Renting? Rather Not?

Your rent isn’t going down, had you considered buying a home? Buying a home today carries some concern because of a sputtering economy and soft home prices. The question begs, when is it a good time to buy a house?
It’s a great time to buy! Home prices are dramatically down. Interest rates are as low as they’ve ever been; Owning a home provides peace of mind; Owning a home provides an “automated savings account”.
History shows us home ownership is a sound move. Real estate is cyclical and today we’re in a low point. It will change, adding population insures demand will return and when it does increasing home prices will follow.
Interest rates are at historical lows. You can borrow money for as little as 4.25 percent, which results in a house payment that’s less than your rent. Your monthly payment on a $150,000 loan at 4.25% is $737.00. At 5.25% it jumps to $828.00! Don’t miss out on great rates!
Settle in to your new home and know that you’re truly settled. There’ll be no landlord asking you to leave or telling you what color the walls will remain. Put yourself in the driver’s seat of home ownership.
A house payment is at least partially money saved. Add to that the appreciation that will again return and your “savings account” compounds through the magic of appreciation.
Buying a home provides peace of mind, security and comfort. Jump in, you’ll thank yourself for a long time to come. Call me to talk more about the merits of home ownership (509) 421-1150 or drop me an email @ steveschwind@premierone.biz. To view homes for sale visit steveschwind.com and look for the “search homes” tab

Technology In Real Estate

Real estate has evolved into something new and different as a result of the World Wide Web.
The impact of the web on business is palpable – a significant impact is on print advertising. With the ability to reach consumers on product specific sites as Craig’s List, Zillow.com, Realtor.com and a plethora of others, paying for an advertisement in the local newspaper and home magazines has diminished dramatically.
Craig’s List ads are quickly and easily created by a simple step-by-step process that even a child can complete,.There’s even more technology available to enhance CL usability. A free (and upgradable) template site called Postlets.com allows the user to make a tidy presentation that when completed has a “button” that sends the user directly to Craig’s List to post the newly created advertisement plus the ability to “syndicate” or publish the offering on as many as 10 additional real estate websites.
The real beauty behind Postlets.com outside of the tidy presentation is its permanence. Rather than going back ever 7 to 30 days to recreate the Craig’s List ad, one simply goes into craigslist and “re-posts” the expired but still-existing template. There’s no need to rebuild your offering searching for pictures to reinsert into your recreated CL ad one at a time. It’s straightforward, quick and simple. It’s easy for the user and gives a professional presentation to the viewer.
We’re all familiar with the bar code, that wonderful little series of lines that expedites checkout lines at the store as the clerk swipes the item purchased over the scanner automatically ringing the item. Now real estate has the QR code technology, a funny square shaped symbol found on ads and for sale signs on property offered for sale. Take a picture of the symbol with your smart phone and voila it translates into pictures of the property along with all the specifications you’d want to know about the property. It’s an “app” coming on fastTechnology just keeps marching on and it affords us all the ability to continually economize on our time allowing us to enjoy the local lifestyle.

An Important Consideration In Pricing Your Home For Sale

When offering your home for sale there are a number of concerns to be addressed. Topping the list is your motivation-what is driving your desire to sell? You’re one step closer to planting the for sale sign in front of the house and moving forward with efforts to entice would-be home seekers. Before that happens determining your asking price is the next order of business and the asking price hinges on your motivation as well. How best do you make that determination?

The process by which you determine the value of your home begins by researching your geographical neighborhood for recent past sales of homes similar to yours, which ideally should be no more than six months old. It’s easy to see that the house down the block just sold and “they said they got what they wanted so, mine must be worth…”. Part of the research process involves interviewing at least one of the relevant parties to the transaction. There are often circumstances that play into why a home sold for the price it did and often explains the motivation of the buyer and/or seller, which may be the home characteristics, features or unknown improvements and included items such as furnishings or personal property that might’ve been included but not disclosed. If your real estate professional is truly on the job he/she has looked into these “conditions of sale”. Often times there’s a good reason for why the neighbor’s house sold for X and it’s important to know the answer or you may be well out of the park on your home value.

As you and your real estate professional review the “comparables” and “competing” homes in determining your value, it’s important to look at the “days on market” of the comparable and competing properties as well as when the last price adjustment occurred relative to the sale date of the “comparable homes. Basing your offering price by comparing it to homes currently on the market seems reasonable as you consider how your house is “measures up” to current offerings. Just how long have they been on the market is important to know.

