West Seattle is for Diva Dwellers

First time Diva Dwellers often ask us what we think about West Seattle. This is like asking what we think about Brooklyn. It is way more like a borough than a neighborhood. It has crazy cute beach houses, expensive view homes and affordable view homes, modern townhouses and swanky waterfront condos and a level of cultural diversity that could rival any New York borough. Originally, West Seattle was a pure working class fishermen’s community intermixed with summer cottages that lined up around Alki. Between the sandy beaches, the mountain/sound/city views, the amazing restaurants, the water taxi, Lincoln Park, Fauntleroy Ferry dock, diving classes, para-sailing and Salty’s, there is an eccentric and expansive thriving Seattle alter ego. It’s more than a hood – it’s a destination!

West Seattle is also super affordable right now. The reasoning is a little irrational but we think that most folks are scared of buying in West Seattle because of the Viaduct work and its impact on the infamous Seattle commute. Frankly – the city of Seattle is not going to abandon West Seattle to Burien. In the meantime, it is amazing the quality of home and friendly neighbors one can find in West Seattle right now at super fabulous prices. Lately we have been showing homes in Columbia City and West Seattle. Columbia City has the light rail and is downright a favorite hood. But for the money you can buy a lot more in West Seattle.

West Seattle is also one of our favorite hoods because its where we sold our Fauntleroy house this past summer. The house personifies the lifestyle one can have so close to the city. Easy walk to a community area, great neighbors, stunning views and so much more. Check out the house yourself>

Top Ten Favorite Spots in West Seattle:

1. Luna Park Cafe — This place is the epitome of West Seattle — quirky, fun and in a category all by itself. Oh, and the shakes are “to-die-for!”
2. West Seattle Farmers Market: There are very few year round farmers markets in Seattle but West Seattle has one of the best!
3. Planetary Apothecary: Chez Diva hosts a monthly Astro Salon with our own Stephanie Gailing. Her house is perched out over the sound reminding us that we do live in an amazing place on earth.
4. Bakery Nouveau: Award winning pastries coupled with chocolate. Love you!
5. Brunch at Salty’s on Alki: Normally we are not into big chain places. But really – this brunch is a once a year event for us girls.
6. Walks on Alki in the Summer: There is nothing more that we love than skipping out on work, getting together with the girls and power walking on Alki. I will take that snide yuppy compliment!
7. Zatz’s Bagels: It is just nice to know that there is a place in this city for bagels.
8. Fauntleroy Ferry: Coming back from Vashon on the ferry and seeing West Seattle’s beaches come into view is magical.
9. Diva Espresso: It’s more than a name – it is perfection in a cup!
10. West 5: It feels like a retro chic bowling alley but without the bowling – just the charming waitresses.

Local Blog: West Seattle Blog

Diva Dwellers Jeff + Tracey

Jeff and Tracey are in the category of down right awesome Diva Dwellers. We were heart broken when they were forced to relocate to San Francisco for a new job opportunity. It was more than losing “just” a client. We were losing a couple of fabulous friends. Our Chez Diva events have not quite been the same since they have left our little village of Divas. But we have no doubt they are taking the Diva flag with them to the Bay Area.

We sold Jeff and Tracey’s house in the spring of 2010. At the time their house was sandwiched between a recent foreclosure and a short sale. Not the best situation but we knew we had to do it for our pals. Despite these odds we staged , beautifully photographed and managed to sell this fabulous Diva Dwelling in no time using the Diva Difference strategy. Jeff posted the following comment directly to our Yelp page.

Kim and Chavi helped me find my Seattle house shortly after I moved to town a number of years ago. At that time the market was difficult in a whole different way, they helped me find a well priced home in a good neighborhood. They made sure I did not pay too much at time where it was very easy to do so. Flash forward 6 years and Team Diva was able to help me sell that house when a new job forced a move to the Bay Area. Despite the fact that I was 700 miles away they were able to facilitate all details that got me a full priced offer in a matter of weekend all in a really crappy market. Their listing of my house was fabulous, everyone I know who saw it were really impressed.

