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.

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

Move or Remodel, Five Reasons to Move.

Move or Remodel

ow to make the best choice There are a number of things that can trigger the decision to remodel or move to a new home. Perhaps you have outgrown your current space, you might be tired of struggling with ancient plumbing and wiring, or maybe your home just feels out of date. The question is: Should you stay or should you go? Choosing whether to remodel or move involves looking at a number of factors. Here are some things to consider when making your decision. Five reasons to move 1. Your current location just isn’t working. Unruly neighbors, a miserable commute, a less-than-desirable school district—these are factors you can’t change. If your current location is detracting from your overall quality of life, it’s time to consider moving. If you’re just ready for a change that’s a good reason, too. Some people simply are tired of their old homes and want to move on. 2. Your home is already one of the nicest in the neighborhood. Regardless of the improvements you might make, location largely limits the amount of money you can get for your home when you sell. A general rule of thumb for remodeling is to make sure that you don’t over-improve your home for the neighborhood. If your property is already the most valuable house on the block, additional upgrades usually won’t pay off in return on investment at selling time. 3. There’s a good chance you’ll move soon anyway. If your likelihood of moving in the next two years is high, remodeling probably isn’t your best choice. There’s no reason to go through the hassle and expense of remodeling and not be able to enjoy it. It may be better to move now to get the house you want. 4. You need to make too many improvements to meet your needs. This is particularly an issue with growing families. What was cozy for a young couple may be totally inadequate when you add two small children. Increasing the space needed to make your home workable may cost more than moving to another house. In addition, lot size, building codes and neighborhood covenants may restrict what you can do. Once you’ve outlined the remodeling upgrades that you’d like, I can help you determine what kind of home you could buy for that same investment. 5. You don’t like remodeling. Remodeling is disruptive. It may be the inconvenience of losing use of a bathroom for a week, or it can mean moving out altogether for months. Remodeling also requires making a lot of decisions. You have to be able to visualize new walls and floor plans, decide how large you want windows to be, and where to situate doors. Then there’s choosing from hundreds of flooring, countertop and fixture options. Some people love this. If you’re not one of them, it’s easier to buy a house that has the features you want already in place. 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.

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 Sea	Conditions on Land
	knots	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.

OLYMPIA, Wash. — The Legislature’s failure to act on key housing legislation virtually guarantees that home prices in Washington state will continue their dizzying spiral upward, Washington Realtors said today.

“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 Washington homeowners — weren’t a priority for enough legislators this year.”

According to the Washington Center for Real Estate Research at WSU, many counties experienced dramatic increases in home prices last year: Clark County, 26.8 percent; King County, 17.8 percent; Pierce County, 21.4 percent; Spokane County, 21.5 percent; and Thurston County, 29.2 percent. Across the state, home prices increased by an average of 19 percent last year.

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 Washington residents to sprawl, leap-frog development, more traffic congestion, and higher property taxes.”

Between 1980 and 2000, the total state population grew to 5.9 million, a 30-percent increase over 20 years. State demographers predict Washington’s population will continue to grow by 1 percent per year, increasing to 8.3 million by 2030.

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)

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.

Avoiding Costly Mold Problems In Your Home

How homeowners can avoid costly mold problems Whether you’re buying or selling a home, mold has become a hot issue. Health concerns and potential damage make mold a red flag for buyers. And even if you’re not planning to sell any time soon, taking care of mold problems now can help prevent bigger problems in the future. Contrary to what some people think, mold is not a geographic problem—it can occur anywhere, no matter where you live. Here is some basic information about mold and how to deal with it. What is mold? Molds are microscopic organisms that are found virtually everywhere, indoors and outdoors. There are thousands of different kinds of mold. Their natural function is to help break down dead materials such as stumps and leaves so the nutrients can be used by the environment. For molds to grow, they need two things: an organic food source—such as leaves, wood, paper or dirt—and moisture. Problems associated with mold Mother Nature uses mold to decompose plant material. Unfortunately, when present indoors, it can be equally destructive. Mold growth can damage furnishings, such as carpets, sofas and cabinets. Left unchecked, it can also cause serious damage to walls and structural elements in your home. Mold is present everywhere, and most people tolerate exposure with no adverse effects. If allowed to spread, however, it may cause problems. As molds grow, they release thousands of tiny spores that travel through the air. When inhaled in large enough amounts, these spores may increase the risk of adverse health effects in some people, particularly respiratory problems. A less-common strain of mold called “black mold” can be particularly troublesome to those who are especially sensitive. Common causes of mold problems Don’t think that just because you live in a hot, dry climate, your home is not vulnerable to mold. There are many sources of mold problems, from faulty air conditioners to poorly positioned sprinkler systems. Federal standards for energy-efficient home-building have even contributed to the problems. By making homes more airtight, construction techniques in newer homes also trap moisture inside. Here are the most common sources of mold inside the home: · Flooding · Leaky roofs or damaged gutters · Heating or cooling system problems · Poor drainage next to foundation · Plumbing leaks from toilets, refrigerators and dishwashers · Damp basement or crawl space · Leaking windows or doors · Steam from shower or cooking · Indoor exhaust from clothes dryers What to look for If you can see or smell mold inside your home, it’s time to take measures. Any area that has sustained past or ongoing water damage should be thoroughly inspected—you may find hidden mold growth in water-damaged walls, floors or ceilings. Walls and floors that are warping or discolored can also indicate moisture problems, as can condensation on windows or walls.

