Market News • October 25, 2011

Federal Housing Agency Announces Changes to Mortgage Refinancing Program

by Guest Author

Yesterday the Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac announced several changes to the Home Affordable Refinance Program (HARP), the details of which can be found here: http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf.

While the specific changes will not be released until November 15, 2011, below are some of the enhancements that were included in yesterday's announcement:

No Loan-to-Value Limit: Under the current program borrowers are limited to a maximum mortgage of 125% of the home's current value. By eliminating the loan-to-value limit the program will apply to more homeowners who are currently underwater on their mortgage.

Lower Loan Level Price Adjustments ("LLPA's") and no LLPA's on loans with terms of 20 years or less; the end result will be a reduction in the costs of refinancing for most borrowers.

Increase in the number of loans eligible for Property Inspection Waivers. Much like the LLPA issue, the end result will be a reduction in the cost of refinancing for more borrowers.

Given that the agencies will not release the final draft of the changes until the middle of November, right now we are in a "wait and see" mode as to the ultimate impact these changes will have. However, from an initial glance the changes coming are a positive step in making the HAMP program available to more homeowners.

By Erik Hand

Erik Hand is the president of Windermere Mortgage Services. An accomplished mortgage lending executive, Erik has over twenty years experience in the industry and is a Seattle Mortgage Bankers Association board member. When he’s not waxing poetic about mortgages and interest rates, Erik enjoys doing just about anything that will get him outdoors – rain or shine.

More • October 20, 2011

Windermere Foundation Quarterly News, Summer 2011

by Christine Wood

Greetings from the Windermere Foundation,

Thanks to you and the wonderful support the Windermere Foundation has received so far this year, we have disbursed over $851,000 to qualifying social service organizations dedicated to serving low-income and homeless families throughout the Western U.S.

Our amazing agents, staff, and owners, along with public supporters, continue to contribute generously of both time and money to the Foundation.

Here are a few of the great programs that recently received Foundation support:

Habitat for Humanity received $4,000 from the twelve CCRGI offices in Oregon and the Coachella Valley offices in CA. Habitat for Humanity was founded in 1976 and has had millions of volunteers help build over 400,000 affordable houses in partnership with families in need.

Family Promise received $1,200 from the Lewiston, ID office.

“Thank you for your recent donation to Family Promise of Lewis Clark Valley. Your gift will help provide homeless families with meals, a place to stay together as a family, as well as provide them assistance in finding permanent housing, jobs and other needs.

Thanks to your generosity, we will be able to continue this cost-effective solution to the problem of homelessness. Families are housed with Host Congregations, while volunteers provide meals. There is little overhead for the great benefit that is gained. Thank you again for your support.”

Family Promise

Hazel Dell Elementary, Vancouver, WA received $1,000 for their Jim Collins’ Coats for Kids and Warm Clothes Program.

“First a huge thank you to you and the Windermere Foundation for your support of the children at our school. We have used the funds for buying hooded coats, warm tops such as fleece jackets to make their thinner coats warm, hoodies, and jeans for some children that did not have winter appropriate pants. Also many children were able to have warm shoes and socks because of your support through this fund.

Many of our families have been and are still hit hard with the economic conditions. Our free and reduced lunch percent has moved from 52% to 64% this year, a measure of the rise of poverty for our students.

…Being able to help these students with clothing, due to the Foundation’s generosity, has been wonderful. It gives them not only warm clothing, but also a sense of pride and ability to feel comfortable here at school.”

Hazel Dell Elementary

Scholarship Program

Several offices awarded scholarships to qualifying students wishing to continue their education. Over $16,000 was gifted by the following offices: Bingen, WA, Coeur d’Alene, ID, Dallas/Monmouth, OR, East King County Group, WA (comprised of 13 offices), Seattle-Madison Park, WA, Port Ludlow, WA, Prescott, AZ, Republic, WA, and Whidbey Island-Freeland/Langley, WA.

