Should I Reduce My Price To Sell My Home?

When a home is on the market for a long time and it still has not sold, a homeowner might legitimately ask his agent, or himself if he is a FSBO (for sale by owner), do I need to reduce my price? Have I overpriced my home?

In my experience, whenever the DOM (days on market) exceed 90 days, and especially when the DOM approaches 200, the first question everyone focuses on is the price. "Oh, it must be priced too high. Let's drop it and try to get some attention that way."

An overpriced listing is like death to a serious home seller, but sometimes the reason a home hasn't sold has nothing to do with the current price. Elsewhere, I've written about the danger of overpricing, and that should be a consideration, but there is a huge factor that may be far more important in "getting attention" from prospective buyers.

How well is your home being marketed? Is your marketing plan reaching buyers (wherever they may be) in this price range and for your area and for the floor plan and features of your home? If your marketing is ineffective, the price is not why your home has not sold. It's because buyers are not even aware of your home.

Anyone who reads my blog articles knows that one of my pet peeves is ineffective marketing of homes. So many FSBO's and so many practicing real estate agents think that simply putting a house in the MLS and in some local newspaper ads is all there is to this marketing business. Some think they have the secret key, because they've placed a few haphazard ads on the Internet. There's so much more to marketing and placement. There's so much more to knowing how to reach prospects on the Internet.

Why does a marketing expert like Jay Abraham get paid as much as $1 million dollars to draft one letter for major retailers? Because they can make an extra $200 million dollars in sales. Well, why not save all that money and simply pay a Boeing engineer to write a letter, or a retired sporting goods store owner, or a waitress? Because they don't know how. Period. It doesn't matter if they think they know, they don't. That's why Jay Abraham can charge so much. Because he produces results.

A homeowner may think they know about marketing. A real estate agent might present themselves as an expert who can sell someones's home. If they are wrong and don't know, who pays the price? The homeowner who is stuck with a house that hasn't sold. A Boeing engineer may be very smart about engineering, a retired sporting goods store owner may have been very successful in his business, and a waitress may be phenomenal, but are they marketing experts in selling their own homes in this market? Probably not. I'm sure they would admit that. [They might say, "I just want to give it a try." Red flag. Maybe I'll write about how listings go stale once they're overpriced, and no one comes back.]

I recently listed an incredible home with an unbelievable view of International waters. It was listed by another agent, but nothing happened for six months. So my client asked me, "Do I need to reduce the price." My answer was a probing question, "Was your house effectively marketed to your potential buyers?" His answer was a quick, "No." He knew it wasn't. My response, "Then we don't know if we need to reduce the price yet. First we market, then we adjust price if those buyers are telling us the price is too high."

If you had a home listed at $425,000, but it was not effectively being exposed to prospective buyers, you could drop the price to $400,000, and still you would have no activity, except tire kickers. You could drop the price 6 months later to $387,000, and still you would have no offers. How much money are you willing to lose until you actually sell it to someone who is just looking for a steal. It isn't always about price.

Selling your home is effective marketing plus a reasonable listing price. Effective marketing is not for the inexperienced. The difference between good marketing and poor marketing is 60 DOM or 324 DOM. It gets even better than that. The house that is on the market for a long time before it sells will also get a lesser price than the same house sold in 60 days with good marketing.

In today's real estate market, effective marketing is more important than ever. Either you, as the homeowner, must become an expert in marketing in all its facets if you are to sell your home in a reasonable period of time for the highest price, or you should be darn sure your Realtor is a true expert. Do you know how to discern the difference between a Realtor who is and who is not? [Hint: just because their lips are moving doesn't mean they are saying something that will help you sell your home.]

If you're selling your home soon, be careful. It's dangerous out there. There are many Traps for the Unwary, and a poor marketing plan is one of those traps.

Sequim Real Estate Agents

How many Sequim agents are there? By my last count there are 218 real estate agents in Sequim, Washington. Wow. That's one agent for every 18 Sequim residents (including babies), if you believe the city population of 4,000. Of course, most of the agents do serve a larger area outside the city limits, too.

Okay, let's qualify that a little bit. Sequim is a well known retirement community. While there is no data collected on this, it is my educated guess that about 50% of the Sequim agents are either retirees with an income who decided to get a real estate license, or their spouses have a retirement income.

The other speculation is that out of the 50% who are not retired and don't have a spouse with a retirement income, 50% of that group has an income from a regular non-real estate job. There's nothing wrong with being a part time real estate agent. That is popular throughout the U.S.

That leaves 53 agents who are not retired, do not have a retired spouse with an income, and who do not have an income from a regular job or a spouse with an income from a regular job (other than real estate).

Out of this group of 53 agents, how many are full time and earn 100% of their income from real estate commissions to support their family? Here again, I'm guessing that 35 agents is the answer. It's a small town and a small market, so to have 35 agents earning full time incomes to support their families is probably about right.

