Leavenworth Real Estate

Archive for the 'Home Sellers' Category

Fish Lake Real Estate

In an earlier post on Active Rain, I introduced you to Fish Lake just outside of Plain and Leavenworth, WA. This post is specifically about the real estate opportunities that can be found on Fish Lake.

 

Fish Lake is a smaller and more intimate lake than Lake Wenatchee. It is also mostly bordered by U.S. Forest Service land. The amount of private waterfront is very limited and even homes near the lake are hard to come by.

 

This is the last waterfront home sold on Fish Lake.

 

 

 

 

 

 

 

 

 

 

 

 

I sold it in May of 2005 for $470,000. In general, real estate in the Leavenworth and Lake Wenatchee area has been appreciating at 15 to 20% a year. Considering it has been two years since a home on Fish Lake has been available, I think the appreciation here has probably been higher. I usually tell buyers looking for a home on Lake Wenatchee to plan on spending at least $1 million. I don’t think Fish Lake has quite reached that mark, but it isn’t far off.

 

These two houses sold in the past year.

 

 

 

 

 

 

 

 

 

 

Neither of these homes were located on the lake, but both were within walking distance. The home on top sold in May of 2006 for $350,000. The other home sold in March of 2007 for $375,000.

 

If you are looking for a home on or near Fish Lake I have two obvious pieces of advice. Be patient and be prepared to pay a premium for waterfront.

 

If you have a home or lot to sell on Fish Lake or even nearby, you are sitting on some very valuable real estate. Please don’t hesitate to contact me for current market analysis.

 

 

 

 

 

Why aren’t homes in Cashmere Selling? (It’s the price…)

Allyson got this bit of fan mail today…

“So what is up with the blog? I notice that the frequency of postings has decreased–I rely on it to keep up to date on the greater Leavenworth real estate market–I am starting to get the shakes–when will we get a new post?”

This is for you Holly….

I have been a little surprised that there hasn’t been much movement in the usually crazy Cashmere housing market. Currently, there are 10 homes on the market in Cashmere under $300,000. This is about a 3.5 month supply. Clearly a strong seller’s market by most approximations.

Yet, there is only 1 pending sale!
I decided to dig deeper.

In the last 6 months, 17 homes sold in this price range. The average home was 1660 square feet and sold for $190,000.

The current crop of homes average just about 1600 square feet, but are on the market for $240,000.

Now it’s POSSSIBLE that the homes on the market today are much nicer, newer, etc homes, but…. not very LIKELY!

In the last 6 months homes in this price range sold in average of 72 days – just over 2 months. The current crop is averaging 61 days.

Cashmere homeowners take note – this is a healthy market, but your GREED is getting in the way of your agent selling your house. Real estate agents in Cashmere – you need to have “the talk” with your sellers.

The Psychology of Numbers

Much of real estate revolves around negotiating between sellers and buyers. This is something I count as one of my skills and I am really happy to provide it to my clients in the Leavenworth real estate market. Much of negotiating revolves around what I call the “pychology of numbers.”

We all know that a house listed at $199,950 is a $200,000 house. It still looks a little more affordable if we price it at $199,950. (Not that there are many $200,000 houses in Leavenworth.)

However, let’s imagine a house that is listed at $225,000. If we want to get a deal for the buyers do we offer $199,950? Of course not! We offer $200,000 because it looks bigger.

Buyers want their offers to look big and sellers want their listings to look affordable.

Another thing to remember when pricing a home as a seller is how agents and buyers search for homes. Mostly these days it’s by computer- either on the MLS or on the internet. Buyers search by price range – often in multiples of $25,000 or $50,000.

What’s the worst price for a home? $205,000. You are missing all the buyers who are looking at $200,000 and under. You probably would have better luck at $215,000 or more. You look like a bargain compared to the $250,000 houses.

Zillow may be working on their algorithims day and night, but as long as humans are the ones buying and selling, pyschology will be an important part of the equation.

Fortune Magazine “Real Estate Survival guide”

My new issue of Fortune came in the mail today. I’ve been a fan of the mag the last year or so. I don’t really have the energy to pour through the Economist like I used to, nor do I feel like I need to start each day with the WSJ or NYT. I tried Money, but was often dismayed by their lack of insight on real estate matters. Anyhow, the new issue of Fortune:

The first article about the bubble deflating was a lot of hype. Real Estate is local, some bubbles will deflate, some markets will continue to shine. After you read the first article “Harsh Reality” you will swear off real estate, but the second article “Ten Tips for Today’s Market” tempers the first.

“It never pays to get caught up in group hysteria, especially when it comes to real estate. Conditions vary from town to town, and no national statistics can give you a clear picture of what’s happening in your neighborhood. So don’t let headlines spook you into making a costly mistake.”

Amen! I’m tired of hearing glaring generalizations about the market that are irrelevant to the hot market I deal in daily.

Additionally, I love the common sense tips. I’d link to the article here but Fortune mag online doesn’t have the article.

Here are my favorites:

Price it right. (Not as common as you think it is..)
Hire an Agent (Obviously, I have strong feelings on this one. I won’t say any more)
Set the Stage ( Even in a hot market, no one wants to buy a dump.)

The cover price is $4.99. go pick up a copy or at least read the article at the library.

Office Exclusive Listings

As many of you know, we are generally in a “sellers” market in the Leavenworth area. There are very few homes on the market and little for a buyer to choose from.

Real estate is very competitive here in our little valley and agents and real estate companies are trying new tactics to protect their business.

One such tactic being used is “Office Exclusive” listings. When I list a property I try to bring as many potential buyers to my clients home as possible. I advertise in a wide range of publications and websites and place the home on the Multiple Listing Service. Office Exclusives are listings not found in the MLS.

How does this help the seller? I’m not sure.

Perhaps they are paying a lower fee by not being placed on the MLS. Does this savings outweigh the gains received by the possibility of multiple offers common in our market?

Perhaps they hope to attract a non-represented buyer who won’t be able to negotiate the price or other terms as well as a real estate professional could.

I educate my sellers that Office Exclusives are not in their best interest. What do you think?