Real Estate Blog

Today I was contacted by a prospect to show her a specific property that was listed with one of the local discount real estate brokers.  I searched for this particular property in the Wenatchee MLS and it was not there, which means they listed it as an exclusive listing not to be shared with the rest of us agents.    I contacted the listing agent and he said I could indeed show the home, but the seller would not pay my service fee and I would have to add that into the offer.  This is why I don’t like working with the discount agencies.   It gives me no incentive to actually do what is best for the client.

But, being who I am, I did do what was best for the client.  I told her that the home is available but I would not be able to represent her on the transaction because I wouldn’t get paid, unless she was willing to pay me.  I knew this wasn’t an option because she is already on a very tight budget.    I was honest and told her I could not work for free. Not only am I not willing to work for free, but it doesn’t make sense to take on the liability of a transaction without the compensation to justify it.   My client understood, of course, and is NOT pursuing the purchase of that particular property. 

It is experiences like these that makes me wonder if sellers understand the disadvantages of working with a discount agency.    To be fair, I admit to have worked for one ofthese discount agencies (twice).  I like the concept and I think it’s great when (and if) I can save sellers money.  I’ve even been known to show people do a For Sale By Owner transaction if I think it best serves them! 

Anyway, when I was a listing agent at the discount agency I would prep my clients upfront that it’s important to get as much exposure as possible and price the home in such a way that they can pay a selling agent fee if necessary.    I never had anyone object to that approach.  The plus side is the home might actually sell without paying the extra selling side fee.  It’s certainly worth a try, BUT it’s also necessary to cooperate with the MLS agents to get maximum exposure.  This is part of the supply and demand of economics and actually creates more demand (and therefore higher value)  for any given property. 

The downside, then, of  listing with the discount agencies is that we "conventional" agents are suspicious that we won’t get paid for our efforts, so we don’t make any particular effort to sell those properties.    I don’t mean to insinuate that we purposely avoid working with these agencies listings… but, with our limited time, we do have to make choices and it only makes sense to make the choice to put our efforts where we think we will be compensated.    I admit it.  You’d do the same, I suspect.  The opposite approach to discounting the fee offered is to offer a bonus.  That certainly gets more positive attention. 

Carol@TopPropertiesWenatchee.com
http://TopPropertiesWenatchee.com

source: Working With Discount Real Estate Brokers

Below is a summary of the Wenatchee area home sales activity for the entire calendar year of 2005. 

The following summary includes:  Wenatchee & East Wenatchee (including Malaga and Rock Island)… Cashmere,  Leavenworth… with Peshastin and Monitor included as well.  This overall summary is of ALL homes sold, including mobiles (on leased land), manufactured (with land), condos and standard single family residences. 

Wenatchee / East Wenatchee homes sold
Total # Homes Sold:  1246
Average Selling Price:  $185,569
Average # Days on the market:  98

The least expensive homes were older mobile homes on leased land.    These homes fit well for people who are on a very limited income.  In many cases they can get a very comfortable home for much less than they would pay for rent.    Even though they don’t buy the land, it’s still a more financially attractive option to renting. 

 The overall price average doesn’t have any particular meaning, because it is an average of every single sale (high and low).    There were 58 homes sold under $100,000.   The most active price range was $125,000 - $200,000 with nearly an equal number of homes sold in the $125,000 - $150,000 range (182)  as the $150,000 - $175,000 (180).    

Cashmere area homes sold:
Total # Homes Sold:  77
Average Selling Price:  $187,412
Average Days on the Market:  94

Again the least expensive were mobiles on leased land, the least expensive of which were $12,000 & $14,000 located in the Dawn Lee Mobile Home Park on Kimber Road.    Otherwise, there was no concentration of sales in a particular price range.  Prices ranged from the low of $12,000 to a high of $475,000 for a home on Majeska Lane.

Leavenworth / Lake Wenatchee area homes sold:
Total # Homes Sold:  264
Average Selling Price:  $241,954
Average Days on the Market:  121

As with the Cashmere real estate market area, the Leavenworth and Lake Wenatchee real estate market areas did not have a concentration of sales in a specific price range… but were spread from a low of $10,000 to a high of 1,254,999.   

* * * * *
I hope you find this information interesting.   As always, it is deemed reliable based on my computer market research… but cannot be guaranteed.

If you want any specific information on past sales, or current listing available please call or e-mail me for additional info.
   Carol@TopPropertiesWenatchee.com
   www.TopPropertiesWenatchee.com 
   1-509-670-7840

Happy 2006 !
Carol Williams

source: Wenatchee Real Estate: 2005 Home Sales Summary

Since returning from Europe last week, I’ve noticed a bit of a slow down in the Wenatchee real estate frenzy… BUT there is still good activity on well priced listings.   We are not getting as many showings on each listing but there is still activity and qualified buyers shopping.  

As we move into the winter months people tend to have the impression there won’t be much buying activity.  This isn’t necessarily true.  There may be somewhat of a slowdown, but there is always buyer activity throughout the winter months.    I still have a consistent flow of inquiries through my website, which is an indication of general interest.   Interest rates are still very attractive, so that shouldn’t be a factor in slowing down sales of real estate in the Wenatchee Valley or North Central Washington.  According to studies, Wenatchee real estate is still a very affordable option compared to the rest of the country. 

