Spring, when many sellers will put their homes in the market, is just around the corner.

Sellers are Getting their Houses Ready

I have several buyers putting their homes on the market right now in states, far, far away.  They are preparing for their relocation to Bainbridge Island. These buyers often inquire about the PROCESS. The process of timing and orchestrating the sale, and then the purchase, and then the move.

Some folks buy first, then sell.  But many, perhaps most clients, will sell their current home first and then buy and then move.

Not All About the Money . . . my relo story

As I recall my relocation story, it brings up the important point that the sale is not only about the offer amount or the number, but also about the TIMING.

When we put our house on the market on May 15th we had not bought a house yet.  But, my husband was already working in Seattle and subletting a house near UW (that I never even saw, btw).  I had stayed behind in Sacramento to button up things at work and let the kids finish the school year.  My lofty goal was to be in Seattle by the end of summer.  In a ideal, get super lucky scenario, by the 4th of July (because the 4th of July Parade is so great on Bainbridge).

We priced our home pretty aggressively.  We took the price opinions of the agents in my office and priced it about $20k less (I was an agent in CA too). We were really LUCKY and got an offer the first weekend.  We sold our house for $5k less than asking with two other offers waiting in the wings.  Our buyer was very easy to deal with, which is whey we chose her.  It was not all about the sales price for us.  We looked at who could close first, who would likely have no issue with financing, and who would be sane to deal with during an inspection.

After we had our inspection and negotiated the repairs (we did about $2k in repairs related to termite damage under the house) the inspection contingency was removed.  At that point it was possible to buy a house contingent on ours CLOSING.  Not contingent on SELLING.  Big difference. We already had our buyer in escrow.  A Contingent Sale means your house is still Active on the market and you are still looking for and needing a buyer.

After our inspection hoopla was over I flew up to Bainbridge for a weekend, looked at lots of houses (18 to be exact)  and picked one.  That was the end of May – I mention the timing because the inventory was high, the selection was pretty good.  We closed on our house the 25th of June in CA and then had the funds to close on the 26th in Bainbridge.  Closings can be done, in some cases, the same day – called a simultaneous close.  We had packed our stuff onto the big moving truck on the 20th and it took 7 days to get up to WA from CA.

Living out of boxes was not my idea of a vacation.

Limbo Land

During the week that everything we owned was on a moving truck I stayed with my parents in CA. The kids and I lived out of suitcases like we were on vacation.  I was in the same city and working at the same office, but I have to admit that time was the hardest and most emotional week for me. My house was sold, but I was living just minutes away at my parent’s house trying desperatley to imagine what my new life was going to look like.  A hard limbo spot.

Touching Down

But things were much better once we got to the other side and started the great unpacking and settling-in stage. My husband met the movers on the 27th and started the big unload.  We flew up the next day.  The rest . . . a new roof, removal of three walls, new paint in and out, the remodeling of a kitchen and three bathrooms, the construction of a new fence, five garden beds, a chicken coop, and a deck . . . are history.  The new studio is almost history too (the studio construction will be covered in a blog post at some point this year where I will also explain why we almost, but didn’t move last summer).

During our relocation to Bainbridge a lot of things fell nicely into place for us, some by chance, but a lot by rigorous planning.  We did have an agent up here as our buyer’s agent and of course we had inspections and negotiations on our new house.  Even though I too was an agent I valued our local agent’s insight about neighborhoods and island ins and outs.  Our agent helped us make a smart, good decision about where on the island to buy.  As we say in real estate – location, location, location.

Hindsight

We made it to Bainbridge Island by the 4th of July.  We look back and think maybe we could have gotten $20k more out of our old house, but I really could not have handled working full time and being a single parent in CA while my husband was relaxing up in Seattle  (just kidding).  We could have played our interested buyers off each other, been cocky sellers.  But having been in the biz I have seen that backfire many times.  Sellers end up selling for much less than they were offered by their first potential buyer.

