Well after taking a mental break from real estate I've decided to renew my efforts with laser focus.  In terms of my day-to-day efforts and marketing focus I'm just going to do Monroe WA.  There are too many listings and too many opportunities available in the greater NW area to really be an expert in anything...not enough time in the day.

So, the first step is to see, one by one, the 200+ listings in Monroe and get back to really knowing a local market and being familiar with the inventory.  I'm starting with vacant properties.  On Halloween I went to the following homes and if you have questions about them...you know, the things you can't see in a picture, like if the home smells like wet dog...just ask.  Why Monroe?  It's where I live and where my kids go to school!

October 31, 2009

17011 156th PL SE Monroe, MLS: 29141991

16941 Allison St. SE Monroe, MLS: 29110538

15137 175th Ave SE Monroe, MLS: 29129057

17787 150th St SE Monroe, MLS: 29108995

17851 160th St SE Monroe, MLS 29045635

16658 Ladd St. SE Monroe, MLS: 29133947

15891 Lakeview Ave SE Monroe, MLS: 29031301

Well, I just recently had some decent (price) listings (at least I thought so) "Expire", so I thought I'd see if it was just me or just my company or what was going on.  Of course I don't have to look to know what kind of market we're in, but I'm curious about the real numbers.

My focus was Snohomish County:

Expired Listings (I clicked on residential, manufactured, condo, farm & ranch, multi-family/Snohomish County and left all the other fields blank):

2004- 3355 Expired

2005- 2289 Expired

2006- 2669 Expired

2007- 5399 Expired

2008 (so far)- 5131 Expired

I think it's safe to say that with a couple months left in 2008, we will pass 2007 in total "Expired" Listings.  So this is happening to people from every company and it's happening often.  What now?....homes are still selling every day.

Maybe a one year listing contract.  Maybe staged homes.  Maybe homes priced ahead of the negative value trend.  Maybe several buyer incentives (closing costs, home warranty, etc.). Maybe sell differently (like an auction).  Maybe different terms (lease opt. or owner contract). 

Maybe some people just shouldn't list right now.  Unusual ideas that work are welcome.

 

 

My buddy just emailed the link below to me...comment away...

http://www.youtube.com/watch?v=H5tZc8oH--o

 

If you have ever wondered why it cost so much to sell a house you are not alone.  From real estate commissions to unavoidable fees such as Title, Escrow and Taxes it all ads up.  There are many ways however to make the experience more affordable and cut costs by as much as 5%.  If you would like a free consultation call or email "Coach" Ben @ 425-736-5600 or coachben11@yahoo.com.

Right now, we are seeing a lot of Western Washington buyers hesitating because of all of the negative news they hear from around the country.    It is very important for them to know that the Seattle area is likely to be the exception to the bad news, and that means that now may be a very good & unique opportunity to buy.   Here are a few recent articles that help tell the full story from the analysts:   1. The most undervalued real estate markets in the country ranked:  

http://promo.realestate.yahoo.com/most_undervalued_real_estate_markets.html

 

 

2.  America's most stable real estate markets:

 

 

http://www.forbes.com/2007/10/01/property-stable-homes-forbeslife-cx_mw_1001realestate.html

 

 

3.  Realtor Association economist points to Seattle as one of the few exceptions:

 

 

http://seattletimes.nwsource.com/html/businesstechnology/2004012642_realtor14.html

 

 

4.  More Seattle market analysis:

 

 

http://seattlepi.nwsource.com/business/339982_condo17.html

OK, so a lot of buyers and sellers are asking me how the current market is and of course the answer is, "it depends", but here are some facts I just pulled up:

In 2007 in Snohomish County (so far) there are over 3600 cancelled listings (residential/condo).

In 2007 in Snohomish County (so far) there are over 3400 expired listings (residential/condo).

Are prices softening? Yes.

Have we seen the end? Don't know.

Is inventory continuing to increase? Yes.

So, a lot of people are saying it's a Buyer's market and to an extent I agree with that, but if you are looking at your purchase as an investment be careful.  You wouldn't want to get a "great deal" at say $300K only to have your home value be $275K in 6 months.

Having said that, real estate is a good investment over time and you've got to live somewhere!!!...I guarantee your rent isn't going down!

Just be smart, know your market and use a real estate professional you trust to help you navigate through this difficult time.

Recently I have had the opportunity to work with several clients (buyers) trying to do a lease option.  There are many advantages to this type of transaction for both buyers and sellers depending on the situation and the agreed upon terms.  In the cases I've been working on the buyers have been seeking a lease with option to purchase, because their current credit status makes it impossible to qualify for a decent loan.  Renting an apartment was not a great option because of family size, pets and the accumulation of a lot of "stuff"...they needed a house.  Each client also recognizes the benefit of homeownership and equity build-up through market appreciation.  The nice thing (at least in theory) about a lease option is that the buyer locks in a price today.  So, if the home goes up in value over during the period of time they are leasing, they have the ability to realize that gain when if/when they purchase.

Here is the tip:  You need to really understand your market before locking in a price.

What if you locked in at 350K today and your monthly lease was about the amount of the owners current mortgage payment, but then the market "corrected" over the time of the lease and the house ended up with a new market value of 315K?  Could this happen and what would be the issues for the buyer in this situation?

YES IT COULD HAPPEN! Do I have a degree in economics? NO.  Do I have a crystal ball to be able to see what's going to happen with our market? NO.  All I have is data and the ability to research like anyone else.  I'm seeing some evidence of price reduction as supply increases and demand decreases.  I'm seeing a lot of cancelled and expired listings. I'm seeing some buyers unable to afford homes as lenders get a little more conservative in their loaning of money.

What are the issue?  1) The "option" ends up being a bad option (you don't want to buy the house for 350K that is now only going to sell for 315K).  Could you have been doing something else with your money during the period of the lease that would put you in a better financial situation? 2) If you base your monthly rent on the cost of the seller's current mortgage you could end up paying an inflated monthly payment by the middle or end of the lease...money down the tube...ouch.

Still though, whether you are a buyer or a seller a lease option could be great if the price and terms make sense.  Just consider the market conditions and seek the council of your real estate agent to help you make a good decision.

If you are reading my blog and you are NOT in the mortgage or real estate industry, this is an open invitation to all Snohomish (town of/rural...anyone with a "Snohomish" address) professionals...I am looking for strategic partners to meet weekly for a networking group.  The type of person we want is someone who is highly ethical, very motivated, commited, in their industry for the long-haul, focused on service and accountability and fun to be around.

In addition, we would need to find someone not overly connected within the community...reason being is because we will be focusing strongly on exclusive support/referrals within our group. 

This is an excellent opportunity to get in with a great group of people who are go-getters looking to better their business, strengthen their client services and meet great people.

Give me a buzz if you are in Snohomish and this sounds like you: 425-736-5600