Who is Buying Houses Today?

By Ken Urman, Realtor

The National Association of Realtors conducted a study of recent homebuyers. Here’s who is buying houses (by generation):

·         Gen Y                                                                    31%

·         Gen X                                                                    30%

·         Younger Baby Boomers                                    16%

·         Older Baby Boomers                                         14%

·         The Silent Generation                                          9%

 

Gen Y

·         aged 33 and younger, born between 1980 and 1995

·         76% are first-time home buyers

·         97% financed their home purchase

·         More than 50% used a mobile device in their search

·         About 25% found the home they purchased with a mobile device

·         Find realtors through friends, neighbors, relatives

·         74% said the major value of working with a realtor was understanding the buying process

·         They buy because they want to own a home

·         19% choose urban areas

·         Plan to stay in the home 10 years

·         37% say commuting cost is a major consideration in choosing location

·         About 20% had to delay purchasing a home because of student loan debt

Gen X

·         aged 34 to 48, born between 1965 and 1979

·         More than 50% used a mobile device in their search

·         About 25% found the home they purchased with a mobile device

·         found their real estate agent or broker through the recommendation of a friend, family member or neighbor

·         more likely to use the same real estate agent for their purchase as for the sale of their previous home

·         buying and/or selling a home out of the desire to own a home, because they want or need a larger home, or because they are relocating for a job

·         primary factors influencing their neighborhood choice are the quality of the neighborhood, convenience of the neighborhood to their job(s), and the quality and convenience of schools

·         plan to live in the homes they purchase for 15 years

·         highest income earners ($98,200)

·         largest proportion of married couples buying homes (72 percent)

·         largest group of buyers with children under the age of 18 in the home (67 percent)

·         19% said they were compelled to delay the sale of their previous home because it was worth less than their mortgage

·         15% had difficulty saving for a down-payment, with 46 percent pointing to credit card debt as the reason for the difficulty, and 35 percent pointing to student loan debt as the difficulty.

 

Younger Boomers

·         Aged 49-58, born between 1955 and 1964

·         33% are single

·         22% bought a multi-generational home

o   38% had children over 18 moving back home

o   18% cost savings

o   15% caring for aging parents

·         26% own more than one home (vacation, investment)

·         Plan to live in the home for 20 years

·         21% of recent home sellers

·         Reasons for selling: job relocation, home too large, neighborhood less desirable

·         10% delayed home sale because home was worth less than their mortgage

 

 

Older Boomers

·         Aged 59-67, born between 1946 and 1954

·         21% buy to avoid renovations or repairs of major house systems

·         Choose neighborhoods for convenience to friends and family, affordability, and convenience to shopping

·         27% own more than one home

·         Plan to live in home more than 20 years

·         22% of recent home sales

·         Top reasons to sell: move closer to friends and family, house too big, retirement

·         Most likely to move more than 36 miles; 22% moving to a new region

·         Typically downsizing square footage and cost

 

Silent Generation

·         Aged 68-88, born between 1925 and 1945

·         98% are repeat buyers

·         18% purchased a multi-generational home

o   27% care for aging parents

o   23% children over age 18 moving back in

o   21% cost savings

·         Choose neighborhood for convenience to friends and family, design of the home, proximity to shopping, design of neighborhood, affordability, proximity to health care facilities

·         Smallest percentage finance the purchase

·         Most moving 38 miles away

·         Top reasons to sell: move closer to friends and family, house too big, retirement

·         Typically downsizing square footage and cost

 

If you are considering buying a home, whether a first home, a larger house or a smaller house, I would be pleased to help you find the perfect house to meet your needs. If you are considering selling your home, I would be honored to help you with the sale to the right buyer. Whether buying or selling, I would like to discuss your goals and help you achieve them. Call me today at (206) 230-0833.

Get to Know the Mercer Island Estates Community

By Ken Urman, Realtor/Broker

 

The Mercer Island Estates community is located on the southern end of Mercer Island, near the Country Club. Development of the neighborhood as a “planned community” began in the 1960s. This beginning is evident in the large number of split level homes (very popular in the 1950s and 1960s) and level roads.

