Altitude Homes | Keller Williams Realty

Author: John Hurlbut

  • Buying a Home? 4 Demands to Make on Your Real Estate Agent

    Buying a Home? 4 Demands to Make on Your Real Estate Agent

    Are you thinking of buying a home? Are you dreading having to walk through strangers’ houses? Are you concerned about getting the paperwork correct? Hiring a professional real estate agent can take away most of the challenges of buying. A great agent is always worth more than the commission they charge, just like a great doctor or great accountant.

    You want to deal with one of the best agents in your marketplace. To do this, you must be able to distinguish an average agent from a great one.

    Here are the top 4 demands to make of your real estate agent when buying a home:

    1. Tell the Truth About the Price

    When making an offer on the home you want to buy, make sure that your agent walks you through their plan for getting both the seller – and the bank – to accept that price. Too many agents will just take the offer that you suggest and then try to ‘work’ both you and the seller in the negotiating phase later. In a competitive market, you need an agent who is going to help you make the best ‘initial offer’ so that you stand out from the crowd. Every house in today’s market must be sold twice – first to you and then to your bank.

    The second sale may be more difficult than the first. When prices are surging, it is difficult for appraisers to find adequate, comparable sales (similar houses in the neighborhood that closed recently) to defend the selling price when performing the appraisal for the bank. A red flag should be raised if your agent is not discussing this with you at the time of the original offer.

    2. Understand the Timetable with Which Your Family is Dealing

    You will be moving your family into a new home. Whether the move revolves around the start of the new school year or a new job, you will be trying to put the move to a plan.

    This can be very emotionally draining. Demand from your agent an appreciation for the timetables you are setting. Your agent cannot pick the exact date of your move, but they should exert any influence they can to make it work.

    3. Remove as Many of the Challenges as Possible

    It is imperative that your agent knows how to handle the challenges that will arise. An agent’s ability to negotiate is critical in this market.

    Remember: If you have an agent who was weak negotiating with you on parts of the purchase offer, don’t expect them to turn into a superhero when they are negotiating with the seller for you and your family.

    4. Find the Right HOUSE!

    There is a reason you are putting yourself and your family through the process of moving.

    You are moving on with your life in some way. The reason is important or you wouldn’t be dealing with the headaches and challenges that come along with buying. Do not allow your agent to forget these motivations. Make sure that they don’t worry about your feelings more than they worry about your family; if they discover something needs to be done in order to attain your goal, insist that they have the courage to inform you.

    Good agents know how to deliver good news. Great agents know how to deliver tough news. In today’s market, YOU NEED A GREAT AGENT!

  • How Long Do Families Stay in a Home?

    How Long Do Families Stay in a Home?

    The National Association of Realtors (NAR) keeps historic data on many aspects of homeownership. One of the data points that has changed dramatically is the median tenure of a family in a home. As the graph below shows, for over twenty years (1985-2008), the median tenure averaged exactly six years. However, since 2008, that average is almost nine years – an increase of almost 50%.

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    Why the dramatic increase?

    The reasons for this change are plentiful. The top two reasons are:

    The fall in home prices during the housing crisis left many homeowners in a negative equity situation (where their home was worth less than the mortgage on the property).
    The uncertainty of the economy made some homeowners much more fiscally conservative about making a move.

    However, with home prices rising dramatically over the last several years, over 90% of homes with a mortgage are now in a positive equity situation with 70% of them having at least 20% equity.

    And, with the economy coming back and wages starting to increase, many homeowners are in a much better financial situation than they were just a few short years ago.

    What does this mean for housing?

    Many believe that a large portion of homeowners are not in a house that is best for their current family circumstances. They could be baby boomers living in an empty, four-bedroom colonial, or a millennial couple planning to start a family that currently lives in a one-bedroom condo.

    These homeowners are ready to make a move. Since the lack of housing inventory is a major challenge in the current housing market, this could be great news.

  • Buying is Now 37.7% Cheaper Than Renting in the US

    Buying is Now 37.7% Cheaper Than Renting in the US

    The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

    The updated numbers actually show that the range is an average of 17.4% less expensive in Honolulu (HI), all the way up to 53.2% less expensive in Miami & West Palm Beach (FL), and 37.7% nationwide!

    Other interesting findings in the report include:

    • Interest rates have remained low, and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.
    • Home prices would have to appreciate by a range of over 23% in Honolulu (HI), up to over 45% in Ventura County (CA), to reach the tipping point of renting being less expensive than buying.
    • Nationally, rates would have to reach 9.1%, a 145% increase over today’s average of 3.7%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.

    Bottom Line

    Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to help you find your dream home.

  • A Look at Inventory Levels…

    A Look at Inventory Levels…

    I consider myself a geek.  I love geeking out over numbers and in Real Estate there is no shortage of numbers to geek out over. For those of you that have read or watched my market updates in the past, you know that one of the indicators I like to watch is “Months of Inventory”.  This can help you figure out if you’re in a balanced market, a seller’s market or a buyer’s market. In general, 0-3 months worth of inventory is a Seller’s market, 3-6 months of inventory is a balanced market and anything over 6 months worth of inventory is a buyer’s market.  Many of you will remember our buyers market was defined as 2008 – 2011.

