You are the source. What does this mean? It means that your knowledge, your emotions, your photos are what create the personality of the home you have lived in and are selling. Sharing these brings your home to life. So tell me your story. We have the time, and it does make a difference.

All homes have a story. Sometimes it is about the history of the people who have lived there, and many times it is just the story of why you bought this house and made it your home. I have heard some very funny stories from people who are just driving by a house and know that is the house they must live in. It may not be on the market right now, but they are going to live in it some day. Some even go up to the house and tell the owners if they ever sell that they want to be the 1st to know about it. Surprisingly this has worked many times, and they have ended up the owners of this home that called out to them.

Some people have raised their families in homes they sell, and I find the pencil marks on the door from the garage to the kitchen showing little Susie’s inch by inch growth over the years. It’s always hard to have those painted over. Out back might be an apple tree that you put in the ground the 1st year you were in your home, and today it means a fresh apple pie to those who visit in the fall.

Gardens are always full of stories, and just like the color you chose for your kitchen, the garden gives this home a certain personality which is a reflection of you.

I try to use these source stories when I sell your home, because otherwise it ends up just another house on the market with 3 bedrooms, a large kitchen and and a two car garage.

So when you sell your home, whether it be with me or someone else, tell the story. It will make you feel good, and it will be something special to pass on to those who love your home and buy it.

Watch this video about a home for sale on Plum Tree Lane on Whidbey Island in Clinton. This home is loved and cared for by Jill Johnson the long time owner. You can feel the history and emotions that come with this, and you know that soon someone is going to buy this home and love this home just like Jill.

Most of us today are concerned about our environment, and recycle paper products with enthusiasm. We try to not use paper products when we can avoid it, and we read our magazines and newspapers and then recycle them too.

That is why it is a mystery to me why some sellers insist on having a flyer box. Granted, not everyone wants one, but if you drive around you will see that many people have them, and they are stuffed with faded paper when it’s sunny, wet soggy paper when it’s raining, and a lovely combo of the two most of the time.

I figured out that I use two reams of paper a month to keep my flyer boxes “fresh”. Not only is this a loss environmentally in the production of the paper, but the ink, and of course the energy (power) to copy.

But if you want to know what the sad part is about this, it isn’t about the waste, the money, the time. It is about the fact that I may never get to talk to that person who looks at your house, thinks they might be interested, and then looks to eliminate it through either the price on that flyer or something that they think doesn’t match up with their needs. And that is really too bad
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You see the most important element of our agreement is my willingness to market and sell your home. I have spent decades talking to people about homes, finding what their needs are, and helping them find the right home. When they call about your home I get to take the power of my experience, the facts and the most interesting characteristics of your home and present them to the buyer in a way that will move them one step closer if it is the right home. It’s a win win for all. So what about that flyer box? Well if you are a seller working with me now, give me a call and we will take that off the sign. The sign has my telephone number, and people will use it.

If you have your house listed with someone else call them. Tell them you want them to sell the house to the interested party, so please pick up that flyer box. And if you haven’t listed your home, when you do, please call me, and together we can save a tree and sell a house.

A Selling Scenario…..

You have the nicest home on Whidbey Island, the friendliest neighbors , the best view, the most lovely gardens, and now you want to sell your home. You want to sell it for as much as you can.

How do we decide what is the “as much as you can” price without getting to the buyer’s “no way” price?

These are the factors we start with.
1) What homes have sold around your home in the last 12 months. We start with a radius of 1 mile and move out. Then depending on how many homes we get in this search, we add special features about your home. The view, the construction, age, community amenities etc.

We then take these homes that we have put in our cart and do a more complete analysis to find those that are the very best match for your property. If we are lucky in today’s market we have 2 or 3 at most in the last year sold that meet our criteria.

Now we need to look at how long these homes were on the market? What was the sales price compared to the list price. How many price reductions did the seller take?

2) Now things get tougher. We see what is available on the market now that we would see as the “competition”. These homes can be in a wider radius if necessary. Buyers usually give themselves a lot of leeway here. We take a look at these homes. Either we go together or you trust my evaluation.

3) Now we discuss what you can do to put your home at the top or near the top of this short list. You probably cannot change some things, and may be unwilling to change others. Where are you on the list after you decide on any improvements you will make? This is important.