 

These level roads make the neighborhood a very popular place for riding bicycles, and many of the children in the neighborhood ride their bikes to school. Two well-known features within this neighborhood are Wildwood Park (one of the island’s two off-leash areas for dogs and their owners) and the Mercer Island Country Club, which offers swimming, tennis, fitness and other sports facilities to members.

 

Mercer Island Estates is very close to both Lakeridge Elementary School and Islander Middle School. It is also within comfortable walking distance of the Village Shopping Center (home of a very popular gathering place in the Starbucks). The South End Fire Station is also nearby, as is Pioneer Park. The park has been maintained in its natural forest condition and is divided into quadrants by roads. Residents enjoy the six-plus miles of walking trails and equestrian trails which are convenient to the Mercer Island Saddle Club located just outside the southeast quadrant of the park.

 

Mercer Island Estates is a very attractive neighborhood that offers a rare combination of qualities that include level topography, quiet streets, stores and schools within an easy walking distance, and a clear and definite neighborhood boundary. Seven homes in this neighborhood have sold in the last 360 days. There is currently one home for sale in Mercer Island Estates.  This 2,340 square foot single-level rambler has three bedrooms, 1.75 bathrooms, and is located in a quiet cul-de-sac.

 

If you would like to see this house or any other currently on the market, it would be my pleasure to help you find the perfect home for your family. If you are considering selling, I would be happy to sit down with you to discuss your goals and needs. Call me at (206) 230-0833.

An Important Consideration for All Homeowners: Tankless Water Heaters

By Ken Urman, Realtor

What is a Tankless Water Heater?

A traditional water heater consists of a large tank in which 80 gallons of water (or more) is heated and maintained at a set temperature, typically using gas or electricity. This water tank supplies your family’s needs for hot water for bathing, washing dishes, doing laundry, etc. Once the heated water has been drawn from the tank, you must wait until it refills and the entire tank of water is heated

(usually 20 to 60 minutes).

A tankless water heater (also called an instant or on-demand water heater) provides hot water only if and when hot water is needed in your home. When you turn on a faucet, shower or appliance, water is heated instantly as tap water passes through “capillary-like” pipes heated by either electric coils or a powerful gas burner. Water does not sit in a large tank where it is continuously heated to a set temperature and maintained until needed.

Tankless water heaters can be installed either as whole-house systems (often consisting of three or more units each serving a part of the house). Smaller tankless units can also be installed at the point of use (for example, the kitchen sink, a shower or bathroom, etc.).

 

Advantages of a Tankless Water Heater

Tankless water heaters offer several advantages:

1.       They provide an unlimited supply of hot water only when and where it is needed.

2.       They heat only the amount of water needed at a particular time.

3.       There is no need to continually reheat the water in a tank in order to maintain it at a set temperature.

4.       Because water is heated at the point where it is used, the water is hotter (it does not cool as it passes through a long network or pipes from the water heater to the faucet).

5.       Therefore, it is more energy-efficient and more efficient in consumption of water.

6.       Tankless water heaters are about 50 percent more efficient.

7.       Tankless water heaters save the average homeowner approximately $165 per year.

Disadvantages of a Tankless Water Heater

      1.       It cannot produce a large amount of hot water at once.

2.       Turning the hot water on and off repeatedly can result in a sudden blast of cold water.

3.       The amount of water a tankless unit produces depends on the temperature desired.

A traditional water heater provides 7.5 to 9.5 gallons of water per minute, which is typically enough hot water to supply three needs at one time. A tankless unit produces only 2.5 to 5 gallons, which will supply only two needs at one time. Further heating water to an increased temperature of 35 to 45 degrees will allow water to flow faster than heating the water by 77 degrees.

Cost of Tankless Water Heaters

The typical gas-fired tankless water heater will cost about $1,500 installed (about twice the cost of a traditional water heater or about $575 more than a high-efficiency tank model. However, installation will require replacing ½ inch pipe with ¾ inch pipe throughout your home at a cost of $25 to $40 per foot. This installation cost will be recovered in reduced operating cost. Electric tankless units cost far less, typically as little as $400 installed.

 

Typical Cost Savings with Tankless Water Heaters

 

·         According to the U.S. Dept. of Energy, a tankless water heater is more efficient and uses less energy than a conventional water heater, providing a $25 to $107 in annual savings.

