Nicole Weidauer

As a real estate agent, I wear the hat that helps people buy and sell their most important investments. I also wear the hat of CERT Emergency Worker for the city of Shoreline. As a community emergency worker, I know that it is so important to have a plan when dealing with the uncertain. Those plans can save your life and your most vital assets.

Residents of the Pacific Northwest know that our fall and winters can be pretty bad. Just this morning there were multiple accidents and incidents relating to the rain and bad weather. We must have a plan for the unexpected so if, heaven forbid, something does happen, you will be prepared!

I get frequent updated and articles relating to the topic of emergency preparedness. The article below has tons of great information and tips to get you and your family prepared for the storms and extreme winter weather.

Get Prepared & Be Safe!

Camp Murray, Wash. - Forecasts for stormy weather in the coming days mean it is time for action to prepare for winds, rain and floods.

"Fall is our stormy time of year, and a few preparedness steps now can make a big difference in protecting your home and family," said Jim Mullen, director, Washington Emergency Management Division, Washington Military Department.

Mullen said one huge preparedness step home- and business-owners can take is to clean out gutters and street drains which could clog with leaves and create urban flooding problems. "You'd be amazed," he said, "how this simple step will keep traffic moving through your neighborhood and free up city crews to focus on other pressure points."

Other preparedness tips:

· Listen to your radio or television for winter storm forecasts and other information.

· Check on your disaster preparedness kit to ensure it contains food, light sticks, water, flashlights, a battery-powered radio and a wind-up clock.

· Know how to safely use a generator so it will not create a dangerous indoor carbon monoxide buildup.

· Never burn charcoal or use a generator indoors or in carport.

· Stay away from downed power lines.

· Call 9-1-1 only for emergencies. Dial 2-1-1 for other information.

Preparing to drive in heavy rains:

· Equip your vehicle with all-season tires.

· Fill your gas tank before stormy weather hits.

· Dress to keep warm and dry if you become stranded and have to walk.

· Allow extra time to reach your destination.

· Take routes that avoid low-lying roads that may be underwater.

· Follow official emergency evacuation routes.

· Do not go around "Road Closed" barriers.

· Do not drive or walk through standing water.

· If you vehicle stalls in floodwater, get out quickly and move to higher ground.

Additional preparedness information can be found at the Washington Emergency Management Division's (WEMD) Web site at http://emd.wa.gov. You also may contact Rosanne Garrand, WEMD public education program coordinator, (253) 512-7419.

Whether you are looking to buy or trying to sell.. we all end up dealing with a rental situation. I remember my first place. It was a 450 square foot, Lake City area rental. It was very cozy to say the least :)

I have recently done some rental searches for some clients and found out some interesting information you might find interesting.

There are some homes in the Shoreline area going for between just under $200,000 to $275,000. I did some math and calculated that with a modest down payment of 5%, the monthly mortgage payments wouldn't be too much higher than the going rental rates. Right now, homes are going for near discount prices, and if you want to get in on all the opportunities, I'd say now is as good a time as any to look into it.

On the other hand, many Shoreline area home owners are opting to lease their homes rather than sell at a reduced price, and renters now have a bigger variety of homes to choose from.

In the last 6 months, 23 homes have been listed in the Northwest Multiple Listing Service (NWMLS) and rented for an average of $1,605/month.

The lowest active rental price is $1,195 for a 2 bedroom, 1000 sq. ft. home, and the highest is $2,600 for a 5 bedroom home. Most of these properties offer 12 month lease term, but most property owners are willing to negotiate on terms.

The Egerer & Weidauer team can help would-be sellers look at alternatives to current market conditions.

206.661.7256 www.jeremyandnicolesellhomes.com 360.990.4083

"The desire to do business hasn't gone away, but the heat has gone out of the market." -Gary Keller

"In a buyers market, sellers are often going through the five stages of grief; 1.) Denial, 2.) Anger, 3.) Bargaining, 4.) Depression, 5.) Acceptance. My job is to counsel them through it." - Martin Bouma, Ann Arbor, MI Realtor

A shift exposes and magnifies the classic real estate price conflict that has always existed: the asking price a seller wants versus the price a buyer is willing to pay. To illustrate this conflict and how the market determines who has the upper hand, I'll share this story:

At a bar exam three different would-be attorneys forget their pens. One asks a test proctor if he has an extra pen. He does, but only one. The first attorney says, "I'll give you a dollar for the pen." The second attorney chimes in, "I'll give you two dollars!" Then the third says, "Hey, I'll give you three!"... By the next time the bar exam is given, all the attorneys know not to forget a pen and all the test proctors have heard they should bring extras. This time only one attorney forgets and when he asks a proctor for a pen, the proctor answers, "Sure. I'll sell it to you for three dollars." Then another proctor jumps in and says, "I'll sell you one for two dollars." But before the attorney can pull out his billfold, a third proctor offers, "I'll sell you mine for just one dollar.

In a sellers' market, the power of pricing favors the seller and buyers will compete for a limited supply. This shift means the power is now in favor of the buyer and that sellers will compete to attract the limited supply of buyers. Our goal in representing a seller in a shift is to use pricing to empower them as much as possible. And that's not easy.

