I follow the Bellingham real estate market very closely. As I was looking through the new homes that came on the market this morning, I was overwhelmed by the number of new homes priced way too high. The real estate market has begun to pick up, but by no means are things going gangbusters.

Note to Sellers

You need to be very careful when pricing your property in this market. Assuming that you have chosen to work with a knowledgeable real estate agent, you really need to listen to them. When they suggest a listing price, you should strongly consider their advice. The days of putting a steep price on a property to “see what happens” are long gone. I will tell you what will happen. Your house will not be shown by anybody and you will become very frustrated.

Good Deals Bellingham

There are some good deals on the market right now and some of the homes being listed today are great deals. I still feel firmly that the best deals are being offered by the motived sellers in this market. I suggest that you don’t fall into the trap of foreclosures and short sales. You will only end up wasting time and money. You are far better off working with a seller that has the financial capability to give you a good deal.

Subscribe to Find the HOT Deals

I am no longer publishing my Hot Buys blog. If you would like to subscribe to my list of hot buys in Bellingham. Send an e-mail to Ryan (at) RyanMartinRealEstate.com with HOT BUYS in the subject line and I will get you on the list.

That is it for now. Over and out.

7 Things to Consider When Buying Condos in Bellingham

1. Parking - Most condos offer underground parking or assigned cover parking. Typically the parking will be assigned in condominiums without covered parking. Make sure that you can get at least assigned 2 parking spaces if they are available. Also be sure that there is adequate guest parking. Sometimes condos do not offer enough spaces for guests, which make social gatherings nearly impossible to host.

2. Special Assessments - The financial strength of the condominium association is very important. As condos become older, this becomes even more important. When condominium associations fail to collect enough money for repairs and maintenance, their alternative to is ask the condo owners for money in the form a special assessment. Typically special assessments occur when roofs, siding and balconies are in need of replacement. The biggest mistake that you can make when buying a condo is incurring an unexpected special assessment after closing.

3. Windows - The exterior windows of a condominium are typically the responsibility of the homeowner. However, the association is usually in charge of the type of windows that can be installed. If you are considering a condo that is located near a busy or noisy street, be positive that the windows will block most of the sound. This is something that you will not be able to change and it is important that you are satisfied before making a purchase.

4. Location of Unit - The location of a unit within the condominium building is often the most important factor of value. The most valuable condominiums are nearly always located on the corner of the top floor. These units also typically the largest. The only reason that the top floor corner unit would not be the most valuable would be if the condominium does not have an elevator. If the condominium does not have an elevator the ground floor corner unit will likely be the most valuable in the building. Also consider units south and east to maximize sun exposure. This is very important if you like to grow plants or live in a sun deprived location.

5. Insurance - There are two basic types of insurance on condominiums. The first type of insurance is the association’s insurance policy. This is paid out of the association dues and covers all of the common areas of the condominium building. Make sure to check if the association has earthquake insurance if you are looking in the Bellingham area. This will likely have an effect of the interest rate of your loan. The second type of insurance is homeowners insurance. This insurance policy is paid for by the homeowner and covers everything inside of your unit. Homeowners insurance on condominiums is less expensive than homeowners insurance on a house.

6. Owner Occupancy Ratio - The percentage of occupants that are owners vs tenants will have a direct effect on the value of your condominium. A high ratio of owner occupancy is a sign of stability to lenders, which translates to lower interest rates a less money required for a down payment. If the opposite is true and there are more tenants than homeowners, lenders will be more hesitant to loan money on the condominium and the value will be less. Note that some condominium associations have restrictions on the percentage of rentals that are allowed for this reason.

7. Pet Restrictions - People love their pets and pet restrictions can be the source of a lot of hardship when looking for condos. If you are a pet owner, MAKE SURE to check the pet restrictions before purchasing or even considering a condominium. Pet restrictions can range from small house cats only, to 40lb weight limits on dogs to strictly behavior based pet restriction.

Begin your search now for Bellingham Condos right now.

Bellingham Foreclosures & Short Sales

There is a common misperception about foreclosures and short sales that has been spreading like wildfire. It is a fact that short sales and foreclosures have been increasing at a national and local level. It is NOT a fact that short sales and foreclosures are the best deals in real estate.

Why are short sales and foreclosures not the best deals in real estate?

Understanding the cause of most short sales and foreclosures reveals the reason why they are not the best deals. Currently in Whatcom County and Bellingham, approximately 50% of the foreclosures and nearly all of the short sales are the result of recently refinanced loans. Homeowners simply borrowed more than their homes are worth.

In the case of short sales, it is true that banks are now settling for less than the full value of the loan, but the full value of the loan is more than the home is worth.

Case Example A: Home was purchased for $350,000 in 2005. The market value was $400,000 in 2007, so homeowner refinanced a new loan of $380,000. Homeowner can no longer afford the payments on a loan of $380,000, so they want a short sale to get out. They decided to list their home for $360,000 (which is the current fair market value of the home) and hope that the bank will take it.

The example of the foreclosure is exactly the same as the short sale, except for the fact that the bank already owns the property. In both cases the banks and sellers are selling homes at fair market value.

Where are the best deals on foreclosures in Bellingham?

The answer is that the best deals are actually the homes in the same neighborhood as the foreclosures. They just happen to be located next door. The neighbors that were fiscally responsible are the ones who can afford to sell their homes for less money. Consider the house located next door to the short sale in Case Example A.

Case Example B: The homeowner next door is in trouble and attempting to sell their house in a short sale for $360,000. The neighboring homeowner bought their house in 1999 for $200,000. They initially borrowed $175,000 and have been making their payments. Something happens (death, divorce or…) and they really need to sell their home right away. Their home is exactly the same as next door, with the exception that their home is very well kept. Because their real estate agent informed them that only 1 out of every 10 homes in Bellingham and Whatcom are selling every month, they choose to list their house for $350,000 because they just want to get it sold. They get an offer right away for full price. They clean the house move out.

So the question is….. are foreclosures and short sales really the best deals?

Call Ryan Martin at 360-319-0040 if you would like to know what the best deals in Bellingham really are.

I am proud to announce the launch of the new and improved RyanMartinRealEstate.com website. For those who have followed my real estate career over the years, you have probably noticed this website go through a lot of changes. This was actually the first of many real estate websites that I have created dating back to June of 2003.

One of the biggest changes is the new “Northwest style” look. I really wanted to create something different than the typically real estate website this time, so I took a bold step and decided with a green theme. I hope that you like it 

Another major change to the website is this blog. Anyone is welcome to comment on this blog, so as long as it is deemed appropriate. I will be writing a couple of posts a week, so be sure to check back in with me.

That is about it for now. You are welcome to comment on this post about the new look of the website. If there is something that is not quite working yet, please let me know.

All the best,

Ryan A. Martin