The Holidays are a Serious Time for Real Estate

By Rod Sager, originally published on 12/5/2014

image from www.azcentral.com

I have said it before and I'll say it again; the holidays are a serious time for real estate. Anybody that is buying or selling during this time of year is very serious about real estate.

Buyers that are out in the weather during a time they could be at office parties, visiting with family, shopping for the elusive perfect gift, etc. is very committed to finding a house in a timely fashion. Otherwise why wouldn't they just put it off until the New Year?

Likewise for sellers. They would probably rather not have people tromping through their home during the holidays, when guests are over, the decorations are up, etc. Yet there they are doing just that. Maybe they just really want to sell their house?

This is a great time to buy or sell. All of the classic "looky-loos" are on hiatus while the serious contenders are still in the game. I will likely close four transactions this month and that is as many as I closed in the summer months. Don't take the holidays off, you might just get everything you want in the month of December!

As always, seller's should be mindful of the basics of presented their home to prospective buyers. This might be the year to keep half of your holiday decorations in the attic. Too much clutter can be a negative. Keep baking all those yummy holiday goodies because buyers love the smell of fresh baked cookies. Keep the walkways clear of tripping or slipping  hazards. Keep snow off the driveway and walkway.

Buyers are well advised to keep shopping during the holidays. Sellers are usually easier to negotiate with when they are busy with other aspects of their lives. At the point they have chosen to keep their home open during this month, they are motivated, whether they say so or not.

December is a win-win month for buyers and sellers so neither should shy away from the golden opportunity that December brings to real estate.

Real Estate is Like an Evergreen Tree

Was that a tree analogy in the headline? Yep, this is Washington after all. Real estate is more evergreen then deciduous. It does not drop its leaves and go dormant for the winter like many of the beautiful deciduous trees in the area. Rather, real estate is like an evergreen, it remains green and lush all year long. People continue to buy and sell homes year round. The volume of activity slows down but the sales remain just a little below the summer peak. There is roughly a 25% seasonal curve here in Southwest Washington and the Metro Portland, OR area.

I have found that the people who are out looking in the cooler months are "the real deal". These folks could be inside sipping on a latte by the fire, yet they are out in the cold rain, snow, and sleet to look at houses. They are serious buyers. Sellers looking to get a leg up on the spring market would do well to keep their home listed through the winter.

Should you decide to list in the winter, be certain keep your walkways free of leaves, debris and snow. When showing the home a warm fire in the fireplace if you have one adds to the charm. No fireplace? Light a candle with a vanilla or smokey aroma.  

Winter can be a good time to sell your home and is can be equally favorable for buyers. Don't let the clouds and cool air discourage you. Real estate is like an evergreen tree, it doesn't hibernate in the winter.

FHA Flip Rule

by Rod Sager (Originally posted on 10-17-2014)

Many people are using FHA loans these days. The FHA offers low government backed rates but has the problem of high mortgage insurance payments. FHA however offers guidelines that help people who have tighter budgets because they allow otherwise well qualified borrowers to exceed the standard debt to income ratios if other compensating factors exist.

This market has brought many home flippers into the fold.The large quantity of foreclosures that followed the market crash led to an abundance of investors flipping homes. The FHA has a rule loosely called the "Flip Rule" that requires at least 90 days of ownership before the sales contract is written. I think this is a stupid rule. Most of the homes that investors buy are houses that are too rough to be financed. They buy them for all cash and then make the improvements and repairs to bring the home up to market value. The FHA doesn't like to see a rapid price increase out of character with the rest of the market.

Many of these home flippers are professional companies that do a great job. There are probably some hacks out there as well, but for the most part, these companies provide a service to the community by rehabilitating otherwise dilapidated houses. My experience has been mostly positive when confronting these sellers with repairs after a home inspection. They tend to fix all the reasonable problems on an inspection report. Traditional sellers are often obstinate regarding repairs.

I think the FHA needs to re-visit this rule. The FHA is a loan program specifically designed to help entry level buyers and families get into homes and these "flipper" properties are often ideally suited for them.

Buyers looking at entry level homes may find a flipped property. Be sure to have your Real Estate professional check the closing date and write the offer after 90 days has passed. Your local agent should be aware of the better home flipping companies that operate and offer some guidance in this area.

P.S. There is a way to get an FHA loan approved on a less than 90 day old flipper. It requires a second appraisal and may require to seller to identify repairs that brought the house up in value. This can be tedious but a cooperative seller can make it happen. - Rod

Economic Indicators are Trending Up; "Op Window" is Closing

by Rod Sager, originally published on Realtor Rod Blog

Many market analysts are mildly bullish on the numbers coming out of the marketplace as we enter the final quarter of 2014. For me personally as a Realtor®, this was my strongest year ever. I enjoyed sales that were even better than the pre-crash heyday of the mid-2000s. Low interest rates and improving consumer confidence has made conditions for real estate ripe over the last two years. In 2011 through the middle of 2013 the first time home buyer segment was roaring. Prices were still a little depressed and rates were low so people that had been long priced out of the market saw a rare opportunity to own real estate. Economic recovery and confidence has led to a spill over into the middle and upper end markets.

