For The Period of August 1-31 2009

·Data prepared by Phil Sharp, provided by NWMLS

Thurston & Pierce County Market Values: Customized to Suit Your Needs http://www.lewis-mcchordhomevalues.com/

Thurston County Market Trends - Year-to-date August 2009

Residential sales volume for August 2009 is off 3% from July 2009

All Sales (vs. Year-to-date 2008)

 ~ Residential sales volume: off 28% to $585 million

 ~ Residential transactions: off 22% to 2,249

 ~ Mobile home sales on land: off 64% to $10 million

 ~ Plexes (2-5 units) sales: off 58% to $17 million

 ~ Land sales: decreased 57% to $32 million

 ~ Commercial volume: off 74% to $58.5 million

 ~ Average residence: $260,708, off 6%

Existing home transactions sold off 3% in August 2009 from July 2009

Existing Home Sales (vs. Year-to-date 2008)

 ~ Units sold: off 16%; volume: off 21% to $374 million

 ~ 1,427 units sold this year vs. 1,705

 ~ Average price off 6% to $261,843

 ~ Half homes (median) sold for less than $235,000, off 5%

 ~ Average $/SF for homes sold at $153.95 (all sales), off 8%

 ~ Best range: $250,001 - $300,000, with 32.6 per month

 ~ Second best range: $300,001 - $400,000 with 25.4 monthly

7.1 acreage parcels sold monthly, off 47% from last year; average price, $120,146, off 20%

Acreage Sales (vs. 2008)

 ~ 30.3 existing homes sold per month, off 12%; average price: $344,939, off 3%

 ~ Median price for existing homes: $310,000, off 4%

 ~ 3 new single family homes sold monthly, off 50%

 ~ Average price: $337,836, off 22%; median price for new homes: $327,475, off 6%

 ~ The $/SF existing homes: $180.48, off 6%; new: $143.34, off 17%

 ~ Average lot sizes, for existing homes: 4.1 acres, off 6%; new: 5 acres, up 48%

This August’s residential transactions were 6% fewer than last August

New single family homes units sold in August 2009 are up 9% from July 2009

New Single Family Homes (vs. Year-to-date 2008)

 ~ Average sale price: $285,534, off 11%

 ~ Median sale price: $267,487, off 6%

 ~ New homes represent 31% of volume and 29% of units recorded

 ~ 598 sold vs. 744 last year, off 20%; volume: off 28% to $171 million

 ~ Average $/SF: $136.16, off 8%

 ~ Best range: $250,001 - $300,000 with 22.4 monthly

 ~ Second best range: $300,001 - $400,000 with 17.3 recorded per month

Best range: $50,001 - $75,000 with absorption of 12.9 per month, up 10%

Subdivisions (vs. 2008)

 ~ The average lot sold for $62,975, off 27%

 ~ Half the lots sold for more than $55,000 (median), off 25%

 ~ 24.5 sold monthly vs. 29.3 last year, off 16%

 ~ Average lot represents 22.1% of average price of a new home; 20.6% of median to median

Attached unit sales off 13% in August 2009 from July 2009

Attached (vs. Year to date 2008) includes townhomes and condominiums

 ~ Average sale price: $190,076, off 8%

 ~ Median sale price: $185,950, off 4%

 ~ 45% (40 units) new

 ~ 88 sold vs. 184 last year, off 52%; volume: off 56% to $17 million

 ~ Average $/SF existing: $133.54, off 13%; new: $120.29, off 19%

 ~ Best new range: $190,001 - $200,000 with 1.8 per month

 ~ Best existing range: $170,001 - $180,000 with 1.6 monthly

Thurston & Pierce County Market Values: Customized to Suit Your Needs: http://www.lewis-mcchordhomevalues.com/

Dealing with rodents can be expensive not to mention gross!  While dealing with a rodent problem at one of my rental homes I learned that rats have been particularly bad this year in Lacey and Tumwater.  I thought it would be great to post some helpful tips on keeping your home pest free.

• Keep all pet food off the ground and in sealed containers.  Once you see that your pet has eaten pick up the dish.  Rodents love to hoard pet food.  A garbage can with a tight lid is a great way to store it.

• Make sure all trash receptacle areas remain closed.  If you keep your trash under the sink or in a closet make sure those doors close properly.

• Keep your garbage to a minimum.  If you have to take a few trips to the dump before your weekly garbage pickup it is well worth it.  Nothing is more attractive to a rodent than an over flowing trash can.

• Make sure your crawl space cover fits properly and is in good repair.

• Make sure all your crawl space vents have screens.  The cable guys love to knock these off while running your cable.

• Keep all food off the ground.  Just because you have room on the floor of your pantry that doesn’t mean you should store food there.  Use these areas for non food items.

• Keep your lawn and landscaping neat and clean.  Cut back vegetation that gives rodents shelter and food.

 Share this information with your neighbors.  If your neighbors have rodents they will be coming to your house next!

The Home Buying Process From Strat to Finish…. 

Should you use a Realtor?

I don’t know why a buyer would not use a realtor.  Buyer’s agents are real estate professionals who work exclusively for the buyer.  The buyer’s agent is there to protect your interests, and insure that you get the best home possible, at the best price.  The greatest thing about this relationship is that it costs you nothing.  Sellers pay real estate commissions, buyers do not.   A home buyer using an experienced realtor is receiving free market knowledge, expertise in executing a real estate transaction, and exposure to the widest possible number of homes on the market.  Sellers pay the cost because they want buyers to be qualified by an agent; and because they want the buyer to have experienced representation that will result in a sale.