Your home in any economic climate can sell in ninety days , the key is pricing. And it’s not just a matter of giving it away! Determining your home value is crucial and that value can be higher or lower than the competition depending on curb appeal, quality of construction, interior staging as well as location to name a few obvious characteristics. Evaluating the days on market of the comparables will take you a long way toward placing the proper price on your home. You can choose not to delve deeply into the selling information and watch your home sit on the market, or you can do a bit more homework and very likely be the next home SOLD! Strategic pricing is critical in any market and very certainly in the current market.

The Recession Is Over

Listening to the news today I was informed the recession is ending – and if gas prices at the pump don’t continue to ratchet upward, why we’re out of the woods! That’s the flavor I received from the newscaster. There’s an old stock market saying that goes something like “buy on the rumor, sell on the news”. I’ve watched something to that effect in the real estate industry.
People tend to want to get the best opportunity possible, so the market deteriorates and home sellers don’t want to really acknowledge the reality of the market feeling their home is certainly better than the neighbor’s house and they should be able to do a bit better… if they just hold on a bit longer. And the market goes farther south. Buyers sit tight waiting on the market to bottom, betting they’ll be able to read the signs and get a great buy. As we watch our respective markets it suddenly becomes apparent to the seller that well, the bottom just fell out a bit more and reality sets in. And the buyer watches for the bottom and suddenly the three houses they’ve been tracking are all under contract. They jump into the market only to find that similar houses have started selling for just a bit more than last week and next week they’re even still higher in price and Mr. Mrs. Buyer suddenly become frantic and buy that house they always hoped to own, only it cost a bit more than they thought it would.
The news isn’t wrong, it might not be right, but It’s a reality. The reality is that the news is based on some semblance of statistics and as that news is presented it finally gets a hand-hold and people buy into what they’re hearing. Next thing you know change is in the wind. We’re nearing that place it appears. Home prices aren’t climbing, but the talk of inflation is increasing and interest rates although they fluctuate on a daily basis are beginning to move ever so slowly upward. A one percent increase in the interest rate can at best increase your monthly payment and in the worst case erase your ability to obtain a loan due to an inability to qualify for the increased payment.
Current interest rates are bouncing around 5%. The 30 year loan payment at 5% on $150,000 is $805.00. Add one point to that the same 150,000 loan amount with a six percent interest rate is $899.00. I’m seeing increased activity in the market place and interest rates appear to be inching up. It’s time to get in the market and find that great opportunity, they’re still out there. Start on your road to ownership and enjoy the benefits, peace of mind and lifestyle.

You’re Looking For What

The typical home buyer is looking for a three bedrooms, two baths, maybe a rambler or atwo-story.  Interesting to stop and think about those homes and the additional characteristics that make one work over another.   My view of these  homes is not so much their composition, rather where they are and what they offer. 

If it was simply a matter to buy a three bedroom, two bath home  the first one you looked at would be just fine.  It has three bedrooms, and two baths, that’s what you were looking for, right?  In reality that typical home might need something more: an office/den, a family room perhaps, the kids need a place after all. 

The Wenatchee Valley is interesting in that it draws professionals from across the country for its attributes.  I recently heard of a medical professional who moved here from another state specifically for the outdoor activities available within an hour of home.  He is taking a fifty percent cut in pay to live here so that he and his family can enjoy the lifestyle the Wenatchee Valley offers!  Awesome, I say! 

As a first time home buyer you might find yourself focusing on the house, the number of bedrooms and baths, the room for the big screen.  That’s relevant without question, but remember to think about what it is you enjoy and consider just where that house is situated.  I’ve heard on occasion that “we got wrapped up in what the house was about and now that we’re in it we suddenly have become aware of the busy street out front and need to pay extra attention to our pets and their safety. 

Pretty much anywhere you live in the valley allows access to the front country ( a term coined to describe the foothills surrounding our various communities) to allow for that trail run, walk or bike outing in which you only have an hour before dinner, professional appointment or a social engagement.  You may wish to find a home that’s situated on or near the irrigation canal for early morning, before work jaunt. 

It may be that you have no interest in mowing lawns, weeding flower beds and prefer to spend your time involved in a club, softball or curling team that keeps you on the road.  A well situated condominium might be more relevant to you.  As you consider your first house, or your even your  next one give some thought to what it is you’re looking for, it’s very likely more than three bedrooms, two baths.

Are we turning the corner?

