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Does a 5 Piece Master Bath Increase A Home's Value?
You know what a 5 piece bath is, it has 5 pieces. These 5 pieces are easily (think Jack Nicholson) identifiable as a shower, bathtub, 2 sinks, and a toilet. The 5 piece master bath is expected in a certain style, age, and price range of a home in the Seattle eastside real estate market.
Here’s why I’m asking the question: My client and his wife are thinking of adding a wine cellar to their home. The only place a wine cellar would fit is in the main floor laundry room. The laundry would then need to move upstairs and be relocated to the master bath. The laundry could easily fit in the master bath in place of the soaking tub. I know it would be done well as everything these people do only adds quality and character to the home.
They bought a home built in the 1990’s that would be priced in today’s market for over $650,000. It’s a nice two story home with 4 bedrooms and 2.5 baths located in Bellevue. The master has a 5 piece bath, which is a typical feature of this caliber of home.
The home owners never use the soaking tub and think it’s wasted space. I hear this from a lot of buyers. The master bath looks more elegant with the tub, but the tub is rarely, if ever, used. I bet you know a lot people who don’t use their tubs, but take showers instead.
Master Bath Tub
Do you think a tub is needed for utility, looks, as an amenity?
Does it decrease the value of the home if there’s no tub in the master bath?
Would you choose to not buy a home of this caliber if there was no master bath tub?
Is it important for a home to keep the typical and expected features, such as 5 piece baths in a certain style of home?
What would you recommend? Would you suggest the home owners pursue this plan and add a wine cellar, take out the the soaking tub in the master bath and put the washer and dryer in its place?
I’m interested in hearing what you think. I’ll let you know what I think in another post. Stay tuned.
How Many Real Estate Sales Were On Seattle's Eastside in March, 2011?
Seattle Eastside Real Estate Sales Through March 2011
I see a trend happening in eastside real estate. The Seattle Times was wondering if there was a trend being established in Seattle area real estate. It’s happening on the eastside. This trend started in December of last year. Since that time, the number of homes selling each month has increased. Home sales have almost doubled from December’s 351 sales to March’s 657 sales. That’s a huge increase, a 47% increase in real estate sales! It sure sounds like an upward trend to me.
Match this news with the fact that the number of eastside homes for sale has only increased by 150 homes since December and there’s a good real estate market on the eastside. Last year, there almost 440 more homes for sale in March.
In March 2011, there were 2540 homes for sale and 657 had offers. The number 452 in the last column on the chart shows how many homes sold and closed that month. In order for these sales to close in March, the offers would have happened in January or February.
So far this year, we haven’t seen the number of homes for sale jump up by much. But if many more homes come on the market, the upward trend in home sales could slow down. An increase in the number of homes for sale could have an impact on how quickly homes sell.
Are you seeing more sold signs in your neighborhood?
The Seattle-Eastside Real Estate Market Is Better Than You Think!
Number of Properties for Sale in King County
It’s simple. Mix one part law of supply and demand; one part the more positive economy; and one part more ready, willing, and able buyers. Mix with more realistic pricing that meets the market demand. You now have the well priced homes selling and the most positive real estate market the eastside has had since mid 2007.
The supply of King homes and condos, the number of those for sale, is shown above. This week, near the end of the first quarter of 2011, there are about 2000 less homes and condos for sale in King County than last year at this time. This means there are 16% less homes and condos for sale. That’s a big difference. It’s noticeable in a lot of neighborhoods. It’s noticeable to a lot of buyers.
The eastside statistics mirror those in the county. There are pockets on the eastside where home sales are popping, because there are only a few really great homes that come on the market. I’ve seen this happen in different price ranges and different cities all over the eastside, including Bellevue, Kirkland, and Sammamish.
Seattle Eastside Residential Real Estate Sales Through February 2011
Supply is key to the more positive eastside real estate market. With less supply out there and more homes selling (other than March and April of 2010, which was the result of the tax credit) than any other month in a few years, this is a stronger real estate market.
With less supply, it’s a faster paced market. It’s happening in many eastside neighborhoods, but not all. It’s happening with some homes, but not all. With less to choose from, the better valued homes are selling more quickly. There are some great homes that I’ve previewed or shown over the last month and I can almost tell which homes will be sold inside of a week or two. Almost everyday we see the number of pending sales outstrip the number of new listings coming on the market. And yes, there are homes still sitting on the market for a long time, are distressed sales or homes that don’t sell. Despite this, there’s a big difference in the eastside real estate market.
