Mercer Island Waterfront Homes Continue Strong 2-Year Trend: Average Waterfront Real Estate Sales Up 200%

Another positive indicator for Mercer Island and Seattle area Real Estate market.  Sales of waterfront homes on Mercer Island were some of the first to come back after the doldrums of 2008 and 2009. Following an anemic year of just 11 waterfront home sales in 2009, the sales totals have nearly tripled in the past two years.

While 2011′s sales of 30 Mercer island waterfront homes was a 6.25% drop compared to the 32 sales in 2010, to say this was a disappointment would be incorrect. 2010 was a banner year for Mercer Island, considering the current economic and real estate landscape. Waterfront sales here were at standout levels compared to the greater market. The fact that waterfront home sales in 2011 continued to keep pace with the blockbuster 2010 sales is another testament to the staying power of waterfront homes values in Mercer Island.
Of the 30 waterfront homes sold in Mercer Island last year, 25 were priced over $1 million and 18 were multi-million dollar homes. The NWMLS labels homes in the center of Mercer Island on man-made lakes as “waterfront”, and these homes are the lowest-priced sales in the $800k-$900k range. Most homes that are actually on Lake Washington waterfront are priced significantly over $ 1 million.

Preparing to put your Home on the Market

Spring is coming and the Real Estate Market is improving, it’s a great time to put your house on the market. The "to-do" list for selling a home can seem endless and it’s easy to overlook small things that can have a big impact on a potential buyer’s impression of a home.

These tips are geared towards getting your home sold faster at the highest possible price. Below, I’ve listed my ten important tips to think about when preparing to sell your home.

1. Clean and De-Clutter: No one wants to see a cluttered house. Even if you’ve only lived in your current home for a short while, it is amazing the amount of "stuff" you can accumulate. Clear away all knickknacks, unwanted books off the shelves, and get all of the kids’ toys out of sight. You want potential buyers to be able to envision their stuff in the home, so the less of yours they see, the better. Use the "One Year" Rule: if you haven’t used it in over a year, you probably don’t need it.

2. Don’t forget the Yard: Curb appeal is very important. It’s understandable that getting the inside of the house ready for showing can take up a lot of time. Your house should be welcoming, clean and attractive from the outside as well. Store yard art and make sure the lawn is mowed, the hedges are trimmed, and add a little color with flowers or shrubs.

3. A Welcoming Entry: To make guests and potential buyers feel welcome, make sure the front door area is clean and painted (if it is wood) and that all bulbs in light fixtures are working. Avoid wreaths, banners and signs that might not appeal to everyone’s taste, and instead try neutral terra cotta pots with flowers or greenery for a classic, inviting touch.

4. Arranging the Rooms: One of the things people note when they are looking at a room is the amount of space in each room. Arranging furniture so that rooms appear open with a natural flow is a great step to achieving a spacious look. According to an article about home staging on AOL Real Estate, you should use the ‘Rule of Three.’ For each room, you only need three pieces of furniture and three decorative items for staging.
http://realestate.aol.com/blog/2010/09/09/home-staging-on-a-dime/
5. Modernize: The kitchen is one of the most important room in the home. What kind of appliances do you have? Is your stove an older electric model? Are the fixtures brass? According to Realtor Magazine, modernizing dated items makes a space more appealing to buyers. Even though it might feel like a waste to sink money into new appliances or minor remodels, modernizing makes your space more competitive with other homes on the market.
http://realtormag.realtor.org/home-and-design/feature/article/2012/01/put-your-best-features-forward-simple-staging-solutions

6. De-Personalize: Maybe you’ve lived there for 15 years or raised your family under that roof—all homes have some sort of sentimental value. The sooner you can disassociate yourself with space, the easier it will be to let go. When potential buyers come in, they want to picture their family living there, not yours. Take down photos, diplomas and other items that suggest you still have emotional claim to the space.

7. Freshen the Paint: Living in a space leaves its mark. If you notice that walls are scuffed, scratched or marked up, be sure to freshen up the paint. Not only will it hide potential wear and tear such as nail holes, it will give the room a brighter appearance. If there are any walls or rooms that have been painted a bold color such as red, or bright blue, think about re-painting them neutral, as not everyone’s aesthetic likes are the same.

8. Clear the Kitchen Counters: According to the afore mentioned article in Realtor Magazine, homeowners should have no more than three appliances on their kitchen countertops. This avoids a cluttered look, and highlights the amount of workspace available to potential buyers—especially those who love to cook. If there is a counter or island, emphasize it with a plant.