I’m just sitting here finishing dinner, reading the most recent issue of Realtor magazine, interesting information.  We live in a world of cycles, up and down.  Cycles: seller’s market; buyer’s market, real estate market surge, real estate market decline; interest rate increases and reductions. 

For several years ending roughly 2006 the mortgage industry essentially did away with any sort of lending requirements.  The primary key to getting a home loan was “Can you fog a mirror?” “Yes, here’s your money, go buy a house.” Then, the bottom fell out and the knee jerk reaction became what I recall of the lending atmosphere of the early 80′s - ”You want to borrow money to buy a house?  Well, if you have a credit score of 800 and don’t need the money, we’ve got plenty to lend to you.  Everyone else go to the back of the line and we’ll see you again some time.”  Seems that pendulum swing has again reached its peak swing and is on its way back, ever so slowly. 

One of the first lenders dipping a toe in the waters of more liberal lending policies, Wells Fargo bank is stating that they are considering home loan applicants who are not the shiny copper pennies the mortgage lending world prefers.  Loan applicants who have some of their own money to put skin in the game with are being considered with a loan score as low as 500.  The operative words being money for a down-payment, translated as something to lose should they become unable to repay.

In spite of all the negative talk about lenders are making money available to purchasers who show some degree of responsibility toward homeownership.  The outward appearance is everyone suddenly has found a level of reason and responsibility in pursuing a home loan as well as the lender providing the funding. 

There is a general sense of optimism beginning to show itself.  The stock market is showing gains, manufacturing is on an upswing and the talk around town is that we may not be out of the woods, but it doesn’t appear we’re going in any further.  We do well when the feeling is we know what’s ahead of us.

If you’re feeling the desire toward owning a home, it’s a good time to get back in the market.  Between motivated sellers and the REO properties (bank owned foreclosures) on the market you can make a home purchase that will prove to be a sound investment.  I use the word lightly in terms of purpose in owning a home.  Treat it as a purchase for your quality of life knowing that it’s yours providing the comforts and characteristics you desire.  And somewhere down the road you’ll reap the benefits of having saved some money and built equity.  A home isn’t a fast profit opportunity, rather it’s the place you make memories, where you live the   lifestyle.

Current Real Estate Statistics

Here it is, sooner than later, an update on the current real estate market.

January is typically a good month for real estate, I’ve said it year in an year out and it’s always received with a bit of surprise.  In my mind it’s a matter of riding out the holidays, six weeks of good will and festive spirits.  So, when the 1st of January rolls around it seems people are ready for a dose of reality and the everyday life they transitioned out of and what better way than shopping for a house.  This past January has shown itself to be a pleasant dose of reality for a good number of folks.

Home sales are up showing a noticeable jump over the same period last year with total  sales of 32 units for the month as recorded by the North Central Washington MLS roughly 1/3 more closings than one year earlier.  February is showing a continuing trend in ongoing activity as well, but is it a going to continue?  Are we “out of the woods”?

In large part the current activity is based on a couple of factors:  Real estate lenders, although more stringent in underwriting standards are continuing to make loans at unprecedentedly low rates.  A significant number of current residential transactions are REO’s or bank owned properties that have been foreclosed on and are returning to the market.

The interest rate part of this equation is pretty simple, low rates are an obvious attraction for prospective homeowners to take advantage of.  The home sellers are the interesting twist in the home buying equation, albeit simple to understand. 

Banks are in the business of lending money, not so much as home sellers.  Every financial institution making residential loans has a plethora of foreclosed inventory and their desire is to get them off the books quick as they can.   Their ultimate desire is to turn inventory back into loans. 

REO’s or bank-owned residential listings come into the market priced to sell!   The question the bank asks their listing agent is “What does it take to make this home go away in thirty to sixty days, and the answer is price the property to sell!” And price them to sell they do.  If the property stays on the market for thirty days with no appreciable activity on a given property, a short consultation with the listing agent results in a price reduction.  There are very few “consultations” before that property is SOLD and off the books-simply accomplished by making the property appealing price-wise. 

 The bottom line is bank owned properties are stiff competition for the everyday homeowner wanting to sell and move up, or move down.  These foreclosure offerings are setting the bar in the current market and the bar is going lower.  To be “in the market” means being competitively priced.  Today’s seller must be a motivated seller.

 The good news is, there is activity in the market place.  There are of good opportunities in the market place for today’s buyer and it really is a good time to buy a home and start enjoying the lifestyle afforded by it.  Give me a call and let’s see what’s out there for you.