 15
Average Listing Price $275,757
Average Sold Price $268,563 Days on the Market 99
Median Listing Price $259900
Median Sold Price $258,000 Days on Market 81
Homes Pending last week: 13 Total Homes Pending: 34

Average Sales Price September 2008: $337,268
Median Sales Price September 2008: $302,900
Sold in September 2008: 16

The Average Sales price is down 20.4% compared to September 08 and up 16.0% compared to August 09.

The Median Sales prices is down 14.9% compared to September 08 and down 16.1% compared to August 09.

The number of sales is down by 1 compared to September 08 and is up by 5 compared to last month August 09.

Condo Analysis for Lynden

There are currently 34 condos for sale.
Condos are priced from $139,900 - $399,500
Average List Price $235,582 Days on the Market: 210
Median List Price $229,725 Days on the Market: 157
Condos Sold in September: 4
Average List Price: $179,088
Average Sales Price: $174,300 Days on the Market: 86
Median List Price: $168,250
Median Sales Price: $166,600 Days on the Market: 42
Pending Sales Last Week: 1 Total Condos Pending 5

Average Sales Price September 2008: $227,003
Median Sales Price September 2008: $231,560
Sold in September 2008: 5

The Average Sales price is up 8.5% compared to September 08 and down 21.7% compared to August 09.

The Median Sales prices is up 0.1% compared to September 08 and up 25.1% compared to August 09.

The number of sales is down by 1 compared to September 08 and is up by 2 compared to last month August 09.

Interest rates are still extremely low and there are some great values in the Lynden market right now. You might want to take a look at what it would cost you to purchase one of these homes at today's rates. You might be surprised at what your monthly payments would be, maybe less than your paying for rent right now if you are renting a comparable sized house.

There is only a short window of opportunity left for the First Time Home Buyer's Tax Credit of $8,000 available to anyone who hasn't owned a home in the past 3 years. You might want to talk to your banker to see what you can afford.

If you have any questions or want to see any Lynden Property feel free to email me at or give me a call at 360-739-6981

Blaine Real Estate Market Report for September, 2009

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Fri, 23 Oct 2009 18:49:36 -0500

The following is a quick analysis of the Blaine real estate market.

There are currently 255 homes for sale.
Homes are priced from $89,900- $2,950,000
Average Asking Price $459,644 Days on Market: 149 days
Median Asking Price $349,000 Days on Market: 117 days
Homes sold in September: 34
Average Listing Price $254,942
Average Sold Price $245,642 Days on Market 149
Median Listing Price $228,490
Median Sold Price $225,00 Days on Market: 66
Homes Pending this week: 8 Total Homes Pending: 60

Average Sales Price September 2008: $272,587
Median Sales Price September 2008: $223,000
Sold in September 2008: 22

The Average Sales price is down 9.8% compared to September 08 and up 11.0% compared to last month August 09.

The Median Sales prices is down 0.8% compared to September 08 and up 2.3% compared to last month August 09.

The number of sales is up by 12 to September 08 and is up by 9 compared to last month August 09.

Condo Analysis for Blaine/Birch Bay

Currently Active Listings: 94
Price range of active listings - $24,900 - $1,249,000
Average List Price $340,511 Days on Market: 213
Median List Price $232,250 Days on Market: 166
Sold in September: 3
Average Listing Price $278,267
Average Sold Price $259,667 Days on Market: 115
Median Listing Price $199,950
Median Sold Price $189,000 Days on Market: 119
Condos Pending this week: 2 Total Condos Pending: 18

Average Sales Price September 2008: $249,900
Median Sales Price September 2008: $249,900
Sold in September 2008: 1

Interest rates are still extremely low and there are some great values in the Bellingham market right now. You might want to take a look at what it would cost you to purchase one of these homes at today's rates. You might be surprised at what your monthly payments would be, maybe less than your paying for rent right now if you are renting a comparable sized house.

If you have any questions or want to see any Bellingham Property feel free to email me at or give me a call at 360-739-6981

Can I get my earnest money back?

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Fri, 16 Oct 2009 11:37:47 -0500

This is a question this often on the minds of buyers. Buyer's want to be sure they are to not going to lose their earnest money.

What is earnest money anyway? It's like a deposit to show the seller that you really interested (earnestly) in buying their property. It's usually in the form of check made out to the escrow company and held in trust accounts until the transaction closes. It can be in the form of promissory note or anything else the seller is willing to accept. The full amount of the earnest money is credited toward the purchase price of the property at closing. There is no standard amount of earnest money, it's commonly about 1 percent of the purchase price. If the buyer really wants to impress the seller they will make it a lot higher to show them that they are really earnest about purchasing their property. Or make it nonrefundable after certain conditions are met.

As far as getting the earnest money back goes, as long as the buyer is careful about meeting contract deadlines the earnest money is usually safe or refundable. As a buyer you must be aware that you need to apply for financing (if there's a financing contingency) within five days of mutual acceptance (that's the date all timelines run from.) You to have your home inspection and response to the seller within ten days. Usually the the first ten days is the easiest time to get your earnest money back because of that inspection contingency. The contingency is subjective and you don't like something in the inspection report or even the color of the front door, you can check the box on the inspection response that says "Buyer' s inspection of Property is disapproved and the Agreement is terminated. The Earnest Money shall be refunded to the buyer." As you can see you don't even have to give a reason.
After this ten days of buyers earnest money is usually in jeopardy of being forfeited to the seller.
There are other circumstances where a buyer can get their earnest money back. If there is a financing contingency and within 30 days the lender turns the buyer down for a loan they can get their earnest money back. If the appraisal doesn't meet the purchase price and the seller is not willing to reduce the price or the buyer and seller can't come to some new agreement based on appraisal the buyer can get the earnest money back.
If the contract runs until closing and the buyer decides to walk away at the last-minute and go to Costa Rica instead of purchasing the property, the seller is surely going to keep the earnest money.

If you have any other questions about earnest money or anything else to do with Bellingham real estate feel free to give me call at 360-739-6981

Totally Remodeled - Affordable Home - $160,000

Michael Eisenberg, Bellingham Realtor (eXp Realty) — Sun, 11 Oct 2009 14:00:02 -0500

Conveniently located between Bellingham and Mt. Vernon

3 Bedrooms, 1.5 Bath Rooms, 1100 Sq. Ft. - $160,000

Address: 1767 Lake Samish Rd, Bellingham, WA 98229

Don't let the outside fool you. This home has been completely remodeled inside. Everything inside is new and beautiful. There is also a large garage/shop behind the home. The roof is new.

Great deal for a first time home buyer - if you hurry you can still get an $8,000 tax credit if you buy this home.