The Real Deal Newsletter - October 2023

Real Estate & Other Fun Nuggets of News & Information!

Author

Joe Frank
October 16, 2023

The Real Deal Newsletter for October 

In this month’s Newsletter we’ll look at the following:

  • Are we in a Buyer or Sellers Market

  • Do you need to disclose a haunted house, or if there’s been a death?

  • How to get a better interest rate on your home loan (or any loan)

  • Local Snohomish County Real Estate Trends

  • The Broader Economy - Economic & Real Estate News

  • Financial Investing Tips & Tricks

  • Fall Home & Yard Tips

  • AI - Artificial Intelligence

  • Other fun nuggets

If you don’t currently receive my monthly mailed newsletter, “Front Porch News” and would like to, please email me at [email protected] and I’ll get you added!

Are We in a Buyers or Sellers Market?

About 1.5 years ago (March 2022), interest rates started to climb into the 5% range after several years close to 3%. Everyone held their breath, waiting for a market crash. It never happened. Now we're perilously close to 8% and still a crash is unlikely.

While there are definitely variations across local markets, it's likely the market will stay tilted towards sellers until people get used to higher interest rates. Experts believe within about two years, we should begin seeing a more balanced market, with negotiation power tilting back toward buyers.

When Will We Shift to a Buyer’s Market?

Prices would need to significantly decrease for it to become a buyer's market, and currently there's no reason, nor any signs of this happening anytime soon. Of course with any market, there can be events that trigger swift changes. Rates are likely to stay relatively high. Buyers who can qualify to buy now, probably should go ahead with their house plans at this point.

Should You Sell Now?

Selling now might not be a bad idea, as long as you can find a replacement property. Your home's value may rise some, but so will your next property. If you're ready to move, let's find your replacement home first, then make an offer that's contingent on the sale of your home. 
Call or Text me to get the ball rolling! 425-501901

When Selling, Do You Need to Disclose a Haunted House?

Houses are prime for hauntings because they're often full of tragedy, including violent death, illness, and bad luck. It used to be common for people to die at home rather than in a hospital, and those people might hang around due to unresolved issues, or just because they're "lost."

Children in particular get lost, as with the 10-year-old boy of The Gladiolus Street House, New Orleans, who's said to laugh at the owner when she makes mistakes like dropping a pot. Other hauntings are more sinister, like the creepy Amityville Horror House in New York, which is said to have oozed black slime and possessed the residents.

The Ghostbusters Ruling

Consider the Ackley House (New York), which enjoyed friendly, but noisy ghosts: When the house sold in 1980, the buyers claimed the owner didn't disclose the ghosts. The buyers were allowed to pull out of the deal in a ruling called “The Ghostbusters Ruling." Similar rulings in some US states require disclosure for a death on the property.

Need to Disclose Your Hauntings?

Are haunted houses real? Likely not, according to examiners who explain away most stories. Real estate disclosure laws vary by state, and the disclosure of paranormal activity or whether a house is believed to be haunted is not typically covered by these laws. In most states, the focus of disclosure requirements is on material facts that could affect the property's value or pose a risk to the buyer's health and safety (structural, environmental, etc).

It's important that you work with your local real estate broker that’s familiar with the specific real estate laws of the state in question. Remember, regulations can and do change. Additionally, local practices and customs may influence how real estate transactions are handled regarding paranormal or psychological factors. Consulting with a local real estate professional or legal expert can provide more accurate and up-to-date information on disclosure requirements in a particular state.

For Washington State specifically, you are NOT required to disclose that your friendly ghost (i.e. paranormal activity) in the basement or attic makes random sounds through the night.

Need to Disclose A Death in the Home?

Real estate disclosure laws regarding deaths in a home vary by state. Some states have specific regulations related to disclosing deaths in a property during the sale process, while others do not.

States such as California, Alaska, and South Dakota generally do not require sellers to disclose whether a death occurred on the property due to natural causes, suicide, or accident. However, if the death was a result of a violent crime or a homicide, disclosure might be required. States also have statute of limitations, or time constraints as to whether a death must be disclosed to a potential buyer.

On the other hand, some states, like Texas, do not mandate the disclosure of deaths on the property, regardless of the circumstances.

Again, it's crucial to understand that real estate laws and regulations are dynamic, so it’s always recommended to consult with you local real estate professional or legal expert that’s familiar with the laws and practices in your specific state and locality.

For Washington State, you do NOT need to disclose that there was a death in the home as it’s not “material fact”. If you’re so inclined, here’s the specific RCW (18.86.010), Washington State requirement.

However, according to Realtor.com, if a potential buyer asks a home seller if there’s been a death in the home, then “…you are legally required to tell them the truth or risk legal repercussions.” This can be somewhat of a grey area, so if you’re home has experienced a death, it would be a good idea to strategize with your local real estate professional and real estate attorney on how to best handle, so you have a plan as you begin the home listing and sale process.

If you have questions on states outside of Washington, here’s a great resource to start your investigation. Consider supplementing your own research by working with a local real estate professional for more insight and information.