Our Goal

And now, we are happily on the other side, making Bainbridge home.

We attained our goal and that was huge and meaningful for our family.  And even though the dominoes fell into place, the experience was still challenging and emotional.  On that 4th of July weekend our friends from Olympia came up to visit.  They had moved up to Olympia from CA a few years ahead of us.  They toasted us for being brave enough to take the leap – go after our goals.  And looking back I feel like we did do something a lot of folks don’t do because it simply is not easy.  After running my first 10K I remember hearing someone say less than 1% of the American population can run a mile. I sort of feel like we ran our marathon.  Things were ok for us in Sacramento, life was easy. Change is hard.  We knew Bainbridge would be better in the long run, but relocation is not easy, it is work.

But, now, past the finish line, we look over our shoulders and feel a huge sense of accomplishment that we made this move for our family.  We did the hard work to change course; we live in a better community, our kids are in a better school system, and most importantly . . we commute on ferry boats instead of freeways.

The radical shift in the real estate market we were hoping for in 2011 never arrived.

2011 Year End Review

As real estate agents we entered last year full of optimism and hope that 2011 would usher in numbers far different from what we saw in 2010.  But, by the second quarter we realized there were not going to be any major positive shifts in our real estate market. We rebounded a bit in the third quarter and the fourth was slightly better than the same period in 2010.  But, overall, a pretty steady repeat of 2010, with home prices dropping even more.

In the end, the market mirrored its actions of the past few years, going up and down without ever really hitting its stride. The number of homes sold has increased each year since the 2008 trough (which is good news), but we are not seeing numbers anywhere close to where we were a decade ago . . . nor are we likely to for another decade.

Blakely Elementary Students harvesting potatoes at HeyDay Farms. The potatoes were used in school lunches throughout the district.

Reshaping our Community

Even though the number of homes sold has not changed much, there are a number of profound shifts taking place in our market. We are seeing more investors and families returning to our marketplace. The drop in our prices, while painful to sellers, has made our community more affordable to buyers. We are also seeing buyers with different “agendas” than before. Real estate is not the short-term money machine it was in the past. People are buying because they want the non-financial benefits that homeownership offers. They’re buying because they want to live in particular homes and build lives there. The amazing congruence of low prices and incredibly low interest rates is allowing people to recognize they can buy more than they could have in the past. They feel confident their purchases will make sense in the long run. They do not have the inflated financial expectations we had in the past. They are realistic about the costs, but prefer buying over the risks of renting.

Cyclists unloading at the Bainbridge Island Ferry Dock.

Looking Around the Corner to 2012

The long held idea of the “perfect home” has changed for many people.  ”Perfection” used to be much larger, cost a lot more and typically come with a lot of property to maintain.  As we inch out of this recession many new definitions are being written and we see that clearly illustrated in many of the homes purchased in 2011. As we turn the page to 2012, “perfection” for more and people means less debt, less commute, less to maintain.  Simple, really.

In 2012 I expect to see even more buyers shopping for and buying homes that are smart, efficient and practical, yet still charming, special and inspired.

Happy New Year – see you out there!

#10 - Fairview Avenue

#10 Fairview Avenue

Original List Price $388,000

Sale Price $394,000 (yes, sold over asking price)

Days on the market 3

Date sold 8/31/11

This home caused quite a flurry.  A flurry of offers.  Eight total.  This Wing Point neighborhood cottage designed by architect Roger Long is cozy, yet, bright and open.  The garden is literally a work of art. The trend towards the “not-so-big” house and the proximity to the ferry made many buyers jump for the opportunity to live in this artistic in-town cottage for under $400k.

• Click here for more photos and the full listing detail.
• Click here for a blog post about the Wing Point Neighborhood.
• Click here for homes currently for sale in this neighborhood.

