Yes, if your home is already “For Sale” or whether you’re thinking of selling your home, don't be misled. The holidays are an excellent time to step up your marketing effort. Why you ask? Well there are many reasons beginning with –
1. Many sellers will mistakenly keep their homes off the market leaving fewer good properties, a smaller inventory, for buyers to choose among when selecting a home.
2. Where corporate transfers used to coincide with the end of the school year, they now occur at the end of the calendar year. What this means for sellers is the prospect of more qualified and motivated buyers looking for properties to purchase.
3. Homes look fresh during the holidays.
4. And, we’re currently seeing more high-end buyers looking at our listings in the past several weeks than we had seen all year.
So, if you’re on the fence about what to do during the holidays, be sure and get or keep that home on the market. But make sure there’s lots of room around that tree and you decorate to the hilt.
Wednesday, November 28, 2007
Monday, November 26, 2007
11/26/07 Residential Real Estate Stats
As of this morning, the medium list price of the unsold residential inventory, 7,210 single family homes, in Pierce County was $313,950. The unsold residential inventory includes active listings, listings which have offers pending inspections (STI), listings with contingent offers and pending sales. However, the medium list price of single family homes closed in the past 31 days is $275,000. Interestingly the medium sale price of single family homes closed in the same period is also $275,000.
These statistics are significant in that they indicate that the homes sales occurring reflect more the willingness of sellers to bring their pricing to the market than buyers making low-ball offers. In other words, sellers interesting in selling are reducing their asking price and making their property more appealing. Now this certainly doesn’t mean that buyers aren’t making low-ball offers; it simply means that the impact of such below average offers isn’t being reflected in the data.
These statistics are significant in that they indicate that the homes sales occurring reflect more the willingness of sellers to bring their pricing to the market than buyers making low-ball offers. In other words, sellers interesting in selling are reducing their asking price and making their property more appealing. Now this certainly doesn’t mean that buyers aren’t making low-ball offers; it simply means that the impact of such below average offers isn’t being reflected in the data.
Sunday, November 25, 2007
I'll be back soon!
With all of the activities of the Thanksgiving week, I've been spending time with my family. It's been very relaxing. Lots of good food. Lots of good conversation. And, lots of sharing. In the meantime, with a new week beginning, you can be assured that I will be back posting again very soon.
Thursday, November 15, 2007
The Value of Owning Real Estate
Why is home ownership a good value? Why is the ownership of real estate a good value? For me it’s easy. My grandparents on my mom’s side homesteaded in Montana, grew their farm holdings and eventually sold when they retired. But before they retired, they had also purchased two single family homes in a nearby town. One was a rental and the other was their in-town home. Although my parents only had an apartment when I was born, they soon purchased their own home. As a young kid, the local Realtor lived just across the street. The point here is, as a youngster, home and land ownership was all I knew or had ever been exposed to. Even when my grandparents were contemplating the sale of their farm, I recall arguing with my grandmother that she should lease their farmland. But she prevailed and all of their property was sold. Heck, I was hardly 12 years old. Yet, even then, I understood that there was a value in owning land or homes.
Later on, in fact I hadn’t yet graduated from college, my family took a mortgage on their home and used the money to purchase a six unit apartment building. When I graduated from college, instead of pursuing a career in journalism, I instead earned my real estate license and began selling homes, investments and land. Later that year, I purchased my first home. Two years later my wife and I purchased another home. A year later a triplex and some time later another home and several lots where we had duplexes built. Again, the point here is, I really didn’t need anyone to describe or explain the benefits or value of owning property. It was something I inherited. It was in my DNA.
As a young Realtor, I think I was the youngest in the state in 1972, in observing people and the way they lived, it seemed evident that, “The wealthy invested in things that appreciated in value and the poor seemed to overwhelmingly invest in things that depreciated in value.” That point is further reiterated and emphasized in The Appraisal of Real Estate published by the Appraisal Institute where it states, “Land is also a major source of wealth which, in economic terms, can be measured in money or exchange value.”
