Brian Leavitt, REALTOR®

Bathroom Renovations Made Simple

The bathroom is one of the most popular home renovation sites. While some homeowners seek to dramatically redesign their bathrooms to create luxurious spa-like escapes, others plan basic renovations to upgrade fixtures and improve the value of the home. For these homeowners, and everyone in between, here are some easy tips to make a bathroom renovation painless.

8 Tips for a Stress-Free Bathroom Renovation

1. Choose your colors well. Stick with classic colors and neutrals, especially if you plan to sell in the near future. However, if you like a bold look, but don’t want to paint the room a vibrant color, select bright colored fixtures. The faucet, light fixtures, rugs, towels and artwork all provide opportunities for bold pops of color.
2. Know the building codes. If you need permits, apply early to make sure you get them in time. Also, make a list of the professionals you’ll need to enlist to get the job done. Bathroom renovations often become expensive because of the materials used and the specialists you have to hire, such as plumbers, electricians, etc.
3. Keep lighting in mind. The bathroom is where we get ready to start our days, so make sure yours is properly lit. If your bathroom is windowless, keep your walls a light color to make the most of artificial light. Look for UV lights.
4. Maintain the same footprint. If you decide to move the waste line, your costs will increase. Instead, keep the toilet and shower where they are, and only replace the fixtures themselves.
5. Do it yourself. If your tub has a few cracks, repair it yourself. You can also install the toilet yourself as long as you’re only replacing the toilet and not the plumbing.
6. Save money on cabinetry. Instead of expensive custom cabinets, buy stock or semi-custom cabinets, vanities and vanity tops, or use refinished side cabinets or a bedside table for storage.
7. Keep your space functional. A pedestal or wall-mounted corner sink can free up space for extra storage or luxury fixtures.
8. Go faux. Use tile that looks like natural stone—it’s cheaper and lower maintenance than real stone.

Remodeling the bathroom has a 64.1% return on investment.
Source: Realtor® Magazine, January 2011

The cost of the average bathroom renovation is $5,000, but can climb to $25,000 for a high-end project.
Source: Consumer Reports, January 2008

Install Green to Save Green

More than half of our indoor water use occurs in the bathroom.* As rates increase in many areas across America, homeowners are replacing old fixtures with ones that conserve water. In fact, many water districts and cities offer rebates for installing water saving faucets and toilets. Did you know that before 1992, the average toilet used 3.5 gallons of water per flush and the average showerhead used 5.5 gallons per minute? New toilets use a mere 1.6 gallons of water per flush, while the average high-efficiency showerhead uses 2.5 gallons per minute or less.*
Additionally, low-flow showerheads and faucets enable you to reduce your water-heating costs. This translates to more money in your pocket and less wasted water.

Do you need to replace your showerhead?
This simple experiment will give you an idea of how much water, and money, is going down the drain. Place a bucket under your showerhead and turn on the water. Time how long it takes for the water to reach the one-gallon mark. If it takes less than 20 seconds for water from your showerhead to reach the one-gallon mark, you may want to install a low-flow showerhead.  When replacing older models of faucets, toilets and showerheads, look for high-efficiency models bearing the WaterSense label, which meets third-party certification through the Environmental Protection Agency.

Green on the cheap
A cost-effective way to regulate the flow of your faucet is to replace the aerator, the screen at the tip of the faucet. For maximum efficiency, purchase an aerator  with a flow rate of one gallon per minute (GPM) or less. To make sure you buy the right size, unscrew the aerator from your existing faucet and match it with the options at the store.

Monthly Home Sales Report for the Eastside

March 2012 Homes Sales Report for King County & Cities of Bellevue, Redmond, Kirkland, Issaquah and Sammamish. March of 2012 King County closed sales were up 10.5% from March 2011 (2082 vs 1885) . The Eastside showed some very strong numbers as well with closed sales. Closed sales were up 14.8% (715 vs 623) The median home price in King County in March continues its downward trend to $295,000 down 7.80%. The Eastside Median Sales price was down 6.67% to $406,000.

