Floor Resurfacing the Right Way

It’s an inescapable fact that the relatively simple task of resurfacing floors is often confused and considered interchangeable with the process of refinishing floors. Neither job is particularly pleasant but unlike refinishing, resurfacing is something that an ambitious amateur could undertake and likely succeed at. Here are some simple A-Z steps you can take to ensure that the job gets done right.

Prepping Your Room:

What’s the first thing a painter needs? A blank canvas! Any furniture or rugs should be moved out of the room you’re working on.  The smartest move would be to put it in another room but if you simply don’t have the space, rent a small moving truck or van for the day (U-Haul works fine). Once you’ve cleared the room, give it a solid sweeping and mopping. Be as thorough as possible to ensure a clean workspace.

The Buff ‘n’ Shine:

Now, it’s time to rent a buffer. Most day rentals for buffers hover around $30. Ask an employee to give you a general overview of how the machine works. It’s a relatively easy machine to work with but it’s also helpful to know how to maintain and clean it. Once you start buffering, be sure to go over the area at least two or three times. Depending on the size of the room, it will take you anywhere from 20 minutes to an hour to complete. Top it off with another good sweep.

Pick and Apply:

Waterborne finishes are safer and quicker than any other option, and they are more scratch resistant, making it a clear choice for pet owners. Waterborne finishers are also the most environmentally friendly finishes on the market (low on volatile organic compounds). Each waterborne coat takes only an hour to dry. You will have to apply more coats than with oil-based finishes but it’s worth it in the long run; three coats should be sufficient. When it’s fully dried, give the floor one last sweep and that’s that.

Hiring Out:     

Resurfacing is not a job that every person wants to roll up his or her sleeves for. Time restraints or the stress inherent in any home improvement project may make hiring a flooring specialist or contractor a more viable option for you. If so, consider these questions when interviewing prospective contractors.

1.     How long have they been in business? Over three years is best.

2.     Do they have a timetable? They should have a secure idea of the amount of time needed.

3.     How do they stand with past customers? Ask around and get an idea of their track record.

The job should not take longer than two days. Doing it yourself will run you anywhere from $100 to $200 while hiring a professional will run you anywhere from $300-500. When Click and Improve handles a job like this, we demand a pre-set schedule and price. So, you should expect the same if/when you hire a contractor or service provider.

Don’t be shy to call up a professional and ask about when it’s safe to move furniture back in, as it can vary depending on the finish. Once every thing is back in, you can admire and take pride in your floors, which should be ready for several more years of use and abuse.  

Avoiding That Sinking Feeling

If I were to sit here and type out every option available when it comes to bathroom faucets, this post might run the length of Moby Dick. Technologies advance, trends change, and handymen, plumbers and contractors install new, uniquely designed sinks every single day. The choices of faucets are innumerable but the bathroom sink is a central part of the bathroom and home improvement professionals of all sorts will tell you that the days of everyone installing the same simple sink unit with a vanity mirror and cabinets underneath are over. There are new ways to save room, ensure a more modern and stylish design, and make cleaning a breeze. Here are three or four options to consider talking over with your local NYC plumber.

·      On the Wall: Sinks attached directly to the wall are becoming popular for several reasons, not the least of which being that they cut down on the instances of plumber’s crack. There’s a minimalist bent to this that makes it easy to see leaks and to keep your bathroom clean. It gives off a spacious look as well and allows you to think of new, fun ways to design storage for your hygiene and medical supplies. Bad news: You need to think about new storage ideas…now.

·      Vessels: Vessel sinks, which essentially sit on your countertop like a large bowl with a faucet, convey a sense of containment. This means less clipped hairs from shaving and excess water from washing on your countertop. They also look incredibly nice and personalized. They are also very large and take up a lot of the countertop. Investing in some reasonably priced, wall-mounted holders for your toothbrushes, soaps, floss can solve this problem, and face washes.

·      Consoles and Pedestals: Like the vessel sink, the console conveys a sense of personalized attention. The sink is attached to the wall but has a set of legs going to the floor that are used for support. They are very classy looking and it’s only slightly harder to clean than the wall sink. There are also pedestal sinks that essentially do the same thing but with one thick stand that offers support and is attached to the wall as well. If you do chose this one, be sure to discuss it with a plumber or home improvement professional, as pedestals are a bit harder to install.  

