Seattle Real Estate - The best real estate deals in Seattle including foreclosures, unlisted property, bank owned homes, and other hot real estate deals personally chosen by Christian Nossum - Seattle MLS Search
First time home buyers ask what earnest money is. Money that accompanies the purchase agreement to show that the buyer is serious about buying the property, sometimes called a deposit. These funds are not in addition to the purchase price, they end up being put toward the purchase.
Buyers can lose their earnest money by backing out of the deal after the purchase agreement has been accepted by both parties.
I have received earnest money checks that have bounced. Even though the money is not spent until the closing state law says that they have to go into a real estate brokers trust account with in three business days. Earnest money checks are getting smaller all the time. $500.00? you have got to be kidding, how serious are you about purchasing this home? I like to see a check for 1% of the purchase price. I have gotten checks for 20% of the purchase price, most buyers do not have that much cash. Locally first time home buyers can usually get by with between one and two thousand dollars.
Sellers can and sometimes do counter an offer and ask for more earnest money. No one wants to have their home sold, take it off the market and have the buyer back out before the closing, yet it happens. Sellers want to make sure the buyer is committed. A $5000 dollar commitment is stronger than a $500 dollars commitment.
What the heck is earnest money? In Seattle’s real estate market today, this question pops up during pretty much every transaction. Even if the buyer or seller have bought or sold in the past, most people forget exactly what it is and why it is used. Teresa Boardman, a great real estate agent in St. Paul, Minnesota, explained it so well above.
Buyers generally try to use the lowest amount of earnest money possible. I see it all of the time. Since I am all about getting you the best deal possible, I’m right with you. What I have found is the amount of earnest money you can expect to put down depends on who the seller is. If the seller is a bank and there are not multiple offer (believe it or not, a lot of bank owned homes in the city of Seattle are getting multiple offers in today’s market), you can usually get away with using somewhere between $1500-$2500 (on a purchase below $500,000). That is less than 0.5% of the purchase price. If it is a multiple offer situation (bank owned or not), this number usually increases. The reason why is because if you really want the house, and there are multiple people bidding for it (again, in Seattle, I am still seeing multiple offers on some of the good deals I find), you want to make your offer seem the strongest you can. One of the many ways to do that is to increase your earnest money. Since earnest money is used towards your down payment, it’s not like its money you wouldn’t already be spending. You’re just depositing it earlier than you would if it was going to be used as a down payment (down payment money isn’t deposited until your signing appointment, which in the Seattle area is generally 2-4 days prior to your closing date).
One other technique I use when representing buyers is the deferred deposit of earnest money clause. This is a clause that was in our NWMLS forms when I first started in the business in 2005, but was taken out because many agents abused it (an earnest money check is needed from a buyer the day they write their offer – many agents were waiting to collect the check for days). Why is deferred deposit of earnest money so cool? Well, I think it’s cool because it allows you to not have your earnest money check deposited until AFTER you have waived your inspection. In today’s market in Seattle, an inspection period is generally the first 5-10 days after mutual acceptance (meaning the first 5-10 days after both the buyer and seller agree on all of the terms of the contract). By using deferred deposit of earnest money, if you find something major wrong with the house during the inspection period, you can back out and get your earnest money check back before it was cashed (and without going through the hassle of having that money cashed and not accessible to you for days while the escrow company cuts you a new check and mails it back to you).
So that’s what earnest money is, and how you can expect it to be used in Seattle’s real estate market today. If you ever have any questions about earnest money or anything else dealing with today’s real estate market in Seattle, feel free to ask me. I’m always here to help!
Most renters who plan to become homeowners say it will be at least two years before they make the leap, and more than one out of four renters say they’ll never buy a home, according to an online survey by Harris Interactive.
The “American Dream” survey, conducted in July on behalf of property search site Trulia.com, included 1,345 homeowners and 663 renters.
Among those surveyed, 72 percent considered homeownership to be “part of their personal American dream,” down from 77 percent six months ago.