#9 - New Sweden Avenue

#9 New Sweden Avenue

Original List Price $449,000

Sale Price $415,000

Days on the market 50

Date sold 9/14/11

This home is in the sunny historic farmland area of Eagledale. This home and location oozes charm.  Not a surprise weddings have been held on the property and for a buyer who wants old world charm in good condition, these homes are hard to find in this price point. Another unique opportunity.

• Click here for more photos and the full listing detail.
• Click here for a blog post about the Eagledale Neighborhood.
• Click here for homes currently for sale in this neighborhood.

#8 - Sunrise Drive

#8 Sunrise Drive

Original List Price $498,000

Sale Price $490,000

Days on the market 19

Date sold 11/28/11

A home by this builder also made my Top 10 list back in 2008. The Rolling Bay Land Company builds healthy homes and this one was designed by Studio Hamlet.  The design is as modern as the construction is Green.  From blown-in wool insulation to an 1,100 gallon rain cistern, this home is a smart collection of ideas, inspiration and innovation.  And Green innovation at any price point is admirable, but for under $500k it list-worthy!

• Click here for more photos and the full listing detail.
• Click here for information about the sister home, which is STILL FOR SALE.
• Click here for a blog post about the Rolling Bay Neighborhood.
• Click here and here too for homes currently for sale in this neighborhood.

#7 – Cherry Avenue

#7 Cherry Avenue

Original List Price $525,000

Sale Price $500,000

Days on the market 20

Date sold 12/12/11

Another Wing Point home. And another Craftsman style home. And . . . another home that saw multiple offers.  Close to the ferry, on the Wing Point Golf Course and in an active price range. Warm woodwork and cozy spaces.  Although the home is just over 2,000 square feet, the finishes, quality, and location live large.

• Click here for more photos and the full listing detail.
• Click here for a blog post about the Wing Point Neighborhood.
• Click here for homes currently for sale in this neighborhood.

#6 – North Town Loop

#6 North Town Loop

Original List Price $525,000

Sale Price $525,000

Days on the market 22

Date sold 2/16/11

This home has what many buyers consider the perfect package. It has two of my favorite amenities: a Mother-in-law space over the garage and walking proximity to schools.  Quality woodwork and finishes with an open floorplan and just the right size at about 2,300 square feet. No surprise it lasted less than a month.

• Click here for more photos and the full listing detail.
• Click here for a blog post about the North Town Woods Neighborhood.
• Click here for more homes currently for sale in this neighborhood.

#5 – Fox Cove Lane

#5 Fox Cove Lane

Original List Price $578,950

Sale Price $530,500

Days on the market 20

Date sold 9/22/11

A sophisticated woodsy retreat near popular Battle Point Park. This home sold in the high $800k’s just a few years earlier.  Deeded water access, a detached office connected by a breezeway, and a home with a smart floor plan, extensive woodwork with clever built-ins, fenced gardens.  An amazing value.

• Click here for more photos and the full listing detail.
• Click here for a blog post about the Battle Point Park Neighborhood.
• Click here for homes currently  for sale in this neighborhood.

#4 – West Port Madison Road

#4 West Port Madison Road

Original List Price $720,000

Sale Price $675,000

Days on the market 978

Date sold 2/28/11

A home built by Bill Corbin was also on my list last year. Bill Corbin builds them fresh and modern with clean lines.  This home sits on five wooded acres – with trails and bridges.  A brand new home with concrete counters in the kitchen and sleek modern tiles in the bathrooms. A large home in a retreat setting.

• Click here for more photos and the full listing detail.
• Click here for more homes currently for sale in this neighborhood.

#3 – Millstone Place

#3 Millstone Place

Original List Price $749,000

Sale Price $730,000

Days on the market 8

Date sold 3/10/11

Farmhouse perfection in Hidden Cove Estates. For someone looking for something a little different, this was it.  Some homes look like farmhouses on the outside, then just have vanilla finishes.  This home brought the classic charm of an old farmhouse inside with a quality distressed painted white cabinets in the kitchen, pine woodwork throughout the home, a sunroom and covered porches.

