Budd Bay Blog

Featured Home: Log Home on 20 Acre Estate

2010-11-03T12:54:00.000-07:00

Stunning custom built lodge-style log home nestled on 20-acre estate. Superb details of craftsmanship. Home is app 3000sf on 3 flrs w/3 bdrms & 3 bths. The master suite & loft are on the upper flr, 2 bdrms are on the lower flr. There is a barn/stable for horses & a multiple roomed shop for the craftsman. The landscaping will please the most discriminating gardner & includes an orchard & grape arbor. Year-round meandering stream thru property. Half way between Portland & Seattle app 7 minutes from I-5

Bedrooms: 3.0 Baths: 2.75 Price: $615,000
MLS# 29072586
Reference # R-2410

For more information or to see home, contact:
El Sanchez, 360-791-2991

Prudential Olympia, REALTORS®

2630 Martin Way
Olympia, WA 98506

Featured Home: Immaculate Lacey Rambler

2010-04-20T12:49:00.000-07:00

Lacey, Washington

Home features 2 suites plus den with French doors. Big, bright and open floor plan in lovely neighborhood. Large great room with stone fireplace, high ceilings, dining area and lovely kitchen w/lots of counter space & ample nook plus desk area for computer.

Guest suite with access to full bath, spacious master suite with walk-in closet and beautiful private bath.

Lovely, well groomed yard with wonderful landscaping and nice sized patio. Garage with storage, all appliances stay. MLS # 60366.

For more information or to see home, contact:

Kim Rucker, 360-481-1863
Roberta Rudnick, 360-791-0688

Prudential Olympia, REALTORS®

2630 Martin Way
Olympia, WA 98506

Featured Home: Natural Beauty & Privacy

2010-02-22T11:55:00.000-08:00

Stunning Shelton, WA Home

There are simply no words to adequately describe the beauty of this property: Rolling hillsides covered with trees, and a winding paved road leading to a truly unique and special home. If you are looking for natural beauty and privacy, this is for you. This home boasts a huge open floor plan, soaring ceilings, bright open kitchen, high end finish level, bonus room, huge 8 car shop/garage with separate living area, an additional garage in back and just too much to list. It's simply a must see!
More photos & info

Bedrooms: 4.0
Baths: 2.75
Price: $459,000
MLS# 25521

Contact El Sanchez, 360-791-2991 or Roxanne Byrd, 360-480-2242

Prudential Olympia, REALTORS®
2630 Martin Way
Olympia, WA 98506

The Walkability Premium

2009-08-25T10:39:00.000-07:00

How much more would you pay for a home that is within walking distance of a grocery store, a library, or your workplace? A new nationwide survey finds that people were willing to pay from $4,000 to $34,000 for homes in walkable neighborhoods, and that people throughout the USA find walkable neighborhoods a premium home feature.

You can check the walkability index of your own neighborhood -- or one where you're thinking about buying -- on the website walkscore.com. That site not only gives information at the neighborhood level, it also ranks the most walkable cities in the US. The top 10 are:

What makes a place walkable? "The cities at the top of the Walk Score rankings have density, mixed use, transit, short blocks—and almost everything else on our walkability checklist," the website says. "Most importantly, these cities have lots of destinations near each address, which is the strongest indicator of whether people walk."

The website has done detailed workups only on the 40 largest US cities, so no Olympia stats, (though you can look up your walkability score no matter where you live). In Seattle, the top neighborhoods for walkers are:

1 Pioneer Square
2 Downtown
3 First Hill
4 Belltown
5 Roosevelt
6 International District
7 South Lake Union
8 University District
9 Lower Queen Anne
10 Wallingford

Happy walking!

Is silver the color of real estate recovery?

2008-11-20T10:05:00.001-08:00

Some real estate professionals and others are pushing for a unique solution to the current market slump: importing homeowners.

The idea is to encourage wealthy retired people from other nations to relocate to the USA, where they would buy homes and live out their lives while spending their savings on US goods and services. Some are calling this the "silver card" system, like the "green card" that is sought by people hoping to work in the USA.

The National Association of Realtors website says they have directed their staff "to explore the feasibility of creating and implementing a retirement visa or 'silver card' for foreign nationals who are over 55 years of age, have documented income and own U.S. residential real property." A report is expected at the NAR meeting in May 2009.

"Millions of dollars would get spent in this country. It would be a boon to the U.S. economy — to real estate, people buying properties, the automobile industry, the restaurant industry, retail, airline travel, furniture makers, there are so many dimensions," says John Mike, chairman of the Realtors Association of the Palm Beaches in Wellington, Florida.

Immigrant advocates, meanwhile, would say that wealthy foreigners should not get special treatment when thousands of others — including relatives of US citizens — are waiting for visas. And whether the "silver card" immigrants could be a drain on the US health care system is another heated question.

Five Tips to Help You Sell Your Home Fast

2008-11-10T14:55:00.000-08:00

There is no question that in many parts of the country, houses are currently on the market longer. As a seller, this slow-down means there is more competition for a limited pool of potential buyers. Consider the following five tips to place your home on the fast track to sale:

Price It Right
The first 30 days are the most critical. If your home is priced too high, interested buyers may never even tour your listing. The longer the property is on the market, the fewer the prospects. Deciding the value of a home isn’t an exact science. Yet, there is data to help you determine a fair asking price that is right on target. You may want to hire a real estate appraiser for an objective, unbiased estimate. Then consult with a real estate professional who can help you determine true market value based on a comparable market analysis, which will include recent home sale transactions as well as homes currently on the market. From your analysis, you may want to price your home conservatively to give it a competitive edge.

