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April 2010 Pierce County Median Home Price $215,000

Wednesday, May 5th, 2010

Sales volume appears to be moving upward according to numbers released for April 2010 home sales. 7,368 homes had mutually accepted offers in April 2010 in the four county Puget Sound region. The highest volume since August 2006

Was this due to the tax credit?

In my opinion yes the number have been inflated by the tax credit and it will be interesting to see what May’s number look like. However, interest rates are still very low. Employment numbers while not fantastic are beginning to show signs of stabilizing and in some areas improvement. The Puget Sound region should be able to begin the recovery process. Is this time to be excited no, not at all. It is time however to consider your individual housing requirements. If buying a home makes sense at this time you will have a number of other factors that appear to be in your favor as well.

The Tax Credit Ridden Off into the Sunset; Now What Will We Do?

Saturday, May 1st, 2010

It’s early in the morning on Saturday May 1st. 2010. When I got up this morning I was wondering what the world would look like outside. Why? The $8,000 tax credit has expired. The end of the world as we as Realtors® knew it……

I am glad the tax credit has expired and I hope that the government does not bring it back. Nobody needs the artificial enthusiasm that the tax credit brought to our real estate markets and the economy. I know that I was a proponent of the tax credit when it first came out but after a year of watching what it did to people and the housing market in Tacoma I am glad that it is gone and we can begin to rebuild our local and national housing markets.

In many ways the tax credit was like Wal-Mart offering 75% off everything the week before Christmas. People started acting rudely towards one another. I had one seller who responded to a buyers request for closing costs with something along these lines “why should we pay anything for the buyer? After all, they are getting paid $8.000 to buy our house. What are we getting?” People were making crazy offers on houses that they really did not even like just to get the $8,000. Why would anyone buy a house just to get $8,000? I mean that it is a very nice amount of money but nowhere near enough to warrant the purchase of a home. Everyone was acting entitled to things that they had no right to feel entitled to. Now much like January after Christmas where we all spent too much money on too much stuff that we did not need or that we now realize we even wanted but it was 75% off at Wal-Mart so it had to be good right? we will start the process of reevaluating our needs and our budgets.

Buyers will still want to buy houses. Sellers will still need to sell houses. The markets will still be the markets. Life will go on. I am optimistic that we will see an even faster recovery now that the people that are participating are actually participating because they want to for their own true reasons. Not because they were being bribed into making the decision.

I brought 2 homes on to the market yesterday April 30th. 2010. Crazy? perhaps hard to tell. Yet this morning when I looked in my MLS both homes had had over 2 dozen views in one day. My other listings that are active, no views. Is this a function of new inventory being shiny and new and exciting? Or is it the function of the market realizing my sellers want to sell and have priced their homes to sell without any artificial encouragement? I don’t know but I do know this. We will know soon enough.

The world did not end last night and today it’s a new world. When you’re ready to talk real estate I’m ready to be of service. I hope we talk soon.

Home Buyers Still do More Research on Buying a Car Than on Buying a Home

Friday, April 30th, 2010

I Received an article today from the Business Examiner that states that people buying homes still spend more time researching their car purchases than they do researching the terms of their home loans. According to the article (linked to here)  many people only spend FIVE hours researching the financing for the largest purchase they will ever make.

This information while not shocking is disturbing to me. Selling homes is what I do for a living and one of the biggest parts of the process of buying a home is the financing. There are so many options and variables in obtaining a home loan that for a family to not be concerned about obtaining the best loan for their situation seems to be amazingly short sighted.

Many of the search terms that people use to land on Classic Homes Northwest have to do with financing. I receive many inquiries as to “what the best loan type for me? ” I am not a lender and I encourage everyone who asks this type of question to ask the very question to a quality lender. The funny thing is how few people actually take the time to do this.

Why do people put such little effort into this part of buying a home? Please if you have an opinion on this share it with us here so we can have a conversation about this.

Open House Historic Preservation Weekend May 1st. and 2nd. 2010 Join us!

Tuesday, April 27th, 2010

There are a number of historic locations that are being held open to the general public this weekend. As part of the National Trust for Historic Preservation and American Express grant of one million dollars. The properties are all competing for a share of the preservation money. The property that receives the most votes will receive a grant based on being the public’s favorite. You can vote every day for your favorite by following this link.