9. Re-think Carpet: Hardwood floors are a sought after classic. If you still have carpet in some of your rooms, think about replacing it with hardwoods. Sometimes there is already hardwood flooring underneath carpet, and all you have to do is rip it up! If not, think about investing in hardwoods in at least one important, central space like the living room or master bedroom.

10. Don’t Hide Unique Details: If your home has an interesting feature, say distinctive architecture, unusual built-in storage or vintage fireplace, don’t try to cover up these features. Instead, present them as points of character unique to the home that will set it apart.
Obviously these are just a few of the many tips to consider when getting ready to sell your home. As a Realtor, I’ve worked closely with many clients both buying and selling homes, and seen firsthand what gets noticed, what doesn’t, and what really draws people in.

Mercer Island: Always a Strong Market for its Homes

Mercer Island residents know—our city is a very wonderful, unique place to live. As a seasoned real estate agent who has lived and worked on the island for almost 20 years and watched the real estate market fluctuate, I can safely say that this community is, and always has been, a friendly, stable and welcoming place to live. With a top-rated school district, proximity to Seattle and surrounded by Lake Washington, Mercer Island offers the perfect locale for a wide range of buyers—from the young commuter to the expanding family.
Measuring in at six square miles, the island is currently home to about 22,000 residents, many of whom are families and professionals. Even though it is located between Seattle and the Eastside, Mercer Island retains a "small-town" feeling, and residents are very involved in community life, including elections, fundraisers and annual festivals. And while the views from the waterfront enclaves on the island are truly breathtaking, the interior contains more than 475 acres of parks and open space, fostering trails for bike-riders, beaches for families and parks for canine companions. There are more than 50 miles of marked walking trails. Luther Burbank a standout park with 77acres along a ¾ mile stretch of waterfront at the northeast end of the island. Aside from water sports and public fishing, there are tennis courts, picnic areas with barbeques and children’s play structure.

Many "Islanders", commute to work either in Seattle or the Eastside. On the north end of the island, an expanded park-and-ride provides commuters with an option for travelling to and from work. New development on the north end of the island, has created a vibrant business district, is also known as the Town Center. New projects surrounding the Town Center will add more retail and office space to the area, as well as new apartments, condominiums and senior living units. This neighborhood is great for young couples looking to start a life on the island. With restaurants, bars and shops, it’s a great place for those who like to socialize.
Families seeking the best education for their children will find it on Mercer Island. Last month I wrote an article for this website about the relationship between home value and highly ranked school districts. http://goo.gl/244qP The Mercer Island School District is highly ranked within the state, as well as nationally standardized test scores. This not only ensures Islander students a strong educational foundation, but also proves a worthy investment when buying a home in the area.

Aside from the varied architecture, fantastic views and potential for waterfront property, owning a home on Mercer Island offers the chance to live in a spirited community full of intelligent, creative individuals who care about their community. Mercer Island is already a special place to live. As it grows and develops in years to come, a property in this city will not only provide a family home, it can also be an investment in the future.

12 tips to buy and sell real estate in 2012

I believe 2012 will be growth year for home sales.  The Improving economy, low interest and tremendous values will motivate buyers and sellers to act.  Here are 12 valuable tips

12 tips to buy & sell

Highly Ranked Schools continue to have a Positive Effect on Home Values

Given the strong correlation between high-performing schools and surrounding neighborhood home values, buyers and sellers should be aware of the ways in which well-ranked districts can affect values, especially in highly ranked areas.

So, what does this mean?

According to an article by Matthew Strozier in The Wall Street Journal last month, “schools have always been a driver for home buyers.” If purchasing a home in one of the higher ranked areas, buyers with school-age children can rest assured that their kids will be receiving a top-notch education. Buyers are making an investment in the future value of their home. It was also reported there were fewer foreclosures in high-ranking school districts, and Seattle was one of the cities included in the study, which showed that as the ranking of the school districts went up, the percentage of foreclosures decreased.

People will always seek the best education available for their children, and there is always competition to get into a great school district. For homeowners, this means the value of their property will hold as the market fluctuates. As Strozier writes, “Higher-rated school districts also maintained higher home-sale prices, and higher home prices per square foot.” For the residents of areas with high ranked public schools, this means that sellers can ask for a higher price than an equivalent home in a lower-ranked district.

Buying a home is a serious investment. Before taking the leap, educate yourself about the school system and the districts in your areas of interest. Don’t be afraid to ask questions. Don't allow national or regional statistics to make you believe otherwise. Even now there are well-qualified buyers wanting to buy homes in areas with good schools. Even if children aren’t in your future plans, owning a home in an area with high ranking schools, will greater ensure the value of your home especially in these uncertain economic times.

