A man, as he almost always did, came home late from work one night. He was tired and irritated. Upon his arrival he found his six-year old son waiting for him at the door.
"Daddy, may I ask you a question?" "Yeah, sure, what is it?" replied the father grumpily.
"Daddy, how much money do you earn in an hour?" "That's none of your business! What makes you ask such a thing?" the man responded angrily.
"I just want to know. Please tell me, how much money do you make in an hour?" pleaded the little boy.
"If you must know, I make $30.00 an hour" " Oh," the little boy replied, head bowed down and a tear in his eye. Looking up, he asked, "Daddy, may I borrow $15.00, please?"
The father was furious. "If the only reason you want to know how much money I make is just so you can borrow some to buy some silly toy or some other nonsense, then you march straight to your bedroom and go to bed. Think about why you're so selfish. I work long, very hard hours and I don't have time for such childish games."
The six-year old child went to this room and shut his door.
The father sat in the living room and became even angrier about the little boy's request for $15.00.
How dare he ask such questions only to get money?
After some time passed, the man had calmed down. He started to think about how hard he had been on his son. Maybe there was something he really needed to buy with that $15.00. He really did not ask for money very often.
The man went to his son's door and knocked. "Are you asleep son?" he asked. "No daddy, I'm awake." Replied the boy. "I've been thinking, maybe I was too hard on you earlier," the man said. "It's been a long day and I took my aggravation out on you. Here is the $15.00 you asked for.
The little boy sat straight up, beaming. "Oh, thank you daddy!" he yelled. Then, reaching under his mattress, he pulled out several crumpled dollar bills.
The man, seeing that the boy already had money, started to become angry again. The little boy slowly counted out his money, and then looked up at the man. "Why did you want more money if you already had some?" the father growled.
"Because I didn't have enough, but now I do," the little boy answered. "Daddy, I have $30.00 now...Can I buy an hour of your time?"
The old-time father who used to wonder where his boy was now has a grandson who wonders where his father is.
Cut Your Closing Costs
Closing is the point at which a contract between a buyer and a seller is executed, and the title to the property changes hands. This process has a variety of associated costs, most of which are paid at closing.
Normal Closing
CostsClosing costs can be highly variable since they're dependant on the size of the mortgage and the value of the property. Typically, closing costs are between three and five percent of the property's value, and may include the following:
* Loan origination fees - also called points (one point equals one percent of the mortgage). The standard fee is one point. Paying more points can secure a lower interest rate.
* Title search and insurance - a title search examines a property's historical records to ensure that the seller is the legal owner of the property. Title insurance protects the buyer if tax liens or unpaid mortgages are overlooked in the examination.
* Inspection fees - includes pest and property inspection.
* Mortgage broker fee - applicable only if you use a broker.
*Tax service fee - if the lender chooses to hire an independent service to monitor property tax payments.
*Document preparation and administration fees.
Payable in Advance
Most closing costs are paid when the sale of the property is finalized. However, some fees must be paid in advance, including:
* Application fee - the cost of processing the loan, usually payable at the time of application.
* Credit report fee - the buyer's credit history is reviewed as part of the application process.
* Appraisal fee for the property.
* Pre-paid interest - the interest on the loan from the day of closing until the first monthly mortgage payment.
* Escrow account funds - may include two months' worth of advance payments for mortgage insurance, hazard insurance, homeowner's insurance and property taxes.
Hidden Costs
So-called hidden costs are those which lenders are not required to disclose in the Good Faith Estimate. These can include:
* Courier fees
* Notary fees
* Documentation fees
* Overnight delivery fees
* Processing fees
You can save money on these hidden costs by asking lenders to send documents by regular mail rather than by overnight delivery, or by asking if they can transfer documents electronically.
Who Pays?
In a typical situation, the buyer of a property will pay closing costs. However, you can sometimes persuade the seller to pay for some or all of the closing costs. If your immediate finances are tight, reducing the amount of cash you need to pay at closing can be very helpful.
If you ask the seller to pay some or all of your closing costs, it is essentially the same as negotiating a lower sale price for the property. To a seller who is asking $200,000 for their property, there is no difference in accepting an offer of $190,000 and accepting an offer of $195,000 which includes agreeing to pay $5,000 in closing costs. To you as the buyer, however, it means that you've reduced the amount of cash you need by $5,000. You may not save any money overall, but if the seller pays for closing, it means you pay less cash up front. If you want to ask the seller to pay for closing costs, it can be as simple as deciding what you want to offer for the property, adding your estimated closing costs to it - and then making that offer contingent on the seller paying for closing. Note that if the market is slow or the seller needs to sell quickly, you stand a better chance of negotiating successfully.
Normal Closing
CostsClosing costs can be highly variable since they're dependant on the size of the mortgage and the value of the property. Typically, closing costs are between three and five percent of the property's value, and may include the following:
* Loan origination fees - also called points (one point equals one percent of the mortgage). The standard fee is one point. Paying more points can secure a lower interest rate.
* Title search and insurance - a title search examines a property's historical records to ensure that the seller is the legal owner of the property. Title insurance protects the buyer if tax liens or unpaid mortgages are overlooked in the examination.
* Inspection fees - includes pest and property inspection.
* Mortgage broker fee - applicable only if you use a broker.
*Tax service fee - if the lender chooses to hire an independent service to monitor property tax payments.
*Document preparation and administration fees.
Payable in Advance
Most closing costs are paid when the sale of the property is finalized. However, some fees must be paid in advance, including:
* Application fee - the cost of processing the loan, usually payable at the time of application.
* Credit report fee - the buyer's credit history is reviewed as part of the application process.
* Appraisal fee for the property.
* Pre-paid interest - the interest on the loan from the day of closing until the first monthly mortgage payment.
* Escrow account funds - may include two months' worth of advance payments for mortgage insurance, hazard insurance, homeowner's insurance and property taxes.
Hidden Costs
So-called hidden costs are those which lenders are not required to disclose in the Good Faith Estimate. These can include:
* Courier fees
* Notary fees
* Documentation fees
* Overnight delivery fees
* Processing fees
You can save money on these hidden costs by asking lenders to send documents by regular mail rather than by overnight delivery, or by asking if they can transfer documents electronically.
Who Pays?
In a typical situation, the buyer of a property will pay closing costs. However, you can sometimes persuade the seller to pay for some or all of the closing costs. If your immediate finances are tight, reducing the amount of cash you need to pay at closing can be very helpful.
If you ask the seller to pay some or all of your closing costs, it is essentially the same as negotiating a lower sale price for the property. To a seller who is asking $200,000 for their property, there is no difference in accepting an offer of $190,000 and accepting an offer of $195,000 which includes agreeing to pay $5,000 in closing costs. To you as the buyer, however, it means that you've reduced the amount of cash you need by $5,000. You may not save any money overall, but if the seller pays for closing, it means you pay less cash up front. If you want to ask the seller to pay for closing costs, it can be as simple as deciding what you want to offer for the property, adding your estimated closing costs to it - and then making that offer contingent on the seller paying for closing. Note that if the market is slow or the seller needs to sell quickly, you stand a better chance of negotiating successfully.
How to Find a Good Investment Property
In 2005, 23% of all homes sold were investment properties, according to the National Association of Realtors. There's no question that investing in real estate can be lucrative, but it's important to choose your properties carefully to make sure you don't end up getting burned.
Choose the Right Neighborhood
Just like with any other real estate purchase, location is all-important. Whether you're buying an investment property to rent or to renovate for resale, a large part of your success will come down to the neighborhood you buy into. Developing or undervalued neighborhoods are both good prospects for investment buying. The easiest way of getting a feel for good prospects is just to jump in your car and drive around your area. Look for areas with a lot of development going on, or where new housing projects are planned. If you're buying a rental property, bear in mind that if you're going to be doing maintenance and repair work yourself, somewhere relatively close to your own home is a good idea so that you don't have to spend a lot of time traveling to the property.
