Conventional Conforming Loan Limits for 2007

Though I'm not a lender this information will affect buyers in todays market.

2007 Loan Limits
for Conventional Conforming Loans

Oregon and
Washington
single-family to $417,000
two-family to $533,850
three-family to $645,300
four-family to $801,950

Thank you to Cherie Kesti of Windermere Mortgage Services for the above information; www.windermeremortgageservices.com

What is in store for Kitsap County real estate in 2007.

What is in store for Kitsap County real estate in 2007.

2006 is wrapping up nicely. Homes have continued to appreciate on the average of 9% this year. Though homes are on the market a little longer and sellers are having to be a bit more flexible it is still a very good time to own a home and an even better time to be buying one. Buyers have the best of all worlds right now, interest rates are low and home choices are up.

2007 will see much of the same. It appears interest rates will continue to be low or lower than the historical average. Home values should continue to appreciate between 4 and 7%. There will be an increase in new construction over the next few years. From a consumers stand point it will be important to be able to compare homes on their attributes and not just compare cost per square foot. We are seeing builders build smaller garages, use vinyl siding, employ manmade products for molding, countertops and flooring and use various grades of lighting, linoleum and carpets. Granted, these are all attempts to build an affordable home but just be sure you can compare one home to another from an informed prospective. It is also worth a moment of time to consider having your own real estate agent represent you as your “buyers agent” instead of settling with the agent who is on site and represents the builder.

Second Home and Vacation Home Ownership

Over the past few years we have seen a large increase in second & vacation home ownership. My company, Windermere Real Estate, conducted a survey to learn more about this trend. Here are the results of that survey.

2006 Windermere Vacation Home Ownership Survey Results

• Distance of vacation home
from primary residence
20% under 50 miles
23% 50 to 100 miles
16% 100 to 200 miles
41% over 200 miles

• Type of home
54% Detached single-family home
23% Condominium/apartment
17% Cabin
2% Mobile home/manufactured home
4% Other

• Time spent at vacation home
in the past year
8% No days
12% 1 to 7 days
40% 2 to 4 weeks
31% 1 to 3 months
7% 3 to 6 months
2% 6 months or more

• Is the home rented when not in use
27% Rent out
73% Do not rent out

• Likelihood the property will become their primary home when they retire
16% Very likely
20% Somewhat likely
15% Somewhat unlikely
45% Very unlikely
4% Don’t know

Real Estate Statistics for Kitsap County, WA 9/18/2006

Watching stats like these will help you determine what kind of a market you are in.
For Kitsap County Washington as of 9/18/2006

1595 Active Listings
49 Homes went Pending last week
60 Average Days on Market

$298,829 Average List Price
$295,421 Average Sale Price

99% List price to sale price ratio

32.55 weeks of inventory

Learn more about Defining Your Market.

Vacation Home Ownership Profile

Vacation Home
Ownership Profile

• About 16 percent of homeowners surveyed also own a second home.
• While boomers continue to drive the vacation-home boom, a third of vacation-home owners are under the age of 35.
• 67 percent of vacation-home owners claim sole ownership of their property. A little over a quarter of those surveyed owned their getaway jointly with family or friends.

My company, Windermere Real Estae, has been doing research and surveys about vacation home ownership. The next few entries will share that information.

Information for becoming a licensed real estate agent.

There is a lot of information available about becoming a real estate agent. One of the best places to start the information hunt is at the web page of the department of licesning of the state you hope to practice in. Washington state has just developed a new web site, here is the link:

http://www.dol.wa.gov/business/realestate/

For links to other western states DOLs please visit this web page:

http://franklyrealestate.com/index.cfm?fuseaction=page&page=12133&parent=12023

Real Estate Statistics for 8/21/2006 for 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 8/21/2006

1482 Active Listings
70 Homes went Pending last week
61 Average Days on Market

$295,121 Average List Price
$291,857 Average Sale Price

99% List price to sale price ratio

21.17 weeks of inventory

Learn more about Defining Your Market.

Trick of the trade. Its not always about real estate....

All cell phone companies typically charge $1.00 to $1.75 or more for 411 information calls when they don’t have to. When you need to use the 411 information option, simply dial 1-800/FREE 411, or 1-800/373-3411 without incurring any charge at all. Program this into your cell phone. This works on your home telephone as well.

Real Estate Agents Take Note, Different Market, Different Customer, Same Product Which is Service!!

The real estate customer of today is very different than the real estate customer before the age of technology. Gen Xers (currently those in their 20s to 30s), currently make up about 34 percent of the real estate customers in the United States. Because of their technological “know-how,” they demand information faster then the average agent can provide it. They prefer informative advertising over persuasive advertising. They have limited loyalty and are becoming the advisors to their baby boomer parents.

With the onset of the Internet and very successful Web search portals such as Google, the real estate process can take 13 to 24 days instead of what used to be 45 to 60 days. Customers no longer need to rely on the real estate agent for information such as listing data and sold data because it’s readily available on the Internet. Studies show that a typical Gen X buyer takes an average of 13 months from the time he or she starts looking for a home until the home is purchased. Sellers take an average of nine months from the time they start thinking about selling their home until their home is sold. Studies also show that the average Gen X customer only takes a day to pick a real estate agent and 82 percent will go with the first agent that responded in a timely manner with quality information and services. We also know that 74 percent of the real estate customers start the entire process online.

What is it going to take to keep up and be a top notch real estate agent? You have to be first, fast, frequent, very professional and consistent.

