Real Estate Weekly: July 1, 2022

INSIDE

This Issue

GOT A YOUNG FAMILY? THESE ARE THE BEST CITIES TO CONSIDER MOVING TO PAGE 5 NEW VACATION HOME LOAN FEES COMPLICATE PURCHASING PAGE 7 CLASSIFIEDS PAGE 7

JULY 1, 2022

TABLE OF CONTENTS Got a young family? These are the best cities to consider moving to.......................................................P5 Q&A Ask Our Broker.......................................................................P6

New vacation home loan fees complicate purchasing...............................................P7 Classfieds.............................................................................P7

INSIDE PAGE

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RE-Weekly To advertise in RE-Weekly or other Skagit Publishing publications, Call: 360.416.2180 or Email: ads@skagitads.com ©2022 by Skagit Publishing | All rights reserved.

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July 1, 2022

STAT Real Estate Stat

$407,600 At $407,600, the median existing-home sales price exceeded $400,000 for the first time in May 2022.

Source: National Association of Realtors

NORTH PUGET SOUND ASSOCIATION of REALTORS® 525 East College Way, Ste J, Mount Vernon, WA 98273

Tel. 360-416-4902

www.npsar.realtor

FEATUREd PRoPERTy: 1207 JAMESon ST., SEdRo WooLLEy

SPEAK UP - STOP DISCRIMINATION Washington Law Against Discrimination protects people from negative housing actions that occur because of their protected class. In the Sale and Rental of Housing: No one may take any of the following actions based on a protected class: •

Refuse to engage in a real estate transaction

•

Refuse to negotiate for housing

•

Set different terms, conditions or privileges for sale or rental of a dwelling

•

Provide different housing services or facilities

•

Make housing unavailable or otherwise deny a dwelling

•

For profit, persuade owners to sell or rent advertise or make any statement that indicates a limitation or preference based on a protected class Read more at: https://www.hum.wa.gov/fair-housing

Skagit Tradition Realty LLC 3780 E. College Way Mount Vernon, WA 360-424-0300 www.skagittraditionrealty.com

$525,000

Carla Fischer (360) 982-0010

Vintage one level, 4 bedroom home on quiet dead end street. Home features beautiful hardwood floors, a free-standing pellet stove and a pellet insert. Bonus space/room near bedrooms has built in desks and storage. Formal living room, formal dining room and an eat-in kitchen w/window into family room featuring counter space to fit a couple of stools. Primary suite has walk-in closet, private bath and an extra room that offers an option to work from home with an exterior door providing a separate entry for clients/customers. Fully fenced front and back yards w/ mature landscape, covered‘patio’space off the family room. There is an outbuilding for hobby or workshop. Garage is wired for generator plus plenty of extra parking in the driveway.

MLS#1957623

Mission Statement: The North Puget Sound Association of Realtors advocates for Realtors and their clients, and promotes the protection of property rights.

July 1, 2022

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Now could be the time to sell a new home and earn a slice of the real estate pie.

Record-low interest rates is renewing interest in the housing market for many people.

“When sellers are interviewing real estate agents to market their homes, their primary focus is usually on the advertising that the agent will offer them,” says Jessica Goodbody of Weichert Realtors.

Let us help you meet your marketing goals by advertising your listings in Real Estate Weekly.

Call 360.416.2180 Today!

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c i i b b s l r h b i a

t m r t l a July 1, 2022

and cultural activities,” explains Owens.

Tomas is particularly a fan of Columbia or Charleston.

“Either city is just a short drive away from the beach or a hike in the mountains.

You get the best of both worlds plus the charm of the South in these two cities,” he continues.

Before committing to a new market relocation, it’s crucial to do your homework. That means carefully researching the cost of living, home values and price appreciations, quality of the schools, crime rates, resident diversity, neighborhood features, work commute, and political leanings of the area.

“Crime rate in surrounding neighborhoods is especially important. There are safe neighborhoods bordered by unsafe areas in every city, and that crime may bleed into the neighborhood you intend to move into,” cautions Satas.

Owens strongly recommends asking yourself key nience and amenities of a technological city in the questions before choosing major metropolitan area.” country with average home a new city. prices below the national Erin Sykes, a real estate “How is the economy, average.” advisor and chief econoand if your job doesn’t Jonathan Owens, a mist with Nest Seekers work out can you find Realtor in Cary, North International in New other opportunities in Carolina, isn’t surprised to that market?” he asks.