An indication of increased market activity are pending. Pending sales across King County moved up 26.86%, and pending sales on the Eastside were up 31.19%. We are still seeing inventory numbers decline. In March total active listings were down 36.19% in King County and down 35.59% on the Eastside from March of 2011. Declining inventory means sellers may have a easier time selling good homes.

See the raw numbers from the Northwest Multiple Listing Service: Real Estate Market Data for King County March 2012 Data . Also take a look at the housing numbers for Sammamish and Redmond. In Kirkland the Market Action Index(a gauge of market activity) remains strong. While it's still a buyers market, it is much more balanced. With interest rates in the LOW 4's buyers affordability is at an all time high. Also see the national real estate trends at Realtor.com

Here is a breakdown of real estate homes sales in Seattle Eastside Communities of Bellevue, Kirkland, Redmond, Issaquah and Sammamish, Washington for the week broken down by neighborhood. Just click on the link to your neighborhood for the complete breakdown of the homes that are on The chart below breaks down Seattle Washington's Greater Eastside Real Estate homes sales by City, for the week of 04/18/2012.

City	# of Active Listings
Homes For Sale in Bellevue, Washington	540
Homes For Sale in Issaquah, Washington	338
Homes For Sale in Kirkland, Washington	385
Homes For Sale in Redmond, Washington	416
Homes For Sale in Sammamish, Washington	350

To find out what your home is worth or If you are interested in selling your home for top dollar in the quickest amount of time, please contact me anytime at 425-837-4700 or Click here to send me an e-mail requesting further information.

Home Sweet Bunker

The other day while watching TV I stumbled upon a show featuring bunkers that I thought was quite amusing. Nothing new here really. Bunkers have been popular ever since the cold war. They call themselves preppers now. The old name was survivalist. Is there a difference? In my real estate career I have sold several homes with bunkers. Most notably was a home with two basements, one beneath the other. The first or upper basement was pretty ordinary as basements go. The seller told me he had a bunker "just in case" and challenged me to find it. I never did. The entrance was hidden behind a row of shelves filled with jars of home canned peaches and the like. As the shelf slid out of the way a sheet of ordinary looking plywood came into view which was the cover of a three foot wide four foot tall steel door. The door was set on hinges that looked like they had been salvaged from the Titanic. He was delighted to tell me the door weighed over a ton and was made of solid steel. Inside the door was a stairway leading down to the bunker itself. The room was maybe 10 feet wide at best and 25 feet long with walls of shelving filled with food, bunk beds and supplies including case after case of old yellow civil defense canisters. The concrete walls were 3 feet thick and reinforced with steel re-bar. It turns out the seller was a former Boeing worker who worked on the old B52 program and was still living in the cold war. Pretty interesting feature but I can't say it added a lot of value to the home.

More recently I had a little incident with an appraiser who was introduced to a homeowners bunker or what he called his "quiet room." The appraiser was a young woman who was led down to the basement by the somewhat elderly homeowner who, after entering the room turned, closed the door and turned off the lights immediately plunging the room into absolute darkness and silence. Of course the appraiser not knowing this guy or his intentions totally lost it giving an entirely new meaning to the term "panic room."

Curious, how many of you know of homes with bunkers? Maybe we could all map them and when and if the big day comes we will know where to go to get food and shelter. Kind of like the bears raiding the honey tree except the bees have guns instead of stingers. Better yet why don't we all store a little extra food and if need be share with our neighbors and help each other out. What a concept.

The State of America’s Housing Market a look at the big picture

With spring on the horizon, many people are beginning to think about selling their homes. Even those not currently considering a move are curious about the state of the American housing market.

The information we are sending this month is intended to give you an overview of what’s going on in the national housing market. The statistics offered on the first page provide a glimpse into current trends and predictions for the year, while page two delves into the financing choices of recent homebuyers.