Building Better Communities, One Home Sale at a Time

On September 23^rd, more than 200 volunteers from 30 Greater Seattle-area Windermere Real Estate offices, Seattle non-profit Neighborhood House, the High Point Community Association, and the local community came together to build a park that will serve more than 500 kids in the High Point neighborhood. This year, the Windermere Foundation is doing more for our communities in neighborhoods where there are a lot of kids but not a lot of resources.

To nominate a project for next year or learn more about what is happening in your area, go to www.windermereandyou.org. Or share your Foundation experiences at www.facebook.com/WinderemereFoundation

As always, thank you for your continuing support of the Windermere Foundation. Many low-income families are receiving basic necessities because of your commitment to helping others.

Best,

Christine Wood

Windermere Foundation

Want to read more news about the Foundation? Become a fan on Facebook to learn and share your stories about all the amazing things the Foundation is doing throughout the year.

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More • October 20, 2011

Community Service Day Southwest is Friday, October 21st!

by Windermere Staff

Tomorrow is a very special day here at Windermere Real Estate, it is our annual Community Service Day. Every year our Southwest offices dedicate a day to working in our community to make things a little brighter for our neighbors.

We appreciate your patience if it takes us a little longer to return your call or respond to your email.

Every year since 1984, Windermere associates have dedicated a day of work to complete neighborhood improvement projects as part of Windermere’s Community Service Day.

Creating vibrant communities is one of the things that inspire all of us at Windermere to be involved in Community Service Day as it gives us an opportunity to give back to the communities where we live and work.

After all, real estate is rooted in our communities. And an investment in our neighborhoods gives us all a better place to call home.

See a list of some of the projects happening across the region. More information about the projects, organizations and photos will be shared on our facebook page:www.facebook.com/windermererealestate.

Office
Project/ Organization

Antioch, CA
Loaves and Fishes of Antioch and Oakley

Brea, CA
The Eli Home, Shelter for Abused Women & Children

Clayton, CA
Contra Costa Food Bank

El Sobrante, CA
El Sobrante Boys and Girls Club

Prescot, AZ
Open Door project, as part of “The Coalition of Compassion and Justice”

Walnut Creek, CA
Clothes drive for babies with Newborn Connection

Yucca Valley, CA
Unity Home domestic abuse shelter in Joshua Tree

Buying • Market News • Selling • October 12, 2011

Then and Now, Comparing Home Ownership Costs

by Guest Author

In recent years, real estate has become something of a polarizing topic; there are those who argue that it’s still a worthy long-term investment with tangible benefits; and others who don’t see the value of owning a home, financial or otherwise. Regardless of which side of the argument you come out on, housing is a major part of our national economy. Furthermore, people are always going to need a place to live, so it’s a worthy discussion to be had.

There are a number of catch phrases that have become quite popular amongst real estate agents and media alike, such as “now is the time to buy” and “it’s a buyer’s market”. For some people, right now is a great time to buy a home, but for others, it’s not. The point is that buying a home is a personal decision based on each buyer’s unique circumstances. There’s no “one size fits all” model when it comes to real estate, so the best you can do is arm yourself with the right information so you can make the best decision for you.

With this in mind, we thought it might be interesting to compare today’s real estate market with that of 2006 when housing was at its peak. Five years ago, home values were soaring, sales were frenzied, and home ownership was at an all-time high. Inventory levels simply could not keep up with demand, so bidding wars were commonplace and homes flew off the market in record time.

Today’s market is very different. It’s important to remember that all real estate is local, so markets can vary greatly – even within a single city – but there are some general trends that we’re seeing across the board. The first is home prices; very few areas were spared from the effects of declining prices. Inventory levels in recent years have also been higher than they were in 2006 and the average amount of time that it takes to sell a home is longer. All of this points towards this being a buyer’s market. Other buyer advantages include historically low interest rates and strong affordability. With this in mind, here are some interesting stats to consider:

The average interest rate on a 30-year-mortgage today is 4.13%⁽²⁾ and in September 2006 it was 6.41%⁽²⁾

A $400,000 house today would have cost $642,650 in September 2006⁽¹⁾ which is a difference of $242,650. *The following scenarios assume these home prices.

