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!
real estate information, news and resource
Friday, May 30, 2014
Monday, May 19, 2014
The Value of a View
by Rod Sager
originally posted on Real Estate with Realtor Rod 5/16/2014
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.
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.
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.
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.
originally posted on Real Estate with Realtor Rod 5/16/2014
 |
| Norwood Street, Camas, WA |
 |
| 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 |
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 |
Friday, May 9, 2014
"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?"
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?"
Friday, May 2, 2014
"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.
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.
Subscribe to:
Posts (Atom)