The Sequim Association of Realtors is one of the best managed associations in the state. It has been for years.

I raised my own family in Sequim and in my strong opinion, it is one of the best communities (all things considered) to live in anywhere in the country.

Courtesy Sequim & Port Angeles Real Estate, LLC

Recruiting Real Estate Agents in Sequim and Port Angeles

Sequim and Port Angeles Real Estate, LLC is currently accepting applications for the position of real estate agent. A limited number of agents will be hired. Compensation is commission only. Sequim and Port Angeles Real Estate is the newest, most innovative, and powerful real estate brokerage in Clallam County. Why?

1. Our entire focus is on our clients, not us. That means our business model, our customer relationship management, our marketing, and all that we do is designed with our clients' best interests in mind. We practice what we preach 24/7.

2. Our marketing is some of the most effective marketing in the business. We do not share our marketing secrets with our competition, and virtually no one is doing what we do as effectively as we are doing it.

3. Our designated broker has tremendous real estate experience that is unsurpassed. His experience goes back to the mid 1970's when he started his career in real estate as an agent and later as an associate broker while still in Alaska, then 20 years of real estate law in Washington, head of an escrow company, personally closed 100's of transactions, negotiated 100's (if not 1,000's) of real estate transactions, drafted real estate residential and commercial documents of all kinds, litigated most real estate issue agents deal with, acted as an advisor to top producing agents for 15 years, and so on. Enough of that.

4. We have the most technologically advanced staff of any brokerage on this side of the Columbia Gorge. This information is top secret, so it will not be revealed here.

5. While our clients are the center of mass for our business and all that we do, our designated broker also considers the financial, professional, and personal welfare of our agents a top priority. Not only do we train and mentor for success, our agents get paid 90% of their commissions. Our philosophy is that our work should be enjoyable and our relationships at this company will be healthy and productive and profitable relationships. We love our clients and we love what we do.

6. Our agents pay all their own expenses, and either work out of their home office or their own public office. Sellers want to meet us in their homes, so we can see them and evaluate them. Buyers typically want to meet at their hotel or coffee shop if they are from out of town, or we meet at a central location (the broker's office), and drive out to look at homes. Clients do not care about brick and mortar buildings. They care about effectively marketing their home for sale or finding their dream home. Our full business model, which is very extensive, will be shared only with our agents.

7. Because our agents get paid 90% of their commissions, and because we teach them how to keep their operating expenses extraordinarily low, it is highly probably that an agent's net commissions for the year could double (or triple) from their previous experience. We teach agents what they need to learn to earn a six figure income. It should be obvious that the owner/broker is keenly interested in the success of his agents.

Here is a short segment of an interview of the owner/broker of Sequim and Port Angeles Real Estate, LLC [read the full interview here]:

Blog Manager: Chuck, you did not join a major real estate franchise. Do you think people look for the big names?

Chuck: I'll tell you what clients have been telling me for nearly 30 years. They want someone who will help them find what they are looking for. They could care less about the name of a company or the size of the building. They don't sit in California or Arizona, or even in Seattle, and say, "Honey, let's call a big name franchise in Sequim or Port Angeles, and see if they can help us find our dream home at a rock bottom price." About 75% of buyers start their search for their next home on the Internet, and they're not using real estate portals or franchise websites. Like all of us, they are searching with Google or Yahoo. Again, it's not about me, it's not about the company, but it is all about the client and what the client is looking for. I have a completely different business model than 99% of the crowded brokerage business. For me, it really is all about the client, not me.

Blog Manager: Chuck, since you talk about serving your clients more than anything else, can I assume that you have free resources that people can check out?

Chuck: Absolutely. I offer an incredible amount of information absolutely free. People might be surprised. They can start with
SequimPortAngeles.com, and they can go to
SequimRealEstateBlog.com or
PortAngelesRealEstateBlog.com, and they can also find real estate law help at FreeRealEstateLaw.com, and there are more resources, but that's enough for now.

Blog Manager: Well, there you have it folks. Check out those websites, and thank you Chuck for sitting under the bright lights for us.

Chuck: My pleasure.

Applicants should email their Resume and a cover letter explaining why Sequim and Port Angeles Real Estate should hire them. Please email to chuckmarunde@gmail.com

Include your telephone number and email address. You will be notified if you are chosen for an interview.

FSBO - For Sale By Owner in Sequim and Port Angeles

Want to sell your home on your own? There's a new and exciting company in Port Angeles called "OlyFsbo.com." OlyFsbo.com serves the entire Sequim and Port Angeles areas with its powerful website and back office features. [Click on this graphic to view this website.]