Using the above home prices and interest rates, the monthly payment today would be $1,939.76 and in September 2006 it would have been $4,024.02 – a difference of $2,084.26 per month.

The $2,084.26 per month savings adds up to a total of $750,333 when multiplied over the term of a 30-year loan.

If today’s buyer took out a 30-year-loan at the current interest rate (4.13%), but made the same monthly payments as the buyer in 2006 ($4,024.02), the loan would be paid off in just over 10 years – the buyer in 2006 would still have almost 15 more years of payments.

¹⁾^{calculated using FHFA figures for the West Coast in September 2011}

²⁾^{from FHLMC website for September 2011}

The math above is compelling, especially when you consider how much money is saved on compound interest over the life of a 30-year loan for the same home. But regardless of what the numbers show, buying a home is much more than a financial decision, it is one that is personal and should be reflective of each individual’s needs and circumstances. Unfortunately, we don’t have a crystal ball and cannot predict what interest rates are going to do or how the market is going to grow and change, but we do know people will always need a place to call home – and as long as that is the case – we will be here to help them.

By Dan Givens

Dan Givens is the designated broker for the Windermere Northwest group of six offices in Seattle. He has worked in real estate for the past 17 years, following a 25-year-career in the apparel industry. Dan's love of numbers is not a treatable condition so he has chosen to just accept that spreadsheets are a part of his life.

More • October 9, 2011

Perspectives: Building Better Communities, One Home Sale at a Time

by Guest Author

Philanthropy has always been a big part of who we are at Windermere. Back in the early days of the company it was pretty simple; we would see a need and help any way we could. But as we grew, we realized that we could accomplish much more if we had a stronger focus, so we started the Windermere Foundation in 1989. From that point on, whenever a Windermere agent sold a home, a portion of their commission went to funding our Foundation. In its first year, the Windermere Foundation brought in $90,000. Twenty-two years later, we’ve proudly raised more than $22 million.

Today, the Windermere Foundation is funded by more than 10,000 individuals, made up of agents, staff, management, owners, as well as public donations. We keep our administrative costs to a minimum, so the vast majority of these donations go back into the hands of our agents and offices because they know best what the needs of their local communities are.

This year, we decided to take our commitment to our communities even further through a year-long campaign entitled “Building Better Communities, One Home Sale at a Time”. This program is about making a difference in our neighborhoods by helping areas that have a lot of kids, but not a lot of resources. From Washington to Oregon, Hawaii, and Utah, offices throughout Windermere’s network pitched in to help improve soccer fields, collect school supplies, build parks, provide scholarships, fund school programs, and more, for children in need.

To cap off this campaign, volunteers from Windermere, Neighborhood House, and High Point Open Space Association came together last month to build a park and playground in the High Point community in West Seattle. The playground was designed with input from children who live in the neighborhood, truly making this project a community effort. What resulted is a vibrant, interactive space where kids can do what kids do best: PLAY.

As the year draws to a close, we want to thank everyone who supported the Windermere Foundation and our Building Better Communities campaign. The generosity of our agents, owners, staff, and the public never ceases to amaze us; they raise the bar every year. And, in turn, every year we are able to do more for those who need it most, one home sale at a time.

More • October 5, 2011

We did it! Building Better Communities Event Highlights

by Windermere Staff

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A little over a week ago, more than 200 volunteers from Windermere Real Estate, Neighborhood House, the High Point Community Association, and the local community came together to build a park that will serve more than 500 kids in the area. We couldn’t be more excited to share some of the highlights of the day!

This year, the Windermere Foundation is doing more for our communities, in neighborhoods where there are a lot of kids but not a lot of resources. To nominate a project or learn more about what is happening in your area, go to www.windermereandyou.org.