York City, echoes those see many Southeast states “How does the new comthoughts. making this list.

“These markets offer acmunity fit my family and cess to great schools, hous- “As a Realtor in Raleigh its lifestyle? What else is ing affordability, neighbor- over the last 13 years, this around in the area for me hood amenities, parks and matches what I see day-to- to enjoy?” recreation areas, and viable day working with buyers Additionally, Sykes employment for relocating relocating here. What recommends researching families,” Sykes notes. “In makes Raleigh great for access to public transportaJackson, for example, you young families, other than tion, moving costs, and job opportunities, is the can get a lot of house for available housing stock. your money, and there are lifestyle. The cost of living “Make sure to investigate significant arts and cultural is still low. Childcare and all the available schools, schools from elementary opportunities in the surtoo, including the high through college are amaz- schools, even if your chilrounding community.

Meanwhile, in Raleigh, ing. And it’s an active area dren are still young,” Sykes you have the only major for outdoor events, sports, adds.

Got a young family? These are the best cities to consider moving to

By Erik J. Martin CTW Features

If you’re a millennial, chances are you are increasingly interested in purchasing a home if you haven’t bought one already. That’s because, being a thirtysomething or older, you’re likely eager to set down roots, establish a household of your own, and start building equity – especially if you are now married and/or have children.

Unlike previous generations, you’re also probably more open-minded about relocating out of state or to a new market, thanks largely to the increased ability to work from home July 1, 2022

since the pandemic began.

That begs an important question: What are the best markets for young families to consider purchasing a home? For answers, look to the recent findings of a study by Orchard, which ranked the following, in order: Jackson, Mississippi; Omaha, Nebraska; Columbia, South Carolina; Raleigh, North Carolina; Charleston, South Carolina; Augusta, Georgia; Atlanta; Baton Rouge, Louisiana; Rochester, New York; and Toledo, Ohio. Orchard equally weighed several criteria in determining this list, including median home values divided by median

household income; median daily air quality; daycare availability; percentage of homes with at least three bedrooms; the unemployment rate, and more.

Interestingly, most of the cities are in the South.

“All of these markets are great cities for young families because the cost of living is low compared to larger cities, and they are safer,” says Tomas Satas, CEO/founder of Chicagoheadquartered Windy City HomeBuyer. “For anyone working remotely for a major city salary, it makes perfect sense to relocate to one of these places. You can save more, feel safer, and still have the conve-

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Self-employment in the eyes of lenders Question:

I opened my business just a few months before COVID hit. The result was that sales were far less than expected.

However, the business is now approaching expected income levels and buying a first house has become more attractive. How will lenders handle my self-employment status?

Answer:

The pandemic changed the entire economy in just a few weeks. The Kastle Back to Work Barometer tracks office usage in thousands of buildings. In early March 2020 the index showed 99% usage for ten major markets. By mid-April the average was down to 14.6% and, in some markets, usage was in single figures.

News on the employment front was not better. In mid-March 2020 there were 1.8 million continuing unemployment claims, by mid-May more than 23.1 million people were seeking help. As of April 2022, there were roughly 1.4 million continuing unemployment claims, a remarkable improvement.

Because of the swift and substantial economic changes caused by the pandemic, many people have changed jobs, left the workforce for early retirement, or started their own small businesses. One result is that labor has gained leverage in the marketplace and wages have gone up in many fields.

Lenders have had to figure out how to evaluate mortgage applications while the economy was in turmoil.

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As Fannie Mae explained, “the lender is required to determine if the borrower’s income is stable and has a reasonable expectation of continuance.” This can be done with such documentation as tax returns and bank statements, but many people newly in business may not have required returns.

To make matters worse, there have been huge problems getting tax transcripts from the IRS because -- as with millions of private businesses -- the pandemic seriously slowed operations. According to the National Taxpayer Advocate, “there is no way to sugarcoat the year 2021 in tax administration: From the perspective of tens of millions of taxpayers, it was horrendous.”

The result is that lenders – who must assure that a borrower has the ability to repay a mortgage – took a hard line with the self-employed. If you or I were a lender, we would do same thing to avoid bad loans.

However, in February of this year, Fannie Mae largely went back to the old rules.

In general, lenders will now want tax returns for the past two or three years. Other forms of documentation can be considered if returns are not available.

First, the lender will want to assure that the business has existed for at least 120 days.

Second, within 20 days of closing the lender must check again to assure that the business is open and functioning.