Don't forget the old rules still apply - buy the worst house in the best street, not the best house in the worst street. You don't want to end up buying a property that's worth significantly more than neighboring houses, as this will mean your investment has no room to appreciate in value because the surrounding properties are dragging its value down.
Foreclosures
Buying foreclosures can be risky, much more so than buying property in the traditional fashion. However, if you're aware of the risks beforehand and take steps to minimize them, you can end up with a great deal. Before you even consider buying in this way, you should be very familiar with foreclosure laws in your state, in addition to knowing as much as possible about the neighborhoods you're interested in.
To find foreclosures, look in your local newspapers for advertisements with key words such as "bank-owned," "foreclosed," or "REO" (real estate owned). Look on lender websites to check for foreclosure listings, and call lenders and ask to speak to someone who handles foreclosures.
As a final caveat - don't buy anything without having it inspected first, no matter how good the property looks on the surface. Property inspection is the best way of ensuring you end up with a profitable deal.
Why Good Credit is Important
When it comes to financing the purchase of rental property, lenders often require larger down payments and higher interest rates. This is because lenders know that owners of rental properties are more likely to default on loan payments than on payments for their personal homes. Simply put, you pay more because rental property is a higher risk investment. To improve your chances of getting a good loan, it's important to have good credit and to reduce your credit card and other consumer debt as much as possible.
It's also important to ensure you have a good-sized cash reserve left over after you've bought your property, to help pay for surprise expenses such as repairs (and periods when the house is vacant, if you've purchased a rental property).
Get to Know the Tax Laws
Owning investment properties can provide big tax benefits. Getting to know your state and federal tax laws is important for maximizing the profits you can make from investing in real estate. For example:
*Depreciation on an investment property is tax-deductible at an annual rate of 3.64% of the home's market value.
* Mortgage interest on investment properties is tax-deductible.
Do your homework, choose your properties carefully and watch your investments grow!
What's Your Sales Strategy?
If you've decided to go ahead and sell your house, it's important to have a sales strategy planned out before you even put your house on the market. It's also important to have a strategy that both you and your agent agree on, right down to the last detail. With all the details of your plan firmly in place, you'll have a strategy that will help your sale go more quickly and more smoothly when you start receiving offers from buyers.
What Should a Good Strategy Include?
Your sales strategy should incorporate two mini-plans, one for marketing your property, and the other for financial considerations and interacting with buyers.
Marketing your house effectively is a crucial part of the sales process. Marketing is designed to get as many people as possible through your front door, because the more interest you create in your property, the better your ability to negotiate a good sale price. This section of the plan should include things such as:
* Advertising, photographs, and signage.
* Whether or not you decide to hold open homes.
* How you're going to "stage" your property to increase its appeal.
* Ways to emphasize the strengths and downplay the weaknesses of your property and neighborhood
The second part of the plan should include the following considerations:
* Your initial asking price. Do you want to consider a range pricing strategy?
* If the market is slow, how long will you wait before making a price reduction, and how much will the reduction be?
* Negotiation with potential buyers.
Click below to see The Davidson Team's Customer Marketing Plan!
http://www.wenatcheehouses.com/marketing_plan.php
Range Pricing Strategies
Range pricing is a way of getting more buyers through your front door. Using a range pricing strategy means listing your house at a price range you find acceptable, rather than a firm price. For example, if your home is valued at $275,000, you might list your range as $250,000-$275,000. This way, you get more buyers coming through your home, and while they may offer bids that are lower than you want to accept, you have the option to negotiate a price that's more to your liking. Range pricing strategies are an excellent way of generating interest in your property in a slow market, but are less useful when the market is strong.
Negotiating with Buyers
During the offer and counter-offer process, what do you want to stand firm on, and where are you willing to compromise? Consider such things as:
* The length of the closing period.
* Who pays closing costs?
* Who pays for repairs that might be needed. Will you pay for the repairs yourself or negotiate a reduced sale price to compensate the buyer for repair costs?
* Beware of so-called "open-ended contingencies" when negotiating with potential buyers. An example is a buyer who makes an offer subject to them selling their own property before buying yours. If you end up negotiating with such a buyer, counter with a clause that states you have the right to accept a better offer if it should be offered to you.
Other Things to Consider
Will you hire a home inspector to do your own inspection before putting the house on the market? It's an extra expense, but it can give you a firmer negotiating position if you're aware of problems the house may have before it goes on the market.
Review your strategy regularly. If something isn't working for you, don't be afraid to change it if you and your agent can work out a better one.
What Should a Good Strategy Include?
Your sales strategy should incorporate two mini-plans, one for marketing your property, and the other for financial considerations and interacting with buyers.
Marketing your house effectively is a crucial part of the sales process. Marketing is designed to get as many people as possible through your front door, because the more interest you create in your property, the better your ability to negotiate a good sale price. This section of the plan should include things such as:
* Advertising, photographs, and signage.
* Whether or not you decide to hold open homes.
* How you're going to "stage" your property to increase its appeal.
* Ways to emphasize the strengths and downplay the weaknesses of your property and neighborhood
The second part of the plan should include the following considerations:
* Your initial asking price. Do you want to consider a range pricing strategy?
* If the market is slow, how long will you wait before making a price reduction, and how much will the reduction be?
* Negotiation with potential buyers.
Click below to see The Davidson Team's Customer Marketing Plan!
http://www.wenatcheehouses.com/marketing_plan.php
Range Pricing Strategies
Range pricing is a way of getting more buyers through your front door. Using a range pricing strategy means listing your house at a price range you find acceptable, rather than a firm price. For example, if your home is valued at $275,000, you might list your range as $250,000-$275,000. This way, you get more buyers coming through your home, and while they may offer bids that are lower than you want to accept, you have the option to negotiate a price that's more to your liking. Range pricing strategies are an excellent way of generating interest in your property in a slow market, but are less useful when the market is strong.
Negotiating with Buyers
During the offer and counter-offer process, what do you want to stand firm on, and where are you willing to compromise? Consider such things as:
* The length of the closing period.
* Who pays closing costs?
* Who pays for repairs that might be needed. Will you pay for the repairs yourself or negotiate a reduced sale price to compensate the buyer for repair costs?
* Beware of so-called "open-ended contingencies" when negotiating with potential buyers. An example is a buyer who makes an offer subject to them selling their own property before buying yours. If you end up negotiating with such a buyer, counter with a clause that states you have the right to accept a better offer if it should be offered to you.
Other Things to Consider
Will you hire a home inspector to do your own inspection before putting the house on the market? It's an extra expense, but it can give you a firmer negotiating position if you're aware of problems the house may have before it goes on the market.
Review your strategy regularly. If something isn't working for you, don't be afraid to change it if you and your agent can work out a better one.
Blaine's Recipe of the Week - 5/24/07
My wife and I are going out to dinner at one of the local standards for steak dinner in Wenatchee at the famous Windmill Restaraunt. So, I'm craving either a rib eye or tenderloin and thought it would be fitting to post my favorite way to prepare a tenderloin or filet.
Dijon Filet/Tenderloin with Red Reducation
Preheat over to 450 degrees. Season 8 oz. filets with kosher or sea salt and course ground pepper, and pan sear in olive oil for two minutes on each side. Make sure you get the pan as hot as possible before searing. Spread Dijon on top of filets. Transfer to oven and bake for 3-5 minutes for rare to medium rare.
Reduction: ½ cup port or dry red wine, finely chopped shallots, peppercorns, salt and Cointreu or Grand Marinier to taste. Reduce to ½ to ¾ over medium heat. Drizzle over meat.
Enjoy!
