First, I would like to say that I am bias. I love Anacortes and all it has to offer. I own property here in town. And I also truly enjoy being a real estate agent. Despite this obvious sway, I can also say that I have all the reasons in the world to be so optimitistic and enthusiastic about the future of our town and its property values. Let us initially discuss some background information.
Stats show currently that there are close to 300 residential type properties on the market, with about 20 of those under contract at any given time. Just over 6% of the active listings are actually being sold. This number itself is not great by any stretch, but seeing that we are just coming out of holiday season, it is currently raining and grey, Countrywide just posted a $422 million loss, foreclosures nationally are frequent, and the upcoming election seems to have people pitted against one another, that stat really isn't too bad. And for all you buyers out there, it means negotiate, negotiate, negotiate.
Six months ago, prices here in town on most listings were simply too high. Sellers had 2004 and 2005 sale price expectations; which simply could not sustain itself. It has taken the past year for most Sellers to realize that the gains of 20, 30, and close to 50% in equity over the past few years had plateaued and for agents to develop the capacity or 'cohones' to walk away from unrealistic listings.
As listing agents, we are in the market of getting homes sold for the most amount of money, but in the least amount of time. Yes, we would hope to make as much money as possible for our clients, but the market can bear only so much. Agents are now in the business of 'firing' their home owners. That is right. No showings in 45 days is NOT a reason to keep dreaming that your price is fair. Lower it to a more acceptable market value, or you will have to list elsewhere. If you do not like the valuation of your home prior to list, my rule of thumb is that I will add no more than 10% to my recommended price for a maximum period of 30 days. No contract by that time and we agree to bring it down to my valuation minus 1%.
Yes, sometimes you can catch a big, uneducated fish, but mostly you simply cause your home to become stale and miss out on those that would have otherwise bought it.
For Buyers of the '04 and '05 years, you were lucky to even get into a house if you offered less than 3% less than list price. Up until recently, if you weren't starting at least 10% below list, you were simply using the wrong agent. Now, multiple offer scenarios are different, of course, and if you have to have the home, you have to pay for it too; I understand those emotional ties.
With agents pricing homes better, Sellers are beginning to realize that if they lived in the home, enjoyed it, and can recoup their total montly payments, then they have made a pretty decent investment. Some who are making an extra 5-10% are just getting gravy on top of it also. And those who are breaking even are doing just that.....breaking even. No big deal.
So, it is 2008 in A-town. Here are my reasons for being so optimistic in their most tersely cogent form:
1. Pricing has been, and is currently being, adjusted by everyone involved in the transaction. The listing agents are sticking to their valuations and not allowing sellers to be the dictators of price. Sellers are educating themselves on what the market can bear and allowing for more negotiations during contract disputes.
2. There is a large variety of homes available in every price range which lends itself to appealing to most anyone in the market for a new home. Single family homes, condos, apartments, waterfront mansions....we have it all.
3. Interest rates are historically low. They may go lower or higher, or they may remain stable. But with the upcoming election at hand, no one can know what could happen with a change in administration. I am in the process of refinancing now, and if I had not already just purchased an investment property a year ago, I would be buying again. Lock in that low rate as soon as you can.
4. And even though the Southwestern markets are hit by falling sales prices, we have our own turnover center at NAS Whidbey Island, 15 miles away. This base continues to thrive regardless of economy or national sways, and it will be having the first EA-18 Growlers arrive mid-summer. With that new aircraft comes a entire new cadre of officers, enlisted and government contractors. Many have lived in the hustle bustle of Lemore, CA and Virginia Beach, VA with a undying desire to break the mold. The Puget Sound is their beacon and that will be continuing for the forseeable future.
My final recommendations are as such:
Sellers: trust your agent, but also hop online and research yourself. http://www.anacorteshomebuyer.com/ is my personal site for all NWMLS listings in all brokerage houses. Look at your competition, in addition to the previous solds, and make your home the 'no brainer' pick out of the direct comparable properties by avoiding over-valuation.
Buyers: don't over-extend yourself. http://www.hsh.com/ is a good site for quick mortgage loan calculations. You must add taxes and insurance to the results. Determine where you want to be monthly, plan ahead for the purchase by building a savings account of at least 3 months of the planned mortgage payment, and while doing this.......find an agent who makes you comfortable and who speaks your language; to educate, sooth and make your home search a truly fun experience. There are lots of homes so don't rush the process and remember: you make your money when you buy your home.....NOT when you sell it.
Cheers,
T
Thursday, January 31, 2008
Food, Drinks, Coziness: The Majestic Hotel
Pay attention, 99, heed to all, etc.......The Majestic Hotel is doing it right!!!
Come 4pm on a cool, crisp Anacortes day and we all tend to hit that lull. Whether due to bloodsugar or simply the nature of the body, that feeling happens more than not for most. Here is my solution, plan a wonderful outing with your significant other to the Majestic's Happy Hour from 4-6 during the weekdays. Great prices on drinks, a wonderfully new twist to the menu contributed by the town's own Billy Ray, and a cozy fire to balance your Pinot Grigio.
What causes me to now draw attention to this outing? Three words: The Mixed Grill! Holy Cow.....Amazing!
What is this you ask? Well, for $11.50, you and your partner can enjoy what I consider the best deal in Anacortes, food-wise. A massive surf and turf smorgasbord of protein and veggies, including steak, chicken, smoked sausage, battered fish, shrimp, brocolinis, carrots, onions, green beans, and polenta. This is all surrounding your choice of delightful mashed potatoes or shoestring fries........Normally it would cost you $17, a deal in itself, but the happy hour discount or early bird special for those that do not partake of the vino, is a true steal!!! My girlfriend and I have made it a date now each week.
So, get your workout in early, plan an after school stayover for your kids, or just simply show up. I promise, you will not be disappointed and will more likely plot out your calendar days for this very warm and pleasant experience. Support another one of Anacortes' fine establishments.....head on into the Majestic and allow them to further solidify your love for our great northwestern seaside town.
Cheers.
T
Come 4pm on a cool, crisp Anacortes day and we all tend to hit that lull. Whether due to bloodsugar or simply the nature of the body, that feeling happens more than not for most. Here is my solution, plan a wonderful outing with your significant other to the Majestic's Happy Hour from 4-6 during the weekdays. Great prices on drinks, a wonderfully new twist to the menu contributed by the town's own Billy Ray, and a cozy fire to balance your Pinot Grigio.
What causes me to now draw attention to this outing? Three words: The Mixed Grill! Holy Cow.....Amazing!
What is this you ask? Well, for $11.50, you and your partner can enjoy what I consider the best deal in Anacortes, food-wise. A massive surf and turf smorgasbord of protein and veggies, including steak, chicken, smoked sausage, battered fish, shrimp, brocolinis, carrots, onions, green beans, and polenta. This is all surrounding your choice of delightful mashed potatoes or shoestring fries........Normally it would cost you $17, a deal in itself, but the happy hour discount or early bird special for those that do not partake of the vino, is a true steal!!! My girlfriend and I have made it a date now each week.
So, get your workout in early, plan an after school stayover for your kids, or just simply show up. I promise, you will not be disappointed and will more likely plot out your calendar days for this very warm and pleasant experience. Support another one of Anacortes' fine establishments.....head on into the Majestic and allow them to further solidify your love for our great northwestern seaside town.
Cheers.
T
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