Author Archives: Jennifer

Making the right move –choose a real estate life transition specialist

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Many homeowners have come to us over the years indicating they are tired of cleaning all the rooms in their house, there are rooms not being utilized, their home just no longer fits their needs, and they are ready to begin a new chapter in their lives.

While some agents may group people who need to make some lifestyle changes as “downsizers”, we believe it is much more than that. It is about finding you the right property which fits seamlessly into your lifestyle, not just a smaller property.

We know there can be a lot of emotions that go along with moving. Excitement of this new period in your life…melancholy over moving out of a cherished home with lots of memories…perhaps even anxiety over making sure all the finances work out so you can do everything your heart is set on in this next chapter.

That is why we have a different approach when it comes to helping you define what the future holds. During our first meeting with a homeowner who is ready for a new lifestyle, we ask a lot of questions to make sure we don’t just understand the housing needs. We want to understand the big picture! Often we have helped people find properties that were not on their radar, but were a great match due to the recreational opportunities that were close by or the easy maintenance which would allow them to be snowbirds every year. Sometimes it takes outside-the-box thinking in order to find that “just right” home.

And when it comes to making choices about what needs to stay and what needs to go in the current home in preparation for the move, we have some good resources for helping with that as well.  We are from a family of builders and designers, and understand implicitly how spaces work, helping you plan as far in advance as you need. I have my SRES (Seniors Real Estate Specialist) designation which I received after additional training which helps me to counsel clients through the financial and lifestyle transitions involved in beginning a new chapter in their lives. I spent the time and money required to earn this designation because helping people transition and begin something new is exciting to me, and I wanted to have more resources at my disposal to help my clients.

And what’s more? Sometimes a buyer will find a home they love, but it just isn’t quite perfect. That is where we excel! Due to our builder connections, we can easily outline a plan that may make the “almost-right” property perfect!

So if your eaglets have fledged and you are thinking about how you want the next chapter in your life to be written, give us a call! You can reach Jessica at (509) 947-2230 or Jennifer at (509) 947-5670. We would love to hear what the future will bring for you!

 “Downsizing was a must for us. We needed to sell our home for something smaller. Jessica was very helpful in the pricing of our home. It sold in three months. She was also helpful in the purchase of our lovely townhome. She worked hard to get the sale and purchase coordinated. We recommend Referred Real Estate to others.”

-Jerry and Shirley Cole

Thinking of Moving? Tips for Choosing an Area that Meets Your Needs

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If moving is in your future – congratulations! It is exciting to be out looking at housing and envisioning how life in a new house is going to be. However, many buyers get so excited about the house they’ve fallen in love with that they sometimes overlook the actual neighborhood where they soon may be living and the logistics about living there and getting around.

So what do you need to be aware of when considering a home in a new area? Here are five things to consider:

1. The time of day when you first lay eyes on a prospective house can affect your impression of the neighborhood, so visit at various hours. Visit early in the morning, afternoon, and the evening to get an idea of how the light travels through the area throughout the day. The same can be said for neighborhood traffic congestion, which can change dramatically. Also be aware of noise and even smells! Airport traffic can vary throughout the day as can local industry production and activity on local farms. Many purchase and sale contracts allow for a period of time to review the neighborhood for factors such as this.

2. Neighborhood choice can be a pocketbook issue, and not just because of house prices and property taxes. While you’re paying attention to home prices and subsequent mortgage payments, remember to calculate the actual cost of a commute – both in time and money. You may even be pleasantly surprised if there are public transportation facilities located nearby!

3. Be sure and meet the neighbors. Doing your research includes getting to know the neighbors. Find out what they love about their neighborhood, and what concerns them. You might be surprised to learn about trails and other nearby recreation opportunities that you might miss if just searching on your own. If you’re looking at a condo or in an area with a homeowners association, ask neighbors who live there how effective the association is. Make sure you get recent publications from the association and visit their website.

4. Get stats from your agent before you make an offer, make sure your agent provides you with a price analysis to make sure you are getting good value for your money. We at Referred Real Estate look at a variety of factors such as neighborhood price appreciation, the relationship between assessed values and sold values, and price per square foot. These and other factors help us evaluate a property against market value.

5. And check out the area online. Look for websites include school information and crime statistics for the area you are looking in. These can be valuable pieces of information when doing your research. In addition, see if the neighborhood has a Facebook page or other online resource.

