Posts filed under '• Real Estate'
Vashon Island Real Estate: Building Green Homes
Join the Green Movement by Building Eco-Friendly Homes
Going green is the best route to take today. With the environment getting much attention these days, there’s no way to go but go green. Thanks to concerned non-profit international organizations that strongly advocate the preservation of the ecosystem, many people are now made aware of their responsibilities for saving our Mother Earth.
It’s great to know that various segments of society are indeed exerting efforts to use and recycle environment friendly materials. Homeowners are recycling wastes, companies are using recycled products to promote their businesses, car owners are making biofuel to run their vehicles and automakers are making electric cars and other eco friendly vehicles. The construction sector has joined in and several companies such as Mountain Creation in Pennsylvania are building wood cabins and log homes for people who want to go totally green to save the Earth.
Eco friendly wood homes compared to the regular homes have little impact on the environment and humans as well. They are constructed in such a way that they use energy, water and other resources in a very efficient manner thereby reducing waste and pollution and protecting the health of occupants. In other words, their overall design, operation, maintenance and construction support the green building process.
Green building promotes the use of environment friendly resources in constructing residential structures considered to be an affordable approach for both home builders and homeowners. In the United States, the U.S. Green Building Council (USGBC) leads in setting the standards for designing, constructing and operating eco friendly buildings. The council is, in fact, responsible for creating the Leadership in Energy and Environmental Design or what is popularly known as the LEED rating system.
In building homes, using wood and logs is not only practical but is also beneficial to the environment. Most logs such as those from cedar can be obtained from natural resources. They are renewable resources in that they can be replanted again and again after being cut for use in building homes. These trees can be found locally and need not be transported from other states resulting in lower costs.
Apart from their renewable properties, wood can also be recycled. Unused logs can be used again to build other homes or used as firewood. Since nothing is wasted, the environment benefits a lot from them.
A big advantage of wood homes and log cabins is that they don’t pose any health hazard to occupants. This is because wood used for construction are very natural. They do not need any kind of processing with the use of harmful chemicals.
Still another benefit is the big savings homeowners of eco friendly homes can gain. They can save a lot on their energy, heating as well as cooling bills. The reason behind this is that wood homes provide a family’s much desired comfort all year round regardless of the weather outside. Wood is capable of absorbing heat during the summer and releasing heat during the winter season.
Keep in mind that a beautiful home does not necessarily have to be made from concrete. A wood home or log cabin can be anybody’s dream house because aside from its natural beauty, the benefits it can give you and your family are incomparable.
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Mountain Creations Log Homes, located just north of Pittsburgh, PA, can help you install various green technologies in your log cabin before you start building or after your home is completed. Mountain Creations can help you design your log cabin by incorporating natural sunlight and other energy-efficient design elements into your blueprints. Article Source: http://EzineArticles.com/?expert=Katrina_Fillmore |
Add comment March 13, 2009
Vashon Island Real Estate: Investing in Vashon Island Property – Hard Money Loans
Real Estate Investing is better today than it has ever been. Imagine getting a property for less than half of what it was valued at 10 months ago. The problem is getting the cash to close the properties. That is why investors have and always will rely upon hard money loans to get real estate deals done.
A hard money loan is a loan based on the after repair value of the property. The loan is not based on the actual credit worthiness of the borrower. If the deal is good enough, you can potentially get a real estate deal done with no money out of pocket.
When you are working with a short sale or bank owned property, you must present a proof of funds letter. Proof of funds shows your ability to actually close on the property if the bank agrees to the price. Hard money lenders are able to provide you proof of funds letters to allow your deals to get negotiated.
Now the rates are not the lowest rates available for real estate purchases. A typical hard money loan will require you to pay 5 points upfront and pay back the money borrowed at a rate of 15%. The 5 points means you pay 5% of the total loan at the time you borrow the money. For example: a $100,000 loan would require you put down $5,000. This typically is the amount of money that the actual lender will make on the loan as the servicer of the loan.
The lack of credit available for real estate in today’s credit crunch makes hard money loans even more sensible. Yes, the rate is high as well as the points. If you are going to make money on the deal, then it is worth it to pay the money.
The lenders will also allow you to borrow the money for the repairs in many cases. The total amount of money that they will generally let you borrow is 65% of the ARV after repair value. So if the property is worth $100,000 and you get the property for $50,000, you have $15,000 worth of room to get the project done. That is not that much an you will probably need to get the seller to come down on the price, or use your own money to get the projects done.
I have used hard money to get deals done for the past 6 years. I also have worked for a hard money lender allowing me to see the business from both sides. I have used my contacts to put together the most comprehensive list of hard money lenders nationally. Go to Local Hard Money and get the best local lenders to fund your deals.
If for no other reason, you need to at least have the option of using hard money lenders to close your real estate deals. The more exit strategies you have available, the more money you will make in real estate investing.
