As the title suggests, this is merely a follow-on to the previous post describing the tweak in property interest during the third quarter of this year. Now into the fourth, there have been some truly sweet deals on which my savy Buyers have pounced. Here are some of the details:
1. 2.5 Acre estate-like property just south of Coupeville on Whidbey. Almost 3,000 sqft of finished living space, featuring radiant floor heat, stainless appliances, slab granite, master on the main, and 4 bedrooms. Detached 2-car garage with bonus room on top.....a superb piece for under 480k....a great purchase!
2. A current sale of a dilapidated fixer home...2 bed/ 1 bath in need of just about everything, yet the lot size is 12,000 sqft! A detached two car garage and well on the property inside the Anacortes town limits! $125,000....craziness! Instant equity with this one especially seeing that my buyer is a true fix-it samurai.
3. Lastly, a purchase I made myself.....1400 sqft 3 bedroom/ 1 bath bungalow in town on an 8400 sqft lot with potential view if future dormers are installed....owner financing with a 5% note amortized for 30 years, with note due in five years.....in other words, just pay down for five years, then get a mortgage to pay off the Seller in full. Price: $158,000!!! I truly stumbled upon it.
So what is the point? If you are thinking of purchasing even in the least, call up your agent and start the viewings.....Even if you are thinking of not making a move for a few months, this will hone your ability to identify true value versus price. Online photos are good, but can be deceiving and you gain so much from merely walking through a place. After viewing a handful, you will then know exactly what you are looking for so that when you happen to walk in that front door, the home speaks to you and you know within 30 seconds that it is the one for you. Then you can move quickly since you are already astute regarding market inventory and pricing.
Please don't hesitate to visit www.AnacortesHomeBuyer.com for all MLS listings with all brokerages. Call or write with questions and don't be shy.....allowing me to get you into homes for showings is the fun part of the biz.
Good luck.
Tuesday, October 20, 2009
Thursday, September 17, 2009
The Summer Spike - How Long Will It Last?
After a dismal real estate winter and very lukewarm summer start......August and September are proving to be quite worthwhile regarding home and land sales in Anacortes and surrounding communities.
Instead of 'working my sphere', which for me would be flying more at the base, I have set aside my instructor hat for some good 'ole new homebuyer education, home viewings and purchases.......With the depreciation tweaks in home values, new tax credits, and low rates.....home buyers have hit the streets and new first time buyers are leading the pack.
Prior to August, typical sales had centered in the below 300k range and vacant land sales were practically non-existent. But the flatline of summer was shocked back into a slow but steady pulse as my phone starting ringing for appointments and website contacts came in from the cyberspace abyss.
With three homes under contract for the month of September alone....I feel this trend will continue at least to Thanksgiving. Buyers have been watching, waiting and viewing the net for the homes of their liking to slowly churn downward in price....then, having been patient, they pounce on them with quickness and decisiveness.....leading to quick negotiations and fast closings. Lenders have been expeditious and accurate and so the real estate world on our quaint northwestern island has come to life.
My question though is for how long? I firmly believe that people will always buy and sell. If rates hike up, prices may come down.....the market always has an answer so that the cycle continues.
With this however, here is my concern....2005/2006 still had quite a few of the option arms being sold to buyers which allowed many to get into homes they otherwise would not have been able to afford. The downfall of this is that many were 5/1 adjustable rates and that five year mark starts coming due now!! Assuming rates remain low.....no big deal. Some of the loans had percent hikes regardless of the prime rates. Once it comes due, there is an automatic x percent increase per month in the loan amount....payable each month. This coupled with a future major spike in rates could leave us all holding the bag....or should I say....mailing in our keys.
Now most of us are upstanding individuals who pay our bills on time and do not wish to lose our homes. However, if your home value is now at, below or extremely below what you paid on the home....what is your incentive to continue to pay an interest- only monthly payment that doesn't pay down the home and, in turn, breaks your financial back. You rid your savings to hang on for a year or two only to then ..... mail in the keys.
All in all, we do not know what will happen. If rates stay low....the economy turns around....jobs become more available, future rate increases might be easily dealt with. If they do spike and banks, in turn, can balance out the increase with other terms.....things may be dealt with. Regardless, something will have to give, and as I stated previously.....the market tends to correct itself......a tit for tat so to speak. At least, that is both my belief and my hope.
So, for now, my recommendation is to try to refinance if able with as little money down as you can. Hound your mortgage lender or bank, religiously. If you can afford some money out of pocket, then keeping mortgage insurance out of the monthly payment will be worthwhile. If not, at least by consolidating two mortgages into one, or getting rid of the arms for a set payment even with PMI....you will be better able to mantain a solid consistent budget without the burden of worrying where we and this real estate market and economy are truly going.
