Uncategorized • July 12, 2013

Effects of Rising Interest Rates and Rent v. Buy

by Michael Doyle

This helps to explain the buyer enthusiams we are seeing in Seattle: With a few exceptions for entry-level homes, interest rates are not yet so far from the low that a previously excited buyer will not buy something. But, they have moved far enough from the low to create additional urgency.

Cool regionally adjusted numbers in the body of the article (the 10.5% accounts for the less robust markets in the US). http://www.forbes.com/sites/trulia/2013/06/14/buying-cheaper-than-renting-til-mortgage-rates-hit-10-5/

Uncategorized • June 19, 2013

The Scarlet Letter

by Michael Doyle

Well Friends, I've recently had the Scarlet Letter pinned to my chest. That's right, _horrible_ credit. "Oh, what happened, 'o proud real estate agent who thinks he’s so smart?! How could this be?"

Turns out, it is simpler to ruin one's credit than I previously understood. All I did was to visit a doctor that I hadn't seen since I'd moved (5 years ago) and neglect to update my billing information with them. They billed…1x, 2x, 3x, 4x…then sent to collections. I knew nothing of the issue (no, I was not sitting around wondering when that sports medicine bill would arrive). They said they normally call if mail gets returned, but…mail didn’t get returned until after they’d sent to collections. Then, the issue festered…

Recently, I finally started to deal with re-financing a property. Brick Wall. Then, I had several conversations in which I was warned that “this is a call to collect a debt and is being recorded.” It did not feel good. It will take 45-60 days for my credit to recover, even though it was an error and I paid immediately on discovery.

Takeaways:

-If you are thinking of refinancing and have chosen your lender, ask them to pull your credit early; before you think you need it (or check it yourself).

-Maybe the monthly fee for services like www.Experian.com is relatively inexpensive.

-There are a lot of people out there struggling to pay bills that I can readily pay (once I know about them). #solucky.

Uncategorized • July 24, 2012

Buying and Selling at the same time? – Reminder of some elements to consider

by Michael Doyle

I just had friends/clients with a home to sell and the hopes to make a lateral buy ask me about timing and "to repair / or not…to repair?" For others in the same situation, here's my response. Glad to hear any comments.

There are a lot of moving parts, of course. When thinking of timing of sale and whether or not to repair, at least the following are relevant to consider in terms of cost/value:

-the quality of the market for sellers/buyers; you’ll be both (currently a seller’s advantage)

-any hurdles to selling (condition, location, etc) that a seller's advantage market will assist in leaping?

-disruption to the family unit (would you move 2x?)

-cost v value of repairs (I’m guessing I’ll suggest painting only; not roof and/or windows).

-cash flow

-cost of money for you as buyers (assuming you'll get a loan)