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Article Source: http://EzineArticles.com/?expert=Doug_Powell |
Add comment March 6, 2009
Vashon Island Real Estate: For Sale By Owners?
Go! Real Estate offers a program to assist owners who wish to try their hand at selling their properties by themselves. The “For Sale by Owner” or “FSBO” alternative is superficially attractive because it may help an owner save money on commissions. However, the following article demonstrates the hidden dangers of going it alone. For more information about Go! Real Estate FSBO assistance program and the way it can save you significant money, contact us at (206) 388-3882.
People give several reasons for trying to do a For Sale By Owner (FSBO) on their property. The reasons are really as varied as the people doing it. In most cases, however, all those “reasons” boil down to one thing, the commission to an agent. It’s all over the Internet as well. Tons of posts on how to Sell it Yourself and SAVE the Commission. Simply type in FSBO tips, or FSBO how to and see the list. Here’s the real truth and why it’s a Big FSBO Lie; whether you sell it yourself or you list with an agent, you will rarely, if ever, save the commission.
Wow, I bet you’re saying, “harsh words.” Especially if you are, or are considering, selling FSBO. This article is not about whether it’s a good idea to sell a home yourself or not. If you are planning on trying, you need to do it for the right reasons. If it’s because you think you can save the commission, read on.
First, determine where you read that you can save the commission by selling it yourself. Most FSBO articles are written by one of two groups of people. The first group is the FSBO websites and magazines. Of course they are going to be saying that. They make money off of you, as a FSBO (by the way, there went some of that ’savings’). Tack on their Premium Flat-Fee Listing Service for listing on the MLS that many offer and you’ve lost some more of that savings.
The second group of people that promote this are real estate investors that have the “We Buy Houses” systems in place. Real estate investors buy property at a discount and resell. Their primary source of properties? You guessed it, FSBO’s. Now, if you need to sell fast and are in a position to do so, this may be an excellent option, but don’t pretend that you’re saving the commission, here. Any money that would have been paid as a commission is going into the investor’s pocket, not yours.
Second, you have to determine your marketing costs to advertise your property effectively. Selling a house is just not as easy as buying one of those nice red and white “For Sale By Owner” yard signs and waiting on the phone to ring. You have to do some serious marketing in order to give yourself the best chance of getting a qualified buyer in the door. All that marketing, and marketing dollars, are usually spent by the agent. That’s part of the commission cost. If you don’t hire an agent, then you have to foot that bill. At a minimum, you can expect to spend approximately $1000 to $2000 dollars on advertising a property. Nudge a little more off that savings, again.
Third, you have to determine the value of YOUR time. Almost no one considers this aspect of FSBO. It is going to take a lot of your personal time to sell your home. Answering phone calls, showing the home, updating information on the Web, qualifying buyers are just a small sampling of what you will be responsible for when selling on your own. If you spend just 60 hours total working on selling your home, at $50 an hour, you’ve racked up a $3000 charge to yourself. It will probably be a lot more than 60 hours, too. You may be fine with that, but you’re going to EARN that $3K, not save it!
Fourth, you have to know who really pays the commission. What? you say. The seller pays the commission, everybody knows that! Do they now? Sure, the commission comes out of the seller’s proceeds (ie, the sales price), but where does that money come from? The buyer. Without a buyer, there is no sale. Without a sale, there is no commission. Simple comparison: if I’m pumping gas and I give you $10 to pay the cashier, who actually paid the cashier? (Credit to John Locke for the analogy)
Buyers looking at FSBO’s know this and if you have any chance of selling to them, you’re going to have to reduce the price of your house by the commission amount in order for them to buy. Now, it’s the buyer that is saving the commission, not you, the seller. Add in your time and marketing expense to this and it’s a good chance that you may even have lost money in the process.
If you want to sell FSBO, give it a try. I hope you succeed. But don’t fall into the lie that you’ll save the commission by selling it yourself.
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As a Realtor, I can help you find your dream home or sell your existing property. My experience as a real estate investor gives me more insight than most agents on what it really takes to sell a home, in any market and in any condition. Contact me today to get that property SOLD. Phone: 828-568-2121 ext 310 or Email at rogerajohnson@century21.com Investors/Landlords, you need an agent that not only knows the real estate market, but HOW your business works as well. My experience puts me above the crowd as your agent. I can not only show your properties that fit your search criteria but I also can help you in your rehab estimates and ideas on what to repair, or not. I also have a strong pipeline of contractors, handymen and professionals that can help your business grow. Specialties For more information, visit: http://www.RogerAJohnson.com Article Source: http://EzineArticles.com/?expert=Roger_Johnson |
Add comment February 19, 2009
Vashon Island Real Estate: BIG Price Reduction on Gorgeous Vashon View Home For Sale
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Add comment February 5, 2009
Vashon Island Real Estate: Hot Tips for Sellers in a Down Market
No matter whether the real estate market is going up or down, there are some things you can do to almost guarantee that your home will sell faster, easier and for a little more money than compared to a similar house in the same street.