Moving on to Pricing

This is the most critical moment. I can hear you now….. “Yes I see the market prices for these homes, however, I think I should be able to get a little more. Let’s start higher and see how it goes.” This is the worst decision you can make. We have all heard you are only new once. Well there is no truer statement in real estate.

You capture agents and buyers attention when you 1st come on the market. Once you are on over a week to two weeks, you are not new, you are not hot, and the buyers will still come, but they will be looking for pricing concessions if they decide to buy your home.

How to Avoid this Scenario

Price right in the beginning. You will sell your home more quickly and you won’t get put on the pile of houses that are eventually going to take price reductions to get sold.

Get the Facts and Deal With Them

Once you know the facts, you still have some options. Maybe there are some improvements that you can do to your home that will kick it up a notch on the potential sales price. Possibly, staging your home, or offering owner financing can make a difference.

If after we review all of these things you are ready to put your home on the market, please consider competitive pricing. The SOLD market does not lie. These are the prices people are willing to pay today, and if you want that 4 letter word attached to your home in the near future let’s get it right before we put in on the market.

Start Early

Give you self plenty of lead time to get your home ready. If your home is on the market now, and is not getting showings, we may need to do another market analysis. It is a moving target, so be sure you are always on top of it.

You must price it right when when your home 1st goes on the market. You have about 21 days to be “new”. After that you are just another home in the ever increasing inventory that we are all seeing now. I can show you comparatives, we can review the numbers, the days on market etc, I can provide good photos, but if you are not priced very competitively you will not sell your home.

Because buyers struggle with getting financing today, and home appraisals are very conservative, it is important that a client and their Realtor spend the time to be sure that your home is priced right from the start and that the evidence is clear on why it is priced correctly.

Important things to take in to consideration when pricing your home. 1) homes for sale or which have sold recently within a 2-3 mile radius of your home. Be sure that you know the facts about these homes. 2) On sold properties compare the original price to what it ultimately sold for, and how many days it was on the market. 3) Be sure your home is the best or at least one of the best looking homes on the market in your price range. It might be that you need to have new landscaping, paint, or update the window coverings. Part of having the right price is being the best property you can be at that price.

Trust your Realtor. We spend our time looking at homes, comparing statistics, talking with buyers. We know how to compare your home to others on the market. Ask the questions, get the right answers and then put it on the market to sell.

It is amazing the variety of homes that are available for sale on Whidbey Island. That is why I think I enjoy helping buyers and sellers find their dream homes. Because more times than not, we have the dream home here they are looking for.

We have homes on high bank waterfront which afford views of whales passing by in the Saratoga Passage, homes on low bank which let you race out the front door and kick up the sand, and fish from the shoreline. We have homes on acreage with gardens, ponds, wetlands and wooded spaces. We have small community style homes for those who want private space to live near others, and 20+ acre farms for land lovers.

And yes, now is really a great time to buy! Home prices are low, interest rates are low and some of the local banks like Peoples Bank and Whidbey Island Bank have incredible loan packages available.

Why is it good for sellers? Well even though there is plenty of inventory, when the pricing is right, savvy buyers and good agents will find your home. The internet has made everyone more aware of what a good priced home is. This is good for both buyers and sellers. Email me and request “10 tips for buying your home”.

The catch phrase has been around for some time, and can be used to describe homes without any real substance behind it. In the last few years it has taken on a new definition with the public’s concerns about energy costs and global warming.
But buyers do need to beware of the loosely used marketing term “green”. There are now third party certifications that can be included when sellers put their homes on the market. The LEED program is one of the programs with the most stringent standards. A more likely program available in our area is a certification from Energy Star. To qualify for this program a home must be at least 15 % more efficient than homes that were constructed to the 2004 International Residential Code.
One of the additions to your inspection contract when you are purchasing a home can be an energy audit. Some inspection companies are now adding this as an additional feature of their regular inspection for anywhere from $300 to $500 additional cost. At this time I could not locate an inspection company on Whidbey Island that offers this service. However, below I have a recommendation for a company on Camano. This type of inspection may include an audit of the energy efficient features, make recommendations and also could include a blower-door test which provides a picture of just how tight a home’s building environment is. If the home has air leaks and is poorly insulated a green heating system will not do you much good.
As a side note, energy efficiency may not be considered in the appraisal on your home. Appraisers are not allowed to consider green components separately. Home value is still based on what the market value is compared to other properties. If you plan to stay in your home, some great ideas for “greening” can be found in this video.

