Edy Kizaki

Spring Market Looking Good with lots of listings Pending

February 18, 2012 in Buyer's Handbook, Real Estate 411, Seattle Investor's Guide

House in Ballard341 new listings
274 list price reduced
20 list price increases
57 listings expired
392 listings pending
204 listings sold
50 listings canceled

These are the ONE DAY stats for the changes in listed properties on the market this morning.  I do keep an eye on these, because it’s quite informative when you compare the new listings come on the market to the ones that pended today.  The “solds” are interesting too… not every property that “pends” actually gets to “sold” because some of these deals fall through due to financing, inspection, or other failures.  But how many went under contract versus how many sellers newly put their property on the market?  If many came onto the market but not many went under contract, we can note that there are not that many proactive buyers out there.  Sometimes the number of new homes on the market is greater than the pendings… a slower feeling market that might be called a buyer’s market if other factors feed in.  On the other hand, many more homes went under contract than new ones came on today?  The buyers are actively making offers and going under contract, there is competition out there.  A lot of times this last year the number of new properties and the number of pendings are about the same.  Today there are significantly more pendings than new listings, indicating a lot of buyer activity.  In this atmosphere if you see a new property you really like, all other things being equal it’s better to move more quickly and make an offer before you get into a competitive situation.  Would love to see comments, questions, and discussion on this!

Win With Your Real Estate Investment Strategy

November 26, 2010 in About Edy and the Team, Seattle Buyer's Guide, Seattle Investor's Guide

Investing In the Seattle Real Estate Market

The market is ripe for investing in real estate for a couple of reasons: first, prices are the lowest in many years; and secondly, financing rates are also the lowest in over 20 years.  So what’s holding everyone up?  Primarily, the current economic disaster is keeping people from committing to expand their resources into the market.   Why is that?  Because people are getting inundated with news about “short sales” and “foreclosures”  and are afraid to make a mistake.  This is understandable as most of us don’t want to lose what we have.

A key to investing in real estate today is ensuring that the investment will survive outside of you.  What that means is that if you decide to purchase real estate for investment, what is your end result and how do you get there without much risk.  Depending on the levels of investment into the property that you can make it is still possible to purchase single or multi-family properties (1-4 units only) with manageable risk.  If your goal is long term, which is the only way to invest in real estate, then you need to evaluate the property for what it could potentially rent for and what the accompanying expenses to owning the home is.  Once you know what both are, you put enough down to cover the expenses and provide you with a margin for future major expenses such as roofing, replacing hot water tanks…etc.  Now do not take the highest possible rental rate and evaluate it by that but take what is the lowest amount it could rent for and use that figure.  The reason for that is simple, if the home can still generate the income to cover the expenses at it’s lowest rental rate, anything you get above that is gravy.

Now, how you get the home at a low enough cost and financing at the rate necessary is  a function of how good your real estate broker is, how willing the seller is and how much you have to put down.  Luckily, there are so many houses on the market that you can find a willing seller if you look hard enough.  If one isn’t willing to negotiate, move along.  For whatever reason, they need to sell, otherwise the house wouldn’t be on the market, but you don’t have to but that house as there are others.

Previously, we mentioned multi-family but only 1 – 4 units, why?  Anything less than four units is considered residential and can qualify for 30 year fixed rates, which is what you want.  More units than that is considered commercial and will have short term, usually three to five years and fees at inception and every renewal.  This is very high cost investing.  It is much easier to budget knowing what your payments are for the next thirty years.

Oh and by the way, do not finance using an adjustable rate mortgage.  In most cases, this is like taking a house and giving it commercial type terms.  Sure you might get a good initial rate but unless you’re going to sell it in a short period of time, it will probably end up being more expensive financing as you will be paying fees every time you have to renew it.  Remember, investing in real estate today should be considered long term.

We are currently putting together a Seattle Investment Handbook for small property investors (1-4 units) and would be glad to send you the complete handbook, just email Edy at edy@seattlecentric.com.

Edy Kizaki

Bank Owned Properties in Green Lake (Seattle)

November 21, 2010 in Green Lake, Seattle Investor's Guide

My curiosity got the better of me.  If there are 6 bank owned properties currently for sale in Queen Anne (but four of those are a quadruplet of townhomes), 3 in Magnolia (one at $400,000 and two over a million), how many are there in Green Lake, and what do they look like?

There are three right now.  And the prices!  All three of them are under $350,000.  As always, let me know if you want me to take some photos of any of these for you.