Looking for a Green House?


If you are looking to buy a “green house” – Seattle is a great place to do that. There are several builders who have started specializing in building green homes and some homeowners have started using “green” products and building materials in their remodels.

Despite more awareness and a greater understanding about green building and what it means, there is still some confusion exactly what the term and concept means. There are generally five criteria: 1, environmentally friendly building site, 2, using an energy efficient design, 3, reducing water consumption, 4, promotion of quality indoor air and ventilation, and 5, using recycled products and sustainable products.

Newer homes often use LED lights now, which use a fraction of energy regular incandescent bulbs do. Energy Star appliances are used in most new homes and when homeowners are searching for a replacement of an old appliance. Energy Star appliances are certified to meet strict guidelines about how much electricity they require to operate. Many new homes now have toilets with 1/2 tank and full tank flush options.

Energy efficiency has been popular for some time, but unfortunately, making homes air tight has resulted in problems with mold, especially in moist climates like Seattle, however, new green homes are built with energy efficiency but also better ventilation technology.

Many countertops in green homes are now made of paperstone (recycled paper materials and resin) and floors are made of bamboo (and other sustainable resources).

If you are looking for a “green home” but don’t know where to find one, contact Kerstin at 206.276.5827.

Kerstin G. Brooks, ABR, Realtor
Brooks & Heinze Team
Remax NW Realtors

http://www.propertyinseattle.com/

400K Vertical House in Seattle


400K Vertical House in Seattle

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Free Homebuyer Workshops in Seattle


The Brooks & Heinze Team hosts Free Homebuyer Workshops in Seattle on the following dates:

Thursday: Jan 10, 2008 at 5:30pm at Remax NW Realtors in Northgate.

Saturday: Jan 19, 2008 at 11am at Wells Fargo.

Thursday: Feb 21, 2008 at 5:30pm at Remax NW Realtors in Northgate.

Saturday: Feb 23, 2008 at 11am at Remax NW Realtors in Northgate.

Thursday: Mar 13, 2008 at 5:30pm at Remax NW Realtors in Northgate.

Saturday: Mar 29, 2008 at 11am at Wells Fargo.

Thursday: Apr 10, 2008 at 5:30pm at Remax NW Realtors in Northgate.

Kerstin G. Brooks, ABR, Realtor
Brooks & Heinze Team
Remax NW Realtors
206.276.5827
http://www.propertyinseattle.com/

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Investing in the Baja – especially Baja California Sur


The market in the Baja is really exploding right now. Especially Baja California Sur, in and near La Paz, Todos Santos and Loreto. The reason for this is because there is a limited amount of affordable beachfront left in southern California, leaving folks who are looking for their own place in the sun without opportunities.

It’s not just the sunshine that lures people but the recreational activities, such as diving, kayaking, boating, wildlife, scenery, etc and proximity to the U.S. and Canada.

Baby boomers and investors in the United States and Canada… (especially from the West Coast, like Washington, Oregon, California and British Columbia) are looking for their second home or retirement home in the Baja California Sur area. The area can be easily reached with many airlines offering daily flights, such as Alaska Airlines.

Investors and retirees should be excited because it is still affordable. There is a lot you need to know about hot to buy real estate down there. It’s a bit like the wild west and you have to be careful who you are working with down there. The person advertising and listing a property might not be the right person to work with. I think there are great opportunities for appreciating property down there but as with any investment, do your due diligence and research; and work with professionals who know what they are doing and who will represent your best interest.

For more information on properties in the Baja California Sur area, please contact us at 206.276.5827 or at kerstinbrooks@earthlink.net

Kerstin G. Brooks, Brooks & Heinze Team
Remax NW Realtors
www.propertysalesmexico.com

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Real Estate Acquisition in Mexico


The following is a reposted article written by John M. Vernon, Esq. and was published by the CIPS Network of the National Association of REALTORS®

In representing U.S. clients in the acquisition of real estate to Mexico, a common question I am asked is whether Americans can own real estate in Mexico. Generally speaking, the laws of Mexico regarding the purchase of real property are similar to those of the U.S. For example, Mexican law recognizes real estate mortgages and various types of security interests in personal property.

In addition, in most real estate transactions, Mexican banks can act as escrow agents or trustees. However, there are a number of differences as well. Often, when Americans participate in their first real estate purchase in Mexico, they are surprised to learn that title insurance is not widely available.

Foreign purchasers should take steps to ensure they have full title insurance.1 Also, there is no widespread use of purchase and sale agreements as such documents are understood in the U.S. In the U.S., we are accustomed to an escrow period, a closing date subject to certain conditions precedent, the transfer of title, and the payment of the previously negotiated purchase price.

