Nicole's Blog

My friend and fellow Realtor, Erik Hitzelberger with RE/MAX Alliance in Louisville, KY, recently posted a blog that thoroughly amused me. Right now is a great time to buy real estate and I can tell you about all the tax benefits or savings you can get from locking in the still all-time low rates, but you've heard all of that before. Instead, Erik has come up with a Dr. Seuss style rhyme to help convince you.

Home-ownership is very rewarding- it's the 'American Dream', but don't take it from me, listen to the wise words of Erik Hitzelberger. Enjoy!

To jump-start the real estate market, the government and other local agencies have created various new programs and guidelines to aid them in their efforts. For instance, did you know:

It looks like some of these new programs are working and we are starting to see the results. We still have a long way to recovery, but these are just of few of the signs that we are headed in the right direction.

To find out more about what is going on in your community or what programs you can benefit from, The Egerer & Weidauer Home Team has got you covered- give us a call!

I think it's appropriate that Disney's new animated movie, UP, was just released because it seems our real estate market too is going up!

According to the Northwest Multiple Listing Service, inventory is shrinking, sales are rising, and prices are stabilizing in some Northwest MLS areas. "Waiting longer to buy a home is not likely to pay off, according to Northwest Multiple Listing Service director Kathy Estey after reviewing reports summarizing May activity. Estey pointed to shrinking inventory (about 20 percent fewer listings than a year ago), double-digit increases in the number of pending sales (up 17.7 percent from a year ago), solid open house activity, and signs of stabilizing prices (eight of the 19 counties in the report show price gains since January) as indicators of an improving market."

Buyers had fewer choices during May than at this time a year ago. At month-end, member-brokers reported 41,318 active listings throughout the NWMLS service area. A year ago, there were 51,817 active listings. Current inventory includes 11,278 single family homes and condos that brokers added during May. For the same month a year ago, brokers added 14,176 new listings to inventory.

Even in the national news, we are hearing that the worst may be over. "But many analysts believe that the worst part of the recession is coming to an end. They expect GDP to decline by a smaller 2 percent to 3 percent in the current quarter and then turn slightly positive in the second half of this year.

More than 90 percent of economists surveyed by the National Association for Business Economics are predicting that the current recession, now the longest since World War II, will end either in the third quarter or by the fourth quarter of this year." (http://www.msnbc.msn.com/id/30979615)

Even though sales of existing homes are up, throwing off signals that it may be bumping along the bottom, and the ride is likely to be a little rough. The good news though, is that there really is nowhere but up from here!

For those of you in the market for luxury homes in the greater Seattle areas, Keller Williams Greater Seattle has just welcomed Kendra Todd, a nationally recognized author, lecturer and TV Personality, as the head of their Luxury Homes Division. Todd, who won the popular NBC series The Apprentice, was the first woman and youngest contestant to ever win the hit reality show!

During her time with the Trump Organization, she was involved with the sale of a $100 million dollar Palm Beach estate: the highest residential real estate transaction on record in the United States. Currently, Todd hosts the critically acclaimed HGTV series "My House is Worth What?" and serves as the Yahoo! Finance real estate columnist with more than 400 million registered users.

"We are thrilled to welcome the Kendra Todd Group to our firm," says Andrew Greenwell, team leader. "Her experience as an entrepreneur and insight into the real estate market has proven to be a tremendous asset to our company."

Adding Kendra to our market center is a tremendous asset to me as an agent because I will be able to watch and learn from this proven market leader!

A wise man once wrote, "The game of life is not so much in holding a good hand as playing a poor hand well". This quote is especially true in the real estate world. Every market brings it's own rhythm and it's own rhyme.

This market in particular not only has your typical sale or resale of single family homes, town homes, and condos but now we have short sales, foreclosures, and REO's to deal with. They're increasingly common these days because of the values that have dropped on many homes whose buyers had little or no equity in the first place. "While there are always a small percentage of homes that go into default or foreclosure, during a shift distressed properties can flood the market and begin to impact the marketplace." (Shift, Gary Keller)

A veteran real estate agent from the greater Bellevue area stated that in her 30+ years of real estate work, she had never handled a short sale. "There was no need," she said. "It was a whole different market. But they're probably going to be an important part of the market for a while yet. It's going to take a long time to recover."

