Eric Kossian, Leavenworth Insurance

When an affluent person buys homeowner’s insurance their lifestyle demands that they have insurance that matches their lifestyle.

For starters, an affluent client has a larger more expensive home ($400K market value+) that should be insured with no cap on replacement cost instead of limited “extended replacement” on 95% of policies offered.  They also need Comprehensive Perils coverage (everything that goes wrong that is not excluded is covered) instead of a list of Special or Broad Perils (only listed perils are covered).

An affluent client typically has fine art, jewelry, musical instruments or collectibles that they will have scheduled coverage for any direct physical loss to the item. Affluent clients typically have higher quantities of items that under typical policies limit coverage for theft of these items:

•  Firearms $2500 limit,
•  Jewelry, Precious Stones,Watches and Furs $1500,
•  Memorabilia $5000,
•  Securities $1500,
•  Silverware $2500,
• Personal Tools $5000

These theft limits are just way too low for most affluent clients since they often own 2 -10 times the theft limits of these items.

Home policies designed for affluent policyholders also typically cover ID Fraud Reimbursement of $25000 or more, Ordinance and law coverage ( to bring home up to current code after a loss) and include Personal Injury Liability.

Speaking of liability, affluent clients are also more likely to be sued because they are more in the public eye, more likely to own rental properties and more likely to have hired household help such as nannies, gardeners, cooks and housekeepers. They need much higher auto, boat and home liability via excess liability coverage of $1 – 10 million or more. Excess liability also covers the family for at fault skiing, snowboarding, boat, recreational vehicle and hunting accidents (think Dick Cheney!) as well as libel, slander, false arrest and defamation of character. An excess liability policy will also cover defense costs, lost wages, interest on unpaid judgments, and even premiums on appeal bonds. A good excess policy will include excess underinsured motorist coverage of a million as well.

Due to international travel a good policy will extend not just liability coverage but also auto physical damage coverage worldwide, so when renting a Mercedes on the Autobahn, the insured would be able to waive the expensive rental car coverage. The policy would also cover any loss of use or diminished value of the damaged rental car.

There are only a handful of carriers that cater to affluent clients with the broader coverage they provide. Believe it or not it might be only a few hundred more dollars a year, and is often a few hundred dollars less, due to large discounts provided by their high credit scores – the single biggest statistical determinate of loss.

Eric Kossian, is an Underwriting Specialist and Agency Principal for Leavenworth Insurance and InsurePro with affluent clients throughout Washington.  He can be reached at Eric@InsurePro.info or by calling 1-877-548-5488.

In December, ten homes sold in the Leavenworth area.  No condos sold this month.

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2253 Riffle Drive, Leavenworth

List price: $144,900.  Sold price: $132,000.

Days on Market: 221

0 bedrooms | 1 bath | 600 sqft | .52 acres

A small cabin in the Chiwawa River Pines neighborhood, this home technically didn’t have a bedroom.  It has a small sleeping loft and one main living area.  This home was a foreclosure.  It had previously been listed in Sept 2008 with an original list price of $325,000 and was on the market for 368 days.

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23900 Alder Creek Road, Leavenworth

List price: $154,900.  Sold price: $150,000.

Days on Market: 147

1 bedrooms | 1 bath | 1200 sqft | 20 acres

This property was originally a garage and about half of the area converted into living space.  The property is not accessible by car in the winter.   This was a foreclosure property and was originally listed for $214,000.  It came on the market previously in March 2010 with a list price of $468,000.

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915 Pine Street, Leavenworth

List price: $209,900.  Sold price: $180,000.

Days on Market: 225

3 bedrooms | 1 bath | 1553 sqft | .14 acres

An older home built in the 1930′s, it has some upgrades and refinished wood floors.  It originally came on the market with a list price of $239,000.  This property was part of a bigger parcel that sold in June 2010 for $200,000 and consisted of a church, this house, and .45 acres in 5 platted lots.

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193 Mine Street, Leavenworth

List price: $269,000.  Sold price: $249,500.

Days on Market: 92

3 bedrooms | 1 bath | 1584 sqft | .16 acres

Estate sale of a cute home on the west end of town.  This home has an open floor plan and a one car garage.