What will you find on their website? Of course, there is a listing section so buyers can find your home on the Internet, but there are a host of tools to enable you to sell your home on your own. For example, you'll find a FSBO sales preparation guide, a FSBO Advertising package, legal forms of all kinds, guidance for sellers and buyers, and there's something you won't find anywhere else: 4sFsbo.tv call center which will schedule showings of your home for you.

This website is certainly worth a peek, and for the serious FSBO, I recommend it. The company is so new that some of the website is still under development, but you'll want to get on board right away, because the hottest months to sell are upon us.

Courtesy Sequim & Port Angeles Real Estate, LLC.

Are Homes Selling in Sequim and Port Angeles?

Are homes selling in Sequim and Port Angeles? In the first four months of this year sales are down. We all know that. I was going to write, "That's not front page news," but it still is. The market has taken a beating around the country, especially because of the mortgage fiasco. When sales slow down in California, Arizona, Texas, and around Seattle, our buyers have to postpone their plans to purchase their retirement homes here.

But exactly how much is Sequim and Port Angeles down in home sales? Here I compare the first quarter of each year since 2000.

This chart shows that home sales for Sequim and Port Angeles combined for January through April of 2008 are at pre-2003 levels. But let's face it--the real estate market really took off in 2003 through 2005 with great residual through 2007.

The market is down. No doubt. But consider this: in the first four months of this year 166 houses sold in Sequim and Port Angeles. Buyers are still arriving. That is good. Those who are at the retirement point and have planned to move here, are still coming, unless their real estate market is so slow they can't sell their homes.

The economy and the real estate market in the U.S. is amazingly resilient. I predict a reasonably good real estate market through the spring and summer in Sequim and Port Angeles. It is an excellent time to buy, and if you're selling, a good home in a good area has not lost value in these past months. The threshold of value remains strong.

Traditional Real Estate Brokerage is Dead

Traditional real estate brokerage is history, just like the Model T is history. Consumers know this. Home owners and buyers have known this for several years. What is interesting is that so many real estate brokers don't know this.

Real estate brokers who operate under the traditional model are still using a 20 year old business model, but the business world, and in particular, the real estate world, has dramatically evolved in the past two decades.

How does the traditional model market listed properties? This old worn out approach markets property by:

1. Entering it in the local MLS;
2. Advertising it once every 6 weeks in a little newspaper ad.

That's it! Let's pause here to answer the objection a traditional broker would immediately have at this point. He/she would say, "Oh, no. We do much more than that. We send out "Just Listed" post cards to neighbors, we send out price changes to other agents through our email system, we put the house on the broker tour, we hold an open house, we run ads in the newspaper, . . . we have it on our website, oh yes, we do so much more." They would also talk for several minutes in a fast and nervous voice, but when they finished, you would not be able to repeat what they said, because it didn't really seem to make sense.

Yadda, yadda, yadda. All of these things are just more of the same, and all of this is part of the 20 year old business model.

There's nothing wrong with such tactics, but the world has changed in the last two decades, and buyers and sellers have become very savvy. Buyers and sellers do not necessarily understand how the world has changed in real estate sales, or what marketing tactics work or don't work, but nearly everyone is aware that the traditional approach is no longer effectively connecting with buyers.

It's much more than just ineffective marketing that is at issue. A simple concept called CRM, or customer relationship management, became a popular subject about 15 years ago. The dialogue focused on meeting the client's needs and communicating regularly with the client during the relationship, keeping the client informed, building a positive relationship, and doing such a great job that the client would eagerly send referrals. Today, 15 years later, the vast majority of real estate brokers have NO customer relationship management system in place.

Again, consumers don't necessarily understand how it should be, but their gut feeling is that something is wrong, and they are not being treated the way they should be. Clients do not like being ignored for months at a time.

The 20 year old model focuses on the real estate agent, rather than on the client. For example, the old model suggests an agent promote himself or herself, brag about his sales record, or boast in other self-centered ways. But consumers have one question, "How are you going to help me sell my home?" Traditional real estate brokerage doesn't understand that it's not about me, the agent, but it is ALL about the client. The client is and should be the center of mass for all decisions made. It is the client's best interest that should be the focus.

Consumers sense this, and they don't like it.

The world has dramatically changed in the past two decades. Clients expect more. They expect brokers to sell their homes using cutting edge technologies and in such ways that strong and positive relationships are built during the process. Technology and the Internet have dramatically changed the way the real estate business is done. Most brokers are only slightly aware of the significance of this. In a feeble effort to demonstrate they are using the Internet, they have techies build a website that is no more than a static brochure on the Internet.

Consumers will not be fooled by counterfeits. Consumers are demanding more. How real estate is bought and sold is dramatically changing, and consumers know it. Unfortunately, most brokers and agents do not.

