Buying a Home Now Is A No-Brainer

Is now the right time to invest in a house?
Trick question. Actually, it's two questions.
Question No. 1: Is now the time to buy?
Question No. 2: Is buying a house a good investment?



The first answer is easy: With a few exceptions, if you have 20% to put down and good credit, now is a great time to buy. That's been the case all year, and I'd argue that we're probably closer to the end than to the beginning of the really great time. Let me explain.

Back in January home prices had dropped 28% from their peak. More important, interest rates were at historical lows. By locking in a mortgage for 15 or 30 years on a value-priced home, you were getting an incredible deal, even if home prices decreased.

At the time, I thought that prices and rates were more likely to rise than fall. I was half right: Home values have been inching up since the spring, but mortgage rates, incredibly, dropped further.

By August (the latest numbers available) the median home price had risen 1% over a year ago, but 30-year rates had dropped a half-point to 4.5%. Assuming 20% down and a 30-year mortgage, the total cost of owning a median-priced home is now down $16,000 from a year ago.

Home values may waffle over the coming year, but because Americans take out such large, long mortgages, rates are what really matter. And I am more likely to grow hair than see 30-year mortgage rates drop below 4%. It's far more likely that rates (and the cost of ownership) will rise.

Now for question No. 2: Is a house a good investment?

First, it depends on what you mean by investment. If your definition is strictly about dollars returned, a house probably won't be a great use of your capital. If you bought the median-priced house today with 20% down, to recoup your total costs (and I'm not including property taxes and maintenance here) over three decades, the home's value would have to rise about 3% a year.

That's likely, but you'll almost certainly (we all hope) do much better than that in the stock market. The fact is, however, that that's the normal case for housing; the booms that began after World War II and in the late 1990s were the exceptions.

That said, the key point to remember is this: Buying a fairly priced home at today's rates may be the best deal you will ever get. And who knows? It may even turn out to be a good investment.



Courtesy of CNNMoney

Fun Facts about the Holiday Season

Santa Claus may live in the North Pole according to all those holiday stories, but did you also know that there’s a Santa Claus, Ind. (population 2,303) and a Santa Claus, Ga. (247)? And we can’t forget about Noel, Mo. (1,615); Snowflake, Ariz. (5,686); and, for those reindeer lovers, both the village of Rudolph, Wis. (418) and Dasher, Ga. (821).

Here are some other fun facts to share with your family and friends this season, courtesy of the U.S. Census Bureau:

• Potato latkes are a staple of Hanukkah celebrations, and in 2009 50.9% of potatoes in the U.S. were produced in Idaho and Washington.

• Last year, 14 percent of sales for department stores in all of 2009 occurred in December (the figure was 21 percent for jewelry stores).

• Book store sales jumped 98 percent from November to December, 2009.

• $1.2 billion of candles were shipped in 2008 by U.S. manufactures, and candles play a big part in a variety of holiday celebrations.

• Holly Springs, Miss., and Mount Holly, N.C. are just two of a dozen places named Holly in the United States.

• The U.S. is expected to have a population of more than 311 million once 2011 arrives.

May the rest of your holiday season be safe and joyful, and wishing you a very happy new year!

Information courtesy of AlaskaUSA mortgage

Whidbey Island Campgrounds & Parks

We would like to introduce to you some of the awesome parks on beautiful Whidbey Island. Whidbey Island has parks for every interest and includes dry camping, partial and full hookups. Some with a water view and some in woodsy areas, you get to pick. We've included some other fun events and activities you may want to partake in while you are camping in the surrounding areas of the parks. Whidbey Island has some of the best dungeness crab, all types of clams, mussels, and fishing found anywhere in the Pacific Northwest, especially salmon.

If you ever decide to take a trip to Washington state, Whidbey Island should be on your list of places to visit. If you are going to come experience Whidbey be sure to do it during June through September, for the best weather. Fortunately we do not have as much rain as Seattle does because we are in a rain shadow, but we do have a few gray days. The temperature during those months is very mild and ranges from 60 to 80 degrees in the warmer months of July and August. Whidbey Island is approximately 2-1/2 hours drive north of Seattle.

It's a pretty drive that will bring you to Deception Pass Bridge, where your eyes will not be able to fully take in the spectacular views from the top of this bridge. Whidbey Island is approximately 50 miles in length and has many quaint small towns. The summers on Whidbey Island are so pleasurable and pleasant - as you will find out for yourself.

When you complete the drive all along Whidbey Island, you will reach the town of Clinton which is the southern most town. This is where you can take the Mukilteo ferry which will take you to Mukilteo on the mainland, and then onto I-5 towards Seattle. Those are the only two ways to drive onto Whidbey Island, unless you have your own boat or fly in on a small plane. There is a small air strip which allows small planes to come and go to Whidbey.
Our goal in this blog is to bring you as much information about our beautiful parks, areas of interest, events and other places to stay. Each article features a different park with a link to more information online for reservations and pricing. We hope you find it helpful. Happy camping to you all!

Entrance to Deception Pass State Park

1st Park - Deception Pass State Park
Deception Pass State Park has to be the most popular state park in the state of Washington. It features a very large camping area for RV's and for tents some with dry camping and full hook ups. There are 167 tent sites and 143 utility spaces. 5 hiker/biker sites, two dump stations, 7 restrooms and 6 showers. These sites are spread out in three different locations in the park. The maximum campsite length is 60 feet.


Deception pass bridge as seen from the
state park beach area below.



In the park you can walk to Cranberry lake, go for a swim in the warmer summer months or fish right off the edge of the lake. There is also a walking beach area where your view of the bridge is amazing. Take a picnic lunch and sit on the picnic tables and just have a fun day where the kids can play along the shoreline. You can also fish for salmon right off the shore under the bridge. This is an area where salmon are in abundance when the salmon are running.

At Deception Pass State Park you are close to Fidalgo Island which is just north of the bridge, yet just a few minutes drive to Oak Harbor. Whatever it is you decide to do at this park for relaxation and pleasure - it has it all.

Information & Photos contributed by: Mary Gaines

Yes, you can sell your Whidbey Island home during the holidays

The Holiday season isn't the best time to sell your Whidbey Island home, but if you have no choice, there are reasons to be merry. Anyone house-hunting on Whidbey Island on Thanksgiving or Christmas weekend must have a good reason: You are less likely to waste time on casual buyers and you won't have much competition.

Try these expert tips:

     Decorate tastefully.
Decking the halls is fun, but don't overdo it. Buyers want to see the home, not your mega-light display or 8 foot Christmas tree. Opt for neutral decor.

     Add curb appeal.
Replace summer plants with evergreen perennials such as hellebores or witch hazel. Bare trees expose your home, so touch up paint and clean gutters. Clear walkways of snow and ice.

     Price for a fire sale.
You don't have time to mess around with price reductions. Price you home 10% to 15% below comparable homes on the market.

     Hire a good agent.
You'll need a Whidbey Island professional who can show your home at a moment's notice and target buyers on a deadline.

Please contact us for other suggestions and pointers to help you achieve your goal of getting your home sold.

Inflation: How will it affect the Whidbey Island Housing Market

"INFLATION IS WHEN YOU PAY $15 FOR THE $10 HAIRCUT YOU USED TO GET FOR $5 WHEN YOU HAD HAIR." - Sam Ewing. And regardless of how much hair you have these days... one thing we can watch to help a get sense of where rates are going is inflation.

Right now, the headline numbers in the US show little inflation overall... but we are already seeing significant inflation in particular items like commodities, food, and oil - which are being driven by a weak US Dollar, and increasing demand from emerging countries like China and India. In addition, the global market reacted late last week to higher-than-expected inflation in China. This is important to us because Bonds and home loan rates hate inflation, no matter where the whiff of it comes from.