How to Avoid 8 Costly Moving Mistakes
If you have a move in your future, there are definite ways to make the process go as smoothly as possible. Plan ahead and you'll avoid these 8 costly moving mistakes.
1. Scheduling your move on the same day of closing
While most buyers take possession of their new home on the day of closing, there are a lot of conflicts that can arise unexpectedly. Be sure to keep in constant communication with your escrow company so as not to delay your moving plans.
2. Not requiring a written estimate
It's fine to have moving companies give you an estimate over the phone or Internet. But to get a firm price, you need to ask the company to send a representative to walk through your home while you point out exactly what you want transported. Be sure you understand the conditions of the estimate - can they raise your bill on delivery? Does the contract allow them to bill you for more later?
3. Choosing a moving company based on price alone
You could end up spending more time and money in the end trying to fix a moving disaster. Check out the company's references (try to get two), licensing, insurance and length of time in business.
4. Not making a first night survival kit
Better to be safe than sorry. If your shipment hasn't arrived or you're simply too tired to unpack everything, you'll be thankful to have an accessible overnight bag with some essential items you'll need for the first night in your new place. Don't forget toiletries, medication, children's and pet's necessities - and maybe even a bottle of champagne to celebrate.
5. Not using a dolly or a hand truck
Whether you're moving yourself or just rearranging things after a professional move, the money you spend to rent or buy moving equipment will pay for itself by dodging back strains and chiropractic visits.
6. Refusing extra coverage for loss and breakage
The basic limited liability coverage offered to you, free of charge, by the movers will not be sufficient. And most homeowners' policies don't cover items broken or lost in a move. Extra insurance can be purchased through an independent insurance company, which will cover you for the duration of the move. Your mover will be able to direct you to a company that will bind your move.
7. Not labeling boxes
When packing boxes, make sure you label the top and sides of boxes with contents, location of contents in your house and any special instructions, such as "fragile" or "open first." Also, by keeping a list of the contents on the outside of the box, you won't have to dig through several boxes marked "kitchen" just to find a pan.
8. Not keeping your receipts
If you're moving closer to a job, your moving costs may be tax-deductible. Keep receipts for moving household goods, utility change fees and lodging and travel expenses. However, if your employer covers those costs, you won't be allowed to deduct them.
1. Scheduling your move on the same day of closing
While most buyers take possession of their new home on the day of closing, there are a lot of conflicts that can arise unexpectedly. Be sure to keep in constant communication with your escrow company so as not to delay your moving plans.
2. Not requiring a written estimate
It's fine to have moving companies give you an estimate over the phone or Internet. But to get a firm price, you need to ask the company to send a representative to walk through your home while you point out exactly what you want transported. Be sure you understand the conditions of the estimate - can they raise your bill on delivery? Does the contract allow them to bill you for more later?
3. Choosing a moving company based on price alone
You could end up spending more time and money in the end trying to fix a moving disaster. Check out the company's references (try to get two), licensing, insurance and length of time in business.
4. Not making a first night survival kit
Better to be safe than sorry. If your shipment hasn't arrived or you're simply too tired to unpack everything, you'll be thankful to have an accessible overnight bag with some essential items you'll need for the first night in your new place. Don't forget toiletries, medication, children's and pet's necessities - and maybe even a bottle of champagne to celebrate.
5. Not using a dolly or a hand truck
Whether you're moving yourself or just rearranging things after a professional move, the money you spend to rent or buy moving equipment will pay for itself by dodging back strains and chiropractic visits.
6. Refusing extra coverage for loss and breakage
The basic limited liability coverage offered to you, free of charge, by the movers will not be sufficient. And most homeowners' policies don't cover items broken or lost in a move. Extra insurance can be purchased through an independent insurance company, which will cover you for the duration of the move. Your mover will be able to direct you to a company that will bind your move.
7. Not labeling boxes
When packing boxes, make sure you label the top and sides of boxes with contents, location of contents in your house and any special instructions, such as "fragile" or "open first." Also, by keeping a list of the contents on the outside of the box, you won't have to dig through several boxes marked "kitchen" just to find a pan.
8. Not keeping your receipts
If you're moving closer to a job, your moving costs may be tax-deductible. Keep receipts for moving household goods, utility change fees and lodging and travel expenses. However, if your employer covers those costs, you won't be allowed to deduct them.
Increase Your Home’s Value through Energy Efficient Upgrades
Increasing energy efficiency in the home is becoming more important for several reasons. It is, of course, a great way to reduce your monthly utility bills, but it's also important because the world's sources of energy are not infinite, and more people are recognizing this and looking at ways to make their homes more energy-efficient. Lastly, remodeling your home with energy efficiency in mind increases its value due to the resulting lower monthly utility costs.
Insulation
Good insulation is perhaps the most effective way of improving the energy efficiency of your home. However, some insulators are better than others. Fiberglass, once the most commonly-used insulator, is no longer as popular as it once was. Most fiberglass insulators are made using formaldehyde, and can release gas which decreases your air quality. Cellulose is a more efficient option; however some cellulose insulators may be treated with formaldehyde, so it pays to check before you by. Superior cellulose insulators are treated with ammonium sulfate or borates, both of which are non-toxic. Cotton insulation has been increasing in popularity, due to its efficacy and the fact that it is environmentally-friendly. Cotton insulation is treated with boron, and is fire-retardant, pest-repellant, and completely non-toxic.
Windows and Doors
The average home loses up to 30% of its heat (or air-conditioning) energy through windows. Well-sealed windows and exterior doors are just as important as insulation for preventing energy loss. However, many frame materials require maintenance and choosing framing material that provides greater energy efficiency is often a trade-off in which more frequent maintenance is required. Wood frames are the most efficient in terms of energy loss and cause less condensation than other materials, however they will require painting or staining to keep them looking attractive. Aluminum frames, on the other hand, need very little maintenance but they are at the bottom of the list in terms of energy efficiency. Aluminum-clad windows are much more efficient. These are wood frames with an aluminum exterior, and combine the efficiency of wood with the low maintenance requirements of traditional aluminum frames.
Cooling
Many of the measures you take to prevent heat loss in your home will also help keep it cooler during warm weather. In addition, consider installing ceiling fans in your home. These are a more energy-efficient way of cooling than air-conditioners.
Efficient Lighting
When it comes to installing energy-efficient lighting, there are two main options - light dimmers and motion sensors. Light dimmers are switches which allow you to control the intensity of lighting in a room. Motion sensors turn lights on and off automatically by sensing when people enter and leave a room. These are particularly effective in rooms which are used irregularly, and in outdoor areas.
Outdoors
In the outdoors, trees and large shrubs are a less obvious way of making your home more energy efficient. With the additional advantage of adding appeal to your yard, careful planting of trees can add windbreaks which shield your house from wind, helping to prevent heat loss. Trees can also provide shade during the summer months, and help keep your home cool.
Using an Energy-Efficient Mortgage to Finance Remodeling
Major remodeling jobs that are planned with energy efficiency in mind can be expensive. This kind of remodeling will save you money in the long term, but the start-up costs are high. One way of financing such remodeling is with an Energy-efficient Mortgage. To qualify for an EEM, the money you save on your monthly utility bills must be greater than the monthly repayment of the EEM, and your total savings must also be more than your total costs (including maintenance). When you are granted an EEM, you have 90-180 days to carry out the remodeling work. Additionally, you cannot be granted an EEM if you apply after remodeling has started, or if you apply after any other financing has been granted.
Thought Provoking: 5/21/07
HOW POOR ARE WE?
One day a father, of a very wealthy family, took his son on a trip to the country with the firm purpose of showing his son how poor people can be. His goal was to teach his son to appreciate the good life he was living. The father and son spent a couple of days and nights on the farm of what would be considered a very poor family.
