Jacob's Blog

887 Chuckanut

2008-04-22T01:42:30Z

To buy, or not to buy, that is the question...

2008-04-22T01:28:08Z

Yes it's true. This market is challenging for sellers. In most parts of the country, the inventory has tripled. With so many choices out there, buyers can afford to be picky. Do you have the best product, or the best price?

Why are buyers waiting on the sidelines though? I've been selling real estate for years, and can't recall a better time to buy. There are 3 reasons that make me believe now is the time to write an offer.

1. Interest rates are extremely low. Let me say that again. Interest rates are extremely low. You can get a 30 year fixed rate right now for less than 6%. We haven't seen that in years. If prices go up, and rates go up, it will cost you thousands!

2. Inventories are high. I know we already touched on this above, but it's true. In a seller's market, you usually have very few listings and a lot of buyers. This is what creates a seller's market (supply and demand) Well we're currently in a buyer's market so the exact opposite is true. There are a ton of sellers and very few buyers. Buyers can find motivated sellers, favorable pricing, incentives, etc. If you don't get the price you want, you can say "next!" If you don't get the inspection results that you were looking for, again you can say "next!" Buyers are in charge.

3. Prices are flat. In some parts of the country, prices are up. In many parts of the country, prices are down. Take advantage of the situation. There are more foreclosures, more motivated sellers, more people that are relocating for work and need to sell, etc.

Bottom line, look at your situation and decide if now is the time for you to make a move. Of course homeownership is not for everyone, but don't wait because the national news media has painted a doom and gloom picture. Even if prices continue to decline, if rates go up, your payment will most likely be a wash. Also, I often hear people say "well I'm not going to buy because prices are suppose to drop 2%"

This may happen, this may not happen, but is it worth the risk of waiting? Personally, if I bought a house for $300,000 and it went down 2%, I'd say "so what"

So I paid $300,000 for a house that's now worth $294,000. Big deal. I'm still enjoying pride in ownership, tax benefits, etc.

Real estate is a great investment tool. Values double every 10 years statistically. Our population continues to grow, and people need a place to live. Real estate is a sound investment that has made millions of people wealthy.

To learn more, please visit my website at www.jaybaklund.com

Jacob Baklund, Bellingham Realtor

No time to waste. No time wasted.

2008-04-22T01:05:58Z

As an agent, I wear different hats. When I'm a listing agent, it's my goal to get the most amount of money for my sellers. When I'm the buyer's agent, my goal is to get my clients the best deal possible.

In any event, real estate values are determined by comparable homes. These are homes that are similar in size, location, ameneties, etc.

Realtors and appraisers use comparable homes to determine a fair market price. All too often, a seller wants to overprice their home just to see what happens. Well what happens is the house sits and sits and does not sell. Yes you can always lower the price, but that information is available to agents, clients, etc.

When a house is sitting, a buyer often thinks, what's wrong with it? Also, if a buyer sees that the price has been lowered, they might think the seller is not at their bottom number yet. Therefore they submit a low offer, or no offer at all.

You need to price according to the comps. If you shoot for a higher number, you'll be competiting with superior homes. Put yourself in the buyer's shoes. If you were a buyer, you would look at every home that fits your criteria. From there, you would put an offer in on the house that makes #1 on your list.

Also, try not to be insulted when a Realtor gives you their professional opinion of value. Realtors do not pull numbers out of the sky. They go by the data. It's not invented. If you own a 3 bed-2 bath home in Bellingham and your neighbor recently sold for $300,000 then your house is most likely not worth $325,000. The same is true in the other direction. You won't want to list for $250,000. It never the agent's intentions to insult you. They're trying hard to get your business, and you should thank them for their honesty. You don't want an agent that "lies" just so they can overprice your house and ask you for a price reduction later. That's a dis-service!

Selling a home requires team work. You and your listing agent want the same end result, and that result is a SOLD sign in the front yard.

Statistically speaking, the longer a house sits the less desirable it becomes. Don't attract the wrong buyers for your home. If you price too high, you'll quickly be cut from the buyer's list because they'll be looking at better homes for the same amount of money.

There are several things that can and should be done if you're in the market as a buyer or seller. These helpful tools can be found on my website. Please go to www.jaybaklund.com and click on "buyer/seller resources"

If you have any questions, at any time, put my professional services to work for you!

Jacob Baklund, Bellingham Realtor

My house won't sell! Why?

2008-04-22T00:35:21Z

It's April 2008. A lot of sellers are asking this question. The truth is, regardless of market conditions, there are ways to get your home sold.

There are really 3 reasons why a house sells. Price, condition and location. As the seller, you control 2 out of the 3.

It's the listing agent's job to market your property for sale. If your listing agent has it posted in the MLS and on the Internet, then you're well on your way. Statistically speaking, 80% of all real estate sells this way.

Other tools that should be used are open houses, yard signs, flyers, office tours, paper printed ads, etc.

If your house is on the market, and no one is looking at it, you need to lower the price.

If your house is on the market, and people are looking at it but not writing offers, then you need to lower the price.

Now is not the time to be greedy. We're in a buyer's market. Also, everything is relative. If you sell for less right now, you'll pay less when you buy a replacement home.

If you wait until the market turns, you'll probably sell for more, but you'll also pay more when you go to buy.

If you have any questions regarding the process, please visit my website and click on "seller resources"

I've been selling real estate successfully for years. Best of luck!