Here is a quick review of today's More than 80% of Americans view housing as critical to the nation’s economic recovery, and nearly 70% feel that a presidential candidate’s position on housing will be an important consideration in the voting booth.1 Whether you’re thinking of buying, selling or are actively involved in the market, the statistics below will give you a clearer perspective of the state of the market.

Current National Trends in Housing

• 70% of Americans view owning a home as part of the American dream.2
• 62% of consumers feel that buying a home in the current market is a good investment over the next 10 years.3
• $190,000: Median home price,4 up from $170,000 the previous year 5
• $155,000: Median home price of first-time buyers 4
• $219,500: Median home price of repeat buyers 4
• Homeownership rate rose to 66.1% in Q3 2011, up from 66.0% in Q2 2011.
• 6 95% of metro areas are expected to see home prices rise in the next year.7 75.1% of homeowners state that their home defines their identity.1 

Buyer Overview

• Buyers searched for a median of 12 weeks and visited 12 homes before they found the one they purchased.4
•  27% of homebuyers, including 60% of first-time homebuyers, said that the desire to own a home of their own was the biggest reason they bought.4
• First-time homebuyers comprise 37% of the market.4
•  64% of all buyers are married couples,18% are single women, 10% are single men and 7% are unmarried couples.4
• $80,900: The median household income of homebuyers.4
• 84% of buyers purchased a previously-owned home and 16% purchased a new home.4

 Seller Overview

• 35% of homes were on the market less than 2 months before they sold.6 The average time a home was on the market was 9 weeks.4
• 66% of sellers were first-time sellers.4
• 39% of sellers did not reduce the asking price,
• 26% of sellers reduced it once and 35% reduced the price two or more times.4

Sources: 1. Move, Inc. 2. Wall Street Journal, October 4, 2011 3. Bank of America: Mortgage Index Study, December 8, 2011 4. National Association of REALTORS® Profile of Home Buyers and Sellers 2011 5. National Association of REALTORS® Profile of Home Buyers and Sellers 2010 6. National Association of REALTORS® 7. CNN Money, November 4, 2011

Financing the Home Purchase Talk to Your Real Estate Professional Today! While these figures provide an overview of the national market, keep in mind that your local market may differ. Consult your trusted real estate professional for more information about your local market.

• The average rent on vacant properties is 28% higher than the average mortgage payment.1
• The estimated median monthly mortgage principal and interest payment of a first-time homebuyer was $794.2
• The estimated median monthly mortgage principal and interest payment of a repeat buyer was $1,006.2
• 94% of buyers financed their home purchase, including 96% of 25-44 year olds 82% of 45-64 year olds 66% of buyers 65 and older 2
•  35% of buyers had a down payment of 20% or more.2
• 74% of consumers who plan to buy a home in the next 12 months will use their personal savings for a down payment.3
• The average buyer financed 89% of the home purchase.2
• 94% of first-time homebuyers chose a fixed-rate mortgage.2
• 54% of first-time homebuyers used a low down payment FHA mortgage.2
• Mortgage rates are expected to rise and reach 4.5% by mid-2012.4

Sources: 1. Forbes, November 14, 2011 2. National Association of REALTORS® Profile of Home Buyers and Sellers 2011 3. Bank of America: Mortgage Index Study, December 8, 2011 4. National Association of REALTORS®

Search for cheap gas by zip code

Put this in the non real estate category but definitely helpful. Search for cheap gas by zip code.

http://www.seattlegasprices.com/index.aspx?area=Bellevue

Or if you prefer to buy a home closer to where you are going, click below to search all listings.

http://www.northstonehomesearch.com/

Make it a GREAT day.

If I Would You…

One of the best "closes" you will ever learn is the theme of one of my kid's favorite books, the venerable Dr Seuss in Green Eggs and Ham. Wikipedia sums it up best.