Here’s why. Think of inflation as a hot air balloon and rates as the basket under that balloon. As the balloon (or inflation) rises, the basket (or rates) must rise as well.

So, if inflation moves higher in China, their government has to raise rates to fight inflation. And if rates move higher in China, global investors seeking the highest yield will move away from the relatively meager returns seen in US Bonds - and move their Bond buying money into juicier yields found abroad.

There are so many opinions by so many smart people on both sides of the inflation argument, but right now it is all about what the Bond market thinks. And the recent market action shows just how quickly sentiment in the market can change. Remember, it was just a few weeks ago that fears and whispers of deflation helped the Bond market - and home loan rates - improve.

But now with the Fed intent on avoiding deflation and in fact creating inflation through another round of Quantitative Easing (or QE2), the entire Bond market - including Mortgage Bonds - have began to react negatively. Remember, Quantitative Easing is the concept of the Fed becoming a buyer of Treasuries and Bonds, in a bid to stimulate the economy by:

• Creating inflation


• Lowering the unemployment rate


• Raising Stock prices

While those goals may be good for the overall economy, we need to remember that all three are very unfriendly to Mortgage Bonds and home loan rates.

The good news is, despite ending the week worse than where they started, home loan rates are still near historic lows for the time being. If you or someone you know is looking to take advantage of low rates, now is the time. Please call (360-675-5811) or email me today to get started.

Info courtesy of: AlaskaUSA Mortgage

Time to Review Your Annual Credit Report

Rick Schutte, Broker/Owner of Coldwell Banker Koetje Real Estate in Oak Harbor, Wa. interviews Lyn Bankowski, senior loan originator, from AlaskaUSA Mortgage about the need of checking your annual credit report.

In this interview, Lyn mentions the free reports can be found at https://www.annualcreditreport.com/. This central site allows you to request a free credit file disclosure once every 12 months from each of the nationwide consumer credit reporting companies.  AnnualCreditReport.com is the official site to help consumers obtain their free credit report.  You can also go to http://ftc.gov/freecreditreport for more information. 
The Fair Credit Reporting Act guarantees you access to your credit report for free from each of the three nationwide credit reporting companies every 12 months.

For more information on credit reports and real estate, please contact us at any time.  

Rolling Hills Oak Harbor WA

Rolling Hills in Oak Harbor, WA is a great community. Rolling Hills is located just south of beautiful Oak Harbor, Washington. It’s an outstanding community only a short distance from the beach. This community includes a community pool as well as community access to the beach and a community boat launch. Rolling Hills is a great community to call home.

If you are looking for a home in the Rolling Hills community consider 1592 Allyson St. This is a beautiful 2006 manufactured home. It includes an open floor plan with vaulted ceilings and a large master suite, which includes an outstanding walk-in closet. This home for sale in Rolling Hills also includes a huge deck that has a retractable awning and a fully fenced yard. This large lot includes gorgeous landscaping and a fire pit as well as multiple sheds. The property is located near the boat launch, beach & pool. This home is a fabulous home for relaxing or entertaining. If you would like to view this property please click the photo to the right.



Rolling Hills is a great place to call home. If you are interested in any additional information on this home or any other home please contact me. I would be more than happy to answer any questions you may have Rolling Hills homes for sale and other locations.

Marjorie Cooper, Broker
Coldwell Banker Koetje Real
marjcooper@whidbeyrealestate.com

Consequences That May Impact Consumers Looking to Purchase or Refinance a Home in the Future

For months there has been an ever-growing fear that our economy is headed towards deflation, which is when prices on goods and services are falling lower. Deflation is the exact opposite of inflation, which of course occurs when prices climb higher. Remember, inflation is the arch-enemy of Bonds, so fears of inflation negatively impact Bond prices and home loan rates. But fears of deflation are good for Bonds and home loan rates. That’s because the fixed payment that a Bond provides to an investor goes further in a deflationary environment. So, the recent fears of deflation have helped Bond prices move higher and home loan rates move lower.


But last week, future deflation/inflation expectations changed... and investors in the Bond market started betting that the Fed will be successful in "creating inflation" via their Quantitative Easing plans, and will thus avoid continuing down a deflationary road. This was evidenced by the results of last week’s 5-Year Treasury Inflation Protected Securities (TIPS) auction, which saw investors buying TIPS at a premium since they were confident they’d be able to benefit from the increased inflation that should result from the QE2.

Of course, investors aren’t the only ones impacted by this. The media has already been chattering that the Fed has to be careful not to let inflation get out of control in the coming months and years. In fact, just last week, there was a headline explaining how another round of Quantitative Easing brings the risk of "unleashing the 1970s inflation genie." Consumers who are looking to purchase or refinance a house should also take note of that possibility - since even talk of inflation can impact home loan rates negatively. After all, a rise in inflation would be bad for Mortgage Bonds and, as a result, for home loan rates.

The good news is that home loan rates are still near historic lows for the time being. If you or someone you know would like to see how you can benefit from the current situation, call or email us today.

Information courtesy of Alaska USA Mortgage

Why Buy A Condo In Oak Harbor?

Talk about why buy a condo and sell the idea of owning a condo.

Whidbey Island - The Place To Be

Tips for Whidbey Island Home Sellers

Most Real Estate agents say spring is the season to sell a Whidbey Island home, but don't rule out fall just yet. There may be fewer buyers, but they tend to be more motivated. The key is to find them fast, because you don't have much time before the holidays kick in and real estate really slows down. Try these selling tips:

Price aggressively. You don't have the luxury of starting high and making incremental price drops. Be competitive - price your home 5% to 15% below comparable homes on the market.

Stage it to sell. Fall is one of the most beautiful times of the year on Whidbey Island, but it can also be hard on home maintenance. Make sure the front yard is clear of leaves, clean out gutters and downspouts, and touch up paint. Incorporate tasteful fall decor. If you have a fireplace, make it the focal point of the room.

Be flexible. Bargain hunters are out in force in the fall, so don't be discouraged by low-ball offers. See them as opportunities to negotiate. If you don't want to come down on price, be creative, such as offering to pay for closing costs or repairs.

Pre-Approval or Pre-Qualified. Which is Best?

Pre-Approval for a Mortgage or Pre-Qualified for a Mortgage. When negotiating for a home purchase, which is best.
Rick Schutte, the designated broker/owner of Coldwell Banker Koetje Real Estate, interviews, Lyn Bankowsi, senior loan originator for Alaska USA Mortgage in Oak Harbor, about this very important negotiating subject. If you are a buyer, you want to make sure that you have a pre-approval letter from your lender and if you are a seller, please ensure that the buyer is qualified by insisting on a pre-approval letter from their lender.

Please watch this short video for some interesting information from a highly qualified lender, regarding Pre-Approval vs. Pre-Qulification.

Life is a Journey, Not a Race

This has been a very interesting and informative week. I have been involved in a couple of real estate and property management conferences and I am now reflecting on some of the speakers and some news that I have heard throughout the week.

One of the keynote speakers had been a very well off and respected man who lost everything and became homeless. He has since written a book and now speaks and represents the Salvation Army, encouraging people like us to be involved with our homeless communities.

Another speaker was Famous Amos, the cookie man. He shared his watermelon story and enouraged everyone that we need to be involved, have a good attitude, and love others and ourselves.

A third speaker was a statistician who gave us plenty to think about regarding the economics of our country,our region, and our local areas. Great material.