Now I know you’re going to say this is not what you’re reading in the media. Here’s the latest real estate article in The Seattle Times continuing with the same doom and gloom report about the real estate market. From the this article:
In the Seattle metropolitan area, which includes King, Snohomish and Pierce counties, prices are back where they were in September 2004, according to Case-Shiller.
Two things to consider when evaluating the above statement. The first is Case-Shiller lumps King County statistics in with Pierce and Snohomish Counties. King County has a far more positive economy than the other two counties. Seattle and Bellevue, the economic hubs of the region are both in King County. The number of distressed properties is much smaller in King County than elsewhere in the region.
The second thing to remember is Case-Shiller is reporting on the past few months, not what’s happening in the market today.
I agree with Case-Shiller regarding home values, although home values may not be quite as low as 2004 pricing in some areas. Prices are down and probably will stay at these levels for a while. I don’t anticipate prices going up any time soon.
But I do see a stronger market in many eastside neighborhoods. People are ready to move on, literally, and they’re tired of waiting. Buyers are ready to buy and more sellers are pricing their homes to meet the current market demand. All in all, right now the Seattle-eastside has the best real estate market it’s had since 2007. It’s not the old real estate market of the past, but it’s a good, realistic market.
There Are Some "Hot" Real Estate Markets Around Seattle
There are some hot real estate markets in the Seattle area. These “red” hot areas are shown below. The usual suspects of Queen Anne and Capital Hill experienced a hot market in February. The newest suspect, East Bellevue and Redmond near Microsoft, my neck of the Seattle real estate market, was also going strong. In that area, 35% of the available homes sold last month, the best odds on the eastside. It’s exciting to see, since it’s been years since we’ve had “red” or a seller’s market on the eastside.*
I keep hearing about homes selling quickly and with multiple offers in a variety of price ranges. Since most of the eastside is a balanced real estate market,** this only happens for the best homes. It happens for the “red” hot homes with hot prices and in beautiful condition. There are number of other homes that take a while to sell, often with price reductions before getting the offer.
Hotter King & Snohomish County real estate markets 2-28-11
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What do the colors mean?
*Red means it’s a sellers’ market, a sellers’ advantage. Homes take less than 3 months to sell.
**Yellow means a balanced market between buyers and sellers. Homes on the average take 3-6 months to sell.
Green means it’s a buyers’ market. Homes take longer than 6 months to sell.
If you take each area as shown on the map and look to the area number on the side of the map, it will tell you how long it would take to sell every home currently for sale if no other home came up on the market in that area.
What do the 3 digit numbers on the map mean?
The map is divided into the numbered areas as defined by our Northwest Multiple Listing Service (NWMLS). Downtown Bellevue is area 520 and East Bellevue is area 530, as an example.
Can you see from the map how the real estate was doing in your city did last month? If you’d like more specific information for your neighborhood, please feel free to contact me.
There are Two Different Real Estate Markets on Seattle's Eastside
There are two different real estate markets on Seattle’s eastside. I didn’t make this up. I heard this from several buyers at an open house this past weekend.
I held an open house at a home which I knew would attract buyers. It’s new on the market, shows fabulously, has little competition, and is in a great Kirkland location. I had this conversation with several different buyers, which prompted me to write this post. They told me there were a lot of homes sitting on the market and then there were the other homes. These are the great ones. The great ones sold quickly. Hence, there are two real estate markets out there on Seattle’ eastside.
Real Estate Market #1- This market is filled with the best homes. They’re priced well, show beautifully with minimal work needing to be done, and sell in less than a week. These are the homes where it makes sense to hold a public open house. Because the home shows so well, when the buyers find it online, they come specifically to see the home. They’re already excited before they come through the door. You get “real” buyers who are checking the house out as a potential buy, not just neighbors and “lookie loos.”
