Archive for June, 2008
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Jun
30
Posted by James Lupori
June brought a real estate market that looked and felt a lot like the weather: cool, dark and threatening most of the month but, in the end, the Sun finally shone and it warmed up a bit. Let’s take a look at some of the critical numbers:
Kenmore continues to offer a huge inventory of homes.
There are a good number of homes between $400K and $700K. You’ll note that homes in this price point are lingering on the market for well over 100 days. In fact, those homes that sold in June averaged 140 days-on-market. There is some good news reflected in the next chart which shows the number of “pending sales.”
It’s nice to see 53 pending sales in June. As I’ve mentioned in earlier posts, there is an important relationship between active listings and pending sales known as the absorption rate. This ratio represents how many of the homes have been absorbed in a particular time period. June’s absorption rate was 20% which is the highest number in many months. This is good news! Now let’s look at the closed sales in June:
Closed sales were not too exciting. What surprised me was that a huge number of the sold homes closed for over $500,000! There are obviously buyers out there who have the financial power to buy some fairly expensive homes.
There are a couple of interesting things in the report above: 1) almost 30% of the closed sales are new construction, 2) it is taking a long time to sell houses unless you’re under $500,000, and the most important thing 3) the sale price/sold price ratio is 93% which means that if you’re in the market to buy a home, you are in a good position to negotiate a good price.
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Jun
29
Posted by James Lupori
Christiania, Glass House, Copenhagen, August 2007
My wife and I saw a great bumper sticker today that applies to having your home inspected: “Don’t believe everything you think!” As a realtor, several of my clients insisted on having their “friend” the contractor or, worse yet, their father inspect the houses they were buying. When I gently suggested they consider hiring a “professional” I was reminded that their hand-picked person was charging far less for doing the inspection or that “my Uncle Fred knows everything there is to know about houses.” But do your friends and family understand how an inspection contingency works in a real estate transaction? Take a look at the first paragraph of an inspection addendum:
If you read the highlighted section, you’ll note that there isn’t any language requiring a “licensed” inspector to conduct the inspection. It even says that the buyer’s inspection MAY include any number of items. Sure, you can go ahead and hire Uncle Fred to do the job but let me remind you:
We Americans suffer from the modern day affliction of I KNOW IT ALL!!!! We believe that we are experts if we visit enough websites or watch enough DIY programs on cable TV. Well, I’m afraid that this attitude has created an environment in which real professionals (e.g. home inspectors, realtors, carpenters, pilots, etc.) have been reduced to commodity status. Remember, commodities are products or services that cannot be differentiated from one another. So, I’m here to tell you that not all inspectors are equal and, DON’T ENTRUST THE INSPECTION OF A HOME TO NON-EXPERTS.
Please note: as of July 2009 “home inspectors” will be required to have a license. The new law (signed by Governor Christine Gregoire). This will be the first time that minimum standards of competency in the home inspection industry in Washington State. I bet you didn’t know that there is no licensing requirement for inspectors today. The only “licensing” required by an inspector is a Pest and Wood Destroying Organism Certificate. You should do your homework when selecting an inspector. I highly recommend inspectors who hold themselves to high ethical and professional standards. You will often find they are members of:
The American Society of Home Inspectors (ASHI)
The National Association of Home Inspectors, Inc. (NAHI)
Most inspectors welcome the new law as a way to ensure a higher level of service in the industry. According to the new law, a Home Inspector Advisory Board will be formed under the Department of Licensing. This board will develop a Code of Ethics, Standards of Practice and select or create a licensing test. This is good news for anyone considering the purchase or sale of a home.
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Jun
28
Posted by James Lupori
My wife and I did our weekly 1/2 Lake Washington bicycle ride this morning and ended at the official opening of the new Burke-Gilman Trail underpass in Kenmore. The event was actually quite a surprise. In attendance were: Kenmore’s Mayor, David Baker; King Co. Executive, Ron Sims; 32nd District’s Representative, Maralyn Chase; King County Councilman Bob Ferguson and Steve Gorcester of the WA State Transportation Improvement Board.
It was a perfect day for the “grand opening.”
