When buying a home in a sellers market you need to think like the seller and like the listing agent (the agent representing the seller). Here are a couple of things to keep in mind when writing your offer:
1) Make sure you are working with an agent who represents you in your real estate transaction. You may want to sign a buyers agency agreement, this will ensure the agent you are working with will look out for your best interests and will bring their knowledge and tools to bear to help increase your chances of success. Bonus.....Typically the agent is being compensated by the seller so you have nothing to loose.
2) Use a local lender, not an out of state lender or internet mortgage company. When the going gets rough it is easier to walk into their office to ask for help and there will be more leverage from your agent to ensure the transaction closes on time.
3) Maintain the separation of church and state.....what I mean here is there seems to be a trend of real estate agents also wanting to play the role of mortgage broker. This is not in your best interest. The checks and balances that come into play will work in your best interest. Plus if your loan can not go through you want to be able to direct your mortgage to another company without loosing the relationship you've built with your real estate agent.
These are just a few ideas to increase your chances of success when purchasing a home in a sellers market.....check back often for more. Click here for more ideas and how to define the market you are in now.
Homes in Kitsap: Meeting With Kitsap County Tax Assessor, Jim Avery
Homes in Kitsap: Meeting With Kitsap County Tax Assessor, Jim Avery
Dave Jones in his blog, at www.HomesInKitsap.blogspot.com writes about a visit to our office by the County Assessor, Jim Avery. Despite what many might think increasing property values do not equate to increased taxes. Also great information on senior exemptions, check out his blog!
Dave Jones in his blog, at www.HomesInKitsap.blogspot.com writes about a visit to our office by the County Assessor, Jim Avery. Despite what many might think increasing property values do not equate to increased taxes. Also great information on senior exemptions, check out his blog!
Buying or selling.....make your decisions based on your core beliefs.
Buying or selling.....make your decisions based on your core beliefs.
Before buying or selling anything you should first consult with your core beliefs. For instance if you were in the need of a new car and you felt that over the long run gas prices were going to trend downward and eventually stay low than gas consumption would not be an issue in your decision making process.
If you are in your 30's or 40's considering health insurance and the plan you are reviewing does not provide for prescription drug coverage, you have to ask yourself....."Self....am I more likely or less likely to need prescription drugs in my future?"
This kind of base thinking helps you to make long term decisions.
What brings this topic up in today's blog is that I just traded e-mails with a person who lives in the Northwest, lets call him Tom. His concern is that the real estate bubble is about to burst and prices and values of properties are about to drop. Needless to say, if you've been reading this blog, we do not agree on this point.
Even though we do not agree we are both right, for the moment, based on our core beliefs.
Tom believes that the real estate run up has run its course and that the type of appreciation we have seen can not be sustained for the simple reason that if it went on who could afford a house? The price would soon out strip the general publics ability to buy. So his decision, for now is to wait. Perhaps for interest rates to come down, perhaps for inventory to go up, or maybe for home values to fall. In any case based on his core beliefs of today's market he has made a decision and is on a plan.
I understand that some may think I'm jaded, that my sole goal is to go list and sell more houses. That my job is to sell the idea of home ownership. To a degree this is correct. I think homeownership is one of the greatest things we have going for us in this country. I know that people in other countries would love to have the same opportunities that we have in the United States. We have choices of where we work, where we live, if and when we want to buy a home, if and when we want to start a family and when we do go to buy a home we have choices in style, price and almost an endless array of mortgage programs that allow even the youngest of us to be able to afford our first home.
Yes, over the past 18 months or so many markets have seen a double digit run up in values. Some of these areas may even see a roll back in the coming year. I think what sets the Northwest apart, for now, is the short supply of houses to meet the current demand by buyers. Even if our home values only go up by 8 to 10% this year, you are still way ahead of the game than if you were to choose to pay rent.
So, my answer to buyers who are considering whether or not they should buy would be....................YES! If you are going to be staying in the area for at least 3 years......buy now.
Interview and choose a good real estate agent, have them recommend a good lender, meet with that lender, get a good faith estimate. Choose a home that meets your needs and buy it. Because my core belief says that home prices in our area will hold due to increased government intervention it is becoming harder and harder to build, we are having more and more people who need homes and this is a pretty great place to live and bring up a family.