Make Your Home Irresistible
Unless they are looking for a fixer-upper, most homesellers are more likely to make a bid on a home that they can enjoy immediately. Therefore, you need to create an environment the buyer can’t resist. In other words, do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting that a buyer will want to buy that lifestyle for himself. Evaluate the home from a buyer’s point of view. An experienced real estate professional will be able to offer an objective view and will also know what buyers are asking for. Get your home in tip-top shape by making repairs and cosmetic improvements, and removing clutter. This may mean investing in a few upgrades to modernize your home’s look such as installing newer carpet and light fixtures and painting the walls a neutral shade.

Create Traffic
If you want buyers to see your home, you must first find the buyers. Work with your real estate professional to design a marketing plan that is flexible and capitalizes on your property’s most desirable features. Your strategy should include ways to reach buyers online and offline – such as word of mouth, the Internet, yard signs, direct mail, open houses and so on.

Go with a Professional
Selling a home is more than just putting a sign in your yard and having a listing on the Internet. And in a competitive market, you don’t really want to take the chance of making novice mistakes that can slow the selling of your home. By hiring a real estate professional, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues in your community. A real estate professional can offer worthy advice on pricing and staging your home based on their vast experience. Plus, there’s the added value of the peer-to-peer networking among real estate professionals, which can bring buyers and sellers together – sometimes even before the property goes on the market.

Offer Incentives
Offering incentives can be just the impetus a potential buyer needs to select your property over others. You may want to consider offering a carpet or paint allowance. Or, pay for a professional home inspection or a home warranty – and, depending on your market and budget, offer to pay some of the closing costs. Don’t be discouraged if there are competing homes for sale in your neighborhood. With just a few smart moves, you can turn a buyers’ market in your favor.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Do You Know Your Real Estate Facts?

2008-10-30T11:12:00.000-07:00

How well do you know the real estate market? Will today's Fed move to lower interest rates have a direct impact on mortgage rates? Has the market bottomed out yet? Is it a bad time to sell and a good time to sell? We can't answer all your questions here, but here are a few myths that need busting, and points that need making.

1. Peak-to-trough home price declines to date have been about 20 percent. Wrong. Measurements of home price declines can be skewed depending on which homes in which markets are being measured. For instance, the Case-Shiller Index, which indicates that home prices are down 20 percent, is heavily skewed towards homes with subprime loans and other distressed home sales. These troubled homes have experienced a steeper decline than home prices in general, says Yun, adding that both government data based on loans backed by Fannie Mae and Freddie Mac and data from the National Association of Realtors suggest much more modest price declines. TIP: If you're selling your home, the best thing to do is price your home right.

2. The much smaller number of new homes now under construction indicates the dismal outlook for the housing market. Wrong. The inventory of homes on the market is very high, so the last thing we need now is more new homes being built. Home builders have cut back sharply on production, which will help lower inventories and stabilize prices. The builders have done exactly what market forces are dictating under current conditions, Yun says. TIP: With many new homes completed but not sold, you can find great opportunities.

3. Even when the housing market recovers, home price growth will be only 4 to 6 percent per year -- much less than historical average returns for the stock market. Most buyers put less than 20 percent of their own money into a home purchase; this borrowing power can translate to a greater rate of return. This is how Yun explains it: Home price appreciation historically has been about 1 to 2 percentage points higher than consumer price inflation, which translates into about 4 to 6 percent per year. But this growth rate cannot be viewed as a rate of return like the stock market. The reason is that most people do not buy a home for all cash, instead making a cash down payment and borrowing the rest. The leverage this borrowing creates can magnify returns -- and losses. If price growth returns to historic norm, the price growth of 4 percent can easily turn into 20 to 30 percent rate of return if the home buyer makes a down payment of 10 or 20 percent. TIP: Get the fundamentals right when investing in real estate.

4. Impending baby boomer retirements and moves to small homes will cause a glut of homes on the market. Wrong. The first edge of the baby boomers has reached 60 years of age and the massive bulk of that generation will soon go into retirement, but far from trading down, many of these older homeowners are keeping their homes or moving to ones of comparable size. And even if more boomers do sell their larger homes in the years ahead, Yun points out, the rapidly growing U.S. population should absorb the inventory of existing homes on the market. TIP: Active seniors can find a retirement community that caters to their needs and interests.

5. The federal government takeover of secondary mortgage companies Fannie Mae and Freddie Mac is a bailout that will cost taxpayers bundles. Too soon to tell, says Yun. It's conceivable that taxpayers may have to cover some losses. It's also possible that the government takeover will result in no loss of taxpayer dollars. Even if taxpayer funds are used, the bailout would be preferable to the global economic problems that would have occurred if Fannie and Freddie had gone belly up. TIP: Uncle Sam is "bailing out" homeowners facing foreclosure. Find out more about the Hope for Homeowners plan.

6. The Federal Reserve controls mortgage rates. Wrong. Yun explains: The Fed's activities influence mortgage rates but don't directly control them. What the Fed sets is a very short-term interest rate called the Federal Funds Rate. Mortgage rates are determined by global savings as well as credit spreads and inflationary pressures. Over the past two years, the Fed has raised the Fed Funds Rate to 5.5 percent, and then cut it deeply to around 2 percent. All the while, the 30-year mortgage rate has averaged in the 6 to 6.5 percent range. TIP: Today's rates don't look bad compared to the 10 percent we saw in the early '90s and 17 percent in the '80s.