    Real Estate is cyclical.  After having done this now for close to 14 years, I’ve seen the cycle.  I’m working on my second one.  I watched as the market ran up 2003 – 2006 . . . fell 2007 – 2011 and have been watching it rise since 2012.  Change IS in the air my friends.  No one can accurately predict when that change will come, but it will come.  Some people think it’s already starting, and in some areas of the country, they may be right.  Some people think it’s a year or two away.  Regardless the change will come.

    The other thing Real Estate is, is local.  I have a client who’s home was on the market for 30 days before she received an offer.  She was stressing and calling me nearly every day saying “When are we going to get an offer?” and “My neighbor’s home sold in 6 hours” and “My friends told me their neighbor’s home sold in a day”.  Of course no one is saying “My home took 3 months to sell” or “I tried selling and couldn’t”, but those two scenarios are just as likely and the others.  NEWSFLASH:  Every house doesn’t sell.  Every house doesn’t sell in 1 hour or even 1 day or heaven forbid, even 1 week.  In the case of my client, average market time for homes in her area in her price range was 28 days.  We got an offer on day 31.

    When I say that Real Estate is local, I mean it’s local.  Your neighborhood, is different than the next neighborhood over.  Your home even though it might be the “same” as your neighbor’s is different. When you say “They got an offer in 6 hours” what were “They” selling?  Right now in Pierce County, if you have anything relatively nice under $250,000 you can probably expect it to sell fairly quickly.  If “Their” home was a 3 bedroom 2 bath home for $235,000, priced well, staged well in a desirable community and school district, it probably DID sell in 6 hours.  But you can’t compare that to a home that’s listed for sale at $450,000.  They are two different animals.  The pool of buyers for a $450,000 home is smaller than the pool of buyers for a $235,000 home.  It’s just a fact of economics.

    So what I did was put together this handy chart showing you what inventory levels are like in different price ranges for ALL of Pierce County.  Again, Real Estate is local.  So if you happen to have a $235,000 home in Pierce County, that doesn’t mean that where your home is has exactly 1.3 months worth of inventory.  Elbe for example will have more months of inventory than University Place.  People are lining up to buy homes in University Place, people pass THROUGH Elbe on the way to Mount Rainier.  (Sorry to both of you that live in Elbe and are reading this)  Real Estate is Local.  Real Estate is Cyclical.  If you want specific information for YOUR home, let me know and I’m happy to put together a personalized report just for YOU.

    Notice that as you get above $400,000 in Pierce county, inventory starts to rise.  As a side note, I did this same analysis in King County and not until you get above $1,250,000 do you have more than 2 months worth of inventory.  Crazy town.  It’s a Seller’s market in every price category up through $1,500,000 . . . which is where I stopped because I didn’t want to make myself throw up.

    Have a look, comment below!  Click on the image for a larger version…

    Months of Inventory by Price Range in Pierce County, Washington
    Months of Inventory by Price Range in Pierce County, Washington
  • Multiple Offer Strategies for Home Buyers

    Multiple Offer Strategies for Home Buyers

    In the market we are having an inventory challenge with our real estate market. There are simply not enough homes right now for sale to meet the buyer demand. Many homeowners are sitting on the sidelines, happy about what the increase demand is doing for home values, but they don’t want to tap into their home’s growing equity by selling their home and moving up for fear they either can’t find a home that was worth their leaving or they will have to compete with other buyers. First time homebuyers are sitting on the sidelines, not sure how to make a move.

    Although the perception is that few opportunities exist in the market for buyers right now, this is a market that you can take advantage of. Here are misconceptions about the market and the facts:

    Myth: Fact and Strategy:
    All homes are selling as soon as they come on the market. I won’t be able to react that fast! Although many homes are selling within a week of hitting the market (which provides enough time to see the home once or twice, do a preinspection, and write the offer) there are some homes that languish on the market for two weeks, a month, or even longer. The average days on market in our area right now is 24 days.
    All homes are selling for multiple offers! Many homes are selling for multiple offers, but for some homes with a limited buyer pool or even homes that simply place second or third in the listings that came on the market during the week may not receive multiple offers. And some homes with multiple offers only have two or three offers. Not all homes get 20+ offers.
    Homes are selling for 30%, 40%, or 50% above list price! I don’t know what price range to search for a home in! In our market, the list price to sales price average is currently 105%. That means that homes, on average, are selling for about 5% more than what they are listed for. Although we need to discuss your personal strategy, if your budget is $400,000 for a final sales price for a home, we should be looking around the $375,000 price point based on these averages.
    If I sell my home I am worried I am going to have to settle for something I don’t want or be homeless. This is a common concern, but there are options such as a short-term rentals or even renting your home back from the buyers. I realize moving twice isn’t your ideal situation, but renting for a month or two from a homeowner via Vacation Rentals By Owner (VRBO) or AirBNB may give you the breathing room you want AND will put you in a better position when you do make an offer since you won’t have to sell your home first.
    The market can’t go up much more. I think I will stay put. The market can absolutely continue to go up. In the 80’s it was unfathomable that the Dow Jones Industrial Average would break 10,000 and now we are almost at 20,000. In our area, median sales prices have increased 20% over March 2016 median sales prices. That means if you bought a home for $350,000 last March it could be sold for $420,000 today. You don’t want to be kicking yourself a year from now if prices increase another 7%, 10%, 15% or more. And remember, the more home you own, the more equity a gain will bring!
    If I have to move out of the area, I won’t be able to make a move quickly if I buy a home. First time homebuyers may be concerned about moving from the flexibility of renting to owning a home. However, most property managers require a lease of six months or a year, so if you were in a lease and had to move, that is similar to the challenge of having to sell a home that you purchased.

