Nicole Weidauer

Residents of the Pacific Northwest and myself are lucky we live in an area that did not feel the pain of this shift as much as other parts of the country. The economic infrastructure in Seattle, WA is not dependent on tourism, high priced items like cars (for instance), etc. We have a strong economy here and our market held strong.

Places like California and Florida, where much of the local revenue comes from tourism, have been hit hard by large amounts of foreclosures. Of the percentage of foreclosures occurring nationally, 40%, are in California and Florida. That's almost half in 2 states alone! Those that live in areas dominated by financial companies or car makers, two sectors shedding jobs in this downturn, they too are experiencing the brunt of the shift. "If the economic turmoil continues, vacation destinations like Las Vegas or Orlando could suffer a drop-off in business that would leave prospective buyers with less in their pockets" (http://money.cnn.com/2008/09/19/real_estate/afford_myhome.moneymag/index.htm?postversion=2008092410).

Once the inventory starts selling in those areas, their markets will start to get to a place of normalcy. Here in Seattle, we are doing the same. Again, Seattlites all around should be grateful to the strong market we still have today, despite all the talking heads and the doom and gloom we hear every night.

Call the Egerer & Weidauer Team to discuss what is going on in your neighborhood and how our team can help you buy or sell your greatest investment at the most profit to you!

Jeremy Egerer 360.990.4083 www.jeremyandnicolesellhomes.com Nicole Weidauer 206.661.7256

Please disregard what you hear from the news reporter of your choice- they don't have the facts about what is really going on in YOUR market.

The fact is, Washington is doing great compared to the rest of the country. We may have to deal with a few issues in our national economy but besides that, take pleasure in knowing that we are doing well in the Pacific Northwest.

The Washington State University's Center for Real Estate Research put out a report about the status of real estate in our state. Here are some of the highlights:

*Their key message- The Washington real estate market is a stable and an excellent investment that you get to live in!

*The fact about foreclosures in WA- The foreclosure rates are the same as they were 10 years ago. Fewer than one percent of mortgages end in default in Washington state. As of mid-June, sub-prime, adjustable-rate loans represented 20 percent of loans nationally, but just 6 percent of home loans in Washington.

*The market is strong- Home appreciation in Washington continues to out-perform the rest of the nation with year-to-year price increases every quarter since the spring of 1995.

*The market is stable- Home prices in Washington have increased an average of 8.1 percent since the same time last year. Many counties, however, have experienced price hikes much higher: Chelan 29.8 percent, Okanogan 24.5 percent, Douglas 22.2 percent, and Lewis 19.3 percent.

If you want to get some more real real estate news, call the Egerer & Weidauer Team and we can give you a full neighborhood analysis and market report.

Jeremy 360.990.4083 www.jeremyandnicolesellhomes.com Nicole 206.661.7256

Like the twister that wreaked havoc on the Gale family farm in 'The Wizard of Oz', this financial and housing storm, will soon pass too.

We are in the middle of one of the worst financial crises in a long time! But based on what's happened in our history, we know that this too shall pass. It's not going to be easy and it's going to take a lot of work to get us out of this. One thing is for sure, we need to stop focusing on the storm and instead get about the daily business of getting homes sold!

I've been raving about the new Gary Keller book, Shift, to everyone I can, because it has so many gems I just can't keep to myself! Here is one that really hits home, "There are three types of people who emerge when a market shifts. First, those that fearfully predict the worst and are unnecessarily pessimistic; second, those who hopefully wish for the best, believe they can't fail and are unrealistically positive; and, third, those who respect the fact that they might fail, actively prepare for the worst and strive for the best. These are the resourcefully realistic and are always the timely triumphant. They are matter-of-fact about the market and sensible about their situation. They see things as they are and openly acknowledge how they're doing. At the same time they stay optimistic about their opportunities" (http://millionairesystems.com/msys/shift.html).

This economic 'storm' we are going through is teaching agents and clients alike about how to be resilient in the face of adversity. We need to have the brains, to learn about our local market stats and how best to meet your housing needs, the heart, to let yourself discover the motivations and 'big why' for moving, and, the courage, to look past the pessimistic headlines and know that you are getting sound, professional advice. Because, just like Dorothy said, 'There's no place like home.'

...that is when to buy!

Here is a blog from a fellow Active Rain-er from South Carolina. She says that if you are in the position to, that now is the time to invest in this real estate market and make a pretty penny doing so.

"BUY REAL ESTATE NOW!!! By: Mirela Monte, Your Myrtle Beach Connection"

'Burger King did it, and so did many others. It seems like a good strategy: watch what the big boys are doing and just copy them to ensure success.

Just what are the big boys doing right now? I don't know about your clients, but my investors are gobbling up properties like they are going out of style.

I know that my market is different; I mean, God does not create any more Beach, but I think this investor MO applies across the board. Here is the point of view of one of our biggest players, R. Donohue Peebles, the head of the Peebles Corporation, a Coral Gables, FL based real estate investment and development firm with a $4 billion portfolio. His latest book is "The Peebles Path to Real Estate Wealth: "How to Make Money in Any Market" (John Wiley & Sons: 2008). This interview was featured on the first page of the Real Estate section of the Wall Street Journal today. To read the entire article, please go to: http://online.wsj.com/article/SB122183189764556723.html

Q: How will the financial upheavals of the past week affect the market? Does it still make sense for the average investor to buy residential real estate?