7. It's the wrong time to buy. Wrong. All real estate is local. For those who are financially and mentally ready to buy, there has never been a better time to be a buyer in many markets. An abundant selection of homes and historically low interest rates give buyers an edge over sellers. The recently passed $7,500 federal tax credit for first-time home buyers creates an added incentive. For someone with a long-time horizon, Yun says, there is very little worry about home values since homes have historically provided a solid foundation for wealth accumulation. TIP: Compare the pros and cons of renting vs. buying to see what makes sense for you.

8. It's the right time for everyone to buy. No. All real estate is local, and everyone is unique. Someone who is not emotionally or financially ready should not be forced or induced to join the rank of homeowners, even when a market presents good buying opportunities. Potential homeowners clearly need to understand that the decision to move up to ownership requires sacrifices, like saving up for down payment and elevating their credit scores. Homeowners who lose their home to foreclosure serve no one's interest, Yun adds. TIP: Take a good hard look at your financial status and create a homeowner's budget to see if you're ready to buy a home.

9. It's a terrible time to sell. Wrong. In markets where home sales are picking up strongly, a seller can easily get an offer if the property is priced correctly. Also, Yun says, for those looking to trade-up, selling low on an existing home is more than offset by buying the new move-up home at a lower price. When the market recovers, home price appreciation on the traded-up home will bring bigger bang for the buck. TIP: Homebuyers want bargains in this market. If you price your home much lower than your competition, you might end up with a bidding war.

10. With the advent of the Internet, more and more homes are being sold by owners (FSBOs), and real estate practitioners are becoming obsolete. Nope. According to Yun, the share of home sellers who choose to go it alone when selling their home has actually decreased from about 20 percent in the late 1980s to about 12 percent today. Even after these sellers successfully complete a transaction, only 4 in 10 say they would sell their next home without the assistance of a real estate professional. TIP: You don't have to sign a listing contract to talk to a Realtor. Ask family and friends for referrals and interview a few. You might even get some free advice.

(source: HGTV's frontdoor.com)

Foreclosure Stats Released

2008-10-23T10:29:00.000-07:00

Home foreclosures were down in September, according to a report released today but RealtyTrack. But the decrease of 12 percent from August still marked an increase of 21 percent over September 2007, and means that one in every 475 U.S. housing units received a foreclosure filing in September.

According to James J. Saccacio, chief executive officer of RealtyTrac:

Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures. Most significantly, SB 1137 in California took effect in early September and requires lenders to make contact with borrowers at least 30 days before filing a Notice of Default (NOD). In September we saw California NODs drop 51 percent from the previous month, and that drop had a significant impact on the national numbers given that California accounts for close to one-third of the nation’s foreclosure activity each month. Another example is North Carolina, where legislation was signed into law in August that requires lenders to provide homeowners and the state’s commissioner of banks a 45-day notice prior to filing a Notice of Default. We saw NODs drop 66 percent in North Carolina in September.

On the other hand, initial foreclosure filings in Massachusetts jumped 465 percent from August to September after being much lower than normal in June, July and August. That temporary lull happened after a new law took effect in May requiring lenders to give homeowners a 90-day right to cure notice before initiating foreclosure. But in September, about 90 days after the law took effect, initial foreclosure notices jumped back up close to the level we were seeing earlier in the year.

Read the report here.

How to Get Your Home in Selling Condition

2008-10-16T11:17:00.000-07:00

As a seller, your No. 1 goal is to sell your home as quickly as possible at or near the listing price. In today’s market, where there is much more competition for buyers, it is important to put your best foot, or in this case, best home forward because first impressions are vital.

Many of today’s prospective home buyers have busy lifestyles and are looking for properties that don’t require a lot of work. Therefore a home in move-in condition is much more attractive. Before placing your home on the market, you may want to invest in making needed repairs.

To get started, inspect both the inside and outside of the home. Take inventory of practical and aesthetic repairs. You may want to apply a fresh coat of paint on the walls, doors, and shutters. Clean the carpet and buff and polish wooden floors. Tighten and polish hardware. Repair cracks in sidewalks and driveways, and clean any stains on them. Replace missing or warped roofing. Clean or re-grout kitchen and bathrooms. Repair dripping faucets and drains or plumbing fixtures that aren’t operating.

Fix sticking doors and replace old locks and doorknobs. Replace old bulbs and broken electrical sockets. Replace cracked windows and torn screens. Repair broken fencing and reseal the deck. Clean up stains on the tiles and counter tops.

Some experts also recommend hiring a certified home inspector to thoroughly and impartially evaluate the property. (For a list of inspectors in your area, visit the American Society of Home Inspectors website, www.ashi.com, or ask your real estate professional for recommendations.) A standard report will review the condition of the home’s heating system, central air conditioning, plumbing and electrical systems, the roof, attic, walls, ceilings, floors, windows and doors, the foundation, basement and visible structure.

If there are recommendations for improvement, consult with your real estate professional in prioritizing the list of repairs.

Depending on your goals and budget, you may want to repair only items that could cause significant deterioration to the home, such as a leak. In addition, your local market conditions may dictate how extensive your repairs need to be. Let your budget and your real estate professional guide you.

However, be careful about major repairs. Sellers rarely recoup money on major remodeling projects, and you may want to save funds for your new home.

