Informed consumers considering a home purchase today want to do the right thing and plan ahead. Many do not seek immediate professional guidance from a Realtor or a mortgage loan officer. Instead, they hunt for hours online, looking at numerous websites for available homes for sale.

They also consult websites to find the best interest rate and terms for future monthly mortgage payments. Many consumers feel betrayed, cheated and at times embarrassed to learn that the credit scores they counted on, to get that specific interest rate for their loan, are not used by mortgage lenders. When shopping for a good mortgage interest rate, consumers also need to know their credit score, and utilize an online mortgage calculator to compute future monthly mortgage payments.

A Google search for “credit score” will yield hundreds of results. The consumer accepts the provider’s terms and conditions to get a free credit score. Terrific! Unaware that in exchange they just received a meaningless credit score that lenders never use. They also handed over their Non-Public Personal Information (NPPI) to that credit score provider for life. Before we go any further, let’s look at available credit scoring products available to consumers today:

• FICO credit score from Fair Isaac Corporation/myfico.com, range 300 to 850
• Plus Score from Experian, range 320 to 830
• Trans Risk Score from TransUnion, range 300 to 850
• Equifax Credit Score from Equifax, range 300 to 850
• Vantage Score from all three bureaus, two ranges, 300 to 850 and 501-990

What is a FICO Score?

In 1958, Bill Fair and Earl Isaac, a mathematician and engineer, formed a company in San Rafael, California. They created tools to help risk managers make a better decision when taking financial risk. Today, 90 percent of all lenders use the FICO score, first created in 1989 by Fair Isaac, and it’s the only score Fannie Mae and Freddie Mac, the Federal Housing Agency and Veterans Affairs will accept in underwriting loans they guarantee.

What is a Consumer Score?

The three credit bureaus, in their understanding of the credit scoring model created by FICO, decided to create their own scoring models, and in 2004 – 2006 they unveiled the “consumer” scores: Plus Score, Trans Risk Score, Equifax Credit Score, and Vantage Score. However, these are not genuine FICO scores, and mortgage lenders don’t use them. Consider this comparison: Would you buy a watch that gives the approximate time of day? The three credit bureaus work with major financial institutions, professional organizations, comparison sites, personal finance businesses, clubs such as Costco, AAA, Sam’s Club, and many data-mining brokers to bombard consumers in the race of the free credit score mania, all with the enticement of a “consumer” score that is not used by lenders, in hopes of obtaining subscriptions or fees from consumers. Fees that are totally unnecessary!

Know Your Score

Gaining access to one’s own credit report and credit score prior to loan approval with no strings attached could be helpful, and at all times beneficial. With little effort, inaccuracy of information can be instantly corrected at the credit bureau level, and with a few simple steps, credit scores could be enhanced. For example, paying down revolving account balances before a creditor’s statement-ending date (the creditor later updates account information with the credit bureaus), thus reducing revolving account balances at a particular point in time, will positively add more points to a score. It’s priceless.

More Information

Consumers have a legal right to access their annual credit report at no charge once a year from annualcreditreport.com, a site sponsored by the three major credit bureaus: Experian, Equifax and TransUnion. These reports provide all the basic consumer data, but do not reveal a credit score. If you have a need for the FICO credit score that is actually used by mortgage lenders, myfico.com is the website to visit. For $19.95 per bureau, consumers can purchase a customized credit report with a genuine FICO score. Additional websites to visit: the Federal Trade Commission (ftc.gov) and the Consumer Financial Protection Bureau (cfpb.gov) for true answers to questions about any financial concepts, financial products, dispute and complaint submissions, and much more.

If you have more questions about credit scores, give us a call, text or email. We can put you in touch with a quality lender.

-Steve and Sandra

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

206-769-9577

stevehill@windermere.com


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Find out what your home might be worth in today's real estate market online and fast. See for yourself without talking to anyone.

http://www.seattlewahousevalues.com/

The National Association of Realtors (NAR) compiled data from research conducted by the Bureau of Economic Analysis & Macroeconomic Advisors on the economic impact of a home purchase. After reviewing the data, they concluded that the total economic impact of a typical home sale in the United States is an astonishing $52,205. Here is the breakdown of their report: 

• Home construction
• Real estate brokerage
• Mortgage lending
• Title insurance
• Rental and Leasing
• Home appraisal
• Moving truck service
• Other related activities

$15,912 of income is generated from real estate related industries. New homeowners spend an additional $4,429 on consumer items such as furniture, appliances, and remodeling. It generates an economic multiplier impact. There is a greater sense of community associated with owning a home; therefore there is greater spending at restaurants, sports games, and charity events. The size of this “multiplier” effect is estimated to be: $9,764 Additional home sales induce additional home production. Typically one new home is constructed for every 8 existing home sales. Therefore, for each existing home sale, 1/8 of new home value is added to the economy, which is estimated in the U.S. to be: $22,100

For all of your Seattle WA area real estate needs, give us a call, text or email. We would love to help you contirbute to our US economy.

In a recovering market, some sellers might be tempted to try and sell their home on their own (FSBO) without using the services of a real estate professional. The real estate agent is a trained and experienced negotiator. In most cases, the seller is not. The seller must realize the ability to negotiate will determine whether they get the best deal for themselves and their family.

