Leavenworth Real Estate

Shopping for Leavenworth Insurance: Tips from a Pro

The following is a guest post from Eric Kossian of Leavenworth Insurance

Home insurance pricing is affected by a number of factors; I will try to discuss in order of importance, with those factors that affect the rate the most listed 1st.

Credit Score: a good credit score will give you up to a 50% discount because it is the single biggest statistical determinate for future claims.

Size of the Home: a mansion will cost more than a bungalow.

Location of the Home: Is the home within 5 miles of a fire station and if so, what is the quality rating of that station. For example, a home in Seattle is a class 2 whereas a home in a small town is usually a 4 to a 6 rating. The higher the rating the higher the premium. Homes without hydrants within 1000 ft or outside the fire district 5 mile limit will pay significantly more. Location also determines if the home is in a flood zone and how severe the flood risk is. I would think very seriously before buying a home in a 100 year flood zone as a flood will severely disrupt your life for at least 6 mo. and you will be required to pay flood insurance (the Federal subsidy of which is getting smaller and smaller) which is expensive because it is a known loss waiting to happen.

Condition of the Home: If the home has any one or more of these items: pressurized pipe that is galvanized metal, has electrical that has not been completely updated to romex wiring and at least a 100 amp breaker panel ( no knob and tube or cloth wires), a roof that is not in good condition or over 25 years old, the home is not on a cement perimeter foundation, or the home is not in good upkeep, then you will pay 2-3 times the premium and likely be in a secondary insurance market that is not as well regulated and the coverage will not be as broad.

Prior Claims at the Home: You may be just buying the home but if the previous owner had insurance claims in the last 5 years, you will likely pay more for a few years.

Which Insurance Company You Select: Believe it or not, there really is big differences in prices between insurance carriers for home insurance, with a price swing of about 30% for a preferred home. Even more importantly, unlike car insurance which has pretty much the same coverage no matter the insurance carrier chosen, coverage on homes varies greatly so be sure to ask for Guaranteed Replacement Cost, Comprehensive Perils, Ordinance and Law Coverage, Back Up of Sewer and Drain Coverage and Additional Living Expense of at least 25%. You won’t necessarily pay more for these due to all other factors listed above but you’ll certainly save many thousands if you have a claim and have these options.

A Educated Insurance Agent: If they don’t know what the options are in the above paragraph are or if they don’t seem to really be shopping for you, then move on to a different agent. In the real estate arena, a good real estate agent, good mortgage broker and good insurance agent are worth taking the time to find.

Eric Kossian, Wash. State Insurance Agent

Underwriting Specialist

Leavenworth Insurance

InsurePro

Ph: 509-548-5488

Ph. Toll Free: 1-877-548-5488

NEW TOLL FREE FAX # 1-888-548-6592

[email protected]

[email protected]

Zillow Brings Zestimates to Leavenworth

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Last week Zillow, the online real estate portal, announced that they had done some big changes to their database.

 We added Zestimates to more than 25 million new homes, bringing the number of homes on Zillow with data, Zestimates and Rent Zestimates to approximately 100 million. That’s more than three-quarters of all homes in the country. We improved the algorithm models that better incorporate user-submitted data and market data. This has improved the Zestimate median margin of error to 8.5 percent nationwide. Previously, it was 12.7 percent.

As was expected, home value estimates (called “zestimates”) changed in some parts of the country and they weren’t always accurate.

Zillow explains how they derive these Zestimates:

We compute this figure by taking zillions of data points – much of this data is public – and entering them into a formula. This formula is built using what our statisticians call “a proprietary algorithm” – big words for “secret formula.”  Currently, we have data, Zestimates and Rent Zestimates on approximately 100 million homes on Zillow.

For years, I’ve just been a spectator when it comes to the much debated Zestimates because Chelan County and Leavenworth haven’t been given zestimates in the past. The online data needed from the Chelan County Assessors office and/ or sold data from local Multiple Listing Services wasn’t available to help Zillow with their zestimates.

Until now..

How did Zillow do? I’d probably give them an F. I could give them a D or D- for trying but I think almost any observer could tell that the data isn’t very good.

My first example is a listing I have for sale. It’s a condo at Alpine Place  off Icicle Road.

Zillow has always had a problem with duplicate listings, but it’s funny when THE SAME HOUSE gets two different zestimates. (It must be the quarter bath?)

Next up, I decided to spot check some listings. What better place than to look at houses that recently sold.

This is public data and these are houses that have closed, recorded with the county and many of them were financed by a bank and appraised. I used the last 10 home sales in Leavenworth that Zillow has data for.