Any of these options are easy enough to plan with a plumber but you might consider undertaking this project while remodeling other parts of your bathroom and get it all done in one fell swoop. I am a huge fan of console sinks: They look classic and give the room a stylish yet open feeling. In fact, I recommended a console sink to my cousin last month and am happy to report that she just recently got one installed. She will not stop raving about it. But, as always, different strokes for different folks.

Recent Home Sales in Seattle 98144

There have been 199 single family home sales in the 98144 zip code of Seattle so far this year. The median home sale is for a three-bedroom, two-bath 1650sf home that sold for $325,000 ($196.97/sf)in 53 days.

This compares to 198 single family home sales during the same time frame last year. Last year's median home sale was for a three-bedroom, two-bath 1850sf home that sold for $380,500 ($205.68) in 40 days.

The 98144 zip code includes great Seattle neighborhoods like Mount Baker, North Beacon Hill, parts of Leschi, Judkins and Central Area. The most expensive home that sold in 98144 this year was a $3,435,000 waterfront home in Leschi that sold for full price in 25 days.

Taking A (Proverbial) Bath

With a few notable (and largely private) exceptions, the bathroom is still largely considered a place where one goes to be alone. It’s a place of personal business, things we don’t really like to talk about. More and more, however, I have found myself talking to friends who are planning or have already completed remodeling jobs that distinguish the bathroom as a place of utmost comfort and even luxury. To be perfectly frank, these are not always cheap fix-ups. However, it won’t be long until they are as normal as getting a new tub or new fixtures put in.

Below, you’ll find some of the more interesting and provocative advents that have become popular as of late and piqued my interest particularly. With the amount of fresh and modern ideas coming in concerning how we use our bathrooms, it’s only a matter of time before the bathroom is as regularly remodeled as the kitchen.

·      Soaking Tubs:

It used to be that when a homeowner had some extra money to spend, a Jacuzzi was one of the first things on the wish list. Jacuzzis are still a solid, fun investment but they can be a bit obtrusive. So, think about getting a special soaking tub in your bathroom. They are deeper than normal tubs and look incredibly stylish, offering the perfect place to relax with a book and a glass of wine or to simply zone out for an hour. Most salesmen or contractors will be able to help you plan where you could possibly place the tub most conveniently.

·      Big Showers:

The act of taking a bath has gone down in popularity, largely due to green concerns about inflated water usage. Showers are now the key component of any bathroom, along with your toilet. A recent home improvement trend is to make the shower bigger, more stylish and more spacious. Making your shower larger gives off the feeling of a top-grade spa, allotting more room to enjoy the steam and even take a seat. Some contractors have even started to take out the doors, glass and tubs, centering the entire bathroom on a drain in the middle of the room. This feeds into a growing trend towards porcelain and stone tiles in bathrooms, though this isn’t recommended if you are thinking about selling your house in the near future.

·      Heat & Steam:

Steam baths, which essentially work like a sauna, are coming up in a big way and though they are a bit pricey (north of $1,500), it isn’t a bad idea if you treasure your alone time in the bathroom. This also adds to that spa feeling I mentioned before. Another big idea has been to put mesh under your tiles and connecting it to thermostat to ensure warm floors and a more comfortable experience for your bare feet.

·      Tear Down the Walls:

The aforementioned idea of breaking down the walls to create a shower as a main component of the bathroom may be a bit adventurous or daunting to some. In this case, if you want to get a bit more private, think about building a separate, enclosed area for your toilet, not completely unlike a stall but more soothing and personal. If you’re a tech person or just an entertainment hound, you might even think about putting a small flat screen on the back of the door, allowing for you to watch the latest episode of Glee or a recent Brad Pitt movie as you handle your business.

The landscape of the home has become more and more personalized as the years have gone on and the bathroom is no different from the kitchen or the bedroom in this regard. As in most things, it is a determination that depends largely on room, as my favorite of the lot – the soaking tub – is best in a more open bathroom, whereas making your shower bigger is something that nearly any homeowner could benefit from.

For me, the soaking tub is a home improvement project that offers both a sensible source of leisure that can add to the value of your home and help you rethink the design of your bathroom. That being said, any of the aforementioned additions can fill similar roles, depending on the individual, and each one helps redefine the bathroom as room deserving of thought and not just a place to, er, take care of business.