Short sales and lender-owned homes now account for about 35 percent of listings in some Washington counties. "They're coming up every day in large numbers, so I wouldn't be surprised if it's even larger than that."  (http://www.seattlepi.com/business/405744_shortsale01.html)

Although they can be difficult and down right unpleasant at times, us agents ought to pull together to help our short sale and foreclosure sellers to get out of their unfortunate situations and aid our savvy buyers and help them get the deals out there. These homes are not going to go away on their own, let's get working!

Within the last month, I've dealt with a handful of the various types of agents out there; the helpful ones, the nice ones, the not- so- nice ones, the kind of kooky ones, etc..

When acting as an agent to either buyers or sellers, agents need to observe due care and work for the benefit of your client. Working to benefit your client means that you must deal properly with cooperating agents. The name for other agents working on the transaction iscooperating agent, after all, and you should therefore do exactly that; be cooperative! This is not about you or your deal- this is YOUR CLIENT'S deal.

Like I said before, in the last month I've dealt with some agents that just didn't seem to even want to make things work. Your job as an agent is to be the logical third party who helps facilitate and negotiate the transaction. The real estate transaction can be a downright stressful process and when an agent throws their own emotions into the mix, it makes it that much harder to get a deal going.

Agents, please remember to be cooperative and work with other agents to get a deal going. In this market, it's us agents that need to pull together to start moving those properties and helping our clients get what they want!

As you may know, I am a true Dave Ramsey follower. As soon as I got on board with his financial program I got rid of my credit cards, got on a written budget, and started my walk through the "baby steps". He has truly changed the way I look at money.

Last night, Dave and some of his friends at LifeChurch and Fox Business Network, held the nationwide simulcast, Town Hall for Hope. What an incredible event. Just knowing there are other people out there who have not given up and who are not going to participate in the recession gives me hope!

There was some great information presented and a lot of interesting facts. For instance, we all think things are pretty bad now but can you remember what it was like in the 70's recession in the mile long gas lines? Or the drop in the stock market of nearly 50%? Or in the 80's recession where interest rates were up to 17-18%? In some respects, we are not doing as bad as we have in the past.

It is interesting to note that Dave thinks that it will be the housing market that will pull us out of this recession. "Interest rates are at 4 3/8% and homes everywhere are on sale." According to recent data, 4.7 million homes were sold in February, 2009 alone, and only 860,000 homes were repossessed all of 2008. Although sales are slower than normal, I'd say those numbers are looking pretty good.

If you only took away one thing from the event it would be to have hope. Hope for our future and our children's future. I realize that watching one minute of news will diminish what hope you have left so to revive that spark of hope back in you, follow these 3 steps:

You are the cure, America. No one else is going to solve your problems for you-that's your job! Find out how you can take control of your money, turn back the fear in your community, and hold your representatives accountable for the decisions they're making on your behalf.

We're sick and tired of the "loser talk" that has permeated the media, the water cooler and the internet. Stop listening to the garbage, and start speaking a word of hope!

Learning how to give-whether it's money, time or support-changes your whole mindset. Dave says it pretty clearly: "We can't win if we can't give." If you want to win with money and change the nation, you've got to learn how to give again.

As many of you know, I am engaged to marry my best friend, true love, and real estate partner, Jeremy Egerer. We're coming on our 3rd year and are just as kiddy and excited with each other since the first time we met. The internet played a major role in bringing the two of us together... here is how it all began:

How far will one go for love?  Well, for some, that may not be far.  For Jeremy Egerer, however, he was determined to seek out his lost love by utilizing all means of modern   technological advancements to scour the earth for his missing other half.  As such, the computer was one of them, and his   method of pursual was Myspace.  And yes-- that's a legitimate, though unorthodox and generally disappointing way to go about it.

