Tuesday, February 27, 2007
Prowse & Company News - February 2007
Download the February Newsletter
Friday, February 23, 2007
Brenda Prowse Achieves Membership In Elite International Real Estate Network
Poulsbo, WA February 23, 2007 – Brenda Prowse, Broker of Prowse and Company in Poulsbo, was awarded the prestigious Certified International Property Specialist (CIPS) designation and joins a worldwide referral network of elite global real estate practitioners with expertise in working with international clients as well as immigrants. The CIPS Designation is awarded by the National Association of REALTORS® (NAR), which represents over 1,200,000 REALTORS® in the United States. Prowse will be formally recognized at the NAR’s Midyear Legislative Conference & Trade Expo in Washington, D.C. on May 17, 2007.
Members of the CIPS Network are crucial players in today’s global real estate market. The CIPS designation recognizes members who have achieved the necessary training and experience to work successfully with international clients and properties. To earn the CIPS designation, REALTORS® complete rigorous coursework devoted to learning cultural differences and international business practices. Designees must also prove achievement in international real estate transactions. Prowse joins a distinguished society of over 1600 real estate professionals throughout the world who have earned the CIPS designation. “This is a highly prestigious award in our industry,” said Jim Harris, CIPS, NAR International Operations Committee Chair. “Brenda Prowse is now established as an expert in international real estate.”
For more information on the CIPS designation, contact the National Association of REALTORS® Fax-on-Demand number, 1-800-354-2831 in the USA and Canada, or 1-732-544-2851 internationally or visit the CIPS Network website at http://www.realtor.org/international.
Sunday, February 18, 2007
Kitsap mid month real estate market update
Buyers - Don’t Say We Didn’t Warn You, We’re Seeing Multiple Offers Already!
by Jim Valentine, Buyer Agent for Prowse and Company
, 360-779-2888, ext 104, 888-842-0117
Also - The BIG Question Answered – Comparing asking price to actual sold price! I reveal the true percentage difference with a statistical chart directly from the ‘Agent Only’ NWMLS web site. PLUS, what percentage of homes sell in 30 days, 60 days, 120 days, etc.
I honestly thought my Blog article last month was going to offend people because it was so straightforward and blunt, apparently the investor information I provided touched a nerve because I received more positive feedback than ever before. A big thank you to everyone who complimented me on last month's article.
So what’s going on in the market now? Ever been to or watched a horse race on T.V.? What does the announcer say when the gates open and the horses start thundering down the track? Aaaaaaaand their off!!! Yep, it’s official, the winter lull is over and the market is starting to correct itself. Buyers who purchased in the last two months scooped up some very good deals. I can attest first hand that it was a true buyer's market, my apologies to the sellers who had to endure the aggressive negotiating (not really, I am a Buyer's Agent after all).
Still want a good deal? Don’t worry, there are tons of ‘price reductions’ happening daily in the NWMLS. However, homes being priced correctly at the time of listing are selling instantly, sometimes with multiple offers. In the past month two of our listings that were priced to sell were sold instantly with multiple offers and for thousands over the asking price. Yes, thousands. These sellers were smart and listened to what the market was telling us, and because of this, they both did very well. Would they have sold their homes if they priced them at the top of the market? They might have instead become stuck in the same rut as many other current sellers – starting with too high a price for the first 60 days, then price reduction, price reduction, and then getting beat up on an offer from a buyer working with an agent who understands the current market (me). After all the stress of pricing above the market and waiting for that special buyer who will pay a higher price, they may have ended up getting far less money than if they priced aggressively in the beginning. Plus the extra time on the market often adds up to a considerable expense. Moral of this example? Sellers should price their properties aggressively right now because buyers are very, very smart and understand the current market.
