Course of Construction Insurance

Course of Construction Insurance:

What You Need To Know Before You Build Your Home.

Submitted by Eric Kossian of Leavenworth Insurance

We’ll assume you’ve purchased your dream lot and have hired a contractor. Prior to this point, you should have liability coverage either extending from another home policy or have a vacant lot liability policy. Once you start building you still need liability insurance (your vacant land liability policy is now void once construction starts) and you will need dwelling coverage while the dwelling is being built. Your contractors should have a Contractor’s Liability policies covering their work on the dwelling. For additional tips regarding your contractor see the bottom of the page.

Contractor liability policies do NOT cover your liability as a land owner and they do NOT cover the building while being built. Both of these needs can be easily and inexpensively covered by you with a Course of Construction homeowner’s policy. These cover the building(s) during the time of construction and typical personal property coverage too, as well as your liability. As with any homeowner’s policy there are usually limitations of $1500 - 5000 for theft of your personal tools so make sure, if you are helping out, your tools are well marked with permanent markers and well secured when not in use as tools are a high theft item. (While many companies have a construction surcharge on course of construction policies, I have found a preferred company that has no surcharge throughout Washington State and they have great rates. And, when the home is done, in most cases they don’t require the hassle of doing a new policy… it rolls right into your homeowner’s policy.

It can be cost effective to buy construction materials now in situations where there are strong indications that prices may increase in the near future. Sometimes you can buy now but have delivery later; whereas some materials may need to be delivered now. I offer, on the same course of construction policy, an endorsement that covers theft of building materials up to $10,000. The cost of this endorsement is just $150.

Statistically, 20% of homeowners are underinsured after a total loss paying the extra out of pocket; often many tens of thousands of dollars because the homeowner, insurance company and the insurance agent all estimated the home replacement cost incorrectly. So once your home is completed, be sure to contact your insurance agent to update your replacement cost. (Homes usually cost 12-15% more than budgeted!) I am one of the few Washington agencies offering a company providing unlimited dwelling replacement cost for your qualifying homes, so in the event your home replacement costs more than estimated, you are still covered!

Other Benefits: Identity Theft restoration service is included free with the all homeowners policies! Best policy also provides $25,000 reimbursement. Literally up to 50% discounts on both home and auto insurance for good to excellent credit rating. (I have saved people up to $1000 a year on just one home.) Affluent clients can get expanded theft coverage for jewelry & tools, worldwide liability, all policies in 1 package policy with just 1 bill.

Additional Tips Regarding Your Contractor:

I recommend you verify in writing that your General Contractor has a Contractor’s Liability policy of at least 1 million dollars – to cover at least the home replacement cost. I also recommend that you get your contractor to agree, in writing, that all subcontractor’s will provide evidence of contractor’s liability to the General, with a copy to you, prior to them starting any work on the property. Contractor’s buy these policies to protect their liability for property damage and injury resulting from their work. You can easily check to make sure your contractor and subs are licensed in Washington State at this site: http://www.dol.wa.gov/business/checkstatus.html

It can also be helpful to stipulate in writing with the General Contractor, for the home to be completed by a certain date or the contractor has to start paying you a daily amount, but allow enough time for reasonable construction delays – which are common. This will help ensure that if your contractor is overcommitted to too many people that your home stays at the top of his priority list. Do not agree to pay much beyond actual work performed. If money for materials is needed, you can make the check out to both the materials company (specifying your project) and the contractor if needed. This ensures that money provided to your contractor for “materials” actually gets spent on materials for your home.

Eric Kossian

Leavenworth Insurance

11756 Hwy. 2, Ste. 1, Leavenworth WA 98826

Ph. (877) 548 – 5488

Click Here to Read a Previous Interview with Eric and his company Leavenworth Insurance

Leavenworth Home Inspections - Common Conditions

Leavenworth Home Inspections - Common Conditions Part I

By John Griffith, Cascade Site Services, Cashmere WA

The conditions described below are not in any particular order as far as significance or commonality. Leavenworth does have a large number of older homes, built in the early 1900's, and many of these conditions are typical of older construction. Also, with the climate of Leavenworth being cooler, with higher precipitation than areas farther East, issues that involve drainage, ventilation and soil contact with wood take on heightened significance.

1) Poor exterior drainage: Since water or moisture related issues consistently result in more structural damage to homes than any other cause, water and/or moisture management is always the number one thing to be aware of. Water itself causes direct damage to homes in the form of settled foundations, cracked concrete patios and deteriorated wood siding. In addition, most secondary issues such as mold, wood rot and insect infestations are created by poor water management.

Common causes of poor exterior drainage include inadequate gutters, missing downspout extensions, ground that slopes toward the home and vents or windows below exterior grade.

