A client asked me some very good questions about the Sequim real estate market and whether they should buy a home now in Sequim even though they are not retiring for 10 to 15 years, or whether they should buy a lot now and build in 10 to 15 years.  Here is my perspective in my email response to this client about the future of the Sequim real estate market.

The Future of the Sequim Real Estate Market

My experience tells me that the market will begin to appreciate after we get through this recession, and whether that is two or three years, I do not know.  But after that we will once again see slow but steady appreciation in the Sequim area.  My forecast is that we will be back up to 2005 prices five to seven years from now, and after that there will be slow appreciation.  I think this means that in 10 to 15 years home values will double from what is now a bottom.  A $300,000 home today will be selling for $600,000 in 10 to 15 years.  I think this is very realistic.  Of course, appreciation might be sooner and more than this, but I prefer a conservative approach here since my retired clients will have so much of their retirement funds invested in their retirement home.

The cost of building homes will increase too.  So that’s a major factor for you if you do buy a lot and build in 10 or 15 years.  You will have gotten a lot at a good price if you buy it now, but you will have had the carrying costs (property taxes, homeowner assoc. dues if any) for all these years, and you’ll be building at the high prices 10 or 15 years from now.

You can buy a lot and not install a septic system and a well until you need it, but those costs will go up, and in the future there may be new laws restricting your ability to install a septic or to drill a well.  Water rights are getting more restricted everywhere.  It would be a shame to buy a lot now and then not be able to drill a well or install a septic 10 or 15 years from now, which could happen.  Then you would have a lot that is unbuildable.  Read the rest of this entry »

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The news around the country is that some real estate markets are getting hot and multiple offers are not unusual, and that some homes are being bid above the listing prices.  What about Sequim homes?  Are Sequim homes receiving multiple offers?

Multiple Offers and Competition

Sequim homes are not receiving multiple offers like some areas in the San Diego area or around other parts of the country, but here is where we are seeing buyers get beat out of their offer on a Sequim home or a Port Angeles home.

The ideal retirement home goes on the market, and by ideal I mean it is in a very nice location with some privacy, the home is a newer home in great condition, the floor plan is fantastic, and the price is really really good.  There are not many homes like this in the entire Sequim and Port Angeles market, so when this kind of home shows up in the MLS, buyers who are watching the new listings on my online Sequim MLS site (listed in the last 14 days), are ready to make an offer.

Multiple Offers for the Perfect Home

I have had several buyers who decided to make an offer on a home only to find out that another buyer made an offer the same day or the prior day, and the other offer was slightly better, i.e. full price.  Most of these cases involve buyers who took too long to make a decision, days or even weeks.  What a disappointment for a couple who find the perfect retirement home and someone else buys it out from under them.!

The point I share with clients is that when you see an extraordinary home with a very reasonable listing price that is at or below fair market value, don’t fool around.  Make a full price offer, and do it now.  You can make a lower offer, of course, but you increase the chance that someone else will make a full price offer, which is happening a lot lately for these ideal homes.  I would say six of my buyers have lost their homes because they did not do this.  This is not an effort on my part to get clients to make full price offers on homes that are listed too high.  You’ve got to know market values and have the experience to discern a good deal when it shows up.  Then you’ve got to take appropriate action before it is too late.  Do not procrastinate when you find the right home in the right area at the right price, because you might learn about multiple offers first hand.

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Most buyers select a local mortgage broker, but once in a great while I have a buyer who has a mortgage broker from outside the Sequim and Port Angeles area.  While a broker in another state who is licensed in Washington state can do business here legally, most of the time it is a dangerous idea fraught with potential nightmare stories for a buyer (and his seller).

Mortgage Broker a La Carte

Imagine a broker from outside the area who does not know the Sequim real estate market, who has no local network, who doesn’t know any local appraisers, and no one local knows him? A good, competent, professional mortgage broker could still do a good job.  Unfortunately, many buyers buying a home in Sequim have found out the hard way that a mortgage broker can be responsible for killing a real estate transaction or causing a delay that causes a lot of stress for everyone. 

Mortgage Broker Competence

I recently had a buyer who hired a mortgage broker from outside the area.  He kept telling us everything was moving forward, but a week prior to the closing date, the mortgage broker had not even ordered the appraisal.  The transaction had to be extended by several weeks, which caused a tremendous amount of stress for the buyer and seller, a lot of juggling to keep the transaction on track, and the parties had to sign an addendum extending the closing date.  What if one of the parties refused to sign such an addendum.  You can imagine the nightmare scenario.  

I also had a transaction recently where my buyer had a Seattle mortgage broker who did an excellent job.  I cannot overemphasize the importance of hiring the right mortgage broker, and most of the time that means a local Sequim mortgage broker who has a stellar reputation.

