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

Sequim MLS

Search the Sequim MLS (multiple listing service) for homes and land. Search over 1,500 listings for homes, land, and businesses for sale in Sequim right here:

Search All Properties in the Sequim and Port Angeles MLS

Search Properties by Address or MLS Number

With spring coming, now is the time buyers are coming here to look at homes and land, especially in these next three to four months. We get a significant number of buyers from California, Arizona, Texas (yes Texas), and the Seattle area who shop and buy in the spring months, which is now and the next few months. Find what you're looking for and email or call. It's a great time to buy here.

Chuck Marunde, J.D.
(360) 775-5424
chuckmarunde@gmail.com

Listen to Sequim and Port Angeles Real Estate Podcasts

Listen to audio tips on buying and selling real estate from a Sequim and Port Angeles retired real estate attorney. Here are some of the subjects covered:

Short Sales and Foreclosures
Well Logs
Clandestine Land Fills
Contaminated Ground Water
Buried Fuel Tanks
Buying Vacant Land
Protected Well Circles
Shared Private Wells
Speed Bumps
View Easements
Speed Bumps
Road Maintenance
Encroaching Branches
Trespassing Fences
Timber Trespass

Listen to the Sequim & Port Angeles Podcasts

This information provided as a courtesy of Chuck Marunde and SequimPortAngeles.com.

Best Bed and Breakfast in Sequim

Where is the best Bed and Breakfast in Sequim? Good question, and I may have the answer.

What do you look for in a Bed and Breakfast getaway? A country location surrounded by the beauty of nature? A lodge that sends you to another world with the ambiance of comfort and peace? A cottage of your own? A location near extraordinary recreational variety? Hosts that know how to make your stay absolutely delightful? A latte made to perfection just the way you like it?

Here's a quote from Sequim's most incredible B&B:

"Tender green shoots of daffodils are dancing in our gardens and the redwing blackbirds have returned to our ponds -- a sure sign that an early spring is warming its way across the Olympic Peninsula. After a day of cross country skiing or snow-shoeing at nearby Hurricane Ridge or hiking the mist laden Hoh Rain Forest trails in the Olympic National Park, the warmth of our great stone fireplace beckons."

I have never recommended a B&B before, but I am recommending Lost Mountain Lodge as Sequim's Best B&B, bar none.

You can learn more directly from their website at http://www.lostmountainlodge.com/.

You'll love your time at Lost Mountain Lodge. I guarantee it.

Port Angeles Open House

Port Angeles Country Home with Acreage, 259 Hunt Road, Port Angeles, WA 98363--Below Current Appraisal by $25,000 at $425,000
Open House: Saturday, April 12^th, 2008, 1:00 to 5:00
Directions: From Port Angeles West on Highway 101, Right on Highway 112, Drive a few miles and turn right on Place Road, drive about 1 mile and turn right on Hunt Road, drive to end of road (there's a 90 degree turn to the left before the end)
Need help with instructions? Call (360) 775-5424
View More Photos and Details

Port Angeles Water View Home + Mountain View, 1117 W. 11th, Port Angeles, WA 98363--Brand New 3,920 Square Foot Custom Home Offered at $569,900
Open House: Sunday, April 13^th, 2008, 1:00 to 5:00
Directions: From Port Angeles on the West side, drive West on 11th Street to 1117 W. 11th.
Need help with instructions? Call (360) 775-5424
View More Photos and Details

Print these instructions and take them with you.

Water View Homes for Sale

Sequim water view homes for sale and Port Angeles water view homes for sale: we have many for sale. Really that's no surprise, after all we do live on the Northern Olympic Peninsula, and we are surrounded by H2O. It's the mountains and the rolling hills that give our homes the elevation to have such incredible views of the Strait of Juan de Fuca, John Wayne Marina and the Port of Port Angeles.

During calendar year 2007, 926 homes sold in both Sequim and Port Angeles. How many of the homes sold have water views? Seventy homes sold in 2007 in Sequim and Port Angeles with a water view. In other words, 7.5% of homes sold have water views.