A home in good condition demonstrates pride of ownership. Taking the time to make small repairs to your home can go a long way in making sure that your home is presented to potential buyers in its best possible light. They also just might make the sale.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Making a Successful Move with Your Pet

2008-10-09T11:35:00.000-07:00

When making your moving plans, don’t forget to include your beloved pets. Although they present a new set of challenges, it doesn’t have to add to your stress if you take the following steps before your big move.

Visit the vet
Schedule a pre-move visit with your veterinarian for a checkup and to make sure that all vaccinations are current. Use this time to get copies of your pet’s records, a recommendation for a veterinarian in your new location, and possibly a tranquilizer to give your pet during transportation.

Research laws in new area
Research the requirements regarding animals in your new locality. Nearly every state has laws regarding entry of dogs, cats, horses, birds and other pets. For example, most states require interstate health certificates for dogs and horses coming from another state.

If you own an exotic animal such as a ferret or potbellied pig, check to see if it is allowed as a pet in your new city. Some states require an entry permit. You can obtain compliance information from the state veterinarian or other appropriate authority. It’s important to get this information well ahead of your move so that you can get any necessary examinations or documents.

Make sure your pet’s identity and rabies tags are current. You should also have a special travel identification tag just in case they become lost during the move. The tag should include the pet’s name, your name and new address, and an alternate contact.

Decide on transportation mode
Decide how you will be transporting your pet. Animals are not allowed on moving vans, so your choices are by car or air.

By car
If traveling by car, the American Animal Hospital Association suggests that you take your pet on short rides before the trip so that he can get accustomed to the movement. The day of the trip, don’t feed your pet for several hours before departure. It’s also a good idea to take him on a long walk before heading out.

Pack a travel kit to include food, food and water dishes, can opener, scooper, paper towels for clean ups, and plastic bags. You may also want to include a blanket to cover your car seats, plus treats and a favorite toy. If you are traveling with birds or other small pets, such as a hamster, make sure they are in a stable cage with proper ventilation. A kennel for cat or dog may also be a good idea.

If your trip will require an overnight stay, find out well in advance of your trip whether pets are allowed at the lodging of your choice. The website www.petswelcome.com is a great place to search for lodging that accommodates pets.

By air
Traveling by air definitely requires preplanning. Each airline has its own policy regarding pet transportation. In addition, there are federal requirements you must follow. For example, dogs and cats must be at least eight weeks old and weaned for at least five days. In addition, cages and containers must meet certain standards.

You need to decide if your pet will accompany you in the cabin or be checked as baggage, or shipped separately by air freight. Check with your airline to make sure that pets are allowed to travel in the cabin and obtain guidelines. The U.S. Federal Animal Welfare Act requires that pets traveling in the passenger cabin be in a carrier that can fit underneath the seat without blocking the main aisle. The container must remain stowed the entire flight.

If your pet will be transported as baggage or by freight, make shipping arrangements as far in advance as possible so that space can be reserved. It is recommended that you schedule a non-stop flight on a weekday. You also need to supply the air carrier written instructions for food and water.

Other precautions to take when transporting your pet by air include:

Before traveling, get your pet accustomed to the kennel in which it will be shipped.
Don’t give your pet solid food six hours prior to the flight. Providing water a few hours before the flight is advisable.
Write your contact information on the container and make sure your pet is wearing a tag with the same information.

The Federal Aviation Administration (www.faa.gov) and Department of Transportation’s (airconsumer.ost.dot.gov) websites have valuable information regarding traveling with pets.

Transitioning to new home
Once you are in your new home there are some things you can do to help ease the transition for your pet. If you have a dog, take him for a walk immediately so that he can become familiar with the new area. Cats, on the other hand, have a tendency to run away searching for their old home. They should be kept indoors for several weeks until they become comfortable in the new home and familiar with its scents and noises.

Veterinarians also advise that you bring water from your old home, because a change in water sources can sometimes cause your pet to become sick.

Like humans, pets are can become stressed when change occurs. By planning ahead, you can help to make sure your pet has a smooth transition to its new environment.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Foreclosures have many seeing red...

2008-09-23T13:56:00.000-07:00

Well, at least we're not dark red here in Washington State... or in Thurston County.

Click either image for the foreclosure report details.

Is it possible to "green" a McMansion?

2008-09-09T14:41:00.000-07:00

Green building is the buzz these days, from renewable-material flooring to super insulation to solar panels. But is green consumption really better for the environment?

Writing in High Country News, Monique Cole uses a case study of a 6,500 square foot home to question the application of earth-friendly techniques to "humungalows."

...how can size not matter when it comes to green building? The resources required to build and furnish a larger home need to be factored in, as well as the fuel expended and pollution created to transport those resources to the site. Big homes like the Abramsons' often are built far from urban centers. The rulers of these prairie castles must therefore burn fuel to get to work or an airport. Bigger homes also require more upkeep -- think of the landscapers, housekeepers, window cleaners and dog walkers who have to commute to service the home and its occupants. Adding solar panels and cork floors to one of these mansions is a nice touch, but is this going green, or is it green-washing?

The article is worth reading, the author torn between criticizing supersized homes and praising the instinct to build green.

... a small part of me feels bad about criticizing people like the Abramsons. They are, after all, helping to advance the sustainable building movement by paying an 8-to-15 percent premium to make their mansions greener. As in the case of organic foods, as green building materials become commonplace, prices will come down, and the rest of us will be able to afford them.