Among renters who plan to become homeowners, 68 percent said they aren’t planning to make their move in the next two years. But 69 percent of that group said they could be prompted to take action in the next 12 months if their circumstances changed.
Among that group, 47 percent said they could be spurred into action if they were able to save enough for a downpayment. Another 28 percent said a new job would be a tipping factor, while 27 percent said that if mortgage rates stay low or get lower they could be persuaded to take action.
About one in four said they needed to be persuaded that it made more financial sense to buy than rent (24 percent), and 23 percent said a job promotion or raise could get them off the fence. Only 9 percent said they are looking for signs that their local real estate market has stabilized.
So you’re on the fence about buying now or waiting. I hear ya. In fact I hear people like you talk to me all of the time. “Should I buy or should I wait?”, they say. Here’s the answer. It depends on your circumstances. If you have a steady job that you don’t foresee losing anytime soon, that’s a plus. If you have a little bit of money saved up. That’s a plus. If you’ve paid all of your bills on time and have good (doesn’t have to be great) credit, that’s a plus. If you said yes to these three, so far I would say yes, you should look into buying right now. But wait, there’s more (I feel like I’m watching an infomercial when I write that).
Interest rates are at or near ALL-TIME lows, hovering around 4.5%. Those are all-time lows. That means that they are not normal. Back in the early 1980′s, interest rates were as high as 15%-18%-21%!!! Now they are at 4.5%! Here’s the other thing: in the 1980′s when interest rates were so high, the real estate market was bad (especially in Seattle since Boeing was one of the main employers, and they laid off a ton of employees – spurring a bad local economy). The real estate market is comparable to that right now. There were/are a lot of foreclosures on the market, and it was/is a buyers market. The weird thing about today’s market compared to the early 1980′s, or anyother time in history for that matter, is that we’ve never had low interest rates AND a buyers market at the same time. This is not normal. So, let’s do the math now: you have a steady job, you have decent credit, and you have a little bit of money saved up (you only need 3.5% as a downpayment on an FHA 30 year fixed loan – that’s only $10,500 down on a $300,000 house!). Add in low interest rates, the low downpayment, and a buyers market and you’ve got yourself a good time to buy a deal!
As a bonus, you can find that deal with my help – I am a deal finder! That’s all I do! I find places that are under-priced and are a good value. With my help, you don’t have to be a renter anymore.
This Mountlake Terrace duplex has not hit the market yet. It’s a 5 bed, 2 bath house. The upper unit has 4 bedrooms and 1 bathroom. The lower unit has 1 bedroom & 1 bathroom, and it’s own separate kitchen and separate entrance. It is in the process of getting completely remodeled, and it will be completed here in the next week or so, but don’t let that stop you from taking a look at it or asking questions about it. If you even have the slightest interest, contact me now before someone else does. Once the remodel is complete it will hit the market and everyone will have a chance at it. If you snag it before it hits the market, you have a great chance of getting a deal.
As an investment, the upper unit would generate at least $1100/month, and the lower unit would generate at least $500/month. As a personal residence, you could supplement your mortgage payment by having someone rent out the lower unit while you live in upstairs. $500 a month income would pay for almost half of your mortgage payment! Now that’s a deal!
If you are interested in checking it out, or if you have any questions, feel free to call or email me anytime. Again, my contact info is: Christian Nossum – 206.949.3048, and Christian@DealsInSeattle.com.
This is a deal! I searched all around Ballard yesterday looking for the best deal between $300,000 – $400,000. This Loyal Heights house, my friends, is it. With this house you get 4 bedrooms, 1.75 bathrooms, and approximately 1580sqft on an approximately 5840sqft lot (that’s a little larger lot than normal in Seattle). A large detached garage with alley access, plus a very private backyard round out this home. Note – This Ballard foreclosure is for sale now for less than what it sold for in 2005! Now that’s a deal!