• Click here for more photos and the full listing detail.
• Click here for homes currently for sale in this neighborhood.

#2 – Hansen Road

#2 Hansen Road

Original List Price $1,349,000

Sale Price $1,349,000

Days on the market 324

Date sold 12/22/11

I think this home tops the list for home I got the most inquires about over the course of the year. A large newer, waterfront home at this price-point drew a lot of attention. Warm Northwest Contemporary Style, high end finishes and western facing Olympic Mountain Sunsets made this a popular package.

• Click here for more photos and the full listing detail.
• Click here for homes currently for sale in this neighborhood.

#1 – Point White Drive

#1 Point White Drive

Original List Price $1,990,000

Sale Price $1,875,000

Days on the market 201

Date sold 5/10/11

Pristine south end low bank waterfront. Walking out to the water on the backyard boardwalk, the grand view of Mt. Rainier, framed by watercolor landscaping is like instantly stepping into vacation mode.  To think you could do that every day is pretty special.  A guest house, main house, garden space, all set back from the road with a gated entrance.  Privacy hard to find on Point White Drive.

• Click here for more photos and the full listing detail.
• Click here for more homes currently for sale in this neighborhood.

All photos courtesy NWMLS.

• Check out my Top Ten List from 2010
• Check out my Top Ten List from 2009
• Check out my Top Ten List from 2008

FHA Loan Limits restored to $475,000 in Kitsap County.

FHA Loan Limits Back Up

Nov. 18, 2011-Dec 31, 2012

This December HUD confirmed that the 2012 FHA Mortgage Limits have been restored to the higher temporary loan limits effective November 18, 2011 through December 31, 2012.  On October 1st, the loan limits had rolled back to regular numbers, which for Kitsap County meant a drastic drop from $475,000 to $307,000.

New, temporary, 2012 FHA loan limits for Kitsap County:

• 1 Unit: $475,000
• 2 Unit: $608,100
• 3 Unit: $735,050
• 4 Unit: $913,450

This is great news for buyers wishing to purchase a home in 2012 without putting down 10 or 20%. The minimum down payment for an FHA loan is 3.5%. Prior to this re-increase in loan limits, the threshold was $307,000 for a loan.  A huge difference for Bainbridge Island, where the average sales price of a home is $575,000.  The $307,000 loan limit made purchasing a home with an FHA Loan very challenging to say the least.

The new limits are exactly what we need here on Bainbridge Island to keep the real estate market healthy and active.

At the time of this posting, FHA rates are hovering around 4% with zero points.  For a great lender recommendation for your FHA loan, visit my Buying Page.

New Waterfront Homes on Lynwood Center Road

The national news is reporting good news in regards to housing starts.  Housing starts and new permits jumped to a 1 1/2 year high in November, the highest level since April of last year.  While good news on the nation level is indeed GOOD NEWS, we here know real estate is local.  But, on Bainbridge Island, when you take a drive down Lynwood Center Road and see four waterfront homes under construction and a fifth just completed, that is GREAT NEWS on the local front.

Each of the waterfront lots sold for an average of one million dollars and most involved a tear down of an old cottage and now new, quality homes are being built in their place.  All good news for our island market.  And December, typically a somewhat slow month in real estate, has been hopping on the island.  A new $3.2 million dollar waterfront listing on the island went pending with a buyer from our office after being on the market less than three weeks.

The energy and optimism is good as we wrap up a busy 2011 and gear up for a great 2012.

The Bainbridge Island Musical Fire Truck making the rounds.

The Bainbridge Island Musical Fire Truck is getting into gear once again – it starts on December 12th and spreads musical joy around the island until Christmas Eve. Find your neighborhood on the map below (click map for larger version).