Still, if they're striving to be the "greenest," I can't understand why the Abramsons couldn't make do with a more modest house, say 3,500 square feet. That would still be twice the size of the median home in America 35 years ago.

I think that the "green" McMansion symbolizes what's wrong with how Americans have faced climate change and resource devastation. Everyone's looking for the silver bullets that will allow us to carry on our consumptive lifestyles just as we always have. But to be truly green, some sacrifices have to be made, such as giving up the home theater or that fourth bay in the garage.

complete article here

That Big "Vacancy" Sign

2008-09-02T14:42:00.000-07:00

It's a welcome thing if you're traveling a lonely highway late at night, eyelids drifting south. But the kind of vacancies corporate and residential landlords are facing as the economy slows to a crawl are less welcome.

US Census Bureau statistics show that 1 in every 35 homes in the US stands vacant, the highest recorded vacancy rate in history. The rental market is fairly strong, but Americans still seem reluctant to buy new homes in the continuing economic fallout of the mortgage loan crisis.

Commercial real estate faces a similar situation. New London, Connecticut, is facing a one-third vacancy rate among downtown storefronts (source: theday.com). Nationally, the suburban office vacancy rate is around 14 percent, which makes the 11 percent vacancy rate here in the Puget Sound region (source: thenewstribune.com) sound pretty rosy.

Deepening Deluge of Real Estate Resources

2008-08-26T14:48:00.000-07:00

We still recommend going with a real estate professional when it comes time to buy or sell a home, but if you're just probing the market or curious about the value of your home or others in your neighborhood, you've got an increasing number of online resources at your disposal. Just bear in mind that none of these have the complete information available from your local Multiple Listing Service, which your real estate professional can tap into for you.

For comparison, we checked listings in the popular West Olympia zip code of 98502. The local MLS shows 432 current home listings.

Roost (www.roost.com) show 376 listings in the same area; Trulia (www.trulia.com) lists 322 homes; Zillow (www.zillow.com) lists 434 homes -- which sounds impressive until you realize that their search criteria somehow included homes as far away as Shelton, WA; and Redfin (www.redfin.com) reports more than 500 results in a search for homes in the 98502 zip code. We're still puzzling over that number.

Obviously, you need to take these numbers with a grain of salt. As you do with home value estimates from Zillow or Eppraisal (www.eppraisal.com), which can vary by many thousands of dollars. So we'll stick with our advice to use these resources for rough research, then contact a real estate professional when it's time to proceed with a purchase or sale.

Should Homebuyers Use a Real Estate Professional?

2008-08-14T10:47:00.000-07:00

With just the stroke of a few keys, you can find myriad resources on the Internet to help you in your search for a new home. Besides property listings, you can find out about specific communities, schools and mortgage options. Prudential Real Estate has made three great resources – Environmental Profile, Property Profile and Value Range Estimate – available on prudential.com/realestate that provide detailed real estate information just by keying in a U.S. property address.

With this wealth of information at your disposal, do you really need a real estate professional to represent you? Absolutely.

Think of it this way, when you go to an unfamiliar place, sure you could do a self-guided tour. However, your tour is much more rewarding and enriching when you have someone who is familiar with the location to guide you along because he or she has inside knowledge on the history, culture and stories that you may not have otherwise received.

The same can be said about sales professionals. Their role is more than someone to drive you around from property to property. They can be a great resource, especially to homebuyers relocating from other communities. He or she knows the local area including home values, taxes, utility costs, and school data, and may even be knowledgeable about resources pertaining to your special interests or needs. For instance, should you require help relocating an aging parent with you, your real estate professional may be able to direct you to local services or organizations for the elderly.

A sales professional can familiarize you with the processes involved in buying a home, alert you to potential risks, help you determine how much house you can afford, explain alternative financing strategies, as well as provide tremendous moral support.

Another benefit is having a strong advocate during the negotiating process. Sales professionals can help you objectively evaluate an offer then work to negotiate a favorable contract. During the process, he or she will review the contract and obligations before you sign, explain how contingencies and release clauses work, and so on.

And something easy to overlook is our familiarity with the complexity and risks inherent in the process. In the years I have been practicing I have been continually amazed at how quickly a seemingly simple transaction can grow legally complex and risky. When complex questions arise, a sales professional can help you quickly locate an attorney or other licensed professionals whose services you may require, such as home inspectors, engineers, surveyors and lenders.

As your single point of contact, a sales professional can manage the entire transaction including coordinating inspections, keeping in touch with the other real estate professionals, managing the documentation for the loan process, monitoring deadlines associated with contingencies, providing applicable paperwork, estimating closing costs, and helping prepare for a smooth and uneventful closing.

If you’re about to begin the process of buying or selling a home, consider involving a real estate professional. When the stakes are high, it’s comforting to have a specialist by your side.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Choosing the Right Home and the Right Community

2008-07-10T12:22:00.000-07:00

If you are buying a home, one of the first things your real estate professional will do before taking you on home tours is interview you to determine the type of house you want, such as a 2,000-square-foot four-bedroom, split level with a formal dining room and two-car garage. But just as important is the type of community you want to live in. Knowing what your requirements are will help narrow your home search and save time.

To expedite the house-hunting process, start by making a list of the dream home factors that are most important to you and your family’s lifestyle. Consider style, location, proximity to work and schools, yard size, children in the community and, of course, price.

Price and location generally are the key factors you’ll use to identify the communities that best suit you. If you are moving within the same city, you may want to start your community search by getting in your car and exploring. There are also resources on the Internet that let you compare communities.