Remember – house hunting isn’t just about finding the perfect floor plan and the best back yard for relaxing and entertaining. It’s also about finding an area that suits you now, and boosts maximum resale value when it’s time for you to sell, in order to buy your next home.

If you’re ready to start the buying process, give Jennifer a call at (509) 947-5670 or Jessica at (509) 947-2230.

Tri-Cities Real Estate Market Update

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The fourth quarter numbers are out from the Washington State Center for Real Estate Research. Median resale prices are up 8.3% over the previous year as are the number of sold properties.

  Resales % change from
last quarter		 % change from
last year		 Median Resale Price % change from
last year
Benton County 3,100 +2.6% +.3% $189,300 +8.3%
Franklin County 640 +3.2% +1.6% $189,300 +8.3%

*Numbers are seasonally adjusted

The below lines represent the past year’s inventory and homes under contract. As the lines get closer together, this represents the housing inventory being consumed at a faster pace (in other words, demand for housing has increased). As the lines get further apart, this represents a surplus of inventory. As you can see, our inventory levels are lower than this summer, but are not quite as low as they were last January, but the number of homes under contract is a bit higher than the number of homes under contract last January.

Feb 2013 Tri City Market Update

Spring is right around the corner, and we are excited for things to come. If you have been thinking of buying or selling this spring, let’s set up some time to discuss your plans and create a strategy. Please call Jennifer at (509) 947-5670 or Jessica at (509) 947-2230.

Sources: http://wcrerdata.be.washington.edu/WSHM/2012Q4/Snapshot%204Q%202012%20v2.pdf and the Tri-City Association of REALTORS®.

HOMEOWNERS: The New Carbon Monoxide Detector Law pertains to you!

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The State of Washington recently revised RCW 19.27.530 which requires that all single family residences, condominiums, apartments, hotels and motels have working carbon monoxide detectors installed. Single family homes that were occupied before July 26, 2009 are exempt until the home is sold, at which point the seller must install a detector. This new revision requires strict regulation of carbon monoxide detectors in homes, condominiums, apartments, hotels and motels and allows for enforcement to make sure these regulations are being followed.

Carbon monoxide detectors are similar to smoke detectors in their operation. They are designed to save lives by sensing dangerous carbon monoxide levels and sounding an alarm to evacuate when these become too high and unsafe.

Under the past law, new residences must have carbon monoxide alarms installed upon completion. However, this new law applies to any home that is sold.

Why is there such a concern over carbon monoxide? Carbon monoxide is a very dangerous poisonous gas which cannot be seen or smelled. It is so dangerous it can kill a person or an animal in a very short period of time.  Carbon monoxide can quickly build up to fatal levels in either enclosed areas, semi-enclosed areas or non-ventilated areas.

It naturally occurs when fuel is burned. Cars, trucks, small gasoline power equipment like trimmers, chain saws, boat engines, lanterns, burning charcoal and wood, gas ranges, ovens, and furnaces produce carbon monoxide. It is also produced from tobacco smoke.

If you are thinking about selling your property this spring, you need to learn your options now and be prepared to have a detector installed.

And buyers listen up! If you are purchasing a bank-owned property, the property is not exempted from this law. Make sure that the home you are purchasing comes with a carbon monoxide detector.

We are advising our clients to make sure they have their carbon monoxide detector installed by a professional. This is essential for both safety and liability reasons.

If you have any questions about this new law as it might pertain to your personal situation please feel free to give us a call. You can reach Jennifer at (509) 947-5670 or Jessica at (509) 947-2230. We would happy to discuss your options with you.

SOURCE:
http://apps.leg.wa.gov/rcw/default.aspx?cite=19.27.530

Should I Buy a New Home?

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There are many things to consider when buying a home – should you buy something that has been lived in before or should you splurge and buy something new? New homes are usually more expensive than their resale counterparts, but is it worth it?

Aside from the possibility of being able to customize your new home with the finishes (counters, back-splash, flooring, and sometimes floor plan) and colors you like, buying a new home can actually save you money each month.

According to the National Association of Homebuilders, a home is considered “new construction” if it was built within the last four years.  The NAHB recently cited the 2009 American Housing Survey in evaluating what homeowners spent on maintenance expenses per month. The survey found that 26% of all homeowners spent $100 or more per month on home maintenance expenses. But of the homeowners who owned a home classified as “new construction,” only 11% of owners paid this amount. What is a more startling figure? 73% of new homeowners spent less than $25 per month on maintenance.