Looking forward; the strong potential for the economy to swing into a more robust growth could lead to rising interest rates. If the rates get too high, they can have a negative effect on real estate sales and appreciation can slow. The "op window" for many buyers may be closing. Prices have swollen over the last two years by nearly 20%. If rates were to get closer to the 30 year average and settle in at 6%-6.5%, many entry level buyers will find themselves priced out. A strong economy is a good thing and even higher interest rates are worth having when strong job growth and higher incomes are part of the equation. Right now, buyers are in the open window of opportunity. They can lock in a low interest rate that can save them tens of thousands of dollars over the life of the loan before the improving economy drives prices and rates up.

Fear and uncertainty are what keep people from buying real estate. But no matter what, people need a place to live and buying right now for many people is just as affordable as renting. As the economic conditions improve the cost to own will rise faster than the cost of rent and that window will close as well. It is a good time to buy and a good time to sell.

This was published by Kiplinger this month:

By David Payne

The economy looks better than was previously thought: Look for about 3.5% growth at an annual rate in the third quarter, driven by motor vehicle sales,business equipment, exports and nonresidential construction. A likely upward revision of second-quarter growth to near 5.0% after a dismal first quarter (a -2.1% growth rate) is also likely. In the fourth quarter and into 2015, growth should settle down to a 3.0% rate. That would mean average GDP this year would be about 2.2% over the average for 2013.

Setting the stage for more sustained growth in coming months: After wringing out inflation, disposable income grew at a strong 4.0% annualized rate from December 2013 through July 2014. Consumer confidence is at its highest level since before the recession. Motor vehicle sales in July hit their highest level in over eight years. An index of manufacturing activity points to strongly expanding output. New orders for business equipment have climbed 13 percent at an annual rate since May, indicating strength in business investment spending. Plus, hiring is on the rise, layoffs are scarce (indicated by a very low rate of initial unemployment claims since May), and retail sales have rebounded.

And growth may accelerate more dramatically through 2015. Improving business confidence could push investment growth back up. Consumer spending and confidence remain below what would be considered normal levels by the standards of past economic expansions. As job growth returns and consumers feel more secure, more robust income and spending increases may well be triggered, pushing second-half growth over the expected 3% pace. While that happening in what remains of this year is an outside chance, it’s a good bet that in 2015 such a virtuous cycle will kick in.

There is a slight possibility that rising interest rates next year could have a mild depressive effect, knocking growth down from an above-average (better than a 3%) rate to a simply average (2.5%) pace. For now, however, we expect that the likely small increase of a quarter- or half-percentage point in rates won’t have much impact on GDP growth.

New Construction is Back...Bigtime

From Real Estate with Realtor® Rod,
By Rod Sager

From Stonebridge Homes, Ridgefield, WA

The last twelve months has seen a boom in the new home construction market here in Clark County. Builders are erecting beautiful new homes and buyers are snatching them up. The pre-crash trend of bigger homes on smaller lots continues during this post-crash recovery.

Builders are able to offset the fixed expenses of infrastructure when they can squeeze more homes into less land. This allows buyers to get a really nice home for a reasonable price. Families looking for the rancheria spread on the jumbo 1/4 acre lot will likely need to did deep into their pockets or continue working the 1970s and 80s resale market.

There are several builders that have setup shop across the county. New Traditions, AHO, Manor, Osprey, Olin, and Pyramid have been here before but we also are seeing new faces from Lennar and Stonebridge as well.

I helped a client get into a new home last month and he got a lot of house for a great price.2700 squares with nice upgraded trim and a decent sized lot at 6,000 squares for a great price of $313k. Prices are moving up though. That same floor plan is now fetching $325k in the same subdivision.

Getting in early can sometimes be a huge advantage price wise. Builders tend to increase prices as the phases of development are added in. The advantage to a phase one purchase is price, the disadvantage is the uncertainty of how the development will "feel" when built out.

New construction can sometimes soften the resale market and I think that the slower resale appreciation this year could be directly linked to the increased builder activity. That is a short term dilemma. The long term benefits associated with new construction are usually worth any short term loss. New development increases the value of real estate in the area. It aids in infrastructure improvements and provides needed local government revenue. It also aids in resale value long term.

Here in Southwest Washington, most builders list their new homes in the MLS. You can have your trusted real estate professional help you find the best value in a new home. Buyers that are trying to find a newer modern home should consider a new construction. It could be just what the doctor ordered :)

Understanding Contract Terms is Essential

It is imperative that both parties to any contract understand the terms and requirements to close. Most problems that arise in real estate transactions are misunderstandings between the parties. One person thought the seller would move out on this date or that time but the seller thought they had till such time, and so on.

Real estate agents are not attorneys! We fill in the blanks on standardized forms prepared by attorneys and approved by the state of Washington. This is designed to alleviate many problems that can happen during a real estate transaction. It is critical that all parties understand timing, dates and expectations. Many people make assumptions about how things are supposed to go. There are many standard timing issues that act as a default. For example, in Washington State, a buyer has the right of occupancy at 9pm on the day the county records the transaction. Unless specifically agreed in writing this is a contractual requirement. Many buyers think they can move in right after they sign documents or when the bank funds the loan. This can cause problems.