You’ll want to ask yourself critical questions, such as: Do you dream of something quaint and charming that can only be found in an older area? Or, do you prefer everything new? Are you willing to sacrifice size and space for architectural detailing? What about drive and commute time to the office and schools? Will you forgo the number of bedrooms and a big yard for proximity to a lake or other recreational areas?

Whether you have children or not, buying a home in a community with good schools is important. It not only adds value to your property, but also is an attractive feature when and if you decide to sell. There are plenty of resources available to get information about schools within the communities you are considering. Various Internet sites offer school reports and profiles. They provide statistical data such as graduation rates, college-bound percentages, and standardized test scores. You can also learn about special programs the schools offer. In addition to these reports, many schools have their own Web sites you can peruse. And of course you can always talk to people in the area or take a tour of the school.

Additional factors you’ll want to consider during your community search are crime, recreational activities, proximity to shopping and restaurants, and other specific family needs.

Once you’ve narrowed your search to two or three communities that fit your price range and lifestyle, make comparisons of price and sales activity. Your real estate professional can help you determine which communities are most sales-worthy at present, and which are more likely to continue to be.

There are many factors involved in selecting the right community for you and your family. Discuss your options with your real estate professional. This will provide the information he or she needs to help you find property listings to tour. Remember, a targeted approach to house hunting is less time consuming, less expensive and more efficient.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Home Prices Drop, Along With Consumer Confidence

2008-06-24T15:00:00.000-07:00

The Conference Board's consumer confidence index, released Tuesday, fell to 50.4 this month, the lowest reading since February 1992 and half what it was a year ago. The index dropped more steeply than expected from 58.1 in May. The consensus estimate of economists surveyed by Thomson/IFR was for a more modest decline to 56.5 for June.

Patrick Newport, an economist at Global Insight, expects the Case-Shiller index to fall another 20 percent to 30 percent. Prices should halt their descent sometime next year, he said.

"The numbers are going to get worse because inventory levels continue to be at record highs or near record highs," Newport said.

Much of the pricing pressure comes from foreclosures and so-called short sales, in which a lender accepts an offer less than the value of the mortgage. These distressed sales can be discounted by 20 percent to 50 percent, forcing home sellers to slash their listing prices to compete.

An industry group Tuesday said U.S. consumer confidence plummeted more sharply than expected in June to it lowest level in more than 16 years. The Conference Board's reading of consumers' expectations hit an all-time low. (Associated Press)

Tips for First-Time Homebuyers

2008-06-17T14:41:00.000-07:00

Home-price adjustments in markets around the country have opened doors of opportunity for many renters. If you are transitioning from renter to homeowner, the prospect of making such a large investment may be exciting, while at the same time overwhelming. But it doesn’t have to be. Here are six common mistakes to avoid.

1. Not understanding the homebuying process. Educate yourself. Find a homebuyer seminar that you can attend or research online. The U.S. Department of Housing and Urban Development Web site (www.hud.gov) has an entire section devoted to homebuyers with common questions of first-time homebuyers, mortgage and home-buying programs information, downloadable tools such as a wish list and home-shopping checklist, tips on selecting a real estate professional, etc. Likewise, Prudential Real Estate’s popular Web site, prudential.com/realestate, offers consumers brand-new tools for the homebuying process, such as free home environmental reports, Value Range Estimates and Property Profiles, among other resources.

2. Not asking questions. There are many facets and intricacies to the homebuying process, so although you may gain a basic knowledge, you will still have questions. Don’t hesitate to let your real estate professional know that you are new to the process. Make sure you choose a sales professional who is willing to spend time with you and walk you through the entire process. He or she will expect you to have questions at each step—from house hunting, to making an offer to the closing. Remember, this is one of the largest financial transactions of your life, so you want to have a clear understanding of what’s going on.

3. Buying on impulse. Don't feel pressured into making an offer on the first home you see. Buyers, especially first-timers, may be impressed by the first two or three homes they view. Look at a good selection. List the positives and negatives about each home. Narrow the prospects to three or four and then return for a closer look. When you decide to make a bid on a property, work with your real estate professional to get all of your questions answered before making an offer. But don't wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.

4. Looking outside your price range. Before beginning your home search, consider getting pre-qualified to so get an idea of how much you may be able to borrow. Use this information as a starting point in determining your price range. Then take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, homeowners insurance, utilities, private mortgage insurance (PMI) and maintenance.

5. Not planning ahead. Think about personal changes you are planning in the next five to seven years. For instance, are you starting a family, and if so, is the home large enough and will it continue to be? If this will be a starter home or if you think you’ll be relocating in a few year, you’ll probably want to pay closer attention to appreciation and resale value. If a double-income is necessary to qualify for financing and to make your payments, do your plans foresee an income sufficient to continue making payments?

6. Failure to focus on location. Don’t just focus on the house. Examine the community. Does it suit your lifestyle? Is the area safe, well-maintained, close to work, stores and schools? Find out about zoning and what new construction is planned on vacant land in the immediate area. Also consider the property marketability when it’s time to sell.

Above all, remember knowledge is key. No question is a silly question. Your real estate professional can be an invaluable asset throughout the process. Making smart home buying decisions will make the home-buying process less scary and your first home purchase a rewarding experience.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Can You Afford That House?