Making Offers!

I submitted seven offers on NWMLS properties today, on behalf of my company Home Land Seattle.

If you want to own real estate, you've got to be making offers!

Many of these offers may end up becoming wholesale deals to cash buyers, if the sellers choose cash terms. Those with the most favorable terms that work for me, I will keep.

If you are a cash buyer looking for some great cash deals in Seattle, let me know. If you have unsecured retirement funds that are earning less than 7% interest, talk to me. I am finding deals, especially for those with cash ready. And I can always use more private funds to buy them with!

I am making lots of offers. I expect more NOs than YESes, but that is part of the process.

Hang in there, do your homework, and make offers!

Recent Home Sales in Seattle 98122

There have been 113 sales of single family houses(including 19 townhomes) in the 98122 zip code of Seattle in the past six months. This includes the communities of Capitol Hill, Leschi, Madison Valley, Madrona, and the Central Area. These neighborhoods are located east of downtown to the shores of Lake Washington. They are noted for walkability, quiet residential neighborhoods, close-in proximity to downtown, parks, hiking trails, shops, groceries, views of Lake Washington and the Cascade Mountains,beautiful sunrises, public transit and easy access to freeways.

Excluding townhomes, the median house sale here in the past six months is a three-bedroom, two-bath 2105sf house that sold for $465,000 in 38 days. 41% of the sales were identified as being in Madrona; 17% in the Central Area; 15% in Capitol Hill; 15% in Leschi; 11% in Madison Valley; and 1% elsewhere in 98122. Nine percent of sales in this zipcode this year were for bank-owned properties, up from 5% last year.

The median Madrona house sold for $465,000 or $215.28/sf; while the median Central Area house sold for $330,200 or $181.43/sf.

Last year in 2010, the median Madrona house sold for $647,500 or $270.92; while the median Central Area house sold for $389,995 or $216.66/sf. This represents a 21% decrease in median home values in the Madrona area; and a 16% decrease in median home values in the Central Area to date, as compared to last year.

On average, the median home price in the 98122 zip code has decreased 9% from median house sales in 2010. However, the number of transactions this year is up 8% over last year. This means buyers are increasingly seeing good value for the price. Sales in this zip code represent 5% of all Seattle sales this year.

Median values mean that half the houses sold for more and half sold for less.

There are several ways to interpret this data, and I welcome your comments. It may be that the types of buyers have changed in the past year, with more investors and cash buyers moving into the lower end of the market this year. It may be that there are more distressed properties being bought and sold this year. It may be that prices have fallen far enough that these areas now represent a good bargain for the savvy investor or homebuyer. It may be that the bottom is yet in sight. What do you think?

Collecting the Evidence on Countertops

Cooking and trying out new, bold cuisines at home has seen a huge surge since cooking shows (main offender: Top Chef) have begun to dominate television programming. Thus, it is only natural that people would want to focus on home improvement projects in their kitchens, turning them into laboratories where they can experiment with recipes.

The first thing that comes to mind when undertaking a remodeling project in the kitchen is the countertops. Whereas cabinets are often the face of your kitchen, countertops are where all the work gets done; following the metaphor, countertops are the body of the kitchen whereas the refrigerator would be the brain. Okay, enough with wordplay…down to business.

·      Wood/Butcher Block: Maple and oak are the most popular materials in this situation and they look gorgeous. It is easy to maintain their inherent smoothness, as they can be easily sanded and resealed. These types of countertops are very easy to clean, but they can be damaged by water and can stain without proper care. In addition, they are prone to scratches and cut marks, the degree of which depends on where you order them.

·      Stainless Steel: Stainless steel allows for a very modern, industrial look that often conveys discipline and precision. Again, these are very easy to clean and are not sensitive to heat, unlike wood. They are, to be honest, a bit pricey and can be especially noisy, especially if you live with sensitive sleeper. Stainless steel countertops also can dent and are very easily scratched by knives.

·      Ceramic Tile: This is a great option, especially considering the relative inexpensive cost of a tile project. There’s also a very “Mom’s kitchen” feel to a tile countertop. There is a slight issue with unevenness and easy damaging, but these are relatively minor considering how easy these are to clean, not to mention the innumerable amount of choices you have in color and texture. Lastly, they handle heat very well.