If you are interested in having your home tested for energy efficiency you might start here; http://www.pinnacleinspection.com Pinnacle Inspection is located in Island county on Camano Island and has an extensive set of services for those looking to lower their energy costs and help make our world green again.
The subject of building green and buying green is immense, and though you can find a lot of information on line, your best source is to go to those who work in the business. If you are considering buying an older home, or remodeling your current home, a consultation with an expert is highly recommended.

Get your eggs lined up

If you have been listening to what is being said about shadow real estate inventory by many economists, you will understand what real estate professionals, and bankers are frightened of.  There is a great fear that  the shadow inventory, will stymie the housing recovery.

What is shadow inventory? There are many definitions.

1st definition – Foreclosed but not listed.  Some analysts say the “shadow inventory” is the homes which the has bank foreclosed on but not sold.  These are homes that are not on the market but owned by the bank (REO’s not listed on the market).

2nd definition – Homes in the foreclosure process as well as delinquent mortgages where foreclosure proceedings are imminent.

3rd definition – All homes delinquent, short sales not on the market, REOs not on the market, and anything in the foreclosure process.

4th definition – All of the above plus modified loans (as they have a large percentage of failing anyway, pay option-arms about to be reset, and lots sitting idle with builders in trouble.

If you go with definition 3, which is what I and many of my colleagues go with,  then naturally your focus is to look at delinquency rates which are widely published.  So to say we have no way of knowing the true size of the shadow inventory is false.  The mortgage banker’s recent survey with data ending in the 4th quarter shows that 9.47% of all loans are delinquent.  That’s a scary number; however the number was down slightly when seasonally adjusted.  Also according to this recent survey 50% of all past –due mortgages were 90 days or further past due.  This is the highest number in the history of the mortgage banker survey.  Usually you’d see a large glut of 30-day past-due balances, which becomes smaller at the 60-day mark, and there would be smaller yet number of 90-day balances (assuming homes were being liquidated with efficiency).  Confused yet?

With fewer loans at the 30-day mark, it seems the glut of sub-prime loans is being flushed through the system but only so slowly that it is creating the large inventory (the 90-day past due loans).  The government and banks are trying loan modifications, short sales, and foreclosure work outs to reduce these properties flooding the market.  Unfortunately distressed assets are distressed assets, especially when they have negative equity.

Standard & Poors sees this shift in lender strategy as temporary as lenders will realize that these toxic assets are unredeemable in most cases.   Therefore these homes, estimated at 33 month’s supply or 5-7 million, will eventually hit the market.   If they do, home prices could head lower because of increased inventories.  The saving grace for the market could the limited new home construction, recent loss in builder confidence, a growing economy, and continued political pressure on banks to keep foreclosure as a tool of last resort. Do you think there is nothing to worry about?

The good news is, there is great pressure on the banks to work with owners to work out, modify, short sell, or salvage these loans in some way.   This being possibly a good sign of that with the B of A offer.    So I guess we can hope that lenders will work with these 5- 7 million asset holders, and find a way to keep people in their homes, and the economic recovery trucking along.

You may want to consider investing in some improvements to your current home as spring approaches. Before beginning, it is wise to see if the home improvements you are contemplating are eligible for a home improvement tax deduction.

Generally, you cannot deduct home repairs or home improvements on your tax return in the current tax year. However, if you are selling your home, home improvements may potentially reduce your capital gain. The IRS has a nice publication, that does a good job of explaining what improvements might qualify.

The first thing you need to understand is the difference between a home improvement and a home repair. A home repair is fixing a problem. For example, repairing a hole in the roof, fixing a leaky faucet or repainting a room would be considered repairs. Remodeling a kitchen, adding a room, building a garage or installing a swimming pool would be classed as improvements. These improvements add to the living appeal of the home’s owners and usually add value to the home.

The Internal Revenue Service has strict guidelines on how a homeowner can claim a tax deduction for home improvements. It is strongly recommended that before you hire a contractor or start any home improvement works that you obtain advice from you tax consultant or from the local office of the IRS.

Tax deductions can fall into any of several different categories. A medical condition that required providing disabled access to home would normally be classed as a home improvement.

If you are planning improvements to an area of your home that is in need of repair you may be able to include the repair as an improvement. The Tax Act states that where a repair is carried out in the same area of the home that is being remodeled then the repair can be included as part of the remodeling project. So, if you are planning on remodeling your kitchen don’t forget to take care of the leaking pipes at the same time and claim the entire project as a deduction.

