Life sometimes catches us off-guard. It’s not unusual for family situations to change suddenly and a move becomes necessary.  So many times I have discussed the need for regular updating to a home.   When it’s time to sell (and there will be that time) the job of preparing for the marketplace is easier, and less costly, if there has been regular maintenance.

I have been showing homes this last week and I am amazed at the conditions of some properties. The facts are these: there are fewer buyers, more competition, and decreasing values. Why wouldn’t a seller want to capture the buyer by being competitive? That means to offer more amenity at a lower price. Simple.

I have seen more unkempt homes, trashed yards and filthy toilets than I ever care to see. Ah, you say, short sales. No. Maybe sellers haven’t been told that selling a house is like selling anything else. There’s a lot of competition–what are you going to offer that will inspire the buyer to think “wow, we had better grab this before someone else does”. Wake up America! (Always wanted to use that line…..after looking at houses on the market it seemed appropriate!)

All the statistics may tell a story, but what is really happening in the real estate marketplace? It was true that every person involved in real estate in 2006 knew the “upswing” couldn’t last (and yes, there were other obvious signs that the economy would topple). Now we look for the subtle signs that there could be more activity. Here’s what I know.

Yesterday I spoke with a person involved in advertising, in particular, “jobs”. She noted that there is some optimism as the requests for job ads have increased in Spokane. Several days ago I was speaking with the employee at the Spokane Association of REALTORS who is responsible for data input. She commented that March was much busier than the previous two months. Finally, I was listening to an instructor that had acquainted herself with our local data and her assessment was that we had ” bottomed out” and it appeared our market was moving in the right direction again.

Only time will tell, but I am optimistic. If you are going to buy, do it this spring. If you are selling, it might be the time to prepare your home to be the very best home, and presented at the most competitive price. Lenders are working through more and more changes, but I hear some optimism from them too! Let’s get on with new goals!

Today I received good news from a loan officer whom I have referred many clients to in the past. Julie Johnston (218-0919) at Cherry Creek Mortgage let me know that loans for investors have, in the past, been limited to four properties– but now has been extended to ten! Perhaps this is a sign of good things to come. The ability to get a loan plays a large part in our market recovery. What an opportunity for investors–it’s the right time to buy! Our statistics are not looking good yet, however the buzz among the Realtors is that they are experiencing a bit of spring activity. That’s good news.

As a side note, my picture blog is almost a reality……I’m taking pictures, transferring from camera to computer, to folders then organizing software….. and that’s where it has stopped. The web site is in its’ final design stages and soon I will be letting everyone know where to find daily pictures of our beautiful area.

Signing off…..with camera in hand.

There are always articles about what to do when selling a home, but I just read one that really made sense. Read on for some great information.

Ten ideas:

• neutralize to neither feminine or masculine (i.e., no fussy lace curtains with rose print pillows);
• paint surfaces in earth tones (i.e., putty, mushroom, taupe or dusty greens);
• paneling doesn’t need to be removed—use good neutral paint to give a homey feel;
• kitchen cabinets painted to match walls and use brushed metal hardware;
• lighting need not be hard-wired—just effective;
• curtains should match windows or simply use blinds for a simple and clean look;
• flooring and counters can be replaced inexpensively with new products that mimic the custom hardwoods, tiles and stone (i.e, stenciling on wood flooring can look like inlaid detailing and give a designer look);
• hang inexpensive art, such as framed calendar prints;
• replacing bathroom tile quickly updates but remember to keep all the tiles the same color—and don’t get too fussy with rope borders, etc.;

And finally;

• walk across the street and look at your front door. Curb appeal is still a primary reason why someone may appreciate your home. The yard should be landscaped, well maintained, and have good color. A few big pots of bright flowers are probably the least expensive way to say “welcome”!

Have you heard the secret about investing in real estate? We would have to live under a rock to have not heard the encouragement, “It’s time to invest!” You may have received notes from your favorite REALTOR® that state it’s a great time to buy real estate. In a few years when our economy is again buzzing with activity we will hear someone say “I should have bought a couple of rentals.” It is no secret – timing has always been the trick to investing.

In order to get a grasp on the skill-set needed for owning real estate properties, it is important to talk to the experts. Property managers work for homeowners. Some of their duties would be to secure tenants, manage maintenance and handle the emergencies. There are many professional property management companies in our area, several of whom were willing to share their wisdom and insight.

Who rents a house, condo or apartment? Greg Hansen of G.K. Hansen Real Estate explains that in the current economy there are families that have lost their homes to foreclosure and need a rental property. Many are struggling with credit challenges and cannot qualify for a new loan to purchase. Hansen noted that he is seeing new tenants asking for longer term leases – knowing it will be several years before they can qualify again. Also, there will always be those who do not want the responsibility of homeownership. Renting and leasing can be very appropriate for some.