Jesse Memorial Strongman Contest

Sequim had a big event this weekend - the Jesse Marunde Memorial Strongman Contest with Strongmen coming from around the world, including:

Karl Gillingham, Magnus Samuelsson (who traveled from Sweden to Sequim), Dave Ostlund, Odd Haugen, Marshall White, Matt Parkes, Phil Pfister (who holds the World's Strongest Man title), Breck Gault, Grant Higa, and Corey St Clair. This is a list of Who's Who among the world's strongest men, and they came to Sequim!

Pictured here is first place winner and local strongman Marshall White with Jesse's son (and my grandson), Dawson, and Jesse's wife, Callie Marunde.

It was a great day as friends from all around gathered to remember Jesse and enjoy a good time in an informal strongman contest. Kevin Nee did a great job MC'ing the event with Callie Marunde. It was good for me, too, as Jesse's father, because I've been taking photographs of these guys at contests around the country since Jesse started competing.

Reward & Punishment

Once upon a time there was a little red hen who scratched around the barnyard until she uncovered some grains of wheat. She called her friends together and said, “If we plant this wheat, we shall have bread to eat. Who will help me plant it?”

“Not I,” said the cow.
“Not I,” said the duck.
“Not I,” said the pig.
“Not I,” said the goose.

“Then I will,” said the little red hen, and she did. The wheat grew tall and ripened into golden grain. “Who will help me reap my wheat?” asked the little red hen?

“Not I,” said the duck.
“Not my classification,” said the pig.
“I’d lose my seniority,” said the cow.
“I’d lose my unemployment compensation,” said the goose.

“Then I will,” said the little red hen, and she did. At last it came time to bake the bread. “Who will help me bake the bread?” asked the little red hen?

“That would be overtime for me,” said the cow.
“I’d lose my welfare benefits,” said the duck.
“I’m a dropout and never learned how,” said the pig.
“If I’m to be the only helper, that’s discrimination,” said the goose.

“Then I will,” said the little red hen. She baked five loaves and held them up for her neighbors to see. They all wanted some--in fact, demanded a share. But the little red hen said, “Now I can eat the five loaves myself.”

“Excess profits!” yelled the cow.
“Capitalist leech!” cried the duck.
“I demand my equal rights!” shouted the goose.
The pig grunted. Then they hurriedly painted “unfair” picket signs and marched around, shooting obscenities.

The government agent came and said to the little red hen, “You must not be greedy.”

“But I earned the bread,” said the little red hen.

“Exactly,” said the agent. “That is the wonderful free-enterprise system. Anyone in the barnyard can earn as much as he wants. But, under regulations the productive workers must divide their product with the idle.”

And they lived happily ever after. But the little red hen’s neighbors wondered why she never again baked bread.

Judgment Liens

Judgments against real estate come in a variety of forms. If a judgment is obtained in a superior court against an individual, it becomes an automatic lien on all their real estate in that county. When that property is sold, the lien has to be paid off at closing by the escrow officer, also known as a limited practice officer (LPO).

An LPO's nightmare is dreaming that it's midnight, a closing is at 8:30 a.m. the next morning and she hasn't started the title search. What a relief when she wakes up realizing it was only a bad dream. Actually every once in a while an LPO does look at the prelim' only to pinch herself, thinking, "This can't be happening to me." There's nothing like a little surprise judgment. Or, how about a mortgage still on the record and paid off but never satisfied? Try this: back in 1946 the property was sold on a bill of sale. LPOs love a challenge, don't they?

Here's a true story about how a title problem and a judgment lien got lost in the legal process. A superior court judgment was obtained against the defendant Pedersen, but there was a typographical error. On the judgment, "Pedersen" was misspelled "Pederson". [Wilson Sporting Goods v. Steven Pedersen]

The Pedersens filed a Chapter 7 bankruptcy, listing the judgment. Subsequently a Writ of Execution was issued and the sheriff levied on the Pedersen's real estate. Pedersen filed a motion to quash the sheriff's sale on the basis that the bankruptcy discharged the judgment. The trial court ruled that the judgment had never been perfected as a lien against the Pedersen's real estate because of the misspelling.

The end result for Wilson Sporting Goods is that they failed to perfect their judgment against the Pedersens, and they had the equivalent of an unsecured debt which was discharged in the bankruptcy.

Interesting . . . Brush up on your spelling skills, so you don't lose what you thought was a secured interest. How do you spell that? Johnson or Johnston? Jenson or Jensen? Benson or Bensen? Richard or Richards? MacDonald or McDonald? It makes a difference.

Sequim and Port Angeles Real Estate, LLC

Sequim Lots for Sale in Bell Gates on Bell Hill

Sequim lots for sale in Bell Gates on Bell Hill with a salt water view of the Strait and Protection Island, and all on 9.91 acres, and the CC&R's are approved for horses! No way! Yes way!