Here is Jeff and Tracey’s Diva Dweller Story:

• How did you meet the Divas?Met the Divas through my mortgage broker who recommended them, we met for coffee and I immediately knew things were going to work out well.
• What type of home did you purchase?Purchased a mid 1960′s ranch (from the original owners) in the ‘burbs that need just a little TLC
• What was your first “OMG” house moment? Replacing a front door is harder than it looks on TV and painting Cedar siding for the first time 25 years takes a lot longer than you would expect. Hire a painter next time. Or Call Team Diva. We have numerous recommendations for professionals.
• What was your favorite home transformation? It’s a tie between re-landscaping the front yard and the renovations we did to Swank Up for the Sale. The bathroom and kitchen needed a little refresh to make it stand out from the crowd. It was amazing to see what a little bit of tile work and paint did to show the house off.
• What is in your junk drawer?Matches and an inordinate number of flashlights
• What was your favorite Hood hangout spot?A cute little restaurant in downtown Burien – The Tin Room and Bar
• What is your favorite Seattle organization/non-profit? Life Long Aids Alliance
• What did you love the most about your house? The openness of the Living Room, Dining Room and Family Rooms

Luckily for us Jeff and Tracey are only a quick plane ride away. We adore these boys and know that they will always be Diva Dwellers in our hearts.

FIUTS is one of our favorite Community Partners and we are passionate advocates for them as an organization in Seattle. Every fall we and many of our Diva Dwellers and Divotees host students from all over the world. The experience for our students is a place to settle and adjust to the American culture. More importantly they make a connection that often lasts a lifetime. For the host families, we feel that every student is a blessing and gives us a much wider view into the world. Simply said – we LOVE FIUTS!

FIUTS does not run on its own. The small staff at FIUTS help over a 1,000 international students a year as they experience life at the University of Washington. They do not ask for much but when they do Team Diva feels strongly that we need to support this fabulous and super talented team. Team Diva is proud to sponsor CulturalFest for the second year. CulturalFest is both an international celebration and it is an important fundraiser for FIUTS‘s programming.

Event Details: On February 10, 2012 FIUTS will once again present CulturalFest, a unique community event and long-standing tradition that showcases both the University of Washington’s global campus and its student leadership. This day-long celebration is produced by FIUTS staff and the FIUTS Student Board, and will welcome thousands of globally-minded community members of all ages and backgrounds to the UW campus to see a day of country exhibitions and an evening filled with cultural music, dance performances, and the FIUTS silent auction reception. Learn more about this exciting event by following the links below.

Below is More Information and a Schedule of CulturalFest Events
Location: Meany Hall on the University of Washington Campus. For information on directions and parking at Meany Hall, click here.
Date: Friday, February 10, 2012

International Culture Expo 11a.m. – 3 p.m.
Free Admission

Team Diva Sponsored Evening Reception & Silent Auction 5:30-7:30pm
Buy Tickets online

Cultural Music and Dance Performances 8:00-10:00pm
Buy Tickets online

Owning a Home is Good for Your Pocket Book

First time Diva Dwellers come into the process of buying a home without truly realizing the full tax benefits as it applies to their monthly payment. They are looking at what they can afford monthly and still have a little safety net in case something happens. You know, roof opens up and water pours in, your sewer breaks, or you want to remodel that oh so fabulous 1980s kitchen. Regardless of the reason it is critical that Diva Dwellers feel comfortable with their monthly expenditures. One thing that many of them do not realize is that a major benefit of owning a home is the direct tax benefits.

First off – always talk to a tax professional. Us Divas can only state from our own experience of owning homes and how we have benefited from the tax deductions. One can also go to the IRS Publication 530 for a more involved view of Tax Information for Homeowners. Below is a quick run down of what you can deduct as a Diva Dweller.