The Flip Side

What if you’re looking to buy a home and want to ensure a home your are interested in has NOT had a death? Well, it’s something you can work with your real estate broker on how to best approach. However you can also do some digging of your own by using online sources such as:

Looking for a house of your own to haunt? Call me to go house haunting...hunting! J 425-501-6901

How can I get a better rate on my mortgage?

A mortgage is like any product that's being sold by a company. The company wants to make a profit, as do banks. To do such, a bank/lender profits on your mortgage by charging you to borrow their money. The interest is the price they charge above what it costs them to get the money (their funding cost).

Banks get money both by borrowing it and investing. When they borrow money to lend to you, they must pay government interest rates. They charge their borrowers interest rates that earn them a profit margin (above what the they must pay to the federal government), as well as a risk premium that is assigned to each customer (borrower). The higher a borrower’s “risk profile” (the likelihood a borrower won’t pay back the loan in full), the higher the borrower’s interest rate.

You can influence the rate you pay, by having a lower “risk profile”. This includes your credit score, the loan term, and down payment amount. The better (lower risk) your risk profile, the lower the bank’s risk, and the better your interest rate. Need help understanding how to buy a home? Contact me to learn more: [email protected] or 425-501-6901 (text or call)

Need more real estate answers or help? Send me your questions!

Local Snohomish County Real Estate Trends

  • Snohomish County, Average Sales Price:  For September 2023, the average sales price increased to $767,000, from August's value of $760,000 for Snohomish County.
    Just last month I stated we were officially in the "slow season", and thus why we witnessed the price decrease from July to August. I'm somewhat surprised to see the average sale price increase from August to September. One aspect to keep in mind is that the sale prices we're seeing now are 30 to 60 days old (the closing process normally takes 30 to 60 days after an offer is accepted). Thus the above average sales price is calculated from offer and acceptance agreements that occurred in July and August.

    Further, this is a strange and dynamic market, so it can be challenging to predict the month to month home value changes.

    With that said, price action will also continue to be affected by higher interest rates. IF rates where to drop, we could actually see an uptick in sale / purchase activity and drive prices upward, even during the historically fall and winter slow season. However, it does not seem we'll see any significant interest rate reductions in the foreseeable future from the sources I’m keyed in on.
    To review the most recent trend data, please check out the Housing Data page here

  • Snohomish County, Quantity of Homes For Sale:  For September 2023, there were 457 homes listed for sale. This was a sizeable increase from August 2023, but still historically low, and again, why home prices (and affordability) remain so high. For reference, we peaked in July 2022 with 1,089 homes for sale on the MLS.

    The average number of homes for sale at any one time in Snohomish County over the past 10 years is about 700. The drastic decline directly correlates to the sustained higher mortgage rates, and therefore "home affordability". This affects both builders and home owners considering to build or sell, respectively.

    To review the most recent trend data, please check out the Housing Data page here.

  • Snohomish County, % of Price Cuts: 
    As of the first week of October, we’re approaching 10% of sellers implementing price cuts (still less than 2022) as a strategy to sell their homes quicker. This is somewhat expected as we head into the slower fall season, and may ay accelerate as interest rates remain elevated at nearly 8%. You can view the Redfin chart here.

For more details and insights on real estate trends for Snohomish County, visit https://www.joefrankrealtor.com/post/september-2023-snohomish-county-real-estate-trends

Economic & Real Estate News

  • Housing Market Update: Listings Tick Up, But Buyers Back Off

  • Are we in a recession or potentially heading toward one? The numbers seem to indicate “No”, but professionals (and amateurs alike) opinions definitely vary. Here’s a good article from USBank.com with more details.

Financial Investing Tips & Tricks

  • If you have extra money, should your pay off your mortgage early or invest it? The answer will vary depending upon who you talk to. However, it really should be based on YOUR overall financial situation, and what YOU are most comfortable with. For the best course of action, discuss your situation with a financial professional. Here’s a good article from Forbes.com that provides insights as to when one approach may make more sense than the other, as well as the Pros and Cons.

  • Credit Scores - What you need to know if considering buying a home

Home & Yard Tips and Tricks

AI - Artificial Intelligence

  • Though AI may seem scary, it’s also very promising in certain regards, especially when it comes to detecting and treating diseases. This article from ABCNews.com about AI and the future of cancer sounds very encouraging.

  • It will also likely accelerate the Electric Vehicle (EV) battery technology, allowing EV’s to travel further, and charge quicker!

Other Nuggets

Inspirational Quote:  “Learn as if you will live forever, live like you will die tomorrow.” — Mahatma Gandhi

If you (or anyone you know 😁) are looking for real estate guidance, help, or insights within Snohomish County or beyond, please feel free to reach out: [email protected] or call / text, 425-501-6901

Have we worked together in the past? If so, and you’d like to share your experience with others, please consider leaving me a review on Google (it can really help me grow my business) - many thanks! 🙏

DISCLAIMER: This content is for educational and entertainment purposes only.

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www.JoeFrankRealtor.com | [email protected] | 425.501.6901
Joe Frank, Real Estate Broker | REALTOR® | eXp Realty | ExpressOffers Certified Agent

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