Before buying or selling anything you should first consult with your core beliefs. For instance if you were in the need of a new car and you felt that over the long run gas prices were going to trend downward and eventually stay low than gas consumption would not be an issue in your decision making process.
If you are in your 30's or 40's considering health insurance and the plan you are reviewing does not provide for prescription drug coverage, you have to ask yourself....."Self....am I more likely or less likely to need prescription drugs in my future?"
This kind of base thinking helps you to make long term decisions.
What brings this topic up in today's blog is that I just traded e-mails with a person who lives in the Northwest, lets call him Tom. His concern is that the real estate bubble is about to burst and prices and values of properties are about to drop. Needless to say, if you've been reading this blog, we do not agree on this point.
Even though we do not agree we are both right, for the moment, based on our core beliefs.
Tom believes that the real estate run up has run its course and that the type of appreciation we have seen can not be sustained for the simple reason that if it went on who could afford a house? The price would soon out strip the general publics ability to buy. So his decision, for now is to wait. Perhaps for interest rates to come down, perhaps for inventory to go up, or maybe for home values to fall. In any case based on his core beliefs of today's market he has made a decision and is on a plan.
I understand that some may think I'm jaded, that my sole goal is to go list and sell more houses. That my job is to sell the idea of home ownership. To a degree this is correct. I think homeownership is one of the greatest things we have going for us in this country. I know that people in other countries would love to have the same opportunities that we have in the United States. We have choices of where we work, where we live, if and when we want to buy a home, if and when we want to start a family and when we do go to buy a home we have choices in style, price and almost an endless array of mortgage programs that allow even the youngest of us to be able to afford our first home.
Yes, over the past 18 months or so many markets have seen a double digit run up in values. Some of these areas may even see a roll back in the coming year. I think what sets the Northwest apart, for now, is the short supply of houses to meet the current demand by buyers. Even if our home values only go up by 8 to 10% this year, you are still way ahead of the game than if you were to choose to pay rent.
So, my answer to buyers who are considering whether or not they should buy would be....................YES! If you are going to be staying in the area for at least 3 years......buy now.
Interview and choose a good real estate agent, have them recommend a good lender, meet with that lender, get a good faith estimate. Choose a home that meets your needs and buy it. Because my core belief says that home prices in our area will hold due to increased government intervention it is becoming harder and harder to build, we are having more and more people who need homes and this is a pretty great place to live and bring up a family.
Five Reasons to Remodel
Five reasons to remodel
1. You love your neighborhood.
You can walk to the park, you have lots of close friends nearby, and the guy at the espresso stand knows you by name. There are features of a neighborhood—whether it’s tree-lined streets or annual community celebrations—that you just can’t
re-create somewhere else. If you
love where you live, that’s a good reason to stay.
2. You like your current home’s floor plan.
The general layout of your home either works for you or it doesn’t. If you enjoy the configuration and overall feeling of your current home, there’s a good chance it can be turned into a dream house. The combination of special features you really value, such as morning sun or a special view, may be hard to replicate in a new home.
3. You’ve got a great yard.
Yards in older neighborhoods often have features you can’t find in newer developments, including large lots, mature trees and established landscaping. Even if you find a new home with a large lot, it takes considerable time and expense to create a fully landscaped yard.
4. You can get exactly the home you want.
Remodeling allows you to create a home tailored exactly to your lifestyle. You have control over the look and feel of everything, from the color of the walls to the finish on the cabinets. Consider also that most people who buy a new home spend up to 30 percent of the value of their new house fixing it up the way they want.
5. It may make better financial sense.
In some cases, remodeling might be cheaper than selling. A contractor can give you an estimate of what it would cost to make the improvements you’re considering. I can give you prices of comparable homes with those same features. But remember that while remodeling projects add to the value of your home, most don’t fully recover their costs when you sell. The chart on the back page shows some examples of remodeling return on investment.
Link to Five Reasons to Move
1. You love your neighborhood.
You can walk to the park, you have lots of close friends nearby, and the guy at the espresso stand knows you by name. There are features of a neighborhood—whether it’s tree-lined streets or annual community celebrations—that you just can’t
re-create somewhere else. If you
love where you live, that’s a good reason to stay.
2. You like your current home’s floor plan.
The general layout of your home either works for you or it doesn’t. If you enjoy the configuration and overall feeling of your current home, there’s a good chance it can be turned into a dream house. The combination of special features you really value, such as morning sun or a special view, may be hard to replicate in a new home.
