TeamSchubel.com: April 2009

WORK LIFE
Big news again since the last time I wrote. DAD FIRED HIMSELF! The official announcement came a couple months ago so this is old news to many of you. Everyone should know that Dad is adjusting just fine into his new/old role of Agent!...However, he continues to help out in the managerial side of things. I am also happy to report that his stress level has decreased and he seems much more comfortable around the office in his casual dress attire as apposed to the manager suit everyday!
I’m also happy to report that our phones have been ringing off the hook with motivated buyers and sellers. We have multiple deals “in the cooker” that we will hopefully be able to get closed in the next month or two…
Short Sales = Long Process
I’ve been trying my hardest to talk positive about the real estate market whenever/wherever I can, especially with major media outlets. I’ve been lucky enough to be on the radio a couple times over the last couple months. KXL AM-750 has interviewed me a couple times on their morning news program about the current real estate market and the new Stimulus Plan. I was proud to go on air and spread the positive word about real estate. And I wasn’t lying!
I was also contacted by some producers from the show “My First Place” on HGTV that wanted to know if I had any good applicants for their show. Within 20 minutes I had a couple submit some information and the three of us did a casting tape a week later. A week after that we got a call congratulating us for making the cut, my friends (a newlywed couple) and I will be on TV in the months to come. As soon as we know when the air date will be, you will be sure to know.
A special thanks to those of you who voted for me “Best Realtor” on The Columbian’s “Best of Clark County 2009.” Because of you guys I received the 2nd most votes and am mentioned as a runner up! Yes, winning would have been sweeter but considering I sent out a mass email asking, begging for you to vote with 2 DAYS left in the voting I am very grateful to have placed #2. Especially considering the small timeframe, I am deeply grateful and appreciative that so many of you jumped right on the chance to vote for me as “Best Realtor.” And with a heavily biased response, I think you’re right!

WHAT'S NEW WITH KEVIN?
Big news this edition, I have a wonderful new girlfriend! Shortly after my last newsletter I started dating Lacey Hamerin (aka Lacey “Evans” from KXL’s morning radio show, how else did you think I got on the radio so much!?!?) Yes, she is the one that I climbed St Helens with and she kicked my butt up the mountain! Things are progressing very very well and we even made the decision to move in together. Scary! Unfortunately for both grandmas there is still no plan in sight for another family wedding or great grandchild!
I know I’ve mentioned it a couple times but I will finally be remodeling my master bathroom. That means the last of the salmon pink that my house was covered in from top to bottom will be replaced. Thank the lord!
Other than that, I have been sneaking in an occasional motorcycle ride every now and then (again, sorry mom/grandmas) and keep hoping for the warming, dryer weather to stick around. Dad vowed to spend more time riding this year now that he shed the role of “Big Boss Man” so hopefully we can get in some good rides this Summer.
Dad and I have also had enough free time around the office to hunt for boats on Craigslist. My sales skills have been put to the ultimate test trying to convince Mom and Dad to buy a boat that Scott and I would like instead of a cheaper boat that would suit them just fine. So far “more quality family time” and “less debt” for either of their sons have been my best angles. I’ll keep the pressure on and hopefully sooner or later we’ll have some great “family” pictures from sunny days on the lake/river. Fingers crossed!