When is the best time to invest in rental properties? And why? Several answers stood out when local area property managers were queried. Ron Dickerson of R.W. Dickerson Management Co. says, “It’s always a good time – it’s a solid investment. I can walk up and touch it. Stock can be gone with no recovery but I will always have the property.” Time has indeed proven that in spite of economic ups and downs, the real estate investments continue to have the least risk. Dave Baker of Baker and Associates says, “I cannot remember a better time to buy. Prices are favorable.” With low interest rates, if an investor can qualify for a loan, this is an opportune time to take advantage of the marketplace. The tax benefits are worth investigating. When the tenant pays rent and the rent pays the expenses plus the mortgage, over time, it can be a self-funding retirement investment.

Now that ownership is a reality, what’s next? How and why would anyone use the services of a property manager? Dave Baker feels that, in his opinion, most horror stories about residential property management occur with properties that are self managed. “The owner is too close to the property itself, the tenants, and owners may lack the experience to make the tough decisions.” Ron Dickerson feels that there are many rules and entrapments. He finds it extremely important to understand the law and to be able to work with attorneys. Some of the duties of the property manager would be to advertise, locate, screen, place the tenant and collect the deposits and rents. Also, to keep records, pay bills, forward net proceeds to owner, inspect and handle maintenance. Property managers handle deposits and damages. When necessary, they handle the eviction process. All are well worth the professional management fee.

These property managers all agree that investing is wise – all are property owners themselves. They believe in their product and the services they provide.

Each real estate investor must evaluate his goals. Retirement, college, or estate building – reasons abound. The time is now! We invite readers to contact the many qualified REALTORS® and Spokane-area REALTOR® companies that also offer professional property management services. When you choose a REALTOR® who abides by the Code of Ethics, you are choosing a professional property manager you can trust, and their expertise and professionalism will be valuable for achieving long-range investment real estate goals in the Spokane region.

Published in the Spokesman Review September 26th, 2010.

This is the question every REALTOR® hears, “What makes a house sell in this market”? New family goals sometimes create an urgency to sell properties. Other sellers might be simply toying with the idea of moving. REALTORS® could categorize this thought process as “testing the market.” Statisticians delight in their data collections and while real estate professionals are leery of absorbing all negative information, we are aware that reports of larger inventories and fewer buyers are accurate.

Motivations that result in the “For Sale” sign in the front yard do vary. The question of what is selling will still be asked. At a recent meeting of the local chapter of the Women’s Council of REALTORS® (WCR) each member was asked, “What makes a house sell in this market?” The WCR is a group of real estate agents (both men and women) whose purpose is to raise professional awareness to better serve their clients. Here are some of their responses:

WCR local chapter President, Jennifer Valerien, a REALTOR® with RE/MAX Inland Empire, had this to say, “A seller must truly want to sell – which is a combination of pricing appropriately and showing competitively. A house must be priced in the bottom 20% of all the competition, but show in the top 20% of all the competition.”

Other members summarized this way, “Priced right and staged well,” “A realistic selling price and a house that offers more than others,” “Price dictates sales right now,” and “Has to be best priced, best valued in the neighborhood.”

Another WCR member, Linda Knaggs with RE/MAX Inland Empire said, “Condition & price! You must have a home that shows well and is move-in ready. Price must be at or below market value because there are so many homes on the market for buyers to look at.”

Each WCR member was anxious to share their experience. All comments told the same story – that there are, indeed, purchasers in the marketplace. They seek the best property for the best “deal.” When the seller complies with market demands, buyers make offers to purchase. REALTORS® are educated to guide and serve their clients, both buyers and sellers. Listen to their advice – it’s what each one has experienced on a daily basis.

The best summary came from the group effort of Maria Walker, Marilyn Amato and Shelley McDowell, all REALTORS® with Century 21 Beutler & Associates in Spokane. They wrote, “Perfect orchestration of the following: Pre-approved buyers, motivated sellers, right price, creative lender, tenacity, diligence, hard work and lots of prayer!” Most REALTORS® have heard stories of sellers burying a statue of St. Joseph in the yard of the home for sale. While this practice may have worked for some, too many of us know of several statues getting a little moldy. Maybe it’s the combination of price, condition, urgency of the seller and the power of something we can’t explain!

Your REALTOR® wants to help you, whether selling or buying. Our community is alive and well. Contact a REALTOR® today.

Published in the Spokesman Review August 29th, 2010.

Feeling a little anxious about choosing your new home? Many can give advice, but you, the buyer, have the responsibility to choose your advisor wisely. Here are a few thoughts from those within the real estate industry.

Over 80% of those purchasing a new home will first seek information from the internet. Think education! Be aware of the marketplace, neighborhoods, schools, shopping and health care facilities. Check out census bureau data and crime rates in specific areas. The location of your new home may not be the same your REALTOR® or relatives would choose. Don’t be afraid of making personal choices.

Once purchasers feel ready to earnestly look at homes that are for sale, it might be time to interview a good advisor. REALTORS® are not only knowledgeable about the buying process-they do this for a living. If you aren’t happy-they aren’t happy! Choose to work with one professional and be loyal. Loyalty is a two way street-clients get the best support when the REALTOR® trusts the sincerity of his customers. A competent REALTOR® will suggest that you make financial arrangements for purchasing-either seek a lender, transfer cash, or perhaps secure gift letters and funds.