2) Deteriorated exterior siding: Water management plays a big role here as well. Exterior siding must be maintained to prevent water from entering directly into or behind the siding. There are many different exterior siding materials in use, but regardless of which material is present, it must be protected from water intrusion. Composite wood siding is extremely vulnerable to moisture intrusion. Even the older cedar plank and newer, cement based “Hardi board” must be installed correctly and sealed properly to prevent water damage to the siding material.

Preventative maintenance such as painting, filling cracks and gaps, and sealing open nail holes goes a long ways in avoiding siding damage.

For more information on types of exterior siding, go to http://www.sidinghelper.com/

3) Inadequate ventilation in the crawl space: Adequate ventilation in the crawl space is essential in preventing water/moisture damage. Molds, wood rot and even termite infestations can be prevented by maintaining adequate airflow throughout the crawl space. These organisms require moisture to thrive and keeping the crawl space cool and dry with proper ventilation is vital. As insulation has been added to older homes to improve energy efficiency, ventilation requirements have increased to prevent moisture buildup. Adding additional crawl space venting is a typical recommendation in older homes.

4) Inadequate ventilation in the attic: Just as the crawl space below a home needs adequate airflow, so does the attic spaces. In addition to preventing the same types of moisture issues found in crawl spaces, there are other reasons for maintaining ventilation in attics. One is prolonging the life of the roofing material. The useful life span of composition shingles and cedar shake or shingle roofing materials can be significantly shortened when subjected to prolonged high attic temperatures. Also, the formation of ice dams on the eaves of older homes is directly related to poor attic ventilation. Just as in the crawl space, increasing attic ventilation is a common recommendation in older homes.

5) Inadequate deck installation: This is one, of a few, very serious issues that can arise during a home inspection, due to the fact that a catastrophic deck failure can have fatal consequences. It is essential that all decks, and especially elevated decks, be installed correctly. Elevated decks should be installed by qualified, licensed contractors, and even then may have shortcomings, since there are different ways to install decks. Critical areas are the physical attachment to the exterior, provisions for water/moisture management at the exterior attachment, adequacy of fasteners/hardware and proper support from below the deck.

For more information on building a safe deck, go to http://www.thisoldhouse.com/ and search “Building a deck”.

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Thanks so much to John Griffith of Cascade Site Services, a Certified Home Inspector and Licensed Pest Inspector in the Leavenworth and Lake Wenatchee area.

This is Part I of a series. When we have posted Part II you will be able to click here to learn more about Leavenworth Home Inspection Issues.

Leavenworth Condo Report

Prices for Leavenworth Condos have continued their upward trend in prices despite a glut of new construction condos on the market.

This report is for the first quarter of 2008 and includes Kahler Glen condos as well as Leavenworth projects like Aspen Suites at Icicle Junction, RiverPark Homes in Leavenworth, Alpine Village, SkiView Condos on Titus Road, and The Boulders on Alpensee Strasse.

First quarter sales volume has been fairly consistent the past few years. This year 5 condos sold in the first 3 months, with 3 selling in 2007, 4 in 2006 and 2 in 2005.

The big news which has been mentioned here before is the number of new condos on the market in Leavenworth. 59 units were active on the MLS during the 1st quarter, despite Aspen Suites removing their condos from the MLS.

Prices continue to march upward. In 2005, the average condo was $121,000 and now it has risen to $284,000. Median prices have risen as well to $300,000 for 2008.

As of April 6, there are currently 51 condominiums available on the MLS at an average asking price of $420,000.

I expect that condos zoned for commercial use (and vacation rentals) will continue to sell well, especially those closest in price to the median sales price. Condominiums priced between $250,000 and $350,000 will remain popular, while others may continue to sit.

Other Leavenworth Real Estate Articles and Information

Click Here to read my report on Leavenworth Home Prices

Click Here to Search for Leavenworth Condominiums

Click Here to find the Value of your Leavenworth Condo

Building a Leavenworth Condo Development ?

Own a Kahler Glen Condo ?

Looking to buy a Luxury Condo in Leavenworth ?

Leavenworth Real Estate Stats for Q1 2008

Leavenworth real estate prices for both houses and condos have continued their upward trend in the first quarter of 2008. This includes the area from Peshastin to Stevens Pass including Lake Wenatchee, Fish Lake and Plain.

In the past, I have focused on comparing year to year trends, but this quarter I decided to compare 2008 to the past few years.

As you can see, home prices (both average and median) were a bit down in Q1 of 2007, but have rebounded in 2008. We have seen average home prices (for single family stick built homes) go from an average of $251,000 in 2005 to $420,000 - a 67% increase!

Inventory of single family homes went up 8% from last year to 131 active listings, but new listings were down considerably (31%). I think the national news is convincing some folks to hold off on selling their home if they don't really need to right now.

The number of houses that sold during the first quarter is up from 20 to 24 (a 20% increase), but down from 25 in 2006 and 32 in 2005.