On their return from the trip, the father asked his son, "How was the trip?" "It was great Dad!" "Did you see how poor people can be, and how it is to be so poor?" the father asked. "Oh yeah," the son replied.
"So what did you learn from the trip?" asked the father. The son answered, "I saw that we have one dog and they have four. We have a pool that reaches to the middle of our garden and they have a creek that has no visible end. We have imported lanterns in our garden and they have millions of stars at night. Our patio reaches to the front yard and they have the whole horizon. We have a small piece of land to live on and they have fields that go beyond sight. We have servants who serve us, but they serve others. We buy our food but they grow theirs. We have walls around us for protection. They are protected by their friends."
With this the boy's father was speechless. Then the son added, "Thanks Dad for showing me how poor we are."
There is always a different point of view. Sometimes in our struggle for "net worth", we forget what really matters the most is happiness in life.
Today, spend a few minutes of your time taking a second look at your life, and inspire a friend or family member to do the same. Are you rich or poor?
We hope your life is a rich one!
Home Prices Soaring
Here's an interesting article from the Wenatchee World, discussing the current Wenatchee and surrounding area real estate market.
Home prices soaring
By Christine Pratt, World staff writer
Posted May 17, 2007
http://wenworld.com/apps/pbcs.dll/article?AID=/20070517/NEWS04/705170400/0/FRONTPAGE
WENATCHEE -- Median home prices have climbed at a record rate in Chelan and Douglas counties, but the area still remains relatively affordable, except for first-time buyers, local and statewide studies show.
The median price of homes sold in the greater Wenatchee area was $229,000 in March, up 31 percent from $174,475 recorded in March 2006, according to the latest real estate Snapshot report from Pacific Appraisal Associates, a Wenatchee firm. Across the complete, two-county area, the median price increased 32 percent.
Longtime Wenatchee-area home seller Doug Morgan says that high demand and short supply have caused sale prices to soar, particularly for single-story homes in sought-after neighborhoods.
He cited an example of a home in Wenatchee's popular Western Heights subdivision that sold for $239,000 in September last year and then resold recently for $297,900 -- an appreciation of about 24 percent. In 2003, before the housing boom, the same house sold for $149,900. Since then, the home's value has appreciated 98 percent.
"This is the biggest price increase we've ever had," says Wenatchee mortgage broker Karen Norlin. "About 15 percent per year has been the largest appreciation we've had until right now."
Soaring home prices in Greater Wenatchee are linked to a reduced supply of homes available for sale in most price categories lower than $300,000, the local Snapshot report shows.
"We no longer have homes in those lower classifications," said Brian Vincent, author of Pacific Appraisal's Snapshot. "Houses have stepped up to the higher price ranges, where inventories are now higher than they've ever been."
Year to date through March, 184 homes sold in Greater Wenatchee, down 12 percent from 208 sold during the same period last year, the Snapshot shows.
But the total dollar value of those sales increased 13 percent to $47.2 million from $42 million last year.
Norlin estimates that current price appreciation is not sustainable at its current rates, but says she expects the area to continue to appreciate.
Median prices listed in Wenatchee's local snapshot are only slightly higher than those of a similar report released quarterly by the state Center for Real Estate Research at Washington State University in Pullman.
The WSU study rates housing affordability statewide and nationwide.
Findings through March give Chelan County a housing affordability index rating of almost 103, meaning repeat home buyers have slightly more income than needed at the national average to be able to afford a median-priced home. Douglas County ranks slightly lower with a 96.
The index shows that homes are more affordable in Grant and Okanogan counties, which rated 149 and 121 on the index.
The statewide rating is 89.
Norlin says many of the repeat buyers in the Wenatchee area are from outside North Central Washington and are relocating here or buying second homes.
First-time buyers have a rougher time.
The WSU index shows that first-time buyers in Chelan and Douglas counties have only about 60 percent of the income they'd need to qualify for a mortgage on a typical starter home valued at less than $229,000 in the Wenatchee area.
"It's becoming more and more difficult for first-time buyers," Norlin said Wednesday. "Entry-level policemen or teachers are finding it next to impossible on one income to purchase a home. And a lot of us don't see our area slowing down."
She said first-timers may have the income, but insufficient savings for a sizable down payment. With little money down, monthly mortgage payments are beyond their means, she said.
"This is bittersweet," Norlin says of the growing market. "It's sweet because our area is such a diamond, and people are finding us. It's bitter because we want our kids to be able to come home to Wenatchee. It's almost like that time has escaped."
By contrast, Grant County is one of the state's most affordable for first-time buyers. The index shows that the county's first-timers earn about 94 percent of the income needed to qualify for a home loan. Okanogan County first-timers earn about 74 percent of the income needed to qualify.
Statewide, first-time buyers have about half the income needed to qualify, the index shows.
Christine Pratt: 665-117
pratt@wenworld.com
Home prices soaring
By Christine Pratt, World staff writer
Posted May 17, 2007
http://wenworld.com/apps/pbcs.dll/article?AID=/20070517/NEWS04/705170400/0/FRONTPAGE
WENATCHEE -- Median home prices have climbed at a record rate in Chelan and Douglas counties, but the area still remains relatively affordable, except for first-time buyers, local and statewide studies show.
The median price of homes sold in the greater Wenatchee area was $229,000 in March, up 31 percent from $174,475 recorded in March 2006, according to the latest real estate Snapshot report from Pacific Appraisal Associates, a Wenatchee firm. Across the complete, two-county area, the median price increased 32 percent.
Longtime Wenatchee-area home seller Doug Morgan says that high demand and short supply have caused sale prices to soar, particularly for single-story homes in sought-after neighborhoods.
He cited an example of a home in Wenatchee's popular Western Heights subdivision that sold for $239,000 in September last year and then resold recently for $297,900 -- an appreciation of about 24 percent. In 2003, before the housing boom, the same house sold for $149,900. Since then, the home's value has appreciated 98 percent.
"This is the biggest price increase we've ever had," says Wenatchee mortgage broker Karen Norlin. "About 15 percent per year has been the largest appreciation we've had until right now."
Soaring home prices in Greater Wenatchee are linked to a reduced supply of homes available for sale in most price categories lower than $300,000, the local Snapshot report shows.
"We no longer have homes in those lower classifications," said Brian Vincent, author of Pacific Appraisal's Snapshot. "Houses have stepped up to the higher price ranges, where inventories are now higher than they've ever been."
Year to date through March, 184 homes sold in Greater Wenatchee, down 12 percent from 208 sold during the same period last year, the Snapshot shows.
But the total dollar value of those sales increased 13 percent to $47.2 million from $42 million last year.
Norlin estimates that current price appreciation is not sustainable at its current rates, but says she expects the area to continue to appreciate.
Median prices listed in Wenatchee's local snapshot are only slightly higher than those of a similar report released quarterly by the state Center for Real Estate Research at Washington State University in Pullman.
The WSU study rates housing affordability statewide and nationwide.
Findings through March give Chelan County a housing affordability index rating of almost 103, meaning repeat home buyers have slightly more income than needed at the national average to be able to afford a median-priced home. Douglas County ranks slightly lower with a 96.
The index shows that homes are more affordable in Grant and Okanogan counties, which rated 149 and 121 on the index.
The statewide rating is 89.
Norlin says many of the repeat buyers in the Wenatchee area are from outside North Central Washington and are relocating here or buying second homes.
First-time buyers have a rougher time.
The WSU index shows that first-time buyers in Chelan and Douglas counties have only about 60 percent of the income they'd need to qualify for a mortgage on a typical starter home valued at less than $229,000 in the Wenatchee area.
"It's becoming more and more difficult for first-time buyers," Norlin said Wednesday. "Entry-level policemen or teachers are finding it next to impossible on one income to purchase a home. And a lot of us don't see our area slowing down."
She said first-timers may have the income, but insufficient savings for a sizable down payment. With little money down, monthly mortgage payments are beyond their means, she said.