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9411 Lone Pine Orchards Road, Leavenworth

List price: $399,000.  Sold price: $375,000.

Days on Market: 152

3 bedrooms | 3 bath | 1964 sqft | 1.25 acres

This house is located between Peshastin and Leavenworth off of Hwy 2 on the Wenatchee River.  The house  was built in 1980 and still has most of the original finishes.  It also has a large three car attached garage plus an additional detached garage.  This was a guardian estate sale.

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10404 Eagle Creek Road, Leavenworth

List price: $439,000.  Sold price: $383,637.94.

Days on Market: 638

3 bedrooms | 2 bath | 1829 sqft | 2.04 acres

A three bedroom rambler built in 2001, the property has an extensive garden and also borders Eagle Creek.  When the home originally came on the market the list price was $529,000.  The strange selling price is due to repairs negotiated during the inspection response.

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19830 Hwy 207, Leavenworth

List price: $509,000.  Sold price: $512,000.

Days on Market: 42

4 bedrooms | 2 bath | 2772 sqft | 12acres

A newer construction home built in 2008, the home has a large, open living space.  We were surprised to see this home back on the market since it just sold in November 2010 for $507,000.  We were also surprised to see it close so quickly since it had been on the market previously since 2008.  The home sits in the flood plain and while the property borders Nason Creek, you cannot see the creek from the house.

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10390 Eagle Creek Road, Leavenworth

List price: $595,000.  Sold price: $579,000.

Days on Market: 257

4 bedrooms | 3.5 bath | 3807 sqft | 5.01 acres

A large home up Eagle Creek Road built in 2006.  This home sits on the hill side and most of the acreage is sloped, but does afford a nice view of the surrounding area.  The home originally came on the market with a list price of $644,900.

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16437 River Road, Leavenworth

List price: $599,000.  Sold price: $565,000.

Days on Market: 514

3 bedrooms | 2.25 bath | 2300 sqft | 1.26 acres

A beautiful home on the Wenatchee River in Plain, the home has a nice interior with lots of tongue and groove wood decor.  The home originally came on the market with a list price of $875,000.  It is one or two lots removed from the railroad tracks.

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8255 Mountain Home Road, Leavenworth

List price: $985,000.  Sold price: $850,000.

Days on Market: 214

4 bedrooms | 3 bath | 4800 sqft | 32.72 acres

This log home at the top of Mountain Home Road has unparalleled views of the Enchantments.  The property is horse friendly with a huge barn and fencing.  The home is not accessible in winter by car.

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More Leavenworth Real Estate Info

• Click Here to See Leavenworth Sold Homes for Novemeber 2011
• Click Here to See Cashmere Sold Homes for December 2011
• Click Here to Search for Leavenworth Homes for Sale

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Required Disclaimer

NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.

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422 Elberta Avenue, Cashmere

List price: $81,000.  Sold price: $78,165.

Days on Market:146

2 bedrooms | 1 bath | 768 sqft | 0.11 Acres

Small home on a quiet street in Cashmere built in 1928.  This home was a foreclosure and was orginally listed for $91,500.

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5655 East Cashmere Road, Cashmere

List price: $155,000.  Sold price: $155,000.

Days on Market:0

2 bedrooms | 2 bath | 1668 sqft | 0.46 Acres

A home built in 1940 located behind Martins Grocery Store.  This home was not listed on the multiple listing service.  It may have been a For Sale By Owner.

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204 Chapel Street, Cashmere

List price: $169,900.  Sold price: $169,900.

Days on Market:65

3 bedrooms | 2 bath | 2200 sqft | 0.22 Acres

A 1947 home built from cinder blocks.  Third bedroom is in the basement and is considered an ”non-conforming” bedroom because the window does not meet fire code standards.  The basement has its own entrance and full kitchen.  Property has an additional three bay car port.

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302 Elberta Avenue, Cashmere

List price: $170,000.  Sold price: $170,000.

Days on Market:20

3 bedrooms | 1.75 bath | 1902 sqft | 0.13 Acres

Older home with some updates and some original charm.  The home was previously on the market in 2008 with a list price of $235,000.  The home was listed as pending the day it came on the market so the listing agent probably found a buyer for it even though it was not actively on the market.