As of April 6, there are 80 homes for sale in the Leavenworth area at an average price of $589,000.

Click Here to Search all Leavenworth Real Estate

Click Here for the latest Leavenworth Condominium Statistics

Click Here to find your Leavenworth Home's Value

Leavenworth Real Estate Agent Nominated for Tech Savvy Business of the Year

On Tuesday April 8, the Greater Wenatchee Area Technology Alliance is holding their annual Innovators Awards Luncheon in Wenatchee. They will be giving awards for the Entrepreneur of the Year and for the Tech Savvy Business of the Year.

I am honored to be one of five local businesses nominated this year for the Tech Savvy Business of the Year. No real estate agent has yet to win this award and I am excited to be recognized for the hard work I have put into becoming a leader in the field.

The keynote speaker for the luncheon will be Dr. Lee Cheatham, the Executive Director of the Washington Technology Center.

Past Award Winners for the Tech Savvy Business of the Year include Roger Erlandsen of Erlandsen Inc, Jerry Isenhart of http://www.golakechelan.com/, Lorne Browne of Lovitt Cider, and Bernie Schell of PakIt Rite.

Leavenworth FSBO (For Sale By Owner)

Leavenworth real estate searches can be tricky in this day and age.

As a consumer you have a multitude of choices - The Big Boys - Remax.com, Windermere.com, Johnlscott.com, or Realtor.com

You can use any number of newer online tools like Roost, Zillow, Estately, Craiglist or Trulia

or you can search local newspapers like the Wenatchee World and the Leavenworth Echo.

You can also use the big search engines which have real estate sections like Google or Yahoo or MSN.

Of course, I'd prefer that you used the Leavenworth real estate search on IcicleCreekRealEstate.com, but I'll admit that a handful of listings don't end up here either.

Here's the dirty real estate secret no one will say out loud. None of these websites has all the Leavenworth real estate for sale!

It's true. There are a number strategies homeowners use to sell a property in Leavenworth (and many of them don't work). If a homeowner is selling FSBO or For Sale By Owner - they might have an ad in the paper or on Craigslist, but they might just have a sign in the yard. Perhaps they have brought a few flyers by to each of the real estate offices in Leavenworth to let local real estate agents know about their home. Sometimes, FSBOs won't advertise at all! They just tell their friends that they would sell if the right buyer comes along.

But it's not just FSBOs that are "sorta trying" to sell their property.

There also home sellers that list with limited service brokerages or flat flee listing companies. Some of these won't show up on your normal MLS searches because the seller chose not to pay extra to have it listed on the MLS. Or they have paid to have it on the wrong MLS. (Here in Leavenworth we use the NCWMLS which is local to the Wenatchee Valley, very few homes in Leavenworth are sold using the NWMLS which serves the Puget Sound and Seattle.)

There are also home sellers who are taking a break from selling. It's common for properties, especially land, to be pulled off the MLS in Leavenworth or Lake Wenatchee for the winter. If everything is under 5 feet of snow it may be difficult to see. If the landscaping at your Leavenworth house is the prime feature, you may get a better price come Spring. Your real estate agent can help you find these homes by searching the Expired or Withdrawn listings on the MLS. This isn't a feature any of the search engines or real estate sites offers, but is something your agent can help you with.

If you aren't finding exactly what you want on a real estate search site, don't despair. There often are more properties to see than meets the eye. Ask your real estate agent to help you find them. Talk to your agent about Buyer's Agency Agreements or Buyer's Representation. Some FSBO sellers will pay your agent's professional fee or you may need to pay the agent yourself.

I recently helped a family buy a condo at Kahler Glen like this. When they first contacted me I told them that it had been 9 months or so since the last condo at Kahler Glen had been on the MLS and I educated them about what I thought the price should be. With a little luck, I found a willing seller and we put together a contract that worked out well for both parties. There was no advertising of the condo, no sign, no Craigslist, no MLS, no Zillow.

In Leavenworth there are plenty of opportunities that don't show up on Realtor.com or Craigslist. Not all of them are good opportunities, and some of them are just plain atrocious, but a great real estate agent can help you open many doors that you didn't know existed.

Leavenworth Vacation Homes and 1031 Exchanges

This article about using your vacation home or Leavenworth condo in 1031 tax exchange was provided by Ann Mclaren of LandAmerica 1031 Exchange Services. I have been fortunate to take a 1031 class from Ann in the past and I welcome anyone to contact her directly for more details on 1031 exchanges. She can be reached at (866) 962-1031. I hope to have more articles from her in the future.

A vacation home or second home held for personal use, solely for personal enjoyment, is not eligible for 1031 exchange treatment. However, a vacation home that is rented out at fair market value and is never used by the owner or his family is clearly eligible for 1031 exchange treatment. Most vacation properties fall somewhere between these two extremes, with some personal use and some rental use. Until recently, there has little binding guidance on the exchange of vacation properties in 1031 exchanges.