When you retain a realtor to represent you, that realtor is legally obligated to serve your best interests.  Beyond legal obligations, realtors must work in the community, and rely on satisfied clients to promote their business.   Real Estate agents with dissatisfied customers don’t typically do well or last long in this business.

Finding the right Realtor; what to look for:

 Read Phil’s Olympian article    Your Realtor Should Have Baggage 

About Financing:

It is imperative that you get pre-qualified for a home loan.   Most sellers will not consider an offer if you can’t back up your ability to close the deal.

Qualifying for a home loan is not much different than obtaining financing for a new car.   I would be happy to refer you to the local mortgage lender that I use, or you may wish to use a lender that you have banked or borrowed with before.

If you are relocating to the area and want to use a local lender who will be around at closing time, pre-qualification can be accomplished via email and the web.  For help getting this part of the process started, please contact me.

About what mortgage lenders do:

Most mortgage lenders are actually brokers; some also have “in house” underwriting, meaning that they are making the loan themselves.  A lender who can fund a loan in house can be a lifesaver should the third party lender fail to come thru (a very rare occurrence).

Your lender will perform the following functions:

• Collect your financial information to include a copy of your credit report
• Verify your debts and income
• Approve you for a home loan based on your current financial situation
• Provide you with a Good Faith Estimate for your loan.  If you are looking at different types of loans ie: VA vs. Non-Va, you should get a GFE for both.  The GFE will also list all closing costs associated with your purchase.
• Once you have a home under contract, the lender will order an appraisal, process your loan, and provide loan documents to the title company for the closing.

Be prepared for a possible last minute request for a bank statement, or to pull your credit again before closing….the lending industry has gotten more cautious recently.  

Starting the home loan process:

Initially, your lender will ask you to provide some specific information, and for authorization to check your credit.  The lender will ascertain that you meet “conforming” loan standards, standards that apply to the entire industry.   A borrower who meets conforming standards will qualify for a loan from most mortgage underwriters, or lenders; your loan officer will then find the best deal for your specific needs.

There are numerous loan programs and guarantees.  The VA, FHA and HUD offer loan guarantees, these guarantees offer the lender protection and reduce their risk, which in turn makes them more inclined to lend to you. 

Your lender can better explain which, if any, program may benefit you.  Make sure that you get comparisons, as different loan packages have differing costs.

If you are applying for a VA guaranteed loan, you will need your VA certificate of eligibility.  If you are on active duty, you can get this from your PAC or PSB, if you are prior service the local VA, or the Retirement Services Officer (RSO) at a nearby installation can help.

What does pre-qualification mean:

The pre-qualification letter will mean that your offer will be seriously considered by the seller.

To the lender, pre-qualification means that you are qualified for a home loan based on your financial situation at the time that you applied, with the assumption that you have been truthful with the lender.  If you go out a  buy a new car, or run up a credit card, you may not qualify for as much, and if you were already close to the limit with debt, you may not qualify at all.

Finding the right home:

When searching for a home, it is critical that you establish some upfront criteria, but don’t go overboard.  Your criteria should include the obvious such as bedrooms and bathrooms, but don’t put a home out of the running because you would like a double oven or skylights.  You may miss your dream home, and double ovens are fairly cheap.

I have a checklist that I can provide you, or you can come up with your own.  Using a checklist or some other tool to keep track of the homes that you look at is a must.   Your checklist should have a way to track positives and negatives, kind of like a ledger sheet.  Having a system that will enable you to quickly compare many homes against each other is the best way to disqualify all but the best, and shorten the list to only the homes that you really like. 

Your agent is going to show you the best deals on the market, and you will probably see all of the really good deals in your price range within the first day or two of looking.  From there you have to decide weather to make an offer, or to wait for new listings to come on the market…..the supply of homes that fit your wants and abilities are limited.

If you are having difficulty finding the right home, your agent should explore with you weather or not there is a need to increase the price or change requirements (do you really need the 3^rd bath or spare bedroom?).  Some agents may be uncomfortable doing this, since the customer is always right; but reality may dictate an adjustment in expectations, and your realtor needs to be straight with you.

Making the right offer:

The philosophy, science, and sometimes guesswork of making an offer that will result in the best possible terms for you is dependent on the situation, the following is a list of things to consider when making an offer.

• Although there are many homes on the market, the ones that are appealing to you are also appealing to your competition.  The appeal may be in the home itself, the price, the location, or any number of other things.
• Even in a buyers market, the seller with a desirable property or good price is enjoying a sellers market.
• An offer that is too low will always bring a counter offer, often times for more than what the seller would have accepted.
• Remember that a used home is a used home.  Don’t expect the seller to make it new.
• If you are looking at a property, it is probably priced pretty well.  You would have disqualified it without going for a look if it wasn’t.

In writing your offer, do everything possible to understand the seller’s motivation.  Understanding how motivated they are, and why, can go a long way to making the right offer.  Some sellers have short time frames, while some have mortgages that they can’t afford.  Any insight you can get into these things can be like money in your pocket.

To read more…   Please click here