1. Mortgage Interest: Let’s assume its your own personal residence. Investors are in a totally different category. Get this – 100 percent of the mortgage interest you paid before December 31, 2011, is deductible on your 2011 taxes. Every January one’s mortgage  lender will send you (email, online or snail mail) a form detailing out the amount one paid in interest. The first five years of home ownership majority of Diva Dwellers are paying interest on their loan. Its not until much later that you are starting to payoff that principal.
2. Property Taxes: Super exciting – 100% of your PROPERTY TAXES you paid to your state, city, and county are also tax deductible.
3. Closing-Costs: This is where keeping your final HUD-1 statement from your escrow signing is super critical. The discount points and origination fees paid to your mortgage lender at closing are typically deductible. Also, state and local transfer or stamp taxes paid at closing are generally deductible on your federal returns. Once again a tax professional is your friend on this one for the very nitty gritty specifics.

OK – you understand it from a super big awesome tax return perspective but how would this help with your monthly payment. Here is how it goes = Now that you are a Diva Dweller you can deduct less monthly from your tax deductions from your paycheck. Once again check with a professional on the specifics. But hypothetically your total payment is $2,200 a month. Around $200 of that is a tax deduction. Meaning money in your pocket. Meaning you can deduct less from your paycheck to cover your taxes. Meaning – spend that money on improving your home!

The Right Short Sale

Right now in the Seattle real estate market one can find dated estate sales, short sales and, a few foreclosures in the hinterlands of Seattle, and every once in a while, a real gem of a home. I have had a lot of our newest Diva Dwellers ask why decent homes are not coming on the market. The bottom line is that Seattle is relatively stable from an employment standpoint. People love living in the city. Its only a good time to sell your home if you want to capture a good deal and move-up in size or change your location. What’s left on the market is a hodgepodge. So what is a Diva Dweller buyer to do?

1. Be Speedy: Compete for the few with a million other first time home buyers.
2. Hunt Down the Rare Foreclosure: Seattle has had a very low foreclosure rate in the core central Seattle neighborhoods. When was the last time you saw a foreclosed home in Ballard or Capitol Hill?
3. Learn to love a Fixer (our favorite): Estate sales are great. Basically you are getting a super deal. The owners are the estate and they are just dividing up the profits from the sale. The only thing is that you need to learn to love the fixer. Get your tool belt ready!
4. Short Sale – It is a Dirty Word in Real Estate: Or dive into the murky, no road map and unregulated pool of Short Sales.

What is a Short Sale: First let’s start at the beginning. What is a short sale? A short sale is when the seller owes more on their home than the home’s current market value. As a result the home owners have to appeal to the lien holders (mortgage folks and big banks) and ask them to take a loss on the mortgage amount. The lien holders will agree to the loss only if there is a hardship in the family and the home owners have no other way to pay the mortgage. It takes a minimum of 60-90 days to get a short sale approved by the lien holders. From there another 4-6 weeks to close the transaction from the buyers side. Personally, we prefer that someone short sale their home instead of letting it go into foreclosure. Foreclosures have huge impact on the entire community and can seriously damage property values for one’s neighbors. Whereas a short sale is around 10-15% less in market value than the surrounding homes. This type of discount can quickly be recovered by the market. Expect a lot more short sales this next year and it’s best to know what you are dealing with as a Diva Dweller buyer.

The Seller: Now that you know what a short sale is, how do you figure out what type of short sale is the right one to go for? In order to get a short sale closed and our Diva Dwellers in their new home, the home owners need to be prepped and engaged. The sellers are required to provide a ton of financial information to the lien holders as part of the process. They also have to have a very real hardship. They cannot just want to sell their house because they think they will never get their equity back. Those folks just need to sit in their homes and ride out the market like the rest of us!

The Seller’s Real Estate Broker: The seller’s real estate broker is also critical to the process. People have very emotional connections to their home. The thought of having to let go of the home in such a clinical manner can be at best frustrating and at other times a little dysfunctional. A good short sale broker is one part therapist and second part a very good negotiator with the lien holders. I have a lot of admiration for short sale experts. Matt Miner, on our Diva Team, does a phenomenal job keeping it going and as a result has 100% closure rate.

Lien Holders/The Banks Who Own the Mortgage: Next up – the lien holders. A major lien holder is the bank and/or banks who hold the note on the home. Not every bank is willing to do a short sale. For a multitude and unknown reasons they sometimes would prefer for the home to go into foreclosure. The larger institutions have more motivation because a significant portion of the their loss is being covered by the federal government or mortgage insurance. Some of the more obscure or sub-prime lenders who are backed by private equity firms are more complicated. Basically the owner of these types of loans are owned by a ton of small investors. In addition, credit unions do not forgive mortgage debt. They might agree to the short sale but they will require the seller to setup a payment plan outside of the transaction to pay off their forgiven debt.