Revenue Procedure 2008-16, which is effective on exchanges occurring on or after March 10, 2008, provides safe harbor rules for vacation homes and properties converted to or from personal residences. If the safe harbor guidelines are met, the IRS will not challenge whether the property qualifies as property held for productive use in a trade business or for investment under Section 1031.

A vacation home or second home that you are selling and/or purchasing in a 1031 exchange will qualify for safe harbor tax-deferred treatment if:

1) The relinquished property is owned by you for at least 24 months immediately before the exchange and the replacement property is held by you for at least 24 month immediately after the exchange.

2) The dwelling unit is rented out at fair market value to another person for 14 days or more for each of the two years immediately before the exchange for relinquished property or two years immediately after the exchange for replacement property.

3) Your personal use is limited to the greater of 14 days per year, or 10 percent of the number of days of the year that the property is rented at fair market value, for two years prior to or after the exchange. You may use the property some additional days for repairs and annual maintenance, but must be prepared to prove actual work done.

Personal use is defined as being used by you, any family member, or anyone who has an interest in your property, such as a tenant in common, or by any arrangement where fair market rent is not paid. You may rent your property to a family member if they use it as a principal residence (not as a vacation home) and pay fair market rent.

Under these safe harbor guidelines you may sell, exchange, or move into your replacement property after you have met the requirements for the first 24 months. 1031 exchanges of vacation properties or second homes that do not follow the safe harbor guidelines in Revenue Procedure 2008-16 may still qualify for 1031 exchange treatment outside of these parameters, but you should be prepared for increased scrutiny by the IRS.

Author:

Ann Mclaren, Vice President

LandAmerica 1031 Exchange Services

(866) 962-1031

Buyer for Lake Wenatchee Cabin

Do you own a cabin on Lake Wenatchee near Leavenworth? It doesn't matter if your home is on North Shore or Cedar Brae, demand for lakefront homes on Lake Wenatchee (or Fish Lake) remains at an all time high. There is only one home for sale on Lake Wenatchee today.

Even if you don't want to list your home, but may be interested in a private sale, please contact me. I am working with a serious buyer who wants to buy on Lake Wenatchee today.

Top 5 Ways to Shoot Your Leavenworth Condo Project in the Foot

Top 5 Ways to Shoot Your Leavenworth Condo Project in the Foot

1. Price it high

You are not the first builder or developer to build condos in Leavenworth. Lots of price data exists, the closer you pay attention to that data, the quicker your project will sell. You're right "no one has built 10,000 square foot uber - condos made of gold" in Leavenworth, but that doesn't make it a viable niche.

2. Shun local real estate agents

Real estate agents tend to sell a majority of homes and condominiums. Most serious out of town buyers (and most Leavenworth buyers are from out of the area) are using a real estate agent to help them purchase a home.

Which agents sell homes in Leavenworth? No surprise, agents who work in Leavenworth. Despite 75% or more of the buyers being from the Puget Sound area, only a tiny fraction of homes sold are by out of area agents.

If you choose not to use an agent to list your condos, local agents will not sell them. It's too much work and the tools that could be promoting your condos are promoting someone else's. (MLS and related search engines)

3. Office Exclusive Listing

This is a takeoff on number 2. An "office exclusive" listing is one where a real estate company lists a property but does not cooperate with other brokers or place the listing on the MLS. In the Seattle area this practice is forbidden among members of the NWMLS. It is allowed in Leavenworth.

Again, if your home or condo is not on the MLS, it is INVISIBLE. In fact, if your home is listed with a Seattle area agent, it's also INVISIBLE. Real estate agents and buyers use tools that let them see the most active listings. This tool in Leavenworth is the NCW MLS.

Here's a sad story I have heard about two different projects in Leavenworth. An agent in my office (Windermere in Leavenworth) calls another real estate office (this happened at two different companies) and asked them for more info about a condo project they had. It hadn't started construction yet, but the agent claimed that all were sold out. To date NOT ONE UNIT has closed.

In the other example, an agent called for info and was told that this other project was sold out as well. She suggested that the agent create a waiting list in case some of the transactions happened to fall through. Only 50% of that condo development has sold at this point.

Office exclusives are about greed. Greedy people starve in the end.

4. Location, location, location

Have you heard this before? Downtown Leavenworth is good, close to recreational amenities is good. The real key in Leavenworth is the ability to use the condo as a nightly rental. For the most part, this is a function of location. In Leavenworth, condominiums zoned for Commercial Use can be rented out as vacation rentals, condos zoned for Multi-Family Residential cannot be rented out nightly. At least one project in Leavenworth is going to learn this lesson the hard way.

Two current Leavenworth condo projects made it hard on themselves and lost valuable time on market. They were zoned for Commercial Use, but created covenants (CCRs) that prohibited nightly rentals. This was a big hole to dig out of, and though the CCRs are gone, I think they missed their time in the spotlight. (See number 5.)