Where in the world are going to find such a lot? In sunny Sequim, Washington, of course. In this photo you can see Lot 8 of Bell Gates, which is just under 10 acres. This is a gated community with all utilities installed to the lots.
If you're familiar with Bell Hill, you already know that this is a prestigious and very attractive area. These next few months is migration time for retirees from California, Arizona, Texas, and even the Seattle Metropolitan area. That means this lot will not be available much longer.

This is the last large lot in this development and it is priced for a quick sale at $325,000. Did I mention this lot was assessed at over $500,000?

It's easy to get in touch with Chuck Marunde, Broker/Owner/Realtor, Sequim & Port Angeles Real Estate, LLC. You choose:

1. Call me at 360-775-5424 right now, or
2. Email me at chuckmarunde@gmail.com, or
3. Complete this data sheet so I can preview your property needs.

The Biggest Mistake New Builders Make

The biggest single mistake made by the homebuilder who builds his first home is this: to build a spec home in the highest price range, which is the smallest segment of the buyers' market.

Since January 1, 2005 through December 31, 2007 this chart shows total home sales in Sequim and Port Angeles, Washington in all price ranges at 2,310. The majority of homes sold were priced below $300,000. Homes priced above $300,000 represent 40% of the entire home buyers' market.

Here's where the mistake is often made. Building a spec home and listing that home at a price above $500,000 means the market for that home is only 9.0% of the entire buyers' market. The challenge is selling to that 9%, because that 9% is 100% of the market for that home.

I showed a home recently that was a spec home built by a first time builder and priced at $699,000. Let's round that off to $700,000. That home only has 3% of the buyers' market. Wow! That's a very very small segment of the buyers' market.

If you were building a custom home to put on the market as a spec home, would you target 3% of the buyers' market, or would you first want to know where 60% to 80% of the buyers' market is?

There is another challenge in finding the one buyer at this high price range. Buyers at this high price range will want a floor plan that is ideal for them, but the spec home only gives them one choice, a choice they may or may not like. Building a spec home for 3% or 5% of the entire market is a very risky proposition for a builder.

For the one buyer who falls in love with such a home (assuming one is found within a reasonable period of time, and in this price range a home like this could sit on the market for over a year), their negotiating power is far greater than they might realize, since they may be one in a hundred who find the home suitable in every way. Unfortunately, the builder has poured his heart and money into building a beautiful spec home, so his cost is going to be $175 to $220 per square foot, which brings us back to the buyer. At that price per square foot, a buyer may just choose to purchase a lot and have their perfect dream home built.

The Evolution of the Escrow Process

Escrow - the process of closing a real estate transaction in Sequim or Port Angeles.

In a previous life I ran an escrow office in Spokane and subsequently opened a law practice just closing real estate transactions. That was 23 years ago. In that time the escrow process has matured dramatically.

My first closings were completed on a typewriter. Remember those? I got basic loan documents from the lending bank, and I typed the rest of the loan package, all the closing documents and the closing statements for the buyer and seller.

It was a lot of work, and a typo meant using whiteout or retyping the document. I still remember what I got paid for doing a HUD closing--$150. Wow!

Then came computers, and several years later Al Gore invented the Internet. The escrow process went into warp speed, and everything is now neatly typed into software designed to create all of the closing documents, letter perfect, and print them all with the touch of a pinkie on the keyboard. Banks create their own loan package on the computer now and email it to escrow.

Even the math has gotten easier. In the beginning of escrow (that almost sounds like "in the beginning God created the heavens and the earth") I had to use a calculator and count days on a calendar hanging on the wall, and figure out how to prorate taxes and interest. Today software does all that.

Okay, while many things have been automated, closing a real estate transaction is not something you should try at home. It still takes an experienced escrow officer (or limited practice officer) to pull together all the necessary data and tell the darn computer exactly what to do.

There is one more precious lesson I learned closing real estate transactions: no two transactions are exactly alike. Every single transaction has nuances, and it takes experience to close a transaction correctly. Who is your escrow agent? (That sounded like an advertisement, didn't it?) Who you choose as your escrow company really is important. Choose carefully.

In a parallel universe during this same time period, software was developed to do something else quite extraordinary: to perfectly match up boys and girls based on 101 critical relationship parameters. While I am a bachelor, I'm still too scared to try such services, although I did take the free personality test.

Courtesy of Sequim and Port Angeles Real Estate, LLC

Real Estate and the Probate Process

A majority (70%) of homeowners have NO estate plan, except the state's statutory default plan. Almost as bad, the majority of those who do have an estate plan have a Last Will and Testament. Both have to be probated. So, what's the big deal?

Perhaps a true story will make the point best. A couple take care of the husband's elderly mother until one day she passes away. In those last months, the couple care for her with love and great personal sacrifice, even great financial sacrifice.