Real Estate Market #2 This market is filled with homes that are the good, and the not so good. They aren’t priced well or don’t show well. Most of these homes eventually sell, although some do not. When they do sell, it’s often after one or two price reductions. Distressed home sales, the homes that are short sales or bank owned properties, are part of this group of homes. But this market isn’t filled with just distressed sellers. It includes those homes which may not have been maintained well, are not updated, are overpriced or fit all of these labels. If a home doesn’t show well, have professional photos, and isn’t priced well, it will be part of real estate market #2.
If you want your home to be part of real estate market #1, prepare your home properly for sale. This means doing the updating you’ve wanted to do but never had time to get around to doing. Take out the blue flowered vinyl in your bath. Change your carpet so it’s no longer green. It means having your maintenance items done. Get your furnace serviced, the drainage issues resolved, your water heater checked, and your roof in good shape. Don’t go on the market until these items are done. Then make sure your home has professional photos, staging, a video, and a great price tag. There’s a very good chance your home will sell quickly, if it meets all these criteria.
Otherwise, your home will be in real estate market #2 and you’re going to have the “for sale” sign in your yard for a long time.
Despite what’s broadcast by the media, there are homes selling in a flash. Buyers are seeing this in the eastside real estate market. These homes fit real estate market #1. Buyers are in a great position to know what’s really happening with homes for sale because they’re out there on the eastside. They’re living it everyday as I’m doing. These buyers are in the real estate market trenches with me.
It’s too bad the media only reports on real estate market #2 and hasn’t gotten in the trenches with us to see the full picture.
How Many Real Estate Sales were on Seattle's Eastside in February 2011?
Seattle Eastside Residential Real Estate Sales Through February, 2011
Despite what the media is reporting, February Seattle-eastside real estate sales were the strongest we’ve seen in a very long time. If you look all the way back to December, 2009, there were more real estate sales in February than any other month, except March and April of last year. More homes sold last March and April because of the tax credit. However, this February’s higher sales numbers had nothing to do with a tax credit, but everything to do with buyers being more ready and willing to buy a home. In February there were 2446 homes for sale and 565 homes sold.
The other good news is the number of homes for sale last month was still low when compared to the other months shown on the chart. Because of this, there was a higher percentage of homes selling, 23% in fact.
So far this year, real estate sales on the eastside of Seattle are trending upward. Because of the strong economic base found in such eastside cities as Bellevue, Redmond, Kirkland, and Issaquah, I believe this trend will continue, at least for the near future.
If the number of homes for sale jumps up, it could have an impact on how quickly homes will sell. If we stay with lower levels of inventory, it should help the homes on the market sell more quickly. But if we end up with numbers like we often do in the summer when we have had 14000+ homes in King County on the market, sales will slow down.
Are you seeing more real estate sales in your neighborhood?
Top 7 Reasons Real Estate Sales Fail to Close
I’m gearing up to do monthly statistics on how the real estate market is doing on Seattle’s eastside. Every month I report on how many homes have sold and I also mention how many real estate sales have failed. Contracts on homes close all the time, but there’s always a certain number each month that don’t close. There are many reasons why this can happen.
Here are 7 of the top reasons home sales fail to close:
Buyer rejects the seller’s disclosure form. The disclosure form, form 17, is a 5 page document delivered to the buyer no later than 3 days after a purchase and sale agreement (the contract) is mutually agreed upon by both parties. The buyer has 3 business days to review the form. The disclosure form covers many issues about the home, including defects, remodeling, permits, whether the home is on septic or sewer and hooked up to public water or on a well. If the buyer disapproves of anything in the form, the buyer has the right to terminate the purchase and sale agreement.
The inspection falls through. Inspections fall through because there’s something structurally wrong with the house. The structural problem can’t be fixed, the seller refuses to fix it or the buyer no longer wants to buy the home because of the problem. Sometimes the repairs requested can be remedied, but the buyer and seller don’t come to agreement on which repairs will be done or how to do the repairs. The buyer can also terminate a contract based on the inspection without giving a reason to the seller.
The buyer walks over neighborhood review. Some offers include a clause giving the buyer an opportunity to check out schools, crime, views, and other neighborhood issues in the 3 business days after an offer is signed. If the buyer finds something they don’t like about the neighborhood, they can terminate the agreement and walk away.
Good old fashioned buyer’s remorse. Buyers get cold feet and decide not to buy the home. Buyers have the right to serve the seller a termination notice, get their earnest money returned, and continue to look for a home without giving the seller a specific reason. This can happen only during specific times outlined in the contract. For example, the buyer can simply terminate the contract during a neighborhood review or the review of the disclosure form.