5. Hype

Condo buyers are looking for good value, but they are also looking for the hottest coolest thing around. Days on Market probably matter more to condo buyers than other folks buying Leavenworth real estate. If a condo has been on the market for 180 days buyers assume it has problems.

The typical Leavenworth condo project has missed out on the hype that comes with a new project. How did they miss out? Office exclusives, For Sale By Owner, Restrictive Covenants, etc, etc.

New condo projects should have lots of hype. Throw a big party and invite everyone. Make it easy for agents to show and sell your property. Buyers can't get excited if their agents aren't excited.

6. Dismiss the Internet as a Fad

I know the article says top 5 reasons, but I'm all about adding value. Today you get 6.

Over 80% of home buyers use the Internet to search for homes. This number is higher among the affluent. It's also safe to assume that the number is higher than the national average in high tech Seattle and among vacation buyers looking for property 2+ hours from home.

I know you want to spend money on newspaper ads and glossy magazine spreads, but the web sells homes. I know you want an agent to do 8 open houses a week, but the web sells homes.

Build a great website. Use lots of photos, use virtual tours or video, have floor plans and prices available. Use SEO to make sure that you come up on the top of the list for Google and the other search engines. Most projects in town can't be found on the Internet for their own name, much less "Leavenworth Condos" or "Leavenworth Condos For Sale".

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Search Leavenworth Condos for Sale

Vacation Rental Ban in Chiwawa River Pines?

Own a vacation rental in Chiwawa River Pines? Do you have a cabin there that you have been thinking about renting out when your family isn't using it?

Al over at NCW Real Estate Blog reports that the community is debating how to enforce a ban on vacation rentals and all other commercial ventures that have been a part of the neighborhoods.

No matter your opinion on the matter, if you own property in Chiwawa River Pines, you should plan on attending upcoming meetings of the neighborhood association.

I think that enforcing a ban on vacation rentals will have a negative impact on property values. Buyers in the Leavenworth and Lake Wenatchee real estate market like the option of renting out their property even if they never use the option. Condos that can't be rented out languish in our market. Homes in the city limits of Leavenworth don't sell quickly for the same reason. I think a ban on vacation rentals in Chiwawa River Pines will only increase the property values in Ponderosa, where out of area buyers will turn their attention.

UPDATE March 20 - A date has been set for a community meeting for those who own homes and property in Chiwawa River Pines

Leavenworth Real Estate - No Fire Sale

Real estate has been in the national news of late. The National Association of Realtors recently announced that existing home sales are at the lowest point in 9 years.

Sounds like great news for buyers and real estate investors hoping to buy at a low point in the market. It would be, if it were true in Leavenworth and Lake Wenatchee.

This summer I reported a slowdown in the Leavenworth real estate market . At the time we had 135 single family homes for sale and a deluge of newly constructed condos.

Fast forward to this Winter and the Leavenworth real estate market looks a little different. This isn't spin from a rosy glassed Realtor, the real data look very encouraging.

Stealing from Howie Mandel - Let's play Deal or No Deal

No Deal (Inventory is low, demand is high)

Lake Wenatchee waterfront homes

Fish Lake Homes

Riverfront property on the Wenatchee River or Chiwawa River or Icicle Creek

Cabins - almost anywhere

Building lots in Ponderosa or Chiwawa River Pines

Condos at Kahler Glen

Horse property

If you own a property like this and want to sell, please don't hesitate to call. The market demand is high.

Deal (Inventory is high, demand is low)

New construction condos

Condos zoned multi-family

Houses located within the city limits of Leavenworth

Steep land

If are looking for a deal, look here. If you are selling, you need to hire the best agent you can and price your property aggressively.

Leavenworth Real Estate Heating Up

Real estate in Leavenworth is heating up again after a lull this fall. Our phones and email accounts have been busy hearing from folks looking to buy property in Leavenworth, Lake Wenatchee and Cashmere. The buzz around the Leavenworth Windermere office has been really positive so I decided to see what the numbers look like.

The year over year numbers for January and early February are pretty interesting. Granted, it's a small market and the sample sizes are pretty small, but the statistics about the Leavenworth real estate market confirm what we suspected.

Leavenworth Homes for Sale

The number of homes for sale in Leavenworth is down from the summer and fall. We peaked at 135 homes (single family residential - not condos, or manufactured homes.) In January we had 89 homes for sale and today we have 71. Some sellers have given up trying to sell in this market, some sellers are waiting for better weather and some home sellers are.. actually selling their homes! We have also seen a decline in the number of new homes placed on the market. Last year 25 homes came on the market during the 1st 1.5 months, this year it's only been 21.