Throughout all of this, a friend of mind was admitted to the hospital with lung cancer. The results of the tests and procedures she is going through were not very encouraging. This is really affecting my wife because the lady with the cancer is her best friend and my wife is really concerned. Yes, about the lady, but also about her family.

For those of you who know me, you know that I am a very competitive person. I enjoy good business competition because I believe it makes us all better in our business. After listening to these speakers and walking through this cancer with our friend, I have come to realize a very important life message. Life is not about competition, it is about living moment by moment and enjoying the trip. What I have discovered, though a lot of you probably already know, is that life is not a race but it is a journey. It is not to be run as fast as we can and when it is over we can look back and say, "Look how fast I got here". Who wants that? Let's slow down, enjoy the ride, give back to those that are around us and as Famous Amos said, "Let's love ourselves and those that are our neighbors." Sounds familiar, doesn't it? Life is truly a vapor, here a minute and gone. I wish each and everyone of you a peaceful and prosperous day. Enjoy this day to it's fullest, and don't worry about tomorrow. Tomorrow will take care of itself.

Oak Harbor Gated Community

Since I’ve been working with a family in Whidbey Links Estates, an Oak Harbor gated community in the heart of town, I’ve really come to understand why they love their neighborhood so much. Bill & Gina have a 2.5 year old son and another one on the way. Safety and convenience are really important since they both work in Oak Harbor and value their time with family. Who wants to spend an hour+ in the car commuting if they can spend that time with family instead? Since they live about 15 minutes from NAS Whidbey and about 5 minutes from many of the stores in Oak Harbor, life is easier and they spend more time doing fun stuff like playing with their son, cooking, golfing, photography and building model trains.
to view home click photo


Whidbey Links Estates is one of the few gated communities in Oak Harbor and the residents enjoy the added security of a gate and safety of living on a cul-de-sac. Many of the homes have a view of Oak Harbor’s golf course, Whidbey Golf & Country Club, and everyone has private access to the 6th hole via a gravel path from the end of their street. All that said, one of my FAVORITE features is the less than 5 minutes it takes Bill & Gina to walk to the park across the street. Ft. Nugent park is a 40 acre community park complete with 5 soccer fields, 2 football/soccer fields, a baseball field, basketball court, 2 volleyball courts, an 18 hold disc golf course, walking trails, a large community built playground and even a concession stand. This is the place to be if you’re a kid (or kid at heart).





If you’re interested in learning more about this Oak Harbor Gated Community, Ft. Nugent Park or the surrounding area please give me a call, email or visit my fanpage at: The Good Life on Whidbey Island. To see listings in this area go to: http://www.whidbeyrealestate.com/


Theresa Jones, Realtor. jones@whidbeyrealestate.com 360-969-6141

Bank Of America Halts Foreclosures

WASHINGTON (AP) — A mushrooming crisis over potential flaws in foreclosure documents is threatening to throw the real-estate industry into chaos, as Bank of America today became the first bank to stop taking back tens of thousands of foreclosed homes in all 50 states.

The move, along with another decision on foreclosures by PNC Financial Services Inc., adds to growing concerns that mortgage lenders have been evicting homeowners using flawed court papers.

Charlotte, N.C.-based Bank of America Corp., the nation's largest bank, said today it would no longer complete foreclosures in all 50 states as it reviews documents used to process foreclosures. That applies to homes that the bank takes back itself and those that it transfers to investors such as mortgage giants Fannie Mae and Freddie Mac.

A week earlier, the company had said it would only do so in the 23 states where foreclosures must be approved by a judge.

What Are The Advantages of a Short Sale in Real Estate

A short sale occurs when a property owner sells real estate for less than the property's loan balance. The property owner typically does this when he becomes upside down on the loan, meaning the property value is less than the loan amount. The lender must give permission for the short sale to proceed. In some instances, the lender forgives the unpaid amount, while in other cases the lender issues a deficiency judgment against the borrower after the short sale.


Lender's Advantage
•When a borrower defaults on a loan, one option for the lender is to foreclose on the property. During a foreclosure process, an angry homeowner might damage the property, refuse to leave or leave prematurely without making necessary arrangements for the care and maintenance of the house. With a short sale, the borrower initiates the process, and if the property is a home, he typically agrees to continue residing at the property. While the lender may receive less than the initial loan balance when the property sells in a short sale or after a foreclosure, the lender could issue a deficiency judgment after the short sale in an attempt to recoup the unpaid balance.

Borrower's Advantage
If a homeowner discovers she is upside down on a loan and needs to move and sell the property, one option is a short sale. In some instances, the lender will agree to forgive the unpaid balance after the sale. Other circumstances can prompt a short sale, such as when the property owner has lost her job and is unable to continue making the house payments yet cannot sell the property for enough to cover the loan balance.

Property owners often perceive short sales in a less negative light than a foreclosure. In some instances, the short sale may be less damaging to the borrower's credit, but it depends on how the lender reports the short sale on the borrower's credit history.


Buyer's Advantage
•Both a foreclosure and a short sale can be a bargain. But in a foreclosure, the buyer is purchasing from the lender, while the buyer is purchasing from the borrower in a short sale. When buying from the property owner, the buyer has more opportunity to learn about the property and receive a full disclosure. Lenders usually do not know the intimate details about a house during a foreclosure, such as, for example, a mold infestation the previous year. A property owner who is the seller is obligated to give a full disclosure on the property to the buyer. A homeowner would be less likely to do malicious damage to the property during a short sale, as opposed to a foreclosure, since he is a party to the transaction as the seller.


Content provided by:
By Ann Johnson, eHow Contributor

What the Latest Fed. Meeting Meant to the Market

It's been said there's a pot of gold at the end of every rainbow. Yet, after last week's regularly scheduled meeting of the Federal Open Market Committee, the Fed helped gold seem more "charmed" than ever. What happened, and what does this mean for home loan rates? As expected, last week the Fed decided to keep the Fed Funds Rate (which is the lending rate banks charge each other for the use of overnight funds, and it is used as a base rate that many other lending rates are based on) at 0.25%. The Fed also reiterated that economic conditions warrant keeping the Fed Funds Rate low for an "extended period".
But the Fed's Policy Statement was clearly more downbeat on the economy and showed greater deflationary concerns than the previous Fed Statement. It also gave the feeling that the Fed will jump in with more Quantitative Easing (QE) if necessary. QE means the Fed is prepared to create Dollars through Treasury purchases, which in turn causes the Dollar to weaken. And last week, in response to the Fed's statement, we saw precious metals like Gold and Silver move higher as a hedge against a weaker US Dollar.
But, the Fed's Statement is also significant because another round of QE by the Fed could mean continued good news for Bonds and home loan rates. What's more, last Friday, respected hedge fund manager, David Tepper, noted that the shift in the Fed's statement also puts Stocks in an almost "no lose" position.
Why is this? Should the economy improve, Stocks go up. But should the economy weaken, and the Fed jumps in with more QE, Stocks could also benefit because more QE alongside a weaker economy brings the Dollar index down, making our exports more attractive. This will greatly help large US multi-national corporations, which have a high influence on the major US Stock indices. The Fed clearly has some big decisions to make in the coming weeks and months to help ensure our continued recovery, and I'll be watching closely to see how Bonds and home rates are affected. Last week, for instance, Bonds and home loan rates ended the week about .125 percent better than where they began.
Another thing to note - there was a mix of housing news last week. Housing Starts rose 10.5% in August from July, which was above expectations and was the highest level in 4 months. Building Permits, a sign of future construction, gained 1.8% and were also better than anticipated. In addition, New Home Sales came in near expectations, while Existing Home Sales were slightly above expectations - but still 19% below the sales pace of a year ago. Also, the inventory of unsold homes was reported at an 11.6 month supply for existing homes and an 8.6 month supply for new homes. Remember: The level of improvement in housing is a big indication of the strength of our economic recovery.