There was a small yet enthusiastic group of cyclists and residents for the celebration and ribbon cutting:
Representative Maralyn Chase & King County Executive Ron Sims
The real highlight for me was meeting King Co. Executive, Ron Sims. I had an opportunity to chat briefly with him regarding the Brighwater Project, the new underpass and the importance of government and the private sector working together to help modernize and improve our communities.
My wife, Virginia, Ron Sims and the author!
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Jun
27
Posted by James Lupori
Here are the open houses in Kenmore this weekend. You can get details by clicking on the map above. I also want you to know that this is not a comprehensive portrayal of all the open homes. Several icons are in new construction neighborhoods where there are many more homes to preview. Although I’m not the listing agent on these particular properties, I’d be happy to provide you with information if you wish. Have a wonderful weekend as the weather people tell us it’s going to be warm and sunny.
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Jun
25
Posted by James Lupori
As the home inspector finished his on-site evaluation of my first home (hopefully), I was impressed by how easily he came across issues that would have passed me by. For example, he didn’t like the fact that soil and plants were growing up against the foundation. What really impressed me was when he called-out the roof: “I think this roof has seen better days,” he said with a furrowed brow. Wow, I thought, this is the best $400 I’ve ever spent…………
The truth is, when you’re buying or selling a home, the inspection process is one of the most stressful, frustrating and critical parts of the transaction. Over the years I’ve seen the best and worst side of people emerge after a home inspection. Calm, rational folks turn red with anger when told their electrical panel needs to be replaced, or the roof needs repair. Buyers get very nervous when their inspector emerges from a crawl space having discovered evidence of vermin or a failing water main. Let’s face it, we all want our homes to be perfect. The reality is: NO HOUSE IS PERFECT. Even the mansion on the hill has problems. So, I’m going to begin a series about home inspectors in order to help you understand their role, their obligations, limitations and how to approach the inspection process in a productive, positive way. If you happen to be reading this post and have questions about home inspection, please ask. I have enlisted the help of my favorite home inspector, Stephan Cancler, Owner of Full House Inspections who would love to help you better understand what he does for a living.
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Jun
25
Posted by Larry Cragun
I heard through the grapevine today that 100 - 150 local banks across the county are predicted to close by the end of 2008. What are your thoughts?What are your predictions for the Seattle to Everett corridor? Have you heard any rumors?
Click here for more info at Ashlarundressed.com
You may be wondering about the short article above. We agents are always trying to improve our “blogging skills” so I wanted to show you a LIVE picture of a group of dedicated real estate agents learning about blogging! Larry Cragun, the creator of the undressed blog is behind the computer terminal. Larry is a well-known blogger and writes for a huge number of publications.
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Jun
23
Posted by James Lupori
George Carlin is my favorite comedian, social commentator and linguistic philosopher. In life he could be profane, irreverent, controversial and downright crass. He was also one of the most insightful observers of human nature and the English language in the last 50 years. As a young boy in the 60’s I remember him well as Al Sleet, the Hippie-Dippie weather man on Laugh-in. I also remember when he caused a national frenzy in the 70’s with his “seven words” you can’t say on TV. His words were so provocative that they ultimately found their way to the Supreme Court in 1978 and a ruling (ironically) upholding the government’s authority to issue sanctions for broadcasting offensive language during hours when children might be listening.
What most impressed me about George Carlin wasn’t the ”colorful” language so much as his ability to shed light on the delusional and foolish things we say and do. He used to poke fun at euphemisms:
Shell Shock vs. Post Traumatic Stress Syndrome, Beauty Mark vs. Ugly Mole on the Nose
He hated the politician’s use of the passive voice: “Mistakes were made.”
He whittled down the 10 Commandments to only 2 : Don’t steal from other people and try REAL HARD not to kill anyone.
And one of his most profound statements: “All the problems in the world can be traced to what fathers do to their sons!” Simple yet profound.
George described himself best in this way: “I was always out of step. I left school in ninth grade, I got kicked out of the Air Force, I got kicked out of the choir and the alter boys and summer camp and three schools and I was a pot smoker when I was 13 in the early 50’s. I was always a lawbreaker and a kind of outlaw rebel.”