A low appraisal on the home. The home sells for $500,000, but the bank appraiser says the home is only worth $485,000. The seller doesn’t agree to the lower purchase price to the appraisal price, so the buyer can choose not to buy the home.
Running up a credit card bill. The buyer buys a new car before closing the sale on the new house, running up a credit card bill. Incurring more debt before closing can mean the buyer no longer qualifies for the loan.
Death of a buyer or seller. I recently heard of this happening in a sale on the eastside. It happened during one of my closings a few years ago. The seller passed away during the closing period. Luckily, the heirs saw the sale through. Heirs can contest a sale if it’s in process.
It sounds pretty daunting when you read this list, but the reality is most months only 1 or 2% of the home sales fail to close. Clearly, the majority of homes that sell go all the way to the closing table.
By the way, each state has different contracts with different clauses, so what happens in Washington State real estate contracts stays in Washington State. This post is not legal advice. If you have questions or concerns about real estate contracts, you should consult an attorney.
What are some of the other reasons home purchases fail to close? There are many more reasons out there. Do you know of some unique situations that caused real estate sales to fail?
Seattle Economist's Predictions for the 2011 Real Estate Market, Part II
Matthew Gardner, of Gardner Economics, spoke at our annual Windermere Real Estate/East, Inc kick-off meeting today. Mr. Gardner shared his thoughts about the local economy and Seattle real estate. Here are some of the highlights:
- Seattle will recover more quickly than other parts of the west.
- Growth will be slow and from the center, Seattle, out to the suburbs.
- The private sector has increased job growth in the last 4-5 months and will continue to do so.
Private Sector Employment in the Seattle Area
- There will be more price corrections for those hi-rise condos that have not sold both in Seattle and Bellevue.
- Buyers are still looking for good deals and feel uncertainty remains.
- Prices are stable and, hopefully, will stay that way this year.
- Banks are not releasing all of the bank owned homes to sell. The banks would go bankrupt if they flooded the market with these homes, causing prices to drop.
- Mortgage rates will increase: over 5% this year, 6% in 2012, and 7% by 2014.
30 Year Fixed Mortgage Rate Predictions
Here’s a few of Mr. Gardner’s thoughts for 2011 from the first of the year.
What do you think? Is this what you see happening in the area and with real estate?
Seattle Eastside Real Estate: The Glass is Half Full, Not Half Empty
It’s time to accept the reality of the market in Seattle and on Seattle’s eastside. More than likely, it’s going to be the way it is for a few more years, with single digit appreciation after that.
It’s a more realistic market. It doesn’t mean it’s bad. It’s still challenging to sell a home, but it’s not impossible. Homes are selling everyday. There have been many successful sales and there will continue to be successful real estate sales in 2011. On Seattle’s eastside, 7310 homes sold last year. Short sales and foreclosures will still happen. Which, unfortunately, means there will be people who are suffering through these tougher, more realistic times. But the majority of sales on the eastside are not short or distressed sales.
If you are thinking of selling your home, it won’t happen overnight, but it can, and does, happen.
- 2010: 9,594 homes and condos were pending (received an offer from a buyer). There were 7310 firm sales.
- 2009: 8,842 homes were pending.
- 2008: 7419 homes were pending.
Right now in the Seattle area real estate market, most homes are selling in 3-6 months. This is the now the “normal” market time to sell a home. Some homes will sell very quickly depending on the local competition and the price and condition of the home, others will languish and maybe never sell. This will be the typical pattern we’ll see in Seattle area real estate sales for the near future.
Don’t put your home on the market unless you’re clear on the pricing, clear on what the market will bear. This is not a market where you can “try” a price and then come down. If you beat the competition to start, you’ll probably make more money in the long run. Too often, sellers have “tried” a higher price and ended up selling their home for far less.
Is it moving, making a lifestyle change, or the money that’s more important to you right now? If it’s the move that’s more important because you need more space, downsizing, relocating, etc., then plan to move and do it right. Get your home gleaming and ready for the market with a value added sticker price. Your home will need to outshine the competition with a pristine look and a “beat the competition” price. If you price your home right where all your competition is, your home may not stand out.