·      Laminate: Another particularly inexpensive choice. Laminates, made of plastic-coated synthetics, come in a wide range of colors to suit your personal style, are incredibly easy to clean and maintain, and are also remarkably durable. That being said, if you do chip or scratch laminate, it is often going to be there for good and front edge choices can run you a pretty penny, if you are at all particular.

·       Granite: Prices are dropping quickly on this option and it is a viable choice when it comes to remodeling. They are essentially permanent, extremely hard to damage, need very little maintenance with new sealers, and are immensely attractive to homebuyers. Make sure you get a good contractor on this job, however, as a lousy installation is the only thing that can really botch granite countertops. Try not to cut on it, as your knives will dull. On the flipside, granite holds up to heat and there are literally thousands of color choices.

·      Soapstone/Concrete/Engineered Stone: Soapstone has a rich, classic look and is smooth to the touch. It is ostensibly stain resistant but it takes a bit of effort in the way of maintenance, needing regular applications of mineral oil. If you have the income, concrete is a good alternative, as it is heat and scratch resistant, offers decorative finishes, and boasts a unique look. Most cracking or problems with porousness can be easily fixed. Similarly, you could go with engineered stone, which is a bit more expensive, but is resistant to stain and acids. They also require very little care.

·      Marble/Solid Surface: The aesthetic value is extremely high with marble. These surfaces also handle heat very well and are basically waterproof. Then again, they can be pricey, are prone to stains, and need periodic resealing. For a good alternative, look into solid surface, which are stain resistant, seamless and offer an array of colors. The only big flaw is that solid surfaces are a bit sensitive to heat. As with granite, be sure to get a good contractor with good standing with this option, as installation is a key component.

If you’re going DIY home improvement with this, best of luck, but this is the sort of project that even if you were to take it on by yourself, you would want to consult with a professional contractor or service provider. Putting in countertops are one of those projects that, if not done right, isn’t worth doing. So, be smart about it and think about what you really want from your kitchen. My favorite kitchens tend to have wood countertops, not only because of all the positive uses, but also because of the homey, almost rustic look they exude. There’s warmth to wood that is impossible to replicate. When it comes to the kitchen, however, everyone has a different opinion of how it should look and what should be done in there.

High End Leschi View Property for Rent!

This beautiful property is available for immediate rental, for a minimum of five months or more. Four floors of completely new and wonderfully designed luxury. Open, light, and spacious with thoughtful layout and room to spare. Fine finishes and detail from the view decks to the fabulous kitchen that opens to a full view family room.

Original charm and details have not been lost. Bay windows, fireplaces, wood floors, slab granite counter tops, and extensive custom tile work. Kitchen features pantry, island, eating bar, top line SS appliances, and desk area.

Formal dining and living rooms. Master suite with Jacuzzi tub, sitting room, fireplace, and private view deck. Four beds and 2 baths on one level.

Just up the stairs to a finished attic with skylights, this 600 sq. ft. space can be extra bedrooms, play area, or office.

Basement has separate entrance, 2 more bedrooms, full bath, rec room, and 2nd kitchen all stubbed in.

Two car detached garage has potential for a roof top view deck. There is more here than you can imagine. This house has it all!

Call my 24-hour recorded real estate hotline for more details: 888-621-4999 x2.

Commercial Deal Analysis

In previous blogs, I have explained to the new investor how to identify value of residential properties. Typically, this is done by analyzing comparable sales of other single family residences as similar to the subject property as possible. This is known as the Sales Comparison Method of analysis. Residential real estate brokers prepare a Comparative Market Analysis, or CMA, using this method.

With commercial properties, value is typically analyzed using the Income approach. Commercial properties are identified as any income property, including those multifamily properties over five units, and classes such as office, industrial, warehouse, and hotel. In recognition of Dave Lindahl’s upcoming presentation to REAPS, today’s blog will focus on how to value small multifamily properties.

Small multifamily properties of 1-4 units are typically financed as residential properties, and the value of these properties may be a combination of the two methods described above.

Investors may choose to be an owner-occupant or non-owner-occupant of these small multifamily properties, including duplexes, triplexes and 4-plexes. If the property is to be owner-occupied, then some of the more subjective and emotional criteria used to purchase a primary residence come into play. Does the property have curb appeal? Do we like the neighborhood? Do we like the layout? Will it be good for entertaining friends and family? How close is it to the office?

