Area Home Values Up Record 18.9 Percent

Despite a slowdown in the Olympia-area real estate market in recent months, the assessed value of the average home in Thurston County rose a record 18.9 percent this year over a year ago, according to assessments now being mailed to property owners.

"We live in a very desirable area, and the market is reflecting that," Assessor Patricia Costello told The Olympian. "Particularly with raw land and the waterfront, that type of property is not available much anymore, and demand is high."

Of course, some people wonder why the value of their property is going up even as the real estate market seems to have stalled. Writing in a local online discussion group, some local homeowners were sanguine, while others proposed a California Prop.-13 style limit on property taxes, freezing the taxable value at the price originally paid for the home. Others, like justin_time, protest that "this is a backdoor way to get a tax increase. ... I would also love to know what this tax increase is going to be used for. The county can justify this however they want, but for me it is a 46% tax increase."

Your thoughts?

Washington's Most Affordable Homes

Yes, location DOES matter. To the tune of $534,679.

That's the difference between the average sale price in Bellevue and the Tri-Cities, the Washington State cities with the most expensive and least expensive real estate, according to a new study of 2007 home prices.

Bellevue, just across Lake Washington from Seattle, weighed in with an average home sales price of $763,667, while homes in Central Washington's Tri-Cities (Kennewick, Pasco, & Richland) averaged $228,98.

Elsewhere, the study found that Beverly Hills, California, is the most expensive housing market in the nation (average price $2.21 million) and Killeen, Texas is the most affordable (average price $136,725).

The survey evaluated average selling prices for single-family houses of approximately 2,220 square feet with four bedrooms, two-and-a-half baths, a family room, and a two-car garage in 317 markets across the nation. The average sales price of all these subject homes was $422,343.

You can view the state-by-state results in an online slideshow.

Double Your Income...

...or don't think about trying to buy a home in Tacoma.

The typical prospective first-time buyer in Pierce County had just 56.3 percent, or $37,928, of the $67,368 annual income needed to purchase a house in the second quarter of 2007. That means the person would need nearly twice as much income to afford the mortgage on a starter home, said Glenn Crellin, director of the Washington Center for Real Estate Research at WSU. [The News Tribune]

The "good news" is that it's worse in Seattle.

Selling? Make Sure You Have a Marketing Plan

Only for the rare few sellers, simply placing a “For Sale” yard sign on the front lawn creates a line of traffic filled with potential buyers. If you want buyers to see your home, you’ve got to find them. The key is marketing. To get the most exposure for your home, you should have a marketing plan with clear objectives and specifically outlines the resources that will be used to reach potential buyers.

Each marketing plan should be designed around your property and capitalize on its most desirable features. Therefore, you need to be honest with your real estate professional about the condition of your home, and the final price you are willing to accept for your home.

Next, you need to determine what marketing options work best to reach your desired audience. Generally there are two audiences you are trying to reach—home buyers and other real estate professionals. Make sure the plan includes action steps on how each audience will be marketed to.

Seldom is the successful marketing of a property the result of a single activity. Your strategy should include a variety of marketing activities. Using only conventional marketing strategies such as Open Houses, newspaper ads and direct mail can limit your outreach. Most homebuyers now begin their home search online. Having a presence on your real estate professional’s Web site (such as www.prudentialolympiarealtors.com) and other portals such as Yahoo! Real Estate gives you worldwide exposure. Besides the increased exposure, online listings also allow buyers to get a sneak peek of your home. Therefore, you may want to complement the listings with plenty of photos and a virtual tour (example), which allows viewers to get a 360-degree preview of your home without leaving their computer.

Also, don’t forget the power of email. Sending email flyers or electronic postcard are easy and cost efficient. During your planning, your real estate professional may recommend other marketing tools such as company/broker tours and an Open House.

Work with your real estate professional to determine the best options for your market.

Besides identifying marketing tools, an effective marketing plan will also spell out specific dates for the marketing activities. It should leave room for unscheduled events such as following up with sales professionals or brokers who preview or show the home.

Make sure the marketing plan includes checkpoints, possibly at the 15-, 30- and 45-day marks, to review activity on the home and determine if changes need to be made to the marketing plan.

As the home seller, you should be kept in the loop on activity of your home. The marketing plan should state how you will be communicated with (mail, phone, email, in person) and the frequency (daily, weekly, etc.).

Of course these are just guidelines, but can give you an idea if the marketing plan your real estate professional has proposed to you has to be refined. You need to be comfortable with the marketing strategy for your home. An effective plan will not only put you at ease, but also give your home maximum exposure to increase your chances of a quick sell.

Prudential Olympia, REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

Seattle Real Estate: More Choices, Higher Prices

The Seattle Times reports on how housing prices have continued to rise even as inventory increases due to slower home sales.

King County buyers had 52 percent more houses and condominiums to choose from last month compared with the previous May — by far the biggest year-over-year increase this decade, including during the recession of 2001-02.

...

What hasn't dropped off was what buyers paid; prices continued their incongruous climb. The median price of a house in King County reached $469,000 in May. The median, which means half sell for more, half for less, has climbed every year since 1985.

Read the article: Local home sales cool off; why are prices still hot?