Third, there must be evidence of current work such as signed contracts, invoices, and business receipts.

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Q&A

ASK OUR BROKER

By Peter G. Miller Fourth, the lender must certify that the business is open and operating. This can be done with a phone call or visit.

Fifth, it can help to have a website that allows appointments to be made online.

Sixth, if a recent tax return is unavailable, borrowers must provide supply an “audited year-to-date profit and loss statement reporting business revenue, expenses, and net income up to and including the most recent month preceding the loan application date.”

Seventh, if you do not have an audited P&L, lenders can accept an unaudited profit and loss statement plus “three months represented on the year-to-date profit and loss statement.”

This stuff sounds complex, but if you’re in business you likely have such paperwork both for tax purposes and to fully understand your finances. Loan officers can provide details and specifics regarding mortgage requirements. A tax professional can work with you to provide the reports you need and answer lender questions.

Meanwhile, if you are self-employed, it makes sense to make quarterly estimated tax payments online at IRS. gov and to file electronically. You then have receipts and the return you filed. The result is that you will likely get a prompt refund, if one is due, plus there’s a paper trail lender can verify.

Email your real estate questions to Mr. Miller at peter@ ctwfeatures.com.

July 1, 2022

RENTALS Apartments Unfurnished

NEW TODAY Alpine Ridge Retirement Apartments in Mount Vernon is accepting applications for 2 bedroom apartments. Income limits apply.

360-424-9622 for more info.

Mobile Home Spaces

New vacation home loan fees complicate purchasing

By Marilyn Melia Kennedy CTW Features Americans developed a voracious appetite for homes during the pandemic, with many going for “seconds”– sparking record high vacation home purchasing.

But this March, vacation home sales dropped “sharply for the second consecutive month,” according to Redfin, although sales remain up 13% compared to pre-pandemic levels.

Now, higher mortgage rates generally, as well as new fees of between 1.12 and 3.87 of the loan amounts on most second home mortgages, will dampen the vacation home market, says Taylor Marr, a Redfin economist.

July 1, 2022

Still, this market isn’t about to crater, says Gay Cororaton, a National Association of Realtors economist, since onehalf of vacation homebuyers pay cash.

Before the fees, most borrowers who needed financing took out a separate mortgage, says Jennifer Beeston, SVP, Guaranteed Rate.

The fees, which increase when loan amounts grow closer to the purchase price, are charged in the form of a higher interest rate, Beeston explains.

A strategy for borrowers with lots of equity in their primary home might find it more economical to tap that equity to pay the fee upfront and lower their interest rate over the life of their second home mortgage, (Any mortgage borrower can pay an amount known as “points”

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upfront to lower the loan rate.)

Owners with substantial equity in their primary might take out a cash-out refinance on that home, and use those proceeds to buy a second home, says Matt Hackett, of Mamaroneck, NY, Equity Now. But if buyers are feeling squeezed financially, maybe they shouldn’t be buying a second home, says Scott Bishop, a Houston, TX financial planner.

For one thing, if buyers increase the loan amount on their primary, they could risk that home should financial distress arise.

Moreover, Bishop warns against thinking of a second home as an investment, since maintenance, taxes and other costs usually eat up price appreciation.

NEW TODAY Seeking long-term renter for RV Site located on beautiful property in Alger!

Includes electric, water, sewage, WIFI, laundry, fishing/boat ponds, gazebo with grill, large deck an patio. Hiking/biking trails close to other amenities.

Temporary free rent to someone who could provide back hoe services and operate a chainsaw.

Special consideration for vets. $680 a month, $20 for additional person.

Current FBI background check and references required. Sound character and no anger or substance abuse issues.

Subdued pets okay.

Contact 360.724.5716.

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Great traditional tri-level home in fabulous location; nearby the YMCA, Skagit Valley College, schools, shopping, and parks. Easy commute. Skagit River is close by for fishing too. Home offers 3 bedrooms on upper level, a full bath and the primary bedroom which has an attached ¾ bath and a private deck. Main level has the living room with gas fireplace insert, kitchen with eating space and dining room at opposite end of kitchen. There are sliding doors to the deck, overlooking the backyard, with a view to the North and to the West for enjoying the sunset. Lower level has Laundry with a ½ bath, a very large hall which could provide an extra seating/office/hobby area and a bonus room with sliding door access to the concrete patio, which could become a 4th bedroom.

Interior is freshly painted, roof and gutter system approx. 2 years old, water heater new in Feb 2022, and the north section of the fence is new, white vinyl.