    If this has you thinking that buying or selling now is an option worth exploring, call or text (253) 222-2626 or send an email to john@altitude-re.com.  All it takes is a little strategy to potential reap some big rewards!

  • State of the Market – February 2016

    Sorry for the boring video, but it is the easiest way I know to convey that we have LOW INVENTORY!!! If you’re thinking of selling your home, now might be the time! Prices are up and inventory is super low! Buyers are almost begging to be the one to buy your home! Check out the stats and give me a call, text or an e-mail.  Thanks!

  • Video Tour of 4401 212th St Ct E, Spanaway WA 98387

    Absolutely turn key home in Classic View Estates! All the updating has been done for you! Newer roof, newer siding, newer vinyl double pane windows, HUGE composite deck for entertaining with a view of Mount Rainier! All of this on a shy 1/2 acre lot in a quiet gated community. Lots of room for gardening, RV parking, toy storage, you name it it’s all here! Don’t miss the HUGE storage area in the garage either! 4 Bedrooms. Living room up, Family room down. Full bath down. Tons of Parking!

  • This month in Real Estate – January 2016

    The video above gives you a good national perspective. Here’s how the stats break out for the three county area (Pierce, Thurston and King County).

    In Pierce county we closed out 2015 selling 13,273 homes, that’s up from 11,307 in 2014, a 15%. Pierce county finished the year with 2,001 Active listings compared to 2,752 active listings in 2014, a 27% DECREASE. So when you combine more homes selling with fewer homes on the market, that means we have LOW INVENTORY!! In addition, days on market decreased to 91 versus 96 in 2014. The telling stat too is that our average sold price is up from $257,555 in 2014 to $277,815 in 2015! A 7.8% Increase in home values! We’re back baby!!

    King County has a fitting title as the King of Washington when it comes to home value and inventory stats! King county ended the year with 26,693 sold homes up from 24,393 in 2014, an 8.7% increase. Active listings decreased from 2,758 to 1,764, a 36% decrease! The average home price in King Co. increased from $542,225 to $585,982, a 7.5% increase. So while technically Pierce county outpaced appreciation in King County, King County gained more equity.

    Thurston County sold 4,115 homes compared to 3,501 in 2014, a 15% increase. Active listings decreased form 980 to 790, a 19% decrease. Home prices increased from $255,414 to $260,020, a 2% increase. While Thurston county didn’t have a huge run up in prices like Pierce and King counties, bear in mind they didn’t have it during the housing boom either, and they never had the huge crash those counties had during the downturn. They’ve been pretty steady all throughout the past decade.

    Did I mention we have LOW INVENTORY!! If you’re thinking about selling, NOW IS THE TIME!! Call me for a no obligation market analysis!  253-222-2626

  • 7602 Agate Drive SW, Lakewood, WA 98498

    Wow! Rare find in Oakbrook! This stunning rambler in Oakbrook has been well cared for by the owner and it shows throughout! Tile roof, sprinkler system, manicured landscaping, the list goes on and on! Two separate living spaces are rare in a rambler, but we’ve got it here! Large rooms with large walk in closets! Bath off the master! Entertainment sized deck out back! Plenty of parking! Large Walk In Pantry! Close to Schools, shopping and parks! Don’t miss out on this one, it’s spectacular!

  • US Home Values Gained 1.1 TRILLION in 2015

    US Home Values Gained 1.1 TRILLION in 2015

    Well if ever there was a doubt that recovery is underway, this article from RIS Media drops the mic on it! In 2015, home values across the US gained 1.1 Trillion dollars. (If someone wants to cut me a check for 1% of that, I’m pretty happy . . .anyone?) The article goes on to mention that we’re still 782 Billion off the high-water mark set in October of 2006, but not to shabby to be less than a Trillion away! If 2016 mirrors 2015, then we’ll be back to even by about September.

    Also of note, Americans shelled out 20 BILLION dollars in Rent in 2015. Who’s mortgage are you helping pay off? Yours or someone else’s? If it’s someone else’s, we should really chat about that before interest rates begin to climb . . .

    Here’s the full article!

    http://rismedia.com/2016-01-01/u-s-home-values-gained-1-1-trillion-in-2015/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews

    Let me know what you think in the comments down below . . .

    Happy New Year everyone!