Ultimately, George Carlin was always willing to say things that the rest of only wanted to say but never did. He was a man who truly did find his own voice and used it. He brought humor and some biting criticism to a whole generation of Americans. Judging from all of the tributes to him today, I’m certainly not alone in my sadness at his passing. He made me laugh a lot over the years. He also made me think as well.
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Jun
22
Posted by James Lupori
Let me show you how looking a little more deeply into statistics can help you understand how a local market works. Below are the current numbers for Kenmore. Not much has changed since my last statistical post on June 13:
The good news here is that six homes have sold in the last 10 days. In the last three months the 51 homes sold are from most price categories. A surprising number of homes over $500K have sold. Now I’d like to take this analysis one step further. One of the most important ratios to consider in the market is the sale price vs. listing price ratio. This number is important as it can reveal if home prices are holding up or softening. So let’s turn our attention to the six most recent home sales:
Realtors utilize this sort of summary report to analyze a great many facts about various markets. Let me tell you what I see in this report: 1) Most of the sold homes are fairly pricey at over $500k, 2) Most of the homes have nice-sized yards at around 10,000 sqft, 3) These are all relatively large homes at an average of 2742 square feet. It’s interesting that the two older homes are under 2000 sqft, 4) Homes are taking quite a while to sell with an average days-on-market of 195; however, the most critical statistic in this report and one that should make a potential buyer take notice: THE AVERAGE SALE PRICE/LIST PRICE RATIO IS NOT 94.71% AS SUGGESTED IN THE REPORT. If you take a careful look at the ORIGINAL PRICE vs. the Sale Price, you’ll note quite a difference. The percentages are respectively: 95.7%, 91.8%, 87%, 86%, 85.5% and 93.7% meaning the Sale Price/List Price ratio is more like 90% for homes in Kenmore.
Buyers in the current market are in an excellent position to negotiate a good deal for a home.
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Jun
22
Posted by James Lupori
My wife and I rode our tandem bicycle through the new Burke-Gilman Trail underpass at NE Bothell Way and 73rd Ave NE yesterday. I can’t even begin to tell you how thrilled we were. Now, you may wonder why this is such a big deal so I’ll tell you: this particular intersection in Kenmore has been a point of irritation between bicyclists and motorists for years. It’s as if the transportation gods got together and said, “Where can we create a focal point for anger, frustration and ill will? Oh, that’s easy, just stick bicyclists and cars together at a dangerous intersection and there you go!”
The official opening of the underpass will be next Saturday, June 28th. My wife (pictured above with our tandem) and I will be there and we hope to see all of you trail enthusiasts.
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Jun
20
Posted by James Lupori
Twice a year a lot of home owners open up their mail and are surprised by this pesky bill called the King County Sewage Treatment Capacity Charge. As a neighbor and Realtor I’m asked about the reason for this bill. Many homeowners just pay it believing that it’s merely a utility bill (such as your water or electric bill). Well, it’s not. This charge is a lien recorded in title. The Sewage Capacity Charge reflects the cost of your home being connected to the sewer system. King County provides wholesale wastewater treatment services to 17 cities and 17 local sewer utilities in King, Snohomish and Pierce counties. The bi-annual (or quarterly) bill is an amorotized payment based on a 15 year payment plan. Most homeowners opt for the payments rather than pay the whole amount up-front (which can be a large sum).
Now here’s where the capacity charge gets a little complicated: Let’s say you want to sell your home. And let’s say your property is subject to the capacity charge. Please pay special attention to what I’m about to say: IN ORDER TO PASS THIS CHARGE ONTO THE NEW OWNER, YOU MUST FIRST, DISCLOSE THE CAPACITY CHARGE ON THE SELLER’S DISCLOSURE STATEMENT (SEE ITEM “C”ABOVE) AND YOU MUST ALSO NETOTIATE THIS WITH THE BUYER IN THE PURCHASE AND SALE CONTRACT. If you don’t, you’re going to pay off the remaining balance at closing which can be a substantial amount of money. I have actually heard of colleagues whose sales have fallen apart because of the non-disclosure/negotiation of the capacity charge. If you do decide to put your house on the market, make sure you consult with your agent regarding the capacity charge.
So, I’m taking my own capacity bill to the mail box today. I wish I had my friend’s cat to do this chore for me!!!