"This is bittersweet," Norlin says of the growing market. "It's sweet because our area is such a diamond, and people are finding us. It's bitter because we want our kids to be able to come home to Wenatchee. It's almost like that time has escaped."
By contrast, Grant County is one of the state's most affordable for first-time buyers. The index shows that the county's first-timers earn about 94 percent of the income needed to qualify for a home loan. Okanogan County first-timers earn about 74 percent of the income needed to qualify.
Statewide, first-time buyers have about half the income needed to qualify, the index shows.
Christine Pratt: 665-117
pratt@wenworld.com
Blaine's Recipe of the Week: Part 2 - 5/18/07
I typically only post one recipe per week, but it's Friday and I'm craving a tasty cocktail, so here's one of my favorite martini concoctions:
Blueberry Lemon Drop
2 shots Stoli Blueberry vodka
Splash of Cointreau
2 tablespoons frozen lemonade concentrate
Store mix in freezer for several hours. Add crushed ice and mix into shaker, serve in martini glass.
Have an outstanding weekend!
Thought Provoking: 5/17/07
The Wooden Bowl
A frail old man went to live with his son, daughter-in-law and four-year old grandson. The old man's hands trembled, his eyesight was blurred and his step faltered. Even in this frail condition, he ate his meals with the family at the dinner table.
But the elderly grandfather's shaky hands and failing sight made eating difficult. Peas rolled off his spoon onto the floor. When he grasped the glass, milk spilled on the tablecloth.
The son and daughter-in-law became irritated with the mess. "We must do something about Grandfather," said the son. I've had enough of his spilled milk, noisy eating and food on the floor.
So the husband and wife set a small table in the corner. There, Grandfather ate alone while the rest of the family enjoyed dinner. Since Grandfather had broken a dish or two, his food was served in a wooden bowl.
When the family glanced in Grandfather's direction, sometime he had a tear in his eye as he sat alone. Still, the only words the couple had for him were sharp admonitions when he dropped a fork or spilled food. The four-year-old watched it all in silence.
One evening before supper, the father noticed his son playing with wood scraps on the floor. He asked the child sweetly, "What are you making?" Just as sweetly, the boy responded, "Oh, I am making a little bowl so you and Mama can eat your food when I grow up." The four-year-old smiled and went back to work.
The words so struck the parents that they were speechless. Then tears started to stream down their cheeks. Though no word was spoken, both knew what they had to do.
That evening the husband took Grandfather's hand and gently led him back to the family table. For the remainder of his days the old man ate every meal with the family. And for some reason, neither husband nor wife seemed to care any longer when a fork was dropped, milk was spilled or the tablecloth was soiled.
- - Author Unknown
We've all heard it said that we should never judge another man until we have walked a mile in his shoes. Hopefully, the story of the Wooden Bowl has again reinforced the concept of giving consideration to other people's circumstances before we pass judgment on their activities.
Wouldn't it be best, when we become irritated with another person, to pause for a moment, give thought to his/her situation and then take action only after having done so. The world would become a much better place if we all made this a rule by which we live.
Monthly Home Essentials Newsletter: 5/16/07
Monthly Home Essentials Newsletter
In This Issue:
Secrets to Making a Lowball Offer
Setting the Stage for a Successful Sale
Secrets to Making a Lowball Offer
When the property market cools down, it becomes a good time for property buyers. If you don't have that much money to spend on a house, but you're absolutely convinced that it's the right time for you to move (or if you've found an intriguing investment property) then you need to learn how to make a lowball offer - and get it accepted. Generally, a lowball offer is 10% or more below list price.
First and foremost, learn what types of properties you're looking for in terms of both the house and the seller.
The House
The properties you're interested in have been on the market more than a month. There's not necessarily anything seriously wrong with them, but they're just not generating much attention. Maybe they're unattractive, on a busy street, or in disrepair. The key is to find properties that maybe need a little repair work, but nothing major. Your lowball offer isn't worth much if you have to spend all the money you saved on structural or wiring work.
The Seller
The seller you're looking for needs to move ASAP. Perhaps they're relocating to a job in another city, or they've already bought another house but want to sell the old one before leaving town. Maybe they're selling the home of a recently-deceased relative, and they just want to get the whole thing over with. Maybe they've defaulted on their mortgage payments and the house is foreclosing. These are motivated sellers and they're more willing to accept a low offer on their property.
The Secrets
* Get pre-approved for a mortgage before you start shopping. It'll make you more attractive to sellers.
* Shop at the right time - one of the best times to look is during the week between Christmas and New Year's, simply because very few people are looking then. If you find the right house or the right seller at this time, it's a great opportunity for getting a low-ball offer accepted.
* Make an initial offer that's below what you want to pay, and prepare to be rejected. Let the seller feel that they're negotiating a better deal with you and they're more likely to accept your second or third offer. Note: in a competitive market this strategy isn't advisable, but in a slow market it's worth trying.
* Make offers on several properties. The more opportunities you create, the more likely you are to have a seller accept your offer.
* Hire a buyer's agent. The seller's agent is trying to get the best possible deal for their client and they're not going to help you get a low-ball offer accepted. A dedicated buyer's agent will, and they'll most likely have more in-depth knowledge of the neighborhood and current market prices, too.
* Don't use the list price as an indication of a property's true market value. List prices are often inflated, so do your own research. Get a Current Market Analysis for the area and find out how accurate that list price really is.
* Give the seller a good reason to accept your price. Offer to close quickly, offer to pay in cash, and be flexible on inspection dates. Accommodate the seller in every way possible, and if they're motivated to sell they'll be more amenable to your offer.
Setting the Stage for a Successful Sale
What's the best way to help your home make a glorious first impression on would-be buyers? Real estate experts agree that "staging" (also called "fluffing") your home to show it in the most favorable light is well worth your time and effort.
Beyond the pre-sale cleaning and organizing you would expect to do, successful staging includes strategically arranging objects and furniture, adding decorative touches and more. Here are a few tips from the pros to help buyers make an immediate emotional connection with your home:
* Add a pot of fresh blooming flowers to the entryway (yellow is a very welcoming color)
* Open blinds to show off nice views. A vase on the window sill plays down less attractive views
* Add throw pillows, a soft lap blanket, candles and a candy dish for a cozy living room
* Use a soft bedspread, quilt, pillows and a throw rug to turn a bedroom into a relaxing retreat
* Set your dining room table with dishes, placemats, wine glasses, etc.
* Banish television sets, computers, kitchen and bathroom appliances from sight
* Don't forget the garage! Make sure surfaces are clean and neat. Store tools and gardening products to make room for cars.
Whether you do the staging yourself or have your home fluffed by a professional, one Chicago-area expert confirms that homes that are staged often sell 75% faster and for 3%-6% higher than the asking price!
In This Issue:
Secrets to Making a Lowball Offer
Setting the Stage for a Successful Sale
Secrets to Making a Lowball Offer
When the property market cools down, it becomes a good time for property buyers. If you don't have that much money to spend on a house, but you're absolutely convinced that it's the right time for you to move (or if you've found an intriguing investment property) then you need to learn how to make a lowball offer - and get it accepted. Generally, a lowball offer is 10% or more below list price.
First and foremost, learn what types of properties you're looking for in terms of both the house and the seller.
The House
The properties you're interested in have been on the market more than a month. There's not necessarily anything seriously wrong with them, but they're just not generating much attention. Maybe they're unattractive, on a busy street, or in disrepair. The key is to find properties that maybe need a little repair work, but nothing major. Your lowball offer isn't worth much if you have to spend all the money you saved on structural or wiring work.