The mother left a sizable estate, and her written will divided her substantial estate equally among the four adult children. Seems simple enough, right? Every once in a while, and far too often, there is an adult black sheep in the family who is so dysfunctional, he or she will hire attorneys to get more than his or her fair share. So determined is such a person, he or she will intentionally seek to hurt and destroy the other siblings to get what he wants, which is more than the money. Usually such a person is full of hate deep down, unexplainable hate that motivates them to behave incorrigibly toward their siblings.

Greed is alive and well in the world today, and it finds fertile soil in a probate process that is subject to a defective judicial process, fostered by attorneys with their own agendas and judges who wouldn't know what Solomon's wisdom was if it bit them in the nose. It is in this fertile soil that the black sheep finds a support system to do his or her evil.

This probate lasted five (5) years, and the siblings' inheritance was eaten by attorney's fees and costs, and interestingly enough, by the black sheep's theft of much of the estate prior to their mother's death. That's too long a story to tell here.

There is no question that if the deceased mother had known what her adult child would do to her other children, and that that child would completely annul her Last Will and Testament, she would be rolling over in her grave. You can bet if she had know that her children's inheritance would go to attorneys, she would have burned the money first, or more likely, she would have set up an indestructible estate plan.

There are intelligent ways to make sure this never happens to your estate, but you have to create an effective and intelligent plan while you are yet alive. Avoid probate at all costs! Attorneys are quite famous for stacking up massive attorney's fees, and then they get paid first out of the estate funds. And while the average probate takes as much as 18 months, many take much longer.

Use techniques that avoid probate, such as the revocable living trust, the irrevocable life insurance trust, payable on death instruments, the right of survivorship (in appropriate cases), insurance benefits (life insurance payoffs are tax free), and there are many more.

Be sure that the title to your real estate is vested appropriately to accomplish your estate plan, and if you own a business, incorporate a business succession plan into your comprehensive plan. Create an indestructible estate plan, and do it today.

Not motivated to take action yet? Okay, let's try another approach. Think of the one attorney you dislike the most. Imagine buying him or her a brand new Lexus or Corvette with your money, the money you intend to leave to your own children. Wait, it gets even better. Imagine buying a Cadillac for your attorney, a Cadillac for the opposing attorney representing the black sheep, and a Cadillac for the estate attorney (yes, the estate as an entity gets an attorney too). Motivated yet?

Chuck Marunde, J.D.
Retired Real Estate Attorney
Owner/Broker/Realtor
Sequim & Port Angeles Real Estate, LLC
SequimPortAngeles.com

Sequim and Port Angeles Real Estate Selling

Are homes and land selling in Sequim and Port Angeles? Absolutely. Here is a vignette of this last weekend in my small world.

I sold four properties this past weekend, three of my listings in Port Angeles, and a house in Carlsborg, adjacent to Sequim.

The Port Angeles home is west of Port Angeles a few miles (see photo). The sales price was the full listing price at $425,000. This is a 4 bedroom home on over 2 acres with a 36 x 60 foot shop and covered RV Parking, fruit trees and adjacent to DNR property. [View more photos]

The two lots, consisting of over 5 acres total, sold to one buyer for $329,000. These lots are on treed property that has roads and all utilities installed. This property is also west of Port Angeles, which is becoming more and more attractive to buyers.

The Carlsborg home sold for $210,000 to a young couple intending to live in the home and use it for a permitted business use.

Real estate is selling, and buyers are alive and well in Sequim and Port Angeles. Here's an insider tip for sellers: your homes and lots are not selling through traditional advertising methods. Buyers are not primarily reading the papers and calling off large public display advertising. They're not attracted to 30 year old advertising techniques. In fact, they're turned off by such advertising, which they find a bit offensive. Ah, but that is all I can say here, because my competitors do not need a lesson from me, or should I say, I don't think I want to give them free training on this blog.

Are you selling a home or land in Sequim or Port Angeles? Call me at (360) 775-5424. I'm very easy to talk to, and there's no obligation at all. Just answers. Just a friendly and experienced voice of reason at this end of the phone.

What are you looking for in a Realtor?

How would you find a good experienced and professional real estate agent in Sequim or Port Angeles? Someone you could be sure was both competent and trustworthy? Who is the best Realtor in Sequim or Port Angeles?

The following are true stories from somewhere in the U.S. Only the names have been changed to shield the guilty.

True Story #1. An out of town couple hire a real estate agent to find their dream home. Their agent shows them a number of homes. They purchase and close on one they love. Later they discover the home is infested with pests, and the wood under the house in the crawl space is rotting because of excessive moisture and standing water. Their agent knew about this but did not disclose it. The buyers paid for the repairs out of their own pockets.

True Story #2. A widow purchases a home that turns out to have asbestos, but she has no recourse against her own real estate agent nor against the inspector.

True Story #3. A couple listed their land with an agent they found through a popular advertisement. Their land was listed for over a year but never sold. Out of frustration the couple did not renew the listing and decided to sell it themselves.