Now, Nicole (also known as Bun Bun) was a wary maiden, but incapable of resisting his rogue charm, which was heavily assisted by stubble and muscles years in the making.  Of course, she didn't know this would end in true love.  What would the chances be that a handsome rogue would actually exist on the internet, and be worth dating?  Of course, most people know that the chances of meeting a reliable partner on the internet would be statistically improbable, but in this case Bun Bun was willing to suspend disbelief.  She would then reply to his letters in the most romantic fashion available, and Jeremy--or "Risky Business," as his Myspace moniker was at the time--would write back.  Again, and again, and again, until she couldn't wait any longer.  She just had to meet him.

And so they met.

So was it fate that brought them together that 28th of August, 2006?  Of course it was fate.  Otherwise, you would not be reading about this.  At Sam's Sushi on Queen Anne Ave, Risky Business would romance the woman who would eventually become his wife, discussing things like how they both came from religious backgrounds, and how they both had actual jobs, and enjoyed eating food.  Nervous chatter, mostly. 

But as the night drew to a close, Risky knew there was something special about this one.  That she was sweet beyond the usual sweetness.  That she was genuinely beautiful.  That she was the kind of girl he'd been looking for.  That she would eventually get a parking ticket because she forgot to check the parking meter sign.  That the sushi was more expensive than he originally thought.  But mostly, that he wanted to see her again.  And so, ladies and gentlemen, it begun.

Jeremy and I were able to find an amazing love on the internet of all places. What else can it do? Well, the internet can also bring people together with the home they are "meant to be with". There are so many tools and sites that buyers and sellers can utilize to better their home buying or selling experience. Zillow, Trulia, Realtor.com, and let's not forget Activerain.

The websites out there connect people with local realtors, weekly open house information, neighborhood listings, etc.. Our team website, for example, is chalk full of great information and tools to aid you in your home buying/selling endeavors.

The internet is an invaluable resource when shopping for a home and as a certified E-Pro, I'd be more than happy to help you in your search. Just like me and Jeremy, you too can find your perfect match!

According to a recent Kiplinger article, taxes play a significant role in deciding where to dig in your roots and call home (in addition to housing costs and living expenses). They have put together a list of U.S. cities with the lowest state and local tax burdens (as a percentage of gross income). And wouldn't you know it, Seattle made the list!

No. 4 Seattle, Washington

Income tax: $0
Property tax: $1,698
Sales tax: $1,561
Auto tax: $457

STATE & LOCAL TAX BURDEN: 5.0%

Urban Facts: Seattle may be a tax-friendly city, but it also has a high cost of living, well above the national average.

The median home sales price was $375,000 for last quarter of 2008, compared to $200,000 at the national level.

http://www.kiplinger.com/magazine/archives/2007/04/taxfriendlycities.html

Over the last two years or so, we've been going through what is known as a market correction. Market corrections will vary in length and method of correcting. In the last few weeks I've been thinking about the things that I've seen work to get areas on the path to recovery:

• First time home buyers                                             
• New Construction
• Knowledgeable, competent real estate agents

First Time Buyers- It's no coincidence that with falling interest rates and the new $8,000 tax credit, 53.5 percent of home buyers in 2009 will be first-timers. In fact, all of the buyers that Jeremy and I are working with right now are first time home buyers. In addition to the many incentives for buying- first timers don't have a current home to worry about selling. With nothing to tie them down, first time buyers are in the driver's seat and in this market that is exactly what we need to jump start home sales.

New Construction- Why is new construction appealing to buyers right now? Because builders are hugely motivated and they have secured these neighborhoods with their personal assets. They are very motivated not to lose their own homes and everything they've worked for years and years to build up. These ‘professional' sellers are realizing that they need to price realistically to see their properties move.

Knowledgeable & Competent Realtors- Our clients really aren't looking to us for help in searching for a house - they can do that themselves. What they're looking for is knowledge: "Is this a good investment for me? What am I not seeing here? Help me to negotiate the price, and set me up with a good lender." Those are the type of questions buyers and sellers are looking to you for. What's is our biggest challenge? People's fear of the economy. They've been hearing so much negative news they're afraid to step ahead. So really, our job, is turning that around, to help educate people as to what is a good value, what is a good investment in my eyes.