3. You’ve got a great yard.
Yards in older neighborhoods often have features you can’t find in newer developments, including large lots, mature trees and established landscaping. Even if you find a new home with a large lot, it takes considerable time and expense to create a fully landscaped yard.
4. You can get exactly the home you want.
Remodeling allows you to create a home tailored exactly to your lifestyle. You have control over the look and feel of everything, from the color of the walls to the finish on the cabinets. Consider also that most people who buy a new home spend up to 30 percent of the value of their new house fixing it up the way they want.
5. It may make better financial sense.
In some cases, remodeling might be cheaper than selling. A contractor can give you an estimate of what it would cost to make the improvements you’re considering. I can give you prices of comparable homes with those same features. But remember that while remodeling projects add to the value of your home, most don’t fully recover their costs when you sell. The chart on the back page shows some examples of remodeling return on investment.
Link to Five Reasons to Move
Move or Remodel, Five Reasons to Move.
| Move or Remodel | ||
 | ||
 ow to make the best choice Go to this link to see a chart how your remodel cost will affect your value. | ||
Real Estate Statistics for 4/10/2006, Kitsap County Washington
Watching stats like these will help you determine what kind of a market you are in.
For Kitsap County Washington as of 4/10/2006
919 Active Listings
51 Homes went Pending last week
59 Average Days on Market
$275,917 Average List Price
$273,496 Average Sale Price
99% List price to sale price ratio
18 weeks of inventory
Learn more about Defining Your Market.
For Kitsap County Washington as of 4/10/2006
919 Active Listings
51 Homes went Pending last week
59 Average Days on Market
$275,917 Average List Price
$273,496 Average Sale Price
99% List price to sale price ratio
18 weeks of inventory
Learn more about Defining Your Market.
Looking a bit stormy?
Though this has little to do with the business of real estate, for those of us who like to look out the window from time to time you may find this interesting.
Beaufort Scales (Wind Speed)
Force Speed Name Conditions
at SeaConditions
on Landknots km/h mi/h 0 <> <> <> Calm Sea like a mirror. Smoke rises vertically. 1 1-3 1-5 1-4 Light air Ripples only. Smoke drifts and leaves rustle. 2 4-6 6-11 5-7 Light breeze Small wavelets (0.2 m). Crests have a glassy appearance. Wind felt on face. 3 7-10 12-19 8-11 Gentle breeze Large wavelets (0.6 m), crests begin to break. Flags extended, leaves move. 4 11-16 20-29 12-18 Moderate breeze Small waves (1 m), some whitecaps. Dust and small branches move. 5 17-21 30-39 19-24 Fresh breeze Moderate waves (1.8 m), many whitecaps. Small trees begin to sway. 6 22-27 40-50 25-31 Strong breeze Large waves (3 m), probably some spray. Large branches move, wires whistle, umbrellas are difficult to control. 7 28-33 51-61 32-38 Near gale Mounting sea (4 m) with foam blown in streaks downwind. Whole trees in motion, inconvenience in walking. 8 34-40 62-74 39-46 Gale Moderately high waves (5.5 m), crests break into spindrift. Difficult to walk against wind. Twigs and small branches blown off trees. 9 41-47 76-87 47-54 Strong gale High waves (7 m), dense foam, visibility affected. Minor structural damage may occur (shingles blown off roofs). 10 48-55 88-102 55-63 Storm Very high waves (9 m), heavy sea roll, visibility impaired. Surface generally white. Trees uprooted, structural damage likely. 11 56-63 103-118 64-73 Violent storm Exceptionally high waves (11 m), visibility poor. Widespread damage to structures. 12 64+ 119+ 74+ Hurricane 14 m waves, air filled with foam and spray, visibility bad. Severe structural damage to buildings, wide spread devastation. -
- Note: wave heights apply to the open sea; waves in sheltered waters will be lower and steeper. As sailors know, other factors such as swell and depth can also modify wave heights.
Are Washington State Home Prices Headed Up?
Legislative inaction pushes home prices up.
“The state’s growing population is increasing the demand for homes beyond the supply — and that spells price increases,” said Terry Sullivan, the 2006 president of The Washington Realtors. “We proposed four measures to release some of the pressure on the housing market, but these bills — and
According to the
Sullivan said those increases were not likely to slow, since the Legislature did nothing to relieve pressure on the housing market.