The moral of this tale is that both buyers and sellers need to be certain they understand the terms and conditions to the purchases and sale agreement. They should never feel afraid to ask their real estate agent questions about the details and procedures that are mandated and/or customary practices when closing a real estate transaction. Real estate agents should always be clear and concise about these terms and conditions and be certain that their client understands them. If language is a barrier then that agent needs to work harder to ensure that the clients understand.

When all parties understand the details and procedures to close, the transaction will go smoothly and everybody wins.

Two Ways to Invest in Property When You Don't Have a Ton of $$ to Start Out With

by Dan Jensen
Relocation Services Director - Equity Northwest Properties Group
Investing in Real Estate is a dream for some, a practical activity for others, and the path taken by so many people over years and years of our Country's history to amass significant financial holdings and net worth!

Okay, so RE is a sound path to building your financial empire, but what if you don't have a ton of dough to start with? Is it still possible to invest in real estate?

Short answer is 'Yes Indeed'.

Example/Tool Number One - Option

You see a house you like that's for sale or may be soon... someone you happened to be talking with who said they need to sell their house in the foreseeable future but aren't quite ready at this point. Maybe next year after the kids finish the school year. You express interest in the "possibility" of buying their house and ask if they might consider selling you an Option to Purchase the home - say $500 for the option right to buy the home at a price you both think is "fair".

The Option can be good for any length of time, but let's say this one is good for one year. As time moves along, the value of similar homes increases just a bit, 5% in this case, and the agreed upon price you and the owner set is now a few thousand dollars less than "Fair Mkt Value" for the home. You run an ad in Craigslist offering to sell your Option for $2500 and whoever buys your Option owns the lower price for the house that you negotiated. Whether they exercise the option and buy the house or not, you've made a little extra that allows you to do 2 or 3 similar options and roll up the totals over time to "bankroll" your other RE investment strategies that do require a bit a coin to complete.

Example/Tool Number Two - Lease Purchase

You do your research and find a couple of houses that haven't sold for several weeks. One of the owners just lowered the price on their house to try to attract a buyer, and the other one is running ads that have words like "Urgent", "Hurry", "Must Sell NOW", and the like, telling you they really need to get out from under their mortgage.

You make a couple of calls and ask if they will consider you taking over their payments IMMEDIATELY and put together a Lease Purchase for 3-6 years. The IMMEDIATE relief from their next mortgage payment is enough to persuade one of the owners to accept your Lease Purchase proposal, you write it up with a "Fair" price for their home stipulated, and run a different ad on CL this time...

You're looking for a buyer-tenant for the house. You've made the first mortgage payment ($1600 or so) to your home owner, which buys you a month to find a suitable and interested buyer/tenant for the home.  Your Buyer/Tenant wants to own a home, but they can't get a mortgage for whatever reason, so your Lease Purchase offer makes home ownership possible for them as they repair their credit, season their time at their job, or whatever the case may be.

In short, your are providing them with the opportunity to own a home, something they deeply want, and in doing so, they are not only fulfilling the terms of your Lease Purchase agreement with your seller, but your new Agreement with your Buyer/Tenant is sweetened a bit and will yield money down and a little monthly cash flow for you as well. Well constructed and negotiated, there's likely another bit of cash for you on the back end of the deal when your Buyer/Tenant buys the house!

Not a bad deal throughout!

The details are key here, and too many to try to summarize here, but this Tool allows you to create 1.) cash in hand on the front end, 2.) cash flow throughout the agreement term, and 3.) profit spread on the back end when your Buyer/Tenant executes the purchase of the home.

In both examples above, you have never "OWNED" either home, but you negotiated "CONTROL"  OF both homes that results in PROFIT FOR YOU!

As small pieces of profit begin to add up, AND WITH SMALL amounts invested by you, it opens the door to additional Investment Tools that benefit from having more of a financial capability. We'll cover a couple of those ADDITIONAL TOOLS in our next post here.

In the mean time, get ready for a great Independence Day week ahead of us and thanks for checking out our blog!

Real Estate Investment 101- It's Not as Complicated as You May Think!

by Dan Jensen
Relocation Services Director - Equity Northwest Properties Group

This is a follow up to the May 30th post on Real Estate Investment.

I thought it might be useful to debunk some of the myths out there in the market place about complexity issues, need for huge financial reserves, "but the market is saturated with investors" issues, etc. By providing a short and simple overview of some of the investing strategies and processes within Real Estate, I'm hoping to stir your thinking and perhaps open doors of possibility as well! (Check back over the coming 3 Fridays)

When someone says, "real estate investor", what comes to your mind? Are you thinking Daddy Big Bucks finding great deals on huge commercial office buildings (are you thinking 'The Donald' about now?), or are you thinking about that little 87 year old lady you met last month who methodically purchased small rentable houses over 40 years of her lifetime and has been very comfortable financially for the last 20+ years living on the rents her tenants pay her every month?

Or maybe your thinking went right to the tanned fellow in jeans and work shirt who just finished remodeling that "fixer" he bought a month ago and who is about to 'flip' that property for a nice profit as a reward for his work?

There's no question that each of the above represents real estate investment. These and many other scenarios begin to describe the variety of paths you could choose to follow if you ever decided you'd like to invest in real estate. This is an especially important time to be thinking about such things, as we are highly likely to see a return to higher inflation rates in the USA, and real estate has traditionally been one of the most powerful protections against general economy inflationary cycles.