The Role of NotariesIn Mexico, notary publics play a critical role in the closing of real property transactions that is vastly different from their role in similar transactions in the U.S. Also, the tax implications of real estate transactions are much different than in the U.S. and non-Mexican individuals are restricted from holding “fee simple title” to real estate property in a defined area known as the Restricted Zone (Zona Restringida) along the coasts and borders.

Finally, as a result of the above factors, Mexican title to real property is often held and transferred through the use of trusts. The transfer of title to real property in Mexico is regulated by both the Civil Code and by the Commercial Code. In the U.S., the parties normally execute a purchase and sale agreement and a warranty deed evidencing the fact that title to the real property has been granted.In Mexico, the purchase and sale agreement is the deed and no other document exists evidencing title to the real property. Title to the property is transferred automatically upon the execution of the purchase and sale contract. Once executed, the transfer document is recorded in the Public Registry of Property where the real estate is located. Most real estate transactions in Mexico involving the transfer of real property require the notarization of the executed purchase and sale agreement.

Notary publics in Mexico are attorneys licensed by the local authorities to practice as notaries. They have a unique role in the conveyancing of real estate and the authentication of documents in Mexico. They are considered legal experts in real estate. Their primary function is to grant “public faith” that what they notarize is true and correct. They certify the identity of the person signing the documents, the veracity of the signatures, as well as the contents of the documents being signed.

In Mexico, unlike in the U.S., notaries must calculate the taxes due and owing, income tax, value added tax and public registry fees. Also, they are given the duty of withholding taxes from the purchase price to pay the appropriate taxing authority. Notarized deeds which effectuate the conveyance of title to Mexican real estate usually include a narrative whereby the notary public describes all relevant information relating to the transfer of the real estate, such as any existing real estate liens, property descriptions, taxes owing and any encumbrances. The notaries’ duties also include the certification of all contents of the purchase and sale agreement, taxes to be paid, any special terms and conditions of transfer, and an appendix of all exhibits prior to recordation in the Public Registry.

Foreign Equity Participation. Acquisitions of real property by foreigners or by Mexican legal entities with foreign equity participation are regulated by the Mexican Foreign Investment Law. Mexican nationals may acquire real property anywhere in Mexico. Mexican legal entities with foreign equity participation may freely acquire real property anywhere outside of the Restricted Zone. Article 27 of the Mexican Constitution defines the Restricted Zone as land that is located in a path 100 kilometers wide along Mexico’s borders and 50 kilometers wide along the Mexican coasts. Within the Restricted Zone, such legal entities may acquire real property intended for non-residential use, as long as the acquired property is registered with the Mexican Foreign Affairs Ministry.

It is important to remember that registration with the Mexican Foreign Affairs Ministry must be completed before the purchaser obtains legal title to the real property in question. Foreign natural persons or legal entities acquiring interests in real property in Mexico’s Restricted Zone may only acquire their interests through a trust.

In Mexico, a trust is a contract that has as a trustee a Mexican bank; a trustor who places the property in trust; and a beneficiary for whom the trust is intended to benefit. For acquisition of real estate like hotels or restaurants in the Restricted Zone, a trust is often used by foreign purchasers to acquire title to the beneficiary interest created by the trust.

Title to real property is actually vested in the trustee and the purchaser holds title to the beneficiary rights, not the real property. Title to real property is “indirectly” transferred to the beneficiary immediately upon execution of the agreement. Mexico holds many opportunities for acquisitions and expansion but you must be very careful when entering a new market for the first time.

The Brooks & Heinze Team can assist you with your real estate needs in La Paz, Loreto, Los Cabos, Puerto Vallarta and Merida (Mexico). For more information please contact us at 206.276.5827 or log on to http://www.propertysalesmexico.com/ .

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Stable Existing-Home Sales Expected in Early 2008


Repost of an article posted on the National Association of Realtors Homepage talking about nationwide existing-home sales and appreciation in 2008:

http://www.realtor.org/press_room/news_releases/2008/pshi_jan08_stable_existing_home_sales.html

Stable Existing-Home Sales Expected in Early 2008, then Gradual Rise

WASHINGTON, January 08, 2008 –
Over the next few months, existing-home sales are expected to hold fairly steady as indicated by pending sales activity, then rise later in the year and continue to improve in 2009, according to the latest forecast by the National Association of Realtors®.