2008-06-03T10:41:00.000-07:00

Before you start searching for your dream home, you first need to determine a price range you can afford. According to the Federal Housing Administration (FHA), depending on the consumer’s current debt ratio, most people can typically afford to pay 31 percent of their gross monthly income for mortgage payments. For example, if you earn $50,000 annually, then your monthly income is about $4,167. Thirty-one percent of that is $1,292.

There are several online tools to calculate a monthly mortgage you can afford using factors such as your current monthly expenses, down payment and the interest rate. You can also work with a lender to get pre-qualified for a loan. This estimate will help you gauge how much money you may be able to borrow and the monthly mortgage payments.

However, the amount you are able to afford for a home loan should not be your only consideration for determining your price range. With homeownership come other housing expenses.

Utilities

The most obvious of additional housing expenses are utilities—gas, electricity and water. But don't forget about telephone, trash collection, and cable or satellite bills.

Taxes

As a property owner, you are responsible for property taxes. The rate will vary from city to city. In our community, the tax rate is 0.00972 percent. That means for a home with a market value of $200,000, yearly taxes will run $1,944. To get a general idea on how much the tax bill will be for a property, ask the seller for a copy of the previous year's tax assessment. Your real estate professional can help you refine these figures.

Association Dues

Another cost you may incur is homeowner association (HOA) dues. Most condominiums and some (residential developments/subdivisions/neighborhoods) have HOAs, which are legal entities, created to maintain common areas and enforce deed restrictions. As a property owner, you are required to pay the established monthly or annual homeowner association dues. Be sure you factor this cost into your budget.

Maintenance

You also need to consider the upkeep of your home. You should budget for seasonal maintenance such as lawn care, pest inspections and carpet cleaning, as well as unexpected repairs. The amount you budget will depend on the age of the home, as older homes tend to require more repairs such as installing a new roof, painting and replacing older appliances.

Insurance

Depending on the type of coverage and your area, the costs for homeowners insurance each year can be anywhere from a few hundred to thousands of dollars. And, if you live in an area that has high risks for flooding, earthquakes, hurricanes, etc., you may need supplemental insurance.

Remodeling/Upgrades

Unless the home you purchase is picture perfect, you’ll more than likely be adding your personal touch. Therefore, you need add to your housing budget the costs for remodeling and upgrades. According to “Remodeling Magazine’s” 2007 Cost vs. Value Report, the national average for a midrange minor kitchen remodel is $21,185; a bathroom remodel averages $15,789.

Even minor cosmetic fix-ups such as light fixtures, window treatments, carpeting and decorative cabinet knobs can begin to add up.

By determining all the costs associated with homeownership, you can go into your home search with a reasonable price range that will allow you stay within your budget.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Featured Home: Peaceful, quiet country living near town

2008-05-20T15:07:00.000-07:00

Unique custom home with cedar siding milled from the property. Huge 1500 sq. ft. shop/garage with10x14 door, plumbed for bathroom. Separate heated 10x12 hobby/office building.

This light, cheerful home has a great room floorplan and living room with soaring windows. Kitchen has lovely oak cabinets (some glass front), pull out shelves, newer glass top stove, and microwave. Amenities include heat pump, A/C, new well pump, and new 81 gallon holding tank. Room for horses. Lots of trees.

MLS#: 28073015
Bedrooms: 3
Baths: 1.75
Square Feet:
Built in 1993
Price: $387,500
more info

For more information or a tour, contact:
Barb Westall
Phone: 360-701-0977
Email: barb@prudentialolympiarealtors.com

Prudential Olympia, REALTORS®
2630 Martin Way
Olympia, WA 98506

Washington State Home Sales Down

2008-05-15T10:07:00.000-07:00

Housing sales cropped across Washington State during the first quarter of 2008, according to a newly released report from the Washington Center for Real Estate Research at Washington State University.

Thurston County saw a decline in existing home sales of 22.8 percent over one year ago, and a 54.7 percent drop in building permits.

Statewide, existing home sales fell 29.7 percent, and building permits were down 46.7 percent.

Thurston County homes fared better in holding their value, with a median resale price of $257,700 (up 1.1 percent from 2007) compared to the statewide median of $293,600 (down 2.4 percent from 2007).

Green Your Home for Earth Day

2008-04-22T14:33:00.000-07:00

Eco-friendly. Carbon footprint. Global warming. Energy-efficient. These catch phrases have become part of our lexicon as we’ve become more aware of our impact on the environment and our role in protecting it. As a homeowner, there are some simple, inexpensive steps you can take to make your home energy-efficient. Get started on the road to being “green” with these five tips:

Change Your Light Bulbs
By replacing just five incandescent light bulbs with compact fluorescent (CFL) bulbs, you can save $100 per year on electric bills while using up to 75 percent less energy and removing greenhouse gases from the environment.

Buy ENERGY STAR® Appliances
ENERGY STAR-qualified appliances, such as refrigerators, washers and air conditioners, meet a higher level of energy efficiency set by the Environmental Protection Agency and U.S. Department of Energy than standard models. According to ENERGY STAR, if just one in 10 homes used ENERGY STAR-qualified appliances, the impact could be compared to planting 1.7 million new acres of trees. And, switching to these appliances is not only good for the environment, but easy on your pocketbook. Although these appliances may costs more, you can reduce your energy bill by $80 per year.

Seal Up
Cracks and air leaks represent cash seeping from your doors and windows. Get rid of air leaks in doors, windows and other areas by caulking gaps and cracks. This will help decrease your heating and air conditioning bill. But make sure you use silicone sealants. Acrylic caulk tends to shrink, while silicone sealants are waterproof and won’t shrink or crack, creating less waste.