This weekend five local locations will be held open.

Titlow Park Lodge
8425 6th. Ave. Tacoma, WA
May 1st 12pm to 3pm and May 2nd. 12pm to 3pm

The Spanish Steps
South 7th. ST & Commerce ST. Tacoma, WA
May 1st. 12pm to 2pm May 2nd. 12pm to 2pm

Johnson Farm- Anderson Island Historical Society
9306 Otso Point Road Anderson Island, WA
May 1st 11am to 3pm May 2nd. 12pm to 4pm

Orting Soldiers Home – Garfield Hall
1301 Orting-Kapowsin, Highway Orting, WA
May 2nd. 12pm to 3:30pm

Skansie Brothers Net Shed
3207 Harborview Drive, Gig Harbor, WA
May 1st. 10am to 4pm May 2nd. 12pm to 4pm

All five locations are great and you should get out and see as many of them as possible. We will be attending the open house on Saturday on Anderson Island with a group of friends. If you would like to join us please see this post on Explore Anderson Island.

We have blogged about the Spanish Steps and the Titlow Beach house in an earlier post you can find that post here.

Get out and vote and help save our areas historic (or should we say classic) properties!

Great areas in the Puget Sound to live. You have a lot of choices.

Wednesday, April 21st, 2010

Classic Homes Northwest is all about providing as much information on great homes and neighborhoods in the entire Puget Sound Region. We focus mostly on the city of Tacoma and the areas immediately surrounding it. Yet, when you expand the boundaries a bit you find even more areas that are full of opportunities for living a great life.

Starting in April we have been creating some smaller sites to help promote various communities in the greater Puget Sound region. Today we would like to share with you one of these sites.

Photo of the Johnson Farm on Anderson Island

Explore Anderson Island is a site we have created to showcase all of the wonderful features of Anderson Island. Located just a quick 20 minute ferry ride from Steilacoom Washington, Anderson Island is a hidden gem in the Puget Sound.  Since real estate is the major focus here on Classic Homes Northwest it has been fun to shift gears a bit and focus more on the community and the events that make Anderson Island such a special place.  We hope you will take a few moments and go visit Explore Anderson Island. The site is growing daily with new photos and articles on the island. If you’re more of a Facebook person you can “like” our Explore Anderson Island Community page.

Explore Anderson Island is just the first of our Explore series of sites. We will be rolling out more in the upcoming weeks. If you have a special community you would like us to explore please tell us. We are looking to help spread the word of what makes our area such a special part of the world.

Classic Home Owners, the EPA has an Earth Day Surprise for you!

Monday, April 19th, 2010

Lead Paint and the EPAThere are new regulations coming from the EPA that I was warning my clients in Chelan about when it occurred to me that the home owners at Classic Homes would also want this information.

If your home was built before 1978, new rules coming from the EPA are going to make repairing your home more expensive.

The laws require contractors to be certified in lead paint removal and follow stringent rules to do the job. So the initial estimates on added costs by the EPA barely scratch the surface of what it takes contractors to comply with the regulations

If you’re thinking you’ll just do the job yourself in the middle of the night and ignore the rules, if you get caught, the fines are as much as $37,500 a day!

The EPA estimates that its new rule will add $8 to $167 to the cost of the average interior remodeling job, but contractors say the expense to homeowners will be much greater. “The EPA has grossly underestimated the costs to comply on any job. I can see my labor costs go up by thousands of dollars,” said Vince Butler, who runs Butler Brothers Corp. in Clifton and is president of the Northern Virginia Building Industry Association.

Butler estimates that the extra time and effort required for protecting, cleaning and testing construction areas in pre-1978 homes will add 5 percent to 30 percent in fees on small renovation jobs.

“Expect to add another $500 to $1,000 for remodeling a kitchen, painting a couple rooms or replacing several windows,” Landis said. “That is the minimal additional cost to perform lead-safe work practices and associated documentation.”

The EPA rule applies to almost every type of renovation — from paint scraping to window replacement and carpet removal (which can disturb painted baseboards) — carried out by contractors in pre-1978 houses occupied by young children and pregnant women. -  Washington Post

The new rules take effect on Earth Day, April 22nd, so you better hurry!