That's a wrap. Good Luck.
Instead of 'working my sphere', which for me would be flying more at the base, I have set aside my instructor hat for some good 'ole new homebuyer education, home viewings and purchases.......With the depreciation tweaks in home values, new tax credits, and low rates.....home buyers have hit the streets and new first time buyers are leading the pack.
Prior to August, typical sales had centered in the below 300k range and vacant land sales were practically non-existent. But the flatline of summer was shocked back into a slow but steady pulse as my phone starting ringing for appointments and website contacts came in from the cyberspace abyss.
With three homes under contract for the month of September alone....I feel this trend will continue at least to Thanksgiving. Buyers have been watching, waiting and viewing the net for the homes of their liking to slowly churn downward in price....then, having been patient, they pounce on them with quickness and decisiveness.....leading to quick negotiations and fast closings. Lenders have been expeditious and accurate and so the real estate world on our quaint northwestern island has come to life.
My question though is for how long? I firmly believe that people will always buy and sell. If rates hike up, prices may come down.....the market always has an answer so that the cycle continues.
With this however, here is my concern....2005/2006 still had quite a few of the option arms being sold to buyers which allowed many to get into homes they otherwise would not have been able to afford. The downfall of this is that many were 5/1 adjustable rates and that five year mark starts coming due now!! Assuming rates remain low.....no big deal. Some of the loans had percent hikes regardless of the prime rates. Once it comes due, there is an automatic x percent increase per month in the loan amount....payable each month. This coupled with a future major spike in rates could leave us all holding the bag....or should I say....mailing in our keys.
Now most of us are upstanding individuals who pay our bills on time and do not wish to lose our homes. However, if your home value is now at, below or extremely below what you paid on the home....what is your incentive to continue to pay an interest- only monthly payment that doesn't pay down the home and, in turn, breaks your financial back. You rid your savings to hang on for a year or two only to then ..... mail in the keys.
All in all, we do not know what will happen. If rates stay low....the economy turns around....jobs become more available, future rate increases might be easily dealt with. If they do spike and banks, in turn, can balance out the increase with other terms.....things may be dealt with. Regardless, something will have to give, and as I stated previously.....the market tends to correct itself......a tit for tat so to speak. At least, that is both my belief and my hope.
So, for now, my recommendation is to try to refinance if able with as little money down as you can. Hound your mortgage lender or bank, religiously. If you can afford some money out of pocket, then keeping mortgage insurance out of the monthly payment will be worthwhile. If not, at least by consolidating two mortgages into one, or getting rid of the arms for a set payment even with PMI....you will be better able to mantain a solid consistent budget without the burden of worrying where we and this real estate market and economy are truly going.
That's a wrap. Good Luck.
Tuesday, June 2, 2009
Summer '09
Well, at least weather-wise, it appears summer is upon us. Only a few more weeks of school is left, Memorial Day has come and gone and now people are hopefully gearing up for whatever types of vacations they can afford.
Monetarily, this year's events have squeezed many families and those who live in wonderful Anacortes are no different. I know my business with Windermere has taken a serious hit, as well as many other businesses in town. Extra savings is now used to the pay the bills and most of the fiscal goals those of us set for ourselves will have to be met next year.
With that, I merely wanted write to say that ultimately, many of us are in it together. Car dealers, Real Estate brokers, Restauranteers, Small novelty shop owners, the list goes on.....
There are many out there that have continued to live within their means and good for them. They have managed to be tenacious in the savings and also thrifty in their spending, especially when times are good since that is where you can truly save.
For those who are merely hanging on to whatever assets they have month to month, please stay focused and motivated. For those who have or who are on the brink of job loss, try your best to get on the job search bandwagon. Try to broader your ideas of the types of jobs you truly would like to do and turn the negative into a positive in the job search of something enjoyable.
Regarding home sales, since that is my primary field, I am not really sure what is going to happen this year. All in all, we had very few home sales in the first quarter with a decent spike in sales in the second. Many of the contracts have been in the under 350k range, yet some homes in the above 500k range have sold also.
If you have a home you are wanting to sell or currently have it listed, price is everything. No ifs, ands or buts........people want security in the fact that whatever home they buy now, they can live in for a few years and at least not lose money. They want what they consider a decent deal and I do not blame them. So, remember this when pricing your home.
