About Finding A Home
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Property Appreciation
Real estate appreciation refers to an increase in value of your home, and the land which it sits on. If your Olympia WA home "appreciates", you have greater equity against which to borrow, and you realize larger profits when you sell. Property values fluctuate all the time for many different reasons, so how do you know the home you are purchasing is going to appreciate in the coming years? By and large, the economy is the driving factor of real estate appreciation in the U.S. This would include interest rates, as well as the current unemployment rate, business growth in the area, housing supply, demand, and affordability.
Regional economic, and social, factors, can, also, affect real estate appreciation. Many homebuyers choose to live in areas with the best, and most convenient, features for households to thrive, such as a close proximity to schools, jobs, and commerce. A good school district often can be a factor in good home appreciation. It is thought that good schools will help foster lifestyles associated with high levels of attainment be it the individual, household, or community level. Demographics are, also, known to play a role in real estate appreciation. For example, during the 1980s, much of the baby boomer generation, (people born between 1946 - 1964), were buying real estate, causing houses to appreciate at a faster rate than inflation, and made Olympia WA real estate a profitable investment. The group referred to as Generation Y (people born roughly between 1980, and now) are the largest generation since the baby boomers. Their contribution to real estate is expected to be far greater than that of Generation X (people born between 1965, and 1979). There are some aspects that can significantly contribute to real estate appreciation, which you may want to ask your agent about when shopping for a home:
Recent sales:
Asking your buyers representative, or retrieving public records, on real estate sales in the neighborhood you wish to live in, can be very helpful. How many Olympia WA home sales have there been in the past year? What were the asking prices? Do the final sales exceed the asking prices?
Appreciation history
Have home prices gone up, or declined, over the past 5, to 10, years? Is the neighborhood, you are considering, desirable because of its location, amenities, or affordability?
Local business economy
Is there a good mixture of business, or does the area rely on just one industry? Have there been any new businesses that have moved into, or out of, the area? Is there a lot of new development nearby? Economic changes, such as a large factory going out of business, can dramatically affect demand for housing in a particular area. It is important to note, that while appreciation is nice to have, it should not be the reason you decide to buy a home in a particular area. Should you buy a home, in a rapidly appreciating area, there is no guarantee that its value will rise by the time you want to sell it. That's why it's best to pick a neighborhood, and a home, in an area that suits your own needs.
The Home Buyer Checklist identifies some of the important factors to keep in mind when choosing a home. In addition to an affordable sales price, you will, also, want to be sure that the neighborhood, and home, meet the needs of your family. Take this checklist along when you go shopping for your home. It will help you evaluate the Olympia WA neighborhoods, and assess the availability, and condition, of various features of up to three homes in a side-by-side comparison.
Property Address . . .
Asking Price $ ________________
Real Estate Taxes $ ______________
The Neighborhood
Close To Work . . .
Close To Schools . . .
Close To Shopping . . .
Close To Expressways . . .
Close To Public Transportation . . .
Close To Doctors / Dentists . . .
Close To Churches . . .
Garbage Collection . . .
Street Lights . . .
Sidewalks . . .
Streets / Alleys Well Taken Care Of . . .
Traffic Volume . . .
Parks . . .
Neighbor's Property Well Taken Care Of . . .
All Utilities Are In . . .
Neighborhood / Restrictions . . .
Close To Trains / Airports . . .
Area Zoned Residential . . .
Near Industry . . .
Proposed Special Assessments . . .
Environment Concerns / Influences . . .
The Home
Age of Home . . .
No. of Stories . . .
Wood Frame . . .
Brick Frame . . .
Wood & Brick Frame . . .
Aluminum Siding . . .
Roof Condition . . .
Foundation Condition . . .
Overall Exterior Condition . . .
Garage Size . . .
No. of Bathrooms . . .
No. of Closets . . .
No. of Bedrooms . . .
Oil Heat . . .
Gas Heat . . .
Electric Heat . . .
Hot Water Heat . . .
Insulation . . .
Central Air Conditioning . . .
Energy-Conservation Features . . .
Age of Heating System . . .
Age of Water Heater . . .
Capacity of Water Heater . . .
Age of Electrical Wiring . . .
Plumbing Condition . . .
Estimated Water Bill $
Estimated Heating Bill $
Estimated Electric Bill $
Living Room . . .
Fireplace . . .
Separate Dining Room . . .
Family Room . . .
Drapes - No. of Rooms . . .
Carpeting - No. of Rooms . . .
Kitchen Eating Area . . .
Refrigerator . . .
Stove / Oven (Gas / Electric) . . .
Garbage Disposal . . .
Dishwasher . . .
Broken Windows . . .
Storm Windows / Screens . . .
Washer / Dryer Outlets . . .
Laundry Space . . .
Finished Basement . . .
Attic . . .
Sump Pump / Drainage . . .
Connected to Sewer System . . .
Patio . . .
Backyard Fence . . .
Landscaping . . .
Property Boundaries . . .
Security (dead bolts, detectors) . . .
Building Code . . .
Compliance . . .
Ability to Expand / Enlarge House . . .