But most who think about investing in real estate don't ever put their thoughts into action. Lack of money is one concern. Not knowing a good deal from a "great" one is another concern. Carving out the time to do any kind of research and investing is another barrier for many.

Let's break it down in the days ahead and see if we can move beyond these "barriers" to RE investing.

Here's 3 pieces I'll be detailing in the weeks ahead...

1.) You CAN invest in real estate with VERY LITTLE MONEY in your bank account

2.) You CAN accumulate a strong RE portfolio, increasing your net worth steadily, over time.

3.) You CAN "Buy Low & Sell Higher", turning fixer properties into nicely remodeled properties. It helps if you're handy, but even if you're not, you can still invest in this way and make it pay.

Next Friday, I'll describe 2 tools that allow you to invest in real estate with VERY LITTLE MONEY.

Check back then, and as always... give us a call if you have questions. We love to help!

Have a great Father's Day weekend!

Have You Considered Becoming a Real Estate "Investor"?

by Dan Jensen
Relocation Services Director - Equity Northwest Properties Group


Certain words will often produce specific responses in each of us. "Good", "Bad", "Tall", "Short"... We each have our own understanding of what those words are describing, and there are some pretty dramatic differences in each description.

It's the same with the word "Investor".  What do you think of when you read the question, "Have You Considered Becoming a Real Estate Investor"?

     * Having a million dollars cash sitting in a strong box at home and looking for great real estate deals

     * Having ZERO dollars, but still being able to make stunning RE deals with "no money down"

     * Gradually buying one rental house after another over a period of years until exceptionally wealthy

     * Buying a great home at a great price, living in it, and watching the value grow into a retirement fund

The fact is, all 4 of these can easily qualify as "Real Estate Investments", and a dozen more descriptions in addition to these.

Investing in real estate is much more about your objectives in purchasing a property, and not so much about which path you decide to take in order to reach your objectives. Any of the four paths listed above can move you steadily toward the investment objective of building wealth and/or income. (two very different results, by the way!!!)

Most homeowners in the USA bought their home with no real thought of that purchase being a part of their wealth/income investment strategy. You want a great home for you and your family, and "yes", you're counting on your home to increase in value over the years that you own it, but it isn't really about investing in that house at all.

Then careers grow more rewarding, and the idea of a second home, a "vacation" home might begin to percolate in your thinking, and sure enough, you find a great beach house within a sensible drive from the family home, and you buy that it. Once again, not really thinking real estate investing, just expanding the enjoyment you're experiencing through your dwelling arrangements.

However, the moment you look toward that little starter home two blocks over that you drive by on your way to work...

or...

You investigate that cute little 2 bedroom beach house just down the sand a couple of houses from your vacation home...

with the idea that you can buy it for a great price and either resell it for more soon, or rent it on-going for a nice additional stream of income,
you've clearly crossed over! to the "Investment" side of the house!

We've heard it a thousand times before... "More wealth has been created and/or maintained through Real Estate Investment that by any other method"! It's true, and we know it's true, but the financial numbers are significant, and we don't have all THAT MUCH extra to work with, so we dismiss the idea as a possibility for us, and never find out more.

There are some very powerful and AFFORDABLE ways to move safely and productively into real estate investing.and we'll be covering a few of those over the coming weeks. Check back for more.

Also, if you are intrigued a bit and would like to compress the information timeframe, give us a call. We would love to do some strategizing with you about ways to invest that you might find useful.

Thanks for checking in with us. We love to help!

The Value of a View

by Rod Sager
originally posted on Real Estate with Realtor Rod 5/16/2014

Norwood Street, Camas, WA

A view is perhaps the most subjective part of evaluating real estate. What is it worth? In high end real estate a view is not just appreciated, it is often expected. View lots can easily command premiums in the 200% range. The problem with a view is that it may not be a 'forever' view. If one were to pay a handsome price for a property based on a wonderful view; they would be most displeased if that view were eroded years later. Trees can grow up and block a view. A neighbor can build in front of the view.

359th Avenue, Washougal, WA

The value in the view is subject to the person buying the property. I happen to value views very high. I like a good view. Other buyers may not be so inclined. If a view is something highly valued by a buyer, then that buyer should exercise caution to be certain the view will last.

Homes that are perched out on a cliff or bluff are likely to have a lasting view. Homes set on large parcels with allot of space in front of the view will also likely be able to control the fate of the view. Waterfront properties tend to keep the view indefinitely as well.

Ammeter Road, Washougal, WA

Buyers should not pay a large premium for a view that is easily corrupted. If a neighboring property owner has the authority to plant big trees or build a large structure that will block the view, then that view's arbitrary value is greatly reduced.

A view is also subject to its own 'greatness'. Is the view a peek-a-boo view? Is it seasonal only? Is the view out a obscure bathroom window? Or is it a grand panorama placed conveniently in front of a large living room picture window? All of these factor into the value an appraiser might place on the 'view' a property offers. An appraisers opinion of the view's value may not align with the buyer's idea. If the buyer is borrowing money for that home; the appraiser's opinion becomes a Gospel truth.

500 Broadway, Vancouver, WA

Urban views in high rise condos are often fleeting. The city may approve a taller high-rise right in front of an existing high-rise. The view shown here on the relatively low, 5th floor of 500 Broadway, Offers a straight shot right up Broadway. Since it is unlikely the city will ever approve a building in the middle of the street, this view is at least partially protected.