Tacoma's Spanish Steps and Titlow Park Lodge need your votes

Friday, April 16th, 2010

The National Trust for Historic Preservation and American Express announced that the Seattle -Puget Sound area has 25 properties that are being considered for preservation grants. American Express is contributing one million dollars to the project. The location with the most popular votes is guaranteed a grant. Please get out there and vote for your favorite. You can vote once a day from each email address you have. Currently the 5th. Avenue Theater in Seattle is winning the popular vote. This is the time to show everyone that Tacoma believes we have some fantastic spaces too!

The Spanish Steps next to the Elks Lodge have fallen into disrepair and need to be restored. Now is your chance to vote for the Spanish Steps. For more information on the Spanish Steps you can follow this link.

The Titlow Park Lodge was designed by Frederick Heath and completed in 1911. This property would use a grant to help restore windows and doors to original condition. This is your chance to make a difference and vote for the Titlow Park Lodge. You can see more about the lodge by following this link.

There are other locations in Pierce County that you can vote for as well. Please take the time to visit the Preservation Nation Blog to learn more about this exciting project.

The Johnson Farm on Anderson Island is another of the properties that is eligible for a grant. If you would like more information on The Johnson Farm you can start by visiting Explore Anderson Island’s blog post on the farm.

Who is happy to see the first time home buyer tax credit ride off into the sunset? I am.

Thursday, April 15th, 2010

I will admit flip flopping on this topic. When the tax credit was announced last year I ran out and purchased a domain that I just knew would be a constant source of home buyer leads. Boy, was I ever wrong. What I found out was that the type of site I had created was like a picnic to ants. Lots and lots of traffic with nothing good ever happening. The people who visited the site were looking for something too good to be true, they were looking for something for free, and they were looking for someone to do the work for them. Even ants do the heavy lifting of taking the food from the picnic for themselves.

Buying a home should never be about getting something for free. Buying a home is about buying a container for your life. A place for quiet times with your loved ones, a place to share in the joys of life and the sorrows of life together. A home should not be considered a ATM machine or a get rich quick scheme. When the $8,000 tax credit was announced the goal was a noble one. To increase the interest in buying homes to help stabilize the economy. On the surface this makes sense but what it really does is to create a false sense of security and a sense of entitlement for some people.

During the past year I have sold quite a few homes to first time home buyers. Did they buy the home just because they were going to receive a tax credit? I sure don’t think so. During my conversations with my clients I learned something that I find to be quite interesting. They all had decided to buy a home because it was time for them to buy a home. Their situations had moved to the point where buying a home made sense to them with or without the tax credit. Of course they applied for the tax credit and received it if they were qualified to leave the money on the table is silly. But they DID NOT BUY A HOME BECAUSE OF THE TAX CREDIT!

The people that I talked with about buying a home that were looking for the tax credit all ended up not purchasing a home. This could be for a number of reasons yet I noticed one trend in particular. They lacked the true desire to buy a home.  Buying a home is a complicated and time consuming task. Without being committed it is easy to simply take your marbles and go home. The people that WANTED the tax credit were not willing to put in the time and work required. They were looking for something for nothing. There is no free lunch.

By removing the tax credit from consideration I feel that the housing market will begin to return to a point of equilibrium. The people who are looking for something for nothing will go back to buying things like televisions, or clothing at 50% off retail  no matter if it fits or not. The remainder of people who are at a place in their lives that buying a home makes sense will have less distractions when it comes to shopping for homes. I am looking forward to May 1st and the end of the first time home buyers tax credit.

Forget keeping up with the Joneses, are you keeping up with yourself?

Tuesday, April 13th, 2010

So that’s a pretty long title and a bit of an odd thought but it struck me the other day when I read a status update from one of my Facebook friends.  He wrote “I can be one of the coolkids posse now, I have an iPhone”.