However there are some big real estate selling mistakes that many home owners overlook that could affect their ability to sell their properties. Let’s look at some of the biggest real estate selling mistakes home owners make.
1. Poor Condition
Selling real estate that is in poor condition will mean an instant reduction in the potential price you could have set for the sale. Trying to market a home that is in poor condition or a home that has obvious maintenance issues that have been ignored is a sure way to put off many potential buyers.
People will automatically assume that if a house has any minor maintenance issues showing, then there must be bigger maintenance issues beneath the surface. Take some time to complete any repairs or maintenance on the home.
2. Real Estate Staging
Selling real estate is about trying to attract potential new buyers into thinking a property is the right place for them to raise a family and build their own memories. Most people who sell their homes overlook the importance of real estate staging prior to a showing. Giving your house a quick wipe over with a cleaning cloth and putting the dishes away is not enough.
Buying a home is an emotional purchase for most people. Buyers want to walk into a home and feel good. They want to imagine how their own furniture will look in each room and how their own decorations will brighten up each room.
Taking some time to freshen up paint with a light, neutral color and then removing all your personal finishing touches, such as your family photos, kid’s toys and some ornaments will make each room in your home look more spacious and more open. If you have big bulky furniture, either re-arrange it so each room appears bigger or borrow smaller furniture from friends and family.
3. Street Appeal
People selling real estate often overlook the importance of street appeal. Many home owners spend a lot of time fixing smaller maintenance issues within the home, but only take a moment to run a lawn mower over the yards.
Potential buyers want to be able to drive up to the front of a house and immediately feel that the home is appealing and attractive. Overgrown trees and shrubs obscure the house from the street. Prune them back or cut them down. Open up the yard with border plantings to make the land plot seem bigger than it really is from the street.
Selling real estate is all about appealing to buyers in such a way that they feel comfortable paying money for your property even when other properties might not be selling. An inexperienced agent may tell you to reduce your price, but the reality is people who sell real estate can actually increase their price if they’re willing to put in some work to appeal to potential buyer’s emotions.
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RogerV is CEO of BuyingRealEstate.ME . Visit http://BuyingRealEstate.ME for free reports on selling your home, getting more money for selling your home and much more. Article Source: http://EzineArticles.com/?expert=Roger_V |
Go! Vashon Real Estate offers comprehensive services in home staging, photography and photographic editing to distinguish the appeal of your home on the market. Give us a call at (206) 388-3882 today to discuss how an small investment in improving the appearance of your home can reap a greater sale price and quicker sales!
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Add comment January 28, 2009
Vashon Island Real Estate: Should You Buy a Home in ‘09?
The housing market and general economy is still falling, yet the National Association of Estate Agents (NAEA) has reported that in December 2008 there was a slight increase in activity with potential buyers and sellers tempted into the market, possibly by successive interest rates. There was a rise in both those looking to buy a house and the number of new properties that came on the market. First time buyers, having been priced out of the market for so long, bought 10.8% of the properties sold. In addition, the average number of sales made per agent held steady in December even though this is traditionally a quiet month. Some agents reported a small rise in house prices which the NAEA suggest may indicate that the rate at which prices are falling had slowed in some areas, rather than that the prices had reached a trough. The number of househunters rose from 186 to 200 and the numbers of properties agents had on the books rose from 87 to 100. The number of sales agreed per agent held steady at 6.
However, in comparison, early in January this year the Financial Times had asked the question “Will 2009 be a year to buy property?” and gathered the views of over 50 economists. Over 60% believed that 2009 would not be a good year to buy property, whilst the remaining economists believed that, particularly towards the end of the year, it could be safe to buy a property. There was an interesting mix of views. On the side that believe 2009 will be a year to buy property the reasons given were that buying real assets such as property would be protection against a decline in currency. Interest rates are expected to remain low throughout the year and by the end of 2009, although lending will remain tough, there may be more credit available particularly if the government steps up its intervention. Some economists believe that the market will have bottomed out by the end of 2009 and some buyers will then be enticed back into the market by the combination of low prices and low interest rates.
For those against the idea of buying property in 2009 the key belief is that property prices will remain simply too high in comparison to earnings and credit availability. Some economists expect property prices to continue to fall into 2010 and bottom out during that year – Capital Economics expects prices to fall a further 20%, Global Insight 15% and JPMorgan 10%. However, one economist predicts that the house price falls will continue into 2014. Factors to support the continued falls are ongoing credit restrictions, still stretched affordability, rising unemployment with muted economic growth, and the negative expectations that the market will continue to fall. And of course, with the recession biting potential buyers may delay buying due to fears of their job security.
