I am often asked, "How's The Real Estate Market in Oak Harbor?"
I was recently asked to speak at the Rotary Luncheon about the state of the real estate market in Oak Harbor. My speaking engagement was postponed for a few weeks, but I thought I would share some of the information in this blog. I will continue with a second blog that will address another area that affects the real estate market, Short Sales and Bank Owned Properties.
The first answer that I have after someone asks me about the real estate market is, "It depends". Now I am not trying to be flippant with that statement, but my answer really does depend on if you are a buyer, a seller, when you bought your home, etc.
If you are a buyer, the question is a no brainer. The Oak Harbor Real Estate Market is fantastic. In fact, I just helped my niece and her family make a purchase of a home. Interest rates are at all time lows (though they are starting to creep up). There is a large supply of inventory on the market for sale right now and sellers are being very generous in their negotiations.
If you are a seller and you have owned your home for at least 10 years, than it is a good market. As you can see from the chart, home prices have appreciated 3-4% average over the last 10 years. So if you need to sell, than from an investment perspective, you have made a good decision and the Real Estate Market is good.
If you are a seller and you haven't owned your home for more than 5 years, than the value of your home is probably equal to or less than your original purchase price and you might want to consider other alternatives to selling, such as rent, or not moving. If you are in this situation than the Oak Harbor Real Estate Market is not so good but is getting better.
A large component of the Oak Harbor Real Estate Market is Short Sales and Bank Owned Properties. In my next post, I will explain the statistics for these sales and how they are affecting our market.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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!