You want the most money for your house for sure, all of us do. But, price too high and ultimately the home becomes stale, and you end up selling alot later for a lot less. Or for those who plan to purchase elsewhere, if you delay selling until the market is back on the rise.......the rise is a benefit when selling, but a hinderance when you get back into the market by buying during the rise also.
Lastly, there are many decent opportunities out there with regards to real estate and other entities as well. Cars prices have come down dramatically. Boat prices also. My overall thoughts are the despite the economic squeeze, try to work hard, be as thrifty as possible, but do not close your eyes to good deals that may come your way.
Good luck.
Troy
Monetarily, this year's events have squeezed many families and those who live in wonderful Anacortes are no different. I know my business with Windermere has taken a serious hit, as well as many other businesses in town. Extra savings is now used to the pay the bills and most of the fiscal goals those of us set for ourselves will have to be met next year.
With that, I merely wanted write to say that ultimately, many of us are in it together. Car dealers, Real Estate brokers, Restauranteers, Small novelty shop owners, the list goes on.....
There are many out there that have continued to live within their means and good for them. They have managed to be tenacious in the savings and also thrifty in their spending, especially when times are good since that is where you can truly save.
For those who are merely hanging on to whatever assets they have month to month, please stay focused and motivated. For those who have or who are on the brink of job loss, try your best to get on the job search bandwagon. Try to broader your ideas of the types of jobs you truly would like to do and turn the negative into a positive in the job search of something enjoyable.
Regarding home sales, since that is my primary field, I am not really sure what is going to happen this year. All in all, we had very few home sales in the first quarter with a decent spike in sales in the second. Many of the contracts have been in the under 350k range, yet some homes in the above 500k range have sold also.
If you have a home you are wanting to sell or currently have it listed, price is everything. No ifs, ands or buts........people want security in the fact that whatever home they buy now, they can live in for a few years and at least not lose money. They want what they consider a decent deal and I do not blame them. So, remember this when pricing your home.
You want the most money for your house for sure, all of us do. But, price too high and ultimately the home becomes stale, and you end up selling alot later for a lot less. Or for those who plan to purchase elsewhere, if you delay selling until the market is back on the rise.......the rise is a benefit when selling, but a hinderance when you get back into the market by buying during the rise also.
Lastly, there are many decent opportunities out there with regards to real estate and other entities as well. Cars prices have come down dramatically. Boat prices also. My overall thoughts are the despite the economic squeeze, try to work hard, be as thrifty as possible, but do not close your eyes to good deals that may come your way.
Good luck.
Troy
Thursday, January 22, 2009
Its A Good Deal, 2009 #1
I am always looking for value in things; real estate, clothes, cars and especially food and beer. Although I do have a bias for the Brown Lantern, there are many establishments in town that want to show off their stuff by providing their customers with tasty meals at affordable prices. Here is my first Good Deal Tip of 2009: El Jinete's Taco's al a carte!
Now, there isn't anything special in itself about a hard or soft shell ground beef taco. But, add a Tuesday lunch or evening to it, throw on some cheese, lettuce and tomatoes (for those who like them) and now you have a meal that is tasty, filling and truly cost effective.
Tuesday's are Tecate Tuesdays at El Jinete and for $2.50 per beer and $1.95 per taco.....you can have some chips and salsa, two taco's, and a Tecate for little over $6 without tax. Monetarily, you can even beat the five dollar footlong if you forget the brew.
So brush off the hamburger desires one night, put away that P, B and J.....And get on down the El Jinete. Times are not easy and they may even get a little worse in the months to come, but let us all endeavor to capitalize on deals such as these by promoting them and taking advantage of them. We all want our restaurants to succeed and if this is what you can afford, get down there and give them your appetite and your money. You will not be sorry.
More deals to come so stay tuned.
Cheers
T
Now, there isn't anything special in itself about a hard or soft shell ground beef taco. But, add a Tuesday lunch or evening to it, throw on some cheese, lettuce and tomatoes (for those who like them) and now you have a meal that is tasty, filling and truly cost effective.
Tuesday's are Tecate Tuesdays at El Jinete and for $2.50 per beer and $1.95 per taco.....you can have some chips and salsa, two taco's, and a Tecate for little over $6 without tax. Monetarily, you can even beat the five dollar footlong if you forget the brew.
So brush off the hamburger desires one night, put away that P, B and J.....And get on down the El Jinete. Times are not easy and they may even get a little worse in the months to come, but let us all endeavor to capitalize on deals such as these by promoting them and taking advantage of them. We all want our restaurants to succeed and if this is what you can afford, get down there and give them your appetite and your money. You will not be sorry.
More deals to come so stay tuned.