Information provided by: Lyn Bankowski

First-Time homebuyers stoke demand for smaller homes

First-time homebuyers are contributing to an increase in demand for smaller and less expensive new homes, according to research from economists at the National Association of Home Builders (NAHB). Delving into data from the most recent biennial American Housing Survey, which was conducted by the Department of Housing and Urban Development and the Census Bureau in 2009, the study, "Characteristics of New and First-Time Home Buyers," finds that 41 percent of the 8.4 million households who bought a home between 2007 and 2009 were first-time buyers.

The market share of first-timers was up from 35 percent in both 2005 and 2007. Although some of the demand was fueled by the initial version of the home buyer tax credit in mid-2008, which was specifically targeted to those buying a home for the first time, the upward trend is expected to continue as children of baby boomers - members of a generation that is larger than their parents' - move into their household formation years in the period ahead.

First-time buyers for the two years of the study had an average age of 34, compared to 46 for those trading up. The average income of first-timers was over $67,000, about 30 percent below the average household income of trade-up buyers of $97,000. About half of the first-time buyers earned less than $60,000.

The household size of both first-time and trade-up buyers has been declining, while single-person households have been on the rise. First-timers bought homes with an average market value of about $184,000, compared to more than $297,000 for trade-up buyers. First-time buyers bought homes averaging 1,874 square feet, significantly below the 2,549-square-foot home purchased on average by those trading up. Forty-six percent of first-timers bought homes smaller than 1,500 square feet.

The full report is available here.

Budgeting Tips to Help you Buy Your Home

TODAY WE WILL DISCUSS BUDGETING AND HOW TO GET STARTED! I AM NOT GOING TO TALK ABOUT THE FULL DEAL HERE. JUST THE BASICS. IT CAN BE OVERWHELMING… I KNOW. SO LET’S BREAK IT DOWN. IF YOU WANT THAT FIRST HOME TO CALL YOUR OWN, AN UPGRADE, A SECOND HOME, INVESTMENT PROPERTY OR JUST TO DO BETTER WITH THE DOLLARS YOU HAVE, THEN THIS IS A STARTING PLACE.

FIRST, START WITH A REALLY GOOD BUDGETING FORMAT. ONE WITH MORE THAN JUST A FEW GENERIC CATAGORIES. THINK ABOUT THE DOLLARS YOU SPEND EACH DAY, WEEK, MONTH AND YEAR. THEY DON’T FALL INTO JUST A COUPLE OF CATAGORIES. A BUDGET SHOULD REMIND YOU OF THOSE NORMAL EXPENSES THAT ARE NORMAL FOR YOU, EVEN IF THEY ARE NOT NORMAL FOR MOST OF THE POPULATION. IF YOU DON’T HAVE ACCESS TO A GREAT BUDGET FORMAT, LET ME KNOW AND I WILL SHARE ONE WITH YOU. IF YOU DON’T SEE A CATEGORY YOU NEED, ADD IT.

SECOND, BE HONEST. WE EACH LIVE IN OUR LIVES AND HOMES DIFFERENTLY. SOME FOLKS ARE HOMESTEADERS. EACH WEEKEND AND HOLIDAY IS PLANNED AROUND HOME IMPROVEMENT PROJECTS, ENTERTAINING AND PUTZING AROUND THE YARD AND HOME. OTHERS, HIT-AND-RUN. HOME IS JUST A PLACE TO DROP OFF THEIR PERSONAL ITEMS, CHANGE CLOTHS AND GO SOME PLACE FROM. EACH WEEKEND AND HOLIDAY IS PLANNED AROUND OUTSIDE INTEREST AND ACTIVITIES. EACH OF THESE FOLKS ARE GOING TO HAVE A BUDGET THAT LOOKS QUITE DIFFERENT. THINK ABOUT WHO YOU ARE AND HOW YOU LIVE AND SPEND THE MONEY YOU HAVE.

THIRD, BE SURE TO USE YOUR NET INCOME WHEN FIGURING OUT WHAT YOU HAVE TO WORK WITH. THIS IS WHAT IS LEFT AFTER TAXES AND REQUIRED DEDUCTIONS. IF YOU HAVE DEDUCTIONS FROM YOUR PAY FOR SAVINGS, INVESTMENTS, INSURANCE, ETC., (PRE-TAX OR AFTER TAX) THOSE NEED TO BE NOTED YOUR BUDGET AS WELL.

FOURTH, THINK OF WHAT YOU MUST SPEND AND WHAT IS OPTIONAL. NEEDS AND WANTS. THE BUDGET SHOULD REFLECT A PLAN FOR THE FUTURE AS WELL AS THE EXPENSES OF TODAY. IF YOU WANT IT AND IT’ S IMPORTANT TO YOU, PLAN FOR IT. MAKE A CATEGORY AND LOOK AT IT EVERY MONTH. EVEN IF YOU DON’T HAVE THE FUNDS TO ACCOMMODATE IT NOW, MAKE CHANGES AND PLAN AHEAD SO THAT YOU WILL. THIS IS WHERE DISCIPLINE AND GOAL SETTING COME IN.

FIFTH, RE-EVALUATE NORMAL EXPENSES AND BILLS. CHECK YOUR BILLS WHEN THEY COME. ARE YOU GETTING FULL BENEFIT FROM ALL THE SERVICES OFFERED? I RECENTLY WENT THROUGH MY OWN COMBINED CABLE, INTERNET AND PHONE BILL. THERE WERE SERVICES INCLUDED THAT MY FAMILY DOES NOT REGULARLY USE. I CALLED THE PROVIDER AND WE MADE A FEW CHANGES THAT SAVED US OVER $ 20.00 PER MONTH. ($ 240.00 per year)

SIXTH, IF YOU HAVE A SPOUSE, SIGNIFICANT OTHER OR ROOMMATE, EACH OF YOU NEEDS TO FILL OUT A BUDGET SEPARATELY AS A STARTING POINT. THEN SIT DOWN AND TALK ABOUT THE DIFFFERECES, EXPECTIONS, AND PRIORITIES. FROM THAT CONVERSATION CREATE ONE MASTER BUDGET THAT EACH OF YOU AGREES TO. WE ALL HAVE DIFFERENT OPINIONS. IF EVERYONE INVOLVED TAKES OWNERSHIP OF THE BUDGET, THEN THE CHANCES FOR SUCCESS ARE MUCH GREATER.

SEVENTH, PLAN FOR SAVINGS AND INVESTING. FOR MANY, THIS IS THE HARDEST. IF YOU ARE NOT DOING IT NOW, TIME TO START. YOU CAN START SMALL, EVEN $ 25.00 PER MONTH IS A START. WE ALL SLEEP BETTER AT NIGHT WITH MONEY IN THE BANK. LIFE IS UNPREDICTABLE. PLAN FOR THE BUMPS IN THE ROAD, THEY ARE PART OF THE JOURNEY.

EIGHTH, A BUDGET IS NOT A MAKE IT AND FORGET IT DEAL. IT’S A CONSTANTLY CHANGING AND EVOLVING PROCESS. MAKE YOUR BUDGET VISABLE, VIABLE AND USEABLE.

NINTH, IF YOU NEED HELP AND THE PROCESS IS OVERWHELMING, GET HELP. FIND TRUSTWORTHY, EXPERIENCED, HELP.