As a whole there seems no rush to buy property. The country is in recession, 2009 will see huge rises in unemployment, lending is expected to remain constrained and as a result the demand will be low. Of course some people will have to move house due to personal reasons and the desire for home ownership and the personal benefits that owning your own home can bring. Transactions will therefore continue to trickle, but the idea of buying a property as a good investment i.e. the buy-to-let market, is some way off. However, post-recession and in the years following economic recovery we could see another housing boom due to an undersupply of housing, increasingly affordable property and a new, more secure banking system. During 2009 property sold at auctions and those that are in need of repair and renovation will be sold at very low prices and bargains will be easily found. If you buy in 2009, offer low and assume to hold your property for some time.
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Susy Copus writes about all aspects of the property market. Her work has featured the UK Property Search Engine, Where’s My Property, and Renovate Alerts who find property to renovate. Article Source: http://EzineArticles.com/?expert=Susy_Copus |
The sobering information presented here by Go! Real Estate is intended to help home sellers and buyers with their decisions pertaining to the housing market. We caution readers to bear in mind that the analysis presented by the writer is based on national data and not on Seattle-specific information. Go! Real Estate intends to stay true to its mission to keep our clients and readers fully informed of meaningful trends in the real estate market even though such information may dampen the local housing market in the short term. We believe our long term success and integrity is best served by not sugar-coating the State of the Housing Market to our clients. Call us at (206) 388-3882 for our expert analysis of the Seattle housing market!
Add comment January 28, 2009
Vashon Island Real Estate Finance: Ask Kyle – Buying Up!
Buying up…
Moving from a starter home to a larger home and retaining the previous residence has been a great strategy for accumulating real estate and creating wealth. The recent phenomenon of buying and bailing in distressed markets has caused Fannie Mae and Freddie Mac to create new guidelines addressing the issue. Unfortunately this also makes it more difficult for homeowners to acquire additional properties. Most lenders are currently looking for 30% equity in the retained property or 6 months of payments (for both houses) in reserves.
Our current market provides a great opportunity to implement this move up strategy. Golf Savings Bank is a portfolio lender that isn’t subject to the same restricted guidelines such as a max of 4 financed properties and the difficulties of retaining a current home.
Give me a call to see how you can take advantage of these low interest rates and great buys.
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Add comment January 22, 2009
Vashon Island Homeowners’ Seminar: Sludge
“Care and Feeding of Your Septic System” a workshop at the Land Trust Building from 7-9 PM on Thursday, January 29, will discuss septic systems as an integral part of home design and the benefits of good maintenance. Teri King will teach the workshop and explore how your septic system works, how to keep it well maintained, and when to call a professional for help. This may be the last event funded by the Waterworks Grant on homeowner education. Register with Susie Kalhorn at 463-4006 or burnhorn@earthlink.net.
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Add comment January 22, 2009
December 2008 Real Estate Statistics for King County, WA
December 2008 South King Real Estate Statistics
December 2008 King County Real Estate Statistics
Our friends at Commonwealth Title have compiled a statistical comparison of closed sales on single family homes and condominiums in the Seattle area. Simply open the PDFs for details.
NOTE: there are TWO reports here, one for King and one for South King County
Add comment January 16, 2009
Vashon Island Housing Market News: The State of the Economy
On December 24, 2008, the National Association of Realtors released its report on the surge in mortgage applications and home refinancing applications for the preceding week.
Mortgage Applications
· The Mortgage Loan Application Index, a measure of mortgage loan application volume, rose 48 percent from a week earlier to the level of 1245. Refinance applications surged 62.6 percent in one week. Purchase applications increased 10.6 percent.
Comment: While the application volume surged in the wake of federal government industry bailout activity, the actual numbers of loans issued has NOT been reported. The actual loans issued are expected to be constrained significantly by more rigorous lending standards adopted by lenders. NARs believes that a surge in applications represents a step toward home price stabilization. However, the nexus between applications and prices is attenuated. A better indicator of market stabilization will be an actual correlation between applications and loans made.
Personal Income and Consumption
· Personal income fell more than expected, a decline of 0.2% in November, after increasing 1% in October.
· Consumption fell 0.6% after falling 1% the prior month. Consumer spending is the driver of economic growth. It accounts for more than two-thirds of the nation’s gross domestic product. Deteriorating economic conditions, including the recent credit crunch, have squeezed consumer credit, leaving them with less to spend on retail goods.
· The savings rate rose to 2.8% in November, the largest level since May when the tax rebate lifted income.
Comment: As indicated by the NARs data, personal income fell less than spending, meaning that consumers are saving money, a significant factor in consumer capacity to finance home purchases. The U.S. Commerce Department’s Bureau of Economic Analysis reported that the 2.8% savings rate represents an increase of 0.4% over October’s data. Savings data represents a solid note of improvement in consumer economic fundamentals.