The story is told wholly through images and rhyming dialogue. There is no descriptive narrative or analysis. There are two main characters: The first is unnamed, and refuses to try the green eggs and ham. The second is named Sam-I-Am, and he refuses to believe someone could not like the dish. The plot revolves around the efforts of Sam-I-Am trying to get on the good side of his moody neighbor by offering him a dish of green eggs and ham. The neighbor refuses to taste the dish, and only wants to be left in peace. Sam-I-Am goes through an assortment of locations (house, car, tree, train, boat) and dining partners (fox, goat, mouse) trying to persuade his neighbor to eat, but he refuses to try them.

I remember reading  this book to my kids and it dawned on me that this is an effective sales method when done gracefully and well.

After showing what I thought was the perfect house to one of my, let's say, more difficult buyers, I asked the simple question, "would you like to buy this home".. "Not a chance, the colors are drab and the counters are shot, the yard is a mess, buying it, I, am, not" .. "If the home were painted, the counters changed out the yard cleaned up then would your mind you change?? "If I... would you" is one of best closes you will ever use IF the home meets the buyers general requirements. The key is knowing the difference between what you can change and what you can't. If the home is next to the freeway you can't move the freeway but if it is paint, carpets or anything that makes economic sense to change, then go for it. The objective is to find a home your buyer wants to buy, NOT sell them a home. If you can propose changes that allow the home to work for them then you are serving your clients well. Go get yourself a copy of Green eggs and Ham. Read it then give it away to one of your favorite kids. Happy Selling!

OK, It's real estate..

When one of my clients called the other day with a real estate question, I was surprised when she prefaced the question with “I know your main business is mortgage but...” I was delighted to help her with her question and found it interesting that the image I had cultivated is that mortgage is my primary business. One of the things this tells me is I need to do a better job educating my clients, so here goes.

Real estate is my primary business. In pursuit of my goal of delivering excellent service in real
estate I found that a consistent weakness in transactions was the mortgage component. This led me to the conclusion that the only way to make sure my clients were adequately served was to become
an expert in mortgage as well as real estate. I began serving my clients with their mortgage needs more than 18 years ago. The objective of the mortgage company has, from our first day in business, been threefold:

1. To serve my real estate clients by thoroughly educating them about their financing options so that they can select the best mortgage product for their needs.

2. To deliver competitive interest rates and low fees.

3. To maintain the highest level of integrity putting client needs first always.

Because of this we weathered the mortgage industry meltdown in a market that most of our
competitors did not survive.

As stated previously, real estate is my primary business but a large part of my success is the unique
ability to merge both the real estate and mortgage component taking service to a higher level. Even in the event that my client uses another source for their mortgage financing, the same level of
service and heart of the teacher are there.

In closing I would like to take a moment and say thank you to my many, many loyal clients who helped me during this very difficult time by referring friends and family for both their
real estate and mortgage needs. I can never thank you enough for your loyalty and support. I am blessed because of you.

Brian

Congressional action raises interest rates..

If you are thinking of a refinance or for that matter a home purchase, now is the time.

Conforming prices will increase based on recent Congressional action. Freddie Mac and Fannie Mae are increasing their guarantee fee effective with April settlements which will
worsen pricing. In order for a loan to meet the April settlement requirement it must fund prior to February 29th 2012.

The guarantee fee increase will worsen prices up to 80 basis points (8/10 of 1%) depending upon the note rate. Some lenders are staggering the increase based upon when the loan is locked in an effort to offer lower rates to consumers in the market for as long as possible.

If you are considering a refinance or purchase do it now if you can . Although interest rates remain at record lows there's no telling how long they will remain low and with this announcement we know that the cost of obtaining financing will increase.

Please note that the guarantee fee increase does not impact government loans.
For more details on this and any other financing options please call Brian Leavitt at Northstone Mortgage.

The Top 10 myths and misunderstandings about refinancing in today’s market..

