Real Estate Blog

Each Wednesday is the day we real estate agents have the opportunity to go out and look at the latest new listings on the market.    Yesterday, I saw a number of nice homes that were well priced and will probably sell quickly, but I also saw some homes that had no business being on tour.  Here are some samples:

Home #1  Grossly over-priced for the condition.  I’m talking about a home needing serious remodeling that was priced about $100,000 over market value for the condition.     The agent wasn’t even present at the Open house to tell us about the home or how she came up with the price.  Sad thing is, some agents will over-price a listing (to get the listing), knowing the sellers will eventually have to reduce.  This was a waste of my time to even go see and I will not waste my buyers time to show it. 
Solution: Price the home to sell based on realistic current market value.  The home is vacant and we’re going into winter. 

Home #2  The odor of animal urine hit us the second we walked in the door. 
Solution: The carpets had already been cleaned, but a commercial grade air purifier might do the trick.  If not, replace the carpeting. 

Home #3  Dark, dirty, very out-dated and over-priced for the condition.   
Solution: Open the blinds.  Clean the house.  Price it to sell in it’s present condition.

When preparing a home for sale, try to look at the home from the viewpoint of a buyer… not as the seller.

To search homes and land for sale in the Wenatchee, WA MLS, click here.
To contact Carol direct, e-mail her at: Carol@TopPropertiesWenatchee.com

source: Wenatchee Tour Of Homes For Agents

Last Thursday there was an article in the Wenatchee World, which was extracted from the Washington Post, that was outlining changing preferences among home buyers.  This article seems to reflect what is happening here in the Wenatchee Valley.    The bottom line is: bigger homes on smaller lots. 

While I was talking to a builder the other day, he indicated they can’t justify building small homes anymore because of the cost of land.  The cost per square foot of the home is too great in relation to total value. 

Here is just an example illustration of what I mean:

Scenario 1
Lot $65,000
1600 square foot home @ $125 per square foot = $200,000
Total cost $265,000  ($165 per square foot)

Land cost equals 25% of the total value

Scenario 2
Lot $65,000
2500 square foot home @ 125 per square foot = $312,500
Total cost  $377,500  ($151 per square foot)

Land cost equals 17% of the total value

The larger home is 8% less expensive (per square foot) than the smaller home.

Given a choice, the builders working on a profit margin, will opt for the higher value every time.   It’s more efficient for them to build one large home rather than two small ones for the profit generated. 

The problem with all of this is that it’s making it more and more difficult to find builders willing to construct the smaller, less expensive homes.   A solution, of course, is to find inexpensive land so the option of building smaller homes is more palatable to the builders.   This will, no doubt, require moving our affordable expansion sights to outlying areas (probably toward the Columbia Basin) with large quantities of less expensive land. 

For answers to your questions, contact:
Carol@TopPropertiesWenatchee.com

source: Smaller Lots, Bigger Homes

314 E. Ash * Waterville        Click on image to enlargeHere is some statistical info, revealing some real estate market trends comparing the first 9 months of this year with the first 9 months of 2005.  Statistics can be misleading (depending on various factors), so take it for what it is… interesting info, but not gospel.  This info is for detached single family residences.  Condos, manufactured homes on land, and mobile homes on leased land are not included in these figures.

Average sales price:

Wenatchee 2005:  $196,347
Wenatchee 2006:  $221,124  (up 13%)

East Wenatchee 2005: $199,110

East Wenatchee 2006: $234,642  (up 18%) 

The total number of homes sold in the Wenatchee and East Wenatchee areas so far in 2006 was up about 5% over the same time period for last year.  

Featured Value: 
The home pictured above is listed at $99,900 and one of the best values on the market today.  New kitchen cabinets, new range & dishwasher, new flooring and paint throughout, remodeled bathroom with claw-foot tub.  Available as an outright purchase or on Lease-To-0wn terms.

For answers to your specific real estate questions please contact:

Carol@TopPropertiesWenatchee.com

source: Wenatchee Housing Market Trends

At the risk of getting into hot water with the Leavenworth real estate agents, I am cautioning potential buyers to watch the market over the next few months before making a buying decision. 

There was an article in last night’s Wenatchee World newspaper about the upcoming closure of Longview Fibre’s Winton lumber mill 14 miles northwest of  Leavenworth.  According to the article, this will displace 100 workers.  How many of these displaced workers will need to sell their homes.  Will this increase the inventory of homes for sale enough to put downward pressure on prices.  Perhaps.  I will be watching the trend over the next few months. 

You can read the complete article here.  Stay tuned for future updates.

For answers to your specific real estate related questions contact:
Carol@TopPropertiesWenatchee.com 

Search homes for sale in the North Central Washington MLS
Get current news, info and trends on Wenatchee area real estate
Watch the progress of a new custom construction home

source: Caution - Watch Leavenworth Real Estate Values

I continue to see a trend toward more price reductions and homes coming back on the market as a result of pending sales failing to close.  I’m not certain what the reason is for these failed sales, but they are most likely for one of three reasons:

1) Buyer does not qualify for financing

2) Home does not pass inspections, or repairs are too costly

3) Homes does not appraise for the sale price

In order to reduce the risk of any of these happening to you, here are some suggestions:

1) As a seller, insist on seeing a letter of pre-qualification (or better yet, a pre-approval) for your prospective buyer before you sign the Purchase & Sale Agreement.   As a buyer, get pre-qualified before you ever go house shopping. 