Inside, the house needs some cosmetic help. It has great bones and all of the systems look to be running fine and for the most part are updated. What it needs is some new paint, new carpet/refinished hardwood floors (if they are in good enough shape under the old carpet), and some new appliances. With those additions, you’re gonna have yourself a pretty nice house with a lot of space. The master bedroom is huge! It looks like there was an addition to the house at some point in time, which means that the sqft might be a little less than the true sqft of the house. It’s very hard to know this for sure. What I do know is that it is ready for someone new to step in and make this place shine!
If you are interested in checking it out, or if you have any questions, feel free to call or email me anytime. Again, my contact info is: Christian Nossum – 206.949.3048, and Christian@DealsInSeattle.com.
PS. This Ballard foreclosure is not my listing, but I do have permission to promote it. I promote good deals in order to find buyers that are looking to find that hidden gem.
This is a great deal for a nice corner lot house in the Greenwood neighborhood of Seattle. This house is not on the market yet, but it will hit the market soon. Watch the video, and if you or a friend is interested, contact Christian asap to check it out in person. At $499,950, this is a good deal for this much house in this area. Just blocks away from Greenlake, it’s in a great location and is a quick walk to multiple bus lines and restaurants. Completely remodeled with refinished hardwood floors, new carpet, new stainless steel appliances, granite countertops, and a lot of new double pane windows, this house is turn-key ready to move in. Contact Christian Nossum with DealsInSeattle.com and Wilson Realty Exchange, Inc for more info at Christian@DealsInSeattle.com, 206-949-3048, or on Twitter @AwesomeNossum.
Kiplinger’s Personal Finance Magazine just announced it’s “10 Best Cities for the Next Decade“. This is yet another great example of why Seattle is such a great place to live and invest in real estate. We, and by we I mean Seattle, have such a wide variety of great worldwide companies to work for (Boeing, Amazon.com, Starbucks, Microsoft, etc), that our local economy (and in turn our housing market) will stay strong for years to come. When you couple interest rates being at their lowest point of the year right now (in the 4.75-5% range!), and the anticipated slowdown/short term price adjustments in sellers minds due to the decrease in market activity now that the first time homebuyers credit has expired, this is a really good time to find a real estate deal in Seattle.
From the article:
…this sophisticated Pacific Rim city has other qualities to recommend it, including great food, a glorious setting, an outdoorsy culture, enough rain to keep the locals’ complexions looking dewy — and, yeah, plenty of smart people.
Here you can watch a quick video from the article talking about how awesome Seattle is. I love this city!
I know of a house in West Seattle near the Alaska Junction/Seaview neighborhood, that is currently listed for $75,000 more than what the seller will sell the house for. It is a smaller house (2 bedrooms, 1 bathroom), and it needs some cosmetic fixing and updating, but for under $200,000 this deal cannot be beat in this great neighborhood! It is pretty much livable as-is, but it could use a facelift in areas. If you are interested in getting more info on this home, contact me – 206-949-3048, or Christian@DealsInSeattle.com.
Here is a unique opportunity to buy two houses on two separate lots for one low price – $599,950. This deal is not on the market yet – you are one of the first people to know about it! If you were buy these two homes separately, you would be paying $389,950 for the front house (3 large bedrooms, 2 full bathrooms, plus an office, approximately 2400+ sqft including the unfinished basement), and $239,950 for the back house (2 bedrooms, 1 bathroom, sunroom, approximately 1500 sqft including the unfinished basement). So you would be paying $630,000 for these two homes. By buying them together, you are saving $30,000! Plus in essence, you are purchasing an investment property – a duplex.
Let’s Look At The Math – You will be surprised by these numbers
Let’s say that you are in the market for a 3 bedroom, 2 bath house for under $400,000. You want a house because you want the buy now while the market is low, and you’re sick and tired of renting and not having the privacy of owning your own home. You find the front house for sale at $389,950, and you decide to buy it using an FHA 30 year fixed loan which allows you to put just a 3.5% downpayment ($389,950 x 3.5%=$13,648.25) If you were to get a 5% interest rate, you monthly principle and interest payment would be $2020.07 per month.