If you do have a home to you are considering selling, winter is actually a pretty good time to list because there is generally less inventory, meaning less competition for buyers.   As we move into Spring, we always notice a surge in inventory creating more competition among home sellers… and more choices for buyers. 

If you’d like to know the value of your home, please contact me for a FREE Price Analysis:
   Carol@TopPropertiesWenatchee.com
   www.TopPropertiesWenatchee.com

source: Wenatchee Real Estate Activity

Rumor has it, there was quite a bit of discussion today over a new listing that was on the agent’s weekly home tour.  Without disclosing which home, let’s just say it was a common opinion that the home was underpriced by quite a bit.   I’m not insinuating the listing agent intentionally under-priced the home to get a quick sale but, in a situation as fast moving as the Wenatchee (and surrounding area) real estate market, it’s not always easy to price any given property.   

 This brings me to the point of my post… the importance of getting more than one opinion of value from experienced agents who are active in the market.   These "opinions of value" are known as "CMA’s" (Comparable Market Analysis).   To go along with the CMA, an agent should also offer a "CMO" (Complete Market Overview).   The CMO can spot overall  trends (not target price related) and help the agent and homeowners determine what might happen in the future of the local market. 

The general consensus, in soliciting a price opinion,  is to get three agents (preferably from three different companies) to do a CMA.   It is interesting to evaluate the comparables used by each agent and the compensating factors taken into consideration before coming up with a final list price.

That said, I also want to make a point of  offering caution to homeowners who think they should list with the agent who comes in with the highest price.    Some agents have been known to inflate their recommended price, thinking this will make them look better to the homeowners.   The value of a home has nothing to do with any agent’s opinion.   The purpose of the CMA is to determine the "market value" of the subject home.    The "market value" is the price an owner can realistically expect a buyer to pay (and an appraisal to support).    The agent is most likely not going to buy the home, so their opinion should only count for pricing consideration purposes, not for the purpose of actually selecting the listing agent.    If the agent does offer to buy the home, this could be a red flag that it IS underpriced. 

The listing agent should be selected based on their ability to market the property most effectively AND do the best job of representing the seller when it’s time to negotiate with a buyer and their agent.     A listing agent should also be selected based on the likelihood of  a good working relationship and open lines of communication with the homeowner.   The homeowner should not be intimidated by the agent, nor should the agent be intimidated by the homeowner.  

source: Wenatchee Home Price Opinions

Are building prices going sky high?  I’ve made a couple of previous posts about my concerns for what will happen with new home construction costs in the Wenatchee real estate market… and across the nation.  Here is a link to an article in Inman News that explains a little more about the overall situation.  Keep in mind, this was an article written after Hurrican Katrina but before Hurricane Rita (or whatever other Hurricane’s still come along this season), so the situation will only get worse.    The Inman article estimate on the projected percentage of cost increase in new construction is far lower than what I’ve been hearing.   On yesterday’s news, interviewed building suppliers were saying costs have increased as much as 30%!  We’re not just talking lumber, which is in such high demand, but many of the materials used in new construction (such as roofing) are oil based. 

This all could affect the rental market, as well, while people opt to continue to rent while waiting for construction prices to level out.   Will this affect people’s decision to sell their homes (to build a new home) because of the looming cost of new construction?   Will they sell their home (taking their huge equity) and become renters while the prices stabilize?  Will the renters decide to give up on their dream to own a home because it is too expensive?  Will there be even greater interest in existing home sales, where prices per square foot are far more attractive than new construction?     Remember Newton’s Third Law… "for every action there is an opposite and equal reaction".  

Our elected politicians will have a significant effect on the future of the housing market (and entire economy) across the country.  While they want to do the humane thing of promising to help rebuild, it creates a burden on other areas of the country, where the labor and supplies are being drawn from.    This causes a trickle out (dollars leaving) on the local economies, literally affecting everyone in every large city and small town across the United States. .. yes Wenatchee, too! 

We’re such an intertwined economy, there will be many actions and reactions, which will cause another reaction, causing another reaction and on and on and on.   Reminds me of  the old saying: "Oh what a tangled web we weave". 

source: Up, Up… and Away

Following is a Wenatchee real estate
(and surrounding areas)  market
sales activity summary…

Wenatchee / East Wenatchee / Malaga / Rock Island area:
   Residential single family:
          Sold: 101  
          Avg price: $221,829 
          Avg. days on market:  99
   
    Condos:
        Sold:  7
        Avg price:  $201,000
        Avg days on market:  160
        
  Manufactured Homes
       Sold:  14
       Avg price:  $91,108
       Avg days on market:  97
      
* * * * *
Cashmere area:
Residential single family:
          Sold: 11
          Avg price: $183,791  
         Avg. days on market:  113

Note:  If you’d like to compare to July’s market activity summary, click here.

source: August 2005 Home Sales

Here is a sign of the developing tangled economic web that Hurricane Katrina is weaving.  Last week I posted an article about my concern over the potential for dramatic increases in the cost of new construction, here and across the nation.  Yesterday I heard that some of the local (Wenatchee) box stores are restricting the amount of lumber an individual can buy.  I haven’t been to any of the stores to confirm this story, but certainly would not be surprised by this development.   I wonder if this is just for the at-home-handyman or if restricted sales include builders.  

In many ways our Wenatchee real estate market is unique and unaffected by other parts of the country… yet, in a situation like this, we are at the mercy of the law of supply and demand just like any other market area. 

source: Lumber Sales Being Restricted?