Non-owner occupant investors rely more heavily on a statistical analysis based on actual income and income potential. The most common (and most misunderstood) measure used to analyze a commercial property is the capitalization rate, or cap rate for short. Simply stated, the cap rate is a measure of risk. The lower the cap rate, the lower the risk. The higher the cap rate, the higher the risk.

Properties in high demand neighborhoods, with excellent rental history and little need for maintenance, generally sell for low cap rates. Investors are often more interested in holding these properties for consistent returns and future appreciation. Properties with higher cap rates are typically in less desirable locations, have more turnover or vacancy rates, and may have more maintenance and repair issues. Investors buy these properties for cash flow, and accept the opportunity for a greater upside potential along with the risk.

Cap rates are typically applied based on the rates at which other income properties in the same classification (multifamily) and same conditions are selling in the same vicinity. To determine cap rates, one takes the net operating income (NOI) of the property, and divides it by the price.
Cap rate = NOI/price

Net Operating Income (NOI) is calculated by taking the gross annual income from the property (primarily rents) and subtracting operating expenses and an estimated amount for annual vacancies. Operating expenses include management, maintenance and repairs, insurance, utilities, supplies and property taxes. They do not include principal and interest, capital expenditure, income taxes, depreciation or other financing costs.
Price may also be determined by dividing the cap rate by the NOI:
Price = NOI/Cap Rate

If one knows the value of any two of these terms, the third term can be calculated.
Other analyses that may be useful to an investor in analyzing a multifamily property is to look at the cost per unit to acquire the property.
Price/# of units = Price per Unit

Price per square foot is another useful measure:
Price/total square footage of building(s) = Price per square foot

Many investors also look at Gross Rent Multipliers. Lower numbers indicate a faster payoff for the property. This measure takes the annual gross income and divides it into the purchase price. It can be used as a very rough estimate of the length of time it will take for the building to pay for itself. The lower the GRM, the better for the investor:
GRM = Price/Gross Annual Income

I will be going over these and other deal analysis tools at my free Seattle Tour of Small Multifamily Properties, 1-3pm on Sunday, October 9th. REAPS members are welcome to attend. For more details, please call my 24-hour recorded hotline at 888-621-4999 x4.


Wendy Ceccherelli is the volunteer membership coordinator for REAPS. She has been a full-time real estate investor since 2006, and is the designated real estate broker for Home Land Investment Properties, Inc. Prior to her career in real estate, she spent twenty-five years as a government arts funder. More information on real estate topics may be found on her website at www.HomeLandSeattle.com

Seattle Tour of Multifamily Homes October 9!

Sunday Tour of Homes

Home Land Seattle’s Sunday Tours of Homes are back! And starting Sunday, October 9th, these tours will be held the second Sunday of every month of the year!

In honor of apartment guru David Lindahl’s presentation to the Real Estate Association of Puget Sound this month, our Sunday Tour on October 9th will focus on small multifamily properties for sale in the Ballard/Greenlake area of Seattle.

Home Land Seattle’s Sunday Tours of Homes feature properties of special interest to investors, cash-buyers, and first-time homebuyers. The tours are free, and no reservations are necessary. You will be driving your own car and decide which properties you wish to visit. Just show up at 1pm sharp at the first house on the tour to pick up maps, directions, and more detailed information.

Because we will be touring income properties that may be occupied by tenants, or that may receive an offer before the date of our tour, we cannot publicize the properties that we will visit until a few days before the tour. We will post another announcement here closer to the date of the tour. To be notified of meeting location and list of properties, please call the recorded real estate information hotline at 888-621-4999 x4.

There are currently 38 multifamily properties listed for sale on the NW Multiple Listing Service in the 705 area of Ballard and Greenlake. This area has reported the most multifamily transactions in Seattle in the past six months. The median price for duplexes sold in this area during that time was $430,000; for triplexes $599,500; and for 4-plexes $875,000.

No reservations are necessary for the tour; no sales pressure, no obligation. You drive your own vehicle, so you may stop at whichever properties you wish to see. As a part of a larger group, you will have opportunities to learn from the constructive comments of your fellow tour members.

The Sunday Tours of Homes are led by Wendy Ceccherelli, Designated Broker for Home Land Investment Properties, Inc. She is an experienced real estate investor, and the tour provides valuable guidance for first time home buyers, real estate investors and other bargain house-hunters.