TENTH, TRACK YOUR RECEIPTS FOR PURCHASES, MONTHLY BILLS AND STATEMENTS. THESE ARE THE TRUTH TELLERS OF HOW YOU SPEND YOUR MONEY. EACH MONTH WHEN YOU SIT DOWN WITH YOUR BILLS AND BUDGET, USE THESE TO DETERMINE YOUR STREGTHS AND WEAKNESSES. MODIFY AS NEEDED.

PLEASE, KNOW THAT THIS IS JUST A STARTING POINT. MANY, MANY BOOKS HAVE BEEN WRITTEN ON THIS TOPIC. YOU MAY CONSIDER READING ONE OR TEN OF THEM. PERHAPS TAKE A CLASS OR ATTEND A SEMINAR. THESE TIPS ARE DESIGNED TO GET YOU THINKING AND MOVING TOWARDS A BETTER TOMORROW.

ALL THE BEST! LYN

Contributed by: Lyn Bankowski AlaskaUSA Mortgage

THIS IS INFORMATION IS NOT TO BE CONSIDERED LEGAL OR FINANCIAL ADVICE. PLEASE SEEK THE PROFESSIONALS IN THOSE FIELDS WHEN NEEDED.

Foreclosure & Short Sale Scams are Going Strong

The housing market in the United States may not be thriving, but business is booming for foreclosure rescue and loan modification scammers.

The US Government Accountability Office (GAO) released a report in July 2010 entitled “Home Ownership Preservation”. It states that: “The current foreclosure crisis has provided persons who may perpetrate mortgage foreclosure rescue and loan modification schemes with unprecedented opportunities to profit from homeowners desperate to save their homes.

The GAO report says there are two main types of foreclosure rescue and loan modification scams: advance-fee loan modification schemes and sales-leaseback schemes, with advance-fee schemes being the most common.

The Federal Trade Commission (FTC) reports on a new twist on the advance-fee scam that’s showing up this year, a “forensic mortgage loan audit.” The scammer offers to find regulatory violations in your original mortgage that will help you avoid foreclosure or even cancel your loan. There’s no evidence that anyone has ever succeeded in modifying their loan using this approach.

Here are some “red flags” that at-risk homeowners should watch out for when looking for foreclosure help, courtesy of the FTC. You should avoid any business that:

• guarantees to stop the foreclosure process – no matter what your circumstances
• instructs you not to contact your lender, lawyer, or credit or housing counselor
• collects a fee before providing you with any services
• accepts payment only by cashier’s check or wire transfer
• encourages you to lease your home so you can buy it back over time
• tells you to make your mortgage payments directly to it, rather than your lender
• tells you to transfer your property deed or title to it
• offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
• offers to fill out paperwork for you
• pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

courtesy of MilitaryAvenue.com

Washington Realtor Membership Declines

With the slowdown in home sales nationally comes a decline in the membership of the National Association or Realtors and the Washington Association of Realtors. According to an article in the Inman News, in Washington state, which had the second-highest peak-to-trough drop nationwide, Realtor membership dropped 8.3 percent between August 2009 and August 2010, which the state's association also attributed to delayed impacts from the housing downturn.

"The decline in the housing market hit Washington later than elsewhere. The data indicate that the Puget Sound area peaked about a year after the national peak in home prices, and that recovery in home prices has been slower in Puget Sound than elsewhere," said Steve Francks, Washington Realtors' CEO.

Whidbey Island, Island County, Washington Information

Island County is a unique area, well known for its exceptional quality of life. Island residents and tourists alike marvel at the fantastic views of the snow-covered Cascade and Olympic mountains as they relax in this pastoral setting. The islands comprising Island County are Whidbey Island, Camano, Ben Ure, Smith Deception, Strawberry, Baby, Minor and Kalamut.

The two settled islands, Whidbey Island and Camano Island, are favorite destinations for weekend visitors with easy access via State Route 20 over Deception Pass, State Route 532 to Camano, and the State Ferry System routes accessed off-island at Mukilteo and Port Townsend.

Whidbey Island is the longest island in the contiguous United States - 45 miles long with 148 miles of shoreline. Camano is 16 miles long and has 52 miles of shoreline. Whidbey Island is located 27 miles north of Seattle and 50 miles south of the Canadian border. Island County has a total land area of 208 square miles (Whidbey - 168 sq. mi; Camano -40 sq. mi).

European settlements were first established in the early 1850's in the Penn Cove-Coupeville area. The rich history of this area has been preserved through the establishment of the Ebey's Landing National Historical Reserve. The small communities that were established along these sheltered shorelines in the 1850's are today highly regarded as locations for permanent homes and summer residences as well as small but successful businesses.

Information provided by Island County Economic Development Council

Questions?? Questions?? Questions??

Short Sales? Foreclosures? REO Properties? Bank Owned Properties? HUD Repos? What kind of houses are these? Are they good Deals? Should I buy one?

VA? FHA? Conventional Financing? ARMS? 15 Year? 30 Year? What Down payment? Points? Buy Down? Closing Costs? Yikes, what should I do???

There are many opportunities and questions in today’s real estate market. I believe because there are also so many unknowns and choices that consumers are overwhelmed and fearful of making a decision. They don’t want to make the WRONG decision.

Our responsibility is to help you make the decision that is RIGHT for you. We are passionate about this. We want what is best for you. As professionals, we have been guiding home buyers and sellers through this maze for a long time. We are continually educating ourselves on the latest laws, trends, marketing ideas, and technology so that we can answer your questions and point you in the right direction.

If you are a buyer with questions or frustrations, let us help you with some answers. If you are a seller and need some counsel or want to know our marketing strategies, give us a call or email or visit our website. We consider it an honor to be of help to our neighbors and friends. Thank you.

Understanding Your Mortgage Interest Rate

Contributed by:

Lyn Bankowski

Alaska USA Mortgage

Years ago, a Mortgage Loan Officer had a basic rate sheet and from there, with a handful of adjustments, a rate quote could be provided quickly. That has all changed. Now rates are based on several criteria and are very specialized and personalized.

What will your rate be? There are always exceptions, but generally your credit score leads the way. Keeping your credit profile in order has never been more important!

Waiting For Home Prices to Go Lower Can Cost You Money

While it seems that waiting for the price of Whidbey Island homes to go lower before purchasing is a good idea, it may cost you more to wait than to purchase now. Trying to time the bottom of a market, to get the "best deal" is very hard to do. With interest rates at their lowest levels in quite some time, it is in the buyer's best interest to negotiate their best deal now and lock in the mortgage rate that is currently available. It is recommended that you visit with your local Whidbey Island lender and get pre-qualified at today's interest rate and go shopping for your dream home now instead of waiting for prices to go lower.

This video discusses and compares the differences of interest rates. Please feel free to call us with any questions or visit our Whidbey Island website for further information.

Renter's Insurance (part 3)

Replacement Cost vs Actual Cash Value

Most renters insurance policies are based on Replacement Cost Coverage. But, some are based on Actual Cash Value loss settlement.

Replacement cost coverage pays the cost to replace the damaged or destroyed item. For example, if you have a couch that you paid $1,000 for 2 years ago and it’s currently worth $400 used, it may cost $1,200 to replace. A replacement cost policy will pay you the $1,200 to replace the couch. An actual cash value policy will pay you the cost new, less depreciation. In this case, it may be $400 or even less.

Jewelry, Guns, and Antiques are usually handled differently. Check with your agent to be sure that you have the coverage you want. The time to have the discussion is before you need the coverage.

Coldwell Banker Koetje Real Estate and Koetje Property Management encourage you to talk to your insurance agent and make sure you have the proper coverage.