Ken Urman
Real Estate Broker, CDPE
(206) 230-0833

The Hyper-Local Housing Market: Mercer Island Isn't King County

At the beginning of this month The Seattle Times published a story about a 15% year-over-year drop in King County home prices. Although there has been an overall countrywide dip in home values, it doesn’t mean that everyone in King County will experience a full 15% decrease. Citing the Northwest Multiple Listing Service, the article reported that the median price of homes sold last month was $320,000, dropping 15% from October 2010. There are multiple factors that should be taken into account when looking at these statistics, especially the positives for our local area, as well as first-time buyers.
As the article mentions, interest rates are at a historic low, in some cases coming in beneath 4% for a 30-year term loan. Even if they show signs of dipping further, not all buyers can or will wait until rates hit their lowest point. Despite the shaky economy, people carry on with their lives, families expand, and those who have been gainfully employed might wish to purchase a larger (or first) home. As unemployment drops in Washington State the number of buyers on the market is likely to increase. For first-time buyers, low interest rates coupled with a flourishing market of homes for sale below $200,000 make the option of purchasing a home more viable than in previous years. As these first-time buyers enter the market they create a “push-up” effect, and more established buyers often look for larger homes or properties located in more affluent areas such as Bellevue or Mercer Island.
Interestingly, sales volumes in the state were up for the fifth straight month. The key to this statistic is that while the homes that are selling are smaller homes, more of them are being sold each month. The reason for this trend is unclear; perhaps it is first-time buyers, or maybe people are shying away from the erstwhile “McMansion” fads. Either way, the positive is clear: more people are buying homes. 
One of the most important facts that the article takes into account is that statistics from a single month do not constitute a trend. The real estate market constantly fluctuates. According to local online real estate brokerage firm Redfin, customers writing offers sharply increased in mid-October, right after interest rates dropped below 4%. These placed offers should bring an uptick to November closings. It should also be noted that King County encompasses a very large region including north and south Seattle, areas that include some of the lowest-priced properties on the market. In higher priced areas in the Seattle area and the Eastside, the decline in home sales prices was far less than 15%, in the single digits, meaning that homes in these areas held their values; a solid fact to consider when making an real estate investment.
We may not be able to ignore the numbers when it comes to home prices and interest rates, but there is more than one way of looking at them. National trends don’t dictate regional numbers, and for first-time buyers low interest rates and home prices are a boon.

Donald Trump: Why Now Is The Best Time Ever to Buy a House | Daily Ticker - Yahoo! Finance

Donald is keen on buying bank owned properties. One time I fully agree with Donald!

Donald Trump: Why Now Is The Best Time Ever to Buy a House Daily Ticker - Yahoo! Finance

Underwater Borrowers Hold Back Sales

I see this everyday.  A healthy economy and active Real Estate market depends on move-up action.

Daily Real Estate News | Wednesday, September 14, 2011

Declines in home values have pushed a high number of home owners to be “underwater,” in which borrowers owe more on their properties than they are current worth, and it’s hampering home sales, according to new data by CoreLogic. 
About 10.9 million, or 22.5 percent, of all residential properties with a mortgage were in negative equity at the end of the second quarter, down slightly from 22.7 percent in the first quarter, CoreLogic reports. What’s more, about 2.4 million borrowers had less than 5 percent equity, which CoreLogic refers to as “near-negative equity,” in the second quarter. 
Since the peak in home sales in 2005, nondistressed sales in ZIP codes with low negative equity have dropped 61 percent, compared to an 83 percent sales decline in high negative equity ZIP codes. 
“The typical seasonal changes in sales volume in high negative equity ZIP codes is very muted, which indicates that nondistressed sales are being heavily impacted by the high levels of negative equity in their neighborhood, even if sellers have equity,” according to CoreLogic’s report. 
“High negative equity is holding back refinancing and sales activity and is a major impediment to the housing market recovery,” says Mark Fleming, chief economist with CoreLogic. “The hardest hit markets have improved over the last year, primarily as a result of foreclosures. But nationally, the level of mortgage debt remains high relative to home prices.” 

Why buy a bank owned property.....

A bank owned property is held and sold by the bank or institution with no sentimental attachment to the property.  Banks do not have an emotional stake, so they’re unlikely to enter into complicated negotiations.  Just the facts with no emotional attachment.

Banks and Investors favor Short Sales over Foreclosure

Reasons why:

• Short sales help neighborhoods
• Bank owned properties (REO's) sell for 10 to 15% less than Short Sales
• It helps borrowers save face and not face the embarrassment of a foreclosure
• The borrower can go back and buy another home a lot sooner after a short sale
• Short sales save the time to put an REO on the market
• Short sales help customers, buyers, agents, investors who own the notes and the neighborhoods