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Scott@SmacRae.com

Hello Everyone!!! Well 2013 was certainly an amazing first year! I have had some really positive results that are down to the amazing people I got to work with in the buying and selling of their homes during 2013. When I moved from running restaurants into real estate I wondered 
if I was going to get my daily people fix…what I learned is that in real estate you get quality versus quantity. 
I feel very blessed to have had the success I have had this year and to have met, and worked with, the people I have. The Power of Two: If you know two people that I might be able to provide information for about any of what you read below, please give them my name. My personal pledge is that your recommendation will be treated as a privilege by me and those you recommend to me will be given amazing service. In the first 7 months of 2013 I finished out the year with 6 closed transactions, another couple of listings coming on the market in February and a pocket full buyers looking to find houses. Our team also finished number two in our office in units and sales for the year out of 84 agents! So a solid year for us all and I am really looking forward to 2014 and all that the New Year holds. 2014 News: ﷯This year will be a bit interesting, as you will see with the articles below, but here are some of the thoughts & news from the pundits: • Home prices - Bloomberg Business week: The S&P/Case-Shiller index of property prices in 20 cities climbed 13.6 percent from October 2012, the biggest 12-month gain since February 2006, after a 13.3 percent increase in the year ending in September, a report from the group showed today in New York. The median projection of 22 economists surveyed by Bloomberg called for a 13.5 percent advance. • Mortgage news - Landover Mortgage and Steve Bozick of Landover Mortgage: The good news is that the foreclosure crisis is finally fading away. The number of new foreclosure filings, including default notices, auctions and bank repossessions, dropped 15% to a total of 113,454 properties in November. RealtyTrac, an online marketer of foreclosed properties, also reported that this was the biggest monthly decline since November, 2010, and foreclosure filings are now at the lowest level since December 2006. 
“While foreclosures will likely continue to stage a weak rally in certain markets next year as the last of the distress left over from the Great Recession is dealt with, it is highly unlikely that there will be a foreclosure comeback that poses any major threat to the solid housing recovery that has now taken hold,” said Daren Blomquist, vice president at RealtyTrac. • New housing starts - Bloomberg reports that confidence among U.S. homebuilders held in January near 
its highest level in eight years, indicating the residential real-estate market will continue to contribute to economic growth in 2014. While the National Association of Home Builders/Wells Fargo builder sentiment gauge fell to 56 from 57 in December, readings greater than 50 mean more respondents report good market conditions, figures from the Washington-based group showed today. The median forecast in a Bloomberg survey called for 58. Home construction has been a source of strength for the economic expansion, propelled by job gains and rising property values. The market has weathered an increase in interest rates and prices are forecast to continue rising this year. My thoughts on the market: • Inventory: We are seeing incredibly low inventory right now on Mercer Island and the surrounding 
Eastside area. Sellers seem to be still waiting to see what the market is going to do and there may 
be some underlying concern about the economy. That said economic indicators are looking strong 
with new home starts up, unemployment at a six month low and mortgage rates holding moderately stable. As this good news continues, we should see inventory levels start to come back up along with consumer confidence. • Buying a house: With the inventory levels so low the market is going to be competitive, similar to what happened at the start 2013 through August of last year. This means that the houses that come on the 
market, that are well priced and move in ready, will be the focus of multiple buyers and potentially multiple offer situations as we saw last year. How to be ready for this? Be prepared to go see houses as soon as 
they come on the market, Steve Bozick of Landover Mortgage recommends an in depth pre-approval so 
you can move rapidly, and be prepared to have an escalator clause built into your offer. Escalators are designed to automatically counter other offers against the house in increments that you specify and up to a maximum price that you also specify. Here is a great conversation about escalator clauses.﷯ • Selling a house: If you are thinking of selling your home, the sweet spot is after the Super Bowl and right up to Labor Day. With inventory so low, it is definitely a sellers’ market where you can expect top dollar for your home. One note of caution though. If you are looking to buy at the same time as you are selling, I would recommend this course of action. Market your house first, get it under contract to purchase, and have your agent specify a 60 day closing. This will allow you reasonable time to find your new home and not force you into making the purchase of your new home contingent on the selling of your old home. This can put you in a far weaker position on your new home, and sellers tend to look at this as a weaker offer if two offers are very similar. It can also save you a lot of money as you are not forced to take a lesser offer on your home and have to offer a premium on the new home to strengthen your position. • Getting ready to sell: here are some great tips you can take care of that home inspectors will be looking for, and you can do yourself. • Roof and gutters clean • No shrubs growing close to or on the home that would rub on the home or allow pests to gain access to the roof • Down spouts draining away from house or plumbed into the storm sewer • Crawl space vapor barrier in good condition and covers entire area consistently • Insulation is undisturbed and evenly distributed • Through foundation vents and roof vents are clear and functional Thank you one and all for taking the time to read my end of year 4th quarter newsletter. I appreciate your 
time and know that we all get a lot of email. If you would like to no longer receive this quarterly update from me, please unsubscribe from it using the unsubscribe option. Tagging it as junk will start having my mailing marked by the major ISP’s and I will lose the privilege of being able to send this newsletter out as it will be blocked by the various ISP’s. Your help with the Power of Two is greatly appreciated! 
A happy New Year to all and best wishes for an amazing 2014! ﷯

Bloomberg Business week:

Landover Mortgage

Steve Bozick

RltyTrac,

Bloomberg

Steve Bozick

Here

RltyTrac,

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