The lighted, musical truck, driven by the Bainbridge Fire Department is out in the evenings from 5-9pm. Every year we enjoy gathering with our neighbors in our cul-de-sac, watching, waiting, (shivering) and listening for the firetruck.  The kids go pretty crazy as you can imagine.  This tradition, which started back in the 1950′s, goes on my list of things “So Bainbridge.”

Bainbridge Island Fire Truck 2011 Holiday Music Schedule - CLICK to ENLARGE.

2011 HOLIDAY MUSIC TRUCK SCHEDULE

All roads are not listed. Look and listen for the music truck in your neighborhood between the hours of 5:00 to 9:00 pm.

I am never ready for Christmas.  Ever.  Never.  Okay back in the day when I was a teacher, for about three years I was on a year-round schedule that had a bread from Thanksgiving until after New Year’s.  Those years I had a fighting chance, but I think I was also getting my MA at the time. Always something.  Everyone is busy. But if you are making the time to escape the day to day and cut down a Christmas tree, (you should) I have not found a better resource than the Kitsap Sun’s interactive map below.

Our tree is not up yet. My goal is always to get it up by mid-December and I am one of those people to leave it up until New Year’s Day.  This year soccer tournaments and traveling for Thanksgiving are my excuse.

It would be great if a little snow graced the green of Kitsap for the tree cutting excursion, but that remains to be seen. Pick a destination, head out and get your tree, I am sure you’ll beat me.

View U-Cut Tree Farms in a larger map

Winslow Holiday Tree from Christmas Past.

1. Holiday Open House & Tree Lighting | November 26th | 12 to 7pm

Kick the season off with the Downtown Holiday Open House. Retailers will be offering a variety of specials. Click here for the Holiday Open House Flyer to learn more information about what businesses have planned.

The fun will continue at the Community Tree Lighting Ceremony at 5:30pm that evening on Madrone Lane. Enjoy music by the BHS Band and Ovation! Glee Club. Special guest, Santa Claus, will be on hand to help light the 2011 Community Tree. Grandma’s Tree Farm provided this year’s spectacular tree.

And tomorrow is Small Business Saturday – another reason to support local merchants!

2. Jingle ~ Mingle ~ Winslow | December 17th | 12 to 9pm

A day full of in-store specials to shop, stroll and mingle. You can turn the event  into a date night by taking advantage of KiDiMu’s “Kids’ Night At The Museam” from 5:30-9pm. Visit kidimu.org for more information and reservations.

Blackbird Bakery Holiday Baked Goods.

3. Holiday Passport | November 26-December 24

The Holiday Passport is back this holiday season. Pick up a complimentary Passport from a participating retailer. Collect a stamp when you spend $10. Collect stamps from 17 businesses in the Passport and enter to win one of four Downtown Shopping Sprees, each valued at $850.   Click here to link to the flyer for more info.

4. Santa Photos | December 3, 10 & 17th | 10am to 1pm

Visit Santa at Columbia Bank with your wishlist and have your annual photo taken. Bring a non-perishable food item or cash donation to benefit Helpline House.

Holiday Sparkle on Winslow Way.

5. Holiday Giving Trees | November 26th – Ongoing

This holiday season, a series of nine Giving Trees are located throughout Winslow. Visit a tree, pick up a “wish ornament,” and help make someone’s holiday a little brighter.  After November 26th Trees will be located at: Columbia Bank, KiDiMu, Chase Bank, PrettyStick, Seabreeze Building, Sweet Deal, Winslow Green Gazebo, Winslow Mall, and Flowering Around. Each tree sponsors a specific organization. Click here for the flyer.

I am well aware that although my website has a lot of information about Bainbridge, it also has a lot of information about me – blah, blah, blah . . . I think my life is pretty darn normal, but I hope it gives you the window into life on Bainbridge you are looking for.  That is the basic goal of this blog, to provide the vista into Bainbridge Island life I could not find when I was researching Bainbridge from my laptop in California.