A difficulty, as noted by the December 30 Seattle Times, is that banks are also saving to build up their capital as a protection against losses, meaning that federal bailout money is not being passed along to consumers and is not effectively stabilizing the housing market.
More to come . . .
Statistical data, unless other wise noted, is subject to the copyright of the National Association of REALTORS®, and reprinted with permission. Comments and analysis are provided by Go! Real Estate.
Add comment January 1, 2009
Vashon Island Housing Market News: Fresh Economic Analysis
The National Association of Realtors released its analysis of Standard&Poor’s Case-Shiller Index of home prices on December 30, which is an index of 20 major U.S. cities and shows an 18% drop nationally from October 2007 to October 2008. As we have noted in previous articles here, the national figures do not accurately reflect the micro-home markets which are critical to an analysis of local home sales. The strengths of Seattle’s housing market relative to the national market have been discussed in other articles here. However, the S&P figures are useful; as general indices of trends.
The corresponding NAR Existing Home Sales (EHS) report issued last month showed a yearly decline of 11.3 percent over the same October time period. It is important to note that the Case-Shiller Index coverage of 20 major U.S. cities is somewhat biased toward markets that have suffered the most in this economic crisis, while the NAR index is a true national survey. Further, Case-Shiller weights higher-priced homes which tends to skew their results. The NAR index covers all sectors of the market. Readers should be aware of the biases of the indices before basing investment decisions on the reports. The two indices are useful to the extent that they specifically identify the price sector in which an interested buyer or seller may be interested.
By way of a caveat emptor, Case-Shiller reports a monthly drop in prices between September and October of -2.2 percent; the corresponding NAR number was -4.2 percent. However, both numbers are relatively meaningless—changes in market mix, yearly purchasing patterns, and index timing render monthly comparisons of very limited accuracy in terms of reporting actual experience or predicting future trends.
Finally, as food for thought, the NAR report forecasts that Gross Domestic Product in the fourth quarter of 2008 will be down -5.8%, and that 2009 will begin the first quarter with a GDP decline of -2.0%. The NAR forecasts that the unemployment rate by mid-2009 will be 8.2%. The NAR predicts that the average 30-year fixed mortgage rate by mid-2009 will be 5.2%.
Statistical information is subject to the copyright of the National Association of REALTORS®, and reprinted with permission. Analysis is provided by Go Real Estate.
The National Association of Realtors released its analysis of Standard&Poor’s Case-Shiller Index of home prices on December 30, which is an index of 20 major U.S. cities and shows an 18% drop nationally from October 2007 to October 2008. As we have noted in previous articles here, the national figures do not accurately reflect the micro-home markets which are critical to an analysis of local home sales. The strengths of Seattle’s housing market relative to the national market have been discussed in other articles here. However, the S&P figures are useful; as general indices of trends.Add comment January 1, 2009
Vashon Island Real Estate: Urban Land Institute Rates Seattle #1
On the same day that the National Association of Realtors announced that November house sales had fallen over 8%, the trade group also released a report that supports the theory that Seattle’s housing market is a strong “microclimate” in the overall housing scene.
A survey by the Urban Land Institute of 700 private developers, REALTORS® and Real Estate Investment Trust (REIT) executives concluded that Seattle scored highest when asked to name the best place to invest in commercial real estate in 2009. As readers of this column know, commercial real estate is an indicator for the rest of a regional real estate market. San Francisco, Washington, D.C., New York and Los Angeles followed in the survey.
“Seattle is going to be in a good position to come back,” says Stephen Black, senior resident fellow, finance, of the Urban Land Institute. The city’s diversified market, good base of business and move toward becoming a 24-hour city helped it attain the favorable ranking. The best cities in which to invest are those that are considered gateways to international investment, have vital downtowns where people can forgo cars, and don’t have a glut of condos or office space.
Survey answers “also apply to the residential market,” researchers believe, “since the single-family-home sector typically follows the economy. As wages go up and there are more jobs, more people can buy homes, pushing prices up.”
Add comment December 25, 2008
Vashon Island Real Estate: Are You Paying for Ineffective Marketing?
Many of our clients ask us why Go! Real Estate features internet marketing techniques rather than simply listing properties in newspapers as so many agents seem to do. After all, they say, real estate agents have purchased newspaper and magazine advertisements for years.
The answer is simple. The internet has changed the face of real estate marketing and home buyers no longer turn to newspaper and magazine advertising to search for a home. They turn to the internet. Go! Real Estate’sexpertise in real estate internet marketing is based on well-researched studies within the industry and by independent analysts which establishes that print marketing is a dying technique and that declining circulation (an industry average 5% per year) may spell the end for many newspapers.
In fact, in our home town of Vashon, one of the town’s two newspapers has reached a point of soliciting contributions from its readership in order to keep afloat. Apparently contributions have been light. Both newspapers on Vashon depend on real estate advertising to stay solvent, and the collapse of the housing market is not helping the bottom line.