With your chosen professional you will make a list of necessary criteria. What are needs, wants, and honestly are there areas where you would compromise?

Because there are many homes from which to choose in the current market, the temptation might be to plan on 20 or more viewings in a day. After all-let’s get on with the show! Studies have shown that seeing more than 7 or 8 homes in a day creates brain fog! Don’t worry – your REALTOR® can’t remember many more homes in a day either! One of the best ways to clarify choices is to take notes. A camera works well, too. Prioritize the viewings – if some properties are tempting because of a great yard-double check your “must have” list. Does the tempting property have the necessary amenities, i.e., bedrooms, bathrooms, etc. It’s one thing to love the yard, but Little Johnny can’t sleep outside forever! Be honest when viewing houses – that’s why you made a list of “needs”.

How do you finally make the choice? Look at your list of acceptable homes – how many are there? Five, maybe six at the most. Go back with fresh eyes …… look at surroundings, inside more cupboards, basement and garage spaces. Re-prioritize. Maybe two homes have surfaced as acceptable ….. drive in the neighborhood at different times of day-or talk to neighbors. They are a wealth of information. Don’t forget, your REALTOR® is a resource for information – but he isn’t living in the home – you are!

Rely on professional advice for inspections, legal issues, transactional processes, market data and general input. The REALTOR® you chose will have negotiating skill and guide you through the offer and closing process. All the searching and detail follow-up will be worth it when you have the new keys in your possession. Oh yes, change the locks. Who knows how many of those wonderful neighbors have a key to your new home!

Published in the Spokesman Review September 12th, 2010.

I am noticing that there are more and more “for sale” signs going up in neighboring yards. Open house signs are popping up on the streets on Sunday afternoons. It must be spring. While I am busy with our Realtor association business, my priority is still helping my clients with their real estate needs.

The clock frequently reports that Linda is up later than usual. Jim and I were laughing today about our awareness that life is short and we are just “tap dancing” a little faster. So much to do! This last week you can find five new homes listed on my web site. Every seller is being reasonable in their pricing and I am very proud to say that each home is attractive and has been lovingly prepared for the marketplace. We are optimistic about the market this year—families still wanting to make changes.

On a quick note, congratulations to two families that recently closed on their new homes! Amy and Curtis and their children—what a delight. Kevin and Kay—from the East coast all the way West! It has been my privilege to work for these families.

Where does technology take us? I have been thinking a lot lately about all the tools I have to communicate with my clients. Of course, family is included too. The web camera that lets me see my grandchildren is very precious!

While I’m sitting in a class and absorbing all the new legal requirements of my profession, I can still communicate with closers, title people and clients via text messages. When I am teaching a class I watch some of the class members’ thumbs – busy, busy thumbs! At that point I hope they’re having business conversations. Today in an education committee I listened to the discussion about our need to understand all the social networking opportunities. Facebook, Myspace, Youtube, and what is Plaxo, Autorain, etc.?

In my office we have a very successful agent that is still grumbling about the fact that he doesn’t think “that the Internet thing will really catch on”. Of course it’s tongue in cheek – he’s sitting at the computer as he continues to mutter his disdain. I won’t go that far, but I think there is a limit to all the conveniences of communication. It can consume much of my time. So there it is again, taking control of my business and my life. Setting priorities – how can I truly serve you, my client. What do you need from me? One of my philosophies of business that I teach is this “to be successful in business, find a need, AND FILL IT.”

I’m working on staying current and filling the need of all my clients. No time to stop. Yes, Jim and I are glued to three PCs, two laptops, palms, phones, digital this and digital that, but we’re having to ask ourselves; how much time are we really saving?

By now everyone has heard of the $8,000 first time home buyer tax credit. Definitely it is a wonderful opportunity for some to become home owners. There are multiple web sites giving the details but I will give you a quick run-down.

It is interesting how quickly these guidelines have changed, with some agencies trying to make the credit dollars available at the time of the purchase to use for down payment obligations. My understanding is that option has now been completely eliminated. Stay tuned – anything can change!

Purchasers claiming the credit cannot have owned a home within the last three years – that constitutes a “first time” home buyer. The tax credit is equal to 10% of the home’s purchase price – up to $8,000. There ARE income limits. After complying with all the requirements, claiming the credit is as simple as filing a tax return. (Did I say “as simple as”?)  Any home that is considered to be the principal residence will qualify; houseboats, townhouses, condos, mobile homes, etc. Purchases from January 1, 2009 to December 1, 2009 can qualify. Let’s see, can I anticipate a “rush to purchase” in November? My advice, don’t wait. Lenders are facing new guidelines in July that could extend the closing period by weeks.

Act now – this happy little benny won’t last long!!

Borrowers should always consult their tax advisor regarding any tax incentives.