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217 Paton Street, Cashmere

List price: $230,000.  Sold price: $230,000.

Days on Market:0

3 bedrooms | 3 bath | 3504 sqft | 0.35 Acres

Another home that was not on the multiple listing service. This is a home built in 1950 with a full basement and a large lot on the corner of Paton and Pioneer.

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113 Meadow Sweet Place, Cashmere

List price: $239,900.  Sold price: $225,000.

Days on Market:259

3 bedrooms | 2.5 bath | 1550 sqft | 0.36 Acres

A home on a quite cul-de-sac, built in the late 1990′s.  The home has a hot tub and a pool in the backyard.  This home was originally listed for $267,900 when it first come on the market in March 2011.

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5191 Vista Heights Place, Cashmere

List price: $338,500.  Sold price: $360,000.

Days on Market:343

3 bedrooms | 2.5 bath | 2844 sqft | 1 Acre

This home is just outside of Cashmere on the top of a ridge with excellent mountain and river views.  The home was originally listed June 2010 for 108 days with a list price of $430,000.  The original listing had the house built in 1954, the most current listing said 1924.  Either way, the house was completely re-done.

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More Leavenworth and Cashmere Real Estate Info

• Click Here to See Cashmere Sold Homes for Novemeber 2011
• Click Here to See Leavenworth Sold Homes for December 2011
• Click Here to Search for Cashmere Homes for Sale

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Required Disclaimer

NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.

All in all, 2011 looked a lot like 2010.

The median home price in Leavenworth fell from $310,000 to $307,000. This is down 12% from a peak of $349,000 in 2008

Average home prices in Leavenworth fell from $362,000 to $353,000. This is down 15% from a peak of $415,000 in 2007.

The total number of home sales is up this year from 84 to 86, but down considerably (47%!) from 162 in 2007.

What can we expect in 2012?

I actually think my predictions for 2010 still hold true in 2012..

Here’s what I said at the end of 2009.

• I would guess prices will continue to muddle along. Some neighborhoods will see price drops and others won’t.
• Condo inventory will clear out.  I would guess that foreclosure or auctions will be part of this equation. ( We have two holdout projects still from 2007.)
• The overall number of foreclosures and short sales will remain low.
• Demand and prices for premium locations (waterfront properties) will remain strong.

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Required Disclaimer

NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.

Photo courtesy of Jeff Turner aka @respres

How little?

Of the 98 single family homes and condominiums that sold in 2011 in Leavenworth and Peshastin (including Lake Wenatchee and Plain) only 4 homes were bank owned properties or short sales.

You read that right. About 4% of Leavenworth home sales in 2011 were foreclosures.

Nationally, about 19% of home sales were distressed sales so we are pretty lucky in that regard.

One of our biggest requests from clients is info about Leavenworth foreclosures. We get it. Everybody wants a good deal.  I am just not convinced that foreclosures are the place you will find the deals locally.

In 2011, the bank owned properties that sold in Leavenworth and Peshastin were an odd bunch:

• huge fixer upper project in Peshastin
• 600 sqft cabin in Chiwawa River Pines
• newer home in rough shape backing to the railroad tracks
• off grid home without winter access

Riverfront properties? None

Houses on Lake Wenatchee or Fish Lake? None

Luxury Homes? Nope – The most expensive house here sold for $204,000 (and this was a house that sold for $250,000 in 2006.) The other three sold for less than $150,000.

How did 2011 compare to 2010?

In 2010 we had 10 distressed sales and that number has dropped significantly.  However, there are 7 distressed sales that are pending/ under contract. 2011′s numbers maybe a little low because these pending sales took so long to close.

We certainly haven’t seen a rash of short sales or foreclosures come on the market. I see no signs nor have I heard anything that would lead me to believe that there is a large amount of “Phantom” inventory owned by banks or likely to be foreclosed on soon in the Leavenworth market.

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Required Disclaimer

NOTE: This representation is based in whole or in part on data supplied by the North Central Washington Association of Realtors or its Multiple Listing Service. Neither the Association nor its MLS guarantees or are in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the Market.