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Market Tips and Trends
News from Orcas Island Realty
Spring 2010
Bottom Heavy .
Enduring the last few years of financial upheaval has been trying for most of us whose assets are tied to real estate. Many people are asking, “Have we hit the bottom of this recessed market?”
At Orcas Island Realty, we are sympathetic to sellers’ frustrations, and are continuing our efforts to reach out to buyers, encouraging them to take advantage of this very favorable market. At the same time, we recognize how challenging this cycle has been for buyers. Many homes that are being “watched” have stayed for sale for extended periods and there isn’t much new inventory, which can make it difficult to know when the time is right to make a purchase.
Beyond our local region, there is positive news about the increase in high-end activity on the West Coast. As these markets improve, we are optimistic that the trickle-down will positively affect us in the San Juan Islands as dollars are freed up to make long-awaited purchases here.
- We noticed an increase in consumer confidence in the million-dollar-plus category during the middle of December 2009, which continued through January and beyond. Buyers are realizing that even though their portfolio values may have dropped, the decrease in real estate prices gives them a purchasing power similar to what they enjoyed during pre-recession times. Another positive factor is a pattern we’ve observed in years past: After putting their plans on hold in uncertain financial times, buyers tire of waiting and move ahead with purchasing vacation and second homes to share with their loved ones.
- In the mid-range category (homes priced between $500,000 and $1.5 million), there is substantial inventory and many bargains to be had. In addition, several island properties that were removed from the market in 2009 will be re-listed in the coming months at lower asking prices. Buyers looking in this range can find some great deals in early 2010, before prices begin to climb again.
- In the under-$500,000 price range, we are seeing a wave of foreclosures and short sales headed our way. As this cycle plays out, it may drive down prices for these homes in the short term. There are buyers waiting for these deals (creating demand) so we are seeing a lot of frustration and competition for these properties as banks are not necessarily willing to take losses on their investments. If you are a buyer, act now—there are many shoppers who think they will see better deals once intro-level homes are bank-owned but this hasn’t necessarily proven to be true. There is a lot of well priced inventory available and many sellers who are willing to consider your offer. Look again at a home or land you thought you couldn’t afford. You have nothing to lose by making an offer for an amount that makes sense for you.
Our brokers at Orcas Island Realty have the tenacity and experience to help you navigate the quagmire of the current real estate market. We continue to be the market leader in bringing buyers and sellers to the table for successful closings in these difficult times. We are confident that 2010 is going to be a very active year for real estate.
Call or stop by to discuss how we can help you get what you need out of this unusual market. Our office is located at 123 North Beach Road next to the Orcas Island Historical Museum and the Village Green.
If you’re a buyer, keep in mind that high supply and low demand are driving prices down and creating unique opportunities for great deals. But remember that even when the market favors buyers, we still recommend that you create a strong position for yourself prior to making offers. Here are a few things you can do to prepare:
- Get prequalified. Call your banker or mortgage broker and discuss your options for financing before you shop for properties. They should be able to give you a letter regarding what you are qualified to purchase so that you’ll be in a better position to make an offer when you find an interesting listing.
- Know the market. Spend some time on our website looking at all of the listings currently available. This will help educate you as to why things cost what they do, and what is a good value in the present market.
- Stay in touch with your agent. Establish a relationship with your real estate agent and let her or him know what you are in the market for. Once you are on our radar, we will call you first when new listings come up.
Please feel free to contact any of us if you have any questions or would like to review the status of your listing. We’re here to help, wherever the market appears to be going.
Preparing Your Property to Market
If you are thinking of selling, preparing your home and property for listing will enhance the “curb” appeal when buyers first see your property. Use this list to get started:
Homes and improved properties
- The yard—Start with pruning trees and shrubs, mow the lawn and plant flowers for a splash of color. If you know you would like to sell in the winter, take digital photos (or call us and we will do it for you) when your garden is in bloom.
- Fix everything—Walk around your house and make a list of things that appear to be broken or in disrepair. Fix it, replace it or get rid of it. Fix loose boards, broken windows and light fixtures. It’s better to have items fixed before a potential buyer sees your home, offers a lower price and still demands repairs before closing.
- Paint outside—if you haven’t painted in a few years, this is your lowest cost and highest return fix of anything you can do.
- Unclutter—Remove unused items from inside and out of your house, garage and grounds. Have a garage sale, donate to nonprofits or rent a storage unit. The Exchange can take many items or call us for ideas about upcoming nonprofit events that may be interested in your old stuff. This not only makes your home seem cleaner and brighter, it also makes spaces look larger when they are less cluttered.
- Clean—Carpets, floors, windows, everything…A well kept home communicates that you are a conscientious homeowner who has taken good care of your property over the years.
- Staging—This is realtor talk for “set the mood.” Statistics show that a potential purchaser of a home makes a decision in the first 30 seconds they step into your home regarding whether or not they could live there. Create a light, bright and peaceful ambience by opening blinds, turning on lights and having soothing music playing. Install higher watt bulbs to brighten gloomy areas, make sure garbage and pet odors have been managed, bake bread or cookies (instant works too), and keep windows open.
- Plans and permits—If you can find these it is helpful in putting together the listing information. This includes septic permits, well reports, surveys and any plans or permits for structures on your property.
Raw land
- The yard or 100 acres—The same idea as above in caring for established gardens and trees. Prune, plant and mow.
- Survey—Consider having your property surveyed and boundary stakes set so buyers know what you are selling.
- Paths—If you own acreage without roads or paths, install some basic trails so that buyers can walk through the property.
- Financing—Can you offer short term seller financing? This could help us sell your property faster for you.
