Real Estate Blog

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source: Free Real Estate Investment Seminar

The other day I received an e-mail asking what the taxes are for a specific property.  This was from someone (approaching retirement) who now lives in an area where taxes have skyrocketed.  He was annoyed that his taxes have increased so much and wanted to move to an area with lower taxes.

The thing you need to know about property taxes is the actual "tax rate" probably doesn’t change that much over time.  What increases taxes is the escalating values, making the total tax bill higher.  I don’t know what the property tax rate in King county is (for example), but I would guess our rates in Chelan and Douglas counties are a little higher, yet our taxes are lower.  The reason for that is the total tax is based on value.  Our values are considerably less than King county so, therefore, our property taxes are actually lower… despite a higher base rate.

A typical tax rate of 1.25% (of assessed value) in this area would create a total tax of $2,500 on a $200,000 home.  This $200,000 home may be $400,000 in King county, thereby creating a much higher tax bill.  As the baby boomers are moving here to build or buy their retirement home, my advice to them is "Build or buy the home you want and need, but don’t make it any bigger (or more expensive) than you really need it".   If you pay $200,000 for a home that increases in value 15%, your new tax bill will be around $2875 (up from $2500).  If you pay $300,000 your current tax bill will be around $3,750 and your future tax bill (at the 15% appreciation rate) will be $4,125.   Do you see the point I’m trying to make here?

The up side of buying a higher priced home is that appreciating values are generally on a percentage basis. 15% of $300,000 is $45,000 whereas 15% of $200,000 is only $30,000.   You’ve made an extra $15,000 (on paper anyway).  Looking at it in that light, in an escalating market, it is good to buy the most expensive home you can afford.  However, once the appreciation rate flattens out, you’re stuck with higher taxes. 

Theoretically, you would think the local governing agencies, setting the property tax rates, would be able to lower the rate as values increase.  This isn’t likely to happen, so weigh the pros and cons and make an informed decision based on YOUR goals and budget.

For answers to your real estate questions, contact:

Carol@TopPropertiesWenatchee.com

Search the entire Wenatchee MLS for homes and land

source: Wenatchee Property Tax Rates

I recently received an e-mail with the following question:

"I’m researching new construction in Wenatchee, looking for 4 bdrm home around 1800-2100 sq. ft. What builders and communities are you aware of in this range?  It is hard to find builders, prices, floorplans and neighborhoods on the internet."

My reply went something like this:

What budget are you working with? New construction in the Wenatchee area currently runs from about $125 - $175 per square foot (and up), depending on quality of construction, upgrade package,  lot size & location. Most of the 4 bedroom homes have more square footage than you indicated being interested in, but there are certainly floor plans to accommodate your inquiry.   I have contact with builders in all price ranges and can heartily recommend some and consider others to need more "supervision" during the project.  Please let me know how I can help".  

Carol@TopPropertiesWenatchee.com  
Search local, state or national listings

source: Wenatchee Builders, Prices, Floor Plans

I’m seeing a flurry of price reductions through the Wenatchee MLS during the last week.  Could the market be changing a bit? 

For the latest info and trends, contact:

Carol@TopPropertiesWenatchee.com

Search the local North Central Washington MLS for homes and land for sale

source: Price Reductions

Yesterday I posted a link to the limited inventory of homes in the under 100,000 and 100K-125K prices ranges.  Here is a link to what’s showing on today’s inventory of mobiles homes on lease land.  I received a comment from one of my readers that he’s had two friends seek employment in other parts of the state because they couldn’t afford to buy a home here. 

Most people prefer to buy a home with land included but, with a limited budget, a home on leased land is actually not a bad option.  When you consider your buying power, you can get a much nicer home (for less money) on leased land than one that includes the real estate, and it beats paying rent (which just means you’re paying your landlord’s mortgage instead of your own).

Let me give you a potentially new perspective on the benefits of buying a home on leased land.  It’s very difficult to find a decent home (one you’d want to live in) for under $150,000 in our current market.  For $60,000 you can get quite a nice home on leased land.  That creates a $90,000 price differencial.   If you make a lot lease payment of $325 (example), you could pay for over 23 years and still be ahead.   Remember, the lot lease generally includes water, sewer and (sometimes) garbage so your net cost is actually less.  Plus, your taxes are less because you are not paying for the value of the real estate.  You are only paying on the lower value of the mobile home.   Between taxes and utilities you would probably save around $100 per month, so your net land lease cost is $225.  That’s 33 years of payments for the $90,000 price differential.  

I realize, of course, the lot lease will increase over the years (affecting the numbers) but do you see my point on all of this?    If you’re on a limited budget but still want a home you can be proud to live in… consider a manufactured home on leased land. 

For a custom consultation and the most current info, please contact:

Carol@TopPropertiesWenatchee.com 
For current pictures and info about the Wenatchee area

source: Benefits of Buying a Mobile Home on Lease Land

As the 2006 Tour of Homes gets underway, and the builders flaunt their showcase homes, I got to wondering what the total current inventory of "affordable" homes looks like.   Affordable is an arbitrary term, of course,  but I searched for homes under $100,000 and found only 6 total.  These are single family residences, excluding mobile homes on leased land.  Adding those (mobiles) to the mix the total went up to 20.   Because there were so few in the under 100,000 price range, I searched homes in the $100,000 - $125,000 price range and there were 12.  All searches were done for the Wenatchee, and East Wenatchee areas and did not include homes for sale in Cashmere, Leavenworth, Chelan or other outlying areas.

With home sales in the Wenatchee area remaining brisk, it is becoming more and more difficult to find affordable homes to buy.  To add to the frustration for those on a limited budget, our anticipated appreciation of 16% for the next 12 months will make buying a home even more difficult as time goes by.  So, if you’re thinking about buying a home… sooner is better than later!

If you’d like a free consultation or customized search in a specific location and price range, please contact:

Carol@TopPropertiesWenatchee.com

Stay Current with homes for sale in the Wenatchee area

Current Wenatchee area pictures, news, info and trends

source: Are There Any Affordable Homes In Wenatchee?

Tonight’s Wenatchee World newspaper reported that the property owner of 28 acres above the Highlander Golf Course in East Wenatchee has been denied a rezone for a 12 parcel development.  Current Growth Management regulations require a minimum lot size of 5 acres, computing t 5 building lots for a 28 acre parcel.  The owner had requested a rezone to allow for 12 building lots.

The planning officials cited slope and soil stability issues as reasons for the denial.  For more information go to the Wenatchee world online version of the article.  Here is a link to the article from two days prior.

Carol@TopPropertiesWenatchee.com

Search for homes and/or land in the Wenatchee Valley

source: Development Rezone Denied in East Wenatchee