1. It is just too hard to get a loan. The fact is for some time lending guidelines
   were just too easy. Today's guidelines have moved to a place that really does make sense. Qualified borrowers are finding the process to be reasonable and streamlined. The restrictions that have been put in to place are good for borrowers and for the banks making the loans.
2. I'm waiting for rates to go down. Right now rates are the lowest that they have
   ever been. Although it is possible rates could go down more it is unlikely. The Federal Reserve has indicated that they will be holding rates down for a period of time in order to help stimulate the economy but today's low rates are not going to last forever.
3. Since home values have dropped my loan would be above 80% so I would have mortgage insurance. Many borrowers qualify under the new HARP refinance program. Under HARP guidelines if you do not have mortgage insurance now you would not have it with the new loan. With rates now under 4% it is an amazing time to refi.
4. My credit score is just too low. Your credit score is not the only criteria
   the lender looks at. Often there are compensating factors that can mitigate a low score. For owner occupied homes refinances are available with scores as low as 620.
5. A refinance is just not worth the expense. Maybe true, maybe not. It is a simple calculation to determine the “recapture” time for the refinance. If your payment
   goes down $200 per month and the cost is $2,000 then $2,000 (cost) divided by
   $200 (monthly savings) equals ten months for recapture. If you plan on owning the home more than 10 months then it makes sense. Right now Northstone Mortgage is closing refinance loans with costs averaging in the range of $2,000 including all closing costs. *
6. My debt to income ratio is too high so I think it is likely I won’t qualify. Again
   this is a case by case decision taking into account multiple factors. I am seeing some high debt to income ratio loans get approved but when it makes sense. For example a borrower who is current on all of their obligations and having their monthly housing expense reduced is a “makes sense” loan with a high probability of getting approved.
7. I was on unemployment so my income was interrupted so I don’t think I can qualify. If you are back to work in the same line of work this is easily covered by a simple letter of explanation and a verification of employment from your present employer indicating that continued employment is likely.
8. I don’t want to start over with my loan. Good point. Rates are so low that we are moving many borrowers from 30 year loans to 10 or 15 year loans often without a significant increase in payment. We also offer 20 year loans. Paying your loan off quickly is one of the smartest money moves you can make. Call me anytime for more details on this one including a simple step by step plan to do it.
9. As soon as values come up I am selling so I don’t want to spend the money on a loan that I am paying off soon. Again, good point, however if you are waiting for values to rise it could be a long wait. Goldman Sachs released a report recently indicating that they do not believe we will see house values return to 2006 levels before 2023… that’s not a typo. It goes straight to the recapture question discussed in myth 5 above.
10. I have a second mortgage that I want to keep. I have been told that if I refinance I will have to pay it off and close the account. This one is sometimes true but usually not. Most of the time we can do what is called subordination. The way loans work is that when you close the loan you sign a promissory note which is your promise to pay the loan back and you also sign a deed of trust which is a document that is a lien on your home securing the promissory note. Each deed of trust is in lien priority based upon when it is recorded. When you pay off your existing first mortgage your second mortgage would then become the first lien UNLESS we ask the second lien holder to allow the new mortgage to be in first lien position or “subordinate” to the new first loan.

These are questions and concerns that I have been hearing from borrowers I have been recently serving. If you have questions about your specific situation please let me know. I am pleased to help any way I can. Usually the only way to learn if a refinance is a good idea is for us to “run the numbers.” There is no charge for this service.

*These fees are based on zero point loans with the lender paying the loan origination fee. Call for a free quote based upon your specific needs and situation.

Brian Leavitt

Northstone Mortgage

MLO#114864

One for the money.. two for the show..

Free Microsoft courses extended through October 2012

If your employees use Microsoft software to conduct business, here’s a deal
you can’t beat.

Employment Security extended its contract with Microsoft to make the company’s entire suite of
online courses available for free to Washington residents through October 2012.
The offer is open to anyone of working age – both the employed and unemployed.

Businesses can use the free training to improve the computer skills of one employee, or even
hundreds of employees.

Registration is handled through local WorkSource centers. Visit www.wa.gov/esd/e-learning to learn more or to request access codes. To contact your WorkSource center, visit www.go2worksource.com and click the “WorkSource Offices” tab to view locations.