So what about utilities? According to the survey, all homeowners spent about $.78 per square foot per year on electricity. This means for a 2000 square foot house, $1560 ($130/month) was spent on electricity. However, compare this with “new” homeowners who spent only $.65 per square foot per year ($1,300 per year or $108.33 per month for the same 2,000 square foot house).

A big difference was seen in homes with natural gas. Homeowners on average spent $.53 per square foot per year (for a total of $1,060 per year or $88.33 per month for a 2,000 square foot house) while owners of new homes paid $.38 per square foot per year ($760 per year or $63.33 per month).

And new homes that are ENERGY STAR® certified strive to be 30% more energy efficient than typical new homes. Using our example “new” 2,000 square foot home which could cost $1,300 per year in electricity, a comparable ENERGY STAR® certified home may cost $910 in electricity per year.

There are currently over 550 listings in the Tri-Cities which were built between 2009-2013 (classified as “new construction”). If you are in the market for a new home, an existing lovingly “used” home, or if you want to start completely from scratch and create something all yours, you owe it to yourself to learn your options and determine the best fit for you – and your budget. We can help! Please call Jessica at (509) 947-2230 or Jennifer at (509) 947-5670. We can show you all the costs and benefits of buying a used home versus buying a new home.

Housing Affordability in the Tri-Cities

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According to the National Association of REALTORS®, 2012 was a record year in terms of housing affordability. The Housing Affordability Index is measured by the relationship between median home price, median family income and average mortgage interest rate. A higher index indicates the more purchasing power buyers have.

An index of 100 is the point at which a median-income household has exactly enough income to purchase a median-priced existing single-family home with a 20% down payment and 25% of gross income allotted for monthly mortgage principle and interest.

December’s Index numbers are not yet available, but at the end of November, it stood at 198.2 while it stood at 194 for the year overall – the most affordable on record since the Index was developed in 1970. This is an increase over 2011 when the index was 186 overall (which was the previous record).

Although the Federal Reserve has promised to keep interest rates low and wages are steady and moderately on the rise, interest rates will likely increase slightly in 2013, and with median home prices increasing, the National Association of REALTORS® has predicated the Housing Affordability Index will average 160 during 2013 – still the third-most-affordable year on record.

Here in the Tri-Cities, the median home price ending third quarter was $184,700, a 1.9% increase over the previous year. And although we have seen unemployment rates rise locally, the ratio between monthly income and mortgage payment remains better than most markets during the third quarter at 10.1% (nationally this ratio is at 13.8%).

This is still a great time to buy a house if you are a first-time homebuyer, or ready to upgrade to something bigger! With interest rates still low and prices have not increased significantly, buyers have more buying power than almost any other time in history. Couple this with bankers lightening their lending requirements in 2013 and it is a phenomenal time to buy. Give us a call to learn more about just how much home you may be able to afford. You may be surprised! Call us: Jennifer (509) 947-5670 or Jessica (509) 947-2230.

SOURCE:

http://www.realtor.org/topics/metropolitan-median-area-prices-and-affordability/data

Tri-Cities Housing Market Update

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The National Association of Home Builders/First American released their Improving Markets Index in January, and the Tri-Cities made the Index due to home price appreciation, an increase in employment, and an increase in building activity.

The Index measures improvements from “troughs” in building permits (measured from the U.S. Census Bureau), home prices (measured from Freddie Mac), and employment (measured by the Bureau of Labor Statistics). Each metro area has different trough dates depending on the lowest point in each of those individual areas. Cities that made the Index are those who have shown improvement from their trough over the last six months. Here is how the Kennewick metro area shaped up:

Let’s take a closer look at the new housing permit data from the U.S. Census Bureau. As you can see in the chart below, building permits for each month were higher than the previous month for each month in 2012 with the exception of April of 2012.

Total permits for 2011 were 1598 and increased by 28.84% in 2012 to 2059 (measured from January – November for both 2011 and 2012).

We have  a few more months until spring when the new home construction season starts and we at Devoted Builders and Referred Real Estate are looking forward to being a part of it!

If a move is in your future this spring, we would love to help! Please give us a call – Jessica (509) 947-2230 or Jennifer (509) 947-5670. We would love to get you into the home of your dreams!