MARKET TALK
Short and sweet, it’s still a great time to buy and a tough time to sell. Period. However, as you can see I have a lot of paper left so I need to fill it up somehow. We have actually seen signs of the market turning around. The average sales price for property in Clark County actually increased from January to February and our office also sold more property in Feb ‘09 as we did in Feb ‘08.
There are still many people that are scared to “jump off the fence” and buy right now because of the economy. In my opinion, prices are about as low as they will go, interest rates might be as low as any of us will ever see in a buyers market like this, and the government is offering some great incentives for first time buyers! If you haven’t already heard, the government is now offering an $8,000 tax credit to “first time buyers.” (First time buyers are considered anyone who hasn’t owned a home in the last 3 years.) The $8,000 does not need to be repaid unless the property is sold within 3 years. This credit is applied to your refund at the end of the year so it’s fairly easy to get cold hard cash!!! This will, and already has, sparked the real estate market. The credit is only good for homes purchased before December 1, 2009 so if you can, plan to buy this year and not next.
I also have some food for thought for anyone that is still contemplating buying right now or waiting for things to “Hit the Bottom.” Those people waiting to buy at the absolute bottom of the market rarely buy at the right time. Typically, by the time we know we hit the bottom, we’re already on the upswing out of it and they miss out. Also, waiting is a risk. Will interest rates still be insanely low “at the bottom?” Will the perfect house for you still be on the market “at the bottom?” Even if prices do drop a little more, it won’t be much, maybe 3-5% at most, ask yourself this. Will you really save that much money if you wait 8-12 more months to possibly save $10-15,000? I would argue no. Even if the interests rates were the same in a year from now, you’ve missed out on 8-12 months worth of tax deductible mortgage payments (easily $1000 or more depending on the loan amount). People that are buying now will get their “Better Deal” when taxes come around and they a huge amount of deductions.
If all of this isn’t enough motivation to buy, how about interest rates at 52 year lows!?! As I write this on the 24th of April, interest rates are at 4.625% on a 30 year fixed mortgage. Although, walking into your local bank and getting approved for a loan isn’t as easy as it used to be. You actually have to be able to qualify for a home loan now, go figure! Don’t let me scare you into thinking it’s too hard to get a loan though. It’s fairly simple, if you can truly afford a mortgage right now, you can qualify and you can buy. As you can imagine, banks are scared of more of their loans defaulting and going into foreclosure. The inventory, the deals, and the interest rates make right now an exceptional time to purchase real estate!
Don’t worry sellers, you haven’t been forgotten about. Selling is sounding a little more possible now that the market is turning around slightly. There’s still a ton of “distressed” inventory which is bringing your values down but selling is definitely still a viable option. I know I’ve said it before but look at it this way. Selling your home for less than you think it’s worth is still worth it to buy a new property for much much less that it’s probably worth. I know selling your current home for $25,000 less than it was worth a couple years ago doesn’t sound appealing but when you can buy another house for $100,000 less than you could a couple years ago, it will help lessen the blow! Also, agents and buyers are getting tired of waiting on the banks response on Short Sale listings. Your home could be very enticing to some buyers if closing in 30 days is a possibility!

If you’ve been thinking about buying you might want to motivate yourself a little bit more because things are selling….and selling pretty quick! With interest rates well under 5% and the introduction of the $8,000 tax credit to anyone that hasn’t owned a home in the last 3 years, the real estate market in Clark County, Washington has picked up a bit. Don’t believe me? Our inventory in January was 21 months, in February it was 18.6 months, the March numbers were just released and our current inventory is 11.6 months! There were 100+ more homes sold last month than the month before.

Also, I have no solid stats to back this up but the “good deals” that we have been following over the last couple months are all going pending or already sold now. Don’t get me wrong, there is still a lot of property for sale right now but a majority of what I would consider good deals are what is being purchased. Time to get motivated!

If you’ve been wanting to sell but don’t absolutely have to it might also be a time to seriously think about taking advantage of this slight jumpstart in the market. There is still an overwhelming amount of “distressed” (Short Sale & Foreclosure) properties on the market to deal with but more and more agents and buyers stray away from the headaches that follow distressed property. No one likes to wait for months just to know if an offer was accepted or not and with short sales that is the timeline. All of a sudden being able to close on a house and move-in in 30-45 days is a big positive for buyers.

If you’re even a bit interested in selling your home, feel free to contact Dad or myself and we’d be happy to do a Comparative Market Analysis for you to let you know what your property is currently worth.

Kevin Schubel

RE/MAX equity group, inc

360-936-7277

Kevin.Schubel@gmail.com