The Seller
The seller you're looking for needs to move ASAP. Perhaps they're relocating to a job in another city, or they've already bought another house but want to sell the old one before leaving town. Maybe they're selling the home of a recently-deceased relative, and they just want to get the whole thing over with. Maybe they've defaulted on their mortgage payments and the house is foreclosing. These are motivated sellers and they're more willing to accept a low offer on their property.
The Secrets
* Get pre-approved for a mortgage before you start shopping. It'll make you more attractive to sellers.
* Shop at the right time - one of the best times to look is during the week between Christmas and New Year's, simply because very few people are looking then. If you find the right house or the right seller at this time, it's a great opportunity for getting a low-ball offer accepted.
* Make an initial offer that's below what you want to pay, and prepare to be rejected. Let the seller feel that they're negotiating a better deal with you and they're more likely to accept your second or third offer. Note: in a competitive market this strategy isn't advisable, but in a slow market it's worth trying.
* Make offers on several properties. The more opportunities you create, the more likely you are to have a seller accept your offer.
* Hire a buyer's agent. The seller's agent is trying to get the best possible deal for their client and they're not going to help you get a low-ball offer accepted. A dedicated buyer's agent will, and they'll most likely have more in-depth knowledge of the neighborhood and current market prices, too.
* Don't use the list price as an indication of a property's true market value. List prices are often inflated, so do your own research. Get a Current Market Analysis for the area and find out how accurate that list price really is.
* Give the seller a good reason to accept your price. Offer to close quickly, offer to pay in cash, and be flexible on inspection dates. Accommodate the seller in every way possible, and if they're motivated to sell they'll be more amenable to your offer.
Setting the Stage for a Successful Sale
What's the best way to help your home make a glorious first impression on would-be buyers? Real estate experts agree that "staging" (also called "fluffing") your home to show it in the most favorable light is well worth your time and effort.
Beyond the pre-sale cleaning and organizing you would expect to do, successful staging includes strategically arranging objects and furniture, adding decorative touches and more. Here are a few tips from the pros to help buyers make an immediate emotional connection with your home:
* Add a pot of fresh blooming flowers to the entryway (yellow is a very welcoming color)
* Open blinds to show off nice views. A vase on the window sill plays down less attractive views
* Add throw pillows, a soft lap blanket, candles and a candy dish for a cozy living room
* Use a soft bedspread, quilt, pillows and a throw rug to turn a bedroom into a relaxing retreat
* Set your dining room table with dishes, placemats, wine glasses, etc.
* Banish television sets, computers, kitchen and bathroom appliances from sight
* Don't forget the garage! Make sure surfaces are clean and neat. Store tools and gardening products to make room for cars.
Whether you do the staging yourself or have your home fluffed by a professional, one Chicago-area expert confirms that homes that are staged often sell 75% faster and for 3%-6% higher than the asking price!
THE BUYING PROCESS
Working with buyers are a huge part of our business model and we're finding that the average home buyer doesn't know the basic systems and processes for buying a home. I thought it would be helpful to list the HIGH LEVEL steps normally taken during the buying process:
1) The buyer holds an initial consultation with a Realtor.
2) Buyer meets with a lender for Loan Qualification. Buyer obtains a prequalification letter.
3) Buyer meets with his/her Realtor to shop for a home.
4) Buyer finds the "ideal home" and writes an offer.
5) The offer is presented and is negotiated.
6) An "escrow" is opened.
7) Buyer submits a loan application.
8) Buyer completes inspections and approves of disclosures.
9) The loan is underwritten and the home is appraised.
10) Contingencies are removed.
11) All title documents are searched and reviewed.
12) The loan is approved.
13) Buyer obtains homeowners insurance.
14) Documents are signed.
15) Down payment is submitted and the loan is funded.
16) Title transfers.
There are certainly additional, more granular steps when buying, but the above process will give you a high level idea for process and flow.
1) The buyer holds an initial consultation with a Realtor.
2) Buyer meets with a lender for Loan Qualification. Buyer obtains a prequalification letter.
3) Buyer meets with his/her Realtor to shop for a home.
4) Buyer finds the "ideal home" and writes an offer.
5) The offer is presented and is negotiated.
6) An "escrow" is opened.
7) Buyer submits a loan application.
8) Buyer completes inspections and approves of disclosures.
9) The loan is underwritten and the home is appraised.
10) Contingencies are removed.
11) All title documents are searched and reviewed.
12) The loan is approved.
13) Buyer obtains homeowners insurance.
14) Documents are signed.
15) Down payment is submitted and the loan is funded.
16) Title transfers.
There are certainly additional, more granular steps when buying, but the above process will give you a high level idea for process and flow.
Blaine's Recipe of the Week - 5/14/07
Just in time for the BBQ season, here's is my absoutely favorite BBQ dish. Next time you're entertaining, break this recipe out and impress!
BBQ/Baked Hoisin-Glazed Baby Back Ribs with Coconut Curry Rice and Pineapple Wedges with Citrus Butter Glaze
The rib glaze:
1 cup hoisin sauce
½ cup honey
¼ cup red wine vinegar
4 tablespoons grated fresh ginger
3 tablespoon minced garlic
1 tablespoon sesame oil
3 teaspoons curry powder
To make the glaze: In a small saucepan over medium heat, combine the hoisin sauce, honey, vinegar, ginger, garlic, sesame oil, and curry powder. Bring to a simmer, stirring occasionally, and cook over low heat for 2 to 3 minutes to blend the flavors. Remove from the heat.
To make the ribs: Season the ribs liberally with kosher or sea salt and course black pepper. Grill over Indirect low heat, turning once halfway through grilling time. When the ribs have cooked for 1 hour, start basting them every 15 minutes with the hoisin glaze until the meat is very tender and has shrunk from the ends of the bones, 15 to 30 minutes more. Lastly, baste ribs heavily one final time and throw in the over at 225 degrees for 30 mins to half an hour for incredibly moist ribs. A few minutes before the ribs are finished, sprinkle them with the sesame seeds. Remove from the oven and cut between the bones. Serve warm.
The coconut curry rice:
1 cup Aborrio rice
½ onion
4 gloves garlic
2 tbsp sesame oil
½ cup coconut
1 cup heavy cream
1 large canister of chicken stock
Curry powder to preferred taste
Salt and pepper to taste
Butter
To make the rice: In sauce pan, set chicken stock to low. In separate large pot, sautee onion, garlic and rice in sesame oil until rice is golden. Reduce to medium and add coconut, heavy cream, curry to taste and a ladle full of chicken stock. As the rice begins to cook and the fluid evaporates, add additional ladles of chicken stock. Continues this process until rice is firmly cooked. At the end, add butter to taste to provide an incredibly creamy texture. End with salt and pepper to taste.
The pinapple glaze:
1 ripe pineapple
6 tablespoons unsalted butter
4 tablespoons lime juice
2 tablespoon light brown sugar
1/2 teaspoon vanilla extract
Pinch kosher salt
Malibu Rum to taste
To prepare the glaze: In a small saucepan, combine the glaze ingredients and place the pan over medium heat until the butter and sugar have melted, stirring occasionally.
To make pineapple: brush pinapple with glaze numerous times/several hours before. Once the ribs are done, throw the pinapple on the BBQ and grill for 6-9 minutes on high, turning every three minutes. When done, garnish the ribs/rice with pinapple, and drizzle remaining glaze on plate for show and unique taste with ribs.
BBQ/Baked Hoisin-Glazed Baby Back Ribs with Coconut Curry Rice and Pineapple Wedges with Citrus Butter Glaze
The rib glaze:
1 cup hoisin sauce
½ cup honey
¼ cup red wine vinegar
4 tablespoons grated fresh ginger
3 tablespoon minced garlic
1 tablespoon sesame oil
3 teaspoons curry powder
To make the glaze: In a small saucepan over medium heat, combine the hoisin sauce, honey, vinegar, ginger, garlic, sesame oil, and curry powder. Bring to a simmer, stirring occasionally, and cook over low heat for 2 to 3 minutes to blend the flavors. Remove from the heat.