Preventing mold in your home Since mold is always present, there’s no way to eliminate it completely. You can control indoor mold growth, however, by controlling moisture. 1 Remove the source of moisture by fixing any leaks or other water problems. 2 Make sure bathroom fans and dryers are properly vented to the outside. Always use the exhaust fan when cooking or showering. 3 Use a dehumidifier or air-conditioning system. Make sure your AC system is well maintained and is the correct size for your home. A faulty AC system can cool the air without removing the water vapor, creating high humidity. 4 Insulate your home well to prevent indoor condensation. 5 Have your heating, ventilation and cooling systems professionally cleaned annually. Air-duct systems can easily become contaminated with mold. 6 Regularly clean moist areas such as the bathroom with products that treat mildew. 7 Dry-clean, rather than wet-clean, your carpets. 8 Avoid carpeting bathrooms and basements. 9 Clean any moldy surfaces as soon as you notice them. Mold clean-up Mold is a manageable problem. Unless it is dealt with correctly, however, it will continue to come back. If your mold problem is severe or if you have extensive water damage, it’s best to call an experienced, professional contractor who specializes in mold removal. If you have a mold problem that is isolated to a small area, less than a square yard or so, you can try to resolve it yourself. Porous items that are hard to clean, such as carpet and drapes, should be discarded. Moldy Sheetrock and ceiling tiles can be removed and replaced. Hard, nonabsorbent surfaces such as glass, plastic and metal can be thoroughly cleaned with soap and water. Allow to dry completely. For solid items that are semi-porous, such as floors, cabinets and wood furniture, scrub with an ammonia-free cleaner and hot water to remove all mold. Rinse with water and dry thoroughly. After cleaning, apply a mildewcide to kill mold and spores. When cleaning mold, remember to wear gloves, a mask and eye protection, and work in a well-ventilated area. Throw away any sponges or rags that you use for cleaning.

Attention Real Estate Agents.....2005 is over, 2006 will be different!

As we launch off on a new year I'm amazed at how many agents I work with that think they dialed in their business last year. They are busy congratulating themselves of their brilliance when in fact all they have done is confused market for genius.

Last year was a great year, for many real estate professionals it was their best year. The challenge is that they can not expect to conduct their business this year as they did last year and get the same results. Why......because the market has changed. New market conditions will require a new or different approach. And, not only is the market changing, but so are our buyers and sellers.

One of the exciting aspects of being a real estate agent is that we have to be adaptable. I liken our agents to the down hill skiers we've been watching on the Olympics. Each day they race down the same hill yet each day it is different. The temperature, wind direction, texture of the snow.....all conditions they have to deal with yet over which they have no control. Much like the real estate agent who has no control over market, interest rates, inventory or clients timing, they too must adapt to the conditions.

The importance of face to face real estate offer presentations.

In the age of fax and e-mail, we tend to know one another by the color of our print and not by the content of our character. Hats off to modern technology, but there is no substitute for doing business face-to-face. This holds true….most especially…in making an offer on a house.

It is unfortunate that in today’s high tech, low touch environment we find real estate agents doing the old “drop and run” or “fax and forget” approach to delivering an offer to the other party. With low commissions comes low service and face to face communications upfront can off set problems down the road.

Meeting the seller and listing agent face to face improves communication and leads to more successful negotiations. Most communication is non-verbal. Body language, tone of voice and nuances of the negotiating process cannot be faxed. Presenting an offer personally to the seller improves the opportunity to provide important supporting details such as flexibility in timelines for inspections and closing. And if the buyer’s agent has his or her client on stand by or nearby, the seller’s counter-offer can be addressed on the spot and the transaction inked that hour. No waiting; no chance that a higher offer might come the next morning to trump your bid.

The risk of miscommunication is lowered when all the parties are present to ask and answer questions and clarify intent. “We weren’t sure what you meant by that” doesn’t end as a fly in the ointment of the agreement.

The additional benefits of a personal presentation to the seller are that his or her agent can provide data supporting the offering price and provide advocacy in the event of multiple offers. Conversely, the listing agent can provide additional background on the seller and the offer that don’t’ find their way into the ink.

Lastly, a tremendous value flows from the agents meeting face-to-face. Nothing serves the interests of the clients more than a smooth working relationship between their respective agents. In many real estate sales these days, the agents (let alone their clients) never are in the same room together. When rough spots appear, and with no feel and empathy for the other agent, it’s difficult to smooth the way for solutions.

Best advice……always have your agent present all offers personally. If they can’t present to both the listing agent and the seller then the agents should at least meet face to face to review the terms of the contract. Though this takes a little extra effort on your agents part the advantages to both the buyer and seller far outweigh the impersonal convenience of the fax. An enthusiastic and warm human being looking you in the eye sells a home or a buyers perspective better than sterile print staring at you from a cold page.

This should be a discussion you have up front with your real estate agent even before you hire them.