Tax credits provide significant savings to the homeowner. A tax deduction for home improvements can reduce the amount of income on which tax is payable, a tax credit directly reduces the tax itself. Tax credits are available for many types of home improvements, notably for improving the energy efficiency of your home. For example, installing insulation, adding energy-efficient windows, and some types of highly efficient equipment for cooling and heating, and solar water heating may qualify for tax credits.

And when you begin your home improvements remember to maintain accurate records of spending and save all receipts. This is an enormous help when the time comes to claim your home improvement tax deduction.

What is important to do, and what is not, for properties I represent for sale?  In my profession I must ask this question for each of the properties I represent every day.

First and foremost, it is important that I make sure that my clients properties are being presented in an inviting way to the buying public.  This means that I have the highest quality photos and marketing text.  This creates for the buyer a pleasing and anticipatory climate while finding out what they wish to know, and helps them in their decision to follow up further on this property.

Second, is the property being listed in the places that most serious buyers look for homes? Studies show that 87% of all buyers begin their search for properties on the internet.  Usually that is at one of the national or a strong regional real estate websites. Today buyers are able to get more information than ever before about the market, how the  homes that they are considering match up in pricing to similar homes in the same community,  and other pertinent information that helps them narrow their search.  I check the websites where my properties are listed, make sure that the photos and information is formatted correctly and that we are getting hits and follow through views on the pages.  If not, I make the changes needed to bring it to the high standard I have set.

Third, is my market presence strong? Am I easily reached?  Is my presence in the on line community and the real world community a benefit to my clients?  This takes effort, as the there are always many ways a Realtor can choose to promote their listings in a way that is not offensive and  shows a benefit to the community.   I have found a strategy that works for me, and it is highly beneficial to my clients too.

This is just a small part of what a day in the life a professional Realtor is like.  If you want to know more please call or email me.  And yes, that is an important part of my day too…..talking to you.

Looking at Whidbey Island Real Estate Statistics ending  Dec 2009, our year to date sold homes finished ahead of last year.   Active listing inventory is down but I think that may have more to do with it being December, and we will need to see what happens in the early months of 2010 to give any weight to this statistic.   The year to date sold prices is down ( -11% ) on South Whidbey.  So, even though we see some stabilization, there are still homes being sold at lower prices today.   Because we have so few homes that sell, many of our statistics can be highly affected by a sale of a foreclosure home.  So this must be considered when applying data to our outlook.  Days on market, (DOM) are up, which usually reflects less buyers currently moving forward to purchase. Again, seasonality is a big issue here, and December has not usually been a strong month.

It is clear now that the housing boom of 2004 – 2006 was temporary and artificial. It wasn’t an indication of forever escalating prices; though many seemed to believe so. The boom market was a bubble of inflated prices and irrational expectations of unqualified profits. These beliefs were fed by bank and mortgage companies making loans that should not have been made.  Just as the stock market bubble that preceded the Great Depression created investors of doormen, maids, construction laborers, bartenders, and others seeking to capitalize on skyrocketing stock prices; the housing bubble created a wild frenzy of speculation and inflated home prices that was impossible to sustain.

Homeowners who purchased anticipating great profit,  particularly those who bought early enough to borrow against their profits, have seen their dreams of easy money and growing equities vanish. More than two million of those homes have fallen to foreclosure, and many more may follow. This is a depressing fact, but one that we will have to consider in pricing homes for sale in the future.

Hindsight is great, and shows the error of such paths. We should have known better, but we didn’t want to miss what appeared the opportunity of a lifetime. Homes, however, are not a commodity to be traded like soybeans, pork bellies, or precious metals. Homes are just that, a place to live, raise a family, create memories, and find solace at the end of day.

The bursting of the housing bubble may ultimately restore order to both housing and the financial markets; and hopefully a repeat of this will not occur in the near future.

With that in mind, should anyone buy a home today? Of course some should. But those who are motivated solely by profit may find disappointment. Will home prices increase?  Absolutely. But it may take time, and it may not be what everyone’s expectation has been.

History tells us that the prices of those homes bought with careful consideration of both location and value will increase at a rate above the rate of inflation.  It is therefore important in the new year to take a look at the home you have for sale, are considering selling, or to buy, and see if it fits the new criteria.  If not, it may be time to adjust your thinking.