"Just a year ago, buyers would get into bidding wars, giving up stipulations such as inspections. But it's the buyers' turn now. Now sellers are making the deals and doing whatever they have to do to sell their home. 'You're always looking for some kind of edge that's going to take you beyond what your competition is going to be,' said Reba Haas, realtor." (http://www.king5.com/localnews/stories/NW_101607WABhome_sellers_LJ.17704167c.html)

The best marketing message a seller can send is: We're priced right and serious to sell. The first time someone sees a property is called the "window of opportunity" because it's the single best chance to create the impression that will sell the house. First impressions are the original pictures framed in the mind and heart- they are usually lasting ones. Make sure your home is giving the right impression.

I have talked about the 80/20 rule before and I am going to re-visit that idea again here. Your home must be in the best 20% of existing homes on the market in terms of price and condition. If you're to become true sellers then you're going to need competent professional guidance to price their homes to selling the desired time frame.

You only get one chance to make a good first impression. Making the wrong impression will cost a seller time and money. You must outthink the other sellers that you are competing against. Don't chase the market. My job as your agent is to not only make observations on the current market, but I must forecast what is to come and where the market is going based on past trends and statistics. As illustrated by the figure below,

If sellers fall behind the market with falling home values, they can end up chasing the market down, because home values are always falling faster than their price reductions.

The Egerer & Weidauer team knows real estate and our services are invaluable to providing the best home-buying and selling experience possible for our clients. Give us a call- we would love to help!

206.661.7256 www.jeremyandnicolesellhomes.com 360.990.4083

The cats out of the bag- our market has shifted. So have home loans and the way people select their mortgages.

David Berson, Chief Economist & Strategist of the PMI Group, put together a report about home loans and the many changes taking place due to the unprecedented turmoil in the housing and mortgage finance markets. He points out that there are 2 emerging trends in the purchasing of home loans;

1.) There are more government insured home loans being used to finance home purchases as compared to conventional loans that used to dominate the market,

2.) And instead of adjustable rate mortgages (ARMs), home owners and buyers are now moving towards fixed rate mortgages.

"The move toward government-insured loans- those issued by the Federal Housing Administration (FHA) or the Veteran's Administration (VA) - in large part represents a shift from jumbo, subprime, and Alt-A loans, which were primarily ARM markets."

The report also included what they call, the PMI's U.S. Market Risk Index. The index measures the likelihood of home price declines in two years for each of the nation's 381 metropolitan statistic areas and divisions (MSAs). The risk index uses economic, housing, and mortgage market factors (including home price appreciation, employment, affordability, excess housing supply, interest rates, and foreclosure activity) to determine these probabilities.

MSA's in Florida, California, Arizona, and Nevada continue to lead the nation in risk. The primary driver of the increased risk scores is the continued increase in foreclsore rates. California and Florida account for nearly 40% of all foreclosures in the nation and dominate the top 10 largest foreclosure MSA's (http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=4119&accnt=64847).

The risk index rates the above mentioned MSA's between 70 to 99% chance of price declines in the next 2 years. The Seattle/Bellevue/Everett MSA area is indicated to have minimal risk for home price declines with only a 2.3% chance.

The full report can read found on the PMI website, titled, 'Fall 2008 Economic and Real Estate Trends Report' in the bottom left corner. If you should have any questions about securing a home loan to purchase or refinance a home, call my good friend, Patrick Dunn @ 206.999.7284. He is a Certified Mortgage Planning Specialist and will take good care of your home loan needs!

In the last couple of weeks I have been inundated with news reports about Seattle being a primo place to buy and invest in real estate. Don't believe me.. look at the headlines;

"Seattle Real Estate Rated No. 1- Survey of metropolitan areas reveals best investment value here" - The Seattle P-I

"Top Ten Recession Proof Cities, Seattle #8 " - Forbes Magazine

"Seattle Makes List as Best Cities For Home Sellers" -Forbes Magazine

PriceWaterHouse Coopers and the Urban Land Institute conducted an annual study for the nation's top 10 regions. Among major metropolitan cities, Seattle's real estate is the best in the nation as a prospective investment.

Seattle is not without it's issues during this market shift. Housing in Seattle is slipping a bit and prices are falling, but the market is still rated a strong buy for apartments, with rents moving up, vacancies heading down, and a limited number of new projects.

Check out these stats-

Median Home Price: +1.2%

Unemployment: 4.3% (down from 4.5%)

Key Growth: Leisure and Hospitality, 4.1%; manufacturing, +2.6%

Though Seattle doesn't suffer from oversupply, inventory last year doubled to 1.8%, from 0.9%, which would be more problematic if 1.8% wasn't the eighth lowest rate in the country. Seattle will get a small boost from conforming loan adjustments, and trouble from the uptick in inventory will likely be mitigated by strong job growth (2.8%, sixth best in the nation) and a 42% decrease in new home construction.

People are realizing the great opportunities and investment potential that owning in Seattle poses to those who live and invest in our real estate. If you want to get in on the action- call the Egerer & Weidauer Team and we'd love to discuss the possibilities with you. If you aren't convinced now, then I will just have to keep posting the awesome stats and articles about our area to prove you otherwise!