Here are some ideas to think about if you haven’t already:

Are you first to get back to a customer when they e-mail you? The average Gen X customer expects a reply in two hours or less. If you cannot reply by then, it is important that you are using an autoresponder. Using an autoresponder will also allow you to attract the customer by using helpful links imbedded in your reply message, like your personal Web site or links to useful school or community information.

How fast do you respond? The successful agent will have a combo cell/PDA phone. Today your choices are numerous. Between the Trio, the Blackberry, and the Pocket PC, you can now have e-mail and listing data at your fingertips and be able to respond instantly to your customers.

How frequently do you communicate and market to new and existing customers? Studies show that average agents in the United States only market 0-6 months to a possible new customer and 0-2 times a year for an existing customer. If you fall into that once-a year-calendar, you are probably losing would-be customers. Remember, to be effective with a marketing program, it needs to deliver a message of value and a Web presence, or this new breed of customer probably won’t take the time to view it. I often receive “Just Sold” postcards in the mail, and the agent will ask for my business with the message, “For more info, please call...” The chance of me calling is slim to none. However, I do look for a Web site on that postcard where I can get online and see information on my own terms. This is typically the mind set of many of your initial customers. Having a place on the Web for information in the early stages is key to building relationships that will build your book of business.

In todays market some thoughts:
1) Don't mistake speed for accuracy...even though information gets back to you quickly...check it out.
2) Keep in mind that technology is just a tool, it does not substatute for service or relationships.
3) Don't get stuck in High Tech...No Touch, don't hide behind the tech.
4) As electronic communications increases so will the value of a handshake or hand written note.

Thank you to Mike Fanning, VP of Affiliate Developement for Windermere and a frequent contributing author to this blog.

Investing in homes for college-age kids

Investing in homes for college-age kids
There’s a new trend afoot for parents of kids bound for college. The cost of dormitories, fraternity or sorority houses or off-campus housing can be $10,000 or more a year. Rather than throw money away on four years of student housing, an increasing number of parents are opting to buy a condominium or house near the college for their kids to live in. Roommates are recruited to help defray the cost, and parents can write off mortgage interest costs, which provides a nice tax benefit. By the time graduation rolls around, parents can sell the home or keep it as part of their real estate portfolio.

Real Estate Investing 1-2-3

The 1-2-3 of Real Estate Investing
eal estate investments have soared over the past several years. According to the National Association of Realtors, about one in three homes purchased last year was for investment purposes. If you’re looking to feather your retirement nest, rental real estate not only should appreciate in value, it also provides an additional source of monthly income. If your 401(k) or other retirement plans are held in stocks and bonds, rental real estate is also a good way to diversify your investment portfolio. If you’re thinking about taking the jump and investing in rental real estate, here are a few things to consider. Figuring out the dollars and sense The first step in determining whether rental property is right for you is to calculate the potential cash flow—the amount of money a property brings in and the amount you need to pay out to cover expenses. It’s not uncommon for rental properties to start out having negative cash flow—the amount you collect for rent does not cover the mortgage payment. If that is the case, you need to determine whether you feel comfortable making this additional cash outlay each month. Here’s how to estimate what your monthly cash flow will be. 1) Estimate your income The first step is to determine the amount of rent you can charge for the property. Look at what comparable homes—same size, location, amenities— are renting for in your area. You can get a good idea by browsing the classified ads in your local paper or online. When estimating your income, allow for the amount of time that your property may be vacant. Most landlords factor in about 5 percent per year; however, figures vary depending on the current rental market in your area. 2) Tally up your expenses Your monthly mortgage payment and property taxes are your largest expenses. You may also end up picking up the tab for utilities, such as garbage, water or gas. Again, check what comparable rental properties are offering in your market. If you do plan on paying utilities, use your own usage as a ballpark estimate. Property insurance is another cost. Your insurance company can tell you what the premium will be if you utilize the property as a rental. Rental properties need repairs and maintenance just like any other home. Appliances break, plumbing leaks, fixtures wear out. Figure on spending about 1 percent of the property’s value per year on maintenance, repairs and cleaning. Finding a good tenant always pays in the long run, but it does take time and money to conduct an effective search. If you use a property management company or rental broker, include those fees. If you are conducting the tenant search yourself, add in any advertising expenses and a nominal cost, usually under $25, for running credit checks on prospective tenants. The good news about all these operating and maintenance expenses is that they may be deducted from your rental income on your taxes. If you’re thinking about upgrading the property, keep in mind that expenses related to improvements to the property must be depreciated over time, rather than deducted in the year paid. Improvements are defined as actions that add to the value of the property or substantially prolong its life. Examples include adding a new bathroom, remodeling a kitchen, installing insulation or building a deck. 3) Calculate the cash flow Now total all the monthly expenses and subtract that number from your estimated monthly income to determine your cash flow. To fully evaluate the investment, you also want to factor in the tax write-off benefits of depreciation. Depreciation is an accounting deduction that the IRS allows you to take for the overall wear and tear that occurs on the home over time. Only the building can be depreciated, not the land. The value of a residential structure is depreciated over 27 1/2 years at a rate of 3.64 percent of the building value per year. For example, if you buy a residential rental property for $300,000, and the building is worth $200,000, you can take $7,280 each year as a depreciation deduction ($200,000 x .0364). In addition, if your rental property shows a loss for the year, you may be able to deduct the loss on your tax return. Consult with your tax advisor to help determine which deductions you qualify for and other tax implications for your situation.

I'll take a 4 door model with air conditioning please!!

When you have a good system in place use it across all of your product lines.
Check out Toyota Homes:

http://www.toyota.co.jp/en/more_than_cars/housing/index.html