There are many views here in Clark County, Washington that are suspect at best. Yes they offer a beautiful vista across the river into that other state...Oregon. But often there are young trees that will soon grow mature or another subdivision that may go in soon. Buyers willing to pony up big bucks for a view need to be sure the view is going to endure.

Buyers should understand that short of deeded protections in the land in front of a properties "view". There are no guarantees that any view will always be there. Buyers should consider the likelihood that the particular view they are buying is going to be a 'forever' view. The view below looks across four acres that is owned by the view holder. This is a fairly protected view.

Bear Prairie, Washougal, WA

"Must Haves" in Your Real Estate Professional - Part II

by Dan Jensen
Relocation Services Director - Equity Northwest Properties Group

When You're Buying Your Home...

Last Friday, we talked about the skills necessary in your Real Estate Professional when you're wanting to market, promote, and find a Buyer for your home.

This week, we'll move to the other side of the table and talk about the skills you "Must Have" in your Agent when you're searching for a home to purchase.

1.)  A significant knowledge about and awareness of the real estate market where you want find your home

Every community has both "highly" visible and "hardly" visible houses that are For Sale. Just about any Agent will have the ability to check the area Multiple Listing Service to see what homes are being offered for sale, just as you have that ability with numerous online search sites. Where YOUR RE Pro should step things up a notch is to also have a significant awareness of those available homes that are Hardly Visible and that require an on-going working knowledge of the search resources and networks where more and better information about homes that are for sale might be found.

For Sale By Owner, recent Expired listings that haven't yet come back onto the market, "pocket" listings that fellow professionals know about, but that are not yet listed on any MLS, and so on.

Your professional should also have their finger on the pulse of the real estate market trends in order to know which of the neighborhoods are showing the most activity, where finding for a seller that No One Knows about may well be considering making a move and will, therefore, be putting their home up for sale soon.

Area market alertness and constant vigilance on your behalf will increase the number of houses that are available to you during your hunt for that next GREAT home!

2.)  Availability to provide help within your timetable

Life happens to us all! No way around it, just when we most need to be available to accomplish an important task or service, life will dish up 17 distractions, challenges, or outright roadblocks. Your real estate professional faces "Life" too, but every professional should have a solid, well-oiled Back Up Plan to be sure that if Life happens when YOU need their help, there will ALWAYS be a team mate available to jump in if life prevents them from personally serving you.

Every solid professional in real estate has seen to a Plan B back up plan to be sure their Clients will always have exceptional service available. Many professionals have developed Teams specifically for the purpose of great depth of knowledge and availability than any one RE Broker can provide you.

3.)  No surprise here... YOUR Broker Should NOT disappear after the home has been purchased!!!

Is your Agent available to answer questions TODAY, even though you're not buying, selling, or investing in real estate?

Has it been months since you moved into your new home, and you haven't heard a word from your Agent?

Did your Agent update you each year since you purchased your home to let you know what your current market value is?

Are there periodic reports made available to you about your community real estate trends, opportunities, and community "Big Events" that might have an impact on you, your family, and your real estate plans?

Have there been any offers from your Broker to discuss ways for you to reduce your monthly mortgage expense, payoff your home early, add value to your home, and protect the value of your home?

These are all benefits your chosen professional can and will make available to you, not only when you're in the midst of a real estate transaction, but ON GOING!

Next week, "Have you ever considered becoming a Real Estate Investor?"

"Must Haves" in Your Real Estate Professional

by Dan Jensen
Relocation Services Director - Equity Northwest Properties Group

When You're Selling Your Home...

There is a distinct and dramatic difference in the skill set needed to help you market, promote, and effectively find a home buyer as compared to the skill set necessary when you're searching for a home to buy.

Three "Must Haves" to be sure YOUR real estate professional will bring the right tools to the job of helping you SELL your home are:

1.) A sound & effective Marketing Plan

Your real estate agent should have a simple, but powerful marketing plan showing you what marketing and promotion will be done in order to attract the most qualified home buyers. The Plan should certainly be more than simply putting your home into an MLS and a few flyers in the box on a sign.

If you are considering any agent's help in selling, be sure to ask if they have a marketing plan or system that they use. If the answer is 'Not really', find another agent. However, few agents would admit that they don't have a marketing/promotion plan to a prospective home Seller, so be sure you also ask your agent to discuss in detail, each of the steps of their marketing system when you meet. It won't be long before you have a very clear sense of whether the Plan is new to them, or if they are experienced in it's use.

2.) Regular Updates & Communication

You should ABSOLUTELY! expect to hear from your agent regularly throughout the process of marketing your home, through the escrow, and beyond. Information about what other agents who have shown the home had to say, what has been done to promote your home each week, what options you have in making your home more attractive to potential buyers, and more.

If you are not hearing from your agent, call them and ask them to call you at least weekly with an update. If they don't, consider finding a new agent.

3.) Doesn't disappear after your home has been sold

This is a very important MUST HAVE!

Too many times, agents disappear after the transaction has closed. It's unlikely that the agent who helps you sell your home will disappear before they have also helped you find and buy your next home, but why should you have to settle for an agent who pulls a disappearing act on you EVER? You shouldn't have to settle.