In an extended column in the Seattle Post-Intelligencer on Friday, December 19, 2008, author Stephen Foley discussed the state of the newspaper industry in the context of the bankruptcy of the Tribune Group, owner of the Chicago Tribune and Los Angeles Times among their publications. Foley concludes that more newspapers are soon to follow. Foley discusses the particular difficulties facing the New York Times and its crippling debt payments. Advertising revenues there are down 16%.
As Foley writes, the slow steady ebb of newspaper circulation has been compounded by the restriction in advertising dollars available to sustain print media. The demise of local papers and savage cost cutting at those that remain cannot help but decrease the quality and appeal of those survivors. 15,000 jobs have been lost from among the 1400 papers published during the past year. As evidenced by the Los Angeles Times, the response has been to turn newspapers into a more entertainment-oriented publication at the sacrifice of hard journalism. One wonders whether newspaper readers will tolerate the loss of true news reporting.
Foley cites the advent of web-only journalism. Clearly, the decline of print media will create many opportunities for new media outlets, as foreseen by ProPublica and the Voice of San Diego. As Morton Research, Inc., has correctly predicted, half the advertising lost during this recession will never return to print. The future of marketing in the housing industry lies with the internet. Morton predicts that newspapers will transform into websites.
If there is a bright side to the economic crisis we face, it is that tightening budgets will force a re-evaluation of every aspect of our economic system, and for purposes of this article, a discussion of how marketing dollars are best spent to sell a house and effectively reach a broad base of buyers. A critical analysis of real estate marketing reveals that a vast majority of buyers find their homes on line. Further, the expensive advertisements some agents place in newspapers appears to be a waste of money. However, the cost of that print advertising is passed on to their clients as part of the non-itemized commission that an agent charges.
The National Association of Realtors confirms the trends cited by Foley as they pertain to real estate marketing strategies. First, the NAR determined that the classified section of the newspaper is the LEAST READ section of the newspaper. Second, 85% of home buyers reported that they found the home they eventually purchased on the internet. Another 10% said they discovered their new home through realtor signs posted at the property. Only 5-6% of buyers said they found their home through newspapers and 1% said they found their purchase through real estate-related magazines. Clearly, your advertising dollar is most effectively spent on an internet marketing campaign.
Go! Real Estate employs an extensive array of internet marketing tools which reaches a huge audience through Go!’s search engine optimization expertise. That audience of potential home buyers exceeds local newspaper circulation by a huge factor and reaches national and international readers. Better yet, Go! has established its marketing system tools with an eye toward the economy of scale that the internet offers to marketing. Simply put, there are significant marketing cost savings realized by Go! which in turn are passed on to our clients in the form of a reduced commission for representation. So you, the home seller, get the best of both worlds . . . an immensely more effective marketing campaign for your property and a cost savings.
1 comment December 25, 2008
Ask Kyle: Vashon Island’s Real Estate Financial Guru – Timing the Market
Timing the market…
I’ve been encountering many potential buyers waiting for the bottom of the market. You will almost never be able to perfectly time the bottom of a market cycle. Trying to time the market can often be costly. It causes a buyer to miss out on the opportunity to purchase the right property at the right price.
In our current market there are a lot of factors working in favor of buyers. There are currently some great deals on homes. You’re better off negotiating the best purchase price and locking in a low rate and enjoy the benefits of homeownership. We’re near all time lows with fixed rates as low as 4.875%… It’s a great time to be a buyer! Call
for your free no obligation consultation….
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Add comment December 19, 2008
Vashon Island Housing Market Forecast: The Well-Informed Consumer
I recently attended a two-day seminar on Real Estate Law offered by the Pennsylvania Bar Institute in Philadelphia. Among the presentations on Commercial and Domestic Mortgage Foreclosures, Defending a Residential Foreclosure Action, Sheriff’s Sales, Tips on Landlord / Tenant Evictions, and other sobering topics, was an outstanding presentation by Dr. Susan Wachter, Professor of Real Estate and Finance at the Wharton School of Business, Dr. Jesse Abraham, Wells Fargo Home Mortgage, and Professor Adam Leviton, a specialist in bankruptcy and commercial law at the Georgeton School of Law, called “Why Here, Why Now, and What Next?”
The speakers presented a concise overview of the financial causes of the crisis in the housing market and, more significantly, offered an outstanding analysis and forecast for the market recovery. The presentation was sobering but instructive and relevant to home sellers and buyers and worthy of consideration.
My intent here is to summarize the presentation and to invite readers to contact me via this blog to develop a more detailed discussion of the issues touched upon here.
