Real Estate Blog

In late September, I received the following e-mail from one of my clients, relocating from the westside of the state.  He is a home inspector and appraiser.  They’re having a new home built here and he’s very agressive about the energy efficiency of the home.   Now that the weather is turning, thought it would be good to share.  I asked for, and received, permission to share these comments with you:

source: Real Energy Saving Tips

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

I am often amazed at the global reach of this real estate blog.  Here is the text of an e-mail I received from a guy in Paris, France… asking me to post his article for you.  So, here it is:

"It has been very interesting to discover and to read your excellent real
estate blog.

The article:

"Paris, France real estate market – 2nd quarter 2006
Notary figures show mixed picture
October 2006

You will find much more information about the Paris real estate market in
the KHS report http://www.khs.fr/index2.cfm , which was presented at the
American Chamber in France in April 2006. It describes the market situation
on the romantic left bank ‘rive gauche’ and in the elegant western districts
around ‘avenue Montaigne’,  ‘avenue des Champs- Elysées’ and the 16th
arrondissement along the ‘bois de Boulogne” forest.
KHS, Paris / France
http://www.khs.fr/ "

For current information on the local, North Central Washington real estate market contact:

Carol@TopPropertiesWenatchee.com 

Or… do your own search of homes and land for sale at:

www.TopPropertiesWenatchee.com

source: Paris, France Real Estate Update

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?

I’ve been watching the "Flip That House" program on TV lately and find it interesting.  I am, however, quite bothered by the way they calculate "profit".  They have a very simple (and misleading) formula for calculating profit.  They take the difference between the final sales price and the original purchase price (plus the cost of renovation):  
   (Selling Price) - (Original Purchase Price + cost of renovation) = Profit.    WRONG!

What they have not plugged into the formula were the loan origin fees (to finance the purchase price) OR the selling costs involved to sell the house at the end.  Loan origination fees generally run from 1.5% - 3% (and up).   Selling costs will run about 8.5%, depending on the county and state.  When working with a real estate agent to sell the property, the fees are negotiable so there is some flexibility… but I’m trying to show you a realistic picture of buying and selling costs.  And, be sure if you’re getting a loan on a property you intend to "flip" (selling quickly), be sure you do NOT get a loan that has a pre-payment penalty.  These penalties can be substantial.

Anyway, let me show you a couple of scenarios from yesterday’s programs:

Home #1
Purchase Price   $152,000
Cost of renovation  58,000

Total cost of acquisition:  $210,000
Sales Price $315,000
Reported profit:  $105,000   WRONG!

Reality:
Purchase Price  $152,000
Cost of renovation  58,000
Finance fees @ 1.5% on 80% LTV   $1,824
Total cost of acquisition   $211,824

Sales Price  $315,000

Less 8.5% selling costs: $26,775
Net Sales Value:  $288,225 (less original cost of $211,824)
Actual profit:  $76,401

* * * * *

Home #2:  This one is very alarming when you look at the bottom line!
Purchase Price   $1,050,000
Cost of renovation  85,000

Total cost of acquisition:  $1,135,000
Sales Price $1,249,000
Reported profit:  $114,000   WRONG!

Reality:
Purchase Price  $1,050,000
Cost of renovation  85,000
Finance fees @ 1.5% on 80% LTV   $15,750
Total cost of acquisition   $1,150,750

Sales Price  $1,249,000

Less 8.5% selling costs: $106,165
Net Sales Value:  $1,142,835  (less original cost of $1,150,750)
Actual profit:  <$7915>   NET LOSS

Do you see the point I’m trying to make here.  When you are calculating profit, please be sure to include ALL costs of acquisition and ALL costs of selling.    It’s critical to the actual bottom line.

For answers to your real estate questions, please contact:
Carol@TopPropertiesWenatchee.com
www.TopPropertiesWenatchee.com

source: Profit From Flipping Houses

A beautiful new listing has just come on the market… 100 feet of Columbia River Waterfront property near East Wenatchee, with a contemporary 3200 square foot home, boat dock and riverfront prestige and lifestyle.  Listed at: $899,900.   For complete listing details and to schedule a preview of this beautiful Lake Entiat waterfront home, contact:

   Carol@TopPropertiesWenatchee.com

Search all homes and land for sale in North Central Washington

source: Columbia River Waterfront

Here is an excerpt from the Bankrate website about what’s happening with home mortgage interest rates:
"Rate: 6.49 percent (30-year fixed) Average points: 0.36
Mortgage rates rose a tiny amount after falling five weeks in a row. Rates didn’t move much because there has been little economic news of note in the past two weeks. That is set to change later in the week, with the second-quarter GDP report coming Wednesday and the August employment report arriving Friday. The bond markets will scrutinize the employment report for signs that the economy is weakening or that it is unexpectedly strong. The average 30-year fixed rate rose to 6.49 percent from 6.48 percent. The average 15-year fixed, which is a popular option for refinancing, rose 1 basis point, to 6.2 percent. A basis point is one-hundredth of a percentage point. On bigger loans, the average jumbo 30-year fell to 6.73 percent from 6.74 percent. Adjustable-rate mortgages fell. The popular 5/1 ARM dropped 2 basis points to 6.22, while the one-year ARM slipped 2 basis points to 5.98 percent".

I like Bankrate as a source of current information on mortgage rates, but they also have articles on just about anything involving money.  Bankrate.com is only one source of information and it’s good to shop, but this is definitely a site worth bookmarking and checking in on occasionally.  From a customer service point of view, I almost always prefer to have my clients work with a local Wenatchee area lender (versus internet lender).  In my experience, the rates are competitive… and transactions generally close faster and smoother.

For answers to your real estate questions contact:

Carol@TopPropertiesWenatchee.com

Search for homes and land for sale in East Wenatchee, Wenatchee, Cashmere, Rock Island, Malaga, Entiat, Waterville, and Leavenworth.

Stay current with real estate news, info, and trends in the Wenatchee area

source: The State of Mortgage Rates