Contributed by:
Shelli Trumball
Cascade Insurance Agency

Home Selling Assistance for Military Members

Many military members are not aware of the Homeowners Assistance Program
(HAP) that went into effect when the Stimulus package was signed last month.
Most of the info on the "Homeowner's Assistance Program" is found on their
website (http://hap.usace.army.mil).

- Current provisions from HAP:
*Reimburse the applicant for part of your loss from selling the
home.
*Assist the applicant if you don't receive enough proceeds from the
sale of the home to pay off the mortgage
*Buy the applicant's home by paying off the mortgage (not available
for overseas applicants).
*Help the applicant if the mortgage is in default.

- Individuals eligible for HAP now that the Economic Stimulus Package is
signed:
*Wounded warriors with at least a 30% disability rating relocating
for medical treatment or medical retirement
*Uniformed Service Members under PCS orders to a duty station
outside a 50-mile radius of their current station. The primary residence
must have been purchased before July 1, 2006 and sold between July 1, 2006
and Sep. 30, 2012.
*Uniformed Service Members, & Federal Civilians including NAF
(nonappropriated
funds) employees who are affected by BRAC (Base Realignment & Closure),
without tying the decline in home values to BRAC.
*The Spouse of a member of the Armed Forces or a civilian employee
of the Department of Defense or the United States Coast Guard if - the
member or employee was killed in the line of duty or in the performance of
his or her duties during a deployment on or after September 11, 2001, in
support of the Armed Forces or died from a wound, injury, or illness
incurred in the line of duty during such a deployment.

Whidbey Island Short Sales

Whidbey Island, Wa. is home to Naval Air Station Whidbey Island. Many of our homeowners are active military members and must relocate every 3-4 years. During normal economic times, purchasing a home, living in it for 3 years and selling when needed is not a problem. With a normal 3% - 5% yearly appreciation, selling costs are absorbed and a small profit can be made if the owner needs to sell after 3 years of home ownership. They have experienced the tax benefits, as well as all of the other benefits of owning a home on Whidbey Island during that time.

During today's economic times though, most of our homeowners that purchased a home in the last 3 -4 years are upside down with their mortgage. There is more money owed than the house can sell for thus creating a predicament for the homeowner. One of the solutions is to allow the bank to foreclose on the home, drastically affecting credit ratings, etc. Another possible solution is to work out a compromise with the lender and sell the home for less than what is owed. These are commonly known as a short sales.

On Whidbey Island today, we are experiencing quite a few short sales. It is a large segment of our real estate market at this time. Anyone considering purchasing a home would want to consider short sales. There are some unusual circumstances and time lines required with short sales and they should be entered into only with a knowledgeable agent as your guide.

View a list of Whidbey Island Short Sales and contact a qualified agent today.

Military Tax Credit Extension

We are pleased to present another reminder to all of our military and DOD personel about the Home Buyer's Tax Credit Extension that has been granted to those who qualify. Take the time to view the video and make sure that any of our Military Members who might qualify are aware of this benefit and extension.

Search homes that are currently available for sale

Whidbey Island Real Estate Update

The summer selling season is upon us. With good Whidbey Island weather, squadrons coming home, and a great real estate buying environment (low interest rates, plenty of homes for sale, tax credit availability for some of our military members) the real estate market is looking up.

Below are some statistics from Trulia.com for Whidbey Island and the surrounding areas. You may also search all homes for sale on our local website, http://www.whidbeyrealestate.com/

98277, Oak Harbor Homes For Sale

98277, Oak Harbor Homes For Sale

Saving Money on Renter's Insurance

While most renters insurance is competitively priced, discounts are available. Be sure to ask your agent about these discounts. Most companies offer ways to reduce the cost of your insurance through a wide range of discounts.

Be sure to let your agent know if you have any of the following

• Smoke Detectors
• Deadbolt Locks
• Fire Alarm
• Antitheft Devices
• Sprinkler System
• Fire Extinguishers

Most companies also provide discounts when you package your auto insurance with renters insurance coverage. The discounts are usually between 10-25%.

By using Electronic Funds Transfers, you can save time and avoid the cost of postage for mailing your insurance premiums. The Electronic Funds Transfer billing fees are usually lower than regular payment plans as well.

Increasing your deductible is another way to save money on renters insurance. Increasing from a $500 deductible to $1,000 or $2,500 deductible can save.

Don’t be afraid to ask for discounts and let your agent know what protective devices you have in your home.

Search homes that are currently available for Rent in Oak Harbor, Wa.

contributed by;
Shelli Trumball
Cascade Insurance Agency

Whidbey Island Realtor participates in STP

Whidbey Island Real Estate agent, John Adkins, from Coldwell Banker Koetje Real Estate, will be riding his bicycle in the Seattle to Portland Bicycle Classic this year for the first time. He will be doing the ride with a group of 8 riders, all from Whidbey Island or family members of folks from Whidbey Island. The event is a major fund raiser for many organizations.

The Seattle to Portland Bicycle Classic, or STP, is an annual one and two day supported bicycle ride from Seattle, Washington to Portland, Oregon in the United States. The STP "is considered one of the 10 biggest recreational bicycle rides in the country, drawing riders from across the nation and from other nations", and has been operating for more than 25 years. It is approximately 200 miles (322 km) in length. Most riders complete the distance in two days; however, about 15% complete the ride in one day. The event sold out with over 10,000 registered to participate.

Why Have Renter's Insurance

Contributed by:
Shelli Trumball
Cascade Insurance Agency

While you are renting, renters insurance has you covered in more ways than one. Your possessions are worth a lot to you. So when you rent an apartment or house, you need insurance that covers you and your belongings in case of an unfortunate event.

Renters insurance can give you the protection you need at a price you can afford. Most insurance companies provide solid basic coverage and allow to you add more options if you need them.

The essentials of quality protection include coverage for your furniture, clothing, appliances, coverage for items you take while traveling, additional living expenses, and more. Personal Liability coverage provides protection if someone is accidentally injured while in your home, or their property is damaged and the damaged is caused by: you, your children, your pets, your personal activities and most sports.

Most policies cover your contents in the event of a fire, windstorm, lightning, theft, smoke or water damage, and much more. Coverage can be provided for as little as $10 per month. Packaging your renters insurance with your auto insurance can save you money too. Talk to your agent about the benefits of having renters insurance or call us at (360) 682-2162 for a free, no obligation quote.

Whidbey Island Homes For Rent

There are many outstanding Whidbey Island homes for rent. A great place to find these Whidbey Island homes is Koetje Property Management. They offer a wide variety of homes from low priced studio apartments to large view homes. You can find great Whidbey Island homes for rent at their website. Click to Search Rentals


An example of a beautiful Whidbey Island home for rent is this 3 bedroom 3 bath home in Harbor Vista. It has a grand entrance, entertainment sized kitchen and impressive family room with glass doors to your private views of beautiful Oak Harbor, the eagles and abundant wildlife. To see more info or request info for this wonderful Whidbey Island rental please click the photo.


Also for rent on Whidbey Island is this cute 2 bedroom apartment. It is located just minutes from downtown Oak Harbor and NAS Whidbey Island. It is within Walking distance of beautiful Harbor Station and Starbucks, as well as a grocery store. To see more info please click the photo to the right.


These great Whidbey Island homes for rent and many more are available from Koetje Property Management. They are located in Oak Harbor, Washington and would be happy to assist you in finding a rental or managing your investment property. You can find more info for Whidbey Island homes for rent on their website at http://www.whidbeyislandrents.com/ or by calling 360-675-2271.