If more money than the current market will bear is more important, then maybe this isn’t the right time to sell. However, plan on staying put for 5 or even 7 years to realize some significant appreciation in your home’s value. But remember, if there’s only 3% appreciation over 5 years, that’s 15% more. Let’s say you have a home that is worth $500,000 in this market, in 5 years at 3% appreciation, it will be worth $515,000. A 5% increase is $25,000 to $525,000. The increase is nothing to sneeze at, but with 5-7 more years of wear and tear, there’s something that needs to be done with most every house. Any future appreciation should factor in some costs for maintenance and updating.
For those buying, home ownership has gone back to what it always has been, shelter, a place to hang your hat that you enjoy. It’s a lifestyle choice, not a banking machine or something where you can make a “killing.” If you decide to buy, and some of you won’t, then evaluate your home for how it fits your lifestyle. Pick a place to live that matches your wallet and that you enjoy. Pick a place with good access to amenities: schools, shopping, parks, economic centers and easy access to commuting services. When you sell your home in the future, the home will be in a better position, literally and figuratively, to capture any appreciation. The homes located close to conveniences will become increasingly more desirable in this decade.
The glass is “half full” in Seattle area real estate. The media will continue to talk about the “bad” real estate market, but the fact is, the people who need or want to move are still going forward with their plans. Home sellers will not see the appreciation of the past, but home buyers should be able to purchase a good value and a great home. Remember if you’re a seller who’ll be buying another home, you’ll have a great chance of making a great deal on your home purchase.
It wasn’t “perfect’ for buyers back when we all thought the real estate market was great. Many of today’s sellers need to think back to when they bought their home. Buyers often competed for the same home with other buyers and paid full or over full price. Now it’s not perfect for sellers.
Sellers have to be ready to meet the market. Buyers will be looking for the best value out there. That won’t change any time soon. This is our new “normal” market.
This is the “State of Real Estate.” Our glass is “half full” rather than “half empty.” We’re still doing better than most areas here in the Seattle area.
Is This The New "Normal" for Seattle Area Real Estate?
Maybe this is how real estate is going to be in the Seattle area. Maybe we’ll have some local markets where things are “hot” just for the buyer, and, someday again, even for the seller. But maybe the Seattle marketplace will be more balanced (yellow on the map below) between the buyers and the sellers. Maybe this is the new “normal” real estate market. The majority of homes will sell in 3-6 months, some will sell for full price, some homes will sell with a small price reduction, and some will even have multiple offers. Still others will undergo a number of price reductions before selling and some will not even get an offer.
Here’s what I wrote in my November post on the real estate market. I shared similar thoughts then, so I’m wondering if we’re starting to see a pattern here.
Does this mean it’s no longer a challenge to sell a home? Absolutely not. The competition is still very stiff. There are a lot of homes for buyers to buy. A market in which it takes homes 3-6 months to sell is still a challenging, but not a terrible, real estate market. In a balanced market, some homes sell quickly for a good price, others take a lot longer to sell with a steep discount in the the asking price, and still others don’t sell at all. I’m still going to be telling home sellers to have the best home out there and expect a sale to take a long time to happen. Homes that sell have to be a really good value to be the ones that sell. Believe it or not, this is pretty typical of a more balanced, realistic market. A realistic market is not a fast paced real estate market. A realistic market will have some distressed home sellers. Although this is a cause of major concern and I am not minimizing the situation for those who are distressed sellers, the majority of eastside homes are NOT distressed sales.
So maybe this is the new “normal”? What do you think?
The State Of Seattle Area Real Estate in December, 2010
- Seattle Area Real Estate 11-30-10
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What do the 3 digit numbers on the map mean?
The map is divided into the numbered areas as defined by our Northwest Multiple Listing Service (NWMLS). Downtown Bellevue is area 520 and East Bellevue is area 530, as an example.
What do the colors mean?
Red means it’s a sellers’ market, a sellers’ advantage. Homes take less than 3 months to sell.
Yellow means a balanced market between buyers and sellers. Homes on the average take 3-6 months to sell.
Green means it’s a buyers’ market. Homes take longer than 6 months to sell.
If you take each area as shown on the map and look to the area number on the side of the map, it will tell you how long it would take to sell every home currently for sale if no other home came up on the market in that area.
