Growth, Land Use, Development, issues affecting you and your community regardless of where you live.

Mike Eliason is the Government Affairs Director for the Kitsap County Association of Realtors and a great asset to our organization. States, Cities and Counties are struggling with the issue of land use, growth and development across the United States. Though this article pertains to Washington State and Kitsap County you may find that it resonates with you and your area.

Be prepared and plan for our
state’s continuing growth
By Mike Eliason, Association Executive
Kitsap County
Association of REALTORS®

Washington’s population is on target to grow by a million people during this decade. In 2004 the growth in families — our friends’, neighbors’, and our own — accounted for more than half of the 88,000 new Washingtonians. The rest came here to take advantage of the Northwest’s legendary quality of life: a beautiful natural setting and the jobs and opportunity offered by an awakening economy. Protecting that quality of life should be among our highest priorities. There’s only one way to ensure growing population doesn’t erode Washington’s legacy: prepare now for the growth we know is coming.

The most important aspect of planning is making sure people will have a place to live, preferably near their workplace. Determining where people live also dictates how they — and the rest of us — will live. Families who cannot find homes close to work must commute. Adding commuters to the freeway doesn’t help air quality or freeway congestion. Commuters are less likely than residents to shop in local stores or eat in community restaurants. Because they spend so much time commuting, they are less likely to have time to volunteer in schools, churches, and local government.

Making sure people can find a home means ensuring a supply of homes that is diverse in location, price, and style. Some people want a garden and a lawn where the kids can play, while others prefer the freedom from chores that a condo offers. Some people prefer the peace and quiet of rural life to the hustle and bustle of living in the city. Still others need a flexible floor plan that can accommodate elderly relatives.

Big or little, urban or rural, expensive or modest, all homes require a fundamental ingredient: land. Creating homes means we must plan to make land available for use in the way that residents need it. We must allow consumers the maximum amount of flexibility possible in home styles and uses. That’s the best way to make the most efficient use of what little land is available for homes, and to create choices people want and need.

One of the aspects of new neighborhoods people say they want most is green space. Parks, lawns, and green borders to roads and walks help to create healthy and prosperous neighborhoods. Medical studies show that green space has a calming effect that can reduce stress, blood pressure and cholesterol levels. Parks encourage people to go outside and exercise, which helps reduce obesity. Trees, bushes, and other plants cool us in hot weather, soak up rain water in the winter, and clean water by filtering run-off year ‘round.

Carefully planned growth also is good for our economic health. Growth and development are signs of a healthy community. A growing population helps support community services. That adds up to fewer costs to existing residents for services, such as parks, recreation, schools, and transportation. New residents in a community enhance the vitality of neighborhoods and commercial areas. New and expanding businesses mean more jobs and more choices for goods and services for everyone.

Some hope to stop growth by refusing somehow to admit it or recognize it. But tightening the lid on a boiling pot just guarantees we’ll all get burned when it boils over. Washington families are not expected to stop having children. And as long as our economy thrives, jobs and opportunity will lure new residents to our neighborhoods, our workplace, and our parks. Population will continue to grow and we must plan now to accommodate it in the most constructive way.

Closing our eyes to inevitable growth leaves us unprepared, and that hurts new and current residents alike. Traffic congestion, environmental degradation, economic stagnation and poor housing choices are just a few of the consequences. In fact, most of the negative things people associate with growth are really tied to poor growth planning. Hoping for no growth doesn’t mean the growth won’t come. It just means we won’t be ready when it does.

If elected officials, community planners, businesses, and residents work together we can ensure we have the open space, sidewalks, roads, and utilities our community needs. Jobs and homes should be prominent in plans for improving quality of life. We must encourage a variety of housing choices and provide opportunities for businesses to start up or expand. Then, as families grow and business thrives, we will be able to support and improve our quality of life.


Factors That Affect Home Pricing

Factors that affect home pricing
YES NO
• Location • What the owners paid for the home
• Style, size & condition of the home • Amount of money spent on improvements
• Unique aspects of the property • Redecorating costs
• Time of year & market conditions • What a neighbor’s home sold for last year
• How quickly the owner needs to sell • Amount of cash the seller needs

Deer


Deer, originally uploaded by Frankly Real Estate.

Spring time in the Northwest

Interesting Real Estate Facts

The average buyer buys a home within 12 miles of their previous home.

Where did the average buyer first learn about the house they purchased:
36% From their real estate agent
24% From the internet
15% From a yard sign

81% of Buyers used a Real Estate Agent

Buyers typicaly took 8 weeks to find their home and looked at 11 homes before buying one.

Stay tuned for more real estate facts..........Source is The 2005 National Association of Realtors Profile of Home Buyers and Sellers.

Younger Generations Spend More on Housing

Interesting Article from our Realtor Magazine;

Survey: Younger Generations Spend More on Housing


(May 10, 2006) -- A recent survey of home buyers in three generations — Gen Y (those born between 1979 and 1994), Gen X (born between 1978 and 1965), and baby boomers (born between 1946 and 1965) — show that the two younger generations are outspending boomers in their first home purchase.

Both of the younger generations also devote a larger portion of their salaries to housing costs, according to the survey, conducted by Century 21 Real Estate. The goal of the survey was to understand and compare the experiences of the first-home purchase among members of three different generations.

Unlike boomers who purchased their first homes in response to life events such as a marriage or birth, financial incentives motivate both Gen X and Gen Y buyers with investment value cited as the “key driver” by the Century 21 survey with 42 percent of Gen X respondents and 39 percent of Gen Y respondents citing a “safe investment” as the reason for purchase.

A similar business-like approach is applied to the home search and purchase. “These guys don’t get caught up in the process. They’re very bottom-line oriented and results oriented,” says John Tuccillo, former NAR chief economist and principal of John Tuccillo Associates, an economics and business consulting firm in Virginia.

“Don’t expect them to fall in love with the property,” he cautions. “What matters is whether the house works for them and whether it’s a good deal.”

“Real estate professionals shouldn’t only get to know this group, they should also begin to look at their own materials, particularly Web sites, from the perspective of this demographic,” Tuccillo says.

A higher proportion of younger buyers use the Internet. For Gen Y it ranked as the primary source of home shopping information according to the survey. Experts such as Tuccillo and Melody Bohrer, vice president for education for ERA Real Estate say that being able to remain anonymous while they gather information is a top criterion for younger buyers.

Less relationship oriented than boomers, younger buyers are also more likely than boomers to say “next” if a salesperson doesn’t meet their expectations. However, Bohrer says, “They will be loyal if you work the way they want.”

By Camilla McLaughlin for REALTOR® Magazine Online

Real Estate Statistics for Kitsap County Washington 5/7/2006

Watching stats like these will help you determine what kind of a market you are in.
For Kitsap County Washington as of 5/7/2006

983 Active Listings
59 Homes went Pending last week
61 Average Days on Market

$275,900 Average List Price
$273,560 Average Sale Price

99% List price to sale price ratio

16.7 weeks of inventory

Learn more about Defining Your Market.

When Buying a Home in a Sellers Market......

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!

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.