Also during the month of July, if you rent one of these homes from Koetje Property Management your application fee will be credited towards your first month’s rent. To stay up to date on promotions follow them on Facebook at facebook.com/koetjerentals

Energy Efficient Construction Makes Good Sense

Contributed by:
Ted Clifton
Clifton View Homes
Whidbey Island, Wa

1. Why invest in Energy Efficient Options for your Home?

* Investments in Energy Efficiency are among the most secure investments you can make, offering high, guaranteed returns.
* Whether you are concerned about Global Warming, the diminishing supply of oil and other fuel resources, or the fact that much of our energy supplies come from foreign countries, reducing the amount of energy you use at home is a very good thing to do.

2. What kinds of Energy Efficient Investments can I make in my home?

* Some of the easiest investments are in compact fluorescent light bulbs and more efficient appliances. Just plug them in and start saving money!
* Replacement windows and additional attic and under-floor insulation are other easy options, but with a little higher initial cost.
* A full High Performance Energy Remodel often offers the highest return on investment, though it may take several weeks to complete. New technology allows the owners to stay in their homes, almost all the work is done from outside.

3. How can I compare a new home to an existing older home, when it comes to Energy Efficiency?

*New homes built in the last few years will use about half the energy of homes built thirty years ago, and only about 1/3 the energy of homes fifty or more years old.
* Compare energy bills, and add the energy cost to the amount of your monthly payment. Remember, though, that the Mortgage interest is tax deductible, the energy bill is not. how much more could the monthly mortgage payment be, if the energy bill was cut by 2/3?
* Consider having a High Performance Energy Remodel done on your home, it will usually more than pay for itself in the first few years, and by the time you have retired your mortgage, you may have several hundred thousand dollars more in your pocket than if you had just continued to pay the high energy bills.

4. So, what is Green Building, really?

* Green Building is really about building everything in a more responsible way.
* Built Green is the trademarked name for local Green Building programs.
* Built Green homes are likely to be more Energy Efficient than other homes.
* Built Green homes will probably last longer than other homes, requiring less maintenance.
* Built Green homes will offer better indoor air quality, for improved health of the occupants.
* Built Green homes typically are gentler on their surrounding, impacting the soils and surrounding water ways in a less harmful way than other homes.
* Less material waste is generated from the construction of a Built Green home, reducing the pressure on our disposal systems, and saving you money.

In summary, Energy Efficient construction and Green Building are two concepts that just make good sense. Remember when gasoline was 24 cents per gallon? It isn't any more! How much have you paid for gasoline over the last thirty years? You have most likely spent about the same amount for home energy. Imagine if you had about 2/3 of that back, with interest? Can you spell C-O-M-F-O-R-T-A-B-L-E R-E-T-I-R-E-M-E-N-T?

Military Tax Credit Extension

Whidbey Island's Real Estate Company of Choice presents a short video explaining the Home Buyer's Tax Credit Extension for qualified military members. Please forward to any military member that you might know who is considering purchasing a home. We want to get this word out. Thanks.

Whidbey Island Chamber of Commerce in the News

On Whidbey Island the Oak Harbor Chamber of Commerce was awarded the "Friend of the Navy" for the extraordinary support of the Navy and the NAS Whidbey Island Sailors and their families. The Oak Harbor Chamber of Commerce was recognized for leading key events that directly benefit the Naval Air Station Whidbey Island personnel, including the annual military appreciation picnic, parades and the 4th of July Fireworks. The Chamber's commitment and extraordinary contributions to the military community and to NAS Whidbey Island are commendable and merit this special recognition.

Proposed Tax Credit Closing Change

The National Association of REALTORS® today expressed thanks on behalf of America’s homebuyers to three Senators for introducing a measure to extend the present home buyer tax credit closing deadline to Sept. 30. They are Senate Majority Leader Harry Reid, D-Nev., and Sens. Johnny Isakson, R-Ga., and Chris Dodd, D-Conn.

“As the leading advocate for homeownership and housing issues, NAR commends these Senators for their attentiveness and sensitivity to thousands of qualified home purchasers, who through no fault of their own, are not able to meet the closing deadline of June 30 for the home buyer tax credit. Now we urge the Senate and the House to act quickly to pass this legislation and ease the minds and pocketbooks of these home buyers,” said NAR President Vicki Cox Golder.

The measure was offered as an amendment to H.R. 4213, a tax extension bill now in the Senate.

NAR estimates that approximately 75,000 home buyers of distressed properties who have qualified for the tax credit and met the contract deadline of April 30 would not be able to close their transaction by the June 30 closing deadline. REALTORS® have reported as many as one-third of qualified applicants have been notified by lenders that their mortgages will not close before June 30 due to the sheer volume of applications in the pipeline.

“These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a work-flow jam with the lenders or other delays and might not be able to complete the purchase of their homes,” said Golder. “It would be a tragedy for them not to be able to complete the purchase in time to claim the credit.”

Golder said she also wanted to make this clear: “This amendment does not extend the deadline for home buyers to qualify for the tax credit; it extends the deadline for closing the transaction, from June 30 to Sept. 30. Since these applications were already in the pipeline and figured into the program’s cost, the extension of the closing deadline should not incur any further government costs.”

— NAR

Whidbey Island Real Estate Condition - Where it Was, Where it Is, and Where it is Headed.

The residential housing marketplace here on Whidbey continues to present a challenging environment. Home sales are still occurring although their number is down considerably from recent peak years. Based upon data provided by the Northwest Multiple Listing Service, 2005 was the peak year for home sales when 1,635 homes sold.

For the prior 12 months ending May 31, 2010 there were 750 home sales reported on the Island. On the basis of home sales activity it would appear that the local housing market bottomed out this past winter. On a 12 month moving average basis, the number of home sales has been slowly rising each month since that time.

In contrast, home prices appear to be still in a state of fluctuation. Some months the reported average sale price (on a 12 month moving average basis) is up a tad; other months it is down slightly. This is probably an indication that prices are stabilizing. It appears that the better properties are selling more quickly and for the most money. Such properties are those that have the best locations and/or are improved with homes that are in good, well-maintained condition, with contemporary floorplans and, of course, fairly priced. On the other hand, the properties having poor locations and/or homes with significant functional obsolescence or that are in poor condition are suffering the most.

It appears that as we go into the summer selling season that the inventory of available homes for sale is rising. The number of foreclosures and bank-owned homes that are competing for buyers will need to dissipate before there can be return to normalcy. Another concern is what impact will the expiration of the $8,000.00 federal tax credit program have on the local housing market.

This continues to be buyers market and will likely remain so for the foreseeable future.

Written by Gregor M. Strohm, ASA

Polnell Shores - A Great Community

Polnell Shores is a beautiful community to live in. It is located on the East side of Oak Harbor Bay on North Whidbey Island with beautiful surroundings. Polnell Shores is approximately 20 minutes from NAS Whidbey and 15 minutes from downtown Oak Harbor.

Polnell Shores is one of the many water front communities on the island. It has been known to be one of the more affordable waterfront communities to live in. From the Polnell Shores community you can enjoy beautiful sunrises over Skagit Bay, and great mountain views, including Mount Rainer.

Polnell Shores also offers residents beach access. This benefit is yet another reason that Polnell Shores is a great place to enjoy island living.


A great home in Polnell Shores is currently available for sale. It is a beautiful 3 bedroom home with many updates including a Jacuzzi tub in the large guest bath. This home has lots of counter space in the kitchen as well as a breakfast bar. To view this home and consider Polnell Shores as a place to live please click the picture above.

If you would like to see other available homes in Polnell Shores please check out Coldwell Banker Koetje Real Estate. We would be happy to help you find a home in Polnell Shores or any other community you may be interested in on or around Whidbey Island.