Lawrence Yun, NAR chief economist, said there is a pull and tug exerting itself on the market. “On the one hand, we have a pent-up demand from the four million jobs added to our economy over the past two years of sales decline,” he said. “On the other, consumers continue to wait for additional signs of market stabilization. There are more people with financial capacity now than in 2005, but many are trying to market-time their purchase. As a result, the exact timing and the strength of a home sales recovery is a bit uncertain. A meaningful recovery in existing-home sales could occur as early as this spring, or it may be further delayed toward late 2008.”
The Pending Home Sales Index,* a forward-looking indicator based on contracts signed in November, fell 2.6 percent to a reading of 87.6 from a strong upward revision of 89.9 in October, but remains above the August and September readings and indicates a broad stabilization. The index was 19.2 percent below the November 2006 level of 108.4. “Although there could be some minor slippage in the first quarter, existing-home sales should hold in a narrow range before trending up,” Yun said.

The PHSI in the South rose 2.3 percent in November to 100.7 but is 19.8 percent below a year ago. In the West, the index slipped 2.1 percent to 86.6 but is 18.5 percent lower than November 2006. The index in the Midwest fell 4.1 percent in November to 82.1 and is 18.6 percent below a year ago. In the Northeast, the index dropped 13.0 percent in November to 70.1 from a spike in October, and is 19.1 percent below November 2006.

Existing-home sales for 2007 will probably total 5.66 million, the fifth highest on record, then edge up to 5.70 million this year and 5.91 million in 2009, compared with 6.48 million in 2006. Existing-home prices for 2007 are likely to be down 1.9 percent to a median of $217,600, hold even this year and then rise 3.1 percent in 2009 to $224,400.

“Rising home prices in the affordable midsection of the country are likely to offset declines in some of the previously hot markets,” Yun said.

There are wide variations in housing market conditions around the country, with nearly two-thirds of the metropolitan areas showing price gains. Healthy increases in metro prices are occurring in places such as Pittsburgh; Beaumont-Port Arthur, Texas; San Jose, Calif.; and Bismarck, N.D.

“Our consumer survey shows buyers today are in it for the long-haul, planning to stay in their home for a median of 10 years. This is a wise approach to housing because the data shows the longer you own, the better your investment,” Yun said.

New-home sales are projected at 773,000 for 2007, and declining to 669,000 this year before rising to 730,000 in 2009, but well below the 1.05 million 2006. With an appropriate slowdown in production, housing starts, including multifamily units, are forecast at 1.36 million for 2007 and 1.09 million this year before edging up to 1.10 million in 2009; starts totaled 1.80 million in 2006. The median new-home price should drop 2.1 percent to $241,400 for 2007, and then rise 0.4 percent to $242,200 this year and gain another 5.9 percent in 2009.

“Some policy changes, such as raising the loan limit on conventional mortgages, would provide a significant boost to home sales, increase liquidity, strengthen home prices and lessen foreclosures, but it is unclear as to if and when the measure will be implemented,” Yun said. NAR strongly supports raising the Government-Sponsored Enterprise loan limit to at least $625,000 from the current $417,000 so that more consumers will have access to lower interest rates on safe conforming mortgages. “NAR estimates that raising the GSE loan limit will result in interest rates savings for an additional 330,000 homeowners,” he said.

NAR also encourages the Fed to make a single lump-sum cut in the Fed funds rate to 3.5 percent at the January Federal Open Market Committee meeting, rather than a series of modest cuts throughout the year. “Consumers are also looking to market-time interest rates, and the expectations of further rate cuts are pushing some home buyers to delay. Monetary policy will be much more effective with a one-time large cut, rather than a series of small cuts,” Yun added.

The 30-year fixed-rate mortgage is expected to rise slowly to the 6.3 percent range by the end of this year, but an additional cut in the Fed funds rate would lower short-term interest rates.
Growth in the U.S. gross domestic product (GDP) is seen at 2.1 percent in 2007, below the 2.9 percent growth rate in 2006; GDP growth will probably be 2.0 percent this year.

After averaging 4.6 percent for both 2006 and 2007, the unemployment rate is estimated to rise to 5.3 percent in the second half of 2008. Inflation, as measured by the Consumer Price Index, is projected at 2.9 percent for 2007 and 3.1 percent this year; it was 3.2 percent in 2006. Inflation-adjusted disposable personal income is forecast to grow 3.1 percent for 2007, the same as in 2006, and then grow 1.6 percent this year.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

# # #
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.

The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity from 2001 through 2004 parallels the level of closed existing-home sales in the following two months. There is a closer relationship between annual index changes (from the same month a year earlier) and year-ago changes in sales performance than with month-to-month comparisons.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales.

Existing-home sales for December will be released January 24; the next Forecast / Pending Home Sales Index will be released February 7.

