Danielle Groeneweg

Danielle Groeneweg, Realtor®

MANAGING BROKER

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Update on Whatcom County Stats

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Well, it’s been awhile since I blogged – welcomed a new little one March 1st and life’s been crazy, but here is a little update on the market per my website stats
For month of MARCH 2013 for Whatcom County:
Total Pendings: 262
Total Solds: 169
Total Active: 1044
How does this fare with past months and vs same month one year ago?
March 2013 vs February 2013
Pendings: up 35.1%
Solds: up 37.4%
Total Active: up 8.8% (sellers are listing for Spring)
March 2013 vs March 2012 (one year ago comparison)
Pendings: up 48.9%
Solds: up 1.2%
Total Active: down 5.1% (due to decreasing inventory we are currently seeing in market)
Conclusion: Homes are selling much more quickly in comparison to last month, much the less last year. Inventory is down from last year and we will see this create more competitive offers (we’re even seeing multiple offers again), homes pending faster, and less options for buyers currently looking. If you are a buyer, get out and find your dream home before interest rates increase and inventory reduces even more (although you will see slight increase as we enter into Summer). If you are a seller, depending on how unique your home is to the market it may be the perfect time for you to list and sell quickly and for more than the last year.

Changes to how Short Sales effect Sellers’ taxes – IMPORTANT!!

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The Mortgage Forgiveness and Debt Relief Act and Debt Cancellation as defined by www.irs.gov:

If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable.

The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.

This provision applies to debt forgiven in calendar years 2007 through 2012. Up to $2 million of forgiven debt is eligible for this exclusion ($1 million if married filing separately). The exclusion does not apply if the discharge is due to services performed for the lender or any other reason not directly related to a decline in the home’s value or the taxpayer’s financial condition.
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This Act has been allowing sellers who sell their home via Short Sale in many situations to be forgiven the taxes that would’ve been owed on the amount they were forgiven by their lenders. For example: if a person sold their home for $250,000 and owed $300,000 they would under normal tax law be taxed for the $50,000 deficit as though it was income for the year. Under the Debt Relief Act, they were not taxed on the deficit in most situations.
As of 1.1.2013, this Debt Relief Act is expired and as of today does not appear it will be extended or renewed. What does this mean for current or future sellers of short sales that will not close by 12.31.12? It means that you may be taxed for a portion or all of the amount forgiven by your lender(s) when you complete a short sale of your home. Depending on how much you are forgiven, that could mean quite a difference in your taxes for the year.
I am NOT an accountant, nor an attorney – so PLEASE seek legal and tax advice from your tax accountant and attorney to see how this law may affect your situation in particular. Your Realtor should be advising you on this issue however if you are currently pending in a short sale and are set to close after the first.
If you would like more information about the real estate side of a short sale, please contact Danielle anytime. 36.483.6490

Sellers – when is the best time to list?

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If you are thinking of selling your home, how do you know when the best time to list is? There are several factors to be considered when thinking of the prime time to list your home
First – how is the inventory currently in your local market? If you aren’t sure – just ask me and I’ll pull stats for your local market. If the inventory of a comparable house to yours has decreased (as in not much competition for you), not only is it a great time to list, but you can ask more for your home.
Second – what time of year is it? It’s commonly known that the best time to list your home is in the Spring before the busier Summer months, but that means everyone else is thinking alike and will or plan to list then as well. Consider the balance of having more competition vs more buyers looking. You may find it’s better to list in the off months (like January) to get a head start on the rest of potential incoming inventory.
Finally – how ready is your home for listing? If you have any major repairs or cleaning to do, it’s best to wait until you have completed your projects than list while you are in the midst of them. You don’t have to make your home perfect for listing, but you can sometimes sell for $10,000 more when your home is properly prepared before listing. For a complete list of pre-listing suggestions, visit the ‘Sellers’ page of my website.
If you live in Lynden and your home would currently be worth $300,000 or less aprx, the market is very hot still in this price range.
As always, for more info or assistance, please contact me anytime! ~Danielle Groeneweg 360.483.6490