Use Less Water
Did you know that roughly 60 percent of a home's water consumption takes place in the bathroom, according to the California Urban Water Conservation Council? The largest culprit is the toilet, which accounts for 27 percent of your household supply every year. By installing low-flow toilets, showerheads and faucets, you can save thousands of gallons of water each year. In addition, replace leaky fixtures. That slow-dripping faucet can waste as much as 2,400 gallons of water per year.

Adjust the Thermostat
When adjusting your home’s thermostat, the rule of thumb should be: turn up the dial in the summer and down in the winter. Lowering the temperature by just one degree will reduce your electrical costs. And if you use a programmable thermostat, you can program your air-conditioning and heating systems to reduce output while no one is at home or at night while you sleep. Ceiling fans are also helpful in circulating the air to keep the room cool in the summer and warm in the winter.

Going green doesn’t have to be overwhelming or costly. By making just a few small changes within your home, you can help decrease energy consumption and help make the world a “greener” place.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Buyer's Market?

2008-04-04T15:33:00.000-07:00

For the fourth consecutive month, Thurston County home sales fell more than 20 percent on a year-over-year basis in March, the Northwest Multiple Listing Service reported today.

And while Thurston County homes prices largely have remained steady compared to other Western Washington counties, they rose a scant .01 percent in March from the same period last year, the data show.

In March, combined sales of single-family residences and condominiums fell 20.9 percent to 314 units from 397 units last March. Combined median prices increased .01 percent to $249,925 from $249,900, the listing service reported.

Total closed sales in March fell to 314, down from 397 for Thurston County in March 2007. New listings in March were also down, to 626 from 720 a year ago.

IKEA gets macro

2008-03-26T11:16:00.000-07:00

Apparently not content with filling the insides of homes, IKEA is moving in a new direction, providing entire houses.

BoKlok is a groundbreaking new concept to housing that involves providing space-saving, functional and high quality properties at a price that enables as many people as possible to afford a comfortable home.

First pioneered in Sweden by furniture company IKEA and construction firm Skanska, BoKlok has now arrived in the UK under an exclusive licence to property company Live Smart @ Home.

BoKlok, roughly translated, means ’live smart' and its concept is based on customers’ real needs and wishes – a safe environment, roominess and access to green space. BoKlok homes have a flexible, open-plan layout, high ceilings and large windows, giving the rooms a light, airy and contemporary feel.

IKEA's BoKlok homes are available only in the UK, Sweden, Denmark, and Norway. For now. More info at www.bloklok.com

See a virtual tour.

Now Is A Great Time To Buy A Home

2008-03-09T14:22:00.000-07:00

If you’re ready to buy a home and can afford it, now is a great time to buy. Mortgage interest rates remain very low. In many areas, buyers have a lot of inventory from which to choose and long-term homeownership continues to be one of the best ways for the typical American to build wealth.

Don’t let all of the negative media attention about the “mortgage meltdown” keep you from pursuing your homeownership dream. Mortgage industry woes are primarily limited to subprime loans and other types of creative and comparatively risky financing products. While the mortgage industry stalled briefly to reconsider its more exotic loans, there is plenty of conventional financing available for qualified homebuyers. Interest rates remain at historically low levels – still less than 7% for the typical, 30-year fixed-rate mortgage.

Indeed, the market has changed. It’s gone from a frenzied seller’s market to calmer buyer’s market. In fact, buyers haven’t seen a market this strong in years. When the national median home price dropped for the first time on record, the decline made huge albeit misleading headlines. For starters, there is no such thing as a national real estate market. All real estate markets are local and driven by local factors that include the local economy, housing supply and demand factors and other attributes like geography.

The slight decline followed years of unprecedented steep home price appreciation and the reality is that only a handful of markets experienced price declines. Corrections in markets that experienced exorbitant home price appreciation were expected and signal good news for buyers. According to 2007 third-quarter National Association of REALTORS® (NAR) statistics, the vast majority of the nation’s metropolitan areas showed rising or stable home prices with most areas experiencing modest gains.

Right now there are many homes from which to choose and in most areas buyers don’t have to deal with the harried and hurried competition of multiple bids. The changing market has also changed the inventory landscape to include fewer speculative sellers and a larger share of serious and motivated sellers.

Prospective homebuyers have some time to shop inventory and thoroughly compare home types and prices, amenities, neighborhoods, commutes and other important real estate-related features. And buyers have stronger price negotiation power as sellers compete for their attention by offering concessions or other incentives.

While all real estate markets have ups and downs, Americans continue to consistently build wealth through homeownership. According to the NAR:

· One average, the value of a home doubles every 10 years. During the past three decades, home values have increased an average of 6.6% per year.

· The average homeowner today has 36 times the wealth of the average renter. Homeowners are essentially paying themselves when they pay their mortgages and this means they’re building equity. Homeowners also benefit from some real estate-related tax write-offs like mortgage interest.

· Sixty percent of the average homeowner’s wealth is their home’s equity. For homeowners who’re in their homes for the long-term, home equity typically is their single largest source of wealth.

Because every market is different, it’s a good idea for potential homebuyers to contact a local real estate specialist to learn more about what’s happening in his or her community and real estate market. The bottom line in real estate doesn’t change – if you’re ready to buy and can afford to make a long-term homeownership commitment, it’s always a good time to buy!

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.