Real Estate Blog

Today was the Wenatchee real estate agent’s new listings tour day again… as is every Wednesday.   We’re definitely seeing a typical Spring surge in new listings, in all price ranges.    If you, or anyone you know, is considering selling I recommend getting your property on the market before the competition gets too fierce.    There are buyers waiting for new inventory to come on the market after winter so it is a good time to sell. 

On the other hand, local economic factors for the Wenatchee area indicate the real estate market should remain strong so, if you prefer to wait a few months to prepare your home for sale, the selling atmosphere should remain positive.   

According to Bankrate.com today, the current interest rate on a fixed 30-year interest rate is 5.89%.  Of course, many factors will determine the actual interest rate any given buyer can obtain.  And, there are dozens (even hundreds) of loan programs so quoting a daily rate is for general informational purposes only. 

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

source: Wenatchee - Spring Listings

Although I’m still officially on vacation, I did a quick foreclosure search today.  Here is a summary of current foreclosure inventory in the Wenatchee & North Central Washington area: 
  Wenatchee: 3 foreclosures, 3 pre-foreclosures
   East Wenatchee: 1 foreclosure, 1 pre-foreclosure
   Chelan:  1 foreclosure, 1 pre-foreclosure, 1 bankruptcy
   Leavenworth: 1 foreclosure, 1 pre-foreclosure

I don’t send out daily updates, but if you want a list of foreclosures at any given time, please let me know and I’ll do a current customized search for you.  I can do local, state, or nationwide searches. 

Carol@TopPropertiesWenatchee.com
http://TopPropertiesWenatchee.com
http://www.CarolsWenatchee.com
http://www.RealEstateSuccess.blogspot.com

source: Wenatchee Foreclosures

The other day, while driving, I heard an alarming ad on the radio.  The dialogue went something like this:
Male Voice #1:  This is the "happiest time of the year".
Male Voice #2:  What do you mean?  The holidays are over.

Male Voice #1: Yes, but I have all my credit card debt paid off.
Male Voice #2:  Wow… that is a happy thought.  How did you do that so fast?
Male Voice #1:  I refinanced my house and paid them all off immediately.

Then the ad goes on to tout how easy it is to refinance with Blah Blah Blah Mortgage Company.

* * * * * *

Oh my gosh!  Does anyone else see what’s wrong with this picture?  This company is trying to make us think they are helping us pay off our card debt, when all we would be doing is refinancing them.    Under a typical fixed rate mortgage, we’d be creating a 30 year debt instead of a short term debt.   The only good thing about it is that mortgage interest rates are lower than almost any credit card. But, the only way it’s going to be an overall advantage is by paying enough extra on the mortgage payment to bring down the principal in the short term.

Carol@TopPropertiesWenatchee.com
Search Properties on my primary website

source: A Scary Trend

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

Yesterday I posted a 2005 summary of all  home sales in the Wenatchee Valley area.   This morning I began wondering about the current availability of foreclosure homes, so I  did a new search.  My search revealed only 3 foreclosure properties available in all of Chelan County.  There was one each in Leavenworth, Chelan, and Wenatchee.  When I searched Douglas County I found zero foreclosure properties currently available for sale.   

Overall, the foreclosure home listing inventory is down.  It will be interesting to watch this trend during the coming year.  I will post periodic updates for you.  If you’d like a customized foreclosure home search done for you, let me know.  I can prepare a list of any zip code, city, county or state in the United States. 

Carol

Carol@TopPropertiesWenatchee.com
www.TopPropertiesWenatchee.com

source: Wenatchee Foreclosure Homes

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

Here is some information out of a recent National Association of Realtor’s    press release regarding the home sales market, and predictions for value increases in 2006:
* * * * *
WASHINGTON (December 12, 2005) – "The housing market for 2005 is headed for a fifth consecutive annual record, and sales activity in 2006 is expected to be the second best year in history, according to the National Association of Realtors^®.

The 30-year fixed-rate mortgage should trend up modestly and reach 6.6 percent during the second half of 2006.  Existing-home sales, expected to rise 4.7 percent to 7.10 million this year, are likely to decline 3.7 percent in 2006 to 6.84 million. New-home sales, projected to increase 7.0 percent to 1.29 million this year, are forecast to drop 4.8 percent to 1.23 million in 2006 – also the second best on record. Total housing starts for 2005 should grow 5.8 percent to 2.06 million units, the highest since 1972, and then decline 4.8 percent to 1.92 million next year.

NAR President Thomas M. Stevens from Vienna, Va., said that housing has always been the soundest investment for most families. “As the old saying goes, homeownership beats the heck out of a drawer full of rent receipts,” said Stevens, senior vice president of NRT Inc. According to the Federal Reserve Survey of Consumer Finances, the median net wealth of a homeowner household is 36 times higher than a renter household.

Stevens said that the national median home price has never declined since good recordkeeping began in 1968. “Although there can always be a temporary decline in a given area if jobs are weak and there is an oversupply of homes on the market, people who stay in their homes for a normal period of homeownership generally see healthy returns over time. There are no guarantees, but there are very good odds.”

The national median existing-home price for all housing types, which is experiencing a surge estimated at 12.7 percent to $208,800 for 2005, is expected to rise another 6.1 percent in 2006 to $221,400. The median new-home price is likely to rise 5.5 percent to $233,100 in 2005, and then grow by 7.3 percent next year to $250,100 as higher construction costs impact the market."
* * * * *
Overall, 2006 is predicted to be a very good year for home sales, yet not as good as 2005.   Without much doubt, interest rates will increase (moderately) and forecasts continue to support rising values, but at a slower pace than this year.   Some markets will experience  less growth than predicted and some will experience more growth than predicted.  These are all averages and each region and local market varies with economic conditions.    It’s important to work with a real estate professional to constantly keep you informed of current local information… and to explain the pros and cons of any transaction for your specific circumstances.

Carol@TopPropertiesWenatchee.com
www.TopPropertiesWenatchee.com

source: Strong Housing Market Predicted for 2006

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

Wenatchee / East Wenatchee / Malaga / Rock Island area:
   Residential single family:
          Sold: 62  
          Avg price: $243,257 
          Avg. days on market:  20
   
    Condos:
        Sold:  4
        Avg price:  $190,475
        Avg days on market:  14
        
  Manufactured Homes
       Sold:  11
       Avg price:  $118,555
       Avg days on market:  20
      
* * * * *
Cashmere area:
Residential single family:
          Sold: 4
          Avg price: $178,725  
         Avg. days on market:  11

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

source: September 2005 Wenatchee Home Sales

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