Another value is, whether buying or renting, most of us will always have a monthly housing expense. As a renter, you pay monthly rent to your landlord who, in turn, gains all of the benefits and liabilities of owning the property. Typical repairs and updates to the property rely entirely on the landlord. On the other hand, when buying real estate the property owner gains all of the benefits and liabilities. Among the many benefits that exist, if when buying a property there is a mortgage, the mortgage interest plus the real estate taxes can be itemized on ones tax return. Let’s say that, during the course of a given year, the cost of mortgage interest and real estate taxes is $10,000 and a 30% tax bracket is applicable, a tax savings of $3,000 would result. However, if ones tax bracket is only 15%, the savings is only $1,500. If tax brackets ever get to 50%, savings of $5,000 would apply. Please consult with your tax adviser to review how those deductions would impact your personal situation.
Easy access to a variety of home improvement centers to correct, modify or update general maintenance issues has certainly changed what some might have previously considered a liability to another distinctive benefit of owning property. In today’s world, it is common for homeowners to change the interior colors of their rooms multiple times over a short period of time. But there are also so many choices of cabinets, sinks, countertops, floors and most homeowners are eager to take advantage of such products to further personalize their homes. Some of these changes even fall into the category of major household renovation. Unfortunately, as a tenant, you’re stuck with using decorations, wall hangings, throw rugs and furniture as your only means to personalize your space.
This is an important topic because, with so many attempting to liken the value of your home to a volatile security, we need to remind ourselves and find comfort that there is continued value in our homes and investments alike. As we’ve discussed, there are many reasons why real estate ownership is and continued to offer great value. Perhaps you have some you’d also like to add to what I’ve described. I’d love to hear from you. Write me at kthiem@msn.com.
Future postings will continue to explore additional benefits and values of property ownership. In the meantime, I hope you have a wonderful day where you allow yourself the opportunity to achieve great personal success.
Later on, in fact I hadn’t yet graduated from college, my family took a mortgage on their home and used the money to purchase a six unit apartment building. When I graduated from college, instead of pursuing a career in journalism, I instead earned my real estate license and began selling homes, investments and land. Later that year, I purchased my first home. Two years later my wife and I purchased another home. A year later a triplex and some time later another home and several lots where we had duplexes built. Again, the point here is, I really didn’t need anyone to describe or explain the benefits or value of owning property. It was something I inherited. It was in my DNA.
As a young Realtor, I think I was the youngest in the state in 1972, in observing people and the way they lived, it seemed evident that, “The wealthy invested in things that appreciated in value and the poor seemed to overwhelmingly invest in things that depreciated in value.” That point is further reiterated and emphasized in The Appraisal of Real Estate published by the Appraisal Institute where it states, “Land is also a major source of wealth which, in economic terms, can be measured in money or exchange value.”
Another value is, whether buying or renting, most of us will always have a monthly housing expense. As a renter, you pay monthly rent to your landlord who, in turn, gains all of the benefits and liabilities of owning the property. Typical repairs and updates to the property rely entirely on the landlord. On the other hand, when buying real estate the property owner gains all of the benefits and liabilities. Among the many benefits that exist, if when buying a property there is a mortgage, the mortgage interest plus the real estate taxes can be itemized on ones tax return. Let’s say that, during the course of a given year, the cost of mortgage interest and real estate taxes is $10,000 and a 30% tax bracket is applicable, a tax savings of $3,000 would result. However, if ones tax bracket is only 15%, the savings is only $1,500. If tax brackets ever get to 50%, savings of $5,000 would apply. Please consult with your tax adviser to review how those deductions would impact your personal situation.
Easy access to a variety of home improvement centers to correct, modify or update general maintenance issues has certainly changed what some might have previously considered a liability to another distinctive benefit of owning property. In today’s world, it is common for homeowners to change the interior colors of their rooms multiple times over a short period of time. But there are also so many choices of cabinets, sinks, countertops, floors and most homeowners are eager to take advantage of such products to further personalize their homes. Some of these changes even fall into the category of major household renovation. Unfortunately, as a tenant, you’re stuck with using decorations, wall hangings, throw rugs and furniture as your only means to personalize your space.
This is an important topic because, with so many attempting to liken the value of your home to a volatile security, we need to remind ourselves and find comfort that there is continued value in our homes and investments alike. As we’ve discussed, there are many reasons why real estate ownership is and continued to offer great value. Perhaps you have some you’d also like to add to what I’ve described. I’d love to hear from you. Write me at kthiem@msn.com.