It is important to underscore that the economic circumstances that coalesced to form the recent boom and bust in the housing market are NOT historically unique and are manifestations of normal housing market behavior. The difficulty is that while housing price increases through 2003 were justified by fundamental economic principles, price rises AFTER 2003 were not. Post-2003, in a nutshell, as the popular press has reported, investment packages created on Wall Street artificially sliced apart the degrees of risk associated with unregulated mortgage lending (“tranching”) and severed the relationship between the actual property securing the mortgage from the investment instruments.
The federal government is now involved with spending hundreds of billions of tax dollars to guarantee the investments of major financial institutions into these bogus packages. The effectiveness of the Fed’s strategy will play out over time. What, if any, regulatory response to govern mortgage investment practices might arise also remains to be seen.
Today’s home sellers and buyers are more immediately interested in the prognosis for market recovery. The historical occurrence of housing market boom and bust cycles offer guidance on this issue.
The housing market is a function of factors that influence supply and demand. Among these factors are the formation of new households (in turn a function of demographics and population fluctuations), the demand for second homes, and the replacement of deteriorated or obsolete structures. New households command 70% of the demand.
Complexities increase as one looks at local markets, where such factors as migration patterns, employment opportunities and wage trends, demand for vacation properties, etc. influence analysis.
Of particular note is the function of immigration on the housing market. The last decade witnessed 400,000 new potential home buyers each year entering the country, leading to a recent surge in demand for homes and influencing an increase in sales prices. The national homeowner rate increased steadily from 1995 until 2005, well into the period after 2003 when high risk mortgages began to proliferate.
The bottom line is that house prices after 2003 were unjustifiably sustained by consumer confidence in the fiction of high risk mortgage practices.
Historically, housing market booms and busts occur within two-and-a-half to five year cycles. The speakers at the PBI seminar suggested that an additional five years will be required to stabilize the market in order to reach former price levels. This time period is necessary to clear out the existing glut of housing inventory and stabilize the market, topics which have been discussed in other postings to this site. This projection will be influenced by myriad factors including uncertainty in the Federal bailout programs and consumer confidence.
All this means that sellers and buyers in today’s market should be aware of the factors in play as they set their sales price or purchasing budget. For a seller, simply holding fast to a price established by the artifical market post-2003 is generally ineffective in enticing buyers. For a buyer, an awareness of historical trends should help to determine the appropriate financial circumstances under which to pull the trigger and finance a purchase.
The good news is the historically the housing market has always recovered and if a seller or buyer can weather the current disruption with intelligent analysis of the economic fundamentals involved, then smart market decisions can be reached. Informed consumers on both sides of a house sale transaction will help to stabilize the market immensely.
As always, Iwelcome feedback on this column. Happy Holidays!
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Add comment December 19, 2008
Vashon Island First Time Home Buyers: A Golden Opportunity If You Are Well-Informed
The confluence of low mortgage rates, an over-abundent inventory of homes listed for sale, and a growing interest on the part of lenders to write new mortgages has created a golden opportunity for first-time homeowners. In fact, the Seattle Times recently called thi8s the “buying opportunity of a lifetime,” while acknowledging the the actual bottom of the market will not be identifiable except at some point through future hindsight.
However, the imminent availability of a 4.5 % 30-year fixed rate mortgage should be a sweet incentive to home buyers and result in a surge of new mortgage applications. In fact, it is not unreasonable to think that a glut of applications may cause the proverbial Johnny-Come-Lately to arrive late to the queue and suffer missing the prime period for the availability of this mortgage rate. One thing is certain, the rate will not be permanent as the federal government decides when to cease carrying the risk on guaranteeing these loans.
First-time homebuyers have their traditional advantage in negotiating prices with sellers, their purchase offer is not contingent on selling another property. These homebuyers should expect to be courted by sellers offering an array of sweeteners to a deal.
The first-time buyers needs to remain practical in this giddy environment. One study, “The Changing Prospects for Building Home Equity,” predicts that buyers in 33 og the 100 major real estate markets may see a decline in their home value by 2012, in areas including New York City, Los Angeles, San Francisco, and Seattle. However, the well-informed consumer will realize that these predicitions are regional and not local. Accordingly, buyers should take the time to research the specific neighborhoods that they are interested in for purposes of investment potential.
The practical first-time buyer also needs to be absolutely realistic about what they can afford, in the face of more readily available mortgages. The rule-of thumb is that no more than 28% of pre-tax income should be budgeted for mortgage payments. While the high-flying practices of the mortgage industry has ignored this rule for a number of years, buyers should exercise their own discipline with their budget.
Further, the well-informed home buyer should consider mitigating risks in the face of todays turbulent employment market. Prudent consideration of jobh security today may prevent a lifetime of adverse consequences associated with making a bad mortgage decision.
Finally, a first-time buyer should interview a number of buyers’ agents to see that they are receiving the expertise and service they need to make a sound purchase decision. Believe it or not, not all agents are a good fit for your unique needs . . . and not all are willing to put off a quick commission when a buyer may be leaping without looking. A buyer needs someone to watch their backs when they are enthusiastically measuring for curtains in their “dream house.”