Open House Warning
Remember, the Olympia WA real estate agent, and real estate company, holding the open house, most often represent the home seller. Everything that you tell them they are legally obligated to relay back to the seller. Their job is ask you questions about your motivation, your current living situation, and your financial ability to buy. DO NOT GIVE THEM ANY INFORMATION ABOUT YOURSELF, OR YOUR SITUATION!!!
Think of the open house like a poker game, and the real estate agent, at the open house, is trying to see your cards. Don't Let Them!!
WHAT TO DO UPON ENTERING THE OPEN HOUSE:
Let the real estate agent know that you are already working with someone. Avoid casual conversation with the agent (We know it's hard, but it is their way of getting information out of you), however, if the agent wants to tell you everything about the sellers situation - Do not be afraid to listen.
Avoid signing any guest logs. However, if they insist - put down our name, and phone number.
If you like the property, leave right away, and call us. We will rush over, and visually examine the property.
OPEN HOUSE MYTH
The public, in general, believe Open Houses are for the purpose of trying to sell the property. This simply isn't true. Open Houses got started by real estate agents trying to find curious buyers to purchase their other property listings.
A Typical Example:
Mr. & Mrs. Buyer stop at an Open House and sign the guest register. A day later they get a call from the real estate agent.
"Hello Mr. & Mrs. Buyer, I noticed you didn't like that property we had open on Sunday, but we have 3 others you might like - would you like to go look at them?"
Since Mr. & Mrs. Buyer are looking for a home in Olympia WA, they take the agent up on it. The agent meets them at the first property, and starts asking them about their situation, and, also, says
"Wow, this is a very nice home. I don't think you could find anything else in this good of shape. Cool - check out that view."
Now Mr. & Mrs. Buyer go to the 2nd property. The agent is still drilling the buyers about their situation. And, upon seeing the 2nd property says
"Gee whiz, this property is even better than the previous one, surely there isn't anything even remotely close to being this nice. Can you believe that kitchen?"
Now it's on to the final property, and the real estate agent is still getting information about the buyers situation, and never reveals, to Mr. & Mrs. Buyer, that he or his company are representing the sellers of these homes. Upon entering this home the agent says
"Mr. & Mrs. Buyer, in all my years as an agent, I have never seen a property this nice. It would be foolish for you to pass up a deal like this."
Since it is the best property, the buyers decide to write an offer only to find out that this agent DOES NOT REPRESENT THEM, and that the agent cannot give them any advice on what a reasonable price to offer for the property would be, or any advice that would help their situation. Don't get yourself into this situation.
Hire a Buyer's Agent to help you locate homes that fit your needs, and wants. And, while you are looking at the homes, your Buyers Agent will be looking for potential shortcomings in the home, or problems that will cost money to repair. Instead of trying to convince you to buy the home, your Olympia WA Buyers Agent will help you make the decision as to if the property is going to be the right investment for you, and your family.
Know Exactly What You Are Buying
The often repeated phrase, "Buyer Beware", is never more appropriate than when thinking about the purchase of a fixer-upper. You really need to know exactly what you're getting into before buying one.
It's commonly thought that fixer-upper homes represent easy money that is ripe for the taking - that you can buy it, do a little work on it, in your spare time, and then resell fast for a large profit. Usually, this simply isn't the case. Although, with proper planning, and foresight, good profits can be made by buying "distressed" Olympia WA homes, at less than market value, making appropriate improvements, and repairs, and then reselling. And, for many first-time purchasers, who intend to live in the house while fixing it, buying a fixer-upper can be the very best way to go. It's less risky buying a fixer-upper when you can live in the house while improving it. And, of course, by living in the house for at least 24 months, you should be able to avoid paying regular income taxes on the profits.
The most important thing to know, before making a decision on such a purchase, is what needs to be fixed. Any time you are spending money on improving a home, with the idea of selling it later, strive to spend your money on things that purchasers can easily see. Things like new paint, and getting rid of trash from the property, cost little but have instant impact on curb appeal. Homes that have only cosmetic issues, like peeling paint, a trashy yard, bad carpet, or wallpaper, are the best bet. This is especially true for the first-time Olympia WA buyer looking to live in the house for awhile before reselling. Fixing, and cleaning, cosmetic issues, is fairly easy, and inexpensive. It almost always gives a good return on investment, particularly when you can do the work yourself. Kitchen, and bathroom, remodeling usually pays a nice return. Do not be afraid of buying a fixer-upper in need of this kind of repair. Homes with structural damage, or a floor layout that requires major work to remedy, usually can not be "fixed up" for a profit.
Always have an inspection for hidden damage performed by a home inspector, or construction specialist, before buying a fixer-upper. Make sure that satisfactory completion of such inspections are a condition of purchase in any purchase and sale agreement you sign. Then be sure to negotiate to try, and get the seller to pay for all, or some, of the cost of needed repairs discovered by the inspection. Often, sellers will be willing to decrease the sales price to sell the property "as is" instead of paying for the repairs.
Be careful that you don't pay too much. Especially if you plan to resell quickly, paying too much for the property, up front, can doom your plans for quick profit. Research the Olympia WA real estate market for reselling, and have an exit plan for selling the house, in place, before making an purchase offer.