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You probably have heard that a short sale can take a long time to get approved and close.  Try 353 days from the date on the contract to the closing date.  Let’s call it one year.  Since I represented the buyers on this short sale, I know the history of this transaction.

Short Sale Takes a Year

A short sale is the sale of a home that is upside down.  In other words, the home sells for less than the balance of the mortgage, and that requires the bank to agree to take a loss by getting paid less than what they are owed.  As a buyer, you might ask why a short sale would take any longer than a regular sale?  Read the rest of this entry »

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Who is the No 1 Sequim Real Estate Broker from clients’ perspective?  One agent may be good at one thing and another excels at something else, but what about a well rounded and very experienced professional who has clients who are so darn pleased, they write about it and talk about it?  That would be Chuck Marunde.  Here are just a few of the many enthusiastic testimonies for the No. 1 Sequim Real Estate Broker according to clients.

“I have worked with quite a few real estate agents and Chuck is right at the top of my list of good ones. Actually, Chuck is first and foremost just a good person, and he carries his personal honesty and integrity over into his profession. He has the greatest depth of experience in real estate of any agent or broker I have known.”  Steve

Sequim Real Estate Broker for Seattle Buyer

“You need an agent who is competent to handle and help you negotiate the issues that come up during disclosure, home inspection, appraisal, etc. Chuck’s competence is superb! I got truly professional, sound, straightforward advice.  . . . Chuck’s communication skills are exceptional: phone, email, fax. He has a wonderful ability to stay “on-point” with what is actually important and doesn’t lead you astray on issues that aren’t so important.”  Read the rest of this entry »

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A picture of this Sequim waterfront home may be worth a thousand words (and two pictures worth two thousand words), but a photo rarely gives you the same emotional experience as actually being there. I sold this Sequim waterfront home recently, and I want to share these photos, but I wish you could have stood with me when I took these photos.

Sequim Waterfront Home is Actually Heaven

Sequim Waterfront Home with Views from Every Window

How’s this for a view from your master bedroom?  This is a rare Sequim waterfront home, and it would be hard to find one like this anywhere on the Strait of Juan de Fuca.  From these windows you can see Canada, the San Juan Islands, Mount Baker, and the Dungness Lighthouse.  I represented the buyers on this home, and you might remember the seller, famous Hollywood actress Lindsay Wagner.

Sequim Waterfront Home

There are 36 homes that qualify as a Sequim waterfront home, and you can view them all with photos at Sequim waterfront.  If you’d like to view one of these homes, you can reach me any time on my cell phone, 360-775-5424, or email me.  I’d love to help you find your Sequim waterfront home.

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This Sequim waterfront home is so exciting, I just had to write about it, and it’s not even my listing.  I had to get permission from the listing broker.  I do want buyers to know about it, especially because it is Sequim waterfront with a incredible water view, access to the beach, a dock, and is a rare property.

Sequim Waterfront Log Home

Sequim Waterfront View

Sequim Waterfront Dock

Finding a dock on Sequim waterfront anywhere on the Olympic Peninsula is like finding buried treasure–they are few and far between, and you cannot build a boat dock without an Act of God.  This property has a dock shared with neighbors, and it’s a nice long dock.

You can learn more about this Sequim waterfront property by going to my MLS site at Waterfront, and if you would like to view this or any Sequim waterfront property, call me at 360-775-5424.

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A home by a freeway is listed in the MLS, and the question is should you consider buying a home by a freeway?  I have two concerns on this subject that I think are relevant for buyers.  My first concern is the home by a freeway that is listed at the same price as a home in a quiet area miles from the freeway.  My second concern is the home near a highway that could become a major freeway.

Little Home by the Freeway

This photo shows current construction on the freeway between Sequim and Port Angeles.  What was a two lane freeway (Interstate 101) will soon be a four lane freeway.  This home was invisible from the highway for many years, sat well above the two lane noisy traffic with a large mound of dirt and a thick hedge of trees and vegetative growth sheltering it.  Suddenly this homeowner is looking down at the new freeway under construction from the back deck and from all the back windows of the house.  This home is no longer sheltered from the noise of traffic, and any thoughts of privacy in the back yard have gone poof.  Little home by a freeway is now little home no one wants.

Home by the Freeway Passing Lane

Are homes by a freeway worth less than a home in a quiet neighborhood?  Absolutely!  Supply and demand prices such homes at substantially less value.  The surprise for me and so many buyers is that sellers often list their home by a freeway at the same price as a home a mile away in a quiet area.

Sweet Quiet Home by the Freeway

Noise is a factor for many buyers who are retiring to Sequim.  I did recently sell a home adjacent to the busy Sequim-Dungeness Road, and my buyers told me they didn’t find it bothersome since they had lived near a Los Angeles freeway for 30 years.  Okay, but they are definitely in the minority of folks moving to Sequim who do consider a home by a freeway to be less appealing.

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