To make the ribs: Season the ribs liberally with kosher or sea salt and course black pepper. Grill over Indirect low heat, turning once halfway through grilling time. When the ribs have cooked for 1 hour, start basting them every 15 minutes with the hoisin glaze until the meat is very tender and has shrunk from the ends of the bones, 15 to 30 minutes more. Lastly, baste ribs heavily one final time and throw in the over at 225 degrees for 30 mins to half an hour for incredibly moist ribs. A few minutes before the ribs are finished, sprinkle them with the sesame seeds. Remove from the oven and cut between the bones. Serve warm.
The coconut curry rice:
1 cup Aborrio rice
½ onion
4 gloves garlic
2 tbsp sesame oil
½ cup coconut
1 cup heavy cream
1 large canister of chicken stock
Curry powder to preferred taste
Salt and pepper to taste
Butter
To make the rice: In sauce pan, set chicken stock to low. In separate large pot, sautee onion, garlic and rice in sesame oil until rice is golden. Reduce to medium and add coconut, heavy cream, curry to taste and a ladle full of chicken stock. As the rice begins to cook and the fluid evaporates, add additional ladles of chicken stock. Continues this process until rice is firmly cooked. At the end, add butter to taste to provide an incredibly creamy texture. End with salt and pepper to taste.
The pinapple glaze:
1 ripe pineapple
6 tablespoons unsalted butter
4 tablespoons lime juice
2 tablespoon light brown sugar
1/2 teaspoon vanilla extract
Pinch kosher salt
Malibu Rum to taste
To prepare the glaze: In a small saucepan, combine the glaze ingredients and place the pan over medium heat until the butter and sugar have melted, stirring occasionally.
To make pineapple: brush pinapple with glaze numerous times/several hours before. Once the ribs are done, throw the pinapple on the BBQ and grill for 6-9 minutes on high, turning every three minutes. When done, garnish the ribs/rice with pinapple, and drizzle remaining glaze on plate for show and unique taste with ribs.
BUYING A NEIGHBORHOOD/COMMUNITY
When searching for a new home, don't forget one of the most important considerations: location, location, and location.
Because the neighborhood/community in which you live affects your life in many ways--including your children's education, travel time to and from conveniences and work, the level of comfort you feel with your surroundings, the future value of your home investment and many other factors--we suggest that you focus on a neighborhood/community before you search for a specific home.
Working through your Realtor, explore the personalities of the neighborhoods/communities in your price range, before narrowing your search down to individual homes. Take the time to research the schools, driving times, available conveniences, the social and professional make-up, value trends, etc. Be sure you choose to view homes only in neighborhoods that fit your personality and life style. This will ensure a happy end result!
Because the neighborhood/community in which you live affects your life in many ways--including your children's education, travel time to and from conveniences and work, the level of comfort you feel with your surroundings, the future value of your home investment and many other factors--we suggest that you focus on a neighborhood/community before you search for a specific home.
Working through your Realtor, explore the personalities of the neighborhoods/communities in your price range, before narrowing your search down to individual homes. Take the time to research the schools, driving times, available conveniences, the social and professional make-up, value trends, etc. Be sure you choose to view homes only in neighborhoods that fit your personality and life style. This will ensure a happy end result!
Home Inspection Thoughts
When buying a new home, please don't just accept the seller's word that the residence is in good condition and that it is free of problems. It is very possible defects exist that are less than obvious to an untrained eye and of which the seller is unaware. It is in the buyer's best interest to, at the buyer's expense, hire a professional home inspector.
In most locations, the seller is required to provide for the buyer a Disclosure Form that details the property's features. This form also notifies the purchaser of any defects in the home of which the seller has knowledge. The buyer should take the time to read this completed disclosure form carefully. If there are flaws indicated that he/she finds unacceptable, the seller should be asked to correct the problems. If the seller refuses to fulfill the buyer's request, the buyer should be under no further obligation to complete the transaction.
To discover hidden or less obvious defects, a buyer can hire a professional home inspector to scrutinize the property. These professionals are trained to examine a house in detail and to find any problems that may affect a home's value. To find a quality home inspector, simply ask your Realtor for a list of recommendations.
As a value added benefit for listing and selling your home with The Davidson Team, you will receive a FREE home inspection as a part of our services. Additionally, we also provide tips on how to gain the most out of the inspections.
The Importance of the Internet When Selling A Home
There is a direct correlation between the number of "lookers" a For Sale home attracts and its final selling price. More potential buyers viewing a home result in a larger net proceeds check for the seller.
If you are thinking of selling a home, to maximize your profits, list it with a real estate agent that has the ability to attract a large number of buyers. How do you know if an agent is a "buyer magnet?" One factor is the agent's sphere of influence; do they have a large database of past clients and prospective clients that they regularily stay in contact with? Another is an agent's marketing strategy. And there are many more...BUT in today's real estate world, the Internet plays a very pivotol role...and unfortunatley there are agents that currently are not utilizing this amazing tool for the benefit of their clients.
In the most recent studies from the National Association of Realtors, over 80% of all potential buyers begin their home search on the Internet. Websites, pay per click marketing, search engine optimization, blogs (to name a few) are quickly becoming the most powerful tools and channels an agent has for finding buyers.
When interviewing a listing agent, ask him/her to show you examples of his/her websites. Is the website well placed in the major search engines, is the site attractive in its presentation, is it easy for the customer to use, does it offer enough information to hold the customers interest and does it gather sufficient consumer information to allow the agent to follow-up?
Additionally, ask the agent to view a copy of their Marketing Plan (http://www.wenatcheehouses.com/marketing_plan.php). A Realtor may be using the Internet, but are they doing it in a effective and holistic manner, complimenting all marketing channels, branding strategies...and ultimately working in the best interest of the home seller?!?!
Find an agent who does these things and you are one step closer to maximizing your net profits
Have an outstanding week,
The Davidson Team - Blaine & Erin Davidson
Phone: 509-293-2214
E-mail: info@WenatcheeHouses.com
Website: http://www.wenatcheehouses.com/
If you are thinking of selling a home, to maximize your profits, list it with a real estate agent that has the ability to attract a large number of buyers. How do you know if an agent is a "buyer magnet?" One factor is the agent's sphere of influence; do they have a large database of past clients and prospective clients that they regularily stay in contact with? Another is an agent's marketing strategy. And there are many more...BUT in today's real estate world, the Internet plays a very pivotol role...and unfortunatley there are agents that currently are not utilizing this amazing tool for the benefit of their clients.
In the most recent studies from the National Association of Realtors, over 80% of all potential buyers begin their home search on the Internet. Websites, pay per click marketing, search engine optimization, blogs (to name a few) are quickly becoming the most powerful tools and channels an agent has for finding buyers.
When interviewing a listing agent, ask him/her to show you examples of his/her websites. Is the website well placed in the major search engines, is the site attractive in its presentation, is it easy for the customer to use, does it offer enough information to hold the customers interest and does it gather sufficient consumer information to allow the agent to follow-up?
Additionally, ask the agent to view a copy of their Marketing Plan (http://www.wenatcheehouses.com/marketing_plan.php). A Realtor may be using the Internet, but are they doing it in a effective and holistic manner, complimenting all marketing channels, branding strategies...and ultimately working in the best interest of the home seller?!?!
Find an agent who does these things and you are one step closer to maximizing your net profits
Have an outstanding week,
The Davidson Team - Blaine & Erin Davidson
Phone: 509-293-2214
E-mail: info@WenatcheeHouses.com
Website: http://www.wenatcheehouses.com/
OVERBUILDING IN A NEIGHBORHOOD
The old adage, "The three most important things to consider when buying a home are location, location and location" will always hold true. The value of an individual piece of property or home is usually dictated by its location. However, the surrounding area and neighboring homes play a major role in determining the value of an individual property as well.