·         If your hot water use is low (less than 41 gallons per day), a tankless water heater will be 24% to 34% more efficient.

·         If your hot water usage is high (about 86 gallons per day), a tankless water heater is 8% to 14% more energy efficient.

·         Installing an on-demand unit at each hot water faucet gives an energy savings of 27% to 50%.

Get to Know the Genesee Neighborhood in West Seattle

By Ken Urman, Realtor 

The Genesee neighborhood of West Seattle (not to be confused with Genesee Park in Rainier Valley) covers an area of 0.758 square miles and extends from SW Genesee Street to SW Charlestown Street, and west from 46^th to 56^th Avenues, SW.

West Seattle is the section of the city located west of the Duwamish River and extending to Puget Sound. The Junction area of West Seattle is a popular destination for area residents and visitors seeking dining and shopping venues. West Seattle is historically important, as well. The Alki area was the landing site of the first white settlers in the region. West Seattle also includes several very popular parks and residential neighborhoods.

Genesee is a small and quiet residential area near shopping and entertainment at the Junction. The average household size is 2.0 people. Family households account for 37.8 percent of households, and 35.4% of households are married couples with children. The 2011 median household income was $71,201 (compared to $61,037 for all of Seattle). Travel time to work is less than 30 minutes for the vast majority of residents. 

 

According to 2010 Census figures, the estimated average value of detached houses was $440,438; for townhouses and other attached homes, $307,363. Homes in the Genesee neighborhood have been built at a relatively stable pace since the time of its early development. About a third of the homes were built before 1950, another third were built between 1950 and 1989, and the remainder since 1990.

 

Ercolini Park is a popular destination within the Genesee neighborhood. Located at 48^th Avenue SW and SW Alaska Street, west of the Junction, it was completed in 2008. This play area for children features a large grassy area, as well as a wood chip covered play area with sandbox, swings for all ages, multiple slides, ladders, monkey bars, and other toys.

 Also located within the Genesee neighborhood is the Genesee Hill School. Construction is set to begin in the spring of 2014 on a new school, which is expected to open in the middle of the 2015-2016 academic year.

The neighborhood is adjacent to the Schmitz neighborhood. The two communities are represented by the Genesee-Schmitz Neighborhood Council (an Official Seattle Neighborhood Council), which describes itself as “a group of neighbors working together to actively improve the area they live in. It also represents the local community’s interest on district and Seattle issues.”

 

Currently there are 6 homes for sale in the Genesee Neighborhood ranging from $319,777 to $1,140,000.  In the last 180 days 21 properties have sold.  There is a new home being built at the top Genesee Hill overlooking Alki, Puget Sound, and to the Olympic Mountains   It’s in pre-sale status, please contact me for more information.

If you are interested in buying or selling a home in Genesee or any Seattle-Bellevue-Lake Washington neighborhood, please call me at 206-230-0833. I would be happy to sit down with you and discuss your options and help you meet your financial needs. Visit my website at www.kenurman.com.

Investors and Entrepreneurs

I just read this about investors and entrepreneurs.   It's very powerful and spoke to me.  Had to share it!  I'd love to hear your thoughts....please comment.

Greg Rand from the book Crash Boom!: 

“Entrepreneurs can thrive in any environment because they are defined by their belief that there are opportunities all around them. They trust that they have the ability to learn new things in order to adapt and succeed in a changing environment.”

Investors are no different. Investors can thrive in any environment if they are smart and understand what makes a good deal. Many experts believe that we currently face one of the greatest investment environments of our generation.

In my opinion, these concepts can definitely be applied to the current Real Estate market. 

Get to Know the Madrona Crest Community

By Ken Urman, Realtor-Broker

 

Madrona Crest is a mid-Mercer Island community that includes Clise Park (SE 40^th and Island Crest Way). Like most Mercer Island neighborhoods, Madrona Crest is a quiet community of single-family residences. In size, homes in this community range from 910 to 8440 square feet with two to seven bedrooms.

Several homes in Madrona Crest sold in recent months are:

·         3629 88^th Ave., SE – Built 1948, 2 BR, 1.75 BA, 1,020 sq. ft, on .263 ac. Listing price: $499,999; Selling price: $521,000.