For more information on the Dave Lindahl presentation at REAPS, please see www.reapsweb.com.

To be notified of upcoming Sunday Tours of Homes, call our free 24/7 recorded real estate hotline at 888-621-4999 x4.

Seattle Multifamily Sales

There have been 78 sales of duplexes, triplexes and 4-plexes in Seattle in the past six months. These smaller multifamily properties may be financed as residential, rather than commercial properties; so new investors and owner-occupants looking to save on mortgage costs love them.

The $500K - $600K price range is the most popular for small multifamily sales in Seattle, with the median price being $470,000.

46 of the 78 sales (59%) were for duplexes. The median duplex of 2100sf sold for $377,500 ($179.76/sf)in 61 days. One-third of these sales were in the 705 NWMLS area of Ballard, Green Lake, Phinney Ridge, Fremont and Woodland Park. The median duplex there had 1860sf and sold for $430,000 ($231.18/sf)in 60 days.

21 sales (27%) were for triplexes. The median triplex of 2600sf sold for $542,000 in 50 days ($208.46/sf). Ballard had the most transactions for triplexes, with the median Ballard tri going for $599,500 in 7 days for a 2925sf property ($204.96/sf).

The remaining 11 sales (14%) were for 4-plexes, with median size of 3864sf that sold in 96 days for $785,000. Three of these transactions were located in Ballard, where the median price was $875,000 for the same square footage, and which sold in 31 days.

Split Level Decisions

Are split-level homes more difficult to sell in Seattle?

What statistical evidence can we find that buyers are any more reluctant to buy split level homes in Seattle, that they pay any less for them, or that they sit on the market any longer than other styles of homes?

Of 3122 total home sales in Seattle in the last six months, only 96 were identified as split entry homes. The median split entry sale was for a 4 bedroom, 2.25 bath home with 2148 sf that sold in 47 days for $304,975 ($141.98/sf). Since the NWMLS reports cannot handle more than 500 transactions, let’s look at the last 30 days, and also at a specific zip code for comparison.

In the last 30 days, the median Seattle home sale was for a 3 bedroom, 2 bath home with 1850sf that sold for $361,000 in 32 days. That’s $195.14 per square foot. So the median split entry home sold for a 27% discount in price and it took 47% longer to sell!

The hot Seattle zipcode 98115 had 8 split level sales in the past six months. The median split level sale here was for a 4 bedroom, 2.5 bath home with 2135 sf that sold in 12 days for $440,000 ($206.09/sf). The median home sales for the other transactions in this zip code were for a 3 bedroom, 1.75 bath home with 2060 sf that sold in 19 days for $450,000 ($218.45). This means that split levels in this zip code sold for a 6% discount in price from other styles.

98115 has 119 listings right now on the NWMLS; only 3 of which are identified as split entry homes. These have a median list price of $299,000 and have been on the market for a total of 44 days; other styles have a median list price of $459,975 and have been on the market for a total of 65 days.

So it looks like split entry homes sell for anywhere from 6 – 27% less than homes of other styles. It is also possible that agents are choosing styles other than “split entry” to identify these homes, in which case there may be a bias in the NWMLS statistics that we use for comparison.

Nevertheless, there does seem to be some statistical basis for the belief that buyers pay less for split entry homes than for other styles of houses in Seattle.

Your Real Estate Investor Association

45 new real estate investors, about half of them new members of the Real Estate Association of Puget Sound, showed up last Saturday to learn about jump-starting their investment careers. Rich Dad University is one of several training services that recommends that new real estate investors find and join their local real estate investment association.

Why?

The answers to that question were explored in depth in our half-day orientation at the Lake City library in Seattle, which I organize and host quarterly. This was our second half-day orientation. The next one will be December 3, from 10:30am to 1 pm at the same location. The orientation is free and open to the public. Everyone is welcome! And there are free bonuses for pre-registering at www.reapsweb.com.

Our speakers were all practicing real estate investors in this local market, from the most novice to the most senior, investing in a variety of real estate both locally and out of state in other markets. New investors have the opportunity to learn from and to meet these investors, who are active with our local real estate investor association.