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Buying Property in Mexico


Are you thinking of Buying Property in Mexico? Are you looking to retire in Mexico or purchasing a second home/condo in Mexico?

You may be wondering if Americans can buy property in Mexico and how safe is it to buy in Mexico.

The process for foreigners to buy property in Mexico is different than for locals, foreigners can enjoy all the rights of ownership when buying in Mexico. In the early 1990s, with significant changes in Mexican law and with the introduction of North American Free Trade Agreement (NAFTA), safely owning property in Mexico along the coast became a reality. Today, more than 1.5 million Americans own property in Mexico.

However, it is still important to work with qualified professionals to protect your interests. Together with our trusted partners on site, we can make sure that you obtain ownership rights by setting up a bank trust, similar to a U.S. family trust (known as a fideicomiso). Technically, you are the beneficiary. As such, you are allowed to use, lease, sell, will, improve or encumber your property. A new trust is established for 50 years and is renewable.

To learn more about purchasing property in La Paz, Los Cabos, Loreto, Puerto Vallarta, and Merida contact us.

Brooks & Heinze Team
Remax NW Realtors
Web: www.propertysalesmexico.com
Email: kerstinbrooks@earthlink.net

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Is the Seattle Real Estate Market Tanking?


What’s happening to the Seattle Real Estate Market? The market has cooled off but compared to much of the rest of the country, the market in Seattle is healthy and not tanking.

Seattle has strict growth-managment policies and therefore has not seen the same building boom as some parts of Arizona, for example. So overbuilding isn’t as much a problem here as it is in some other areas that have seen tremendous urban sprawl. We do not have an overabundance of vacant inventory.

A strong job market is key to a healthy housing market. The number of new jobs has outpaced or at least kept up with building permits for single-family homes and condos in this area. The Seattle Area has seen a tremendous amount of local job and population growth. In fact, “growth in this sector is running twice the national average, plus high wages. Local per-capita income, expected to be $46,356 this year, is 19.7 percent above the national average” (Elizabeth Rhodes, Seattle Times, December 2007).

Location. Location. Location. Yes, real estate is local and even though some areas can be doing really poorly, some areas can do really well. And yes, Seattle is doing well, although, national factors do and will affect all local markets. National factors have affected the Seattle market.

In the summer of 2007, the mortgage industry saw a meltdown which resulted in a shortage of funds available to lenders for home loans. Money was and still is difficult to come by for credit-challenged borrows. With fewer qualified buyers there is less competition – less demand – lower prices.

So, although Seattle has a lot going for it, particularly a strong and good employment, it can’t be completely incubated from the national crisis.

We get a lot of clients asking us to predict the housing market. Obviously, we can’t do that. We think that the market has slowed down and that appreciation will be relatively flat for a while.
However, we would not expect home prices to drop in the Seattle area.

Some of our buyer clients we have been working with have decided to wait and see what the market will do. And some of our sellers have decided to sell “before the bottom drops out” or have decided to wait “until prices go up again”. Clients ask us what the best time is to buy and sell.

If you are looking to speculate in the market short term, I would say – stay out. It is simply impossible to predict with any certainty exactly what the market will do.

If you are a renter, thinking of buying, I would say – do it. If you can qualify for a mortgage now and you think you will occupy your new property for at least 5 years, buy now. It is a buyer’s market (for the first time in a long time in Seattle !!!). Now is the time to negotiate on a good price, get some closing costs paid for and get some critical repairs paid for by the seller). We do not predict prices to drop much if at all and mortgate rates are great right now.

If you are a seller, thinking of selling, I would say – maybe. If you plan on staying in the area for only a short while longer, because you are retiring, relocating, etc. Do not switch to being a renter. Do not list your home for sale in the winter months. Come on the market in the spring. (November through January – are usually slow months for real estate in Seattle). If you plan on staying in Seattle long-term and like your home, keep it. Remember, there are other benefits to owning a home besides appreciation such as tax benefits, pride of homeownership, etc. If you have outgrown your home and plan on moving into a bigger home, now is a good time to do that. Yes, you may not get top dollar for your current home but you will get a great deal on the new home (which presumably is more expensive and your savings in percentage will be greater on the new house than the “loss” on the old house).

If you have any questions regarding this particular blog entry or any other questions regarding real estate, please feel free to contact us at your convenience.

Happy New Year!!!

Kerstin G. Brooks

Brooks & Heinze Team
Remax Northwest Realtors (Seattle)
Email: info@propertyinseattle.com
Web: http://www.propertyinseattle.com/
Cell: 206.276.5827

This article was written by Kerstin G. Brooks, Realtor, ABR

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