A: It's a tremendous buying opportunity. Unless you need liquidity, real estate is the best long-term investment. I like the great leverage it gives you. You can live in it. And at some price, you can always rent it out.

Q: Under the current scenario, should you liquidate stocks to invest in real estate?

A: I have no money in the stock market. It's too volatile, and it hasn't had a leveling. If you have patient money, real estate gives you the ability to ride out bad times.

Q: How long do you think the current downturn in real estate will last?

A: I think it will bottom out in 2009 or 2010. There will be more job losses and increased inventory that will further depress home prices.

Q: What's the best way to negotiate a price?

A: Start out 10% to 15% below what you want to pay. That way, you'll be able to negotiate for two or three rounds without going over your limit. Don't let your emotions rule you. If you don't have a deal, walk away.

Q: What's the best way to ensure that you don't overpay?

A: You've got to look at what's selling, what other [properties] have listed for, who are the sellers. For instance, in Las Vegas, the sales volume is up, but they are short sales and foreclosures, so you know sellers will make a deal...[in general] if you can buy at what the price was in 2001 or 2002, that's a safe place to be.

Q: What's the biggest mistake buyers can make in this market?

A: Becoming too focused on being victims, rather than being opportunistic. There will be a lot of people making a lot of money during this downturn. You need to think: Why not me?'

If it makes sense to you and your financial situation, why not invest in your future? Home prices are the lowest they've been in years, across the country. We can all agree that the market will shift back up, eventually. These prices won't last long when that shift does happen. The minute sellers don't have to pay sellers concessions- believe me, they won't! Take advantage of the situation we are in today. The housing market has seen its share of blood, recently, and now is the time to take advantage!

If buying or selling now is not an option for you- now is still the time to put yourself into a good position for later. I've said it before, home-ownership doesn't make sense for everyone if they are not financially ready for it. If you don't have strong footing financially, then use this time to improve your own financial position and get ready for the day when you will be ready for home-ownership!

Some key advice for my readers during these often turbulent times; 1.) BUY NOW, 2.) if you can't then prepare to accomplish that goal in the future, and 3.) Don't panic- I'm in the market everyday, touring, searching the MLS, and reading all the financial news articles. When I see great values for my customers- I let them know!

In order to sell your home in the shortest amount of time for the highest profit, you have to prepare your home to appeal to the largest section of the public. That sounds like common sense but some sellers just don't get it. Especially in this market, where you need to stand out from the crowd to sell, and sell fast, preparing your home is essential!

Smart sellers know that buyers need a little help envisioning themselves living in the home, and they work hard to show the home in it's best light. If they don't outshine the competition, the house could sit months without showings and possibly be rejected by the market. The price of the home and the condition must match and staging helps you make it so.

'Beauty is in the eye of the beholder' rings true when it comes to selling a home that has all the improvments the seller's once made to the property, and rightly so. After all, they've spent lots of time and money into making it their dream home with all of their favorite stuff. But the moment the home goes on the market, the seller's personal tastes go out the window. They must clean it up, fix it up and start packing. It needs to show like a new model home. It's time to prepare the home for the buyers eyes and appeal to the largest segment of possible buyers.

A fellow Active-Rain agent out of Summerville, SC, Michele Reneau, wrote "(A) house has to be immaculate...to really compete, you have to have some nice upgrades or features they can't get anywhere else. The biggest competitor is new construction. If your home doesn't look like a model, guess which house the buyer will choose" (http://activerain.com/blogs/mreneau).

There are 3 things that affect how homes are effectively sold; the location, condition & amenities, and marketing. You can't do anything about location, and it is your agents job to represent and market your property to the best of their ability, but it is YOUR responsibility to prepare your home for sale. The amenities and condition can and should be changed anytime a serious seller wants to sell. By making the necessary cost-effective improvements to your home, one of two things happens: 1.) the house becomes more valuable than the other comparables, and 2.) the house gets moved into a higher price range category where it becomes the lowest priced.

Straight out of the new KW book, Shift, comes an invaluable formula for preparing your home for sale in this market. They call it 'The 3P-2F Formula'.

3P's

1. Plantings

2. Paint

3, Pictures

2F's

1. Fixtures

2. Furnishings

Staging a house with this formula in mind follows timeless wisdom. First and foremost is to make it inviting. If items in the home don't add charm to the home then they need to be removed and stored for the seller's next home.

I get a weekly e-newsletter from FrontDoor.com that just put out an article that highlights some things that can be done to add value to your home from just $100 up to $5000. It doesn't have to cost you an arm and a leg- it just needs to get the job done of selling your house.

http://www.frontdoor.com/news/article/1233?nl=FD_v041_4

The truth that any seller must know is that in the end, pricing get you in the game- staging gets you the offer.

Give the Egerer & Weidauer Team and call and we can discuss the many ways we can help you effectively stage your home to get your home sold for top dollar!

Jeremy 360.990.4083 www.jeremyandnicolesellhomes.com Nicole 206.661.7256