Your real estate professional should consistently be available to answer whatever questions about real estate you may have, whenever you have them. There should be regular market updates, and an annual valuation report for your home... are your gaining in value, stagnant, or losing ground.  There should also be communication when special opportunities or area special events, workshops, and Q & A's to keep you alert to trends and those changes that may be effecting your real estate holdings (even if it's only the family home!)

These three are core to every real estate professional's services to their Clients. If you haven't experienced this kind of care, you may not be working with a true professional!

Next Friday, the 3 Must Haves when you're buying real estate.

Things are heating up...The kettle is starting to boil.

by Rod Sager

The market is moving into full 'Spring Fever' mode. Buyers are out in force and well priced listings are gone in two days. This kind of frantic buyer behavior is tempered a bit by the tighter lending practices of today versus the wild and crazy mid 2000's.

It seems like the buyers are sensing a shift in the wind. They are not as hesitant as they were in 2010-2013 to jump into this market. Mortgage rates remain very low and prices are starting to move upward at a fairly quick pace.

Buyers looking for a less frantic experience may want to seek properties that are either a little over priced or not quite move-in ready. These properties tend to hang around a little longer and sellers will get "real" and come to terms at a good price.

My concern for my buyers is that they are in danger of being priced out of the market. Everyone wants that turn key property that doesn't need any work but the value is that light fixer or that clean but dated house. Perimeter areas like Yacolt, Amboy and La Center are now seeing activity as well. Areas further out often enjoy a spike in popularity as people get priced out of the market in close.

The market is heating up and the kettle is starting to boil...

The Middle Market Pulse

By Rod Sager

Last week I wrote an article about a specific market segment here in Clark County. There is a vital sign that is important as this market continues its recovery that is often overlooked. The middle market pulse if you will. The bottom of our market has been hot for quite a while and continues to see a robust activity in sales and appreciation. But a very import question is this; is that creating motivation in the middle of the market. There is always demand for the bottom of the market and at the very top of the market there is always a fairly flat demand. The middle however is the pulse of the market.

The bottom is always in demand because that is the entry point. Back in 2010 I had a stellar sales year because I focused on the only part of the market that had demand. Entry level, first time home buyers. The interest rates were low and prices were at a ten year low. This created an opportunity for buyers with very modest income to actually own a home. Now the prices at the bottom have pushed high enough that many sellers are in a position to sell that entry level house with a cash at close scenario that allows them to move up to a middle market home in the $250-$350k range. So, are they pulling the trigger and making the move? Check out the article and see for yourself...

Spring Market Trends

Early Spring Often Sets the Tone

by Rod Sager

Here is an article from one of my other real estate blogs.

Real Estate with Realtor Rod Sager: Early Spring Often Sets the Tone: Looking back over the years I find that the early part of spring has proven to be a pretty good Nostradamus act for the real estate market. ...

Spring Spruce Up for your Home!

by Dan Jensen
Relocation Services Director - Equity Northwest Properties Group

There's just enough warm in the air, just a bit more sunshine, buds and blooms showing their smiling faces, and sure enough... Spring is springing!

Just for fun, we thought we'd pass on a couple of Spring Spruce Up tips to get the season started well. The first is a short how-to from the DIY Network on pressure washing tips as you're refreshing and taking great care of your decks.

DIY Network Tips on Pressure Washing & Deck Care

The second is more intended to be tips and relief from the "snowed in" cabin fever from too much cold, too much snow and rain and sleet for WAY TOO LONG and darn it all...I want some BBQ!!! Check out the link below for a short article from Dad Camp on the basic clean up and safety checks to get that BBQ in top form for the warm, sunny days ahead.

Dad Camp How-To - Spring Cleaning Your BBQ Grill

A house is a "house", of course, but a Home... is a HOME!

One of the greatest pleasures we enjoy as we serve each one of our real estate Clients is that extraordinary feeling in helping them find THEIR HOME!



Happy Spring 2014 from your Equity NW Properties Team!

Taking a Peek at Clark County Washington Real Estate Trends

by Dan Jensen 
Relocation Services Director - Equity Northwest Properties Group

2014 has not come in strong where real estate activity is concerned, although 2013 and so far this year, we're still showing a stable and gently growing RE marketplace.

December and January were soft months compared to the surprisingly robust start to 2013, but we've moved past the "soft" and are beginning to see greater strength in the numbers for both the prices of homes in our area, and for the number of sales each month.

There were 275 homes sold in January, a whoppin' 452 in Feb, and so far in Mar, nearly 200.

In addition...

The approaching strength of the RE market is probably best shown through Pending residential sales, with 228 New Construction pending sales and a huge - 584 pending existing home sales ready to beef up the 'SOLD' stats for the end of March and into April.

Warm sunshine will likely bring more anxious home buyers and real estate investors out into Clark County neighborhoods and financing interest rates in gently increasing home prices will make both sale of homes no longer under water and the purchase of that next great home much more likely through the coming 6-8 months.

Get Your Copy!!!

We'll be putting a full Real Estate Market Trends Report together for the first full quarter shortly and will have it available by the 10th of April.  If you would like a copy (no cost of course!)... let us know.