The Short Sale Transaction: Next up – you have decided to move forward, you are committed to the long process, this is your dream house, you cannot wait, make this short sale work Divas! Well – a short sale purchase and sale agreement is a little different than a normal purchase and sale agreement. The timelines for one’s financing, inspections, title, etc do not start until you have lien holder approval. As you know from above that can take a couple of months. The way we structure our short sales is that we do the inspection and the title review at the very beginning. There is nothing like hanging out twiddling your thumbs for three months only to find out there is a ton of work your new dream home requires and the banks will not renegotiate the purchase price. The other thing that its critical to know is what is going on the in the land through your title review. Does the property have any assessment, potential building restrictions and a myriad of other issues. Get it out of the way now before you sit and wait for the banks to respond. You can also use these items to negotiate for a better price or standing on the home.

The Bank Approval of the Sale: Yes – we finally have approval. Oh wait the bank decided to not give you closing costs or change the purchase price. Sometimes we can go back to renegotiate. Or sometimes you just have to prepare yourself from the beginning and accept what they are willing to give you. It sucks but in the end you got that dream home of yours. It’s better than buying a fixer – right?

Regardless of one’s approach, you need to remember that there is a really low closure rate on short sales. Part of this is due to the sellers who decide to go into Bankruptcy, incompetent negotiators who do not know what they are getting themselves into and sometimes the bank just refuses to negotiate. 2012 is the final year that a seller does not have to pay income tax on the forgiven debt. Be informed, the Divas will give you their best advice based on personal experience, and do the best we can to get you the right home for you!

Market Watch for 1/13/2012-1/20/2012

One of the biggest question we get from our clients is “What is the market doing? Are we improving yet?” Well if January is any indication of how the rest of 2012 is going to go then I say “We are on our way!”

The best way to clarify our answer is to look at the inventory in Seattle and where we see movement. During the last week only 127 homes came on the market as “new” listings. The majority of these homes were taken off over the holidays and are now back on the market. The number of homes that went under contract in the same time period was about 238. Basically this is indicating that there are way fewer homes on the market than meets the current demand. Now let’s look at that Demand rate.

Diva HQ Demand Rate
January has been a whopper of a month for Team Diva. Here at Diva Headquarters we have eight homes under contract and we are only in the third week in January. This exact same time last year we had ONE. That is just what we are experiencing, and as you know its different for everyone.

Let’s take a closer look at what we call the Demand Rate. Demand Rate indicates how many buyers are in the market for every home that is listed. On Capitol Hill we have averaged around six to nine months of inventory for condos. Or one buyer for every nine condos on the market. Right now the demand rate is hovering around 1.68. Basically that is one and 2/3 condo for every buyer. We like the look of those numbers!

Seattle Demand Rate
All of Seattle: 1.76
All of Seattle without Distressed Homes: 2.65
Seattle Residential Homes: 1.54
Seattle Condos: 2.4

Back to the question – What is the market doing?

• Buyers: Overall we are moving into a more positive environment. As a buyer I would recommend being aggressive if you are looking in the core Seattle neighborhoods. These would be Ballard, Wallingford, Greenlake, Bryant, Capitol Hill, Admiral Area of W. Seattle, Columbia City and the always super popular Central District. It’s been a real estate desert in these neighborhoods. Nothing new has come on market this entire January. And when it does, it’s snatched up quicker than a Drag Queen applies lipstick.
  
• Sellers: As for sellers, I would personally suggest you only sell your home if it gives you the opportunity to buy a larger home for your family while prices are still depreciated. 2012 is a comeback year and the only way prices are going to increase is if the inventory remains low. Luckily for all of us it looks like the inventory is going to stay low for quite awhile!

The Seattle Times recently released an article that shows the numbers improving from a national perspective. Check it out and let’s keep moving forward Seattle!