Home-Value Web Sites Miss the Mark

Online home-value sites offer some useful tools, but their estimates are often wrong.

“The percentage of error on these estimates is still very large,” says Delores Conway, director of the Casden Forecast at the University of Southern California Lusk Center for Real Estate. If there are not many comparable sales in one area, for example, she says, “the estimates will have huge errors in them.”

Zillow.com and Cyberhomes.com rely on computer-generated automated models to estimate values. The models help compensate for the fact that many neighborhoods don’t have enough sales to generate accurate values based on experience.

But these computer models don’t reflect home condition, improvements and may not even accurately convey property descriptions.  Continued…  Home-Value Web Sites Miss the Mark  -The Associated Press

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com

Outlook good for Bellevue economy

Strong development activity and moderate job growth will fuel Bellevue’s economy over the next several years.

That was the prediction delivered to the City Council Monday by City Budget Manager Jonathan Swift, who said Bellevue’s economic outlook is generally positive, but increased inflation and a slowing of the housing market could dampen growth.

Swift delivered his forecast as part of the Finance Department’s Early Outlook Forecast, which focuses on how the city’s economy is expected to perform over the next six years.

Swift said growth in employment and personal income have kept the region’s economy relatively healthy even as rising gasoline, food and other prices, and a weakening housing market, have adversely impacted the national economy.  Continued…  Outlook good for Bellevue economy -Renton Reporter

Mike Rozell ~ Bellevue Realtor / Real Estate Agent ~ www.MyBellevueLifestyle.com

School district to renovate bus center

The final construction project funded by a Renton School District 2003 bond will kick off on the last day of school, this Friday.

The project is a renovation of the district Transportation Center, on North Fourth Street downtown.

The center was built in 1947 and has been in need of major repair for many years. The renovations will provide more bay space for bus maintenance and increased storage for parts; a larger, more secure fueling station; office space and driver preparation spaces; and better layout of parking spaces for buses.

The job is scheduled to take about a year and will include temporarily moving 35 of the district’s fleet of 90 buses from the Transportation Center to a gravel area near the Renton Center Fred Meyer, near the district administrative offices. The remaining 60 buses will stay at the Transportation Center.  Continued…  School District to renovate bus center -Renton Reporter

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com

Purchasing a home is a huge financial commitment that requires complex calculations before you even begin looking at houses. Since getting all the answers to your house hunt’s most important questions can be a daunting task, HGTV’s new real estate site-Frontdoor.com-is offering a handy toolkit for home buyers. This user-friendly guide is packed with tips that will break down the overwhelming process and help you develop a home-buying strategy that will allow you to spend more time searching for your perfect home.

Frontdoor.com’s Top 10 Tools for Home Buying:

1. Rent vs. Buy Calculator:

Homeownership comes with great benefits like tax breaks and the chance to build wealth, but renting can often be a less expensive and more convenient option for many people. FrontDoor.com’s “Å“Rent vs. Buy Calculator” compares the costs of renting and buying and helps you determine which alternative is right for you.

2. How-To Guide:

Once you decide that buying a home is the right move, the first thing you’ll need is a comprehensive, step-by-step guide that you can refer to throughout the home-buying process. FrontDoor.com’s “Å“First-Time Home Buyer’s Guide” and “Å“Experienced Buyer’s Guide” offer expert tips and advice for buying your first or your umpteenth home.

3. Home Wish List:

Having a written vision of everything you want and need in a home will keep you enthusiastic and focused during your search. Think about your lifestyle and make sure it’s compatible with your vision of home. Do you need to live close to your workplace? Are you planning a family and need extra space? Questions like these will influence what type of home you need.

4. Home Affordability Calculator:

In general, you shouldn’t spend more than 2.5 times your gross annual income on a home, and your mortgage payment should be less than 28% of your gross monthly income. FrontDoor.com’s “Å“Can I Afford It? Calculator” will estimate what you can afford by comparing your monthly income with your monthly expenses.

5. Mortgage Calculator:

The amount of your loan, the interest rate and the term of the mortgage affect both your monthly and total mortgage payments. And don’t forget about property taxes, hazard insurance and private mortgage insurance. FrontDoor.com’s “Å“Mortgage Calculator” shows you how much you’ll wind up paying.