Sold Price $700,000 Zestimate $246,400

Sold Price $213,000 Zestimate $157,600

Sold Price $205,00 Zestimate $56,000

Sold Price $230,000  Zestimate $162,700

Sold Price $609,500 Zestimate $260,200

Sold Price $165,000 Zestimate $185,700 

Sold Price $330,000 Zestimate $209,000

Sold Price $280,000 Zestimate 170,000

Sold Price $225,000 Zestimate $127,100

Sold Price $207,000 Zestimate $85,000

So what do you think? Is Zillow a credible source for info on the value of your home?

Would you use Zillow to help price your home for sale or to help you decide how much to offer on a house 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.

Leavenworth Real Estate | Sold Homes May 2011

 

This month in Leavenworth four homes sold.

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17994 River Road, Leavenworth

List price: $249,000.  Sold price: $219,000.

Days on Market: 157

0 bedrooms | 1 bath | 1400 sqft | 2 acres

This home is a garage converted in to living space with a large sleeping loft.  The acreage is a nice flat parcel.  The property also has a 4-bedroom septic already installed.

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12204 West Shugart Flats Road, Leavenworth

List price: $230,000.  Sold price: $205,000.

Days on Market: 496

1 bedrooms | 1 bath | 544 sqft | 1 acre

Rustic cabin on the banks of the Chiwawa River.  This home originally came on the market in 2009 for $269,000.

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3025 Memory Lane, Leavenworth

List price: $259,000.  Sold price: $230,000.

Days on Market: 295

3 bedrooms | 2 bath | 1800 sqft | .25 acre

A cute cabin in the Pine River Ranch neighborhood.  The main structure of this home is an A-Frame with additional bedrooms and living space added on to the side.

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16035 River Road, Leavenworth

List price: $499,000.  Sold price: $363,000.

Days on Market: 555

2 bedrooms | 1 bath | 1288 sqft | 1.82 acre

A small cabin on two lots on the Wenatchee River.  One lot is .88 acre and the other is .94 ascre.  Both have 100 ft of water frontage.

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More Leavenworth Real Estate Info

• Click Here to See Leavenworth Sold Homes for April 2011
• Click Here to See Cashmere Sold Homes for May 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.

Cashmere Real Estate | Sold Homes May 2011

 

In May only one home sold in Cashmere.

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3850 Majeska Lane, Cashmere

List price: $380,000.  Sold price: $295,000.

Days on Market:905

3 bedrooms | 2.50 bath | 2662 sqft | 1.25 acre

This home is just east of Cashmere in a neighborhood off of Hwy 2.  This home backs to the highway and originally came on the market in 2008 for $485,000.

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More Leavenworth and Cashmere Real Estate Info

• Click Here to See Cashmere Sold Homes for April 2010
• Click Here to See Leavenworth Sold Homes for May 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.

Previewing Leavenworth Houses: The Life of a Leavenworth Real Estate Agent

I thought it would be fun to start a new series of posts I’m tentatively calling The Life of a Leavenworth Real Estate Agent. I realize that most folks don’t see a lot of the behind the scenes work that we do throughout the week, so here’s a peek.

Previewing Houses

We don’t make it every week, but Allyson and I try to go preview on a regular basis.  From comments that other agents have made, I think it’s clear that we tend to preview more homes than any other agents in the Leavenworth area.

What is previewing?

Previewing is touring a house without clients.  We are generally looking for three things.

• Location
• Condition
• Price

These are the same things our clients are looking for.  We are looking for all the things that are missing when you look at a home on the internet or the listing sheet.

• What are the neighbors like?
• How close to the road is it?
• How is the view? Which rooms can you see it from?
• Does the floor plan make sense?
• Are the rooms generously sized?
• How is the natural light?
• What’s missing in the photos? Train tracks? Power lines? Highway noise?

After we look at a house we have a two part discussion. The first is about price.

• Is the house priced well?
• What should the price be?
• How does it compare in price to similar homes for sale in Leavenworth?
• How does it compare to recently sold homes in Leavenworth?

If it is priced well, we ask ourselves if it will meet the needs of any of our current buyer clients. We may also decide to share it with those folks signed up to receive our Deal of the Week emails. 

Why Preview Houses?

Previewing is probably one of the most important things an agent can do. It’s how we become experts in the market. Surprisingly, most agents do very little of it.

We preview homes in Leavenworth to help our buyer clients use their time more efficiently. Most of our buyers are from western Washington and it is a two hour drive to Leavenworth.  Most home buyers would prefer to see homes that fit their needs and not wade through a long list of junk. Previewing helps us filter the list for our clients.

Do have a question about a home in Leavenworth that you have seen on the internet? There is a good chance we have been in the home and can answer questions you may have.

We also preview homes so that we can effectively price our listings.  Home prices should be based on recent comparable sales in the area. If we haven’t been in the homes that we are using as comparables, how do we really know how well they compare?