They learned that there is more to joining the local association than just going to meetings and networking (although education and networking are the two biggest reasons to join!). They learned about opportunities to be visible and raise their own profile before other investors; about how to use tools like our members-only message board to ask questions, find contractors, or sell properties; about how to get discounts on accounting programs, insurance, paint and other contractor supplies; about where to find books, tapes and DVDs on specific real estate investing topics, and much more.

They learned about ways to take advantage of their membership, in order to cover their annual dues payment, while at the same time taking off in their investing career. As a volunteer, membership dues are covered! I volunteered as soon as I joined REAPS, and today serve as the volunteer membership coordinator.

If you would like to learn more about real estate investing, feel free to message me privately. And mark your calendar for 10:30am - 1pm, Saturday, December 3 at the Lake City library in Seattle!

Discount on Seattle Bank REOs

There have been over 500 sales of bank-owned properties in Seattle in the last six months. 45% of these listings sold within 90 days for 95% of the original asking price. The remainder sold for 90% of the original asking price.

16% of the so-called "Seattle" REO sales were located in Skyway, White Center, Des Moines and North Hill, areas not actually within the City limits. The median REO sale in these communities was for a three-bedroom, 1.75 bath house with 1500sf that sold for $140,500.

Eliminating these areas from consideration, the typical Seattle REO sale was for a median home with three bedrooms, two baths, 1660sf that sold for $260,000. 53% of these sales sold within 30 days for 100% of original asking price (many sold for more, one in particular sold for 39% more than the asking price!). And as for big cash discounts, it is rare to see a discount of more than 20% of asking price.

So cash buyers may get good deals on REO's but primarily because banks discount the list prices so heavily to attract sales within 30-90 days. Deeper discounts are typically available outside high demand neighborhoods, for cash buyers, on properties that most other buyers have already passed up. The biggest discount in the hot Seattle zip code of 98115, for example, was no more than 5% of the asking price (and the median REO there sold for $350,000).

So when making offers on a new listing for a Seattle REO in a great neighborhood, be prepared to offer full price - and act quickly!

Seattle Home Sales in 98115 (N Seattle)

98115 is a particularly active zip code in Seattle, in terms of real estate transactions. In the past 30 days, there have been 42 single family home sales in this area, almost 10% of all single family home sales in Seattle this past month.

Surprisingly, TEN of these sales (24%) were for MORE than the list price! The same number sold for asking price. So 48% of all home sales in 98115 sold at or above the list price.

The median home of three bedrooms, 1.75 baths, and 2040sf sold in 16 days for $465,000.
74% of the sales were for houses built prior to 1978; more than half of all the sales were for houses built prior to 1944. 62% of them had a garage.

Only two of these sales were for bank-owned properties. None of them were short sales.

There were only three condominium sales in this same area. The median condo sale was for a 2 bedroom, 1.75 bath unit with 951sf that sold for $239,000.

There are currently eleven active listings at or below median market value that represent a good bargain for value in this area. If you are interested in receiving a list of these properties, please message me privately at HomeLandInvestment@gmail.com.

The 98115 zip code includes communities like Bryant, Maple Leaf, Ravenna, Roosevelt, Sand Point, View Ridge and Wedgwood. These are wonderful neighborhoods close to parks, schools, shopping and easy access to I-5 and downtown Seattle.

Seattle Home Sales in Last 30 Days

In light of all the press about the increase in home sales in August, I thought I would provide a little analysis for my readers.

There were 432 single family home sales in Seattle in the past 30 days, with a median sale price of $383,000. These homes sold within 33 days of listing (median time) at 98.24% of the asking price. The median home sold with three bedrooms, 1.75 bathrooms and 2,015sf of living space, listed at $399,000.

63 of these sales (15%) were for bank-owned properties. Bank-owned properties sold for a median price of $159,000 for a 3-bedroom, 1.75-bath home with 1440sf of living space.

Non-REO home sales sold for a median price of $428,000 for a 3-bedroom, 2-bath home with 2179sf of living space.

The greatest number of sales (92) occurred in the $300,000 - $400,000 price range. 71% of the sales in Seattle were for homes built prior to 1978. More than half of all sales were for homes built prior to 1947.

There were 152 Seattle condominium sales within the same time frame. The median condominium sale was for a two bedroom, one-bath, 871sf condo listed at $232,450 which sold in 94 days for $226,250 or 96.43% of asking price. 36 of these sales (24%) were for bank-owned condos.