Let’s see what would happen if you were able to buy both homes for $599,950, still live in the front house, and rent out the back house for $1250 per month. Your 3.5% downpayment for an FHA 30 year fixed loan would now be $7350 more ($20,998.25, compared to $13,648.25), and your monthly payment would increase to $3107.94. So compared to just buying the front house for $389,950, your monthly payment increases $1087.87 for both homes. Here’s the great part – you can get $1250 per month in rent for the back house! So by buying both homes, living in the front house and renting out the back house, you’re actually saving money each month! HOW CRAZY IS THAT? Essentially you’d be living in the front house for just $1857.94 each month instead of $2020.07! Thank you tenants! You still have the privacy of owning your own home, but you also have a small retirement plan in place because in 30 years, if you make every payment on time, you will have these two homes paid off and you’ll have the rental income of the back house coming in each month. That is a deal.
Here’s another plus for buying both homes. If you ever wanted or needed to sell the back house, you can. It’s already its own separate parcel of land. You can sell it anytime. The hard part of getting the lot split to separate the homes has been done. Now realize, you would lose your rental income by selling, but if you really needed the cash, it could be done.
For comparisons sake, let’s look at what you could currently buy a duplex for in Magnolia. The closest thing on the market is one building with two comparably sized units in it (a 3 bed/1.5 bath unit, and 2 bed/1 bath unit). This duplex has an asking price of $675,000 ($75,000 more for only one building with a shared wall, which equals less privacy than two detached homes).
That’s the deal. It will be getting put on the market within a week, so this is a short term “DealsInSeattle.com only” deal. If you are interested in seeing it, or if you have any questions about it, contact me – 206-949-3048 or Christian@DealsInSeattle.com.
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As you may or may not know, I volunteer my time as the President of the Young Professionals Society of Rebuilding Together Seattle. Rebuilding Together Seattle (RTS) is a non-profit, and they recently interviewed me for an article on their website. If you want to read about what I do for them, check out the article. If you are at all interesting in volunteering a few hours of your free time by helping a low-income elderly or handicapped homeowner repair their home, feel free to contact me and I’ll let you know when our next Young Professionals Society (YPS) service project will be (they are usually Saturday mornings from 10am-1pm or so, about once every other month). Each year on the last Saturday of April, Rebuilding Together Seattle takes on 25-30+ all-day rebuild projects around Seattle. The wonderful thing about helping out with Rebuilding Together Seattle/Young Professionals Society is that you don’t need to have any home repair experience. If you do, great. But if you don’t there are always things that you can do to help, or someone will teach you how to do a specialized skill.
For more info about Rebuilding Together Seattle, or their Young Professionals Society, email, call, or text me (206-949-3048, or Christian@DealsInSeattle.com). I’d be happy to help you out. Also, I have committed to donate $500 to Rebuilding Together Seattle for every person that uses me as their real estate agent to buy or sell a home that is a Rebuilding Together Seattle volunteer, Board of Director, or staff member (Donation based upon the successful closing of the transaction). If you want me to give back to charity, all you need to do is donate some of your free time. It’s a awesome win-win-win situation (A low-income homeowner get’s their home repaired, RTS get’s a $500 donation, and you get my expertise when you buy or sell your home!).
UPDATE: This North Beacon Hill house has only been on the market for 40 days now, and the price keeps getting lower. To me, it seems like this bank is VERY MOTIVATED to get this house sold and may be willing to accept a much lower offer. At $189,900, there’s isn’t much else on the market that isn’t a short sale. This is a good price for this home in this location. If you’re interested in checking it out, let me know – I’d love to show it to you!
Also, don’t forget to sign up to receive instant blog post updates by email so you don’t miss any new real estate deals I find!
West Seattle 3 bed – Complete Remodel Just $314,950
Christian Nossum Licensed Real Estate Agent in WA State Wilson Realty Exchange
Cell or Text (yes, I do text!): 206-949-3048 Email: Christian [at] DealsInSeattle.com
Questions? Just ask! I'm here to help, so let me know!
As you may or may not know, I volunteer my time as the President of the Young Professionals Society of Rebuilding Together Seattle. Rebuilding Together Seattle (RTS) is a non-profit, and they recently 