2) As a seller, have a home inspection done before you put the home up for sale, so there are no surprises for you or the future buyer.  This will cost a few hundred dollars, but could save you considerable money and anquish later in the transaction.  With a positive home inspection, you can price your home, and negotiate a sale, with greater confidence.    As a buyer, if the seller did not provide the results of a home inspection, have one done as a condition of the sale.  It’s well worth the expense.

3) As a seller, have an accurate price analysis done by an experienced real estate agent, or an actual appraiser, so you are not misled as to the value of your home.   Most real estate agents will do a price analysis for FREE, with the hope of listing the property.  But, there is no obligation to list the property just because they do a price analysis (often referred to as a CMA).

If you have any specific questions about selling or buying a home contact:

Carol@TopPropertiesWenatchee.com

http://TopPropertiesWenatchee.com

http://www.CarolsWenatchee.com

source: Price Reductions & Failed Sales

Dozens of Lease-To-Own Homes Available LocallyJust imagine this sign sitting in front of every home listed for sale in the Multiple Listing Service, and even some of the For Sale By Owners.  If you are looking for a Lease/Purchase, also known as Rent-to-Own or Lease-To-Own… call me and I will probably be able to get a lease-to-own arranged for you! 

In order to qualify for our lease-to-own program, you must have verifiable income.  You are pre-qualified by income, not credit score.  If you need some time to get in a position to finance a home, this lease-to-own program may be for you. 

For details contact:
     Carol@TopPropertiesWenatchee.com

Search for homes at: http://TopPropertiesWenatchee.com

source: Lease To Own Homes

What is more difficult than putting a square peg in a round hole?  Being a first time home buyer in the Wenatchee Valley. 

It’s becoming so difficult to find homes for the, working class, first time homebuyers these days that I thought running a summary of all price ranges would be interesting.  As of tonight, of the 203 single family homes for sale in the greater Wenatchee and East Wenatchee areas, here is the breakdown by price range:

14 @ $18,900 - 99,999  (7 are mobiles on leased land)
 8 @ $100,000 - 124,999
 9 @ $125,000 - 149,900
25 @ $150,000 - 199,999
32 @ $200,000 - 249,999
40 @ $250,000 - 299,999
15 @ $300,000 - 349,999
11 @ $350,000 - 399,999
18 @ $400,000 - 499,999
13 @ $500,000 - 599,999
 6 @ $600,000 - 699,999
 3 @ $700,000 - 799,999
 3 @ $800,000 - 899,999
 3 @ $900,000 - 999,999
 3 @ 1,100,000 - 1,850,000

This is alarming and a very difficult situation for most first time homebuyers, with limited cash for a down payment.  Other than the mobile homes on leased land, ALL of the homes under $100,000 need considerable work.  Many of those in the $125,000 - $150,000 price range have similar problems.  Most of them, if not all, will not meet current financing requirements… meaning they will need to be sold to investors with all cash or purchased under some sort of re-hab financing option.  The mobile homes on lease land have financing challenges of their own. 

I have a large group of real estate investors truly itching to buy… BUT most, if not all, of these (under $125K) homes do not meet their buying criteria because they are in locations that do not appreciate at a rate equivalent to the market average.  

We used to see affordable condos come on the market now and then but they are becoming oh so rare too.  I’d sure love to see a new, affordable, condo development in the area… priced in the $125,000 - $150,000 range.   A lower price range would be even better.    It’s probably not going to happen, but one can always hope! 

For a custom search or for the answers to your real estate questions, contact:
Carol@TopPropertiesWenatchee.com 

Or, do your own search for homes and land in the Wenatchee MLS:
www.TopPropertiesWenatchee.com  

source: Some Alarming Numbers

This morning, while at Starbucks in East Wenatchee, I ran into a golfing friend of mine.  She was visiting with one of her neighbors who indicated he may be selling his home (in an up scale neighborhood) soon.  He said he could probably sell it himself and save money, but he would definitely be hiring a realtor.  WHY?  Because he felt, whatever it cost, it was worth it to have the layer of (legal and emotional) protection between him and the buyer

There are certainly other advantages to hiring a professional agent to sell a home, but this guy definitely gets it!

Do you have real estate questions? 
Ask Carol: Carol@TopPropertiesWenatchee.com

Want to search for homes and or land in the Wenatchee MLS? 
Visit: http://TopPropertiesWenatchee.com

source: Why Hire A Real Estate Agent?

If you’re one of those that truly believes your home should be your castle, here is a link to several castles that are for sale. 

See anything that interests you? 

Carol@TopPropertiesWenatchee.com

www.TopPropertiesWenatchee.com
www.CarolsWenatchee.com 

source: Is Your Home Your Castle?

There has been a lot of talk recently about an impending "housing bubble".  Here is a link to a blog dedicated exclusively to the topic of the housing bubble theory.  Today’s post gives a summary of various markets and what is happening with inventory and price reductions across the country. I am getting more notices, through our MLS communication system, alerting us of sales that have failed before closing, and of price reductions.  Is our market cooling a bit?

From my perspective, the affordable housing market in Wenatchee and the surrounding areas has cooled because there is, essentially, no inventory in the under $150,000 price range.  People shopping in this range cannot afford homes in the higher price ranges… so they’re not buying OR their financing is failing and the transactions are not closing.    There is demand.  There isn’t inventory in the "right" price range.  

For answers to specific real estate questions, contact:

Carol@TopPropertiesWenatchee.com

www.TopPropertiesWenatchee.com : Search homes and/or land for sale

www.CarolsWenatchee.com/wenatchee-realestate: Current news, info & trends

source: Is The Wenatchee Housing Market Cooling?