Or share your Foundation experiences at www.facebook.com/WinderemereFoundation

Living • October 4, 2011

The One-Wall Wonder

by Guest Author

What is it about an accent wall that makes people refer to it as a “wonder wall”?

An accent wall is an emphasized wall in a room that has been designed to attract attention from adjacent walls. The simplest (and cheapest) option to go about an accent wall is by means of paint, though some may opt for wallpaper or tile. Homes with accent walls add a surprise element to a room and define an area of space that deserves attention.

Choosing the right wall

Experts say that the first wall you see upon entering a room is typically the accent wall. In many cases, the wall will have a fireplace or a built-in bookshelf, or something that suggests it is the focal point of the room. In this case, you want to accent that wall by emphasizing the central point with a background color.

Choosing the right wall color

Color accent walls can add depth and dimension to a room, and make a room seem bigger, warmer, or brighter. If a room is large, consider using warm colors to make the room appear more welcoming, or if the space is smaller, a lighter color can make a room look more spacious. You can visually enlarge or shrink a room by choosing the right color for your room.

Light reflections

Remember to think about how lighting affects the color of a wall. The color you choose may change depending on light sources that reflect on walls. For example, incandescent lights will have a different influence in comparison to natural lighting against walls. Different light sources can affect color choices, so don’t forget to experiment with lighting against colored walls.

Tinting the ceiling

Typically, wonder-walls function independently the ceiling, as they usually remain white. However, by adding a few drops of the wall color paint to a can of ceiling paint, you are able to slightlytint a ceiling. This subtle color scheme can make for a perfect ceiling finish to compliment an accent wall.

How to do it yourself

Painting an accent wall is an easy home improvement or do-it-yourself project. All that is needed is a short list of low-cost products, including:

Painter’s tape

Paint (with primer)

Tarp

Roller and brush

Putty and scraper

Sandpaper

The directions are simple: tape off the desired wall, spread tarp across the floor, fill any holes or cracks on the wall, sand and smooth out the surface, then paint the accent wall using zigzag strokes.

Painting an accent wall is a great DIY project for anyone to tackle over a weekend, or even a few hours. What is your take on the one-wall wonder? Is an accent wall an overstatement, an understatement, or a room well-balanced?

By Gina Kim

Gina Kim is on the marketing team at Windermere Services. She graduated from Seattle University with a degree in Strategic Communications and has experience in journalism and non-profit organizations. She enjoys reading blogs, playing the drums, trying new cuisines, and making homemade greeting cards.

Buying • Selling • September 26, 2011

Washington State Foreclosure Fairness Act Mediation Program

by Guest Author

As a homeowner it is important to know your rights. This article is specific to Washington State; please be aware of the foreclosure laws in your area.

Nearly all of us have questions, or know someone who has questions on what kind of programs exist in Washington State for homeowners who face financial difficulties. Stabilizing the housing market and fairly preserving home ownership is a very important step in stabilizing our economy.There are many programs and counseling programs available, some more effective than others. Be very aware of scams and frauds.

Homeowners should also know that there is a new law, effective July 22, 2011 in Washington State that forces mortgage lenders to “come to the table” in person, and have an actual conversation, face-to-face with individual homeowners.

This new law is called the Washington State Foreclosure Fairness Act Mediation Program – and it has teeth! The program makes Washington the third non-judicial foreclosure process state in the country with a program designed to help homeowners find a resolution to foreclosure proceedings with their lender or servicer. This housing counseling is FREE. If you are referred to mediation, the cost to the homeowner is $200. The lender will also pay $200. The mediation is provided by neutral, 3^rd party mediator services.

The Washington State Department of Commerce oversees this important program. More information is available from the Washington Department of Commerce at www.commerce.wa.gov/foreclosures.

For additional specific program questions, contact:

E-mail: foreclosuremediation@commerce.wa.gov
Phone: (360) 725-3026

The Washington State Homeownership Hotline, 1-877-894-HOME (4663) and www.homeownership.wa.gov is an important step in the process of finding out what programs exist.