 

 

 

·         8447 SE 36^th St. – Built 1967, 2 BR, 1.75 BA, 2,070 sq. ft, on .284 ac. Listing price: $679,950; Selling price: $688,000.

 

 

 

·         8425 SE 39^th St. – Built 2013, 5 BR, 3.75 BA, 3,952 sq. ft. This house is built on a plan called “The Florence,” and includes den, formal dining from and large daylight basement, gourmet

               kitchen, granite slabs in kitchen and   
               bathrooms. Builder: Jay Marc. Listing   
               price: $1,475,000; Selling price:
               $1,500,000.

·         8835 SE 39^th St. – Built 2013 by Jay Marc, 5 BR, 3.75 BA, 3,952 sq. ft. This house is also built on “The Florence” plan and includes similar amenities. Listing price: $1,575,000; Selling price:  $1,575,000. 

 

Clise park/green space offers a quiet and elegant respite from the hustle and bustle of the nearby downtown area. It features 1.75 acres of trails winding through natural growth of local trees, shrubs and plants. The name of the community suggests an abundance of the Madrona Tree in this area. However, there are very few remaining today. The park was named for Charles Clise, the builder and original owner of local landmark, the Shorewood apartments, built during the growth spurt shortly after World War II.

There is a great deal of transition occurring in Madrona Crest at this time. A number of older homes are being remodeled or torn down and replaced with new construction of luxury homes. JayMarc

Home builders are particularly active in this transition. 

There are currently no homes for sale in this neighborhood. However, if you are interested in this community, and you would like to be notified when a home in Madrona Crest becomes available, I will be happy to contact you. If you wish to sell your Madrona Crest home, it would be my pleasure to help you with the transaction and help you ensure you get top value.  Please call 206-230-0833. Remember, I’ll bring the coffee!

Get to Know the Library Neighborhood of Mercer Island

By Ken Urman, Realtor 

Situated between Island Crest Way on the West, 92^nd Ave SE on the East, SE 47^th on the South, and SE 42^nd on the North is a quiet neighborhood known as the Library Community. This well-located neighborhood is very typical of Mercer Island in most ways – it is convenient, quiet, good topography and has many positive community features, the most popular is, of course, the terrific Mercer Island Library and Rotary Park.
The Library community is just a short walk away from the high school, the Boys and Girls Club, several parks (including Ellis Pond), and several popular churches. Trails and level topography help connect the community and its features.  It is also served by a bus route.

The current Library structure was built in the early 1990s. It has become the site for many city and community meetings, art exhibitions, and musical performances. Beginning in early 2014 renovations will ensure that the library facility can accommodate an ever-growing collection of publications ranging from print and digital books and journals, print and digital magazines, public use computers and research tools and technologies, as well as special collections of interest to the community. Current plans call for improvement of interior acoustics and window replacement. Renovations will also refresh the interior of the existing building (no changes to the footprint of the building) as part of this 1.6 million dollar renovation. 

 
The second major attraction in the Library neighborhood is Rotary Park, which was created in 1970 as a project of the Mercer Island Rotary Club.  The park is located across from the Library and close to St. Monica's Church.  Over the years, it has evolved into a neighborhood park. Every spring, volunteers from the Rotary Club and the high school Interact Club clean up the park and make minor improvements. Activities in 2013 included: (1) planting nearly 50 trees, ground covers, etc., (2) barking all tree stands, (3) laying a gravel cover along the path, and (4) installing a new bench.

Two homes in the Library neighborhood have sold in the last 180 days. One, at 4248 86th Ave SE, sold for $788,000. This single level home with west exposure for sunset viewing was originally a five bedroom home. It is now a two bedroom with master suite and bonus areas. It features hardwood floors, stainless steel appliances, French doors, circular drive, fenced back yard and large patio (http://www.matrix.nwmls.com/Matrix/Public/Portal.aspx?ID=9860422010).

There are currently no homes in the Library community for sale. However, due to demand there is at least one under construction in the neighborhood.
To be notified when a home becomes available or to list your home, please call me at (206) 230-0833.