Leavenworth Homes Selling in 2008

What excites me the most is not that overpriced homes are being pulled from the market, but that homes are selling. The same number of homes have closed year to date as last year (7) but the number of homes under contract or pending is up considerably. Last year 13 homes were under contract in this period but this year it is up to 21. A 60+% increase is pretty amazing.

I think it is truly amazing when you consider that the avalanches that closed Stevens Pass and Snoqualmie pass kept many of our buyers from visiting from Western Washington for a couple of weekends.

Home Prices Up

Despite day after day of bad national housing news, prices in Leavenworth have gone up astronomically year over year. Granted we only had a sample size of 7, but prices appear to have risen 35%. I think that number will moderate after we get more closings, but we won't be seeing price decreases in Leavenworth homes any time soon.

Leavenworth Real Estate Blog's 3 Year Bloggiversary

This real estate blog has successfully been published for 3 years now and I am pleased at how it has slowly grown and matured. The blogosphere was young in 2005 when I first signed up for a Blogger account and jumped in the deep end of real estate blogging.

In those 3 years, I have seen the growth of communities like Real Estate Community, Rain City Guide and LinkedIn . I have gotten great tips about building a community through blogging and educating the consumer about Leavenworth real estate. Sites like The Real Estate Tomato and RSS Pieces have helped transform this blog from a short advertisements to a source for in depth news and analysis.

Blogging has helped build my business through educating buyers and sellers. I have been interviewed by the New York Times, quoted by the Spokesman Review, and have been invited to blog for the Seattle PI's Real Estate Blog.

For years, I was the lone wolf in the Leavenworth blog scene, but recently a few folks have decided to dip their toes into the water.

Local sites include the new blog format at Lake Wenatchee Info and the Leavenworth blog of webmaster 11worth.com. In the real estate world, Windermere's Erin and Blaine Davidson have a Leavenworth blog and Carol Williams has added Leavenworth Condo Blog to her ever growing stable of blogs. Local Leavenworth real estate agent Sam Ernst and his broker have even added a real estate blog to his LeavenworthLeavenworth.com site.

I wish all these newcomers to the Leavenworth blog scene the best of luck. With 80% of blogs dying and giving up in the first year, I know it is a hard row to hoe especially when the benefits aren't always clear. I also challenge these new bloggers to minimize the fluff and the self-promotion. Focus on educating the consumer, and we all win.

Best wishes to all in 2008.

Leavenworth real estate and Lake Wenatchee still in demand

Leavenworth real estate and real estate in the Lake Wenatchee area remain in high demand despite recent news about slowdowns elsewhere.

Two areas that I have seen strong interest in over the past few years are waterfront homes and condos at Kahler Glen.

Waterfront homes range from cabins on Lake Wenatchee and Fish Lake to homes on the Wenatchee River or Icicle Creek. Currently there are only a handful of waterfront homes available in The Leavenworth area.

Kahler Glen condos have remained a hot commodity over the past two years. Certainly I remember 2004 when you couldn't give them away for $175,000, but 2008 is a different story. The last one sold in the spring of 2007 for $325,000 and I expect the next will be at least $350,000. Buyers always ask about other condominium options at Lake Wenatchee or Stevens Pass. The truth is that Kahler Glen has the only condos near Lake Wenatchee and no projects are scheduled in the area.

I am starting to add names to my list of buyers for both waterfront homes and Kahler Glen condos. Don't hesitate to ask to add your name as well, even if the inventory is limited right now. Conversely, homeowners please don't be shy about asking me to help you evaluate the market price of your home. I may even be able to sell your home without listing it on the MLS.

Leavenworth Real Estate - 2007 Year in Review

Real Estate in Leavenworth in 2007 - in a nutshell, prices up, volume down. (While these numbers might change with an additional last minute recording or two, I think the trends will remain the same.)

I have mentioned it before, but as expected 2007 was the Year of the New Condo for Leavenworth. Notable projects included the condos at Icicle Junction (Aspen Suites), the Boulders at Alpensee Strasse, the River Park Homes (affectionately known as the big yellow building), and Ski View on Titus. All these brand new condos certainly brought the price up for the "average" condo. The average condo price was up 45% to $294,000 from 2006s $201,000.

Perhaps more interesting, is what remains. Only 24 condos sold in Leavenworth in 2007, a mere 4 more than in 2006. 49 condominiums remain on the market with a few more projects slated for 2008. The average condo on the market today is $420,000. Does that market exist in Leavenworth? I'm not sure that it does. Only 3 condos sold above $350,000 last year and none above $400,000.

Single family home prices continued to climb in price, while the number of homes sold slowed. The average sales price was up 18% for homes in Leavenworth. The average price is now $415,000 up from $351,000 for 2006.

But price is not the only story. The number of homes sold is down 23% from the following year. The time on market is longer as well. The average days on market for a home in Leavenworth is now 139 days, up 30 days from 2006 when it only took 109 days. Sellers continue to get approximately 97% of their listing price as the final sales price.