I am happy to do this analysis for any neighborhood in Seattle and will try to update this blog with neighborhood stats for Seattle's favorite neighborhoods. Send me your comments or requests! and Stay Tuned!

NWMLS Reports Increase in Home Sales!

Several news outlets reported on the NWMLS news release on increases in home sales during the month of August, making this the best month of 2011 in terms of closed sales, and showing a significant increase over last year's statistics.

Word of wisdom from Wendy: when the number of transactions start to trend upward, watch for housing prices to follow!

Here is part of the release from the NWMLS on recent sales activity in Washington:

KIRKLAND, Wash. (Sept. 6, 2011) – August now ranks as this year’s best month for both pending and closed sales around Washington state , according to the latest report from Northwest Multiple Listing Service. Last month’s volume of pending sales was the highest number of mutually accepted offers since April 2010 when the homebuyer tax incentive expired.

Northwest MLS brokers reported 7,632 pending sales during August, a gain of more than 26 percent from the same month a year ago when they notched 6,037 pending sales. Last month’s total for the 21 counties in the MLS service area surpassed July by 450 transactions.

Thirteen counties had double-digit gains from a year ago, led by Snohomish County where pending sales jumped more than 46 percent.

Closed sales in King County this past month rose by 35% over last August, from 4,211 sales to 5,704.

Training for Novice Investors this Saturday!

FREE WORKSHOP ON REAL ESTATE INVESTING

As volunteer membership coordinator for The Real Estate Association of Puget Sound (REAPS), I put together quarterly training for new investors.

REAPS is offering a FREE ORIENTATION this Saturday, September 10 for novice investors, new members and guests designed to help the novice real estate investor make full use of the membership resources and benefits of REAPS in order to jump start their career as a real estate investor. Members of the public are welcome to attend.

REAPS is the oldest – and largest - professional association for the real estate investor this side of the Mississippi. As a not-for-profit association, REAPS aims to motivate and support REAPS members and guests through education, discussion, legislative action and networking. REAPS hosts over 40 live events a year around Puget Sound and they are all open to the public.

Attendees will receive a free booklet, compiling articles on DOING YOUR FIRST DEAL originally published in the REAPS newsletter. These articles help the novice real estate investor start making offers on real estate deals. Today’s market offers enormous opportunities to buy low, choose from a large inventory, and finance at historically low rates.

Speakers at the orientation include practicing real estate investors who will highlight the membership resources most important to new investors.

This FREE ORIENTATION will be held from 10:30 am - 1 pm, Saturday, September 10 at the Lake City branch of Seattle Public Library, 12501 28th Ave. N.E. in Seattle. There is plenty of free parking in the underground garage or on the street. Because space is limited for this event, please RSVP in advance at the REAPS website www.reapsweb.com.

For more information, please contact Wendy Ceccherelli, volunteer Membership Coordinator, at HomeLandInvestment@gmail.com or 888-621-4999.
* * * *
Who: Open to members of the public interested in real estate investing; sponsored by the Real Estate Association of Puget Sound
What: Free Real Estate Investing Workshop
When: 10:30 am – 1 pm, Saturday, September 10
Where: Lake City branch, Seattle Public Library, 12501 28th Av NE
Why: Today’s housing market provides unparalleled opportunities for real estate investment

Don't Call the Police!

Do not attempt property management without a healthy sense of humor! It can humble even the most logical of minds. My most recent haha moment as a property manager came yesterday, as the blind and deaf couple I was evicting (another long story we will skip for now) was finally vacating the house.



"Please don't call the police," came the message relayed by their advocate, helping them move. The deadbeat relative against whom there is a No Contact Order, was helping them move, with their permission! This, the deadbeat relative who I had arrested TWICE before for violating the No Contact Order. I would have had him arrested a third time, but he refused to answer the door when the police showed up.



It seems I was the only one who ever called the police to report this violation. No one else bothered. Not the "victims," not the daughter, not the advocates (who also never returned my calls).



The police department was usually baffled when I called: "WHO are you again? You aren't the victim? Why are you calling??"



But shout out to Detectives Nadine Fiorini and Elizabeth Litalien who somehow took my efforts seriously enough (after weeks of trying to get through to someone, ANYONE, who would care) to validate that there was indeed a No Contact Order against the guy living in the house with my tenants.



Go figure....