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Add comment December 19, 2008
Ask Kyle: Vashon Island Home Finance – Locking versus Floating
I’ve been receiving questions on whether I suggest locking in or floating interest rates. We’re currently in a lending environment where rates are changing two or three times a day. With such volatility and rates as low as they currently are, it is a great time to be locking in. Nobody can consistently predict short term interest rate movement, and the risk is not worth the reward.
I’m advising my clients to lock their loans as there is a lot of comfort knowing that their interest rate is secured. A slight price improvement isn’t worth the risk of having rates move the opposite direction. Loans are taking longer to process and close due to tighter guidelines and higher loan volume. A standard lock period is 25-30 days depending on the lender. It may make sense to request a 45 to 60 day lock; this will give your lender a realistic time frame to successfully close your loan.
Give me a call to see how you can take advantage of these low interest rates. It’s a great time to be securing a fixed loan at near all time low rates.
Fax: 480.287.8704
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Add comment December 11, 2008
Vashon Island Home Finance: The 4.5% Mortgage Rate Proposal
In a continuing effort to stimulate and stabilize the housing market, the federal government has floated the idea of having the Treasury Department lower the rate on 30 year mortgages to 4.5%. This represents approximately 1% below the current rate of 5.6%. Treasury would implement the program by purchasing mortgage-backed securities from Fannie Mae and Freddie Mac. Some have suggested that a $50 billion package is appropriate and the National Association of Realtors says the move would yield approximately 500,000 more home sales.
This action would piggy-back on the pre-existing plan to buy $500 billion in mortgage backed securities which has resulted in a surge of lower interest rates and concurrent spike in refinancing activity by borrowers . . . a 50% jump in refinancing activity in a little over two weeks. Borrowers are seeking to lock in lower interest rates in anticipation of slow recovery from the economic downturn.
While the plan might help people seeking ti buy or sell a home or to refinance an expensive mortgage, it may not help people whose credit is so damaged that banks don’t want to lend to them. The plan is not designed to change the qualifications for who gets loans. The best refinancing rates are available to those with impeccable credit – 720 or higher – as well as at least 10 – 20% equity in their homes.
However, despite the good news, the overall number of refinancings this year is only expected to be a quarter of the volume at the height of the housing boom in 2003.
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Add comment December 11, 2008
Relocating to the Seattle area? Why you should consider Vashon first!
Why you should move to Vashon Island!
- Just 20 minutes to Seattle by ferry or 10 minutes to Kitsap County and Tacoma
- Lower housing prices than you will find in Seattle
- Hi-ranking public schools
- 50 miles of unspoiled beaches
- Peace and privacy… average lots size of 3.5 acres
- Strong regional job market with world leaders in technology and aerospace
- A small-town community of just 11,000 residents over 37 square miles
- Natural beauty and tranquility within a short distance of one of America’s finest cities
Add comment December 4, 2008
Vashon Island Homes for Sale: Beware of Market Reports
Cindy Zetts of the Seattle Times Real Estate Section provides an important perspective on the plethora of home sale market analyses that are flooding the newspapers. She writes of three such reports that were published during Thanksgiving week, each purporting to signal trends in the market.
Vashon and Seattle home sellers are well-advised to read deeply and with some skepticism the conflicting reports of the state of the local housing market. For example, one report cited by Zetts is a national report which does not break out Seattle market data. In fact, Seattle’s housing market has performed BETTER than the national statistics for home sales and has trailed the rest of the country in the number of foreclosures. A second report cited by Zetts lumps Seattle’s housing market statistics together with California, Nevada and Arizona. In fact, the economies of each of these States is unique and bears little relevance to the many localized factors which affect the Seattle market. Finally, Zetts cites a national report which is based in changes in average, not median prices. Such data is easily skewed by extreme highs and lows in the data set and renders the conclusions of the report useless to local home sellers.
Take for example the front page article in the November 28 edition of the Seattle Post-Intelligencer trumpeting that commerical property are facing a mortgage meltdown. Commercial property has long been viewed as an indicator and precursor of trends in the local housing market. A Seattle reader might be tempted to read the article as a comment on the local commercial property market. However, close reading of the alarming article shows that it was actually pulled off the Associated Press, based in Washington, DC, recites analyses of commercial data in Michigan, Georgia, California, New York and Texas.
While this article bears notice for the prudent Seattle market participant, it is untouched by specific data pertaining to the Seattle market. In this writer’s view, it would be a travesty for the headline to adversely influence local market decisions with more Seattle-specific analysis.
Ms. Zetts has performed a timely service to Seattle area home sellers in cautioning against accepting the conclusions of these reports as a basis for making home sales or purchasing decisions. The consumers best bet is to consult with local experts with a finger on the pulse of the local housing market.
Add comment December 4, 2008