Happy St. Paddy's Day! Spring Fever for Real Estate

by Rod Sager (modified version of post from 3/14/2014 on his blog)

That venerable March holiday that brings out the Irish in all us is just around the Corner. This is a time to start thinking about the Spring real estate bump. St. Patrick's Day is not just a green beer holiday party. it signals the early tingles of Spring. The Vernal Equinox is just a few days after the Celtic Celebration The temperature begins to warm, the rains turn to showers, and the sun decides to hang out for more than a peek-a-boo moment. People start thinking about going outside. Driving the old hot rod or walking in the park. And they start looking at homes.

Here in the Pacific Northwest; the early portion of spring can be a fickle time for weather. It is an ideal time to start your real estate adventure. Listing a home in March can be quite successful as discussed in this post from two weeks ago. For buyer getting the process started early is also a good idea. As the month ends and April begins a surge of new listings will appear on the Market. The buyers that started early have the upper hand over those that dive in late. Either they secured their dream home before the "rush" or they eliminated homes, styles, features and neighborhoods they don't like and can concentrate on what they want and like. These buyers can pull the trigger when the spot the right house.

There is more to Real Estate Spring Fever than just the weather. Spring Fever catches all of us. The home and garden shows start up, the Farmer's Market and a whole slew of spring activities that get people thinking about their own home and perhaps new homes they would like to have. This is a great time to start looking at house to buy and or list a home for sale.

Foreclosure Rates are Down!

by Rod Sager (from his blog posted on Friday, March 7th 2014)

The rate at which banks are foreclosing on property has dropped substantially over the last twelve months. In general this is of course a very good thing indeed. The National Association of Realtors® has published an article on foreclosure data with which a link to the public portion is included below. Generally foreclosure rates run under 1% in a healthy market and many markets are already at or below 1% foreclosure rate.

Low foreclosure rates inspire buyer confidence and keep under market priced 'as-is' REO from undermining local prices. This can help move the market upward.

Not everyone however benefits from reduced foreclosures. Investors looking for non-financable homes at a bargain price are beginning to feel the pinch caused by a lack of inventory. The last thing a real estate investor wants is competition from an owner occupant buyer. Owner occupants typically use financing from a bank so investors can capitalize on cash only properties without a primary residence buyer inflating the price.

All of that aside, lower foreclosure rates is good for the market and good for the economy.



Public version of the NAR article on foreclosures at the link below.
Foreclosure Rates and Changes: Q4 2013 vs. Q4 2012

Why Listing a Home in March Works

by Rod Sager (originally published February 28th, 2014)

In most real estate markets there is a sales curve that peaks in the summer months and bottoms out in the dead dark of winter. I believe that this cycle is as mental as it is anything else. People tend to be less active in the winter, especially in northern latitudes with cold and miserable weather. It is no surprise that e-commerce performs well in the winter and bricks and mortar retail does not with the notable exception of December holidays.


Information data and chart sourced from RMLS

Our real estate market locally has a modest sales spike in the summer months of roughly 10% above the annual monthly average and about 10% under in the middle of winter. That represents a total swing of roughly 20%. In some markets where winter weather is truly brutal, I would imagine the spread is significantly greater and in sunny SoCal it is probably a flatter curve. The chart above shows this annual trend with a notable exception in 2010 where the fall off came early. The 2013 curve was a more dramatic seasonal curve than the statistical average I compiled since 2001. The 2011 curve is very typical when compared to most of the years since 2001. The 2013 curve is more like one I would expect to see in severe winter climates like the upper Midwest.

I think the best way to wrap your arms around this is to break the home buyers into two very broad classes. Those highly motivated to buy with external pressure and those buying because they can. So the first group is motivated by things such as a job transfer, loss of job, a new baby on the way, divorce, etc. This is external pressure and that makes someone willing to trudge through a foot of snow in the cold misery of January to look at houses or deal with the inconvenience of listing at a time they would rather stay indoors and visit with family.

The latter category is someone with a new job with higher income and maybe they think, "Hey, we can finally afford that dream house on five acres". Or perhaps they are empty-nesters looking to downsize. These buyers and sellers are much more likely to list or start the buying process when it is convenient. They are less likely to brave the wild elements of January looking at houses.

Anther reason there is a spike in sales in the summer is that families with school age children prefer to move over summer vacation when the kids are out school. This is especially true if the children will be changing schools after the move.

In a real estate market like this one; the biggest driver has been lack of inventory in that under median price range. When inventory increases that will relieve some of the pressure and could stabilize prices. If a seller has a home that is a little less than ideal; this is the time to list. This market is driven right now by move in ready, clean condition, updated properties. If a listing is a little outside those ideal parameters, the best way to sell it is in a market with less competition. As more listings come on the market toward May, the house can lose value and or position against superior properties that become available. March is a great way to tap into the "spring fever" of home buying a little ahead of the market. This is the time to get that slightly out of favor listing in front of buyers before a wave of potentially more desirable properties arrive on the scene.

If a seller has that perfect updated, move in ready median priced listing, then sometimes waiting till April can be a smart move so as to tap the increase in buyers actively looking that occurs in mid to late spring. Of course one way to get it both ways is to list in March at a slightly high price, gauge activity, get feedback and either sell at a high price or build a strategy based on the feedback and activity in March and April to position the listing ideally for May and June.

March Madness is amazing for college basketball and can be equally so for real estate.

