Dasmarka Real Estate

Buying a home should be fun, not stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.

1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the REALTOR® you chose is both highly skilled and a good fit with your personality.
2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer — you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make that much difference in price, and a good home won’t stay on the market long.
3. Don’t ask for too many opinions. It’s natural to want reassurance for such a big decision, but too many ideas from too many people will make it much harder to make a decision. Focus on the wants and needs of your immediate family — the people who will be living in the home.
4. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped. The kitchen may be perfect, but the roof needs repair. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
5. Don’t try to be a killer negotiator. Negotiation is definitely a part of the real estate process, but trying to “win” by getting an extra-low price or by refusing to budge on your offer may cost you the home you love. Negotiation is give and take.
6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself — room size, kitchen, etc. — that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.
7. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving. Presenting an offer contingent on a lot of unresolved issues will make your bid much less attractive to sellers.
8. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.
9. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
10. Choose a home first because you love it; then think about appreciation. While U.S. homes have appreciated an average of 5.4 percent annually over from 1998 to 2002, a home’s most important role is to serve as a comfortable, safe place to live.
Call me. I have a great program that will let you look at all the homes on the NWMLS and let you save your favorites, see photos and much more.
Lonnie Snyder
REALTOR®
Keller Williams Realty Southeast Sound
Phone: 206-406-2710
E-Mail : snyder@kw.com
Website: http://www.callsnyder.com/
Blogsite: http://renton-real-estate.blogspot.com/
Lonnie Snyder is a full time real estate agent and REALTOR® with Keller Williams Realty specializing in Residential Real Estate for buyers and sellers in Washington’s Kent, Renton, Newcastle and South Bellevue.

The following information about EIFS should prove to be useful. We hope that it helps you in determining what EIFS is, and what the potential challenges are with this product.
What is EIFS?
Exterior Insulation and Finish Systems (EIFS) are multi-layered exterior wall systems that are used on both commercial buildings and homes. EIFS were introduced in the U.S. almost 30 years ago and were first used on commercial buildings and then later on homes. EIFS typically consist of an insulation board made of polystyrene foam (which is secured to the exterior wall surface with an adhesive and/or mechanical attachments), a water-resistant base coat applied on top of the insulation and reinforced with fiberglass mesh, and a finish coat typically using acrylic co-polymer technology. This type of system is often referred to as artificial stucco.
The Potential Problem with EIFS
The potential problem with EIFS is that moisture can get trapped behind the highly water resistant material with no way out. This can cause the framing to rot and foster the growth of mold between the exterior and interior walls. Damp and rotting wood is also a prime target for subterranean termites. It should be stated that the potential for these conditions exist with any type of exterior siding product be it brick veneer, wood, or vinyl siding. The potential for this condition with EIFS however can be exacerbated by its superior water resistance. Once moisture gets in, regardless of its origin, it usually has no escape.
EIFS Challenges
The main locations where water tends to infiltrate into the framing structure of a building using an EIFS is around doors and windows, where the roof connects to the EIFS (roof flashing), and below extended exterior deck connections. Also, any moisture from within the home trying to find a path out will likely be thwarted by the EIFS. The EIFS industry has been plagued by class action, and individual lawsuits (particularly in humid climates). The public's confidence in the products have been shaken to say the least. The lawsuits contend that the problem is with the nature of the product and the manufacturers contend that sloppy installation and poor maintenance are the culprits. Regardless of who is "right", its clear that homes with EIFS require special scrutiny during inspection.
Sincerely, George Rinehart
Rinehart Inspection Services, LLC
email: g_rinehart@hotmail.com
phone: (206) 901-1549
web: http://www.rinehartinspections.com

Questions from my blog readers.

Rayz said...
Looking at the current market trend, I’m afraid that a house I buy today will not be worth what I paid down the road. Right now I'm concerned whether I should play the waiting game some more. Also I would like to know how are these cash for properties schemes. Are they any good?