True Story #4. A couple listed their home with an agent, but months passed by and they didn't hear from their agent, didn't have any activity on their home, and didn't see any advertisements. They withdrew the listing, listed with another agent and sold the home within a matter of weeks.

What are you looking for in a Realtor? Do you know how to identify what you want in a Realtor? Or will you end up disillusioned with your agent?

By the way, the photo above is me . . . many years ago. Wow, I look so young. Looking for a competent and trustworthy Realtor? Interview me and ask me anything you want, and you decide. I don't have all the hair I had in that photo, but I do have the experience you might be looking for.

Email me at chuckmarunde@gmail.com or simply call me anytime at (360) 775-5424.
Website: SequimPortAngeles.com
Blog: SequimRealEstateNews.com or
PortAngelesRealEstateNews.com

Best Reasons for Security Gates

Sequim security gates, Port Angeles security gates for private roads and driveways--why have one?

There are four (4) major reasons, but most people would probably not guess the first one. A security gate serves more than one purpose, and the most common benefit and the most important benefit are not necessarily the same. Here are the reasons for a security gate in order of how often the gate returns a benefit.

1. A security gate stops garbage dumpers before they can dump wash machines, tires, and other garbage on your property, or on the drive to your home. People of low standards dump garbage every day on the most convenient rural roads, and they are almost never caught. Wash machines and dryers are very common, as well as tires, and lots of small junk, bags, paper, and rotting things. Not as common, but still popular, is the junk car or old vehicle parts. Here's an interesting piece of trivia: if a person of low standards has dumped junk on your property once, you can bet that the same thing that attracted that person will eventually attract another dumper. For this reason alone a security gate is well worth the money.
   
2. A security gate keeps recreational drinkers and drug users from partying on or near your home on Friday and Saturday nights. This issue can overlap, although not necessarily, with the next two reasons.
   
3. A security gate will help to keep 90% of all thieves from driving up to your home when you are absent and helping themselves to your prized possessions.
4. A security gate will substantially reduce the probability that a criminal will harm you or anyone in your home.
   

I took the photograph above on one of the back roads in Port Angeles. Who hasn't seen this kind of mess while driving around? There's no question that keeping your property clean and free of dumpers is the greatest use your security gate will get, although you will never know it since the gate doesn't tell you it deterred dumpers.

The most important use and benefit of your security gate will be to protect you and your family from physical harm. What price can one put on a security gate for this benefit alone?

If you live in the rural Sequim or Port Angeles areas, I recommend a private security gate. They are incredibly inexpensive compared to the great benefits you'll receive in the years ahead.

Accessory Dwelling Units

An Accessory Dwelling Unit is like a second small house on your property, and under a strict set of rules, you can have an ADU on your Sequim or Port Angeles property. The following is from the Clallam County Code:

In addition to the general requirements of CCC 33.50.030, accessory dwelling units shall be subject to the following requirements.

(1) Size.

(a) Size of Detached ADU. Detached ADUs shall not exceed fifty (50) percent of the gross floor area of the primary dwelling unit, nor exceed 1,250 square feet in gross floor area.

(b) Size of Attached ADU. Attached ADUs shall not exceed thirty-five (35) percent of the gross floor area of the primary dwelling unit.

(2) Density.

(a) The property on which an ADU is to be located must comply with the minimum lot size of the underlying zone. Parcels not meeting the minimum lot size may be allowed an attached ADU, but detached ADUs are prohibited.

(b) Outside of designated urban growth areas, the property on which a detached ADU is to be located shall be at least 1.5 acres in size. This standard may be waived by the Administrator where it can be demonstrated that the detached ADU will be served by a community water supply and community sewage disposal system.

(c) Inside areas zoned Agricultural Retention (AR), detached ADUs are prohibited except on lots that are subject to the agricultural retention development standards of CCC 33.07.010(4) to CCC 33.07.010(10), or where the existing parcel is thirty (30) acres or larger is size.

(d) Inside areas zoned Commercial Forest (CF), detached ADUs are prohibited.

(3) Occupancy.

(a) The owner of the parcel shall live either in the primary dwelling or ADU as their primary residence. For the purpose of this standard, “permanent residence” shall mean occupancy by the underlying property owner for no less than 120 days during a calendar year.

(b) ADUs may be used for occupation by family members, guests, renters, lessees, and estate caretakers/groundskeepers.

(4) Design.

ADUs shall be designed so that the appearance of the lot remains that of a single-family residential development through the following standards:

(a) All building entrances shall be located so that only one entrance faces the road frontage of the development.

(b) On-site parking area shall be provided.

(c) Access for vehicle ingress and egress shall share the same legal access onto a public or private road as the primary dwelling unit and no new access shall be established for the ADU.

[You can find links to all key real estate links in Sequim and Port Angeles at SequimPortAngeles.com Links.]