The USDA and their Real Estate connection

by Rod Sager

The United States Department of Agriculture is an important national government agency. But this is a real estate blog; isn't it? What could the USDA have to do with real estate? That is a fine question and it has a very encouraging answer.

The USDA is interested in maintaining viable rural and farming communities. They have created a special loan product exclusively designed to help homeowners buy rural properties. This is not just for farmers. Farm communities are composed of the same essentials as an urban community. There are stores, gas stations, post offices, banks and other services that are needed to keep a town sustained.

The USDA loan offers qualified buyers in these rural communities the ability to buy real estate with no money down. This program also has very nominal mortgage insurance that is far less expensive than conventional or FHA products. There are of course some restrictions.

The loan must be on a property in a USDA designated rural place. Here in Clark County there is a large area of USDA qualified properties. In general everything North of 179th Street and NOT in the Battle Ground city limits is fair game. There is a USDA website that offers more detail about designated places and other restrictions, here. The map below shows the boundary area and again, areas inside the incorporated Battle Ground City Limits is out as well.

The USDA also has an income restriction. That figure is based on the local market and is not to exceed 115% of the federally established median for the local area. The current maximum allowed income for a family of four in Clark County is $83,950 gross per year. The USDA has a worksheet to help with eligibility requirements. There are additional benefits for over 62 or disabled persons. Click here for more info.

These loans are are limited to USDA funds that are subject to annual federal budget grants. They are the best no down product other than a VA loan. There are several quality lenders here in Clark County that are familiar with these great loans. In general the interest rates on USDA loans is a little higher than conventional and other government backed loans. The FHA loan however has a much higher mortgage insurance and that makes the USDA a superior product if the buyer meets the requirements. Buyers that are qualified VA are almost always better using their VA benefit. Buyers should speak with their trusted mortgage professional to get all the details of these loan products so as to make the best decisions for them.

This is just another great opportunity for home buyers to take advantage of low interest rates, reasonable housing prices and great loan products. It is a good time to buy real estate.

Just Curious...

by Dan Jensen

I've recently been asking on my ReloJensen blog what is the best wealth building pathway. As I was reading through news articles online this morning, I found this article and thought I'd share it here.

What do YOU think is the best, strongest, path to creating significant wealth?  Let us know.

http://www.bizjournals.com/birmingham/morning_call/2014/02/wealthy-americans-pick-real-estate-as.html

Your Equity NW Properties Team

What Does the Real Estate Marketplace Look Like in 2014?

by Dan Jensen

Last year brought stabilizing and "reasonable" increases over the year to the prices of homes throughout the USA. Looking ahead through the coming year, indications are for prices to rise more slowly in 2014 than they did in 2013, with new home construction to continue to grow as the prime market mover throughout the year.

There will be two very strong factors influencing the prices of homes for the coming year...

1.) Rising mortgage interest rates

2.) More homes coming onto the market

These two factors will work strongly together to chill the fervor of some, with the first element causing many buyers who have only been able to enter the home buying marketplace due to the exceptionally low interest rates making monthly payments manageable to have to back off and wait a bit.

The second factor will soften that blow to prospective buyers by keeping the growth in home prices soft through the year which continues to translate to "affordable" for many buyers.

New construction plays a very strong role also. Mid $200,000 priced pre-owned homes are having to compete for buyer attention with similarly priced New Homes, and many of the pre-owned homes are losing that battle. This element will certainly continue to impact pre-owned home sales and pricing for the coming year or more.

All in all, we're looking at slower changes, smaller increases, and more stability for the foreseeable future. These are all good things in many ways, although there's a ton of homeowners out there still fighting their way back to "above zero" equity. These homeowners would very much like to see a more robust housing market come into the picture, but clearly, NOBODY wants to see these more stable gains go the other way!

 

Real Estate with Realtor Rod Sager: Curb Appeal is Buy Appeal

by Rod Sager

Real Estate with Realtor Rod Sager: Curb Appeal is Buy Appeal: Yeah, yeah, I know that title is a cliche. But a cliche is often based in a hard reality. In my experience, people typically form strong ...

Short Trends Review - What's Been Happening with Real Estate at the 2013 Finish Line?

by Dan Jensen

2013 real estate activity experienced a ray of warm sunshine throughout the first 3 quarters of 2013, with interest rates remaining low and home prices beginning to firm up just enough to make it possible for more homeowners to bring their houses to the market place. Although home prices grew as a rule, the rate of increase was spotty across the country, with areas not originally hit so hard seeing stronger "recovery" in prices, while badly slammed areas, with so much further to climb, not recovering with nearly the same speed.

In the final quarter of the year, both price increases and closed sales began to slow. The approach of new health care requirements, some not-so-hot economic numbers in key arenas, and the annual focus on holiday planning and activities all played a part. Nervousness revisited the market, with prospective buyers taking their time decided IF they were going to buy a home, and becoming picky about which home they would settle for.

Interest rates were beginning to inch up in the final quarter of the year as well which always has an impact on buyers' ability to qualify for the houses they really want to own.

It will be interesting to see how early 2014 begins to unfold in housing markets across the country. We started 2013 with strength, and we're hoping, for the sake of the overall US economy, that we will see the same strength show up early this year!

Have a great first weekend of 2014!

Your Equity NW Properties Team