First I would like to thank everyone for stopping by and checking my blog. It was a little tuff getting started but my business strategy is to help people and the work will come. I didn’t buy my first home until I was 34 years old. I owned my own business for 10 years but was totally clueless on what was involved in buying a home. I was one of the lucky ones that happen to find a Realtor that cared about his clients. It wasn’t until I decided to become a Realtor and had finished my first year of work that I realized on just how much he had help us find the right home. I have heard many horror stories and have seen those who only care about the paycheck. I want to be the Realtor that helps his clients they way I was helped.

Now about the question. The market in our area was on overdrive. When the national average growth was 2.5% we were seeing 4.5% increase on home prices. Then lenders (the ones that only care about the paycheck) where telling clients that if you buy now we will get you money in 3 years to pay off your debts and keep your house payment the same for you. Well buying a property is an long term investment, you can't expect price boom in a year or two, the market will correct itself as it is doing now and things will get back to normal. Most Realtors believe that we are close to bottoming out in our area and I agree on that. We are fortunate with the area that we are living in. There are other areas getting a much larger down swing than what is going on here. Another large factor is that interest rates are still low. Now for an example say you want to pay around $3,000 a month on your home loan with everything included for taxes & etc. At 6% interest you’re looking at a loan amount of about $428,000 but if the interest goes up to 7% now to keep your payment at $3,000 you are looking at a loan of $382,000. You could wait to get a little better price but I don’t believe that home prices will drop over $45,000 to equal the change in the interest rates. True there is a lot more involved in setting your loan up with credit scores & down payments but I’m sure you get the main point.

Second on the cash for properties. There are a very small few, maybe 1% that this is a good idea for and even fewer that can qualify for it. The main goal here is to make that phone ring (only caring about that paycheck again). The nice thing for the people that run these ads are when someone calls them they know that person is looking to do something quickly. Now unhappily there are all kinds of persons in whatever business you’re doing and there are those who care and those who don’t. Even if you are “Upside down” on your home there are true Realtors that can help you. Sometimes it is not the answer you where looking for but there should always be a win for you and a win for me in anything we do.
I have wonderful tools that can help you be informed on what the market is doing today. If you would like to move forward on buying or selling a home please give me a call.
Lonnie Snyder
REALTOR®
Keller Williams Realty Southeast Sound
Phone: 206-406-2710
E-Mail : snyder@kw.com
Website: http://www.callsnyder.com/
Blogsite: http://renton-real-estate.blogspot.com/
Lonnie Snyder is a full time real estate agent and REALTOR® with Keller Williams Realty specializing in Residential Real Estate for buyers and sellers in Washington’s Kent, Renton, Newcastle and South Bellevue.

Now truly is a great time to buy a home. If you--or someone you know--is ready to move up or become a first-time owner, if you plan to stay a few years and you've been waiting for the perfect time to buy--now is that time.
Here's why. Housing cycles cure themselves. Prices soften, inventories rise, savvy buyers snap up bargains, demand increases, and the market returns to normal. As buyers return that demand pushes home prices up and mortgage rates higher, according to housing economists and past history. Higher prices and higher rates mean waiting today costs you more tomorrow.
The secret is to buy while the headlines are gloomy, secure an affordable fixed-rate loan and enjoy the home you want to live in before the advantage of today's market passes you by. By taking a long-term view--as a home investment should be seen--you can weather temporarily lower prices in the area while the market corrects if you buy now with a fixed payment.

Consider these reasons why our experience shows this is a great time to buy:

1. Take your pick. Gone are the days when there were more buyers in the market than homes for sale. Then, options were few and many buyers felt they had to take what they could get whether or not it was the ideal home for them. Now, the reverse is true: There are lots of homes to choose from, and buyers can afford to be picky. Also buyers are no longer competing with property "flippers" and other investors in the marketplace.
2. Do your homework. With more properties on the market, buyers no longer feel pressured to put an offer on a home before another buyer snaps it up. Instead of making a decision on the spot, buyers can actually spend quality time visiting several homes and make a decision on their own timetable.
3. Make an offer. In the sizzling seller's market, buyers were outbidding one another--sometimes offering amounts thousands of dollars above the list price of the home they wanted. Today, buyers don't have to engage in bidding wars and--bonus--they're finding sellers more willing to entertain their offer.
4. Negotiation encouraged. In the past, many buyers, striving to gain the upper hand in bidding battles, waived contingencies for home inspection, pest, roof or sewer inspections. Sellers were able to sell their homes "as is" to buyers willing to shoulder the cost of repairs. These days, however, more buyers are shopping for warranties and asking for inspections, and, if problems are uncovered, they can reasonably expect sellers to negotiate to get a closed sale.
5. You can't beat the location. Want to live closer to work? In a better school district? Near the town center? In a larger--or smaller--home? You may be surprised at the abundance of possibilities out there that are a much better buy these days.
6. Bargains available. Qualified first-time buyers, down-sizers, second-home buyers, rental investors and others can find bargains today--if you know where to look. Bargains are available from owner short sales, lender-owned foreclosures, builder close-outs, executive relocation properties, estate sales, even tax and condemnation sales. If you are looking for a below-market value, we can help.
7. Affordable payments. Interest rates on a 30-year fixed-rate mortgage have been hovering near 6% this year. Compare that to the average interest rate 10 years ago on a 30-year fixed, which was 6.94%; 20 years ago, 10.34%; and 30 years ago, 9.64%. From an historical standpoint, today's interest rates look terrific. Combine low rates with low prices to get low payments, and you know why now is a great time to buy.

Lonnie Snyder

This is a newsletter with information about a specific piping known as poly piping. This will explain what it is, how to identify it, and whether or not it will fail. We hope this information is valuable for you.
Polybutylene is a form of plastic resin that was used extensively in the manufacture of water supply piping from 1978 until 1995. Due to the low cost of the material and ease of installation, polybutylene piping systems were viewed as "the pipe of the future" and were used as a substitute for traditional copper piping. It is most commonly found in the "Sun Belt" where residential construction was heavy through the 1980's and early-to-mid 90's, but it is also very common in the Mid Atlantic and Northwest Pacific states.

The piping systems were used for underground water mains and as interior water distribution piping. Industry experts believe it was installed in at least 6 million homes, and some experts indicate it may have been used in as many as 10 million homes. Most probably, the piping was installed in about one in every four or five homes built during the years in which the pipe was manufactured.


Exterior - Polybutylene underground water mains are usually blue, but may be gray or black (do not confuse black poly with polyethelene pipe). It is usually 1/2" or 1" in diameter, and it may be found entering your home through the basement wall or floor, concrete slab or coming up through your crawlspace; frequently it enters the home near the water heater. Your main shutoff valve is attached to the end of the water main. Also, you should check at the water meter that is located at the street, near the city water main. It is wise to check at both ends of the pipe because we have found cases where copper pipe enters the home, and poly pipe is at the water meter. Obviously, both pipes were used and connected somewhere underground.
Interior - Polybutylene used inside your home can be found near the water heater, running across the ceiling in unfinished basements, and coming out of the walls to feed sinks and toilets. Warning: In some regions of the country plumbers used copper "stub outs" where the pipe exits a wall to feed a fixture, so seeing copper here does not mean that you do not have poly.
While scientific evidence is scarce, it is believed that oxidants in the public water supplies, such as chlorine, react with the polybutylene piping and acetal fittings causing them to scale and flake and become brittle. Micro-fractures result, and the basic structural integrity of the system is reduced. Thus, the system becomes weak and may fail without warning causing damage to the building structure and personal property. It is believed that other factors may also contribute to the failure of polybutylene systems, such as improper installation, but it is virtually impossible to detect installation problems throughout an entire system.

Throughout the 1980's lawsuits were filed complaining of allegedly defective manufacturing and defective installation causing hundreds of millions of dollars in damages. Although the manufacturers have never admitted that poly is defective, they have agreed to fund the Class Action settlement with an initial and minimum amount of $950 million. You'll have to contact the appropriate settlement claim company to find out if you qualify under this settlement.

We hope this information is useful, and invite you to visit our website at http://www.rinehartinspections.com/ for further information about action items that need to be addressed in homes. Mention this newsletter and receive $100 off a full house inspection! We guarantee that we will be on the inspection at the time and day you need it or your inspection is free! (Major holidays excluded. Must be in daylight hours.)
Sincerely, George Rinehart

Rinehart Inspection Services, LLC

Are you thinking about buying a home with current prices dropping to a 3 year low? Here are 5 questions that you can ask yourself to see where you stand.