But, after a flurry of recent closings this summer and fall, I started thinking about the similarities among many of my buyers. Many of my buyers come from my website and feel like they know me a little bit before we even meet.  That is a great thing.

But as someone who might be considering buying yourself, you might be interested to know what type of folks I work with and where they come from.

Folks riding the ferry from Seattle to Bainbridge.

Out of State Families

This category makes up the majority of my buyers. Some I start working with before they step foot on the island, others have been here renting for a few months.  My perspective on relocating, the fact that I have young kids in school and that I am primarily a buyer’s agent appeals to them.  Most of these buyers are second time buyers and most of them have purposely chosen Bainbridge and then looked for a job to get them here. Most of the families have at least one adult who commutes to Seattle via ferry on a regular basis.  Most have looked at the East Side of Seattle as a housing option, but turned to Bainbridge for a smaller community, yet a strong school system.  Many of these folks have come from California, southern and northern, a few have been from southern states and a number are from back east.  A handful have been from Canada.  Some folks have bought in neighborhoods in town and others have opted to purchase a home on an acre or so outside of town.  Most folks have looked for this to be a 5-10 year home. As prices have declined, more of these buyers are first-time buyers, but the majority coming to Bainbridge are not.

Families from Seattle

More and more I am working with families who have lived in Seattle for 5-10 years.  Most have children just starting school and although they have loved living in Seattle, they aren’t excited about the Seattle School District.  They want to keep their current job and look to Bainbridge for the ferry commute and a place where they can buy a home and get a little more space, both inside and outside.  Most of these folks have owned homes in Seattle and hope to stay in their Bainbridge purchase for at least ten years.

Bainbridge schools continually earn high marks.Couples from Seattle

Couples from Seattle

Bainbridge is not urban Seattle.  Where the fast paced urban life is fun for some, it is exactly what some other couples are looking to escape. These couples are typically buying smaller homes (under 2,000 square feet) on lots one acre or larger.  They are planting gardens and raising chickens. They love the trails and the peace and quiet of Bainbridge.  For most of these folks this is not a first purchase and most commute to Seattle for work.

Second homes continue to be popular on Bainbridge.

The Couple Retiring or Buying a Second Home

Again, ‘purposely choosing Bainbridge’ is a theme here. Many couples have looked  forward to moving to Bainbridge after they retire. Many of these folks are downsizing from larger, maybe family homes into smaller homes, town homes or condos in Winslow. ‘Simplify’ is a word I hear a lot from these clients.  They are happy to not take care of a yard and love being able to walk into town to catch the ferry, shop for groceries, or grab a cup of coffee with a friend.

Investors are out looking AND buying.

Investors

And lastly, as I mentioned in an earlier post, I am working with investors.  These folks are purchasing homes to rent for a ten year horizon.  Investors aren’t sitting back waiting anymore.  They are acting.  The rental horizon for the next ten years is solid and many investors are buying with cash and calculating that their income stream is better than the stock market.  Many of these clients are on the island, but a few have come to me from my website too.  All of these folks own one or two homes, but are looking for investment rental income. Newer homes in town and near the ferry are appealing, as are condos and town homes.  And . . builders are slowly starting to ask about and look into buying vacant land, considering subdividing land and building spec houses.  A good sign of things to come.

The Bloedel Reserve is great for nature lovers, gardeners, walkers, joggers, photographer, history buffs – there are so many reasons to go and enjoy the splendor that the Bloedel family developed.   Bloedel is a 150 acre public garden that includes a Japanese Garden, moss garden, family estate home, reflection pool, ponds, views of the sound, wildlife, and more.

Bloedel is glorious right now with all of the colors of fall, but I also can’t wait to see it with snow. And, the Magical Holiday Village and Model Train Exhibit goes on display December 4th.

Click here for hours and admission/fee info.  A membership is NOT needed, nor is a reservation.