Here's one positive and surprising trend. All the "Price Reduced" signs you see around the neighborhood - not indicative of the market. The average price reduction for single family homes in Leavenworth actually dropped in 2007. In 2006, the average home seller in Leavenworth dropped their price 7.06%, in 2007 that number dropped to 6.8%. This number coupled with raising prices tells me that Leavenworth home owners remain confident about the market, despite gloomy real estate news on a national level.

What will 2008 bring to the Leavenworth real estate market? I think much depends on external forces. What will the U.S. economy do? How will the stock market fare? How will the technology companies like Microsoft, Adobe, and Nintendo do?

I tend to think we will see a slight increase in prices with longer market times and about the same number of homes sold in 2008 as in 2007. (Check back in January 2009 to see if I'm right.)

Mike Irwin Wenatchee Photographer- The 10 Questions Interview

Mike Irwin is a Wenatchee area photographer. I met him through one of his current gigs shooting photos of houses for TourFactory, the provider I use for the virtual tours of my real estate listings. Mike has shot a couple of tours for me in the Leavenworth area. He can be found on the web at www.Irwinfoto.com 1. Tell us about your background. You started in journalism? I was born into a newspaper family and never really emerged from it. My father owned and operated two weeklies down in south Louisiana. At age 6 or 7, I was hanging out in the backshop with the typesetters and pressmen and, by age 10, was pretty good at flipping huge sheets of newsprint into the old flatbed press. When we converted to cold type -- computerized typesetting -- I soaked up all the early technology and was fascinated by it. It seemed miraculous. Through high school, I was part of our family's newspaper design team -- grocery store ads and special sections -- but soon fell in love with photography. The newspaper's foreman, Fred Herzog, taught me to see light, to record it on film, and to manipulate it in the darkroom. He was a great mentor and a primary influence in my life. After journalism school (LSU), I worked in television for a couple of years, but then left Louisiana for the wilds of Washington State. I served as publisher and editor at weekly papers in Twisp and Omak, and then got my dream job -- roving reporter for the Wenatchee World. That was in 1988. I worked with a great staff of editors and learned a lot about north central Washington and myself. 2. Who is Mike Irwin ... in a haiku? Much to see, to learn. Delve into the mysteries. I tie my shoes tight. 3. You do a lot of your non-real estate work in black and white. Can you sell a house in black and white? How would you "tell a house's story" in black and white? As a teenager, I learned to see and compose in black and white because, well, color film and color printing (both for photos and newspapers) were just emerging into popular use. My eyes still scan a scene in black and white, searching for luminous highlights and deep shadows and all the shapes formed by these contrasting values. It's a habit I can't escape. I'd love to photograph structures in black and white, but the industry standard for house images remains full color. Also, I recognize that black and white would work best on a special type of architecture -- angular, high contrast, sun-drenched. Luckily, the Wenatchee Valley is dotted with this type of house, so I'm hoping that sometime I'll get the chance to experiment with a black and white shoot. (See my Architecture gallery at www.irwinfoto.com) The story of a house in black and white would stress its exposure to sunlight, sky, and views. And, perhaps, how the house fits onto -- and into -- its environment. You can tell the same story in color, of course, but black and white would emphasize the home's form and shadow. Those are qualities that we all see and feel, but might not acknowledge on a first visit to a new place. 4. What do you enjoy most about taking photos of houses for Tourfactory? Tour Factory provides maximum exposure for a home by capitalizing on the magic of digital photography. It allows 180-degree and 360-degree views of a room or a property through the digital stitching of a series of still images. It scans like video, but it's inexpensive by comparison. I'm an explorer at heart and love learning about the world. And photography gives me a reason to do this. Meeting new people (real estate agents and their clients), visiting new homes, and facing new photographic challenges are some of my favorite aspects of Tour Factory. For the most part, it provides the means to be out in the world and not behind a desk. 5. What aspect of photographing houses do you find challenging? Broadly speaking, the real challenge comes in uncovering a home's pleasures and mysteries -- somehow depicting how the home feels. Sometimes those aspects are obvious; sometimes they remain hidden. But the search is always fun and rewarding regardless of the outcome. More specifically, the toughest challenges are small dark rooms, cluttered walls and floors, and obnoxious pieces of furniture. It's hard to make a green and orange paisley sofa look tasteful. 6. What kind of house or feature in a house would you like to shoot that you haven't yet? Shooting a swimming pool at twilight with the house reflected in the water -- that'd be a nice challenge. And I'm still trying to master a way to match interior lighting with exterior, so the outdoors is seen clearly through, say, a living room window. This works about half the time, but I'd like it to be a sure thing. 7. What have you learned about real estate or marketing real estate from working with lots of different real estate agents? Real estate agents are my best teachers, and they provide new insights at every shoot. Many agents are diehard optimists who believe every house -- no matter how run-down or just plain weird -- has a buyer who will love its quirkiness. Many top agents aren't satisfied unless both parties -- seller and buyer -- walk away happy. And, for the most part, agents really love the "personality" of a great house. The excitement they feel about a beautiful, functional house is palpable, and it's not just about money. They want to find the family that will make this beautiful empty house a true home. And, no, some real estate agent didn't pay me to say all this. 8. Tell us about your favorite house image that you have shot so far? It seems like I'd been wrestling forever with electronic flashes -- trying to get the light balanced and properly exposed -- when in frustration I shot a burst of natural light photos that surprised the hell out of me. The light was rich, the colors full and luminous, the details sharp and clear. It was a shot of a small, empty wet bar with tiny windows and ugly carpet, but it came out beautifully. It changed the way I've come to view the lighting of a room. 9. Canon, Olympus, or Nikon- and why? I say this with no hesitation: Canon. Over the years, I've owned a lot of cameras, but only Canon comes close to organizing its camera functions in the same way I think about photos. It seems more intuitive, in the same way Apple is more intuitive than Microsoft. All the major functions are on accessible buttons or dials, not three levels down into a computer menu. Batteries, memory cards, and other accessories are easy to replace. Physically, the camera feels good in my hand -- light yet solid. Last March, I spent three days at a Nikon workshop and walked away absolutely convinced that I wouldn't buy a Nikon. Total immersion in the Nikon world did not convince me to buy one. For many, the Nikon is a dream camera, but not for me. By the way ... the new Olympus digital SLRs with the live LCD screens are really snazzy. I love the option of composing a shot either through the viewfinder or on the LCD screen. Pretty soon, most digital SLRs will have this feature. 10. If you could ask 10 questions of anyone, alive or dead, who would it be? Without a doubt, it would be my #1 hero ... Sir Richard Burton, the 19th century English explorer. His travels through Africa, India, and the Middle East lifted a veil on foreign cultures and helped expose England's stodgy society to the extremely exotic. He not only explored foreign lands, but also delved into their religious and sexual taboos. He and his wife were also ardent dabblers into the paranormal. A man of many tastes and endless inquiry.