Cheers
T
Monday, January 5, 2009
2008 Year in Review, 2009 Walking the Bull
2009 has arrived. Anacortes rang in the new year with about two weeks of snow prior to the ball dropping. Probably the biggest snow in a decade to hit the Puget Sound area lent itself to a jump on holiday lounging, skiing, sledding, and what many us so often desire.....a truly white Christmas.
2008 undoubtedly was an ebb and flow year at best; with it being primarily an ebb year for most. Production for my real estate business was down about 20% and for some considerably more. The economic woes of a country that had been living the highlife from a lending perspective over the past years beared their true weight. This burden came at time when the country was pondering its new Commander in Chief, the continuing war in Iraq, sliding home values and the upcoming holiday season.
Well, many economists claim the worst is behind us, although some forecast an even bleaker 2009. Here in Anacortes, there have been a few business closures and a handful of foreclosed homes. Prices have slid and much of the gains in the '03 to '05 years have all but washed away. Current values are becoming more reasonable and there are starting to be deals on the market again.
Prices having dropped and potentially plateued, mortgage rates at historic lows, and Sellers reaching close to their wits end with excessive days on market all spell out one thing......a buyer's market. If you are thinking of purchasing, have been sitting the fence for some time, I feel that now is time to start your active searches. Even if you haven't totally determined you are ready to make the plunge into a new home or a second home or even a rental....it is totally worthwhile to call your agent and just window shop at the very least. Homes that you see and that attract you now, may very well tweak a final time or two and having looked at them prior will enable you to pounce when the deal is subjectively ripe for you.
Remember, you are not the only one watching and waiting and usually when a specifically desirable home gets into a certain price point area......it goes and goes quickly. Last you want to do is to not prepare for that and assume no one else will want the same home. Ultimately by not doing so you merely trade in all gains in negotiating for a multiple offer scenario that drives the price back up. Believe me...it happens.
I personally have been shopping again after taking a 3 year hiatus from investment purchasing. I see acreage prices having dropped, and there are even worthwhile homes and condos in Anacortes for under 200k. All good signs.
My last thought for you is this: none of us in the real estate industry really know when the bottom of the market has come until it is well passed. Once the 'herd' of the nation is riding the upswing bull market....the true gains have already been had. My only suggestion is take this bull by the horns now for a nice easy ride. You make your money when you buy, not sell, and the time to buy is often passing while many are keeping that fence warm.
Good luck and please, don't hesitate to call or write with comments and questions.
Troy
2008 undoubtedly was an ebb and flow year at best; with it being primarily an ebb year for most. Production for my real estate business was down about 20% and for some considerably more. The economic woes of a country that had been living the highlife from a lending perspective over the past years beared their true weight. This burden came at time when the country was pondering its new Commander in Chief, the continuing war in Iraq, sliding home values and the upcoming holiday season.
Well, many economists claim the worst is behind us, although some forecast an even bleaker 2009. Here in Anacortes, there have been a few business closures and a handful of foreclosed homes. Prices have slid and much of the gains in the '03 to '05 years have all but washed away. Current values are becoming more reasonable and there are starting to be deals on the market again.
Prices having dropped and potentially plateued, mortgage rates at historic lows, and Sellers reaching close to their wits end with excessive days on market all spell out one thing......a buyer's market. If you are thinking of purchasing, have been sitting the fence for some time, I feel that now is time to start your active searches. Even if you haven't totally determined you are ready to make the plunge into a new home or a second home or even a rental....it is totally worthwhile to call your agent and just window shop at the very least. Homes that you see and that attract you now, may very well tweak a final time or two and having looked at them prior will enable you to pounce when the deal is subjectively ripe for you.
Remember, you are not the only one watching and waiting and usually when a specifically desirable home gets into a certain price point area......it goes and goes quickly. Last you want to do is to not prepare for that and assume no one else will want the same home. Ultimately by not doing so you merely trade in all gains in negotiating for a multiple offer scenario that drives the price back up. Believe me...it happens.
I personally have been shopping again after taking a 3 year hiatus from investment purchasing. I see acreage prices having dropped, and there are even worthwhile homes and condos in Anacortes for under 200k. All good signs.
My last thought for you is this: none of us in the real estate industry really know when the bottom of the market has come until it is well passed. Once the 'herd' of the nation is riding the upswing bull market....the true gains have already been had. My only suggestion is take this bull by the horns now for a nice easy ride. You make your money when you buy, not sell, and the time to buy is often passing while many are keeping that fence warm.
Good luck and please, don't hesitate to call or write with comments and questions.
Troy
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