Here are a few real estate related anecdotes I have come across in the last few weeks. I’m not relating them to make any particular point, they’re just all of the real estate happenings that I’ve personally encountered recently.<\/p>\n
A coworker of mine recently moved from the Northgate area up to Bothell. Commuting across the 520 bridge every day just finally got to be too much for him. So of course he’s selling his 2-story, 4-bedroom, 2.75 bath house (on ~1\/5 acre) in Northgate. His original asking price on this home that he purchased in 1997 for $170,000 was $475,000. After a few weeks with no bites he has lowered the asking price to just under $450,000. As far as I know he still has no serious offers on the table.<\/p>\n
Other friends of mine bought a house up in Lynnwood in early 2004 for around $240,000 using a good helping of creative financing\u2014no money down, one loan for 80%, another (interest-only adjustable) for 20%, that sort of thing. Since interest rates have been going up and the interest-only period is rapidly drawing to a close, they have decided that now is a good time to refinance. Now, I haven’t claimed to be anything other than mostly ignorant when it comes to all the ins and outs of home financing and crazy mortgage rules, but their strategy still surprised me. According to my friend, since the home has "appreciated nearly $100,000" they are now able to find a mortgage lender that will roll their two loans into one and give them a good rate, since the amount of the loan (~$240,000) is now less than 80% of the "value" of the house. For all I know this is a common tactic, but it was new to me.<\/p>\n
Lastly, remember the condo complex down the street from me, where one unit sold in October for $280,000 and another in December for $300,000? Well yet another neighbor decided it was a good time to cash out, and they listed their unit a few weeks ago for $285,000. I picked up one of the fliers a week ago, and the sign is still posted on the street (sans any "pending" or "sold" slap-ons), but oddly I can’t find it listed on Windermere’s (or anyone else’s) site. Have they given up on selling it already? <\/p>\n