Windermere Woodinville Blog

Each country has different laws, and there may be additional immigration requirements, such as a health exam and a criminal background check.

Some countries offer preferential treatment for American retirees.

The First Step

Contact the consulate or embassy and find out how easy it is to get the appropriate visa for your country of interest. There are different procedures to obtain the appropriate visa or residency permit, but a large number of countries allow foreigners to visit between three and six months without a special visa and do not require visas for volunteer work or language courses.

Living Abroad Research Tools

The resources below will help to give you an idea of how your country of interest compares to others in important areas such as health, human rights, economic and political stability, and more.

Corruption Index – published by Transparency International. www.transparency.org

Cost of Living Survey – covers 144 cities worldwide. Source: Mercer Human Resource Consulting. www.mercerhr.com

Failed States Index – compiled by the Fund For Peace and Foreign Policy Magazine. www.foreignpolicy.com

Global Competitiveness Report, World Economic Forum – www.weforum.org

Human Development Index, United Nations Development Program (UNDP) – http://undp.org

Human Rights Report, Amnesty International – www.amnesty.org

Worldwide Cost of Living Survey, Economist Intelligence Unit – www.eiu.com

World Health Organization – www.who.int/en/

Centers for Disease Control: www.cdc.gov.

 

Thanks for considering our blog.

• Perhaps better, generally, for experienced investors
• Make offer at market value (yes some price advantage to buyer but be reasonable)
• Understand properties usually “as is”
• Have resources for repairs and rehab
• Not good if must buy contingent
• Properties might be gutted or with damage
• Agents should preview these if possible
• May not have electricity, water or gas on for inspection
• REO may want their forms used (buyer may need to consult a lawyer)
• May try to shift things like excise tax to buyers.
• Buyer must be pre-approved
• Ask for closing date sooner rather than later.
• Disclosure statement (Form 17) is required on REOs
• Make sure you reserve your “walk through” rights (at least five days before closing). You usually buy “as is,” but even at that want to make sure the home is in same shape (not vandalized in the interim) as when you saw it. In this connection buyer’s agent can take photos at the time the home viewed.
• Most REO asset managers want to close at end of month.
• Watch per diems for late closing if buyer gets hung up and can’t close on time (make sure buyer has a good lender).

Thanks for considering our blog.  Much appreciated.

We have been working with first-time home buyers in South Snohomish County (NWMLS Area 610).  It’s quite surprising how much home you can find from $250,000 to $275,000 in this area.

There is also much new construction in the south part of area 610.  A first-time home buyer can get in  for about $270,000.  The homes are small, but the properties can be nice and it takes from 60 to 90 days to build one for the client.  Upgrades aren’t bargains -   a fireplace can run the buyer $2500 to $3000.

We also find lots of short sales and quite a few REO’s (bank owned) in area 610.  One nice short sale property (with two lien holders) drew five offers, escalator clauses, and the winner offered all cash.  Keep in mind the seller gets nothing on these short sales.

We conclude that for first-time home buyers in area 610, buying in the range of $250 to $300 thousand the market is very active and coming around to a seller’s market - witness the multiple offers on many properties.  Agents are pouring over this area, previewing and showing their first-time home buyers.   The nuggets sell.  Cumulative days on market are relatively short for these good ones, e.g., 14 to 40 days.  Sometimes you suspect short sale listing agents of pricing low to create “bidding wars.”

Short sale listing agents become more savvy about attracting and holding quality buyers. Short sale agents are now marking up the NWMLS Short Sale addendum to remove the right of the buyer to walk any time before lender approval. 

These agents also require the buyer to pay for and finish  inspection in the first week after mutual acceptance and they may require financial pre-qualification of buyers with their own lender-representative even though the buyer already has pre-qualified a responsible mortgage representative.

The short sale and REO properties are most generally “as is,” putting more emphasis on the inspection and the purchase of a home warranty for that first year in case the furnace or water heater goes south.

REO properties might be found “winterized” (read no power, water or gas available), so inspection becomes a challenge.

As usual the banks or lien holders always want to cut agent commissions on short sales and REO’s so buyer agency agreements are a must for selling office (buyer’s) agents.

Just some observation on NWMLS Area 610 and working with first-time home buyers.

Thanks for reading our blog.

If you hang around real estate transactions for long you will hear the term “underwater.”  Or you will hear, “the seller is underwater.”  What’s that mean?

It means that the seller owes more on the mortgage than the house will bring on the market.  For example, the Seller still owes $350,000 on the mortgage taken out to buy the home and the home will only sell for $275,000 on today’s market.   The seller is $75 short.  Seller cannot pay off the mortgage holder and deliver clear title to a buyer.  The seller is underwater.  The home is worth less than the debt.

Thanks for reading the blog.

The Historical View of Home Values

Let’s take a historical view of home prices in America.

Only recently have values spiked dramatically.

The old castle wasn’t always seen as hot investment … but just as shelter.

Thanks for reading our blog.

The above chart tells realtors and interested parties that a “balanced market” returns to the King and Snohomish county areas.  The red even indicates more of a seller’s market.

Good sign for a healthy real estate market.

Thanks for reading our blog.

Over time, real estate proves to be a most solid investment.  Real estate has less volatility than the stock market and over the historical long-term remains a better return on investment. 

Take this example from National Association of Realtor’s Lawrence Yun:  if a buyer were to put down $10,000 for a down payment on a typically priced home in the United States at a typical appreciation rate of five %, the buyer would see a return of $110,300 after ten years.  The same $10,000 invested in the stock market appreciating 10% annually will result in $23,600.

Those who choose to keep their homes for six to ten years (and not flip for profit) have an investment that pays off well.

Thanks for reading our blog.

The housing cycle of the mid 80s and early 90s demonstrated that a pause in price appreciation is always succeeded by a rise and is part of the the historical cycle.  (Source Federal Housing Finance Board Monthly Survey.)  The bull does return.

Thanks for considering our blog.

Thanks for reading our blog.