6. Fixed vs. Adjustable Rate Mortgages Calculator:

A fixed rate mortgage offers an unchanging interest rate, while an adjustable rate mortgage has an interest rate that changes over the life of the loan. The type you choose depends on your ability and willingness to take financial risks. FrontDoor.com’s “Å“Fixed vs. Adjustable Rate Mortgages Calculator” helps you compare the two options.

7. Mortgage Term Length Calculator:

Assess your financial situation to figure out which term length is best for you. If you can afford to make larger monthly payments, you’ll save in the long run by paying less interest with a short-term mortgage. The “Å“Which Term Length Is Best? Calculator” shows how much you’ll pay with various term lengths.

8. No Cost Loan Calculator:

If you’re short on cash and can’t fork up thousands of dollars at closing, consider a no-cost loan. Lenders offer these loans for a higher interest rate, allowing them to cover your closing costs and still make a profit. To find out if a no-cost loan is a better option for you than a traditional mortgage, use FrontDoor.com’s “Å“No-Cost Loans Calculator.”

9. Mortgage Points Calculator:

Points lower your interest rate and are tax deductible, but you’ll have to pay more cash at closing. One point is equal to one percent of your loan. The “Å“Should I Pay Points? Calculator” helps you decide if paying for points now will help you save money in the long run.

10. House Tour Worksheet:

You’ll look at a lot of houses during your hunt for the perfect home, and eventually they’ll start to blend together. Take pictures and detailed notes about what you liked and didn’t like about each home so you can differentiate them. Use your completed worksheets to narrow your search and focus on the houses you really liked.

FrontDoor is like house hunting with an in-the-know friend. Use this helpful guide to formulate your own searching and buying strategy and look for more advice, insight and assistance at FrontDoor.com, including information on ways to beat a sluggish housing market.

For more information, visit http://www.frontdoor.com.

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com

“It should come as a surprise to no one that Seattle is growing fast.

But this fast?

In just over three years, Seattle already is halfway to reaching its targeted housing growth for 20 years.

And a few sections of town “” Ballard, Eastlake, the Central Area, Greenlake, Lower Queen Anne and downtown “” already have exceeded their 20-year targets…

Other parts of King County growing faster than anticipated include downtown Bellevue, downtown Renton, Covington and Maple Valley, while some areas of Southwest King County are behind targeted levels, said Paul Reitenbach, senior policy analyst for King County’s Department of Development and Environmental Services.”  Continued…  Seattle’s housing growth is off the charts  -Stuart Eskenazi, Seattle Times staff reporter

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com

Seattle Times – June 15, 2008

Readers are calling to complain about their 2008 King County property assessments.

The upshot: “My assessment went up, but my property value has been going down. What gives?”

What gives is that assessments lag market values by about 18 months, King County Assessor Scott Noble says.

Employees of the King County Tax Advisor’s Office spend all day every day explaining the complicated assessment and levy process to confused residents.

I called the King County tax adviser, Barbara Alsheikh, for the explanation.

An assessment does not determine the dollar amount that a property owner pays in taxes. It is a tool that determines a property owner’s share of the tax burden, Alsheikh said.

In other words, an assessment determines how big a piece of the pie you get, not how much that piece costs.

The amount of taxes paid comes from budgets and voter-approved levies in each taxing district “” the county, cities, school districts, the Port of Seattle, hospital districts, fire districts, etc.  Continued…  How King County figures assessments -Cindy Zetts, Seattle Times Real Estate Editor

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com

Effective June 12, a new state law (House Bill 2791) protects distressed property owners. This press release covers: Distressed home purchasers, Distressed Homeowner Protections, & Tips for Distressed Homeowners.

FOR IMMEDIATE RELEASE
June 6, 2008

New law helps protect distressed homeowners

SEATTLE – A new state law to help protect financially strapped homeowners from equity skimming and foreclosure rescue scams in Washington goes into effect on June 12. The new law provides safeguards for people trying to stop the loss of their home and requires new disclosures and responsibilities for individuals claiming to help homeowners avoid foreclosure.  Continued… Rob McKenna, Attorney General of Washington, Press Release

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com