1. Is our rent equal to a loan payment? If you can afford to buy, it can give you one bonus that renting cannot—the lucrative tax breaks that come with owning a home:
   * Deductions for payments of mortgage interest, loan discount points and real estate taxes.
   * Home-office deductions for qualified owners.
   * Deductions for expenses if you rent out your property.
   * Home-sale capital-gains exclusion—profits up to $500,000 tax-free!
2. Are prices in our preferred area steady? In many areas of the country—even in areas with high foreclosure rates—there are neighborhoods where homes are holding their value or increasing in value while price decline is slowing.
3. Will our equity go further where homes cost less? By moving to a place where homes are less expensive—and general living costs are lower—your money will go a lot further a lot longer.
4. Will we live in this home for several years? Financial planners often advise buyers to think of real estate as you would any other large investment: The longer you hold your home before selling, the higher the probability you'll ride out any downturn and come out ahead on price when you decide to sell.
5. Is this the perfect home for us? The schools are fantastic. The proximity to your office, gym, favorite stores can't be beat. You love the area and the home, and you won't find another one like it. In a better market, you would most likely have much more competition for that home.
   If you have any questions or would just like to look around at the homes in your area I have a great program that will let you do that. Call or send a quick email to let me set up your personal web page to have full access to the homes on the NWMLS.
   

Lonnie Snyder

In today's new real estate market the time for hesitation is past. Now is the time for action. To take advantage of the new market, the reality is clear—don't wait:

• If you are ready to move to a home where you would rather live;
• If you can afford a conventional fixed-rate loan;
• If you plan to live there or own it for several years; now is the right time to move or buy a first home, second home or rental.

Waiting rarely pays off for many reasons.I will share with you what we've learned from experience.

Recent Sales

Homes are selling in our area. Yes, there is more inventory. Yes, time on market is longer. Yes, loan requirements are tighter. Yes, there are more short sales, bank-owned foreclosures and rental bargains that pull average prices lower. But look beyond national headlines. Our local housing market is not a “bust,” “collapse,” “meltdown,” or “crash” of zero sales. In reality, good properties—high-end, middle-market, even low-end—are selling (ask us for the latest area sales figures), especially with more sellers being realistic about their asking prices to compete. Waiting simply misses out on these good values.

New Buyers

Demand is increasing because today's market has attracted “new buyers,” such as pent-up “should-have-moved” locals who put off moving in recent years; boomers with equity looking for second homes; international buyers who see properties priced to sell and enjoy favorable exchange rates; first-timers with parent and grandparent support; resized new construction that's smaller, lower-priced; long-term investors with a goal to “buy low, sell high” years from now. These buyers are buying now.

Interest Rates

Even though rates are around historic lows, demand is what makes home prices stabilize, demand makes sellers less willing to negotiate and demand pushes interest rates higher. Higher interest rates eliminate savings from lower prices. For example, if you bought a $218,900 home 12 months ago at 5.5%, your monthly payment (principal and interest) would be $994 (assume 20% down payment, 30-year fixed-rate loan). If you bought the same home today at $197,010 (assume a 10% price drop) at 6% your monthly payment would be $994. In addition, temporary increases of jumbo loan limits to $729,750 (highest-price markets) expire December 31, 2008. By waiting, any savings from a lower price may be offset by higher financing costs.

Bottoms Up?

No one can pinpoint the “bottom of the market”—except historians with hindsight. Why? Housing markets don't “bottom.” Instead, after a period of price declines, leading indicators gradually correct: Transaction volumes increase, days on market decline, prices become steady, inventory sells off, the range between list price and sales price shrinks, builders withdraw incentives as land prices and material costs rise. Indicators reflect the rebound as the housing market adjusts—but the best properties are already gone.

Simply put, the best time to buy is now, as long as you're buying the right home, at the right price and on the right terms. Call me.
Lonnie Snyder