Port Angeles Homeowner Asbestos Victim

A Port Angeles homeowner recently discovered asbestos in the material used in her popcorn ceilings. When she purchased the home that was built in 1975, she had no idea that the home had health endangering levels of asbestos.

People who have been exposed to asbestos in factories and shipyards and who have inhaled high levels of asbestos fibers are subject to an increased risk of lung cancer, including mesothelioma, a cancer of the lining of the chest and the abdominal cavity, and asbestosis, in which the lungs become scarred with fibrous tissue. The risk of lung cancer from inhaling asbestos fibers is greater for those who smoke. People who get asbestosis have usually been exposed to high levels of asbestos for a long time. The symptoms of these diseases do not usually appear until about 20 to 30 years after the first exposure to asbestos.

How could this happen to a home buyer?

The homeowner said she had a real estate agent representing her, and she paid for a home inspection, but she felt like "no one was watching out for her interest." Estimates for cleaning up the asbestos and making her home safe to live in start at $5,000. After the down payment, loan costs, other closing costs, and with the "surprises" that already have cost her $10,000 before she could move into her home, an additional $5,000 is taking a tremendous toll on her.

Who is watching out for a buyer? Here are two traps for the unwary purchaser:

1. State law takes the real estate agent off the hook as far as the seller's representations in the Form 17 (Seller's Disclosure Statement) are concerned (and in estate sales like this one, a Form 17 is not required), and
   
2. Home inspectors have an escape clause in their contract, which states that they are not liable to the purchaser for such things.

This means a homeowner, like this woman, who relies upon professionals to protect her, may find herself the victim with no one else liable. Why do I write about this subject? Is it because I have a great interest in consumer protection? Not so much. It is because I have a soft place in my heart for widows who get victimized while everyone involved makes money off her.

Under the law real estate agents and inspectors in a case like this may have no liability at all, meaning they may in fact have complied with the law and done all that is required under their ethical codes. But under such a scenario as in this case, the homeowner gets thrown off the cliff, and everyone else gets a free pass. From the home buyer's perspective, something is wrong with this picture.

How can I emphasize enough the importance of working with professionals who are competent and trustworthy, and who in fact watch out for the client's best interests? In this case, it would only have cost $75 to test the ceiling for asbestos, but no one told the home buyer prior to closing. While the real estate agent and the inspector may not have been legally or ethically bound to tell the home buyer this, wouldn't it have been in the client's best interests to let her know her options? And where was the inspector in all this? Did he not consider the age of the house and the potential for asbestos? As between the parties, who has all the knowledge on these issues--a widow or a professional inspector or agent?

Be careful who you hire. You could end up a victim with no recourse, just like this widow.

Sequim Homes Sold 2003-2007

How many homes sold in Sequim in 2003 through 2007? The banner year for home sales in Sequim was clearly 2005. In 2007 a total of 345 homes sold, which is down significantly, but still a very respectable number. Buyers are still coming, and sellers are still selling their homes. You cannot have prices doubling every seven years without any pause. I suggest we are in a period of adjustment and stabilization, and that the Sequim market will find balance and then continue to move forward, although with not such rapid acceleration. And that is good. While rapid price increases are great if you plan to sell, for those who plan to stay, rapid price increases means higher and higher property taxes. That would not be good.

Foreclosures in Sequim and Port Angeles

Home foreclosures in Sequim and Port Angeles are in fact up, although not nearly so prevalent as in many other states. If your home is in default, none of the national statistics matter, and empty promises don't matter. One thing does matter: saving your home from foreclosure.

How can your save a home from foreclosure? Solutions for resolving the default range from reinstatement (bringing the loan current by catching up on past due payments), a workout with the lender, refinancing, paying off the debt in full, or selling the property, which has to be done fairly quickly to avoid the trustee's sale. If none of the above happens by the auction date, your property will be sold to the highest bidder, and typically the bank takes the property back for the amount of the debt.

If your home is in default, you cannot afford to experiment or fool around for months learning how these things work by trial and error. As a sword swallower might say, "Don't try this at home. You could get hurt." If your home is in default, find a professional who knows this stuff inside and out. Attack the problem right away. Procrastination will cost you valuable time, which you don't have right now.

To learn more about the foreclosure process in Sequim and Port Angeles, review these articles:

Short Sales and Foreclosures
Buying Foreclosures
The Legal Foreclosure Process

When you're ready for professional help from someone who is a real estate broker and Realtor, and who practiced real estate law for 20 years, email me or call me. I'd be glad to answer your questions, and maybe I can help.

Chuck Marunde, J.D.
Broker/Owner/Realtor
Sequim & Port Angeles Real Estate, LLC
618 South Peabody St., Suite I
Port Angeles, WA 98362
(360) 775-5424
chuckmarunde@gmail.com
SequimPortAngeles.com