Patricia Box MLS#1951361 (360) 941-9186

4617beaver Pond drive S,Mountvernon $99,000 18849 caScade ridge court, Mount vernon $815,000 Great Conway schools; extremely well cared neighborhood for rambler on 2.77 park like acres just ten minutes from I-5. Beautiful to build you country kitchen with adjoining family home, large room plus separate formal dining and lot with all living room provide extra options the utilities for entertaining. An open floor plan in the street provides a gracious transition from area to area.

Primary bedroom offers spacious bath ready for you with double sinks and generous sized walk in closet.

Heat pump. 3 bedrooms; 2 baths; permit! Lot is surrounded by separate laundry area with deep sink. Space leveled and prepared for future work greenbelt for maximum shop. Meticulously designed for outside entertaining with patio and incredible privacy, great walking focal points. Well-appointed greenhouse; and fruit trees. 3 car garage neighborhood.

(800 square feet) & RV parking. Visiting wildlife: deer; eagles; and more.

MLS# 1954211 Cul de sac street.

Danya Wolf Elva Hunter (360) 708-8294 (360) 202-3086 MLS#1922531

60102 State route 20, MarbleMount

1 Mountainview rd, Mountvernon

2301 Martin rd, Mount vernon

$560,000

$790,000

Mondo is a well-established and well-loved Korean and American family restaurant at the foot of the Cascade Mountain Range. Favorite of locals and travelers. Restaurant is warm and inviting, with incredible fare. Very spacious dining area. Some outside seating available Small gift shop area. Kitchen is beautifully remodeled.

Business only $335,000 MLS#1926484 Business and property $790,000 Danya Wolf MLS#1926413 (360) 708-8294

1307, 1309 and 1311 olyMPic lane, Mount vernon

$115,000

Located just outside the Mount Vernon City limits, this wooded 1 acre plus lot could be a building site for a stick built, modular, or manufactured home, with plenty of room. Tract has been surveyed and wetlands have been delineated. Power and PUD water are available at the street. Perc test performed/3 bed septic possible, permit#SW22-0073 Danya Wolf (360) 708-8294 MLS# 1861233

$139,000 14903 ruStic lane, concrete

Each Lot is listed at only $139,000 Ready to build your home in beautiful Eaglemont, lots have all city utilities, you just need to bring your plans and permits. Only a few lots left in Eaglemont! 3 lots side by side, great opportunity for a builder. MLS#1953889, 1307 Olympic Lane; MLS# 1953896, Elva Hunter 1309 Olympic Lane; MLS#1953900, 1311 Olympic Lane (360) 202-3086

$75,000 Two very well maintained, level lots. Bring your camper, fifth wheel, RV or tiny home.

Great location for year round residency or weekend /vacation getaways.

Shared well, power available at street.

Patricia Box MLS# 1951005 (360) 941-9186

360.424.0300

23644 lake drive, clear lake

$229,900

Well placed, older manufactured home with addition, located on shy ¼ acre lot across the street from Clear Lake elementary school. Lot is beautifully maintained with lovingly cared for mature landscape, in both front and backyards.

Front of home which features an accessible ramp is so inviting, you’ll feel right at home. Home feels open, in the living room there is a wood stove on a raised brick-faced hearth to keep you cozy. Kitchen is ample and well-appointed, for this size home with plenty of cupboards and a pantry.

Fenced backyard has a concrete block patio for relaxing or enjoying a bbq.

Danya Wolf (360) 708-8294 There is a detached 2 car garage. MLS# 1955181

1920 19th Place Se, auburn

$539,000

Mid-century rambler in the great neighborhood of Forest Villa on a larger ¼ + acre lot, near to schools and shopping. This home offers 3 bedrooms, beautiful, updated flooring, and a new roof. Almost an open concept feel to the spacious living /dining areas of this cozy home. Kitchen has plenty of storage, nice countertops, a wall oven, and flat top range/oven, plenty of options for cooking for a crowd. Living room has a brick, wood-burning fireplace for those chilly NW evenings. Moving outside there is an oversize 2 car garage with workspace and room for storage plus plenty of extra driveway parking. The fully fenced backyard already has a playset and is large enough for gatherings and gardening. Welcome home.

Carla Fischer Danya Wolf MLS# 1955203 (360) 708-8294 (360) 982-0100

3780 E. College Way, Mount Vernon www.skagittraditionrealty.com 249784-1

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