Inventory Reducing – Prices show Rise

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According to statistics from Northwest Multiple Listing Services, inventory in Whatcom County has decreased when compared to 2011. From Jan-Sept 2011 there were aprx 2950 new listings in Whatcom County and from Jan-Sept 2012 there were aprx 2814. On the other hand, pendings and closed sales have risen during those same comparable time frames. For 2011, there were 2005 pendings total and for 2012 there were 2196 (from Jan-Sept). For 2011 there were 1378 closed sales and for 2012 there were 1520 (from Jan-Sept). These are just Residential listings and do not include commmercial, land, or multi family.
According to same statistics for same time period, Average price of Active listings, Median price of Active listings, Average price of Pending sales, and Average price closed sales are all indicating a slight increase (with the highest increase being in average Active listing price).
What does all this mean?
~If you are a buyer, it is time to move in or move on. If you wait too much longer, you will very likely miss the perfect storm we are experiencing in today’s market of home prices and interest rates (which are still at record lows).
~If you are a seller, it is a good time to put your home on the market if you are looking to make a move. Not only will you get more for your home now than you would’ve in the last few years, but since inventory is down you may be entering a much more competitive market (depending on your neighborhood, house, and price).
For more information, to find out what your home is worth or how competitive the market you are currently shopping in is, please contact me (Danielle) anytime!
~ 360.483.6490

Market even HOTTER at end of summer!

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This is insane around here lately! We are seeing homes pending and selling left and right in Whatcom Co; people are scrambling to get in before the Fall starts to settle and the amount of action is inspiring!

Just as of today 8/28/12 (as in the last 24 hrs only), we have 20 new pendings and 11 solds. If you are looking to buy, don’t hesitate too long if you find that perfect home, it might be swept out from under you with these conditions. If you are even thinking of selling, you may be surprised how fast your home moves on the market today if priced and shown right.

If you have any questions or want more info, as always call me anytime ?

~Danielle 360.483.6490

Bank Owned & Short Sales REDUCED

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The number of bank owned and short sale properties in Whatcom County has decreased by 12% in the last 3 months! What does this mean for the market? I’m sure you guessed it, that means that less properties under duress are coming on the market in keeping w/the number selling. This is true of properties in general in our lovely county here, but it’s a good sign that these ones are starting to stabalize so that seller’s can start to expect more money for their homes instead of continually dropping their prices.
For more information on the average days on market, sale price and more – visit www.whatcomcountysearch.com and click on Current Market Stats or call Danielle at 360.483.6490

Buying a Short Sale 101

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Many buyers in today’s market are looking at short sales due to the value for the $. Some key points for buyers to know when looking at offering on a short sale:
1) Closing the transaction could take up to 6 months.
2) If the short sale has a ‘bank approved’ price, it should close more easily and quickly depending on how close the buyer’s offer is to that listed price.
3) If you have to sell your home first, a short sale or bank owned home will not be an option. Banks will not allow contingencies for selling the buyer’s home typically.
4) Keep in mind that just because the list price is low or your low offer was accepted by the seller, that does not mean the bank will accept even near that amount. Typically, the banks’ approved price will depend on how much the home appraises for and what is owed.
For more information and assistance in finding a short sale or good deal for you, please contact Danielle Groeneweg (360.483.6490)

Relay for Life in Lynden

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Come join us at Muljat North tonight at 6pm to participate in this amazing event celebrating life! It is located at the Lynden NW Washington Fairgrounds this year and rain or shine it will be busy. We have a tent again this year, so feel free to stop by and take a break from the rain ? Hope to see you there!

Check out our New Resources for Buying & Building Page!

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Visit this page to have the tools you need to find out about buying land and building or developing all in one place. This page is designed specifically to make it EZ on buyers, developers, and property owners to access all the important resources necessary to complete their project. For more information or if you have any questions about these resources, please contact Danielle Groeneweg 360.483.6490