Future postings will continue to explore additional benefits and values of property ownership. In the meantime, I hope you have a wonderful day where you allow yourself the opportunity to achieve great personal success.
Tuesday, November 6, 2007
This & That By Ken Thiemann
Author’s note: All of the materials written in this blog are original and based on observations, research, industry knowledge or actual interviews conducted by the author. The intent here is not to undermine or criticize other writers or publications but to offer my viewpoint and outlook. Having been involved in real estate in one manner or another for over 36 years makes me uniquely qualified to offer my perspective. If other writers or publications wish to use any of my material, in part of in whole, please acknowledge accordingly.
Regardless of who says or writes what, the fact remains that sellers who need to sell and buyers who need to buy are matching up and closed sales are resulting. However, especially in those market segments, like new construction, where there is an enormous inventory of existing product, buyers can be selective in choosing the best value. But, where value is thought to be ‘in the eyes of the beholder’, the ultimate value of real estate, referred to as market value, is the result of an negotiated agreement between a willing selling and a willing buyer. Of course all parties have to have knowledge of the market and neither party can be motivated by duress. That’s basically the definition of market value.
As to the market itself, the medium price of single family residential homes, excluding condos, in Pierce County was up 1.84% over the same period ending October 31st in 2006. The medium price of condo units for the same period was down 8.24%. But, don’t overlook the bigger picture. On June 30, 2003, the medium price of a single family home in Pierce County was $181,035. That compares with the medium price of $279,950 recorded October 31, 2007, a staggering 54.64% increase.
When I started in real estate in 1972, we told buyers that they would have to hang on to their homes for at least three years in order to break even. It was simply a matter that the average appreciation in the 70’s was something less than 3%-to-5% per year. Of course back then we referred to it as inflation. The point here is, as the accelerated appreciation, maybe inflation, drops to more realistic average levels, the homeowner may have to plan to stay in a home for a longer period than what had become commonplace during the past 5-to-6 years. With this though, the question becomes ‘What’s the value of owning a home’ or, put another way, ‘Is there still value in owning a home?’
Of course, I believe the answer is absolutely yes, of course there’s value in owning a home, in owning real estate. Of course, my grandparents and parents owned real estate so, in my family it was a tradition to own your own home or rental property. For others though, how about we delve into that on another day. Until then, I hope you have a rich and rewarding day.
Regardless of who says or writes what, the fact remains that sellers who need to sell and buyers who need to buy are matching up and closed sales are resulting. However, especially in those market segments, like new construction, where there is an enormous inventory of existing product, buyers can be selective in choosing the best value. But, where value is thought to be ‘in the eyes of the beholder’, the ultimate value of real estate, referred to as market value, is the result of an negotiated agreement between a willing selling and a willing buyer. Of course all parties have to have knowledge of the market and neither party can be motivated by duress. That’s basically the definition of market value.
As to the market itself, the medium price of single family residential homes, excluding condos, in Pierce County was up 1.84% over the same period ending October 31st in 2006. The medium price of condo units for the same period was down 8.24%. But, don’t overlook the bigger picture. On June 30, 2003, the medium price of a single family home in Pierce County was $181,035. That compares with the medium price of $279,950 recorded October 31, 2007, a staggering 54.64% increase.
When I started in real estate in 1972, we told buyers that they would have to hang on to their homes for at least three years in order to break even. It was simply a matter that the average appreciation in the 70’s was something less than 3%-to-5% per year. Of course back then we referred to it as inflation. The point here is, as the accelerated appreciation, maybe inflation, drops to more realistic average levels, the homeowner may have to plan to stay in a home for a longer period than what had become commonplace during the past 5-to-6 years. With this though, the question becomes ‘What’s the value of owning a home’ or, put another way, ‘Is there still value in owning a home?’
Of course, I believe the answer is absolutely yes, of course there’s value in owning a home, in owning real estate. Of course, my grandparents and parents owned real estate so, in my family it was a tradition to own your own home or rental property. For others though, how about we delve into that on another day. Until then, I hope you have a rich and rewarding day.
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