“The law of supply and demand is the reason for these huge price jumps: the supply of housing simply can’t meet the demand. But it’s not just home buyers who suffer,” explained Sullivan. “When home prices shoot up, so do property values and property taxes. And, people have to buy homes further and further from where they work, which clogs freeways and pressures already-strapped government to build more roads.”
Although the state’s Growth Management Act requires state and local governments to plan for growth, many have not. The result is a loss of affordable housing, which affects the entire community.
Washington Realtors encouraged the Legislature to take four simple steps to ease the state’s housing crunch:
§ No Net Housing Loss: HB 2217, which died in the House Appropriations committee, would have required that local Growth Management plans result in no net loss of housing; balance job-creation with homes employees would need locally; and include performance measures to ensure progress toward managing growth.
§ Accessory Dwelling Units: HB 2323, which died in the House Rules committee, would have required local government to increase affordable rental housing by allowing “accessory dwelling units,” such as apartments over garages and “mother-in-law” apartments.
§ Lot size averaging: HB 2325, which died in Senate Governmental Operations committee, would have made fuller use of existing land by allowing a single building lot to be divided into two or more lots, as long as the averaged area of all resulting lots were not less than the legally required minimum lot size.
§ Housing Tax Incentives: HB 1742 died in the Senate Financial Institutions, Housing & Consumer Protection committee. The bill would have allowed all cities and towns, not just those with populations over 30,000, to establish a property tax exemption program for multi-unit housing.
“Ignoring growth doesn’t prevent it, anymore than ignoring traffic will make it go away,” said Sullivan. “By not addressing the challenges that population growth brings, legislators are consigning
Between 1980 and 2000, the total state population grew to 5.9 million, a 30-percent increase over 20 years. State demographers predict
The Washington Realtors represent about 170,000 homebuyers each year, and the interests of more than 2 million homeowners throughout the state. The Washington Realtors’ membership numbers about 24,000 statewide, making it the largest professional organization in the state. The organization’s top public policy priority is building communities that have a strong economy, attractive housing choices, excellent schools and parks, safe neighborhoods, and good transportation choices.
Does it pay to Remodel your home?
Top 10 remodeling projects
(based on return on investment)
(based on return on investment)
| Improvement | Job cost | Value at sale | Return on investment |
| 1. Siding Replacement Upscale | $10,393 | $10,771 | 103.6% |
| 2. Bathroom Remodel Mid-Range | $10,499 | $10,727 | 102.2% |
| 3. Minor Kitchen Remodel Mid-Range | $14,913 | $14,691 | 98.5% |
| 4. Siding Replacement Mid-Range | $7,239 | $6,914 | 95.5% |
| 5. Second-Story Addition Mid-Range | $80,133 | $75,831 | 94.6% |
| 6. Attic Bedroom Mid-Range | $39,188 | $36,649 | 93.5% |
| 7. Bathroom Remodel Upscale | $26,052 | $24,286 | 93.2% |
| 8. Major Kitchen Remodel Mid-Range | $43,862 | $39,920 | 91.0% |
| 9. Deck Mid-Range | $11,294 | $10,196 | 90.3% |
| 10. Basement Remodel Mid-Range | $51,051 | $46,010 | 90.1% |
Factors That Affect Home Pricing
Factors That Affect Home Pricing
Yes
• Location
• Style, size & condition of the home
• Unique aspects of the property
• Time of year & market conditions
• How quickly the owner needs to sell
No
• What the owners paid for the home
• Amount of money spent on improvements
• Redecorating costs
• What a neighbor’s home sold for last year
• Amount of cash the seller needs
Real Estate Statistics for Kitsap County Washington 3/6/2006
Watching stats like these will help you determine what kind of a market you are in.
For Kitsap County Washington as of 3/6/2006
888 Active Listings
85 Homes went Pending last week
55 Average Days on Market
$276,801 Average List Price
$274,800 Average Sale Price
99% List price to sale price ratio
10.45 weeks of inventory
Learn more about Defining Your Market.
For Kitsap County Washington as of 3/6/2006
888 Active Listings
85 Homes went Pending last week
55 Average Days on Market
$276,801 Average List Price
$274,800 Average Sale Price
99% List price to sale price ratio
10.45 weeks of inventory
Learn more about Defining Your Market.
Avoiding Costly Mold Problems In Your Home
How homeowners can avoid costly mold problems |  |
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