Leavenworth Condo Update

Leavenworth Condo Update

In an earlier post I called 2007 "The year of the new condo" in Leavenworth. We have seen 5 new projects come on the market this year. River Park Homes, The Boulders, Aspen Suites at Icicle Village, Haus Wunderbar the newest on Titus Road. Condominiums have always been a hot item here in the Bavarian Village, but we probably didn't need so many new condos all at once.

The number of condos listed in Leavenworth so far this year is up 176%! Last year 50 were listed and this year the number is 138.

The number of sales and the sales prices are up considerably, but there is still too much inventory for the market to absorb.

As of today's date 23 Leavenworth condos have sold. That's up 53% from last year. The average price is up to $298,000 up 48% while the median price is up 65% to $325,000. Of course not all condos in town have gone up that dramatically in price, the majority of the price increase is the large numbers of new construction condos that have sold.

The market is slower than many developers might admit. Currently there are only 5 pending sales and 69 active condos on the market. That's a pending ratio of merely 7%. (A hot market would be at least 50%) At least one project has offered deep discounts and I suspect the others would be willing to make some concessions. I think there are some good deals to be had in this market (and some bad deals to avoid.)

Win a Leavenworth Night Out!

I just started a new ad campaign and I need to see if anyone is seeing it. It should be starting soon in the greater "Eastside" area - Bellevue, Kirkland, Redmond, Mercer Island.

If you are the first to spot my new ad I'll send you a $50 gift certificate to your favorite Leavenworth restaurant.

Good Luck...

Update 10/16

For every guess or attempt that gets logged here as a comment, I will provide a hint. The more guesses, the more hints I will provide until someone wins. (Emails to me are nice, but only "comments" will result in hints. Jim, Holly, Mark, Jordan, and the rest of the lurkers... I'm talking to you.)

Foreclosures 101

Foreclosures, short sales, and auctions seem to be on everyone's mind as the media continue to squawk about the national real estate slump. We don't see a lot of foreclosures in Leavenworth and I don't expect we will. Appreciation has been strong the past 3-4 years (giving home owners lots of equity). Additionally, we rarely see buyers who are using exotic loans like negative amortization or interest only. I see a lot more cash sales than I do buyers paying less than 20% down. The people I see in Leavenworth getting in trouble are those people who used their house as a piggy bank with HELOCs and multiple-refis. Jason Schwieger, of Brio Realty wrote a great article about Investing in Foreclosures. This is required reading for anyone thinking of getting into the investing game. Allyson and I get lots of questions about this and I think Jason did a great job explaining how it works.

Lake Wenatchee Real Estate

Real Estate at Lake Wenatchee and Fish Lake has really taken off in the last decade. Lake Wenatchee'