Put cell phone rumors to rest

2008-04-22T00:08:04Z

Is it true that cell phone numbers will soon go public?

You might have seen an email going around that states cell phone numbers will be going public.

The "fear" is that you'll get sales calls, and pay for the minutes used. Well before you freak out, be sure to visit www.snopes.com which has researched the rumor and labeled it false.

This information has been brought to you by Jacob Baklund, Bellingham Realtor.

Vancouver BC and the 2010 Winter Games

2008-04-22T00:02:30Z

So much has been made about Vancouver BC getting the Winter Olympics in 2010.

My personal and professional opinion is that the jury is still out.

Most people have not lived in Bellingham for 30+ years. I have. I still remember when Expo came to BC. This was in 1986. Everyone said that Bellingham would be discovered, and it would be the new real estate hot spot. People came. Some stayed, and some just visited.

The truth is that no one knows what will happen to Bellingham in 2010. Whether the Olympics "improve" Bellingham or not remains to be seen. What I do know is Bellingham is a wonderful place to be, regardless.

As I've gotten older, I've found a new appreciation for Bellingham (the town in which I live, work and play)

Bellingham is a beautiful city. One that most people would be envious of. We enjoy all 4 seasons, but it never gets too hot or too cold. Yes the rumors are true, it does rain quite a bit, but it's a trade off. Because of the rain, we have some of the greatest green trees on earth. Other scenery includes mountains, rivers, lakes, wildlife, etc.

Our parks are bar none, and our quality of life continues to get noticed on a national level.

Crime is pretty much non-existent, the air is super healthy, the people are friendly, and it's not too crowded.

The schools have an excellent reputation and you won't find a better place to raise a family.

All in all, Bellingham gets a 10 on my list. If you have any questions regarding Bellingham real estate, please visit www.jaybaklund.com

Hotel Bellwether

2008-04-21T23:48:45Z

The Hotel Bellwether, located on Bellingham Bay, is a 66 room European retreat. This very high end hotel also offers a top notch restaurant, the Harborside Bistro. The Hotel Bellwether has amazing water views. You'll enjoy your stay very much, whether you're visiting for business or pleasure. For more information, please call 360-392-3100 or see http://www.hotelbellwether.com/.

Bellingham WA continues to get noticed as one of the top cities in the nation to live, work and retire. With Canada to the north and Seattle to the south, Bellingham is very centrally located. East of Bellingham is outstanding Mt Baker and to the west you'll experience the famous San Juan Islands.

Bellingham's climate is ideal. You'll experience all 4 seasons, but it never gets too hot or too cold.

Excellent schools, no crime, great air quality, and not too populated are just some of the reasons Bellingham continues to get noticed on a national level.

The following information has been brought to you by real estate expert, Jacob Baklund. For more information please visit http://www.jaybaklund.com/

The top 5 reasons real estate does not sell:

2007-06-19T22:45:06Z

The top 5 reasons are listed below. When I say real estate, I'm referring to single family residences, condos, vacant land, manufactured homes, multi family and commercial.

In this example, lets say you have a house on the market but there has been little or no activity. If the house is listed with a successful agent, at a successful brokerage, I would consider these important factors:

Price. The number 1 reason a house does not sell is because the asking price is too high. Pricing a house too high is detrimental to only one party, and that party is the seller. Statistics show that you get the most amount of activity in the first 30 days. You're far better off pricing at fair market value than above market value. Buyers are going to shop, just like you'll do when you're the buyer. A buyer is going to submit an offer on the best house, for the least amount of money. Pricing is extremely important. Hire a qualified agent and ask for a free CMA report. This report will show comparable homes, much like an appraisal. Comparable homes are homes that are similar in size, square footage, number of bedrooms, number of bathrooms, year built, condition and location.
Make sure your listing agent is making the house easy to show. All houses should have an electronic lock-box and listing agents do not need to be present for all showings, unless there's a reason to be. Realtors are held to a strict code of ethics so let buyers and agents tour.
The condition of the home is the 3rd reason a home may or may not sell. Buyers want a house that's ready to be lived in, and does not require a bunch of work. Of course there are situations where a house is a fixer, but then you'll need to price it accordingly. Fixers usually attract investors, which are looking to pay rock bottom and then make a profit by improving and flipping (reselling)
A home that's being sold "as is" can be a real turn off to potential buyers. If a home is being sold "as is" buyers might suspect that there's something wrong with the home. Remember, after the inspection is performed, you'll have the opportunity to decide what you're willing to correct and what you're not willing to do. A good listing agent will advise their seller. Pre-inspections are becoming more popular. This is where you have a home inspection done prior to putting the house on the market. From there, you can advertise that your house has been inspected, and all findings have been corrected.
Marketing is the final reason homes do not sell. By marketing, I mean lack there of. Statistically speaking, almost 80 percent of all real estate sells because of the MLS and internet. It's extremely important that you have a presence there. The other 20 percent consists of open houses, yard sign, flyers, brokers opens, an office tour, paper printed ads and word of mouth.

Bottom line: There's only so much a listing agent is able to do. If your house has been put out there, and people are not coming, then you should strongly consider a price reduction. If your house has been put out there and the buyers have come but not bought, then you need to look at price and/or condition.

If you have any questions, at any time, we'd be more than happy to help!