Before we get into that and how that has anything to do with keeping up with the neighbors or ourselves, let’s discuss values.  An interesting word that seems to pop up more as I age.  Obviously there is a value in the answer to a mathematical equation, we all learned that in school.  There is value in saving money on a service that provides you with a need.  There are many values but the ones I want to write about are those that we hold dear so let’s get a definition – here are a couple I found with a quick search

Values – beliefs of a person or social group in which they have an emotional investment – from wordnetweb.princeton.edu/perl/webwn

Values – plural of value; a collection of guiding, usually positive principles; what one deems to be correct and desirable in life, especially regarding personal conduct – from en.wiktionary.org/wiki/values

Now some of you may believe I’m stretching towards the preachy side of things but if you bear with me I think I can bring this back home…

I was troubled that my friend wrote that he would somehow now be “cool” so I asked ”What’s so great about it (the iPhone)?” and he replied with “It just is, Jim”.  Well that troubled me even more so it got me to thinking while I was later at the off leash area with my pooch; what is it we’re doing, we used to hear how we shouldn’t try and keep up with the Joneses but now I think we are trying to keep up with ourselves but not in a good way.  Now it seems that we all need the newest, the latest and greatest; every kid needs an iPod, every game system, Mom & Dad need a new car - zero down and zero interest for 3 years, a new iPhone…we all need everything.  I drive a 10 year old car, wouldn’t have a mobile phone if I didn’t need one for work, never owned and iPod and didn’t buy my last TV until the one before it crapped out.  I don’t like to spend money on things that I don’t need (mostly, I do own a Kindle reader but that’s another story and I thought long and hard about that one).  I live by the idea that the first thought in the Reduce – Reuse – Recycle triangle is the most important so I have been working on letting go of material objects and concentrating on adding experiences in my life.  I own memories, not “stuff”.  This is one of my values.

So it made me wonder, why did this “thing”, yes a nifty “thing” but a “thing” nonetheless make my friend feel “cool” or even “cool-ER”?  Will it make me like him more, make him a better Father, a more loving husband or even for that matter something a bit more mundane, will it make a better burger or his lawn greener?  I began to think about want v need and as I sat on a log, watching the dogs play and their humans frolic and chat and laugh and toss tennis balls and I noticed something interesting…not a single person at the off leash dog park was wearing earbuds.  For the first time in a very long time I was surrounded by people that weren’t for that moment tied to “things” but to experience.  Experiences that cost nothing but are truly a need, the spring breeze off the water, the barking splashing dogs, the waves tumbling into shore – life.  The sounds, the feeling, the experience of just being. 

So here is where I try and bring this all the way around.  What are your values?  They obviously are not mine, nor anyone else’s.  They may be similar to another persons but they are not the same.  My values are to live simply; live very well but simply.  I want, no need to feed my family well but do it within my means.  I need to grow some of my own food, to feel the soil tumble through my fingers and know that what grows will nourish my family.  I need to walk alongside my son and my dog and I need to smile and feel the sun on my face.  Along with all that I need to provide shelter for my family, more than just shelter really but a home.  A home that is ours where my son can paint his room any color he wants, where if something breaks I know I have to step up and fix it.  Pride of ownership, quality of life, a place to watch my family really live.

It is my values that helped me realize I can live a good life and still own a home.  I’m able to live on far less money-wise than most everyone I know when it comes to our grocery bill and I eat well, I eat locally and sustainably and frugally, all while I live my values.  Many times in the past I’ve heard that one of the first places to cut out is the pantry.  Well I found I can do it and this is one part of how I was able to purchase my home.  I know anyone that makes the effort can do the same thing.

So I ask you, I’m keeping up with myself, are you keeping up with yours?

Are you at blame for the economy's situation?

Monday, April 12th, 2010

Good News!

The Top 5 Reasons Why We WILL NOT See A Double Dip In Home Values In 2010 has been released by Forbes.com

HATE HVCC? Well It Might Be Headed Towards FHA.

Can’t Miss Marketing Magic Tip of The Week- MailChimp – Going Bannanas Over Email Marketing!

Stay Tuned For A HEATED Extended Clip Of The MORTGAGE MARKET MELTDOWN!

Real Estate Agents are to blame! Mortgage guys are to BLAME! Who EXACTLY is to blame for the mortgage meltdown?

What our heated video discussion below to laugh at these guys killin’ the topic!

http://www.thinkbigworksmall.com/mypage/archive/4898/50273

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