Whidbey Island Insights

Whidbey Island from the view of a Whidbey Island Real Estate Broker.

Thirty five years ago, when I first arrived on Whidbey Island, I thought I would only be here for 2-3 years. I came here via the Navy and as a California boy, planned to return to the big city. Once I was here though, as many of you have also discovered, I found Whidbey Island to be a beautiful place to call home. I have thoroughly enjoyed living, working and playing here. I believe that I have added years to my life by living in this less-stressful environment.

For enjoyment, Whidbey Island and surrounding areas, have so much to offer. From outside activities like golf, fishing, hiking, and biking to wonderful indoor activities like our community college, fantastic senior centers, indoor swimming pool, and numerous hobby clubs.

If you are new to Whidbey Island, or considering moving here or having a second home here, I would encourage you to stop by our Chamber of Commerce (they are full of outstanding information) or give us a call (360-675-5915). We would be more than happy to share information and experiences with you. There are many great local links for Whidbey Island information on our website.



When you are on Whidbey Island, please feel free to stop by either of our two offices in Oak Harbor. The coffee is always on.

Whidbey Island Habitat for Humanity News

Habitat for Humanity of Whidbey Island will have a "Blitz Build" lead by Jon Roberts of Cascade Custom Homes and Design of Oak Harbor. The home will be completed in three weeks after the foundation is completed. Thank you Jon for putting together such a great team to do this fantastic job for a Whidbey Island family. For further information regarding Island County Habitat for Humanity go to www.islandcountyhabitat.org

Open House for Whidbey News Times

Grand Opening: The Whidbey News-Times, South Whidbey Record, Northwest Navigator Would Be Honored If You Could Join Us To Celebrate Our Grand Opening At Our New Location In Coupeville 701 South Main Street, Coupeville-in Coupe's Village Ribbon Cutting Ceremony & Open House Open To The Community, Wednesday, June 2nd at 5:30 p.m. Food · Beverages · Door Prizes · Raffle. Any questions contact us at: (360) 675-6611 or (360) 221-5300.

Thinking about a career in Real Estate

Tax Credit Extension for Military Members

Members of the military and certain other federal employees serving outside the U.S. have an extra year to buy a principal residence in the U.S. and qualify for the credit. Thus, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2011. If a binding contract is entered into by that date, the taxpayer has until June 30, 2011, to close on the purchase. Members of the uniformed services, members of the Foreign Service and employees of the intelligence community are eligible for this special rule. It applies to any individual (and, if married, the individual’s spouse) who serves on qualified official extended duty service outside of the United States for at least 90days during the period beginning after Dec. 31, 2008, and ending before May 1, 2010.
Give us a call with any questions you might have. We would be pleased to help you benefit from this extension.

North Whidbey Real Estate Update

by Hal Hovey

There was some good news for our local real estate market in April: Home sales for the month of April on North Whidbey Island were up 18% from a year ago, and median prices were up almost 2% from a year ago! Some of the increase in sales may be due to a last-minute scramble to take advantage of the First Time Home Buyers Tax Credit before it expired on April 30th, so it is too early to declare that the real estate market is in full recovery. But this good local news follows on the heels of positive state news as well. Home sales in Washington State were up 32% for the first quarter of 2010 compared to 2009, and Island County as a whole has seen a 39% increase in sales for the year-to-date ending April 30, 2010. We’ll continue to watch for signs of market movement and let you know what we see!

Paragliders soar over Fort Ebey - Whidbey News Times

Looking for something to do outside? Come visit Whidbey Island and watch paragliders soar over Fort Ebey.

Check out the article from Whidbey News Times.
Paragliders soar over Fort Ebey - Whidbey News Times

Top 10 states for existing-home sales growth in Q1 | Inman News

Check out the this article.
Washington Ranks 6th. Idaho and Oregon are also in the top 10.

Top 10 states for existing-home sales growth in Q1 Inman News

Median home prices up in 1Q - Yahoo! Finance

Median home prices up in 1Q - Yahoo! Finance

Whidbey Playhouse Tickets Available

Tickets are now on sale for the Whidbey Playhouse production of the Rodger's and Hammerstein musical "Cinderella". This timeless enchantment of a magical fairy tale will warm the hearts of children and adults alike. "Cinderella" concerns a young woman forced into a life of servitude by her cruel stepmother and self-centered stepsisters, who dreams of a better life. With the help of her Fairy Godmother, Cinderella is transformed into a Princess and finds her Prince.

The musical opens June 4, 2010 at the Whidbey Playhouse, 730 S.E. Midway Blvd in Oak Harbor and closes June 27, 2010. Tickets are $16 each, but groups of ten or more receive a $1 discount for each ticket. Show times are 7:30 PM for Wednesday, Thursday, Friday and Saturday evening performances, and 2:30 PM for Sunday matinees. Call the box office at 360-679-2237 for further information, show dates, group discounts, and reservations, or email at office@whidbeyplayhouse.com or check the website at www.whidbeyplayhouse.com. The Whidbey Playhouse is wheelchair and handicapped accessible.

Buyers Rush to Meet Tax-Credit Deadline

As the federal tax credits come to an end, home buyers everywhere are hurrying to get in under the wire.

But in California the rush has turned into something of a stampede as some would-be buyers try to qualify for both the federal credit and a $10,000 state credit that kicks in Saturday.

As one home shopper tells the Los Angeles Times, "I am looking at properties almost constantly, and it is just kind of a feeding frenzy right now.”

"The stimulus has worked," says Rick Hoffman, president of Coldwell Banker Residential Brokerage in San Diego and Temecula Valley. "Buyers are confident that we have seen the bottom of the real estate market and that we are on the way back up."

Source: Los Angeles Times, Alejandro Lazo (04/30/2010)

Will the End of the Tax Credit Hurt Real Estate Business

Q: Will the expiration of Home Buyer Tax Credits have a major impact on the homebuyers? Or will the ending of Home Buyer Tax Credit unlikely to deter real estate buyers?

A; I don't think there is any doubt the ending of the Home Buyer Tax Credit HBTC will affect the real estate market negatively. The question is for how long? My opinion is that the affect will be short term. Again it is my opinion that with the deadline of the HBTC gone, more people will start to take notice of the value that is available in the short sale market.
There are many quality homes for sale at greatly discounted prices that have been overlooked because of the deadline imposed by the HBTC. Traditionally, short sales have taken a long time to close. However because of the negative effect of foreclosures on the economy, the Obama administration is bringing pressure to bear on the banking industry to speed up the process. This speed up is becoming apparent. I am looking for these sales to pick up.

Community Concert

The Whidbey Community Chorus presents its annual spring concert this weekend. There are two performances. Both are performed at the Oak Harbor 1st Methodist Church on Ireland Street in Oak Harbor. The music performed includes some songs from "Cold Mountain", songs from John Denver, and a collection of Big Band era songs. This is expected to be one of the best concerts this chorus has performed yet. The concert is on Friday, the 29th of April at 7:00 PM and a matinee on Sunday at 4:00 P.M. Admission to both concerts is free.

Gil Daigle Attends Specialized Real Estate Course

Gil Daigle, of Coldwell Banker Koetje Real Estate, has completed a highly specialized course in the new skills involved in obtaining and servicing real estate listings, conducted by the Council Of Residential Specialists of the National Association Of Realtors.

The course included techniques in sell counseling, pricing, various client servicing activities, marketing techniques and other programs designed to close sales on residential properties.

"Today's real estate market is more complex then ever before and the listing process has become the key in the movement of residential properties," said Gil. "This course provided me with new input to enable me to serve both buyers and sellers of residences more effectively."