According to the Washington State Department of Commerce, in 2010, Washington State saw more than 40,000 foreclosures. The new Washington State Foreclosure Fairness Act Mediation Program should not be overlooked by any homeowner seeking help. If you’d like to watch a short public service announcement on this Act, here is the link: http://www.youtube.com/wadfi
Here is some information regarding foreclosure “rescue” scams.

http://www.dfi.wa.gov/consumers/education/foreclosure/rescue_scams.htm

Here is a link to the Washington State Bar Association Home Foreclosure Legal Aid Project. http://www.mywsba.org/default.aspx?tabid=161

Here is a link to Making Home Affordable and an unemployment assistance program. http://www.makinghomeaffordable.gov/programs/unemployed-help/Pages/up.aspx

Here is a link to Veteran’s Adminstration Home Affordable Modification.

http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/va-hamp.aspx

Here is a link to FHA Home Affordable Modification Program.

http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/fha-hamp.aspx
Here is a link to UDSA’s RHS program. http://www.makinghomeaffordable.gov/programs/lower-payments/Pages/rd-hamp.aspx

Here is a link to Get Help With Fallen Home Value.

http://www.makinghomeaffordable.gov/programs/fallen-value-help/Pages/default.aspx

By Leanne Finlay

Leanne has been selling homes since 1983 throughout the Northwest, specializing in the Seattle, Eastside and Whidbey Island neighborhoods.

You can learn more about Leanne, or contact her here: http://www.windermere.com/index.cfm?fuseaction=agentOffice.AgentDetail&agentMetauser_ID=119

More • September 19, 2011

Reflections on a proud legacy

by Guest Author

By John Jacobi, Founder, Windermere Real Estate

Next year marks Windermere Real Estate’s 40^th anniversary. Who could’ve imagined that what was once an eight-agent office in northeast Seattle would eventually expand into 10 states and become the company that it is today.

During these 40 years, there have been many reasons for me to be proud of Windermere and our network of owners, agents, and staff, but one of my proudest moments occurred just a few weeks ago when the Puget Sound Business Journal published the results of an independent survey ranking the most respected company brands in Washington State. Contenders included the likes of Microsoft, the University of Washington, Nordstrom, and Starbucks. To our delight, Windermere was selected by 58.8 percent of the respondents as the most respected brand in the real estate category; our closest competitor received 16 percent of the vote.

Part of why this recognition means so much to me is that in the early years of Windermere, we knew we wanted to be different from other real estate companies. While others were focused on being number one in size or sales, we aspired to be the most respected. Our goal was to turn the traditional real estate model on its head by focusing first on community; because only then can you truly understand and anticipate the needs of those who live within the communities. Over the years, our owners and agents have embraced this approach with zeal through the Windermere Foundation, our annual Community Service Day, and their own local involvement and projects.

Windermere has always focused on three basic principles: hire the best people; give them the best tools; create thriving communities. It’s not rocket science, but it has worked pretty well for us for nearly four decades. Now, as the leadership of this company passes onto the next generation of my family, I am filled with pride at what we have been able to accomplish together. During the past 40 years, I have been grateful for many things, but earning the respect of our community is a badge of honor I’m incredibly proud to wear.

More • September 7, 2011

Building Better Communities: Puget Sound Park Update

by Windermere Staff

In a little more than two weeks, volunteers from 40 Puget Sound area offices will come together to help build a park with our community partners at Neighborhood House and the High Point Community Association.

The processs of building a park has been exciting, to say the least! Below is a video of our esteemed designers at work on planning the playground and the final, community-approved project.

It’s not too late to get involved with this project! Or, to find a project near you, visit www.windermereandyou.org. Here, you can donate to a project in your area, sign-up to volunteer, and more.

A special thanks to all our donors, volunteers and friends working together: Building Better Communities, One Home Sale at a Time.