Here’s an industry secret for all the buyers out there. Getting a ‘good deal’ is not all about beating the seller up on asking price. I recently wrote a full price offer, but my buyer clients are still getting over $6,000 from the seller. How you may ask? Well, there are tricks and trade-offs, like asking for some of the closing costs to be paid, which you can use to buy down your loan %, pay the escrow fee, or even the appraisal. If you can get a couple grand for closing costs from a seller and put that towards buying down your loan %, just think how much money that will save you in the future. The difference between a loan at 6.35% and 6% for 30-years is a huge savings. Getting creative and looking past the asking price will allow buyers to aggressively target the home they want. After all, if you’re planning on getting a 30-year loan, bickering with a seller about a couple of grand on asking price is not going to make a dent on a daily basis. Not quibbling about a small price difference can save the deal and will be quickly recouped with the market expected to continue appreciating long term in our area.
Here are the current statistics for Subject To Inspection (STI) and Active Listings (comparing the number in mid February to the number in mid January). You'll recall that Subject to Inspection represents the number of newly signed around deals in the first 2 weeks of the month. STI is the best gauge for telling us when both a buyer and a seller have agreed upon an offer.
| Area | STI 2/15 | STI 1/15 | Active Listings 2/15 | Active Listings 1/15 |
|---|---|---|---|---|
| S. Kitsap W. of HWY 3 | 10 | 2 | 147 | 153 |
| S. Kitsap E. of HWY 3 | 6 | 5 | 102 | 90 |
| Port Orchard | ||||
| 20 | 14 | 138 | 150 | |
| Retsil/Manchester | 10 | 1 | 90 | 79 |
| Seabeck/Holly | 2 | 3 | 73 | 69 |
| Chico | 3 | 2 | 26 | 24 |
| Silverdale | 11 | 5 | 82 | 87 |
| W. Bremerton | 9 | 11 | 149 | 157 |
| E. Bremerton | 8 | 6 | 73 | 68 |
| E. Central Kitsap | 9 | 7 | 81 | 70 |
| Hansville | 3 | 0 | 20 | 21 |
| Kingston | 3 | 2 | 57 | 55 |
| Port Gamble | 0 | 1 | 16 | 13 |
| Lofall | 1 | 0 | 21 | 12 |
| Finn Hill | 2 | 1 | 47 | 44 |
| Poulsbo | 6 | 0 | 69 | 79 |
| Suquamish | 8 | 2 | 24 | 23 |
| Indianola | 2 | 0 | 25 | 24 |
| Bainbridge | 12 | 9 | 148 | 158 |
| Totals | 125 | 74 | 1388 | 1376 |
‘STI’ deals are up 51 units in just one month! Active listings are only up 22 units. Look how hot the Suquamish market is! Only 24 total listings but 8 homes have gone ‘STI’ already this month, that’s a 33% sales ratio when the countywide average is closer to 17%. And it looks like the southern half of Kitsap County is rockin’ n rollin’ too.
December’s APR was 6.226% on a 30 year and 5.999% on a 15-year loan, both conforming. January’s APR is 6.353% on a 30-year and 6.252% on a 15-year, both conforming. February’s APR is 6.353% on a 30-year and 6.252% on a 15-year, both conforming. Rates are holding steady. To check the daily rate you can contact your lender or preview web sites such as this one.
As promised, here’s the list price to actual sold price % difference. PLUS the % of homes selling in 30 days, 60 days, 120 days, etc.
These two charts are for SOLD residential homes in Kitsap County from January 1st, 2007 until today. Notice that only 18.3% of homes sell in less than 30 days, yet almost double that (33.8%) sell after 120 days and for only 2% less than if they had sold within 30 days. You’ll also see that the best time to negotiate on price is when homes are between 61 and 90 days on the market. Buyers here are getting the asking price down 3.3% on average. It doesn’t sound like much, so here’s an example – Negotiating 3% off a $300,000 home reduces the price by $9,000, that’s not too shabby.
The least expensive home sold in the county so far this year = $105,000, asking price was $109,000 and it sold the first day on the market. The most expensive home sold in the county so far this year = $2,825,000, asking price was $2,855,000 and it took 483 days to sell.
Okay, that’s enough for this mid-month market update. Enjoy the day!
Statistics not compiled or published by NWMLS