Here is a list of some of the people with whom the seller must be prepared to negotiate if they decide to FSBO:

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies which work for the buyer and will almost always find some problems with the house.
• The termite company if there are challenges
• The buyer’s lender if the structure of the mortgage requires the sellers’ participation
• The appraiser if there is a question of value
• The title company if there are challenges with certificates of occupancy (CO) or other permits
• The town or municipality if you need to get the COs permits mentioned above
• The buyer’s buyer in case there are challenges on the house your buyer is selling.
• Your bank in the case of a short sale

If you are considering selling your home, talk to us first. Let us help you negotiate top dollar for your Seattle WA area home.

-Steve and Sandra

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

206-769-9577

stevehill@windermere.com


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We found this article so compelling we wanted to share it with you.

By Bryan Robertson
Real Estate Broker/Owner
Catarra Real Estate, Inc

Dear Home Buyer or Seller,

You've been so patient with the real estate industry and for that, those of us who know what we're doing, are eternally grateful. You've been suffering through poor performance for so long that you now trust a website more than the agent you meet at an open house. We understand, really, that it's hard to put a major financial and legal decision in the hands of someone who clearly lacks the expertise, experience, or care to be helpful.

What nobody told you is that most agents will not sell one single property this year. Shocking, right? Not really. They didn't sell one last year either. You should be concerned when the person you hire knows less than you do, right? The Internet has made you pretty smart. That's a good thing, for the good agents.

You see, like many other industries this is a numbers game.  The more we have, the more dues we get, and that's good for us…but not so much for you. Unfortunately, the professionals who do offer knowledge and experience in finance, law, negotiating, contracts, disclosures, and marketing – are far outnumbered by those who…don't.

The overwhelming poor service you've experienced comes from decades of some agents being "commission chasers". We're truly sorry about that! To stop this practice all you have to do is…stop hiring them. It's a vicious cycle and we need your help. Resist the urge to hire someone because you have a tenuous personal connection. Hire someone who actually knows what they're doing and can prove it. Research, interview, and hold to a high standard.

The REAL real estate professionals…

• care
• work hard
• have deep knowledge
• have extensive experience
• …all of which you can't get from a website.

For example, a good listing agent will …

• Create a marketing plan that involves more than just the MLS
• Explain the marketing strategy to you and answer your questions
• Help prepare your house for market; cleaning, repairs, staging and more
• Take photos that highlight the best your home has to offer (no date stamps and dark halls!)
• Write a nice, thoughtful description of your home (more than just a single sentence)
• Make sure all the major benefits of your home are known to buyers
• Create a high-quality brochure suitable for selling a home (on good paper too!)
• Take the time to explain the contracts, disclosures, and other legalities
• Focus on your needs and not the commission
• and so on…

A great buyer's agent will…

• Guide you through comparing towns, neighborhoods, and homes to help you decide
• Point out pros and cons of the decisions you make
• Recommend properties before you find them on Zillow, Trulia, or other portals
• Explain the purchase contract, disclosures, and other obligations
• Show you property personally (instead of relying on open houses or listing agents)
• Inspect the property themselves to point out any issues
• Never "throw you under the bus" during negotiations
• Follow up after the sale because good agents want lifelong relationships
• and so on…

You've grown too accustomed to agents who list your property with a single photo and one sentence description. You've been hurt by agents who can fill out an offer, barely, but can't advise you if you're making a good decision. We're truly sorry for those experiences.

Selecting a good agent is just like selecting a good lawyer, doctor, or accountant – ask detailed questions and get detailed answers. Look at what they do, how they do it, and how well their work was done. In the end, the money we earn is done through hard work to make a very complex financial and legal transaction take place as smoothly as possible.

In conclusion, we'd like to thank you for your ongoing support and hope you'll help us as we trim the cancer that has infected our business and your lives. When we do, everyone one of you will finally get the wonderful real estate experience you so richly deserve.

Sincerely,

The Real Estate Industry

If you are seeking true real estate professionals in the Seattle area, give us a call, text or email. We would love to meet with you and show you how we work for you.

-Steve and Sandra

Steve Hill and Sandra Brenner

SEATTLE-NORTHWEST

Windermere Real Estate

206-769-9577

stevehill@windermere.com


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Spring Home Buying Season is Healthiest in 3 Years

Move, Inc. just last week revealed that this spring’s housing market finished stronger than any time in the last three years. In the report, Jonathan Smoke, chief economist for realtor.com explained:

In their latest Existing Home Sales Report, the National Association of Realtors (NAR) announced existing-home sales increased in July to their highest annual pace of the year. That is even though distressed property sales fell to 9%, the first time they were in the single-digits since NAR started tracking the category in October 2008. Lawrence Yun, chief economist for NAR explained:

According to an article on Market Watch, new constructing is surging:

Foot traffic (the number of people out actually physically looking at homes) has a strong correlation with future contracts and home sales, so it can be viewed as a peek ahead at sales trends two to three months into the future.

The latest foot traffic numbers show that there are more prospective purchasers currently looking at homes than at any other time in the last twelve months which includes the latest spring buyers’ market.

Bottom Line

The spring market finished stronger than any time in the last three years. Home sales are at year long highs. New construction is beating estimates. There are more buyers out than at any time in the last twelve months.

We think the housing market is doing just fine.

If you have questions about today's real estate market, give us a call, text or email. We are hapy to answer any questions you may have.

-Steve and Sandra

206-769-9577

stevehill@windermere.com


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