If you are considering enlarging the size of an existing home, doing an expensive remodel or making costly improvements, please exercise care. When the time comes to sell, you may not be able to recapture your investment. If you overbuild or over improve for a neighborhood, with all of the surrounding homes having a lesser value, the value of your improvements will be reduced. The worst investment a homeowner can make is to have the best home in a neighborhood. The best home increases the value of neighboring properties. However, the surrounding, less valuable homes pull down the value of the over improved home. In essence, you are doing wonderful things for the neighbors but they are not returning the favor.
When considering improving or remodeling an in existing home, be sure the evaluate the entire situation and be sure your investment will be a good. Also, rather than investing in your current home, consider selling it and buying the home you desire in a neighborhood that justifies a larger, more prestigious residence.
If you are considering enlarging the size of an existing home, doing an expensive remodel or making costly improvements, please exercise care. When the time comes to sell, you may not be able to recapture your investment. If you overbuild or over improve for a neighborhood, with all of the surrounding homes having a lesser value, the value of your improvements will be reduced. The worst investment a homeowner can make is to have the best home in a neighborhood. The best home increases the value of neighboring properties. However, the surrounding, less valuable homes pull down the value of the over improved home. In essence, you are doing wonderful things for the neighbors but they are not returning the favor.
When considering improving or remodeling an in existing home, be sure the evaluate the entire situation and be sure your investment will be a good. Also, rather than investing in your current home, consider selling it and buying the home you desire in a neighborhood that justifies a larger, more prestigious residence.
Blaine's Recipe of the Week - 5/4/07
Being that it's the day before Cinco De Mayo, I thought it would be fun to share my favorite margarita...enjoy!
Blaine's Top Shelf Margarita On The Rocks
* 1.5-2 oz Patron Silver
* ¼ oz Cointreau
* Sweet & sour (or margarita mix, or straight fresh squeezed lime juice) to taste
* Splash of orange juice
* Top w/1/4 oz Grand Marnier
* Serve over the rocks with a rock salt lined glass.
Happy Cinco De Mayo!
Tips for Getting Pre-approved for a Mortgage
In a competitive market, getting mortgage pre-approval is essential. It gives you a great bargaining tool when you're negotiating with sellers. Regardless of the market situation, pre-approval is also handy because it means that before you even start house-hunting, you've got a good idea of what you can afford.
Pre-approval versus Pre-qualification
Pre-qualification and pre-approval are similar processes. Having pre-qualification means that you have a general idea of how much mortgage you can afford, but it's not guaranteed that you will get that amount when you apply for the mortgage. Pre-approval takes the process a step further than pre-qualification, because the lender will verify your employment, income, assets, debts, and credit history, and you will receive a letter stating that your mortgage is approved for a certain amount of money, usually with a limit of between 30 and 90 days. That means you know exactly how much you have to spend, and sellers know that you're a serious customer.
Pre-approval has another advantage in that it saves you time when it comes to closing on a property - you've already been through about 90% of the mortgage application process. If you have pre-approval it means that all you need to finalize the mortgage is a purchase contract and a property appraisal. Being able to close quickly is an advantage in a competitive market, and in a slow one it may help you negotiate a great deal on a property.
Note that if you are pre-approved for a mortgage, you must notify your lender immediately if your financial circumstances change between pre-approval and closing, as your pre-approval may be invalidated.
Increase Your Chances of Pre-approval
Pay Your Debts
Any debt that you can't pay in full within six months will be included as part of your monthly debt total. And the higher your debt total, the lower the chances you have of getting pre-approved - if your monthly debt total exceeds about 36% of your gross monthly income, getting pre-approval may be difficult.
Don't Create New Debt
Your pre-approval is subject to an evaluation of your finances. If you're thinking about buying a home then it's a wise move to refrain from making any large credit purchases. It's estimated that every $100 a month you pay on a credit card reduces your home loan eligibility by $10,000.
Preparation
When you're preparing to apply for a mortgage pre-approval, there is a wide variety of supporting documentation you'll need to locate and have ready for the application process. This includes tax returns, pay stubs, evidence of any other income, bank statements, and debt payment booklets or account statements.
What to Do If You Have Bad Credit
When assessing your credit, mortgage lenders typically pad most attention to your FICO score. Some lenders won't even consider offering a mortgage to anyone with a FICO score of less than 680. So what do you do if your credit isn't that good?
- Check your credit reports - obtain a copy of your FICO score and credit reports and check to make sure there are no errors.
- If you can manage a larger down-payment, it may help your chances of getting pre-approved.
- Sub-prime mortgage lenders offer mortgages for people with credit problems. They usually involve paying a higher interest rate, however it's possible to get a sub-prime mortgage and then refinance to a conventional loan with a lower interest rate after a couple of years of rebuilding credit.
GOOD TIME OR BAD TIME?
With all the "good news" and "bad news" that we see on in the media about today's economy, it is hard for the homeowner to decide if now is the time to buy and/or sell real estate. We are often asked, by homeowners who want to move up or move down to a different home, if now is the right time to sell and purchase.
The fact is, regardless of market conditions, if you want to purchase a "move-up" or "move-down" home, there is no wrong time to do so. If the market is extremely active, you will get a premium price for the home you are selling and the active market will demand that you also pay a premium price for the home you purchase. If the market is very slow, you will have to accept a reasonable price for your home but you will find less competition when purchasing your new home. You sell at a reduced price but you also purchase at a reduced price.
When selling a home to buy another, there is no bad timing. In a good market you sell and buy with inflated dollars. In a slow market you sell and buy with deflated dollars. You really don't gain or lose in either situation.
Now is a great time to buy and sell real estate.
Thought Provoking: 5/1/07
The great and glorious master-piece of man is how to live with a purpose. -Michel de Montaigne
Not long ago, a friend was in the final minutes of a flight into Chicago. Through the window, as the plane aligned with the runway, he saw thousands of commuters inching along, in bumper-to-bumper traffic. Each driver's goal was to just escape the city and return home from a hard day's work. No one, in that snarled mess of cars, could have been enjoying life at that moment in time.
It often amazes me the obstacles people are willing to overcome to accomplish a task. Why would anyone subject themselves to a lifestyle that requires so many hassles to get to and from work. The obvious answer is that they need their job to earn a living. I think the true motivation goes a lot deeper.
As a child, I used to spend hours watching ants working around an anthill. Each ant worked at its task with very definite purpose. If I put an obstacle into an ant's path, to disrupt its work, it would go into a complete frenzy until the obstacle had been removed. What is it about an ant that makes the completion of a task so important? What is it that drives nearly all living things to be task oriented? Why are most human activities, even our sports, based on the successful completion of a task? Could it be that life comes with an inborn need to have purpose, to have a reason to exist?
I believe the answer to this question is a definite "yes." The happiest people I know are the ones who have taken a task, worked hard to accomplish whatever it is the task required and then stood back to admire and appreciate the end result of their effort. There is a direct correlation between having purpose and being happy.
When we start our day tomorrow, what will our purpose be? Will we end the day having done nearly nothing and living with the resulting frenzy of negative emotions? Or, will we end the day feeling great because of all the things we've accomplished?
We are in control of our lives! We have the power to choose between being happy and just being. We can matter or just be matter. If we are uncomfortable with who we are, we have the power to change. By finding a purpose, finding a task and doing it well, we will experience happiness as we have never experienced it before. We are made to establish goals and to persist until they are reached. That is how we find out who we are. That is how we build a life.
We have a choice...we can't buy happiness but we do have the power to create it. If we find something we want to do and do it well, we will have improved self-esteem, self-acceptance, and happiness.
Have and oustanding week!
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