SOURCES:

Multi-Generational Housing Making a Comeback

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Studies have been done on it. Books have been written about it. And now homes are being built or remodeled to accommodate it. What is it? A return to the multi-generational household!

While the last few decades have seen a decline in multiple generations living under the same roof, that trend tends to be reversing as more and more adult children are moving back home and homeowners are taking in their aging parents.

Sharon Graham Niederhaus, co-author of Together Again –  a book about multiple generations living under the same roof,  interviewed over 100 families who are living in this manner. She noted, “The balance and proximity and privacy is the key to success,” and indicated that “independence” and “separate facilities” such as a kitchen, bathroom, and separate entrance are essential to living together in harmony.

For hundreds of years it was not uncommon for several generations to live together although the trend towards smaller family units began to take hold after WWII. According to USA Today, the number of multi-generational households in our country is currently the highest since the 1950s.  The current trend is directly related to the economy, but many have noted the positive impact of having either their parents or adult children move back home.

PulteGroup Home Index (done by PulteGroup Inc, a national homebuilder) recently did a survey of homeowners with children 16-30. Fourteen percent indicated that they have one adult child who has moved back in with them and a whopping 31% expect that an adult child will return back home in the future. They also interviewed homeowners with living parents and found that 15% indicated a parent was already living with them and 32% expected that at some point they would be living with a parent.

In both cases, the number of multi-generational homes will double in the future if those numbers are correct. So how will current homeowners accommodate the additional people? Of the homeowners who were currently living with a parent or planning on it in the future, 72% planned on either renovating or purchasing a home with a floorplan that would work more effectively for the expanded family. 49% of the homeowners who were either living with adult children or planned to expected to renovate or move.

Builders across the country are beginning to see and provide floorplans which reflect this trend, and Devoted Builders is no exception. In fact, in 2011 the National Association of Homebuilders did a survey of builders and what they expected homebuyers would want in terms of new home amenities by 2015. They determined that 60% of custom new construction homes would have two master bedroom suites by 2015.

Here in the Tri-Cities, we have had several clients in the last few years who have had several generations living in the same household. We have seen adult children living with aging parents so they can help take care of them ensuring a higher quality of life and care. Also recently we have seen younger adults moving into Mom and Dad’s house to either go back to school or save money for a new house or simply due to loss of employment.

In our area most homes with multi-use spaces are in high demand, command higher prices and see a shorter time on market, especially if priced in a price range which is seeing a high turnover.

Our advice? If you are thinking you might need some extra space in the coming years, plan for it now. With interest rates and lower prices, it is a great time to either buy the home you will need in the future, begin planning for a remodel,  or even begin thinking of building. We are here to help and advise. Please call Jessica a call at (509) 947-2230 or Jennifer at (509) 947-5670 – we would love to hear about your plans!

SOURCES:

Benton and Franklin County Median Home Price Update

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Nationally, there is a lot of talk recently about the real estate “recovery”. Some areas are seeing double-digit median home price appreciation rates this year over last year. While that is great news for the country as a whole, in those areas that did not see drastic reductions in median home prices, such as ours, what is the status of median home prices?

The graph below charts median home prices in Benton and Franklin County per quarter since quarter 1 2002 provided by the Washington State University College of Business Washington Center for Real Estate Research.

Benton Franklin County Median Home Prices by quarter

As you can see, the Median Home Prices per quarter have risen in the last 10 years from $137,400 in quarter 1, 2002 to $181,400 in quarter 2, 2012. That represents a 32.02% increase in ten years, an 11.22% increase in five years, and a 4.01% increase in the past year.

Between 1995 and 2011, house prices in Benton and Franklin Counties have appreciated at an average of 4.695% per year. How does this compare with the state as a whole? Interestingly, this appreciation has outpaced Washington State appreciation. If you look at the graph below, you will see that the two lines appreciate at a fairly even rate until the mid ‘00s when the statewide appreciation increased dramatically and then came back down. Overall the statewide appreciation rate was 4.001% per year from 1995 through 2011.

Benton Franklin County Median Home Prices vs Washington State

What does this mean for buyers and sellers? Our area remains a strong real estate market, and in order to have an understanding of how what you are hearing in the national and statewide news media affects your real estate investment, you have to look at what is happening locally.

If you have any questions regarding appreciation in your particular area, please call us. You can reach Jennifer at (509) 947-5670 or Jessica at (509) 947-2230 to learn more about what the real estate market is doing in your neck of the woods.