How many of the homes sold have mountain views? According to our local MLS, 328 homes sold in 2007 in Sequim and Port Angeles have a mountain view. In other words, 35% of homes sold have mountain views. What can I say? We have a lot of mountains here.

How many of the homes sold have both a water and mountain view? According to our local MLS, 131 homes sold in 2007 in Sequim and Port Angeles have both a water and mountain view. In other words, 14% of homes sold have both a water and mountain view.

Of course, the great variation and quality of these views would effect the value of homes sold, but beauty is in the eye of the beholder. For view properties currently available, search the entire Sequim and Port Angeles MLS of over 1,500 listed properties at SequimPortAngeles.com.

The Price of Professional Incompetence

Good people often have no idea how much money their professional adviser is costing them. There are three professions that are guilty of costing you, the consumer, a lot of money: lawyers, real estate agents, and financial advisers. (I've been all three.) This article is all about consumer protection.

Today, we only have time to focus on real estate agents. How can a real estate agent cost a client (you) money?

Two words come to mind--incompetence and arrogance. I have seen these two faults cost clients a lot of money over the past 30 years, but because the clients getting hurt are not my clients, and because I would be violating the code of ethics by contacting the other professional's client, my hands are tied, and all I can do is stand back and watch someone lose money by virtue of their own agent's advice (and control).

When my client decides what a reasonable offer is, we write it up, and I send it to the listing agent and call that agent to let him/her know the offer is coming.

Here's where disaster strikes for the victim client. Many listed properties around the United States are over priced, some are grossly over priced. When a reasonable offer is made, the listing agent who has grossly over priced a property, might not even sit down with his/her client and discuss the offer, the comps, and the options. I know of a case in which the agent simply called the client, and while I was not a mouse in the corner listening to the conversation, I can imagine how the conversation went. "We got a ridiculous offer. It's a low ball offer. I'm sure you aren't interesting in accepting it, but I'm obligated to tell you about it," or words to that effect. [I've practiced in several counties in Washington and in Nevada and Alaska.]

Of course, the client is going to reject the offer, but sometimes it gets even more interesting. I've had transactions like this where the other agent doesn't even sit down with his/her client and make a counteroffer--TO THE DETRIMENT OF THE CLIENT.

I've had clients who made offers, and no counter was made, and my clients were stunned, because they were in fact willing to raise their offer. Instead the listing agent essentially kills any further negotiating. On several occasions my clients were so turned off by the other agent's behavior (which involved rudeness), they went shopping elsewhere for property. There are plenty of homes for sale. HOW WELL DOES THIS SERVE THE SELLING CLIENT?

How do I know some selling clients are really getting hurt? Because I can think of one or more specific properties on which there were reasonable offers, and a year later those properties remained unsold and overpriced in a deteriorating market. HOW MUCH HAS THIS HELPED THE CLIENT WANTING TO SELL?

What's the danger for the public or the good homeowner who wants to sell? The danger is getting an agent who does this to you, costing you money, and all the while you, being a trusting and good person, think your professional is really knowledgeable and doing everything right for you. I have heard people say, "Why, he [or she] seemed so nice."

I guess the best lessons are the lessons we learn the hard way. Right?

[Do you have a story about how a professional cost you money? Email me at chuckmarunde@gmail.com. No names will ever be used in any of my articles to protect the guilty.]

Sequim Cage Fighter

Sequim has it's own professional mixed martial arts fighter, cage fighter Bristol Marunde. You may have seen UFC or IFL fighting on TV or cable.

I took this photo at his Saturday night fight in Shelton, Washington, April 5, 2008, while three famous fighters, Matt Hume, Rich Franklin, and Frank Mir watched Bristol's fight ringside. Bristol is my son.

It was an intense grueling two rounds as Bristol faced Noah Inhofer (Miletich Fighting Systems) , who took repeated punches from Bristol throughout the fight. Bristol has incredible power, speed, and technique, and Noah did extremely well facing a steady onslaught of punishment. Bristol clearly dominated the fight, but Noah did rock Bristol a couple of times with quick strikes to the face, a strong kick to the abdomen, and a solid kick to Bristol's left leg.

Most of the fight Noah was in defensive mode, largely because Bristol's attacks were intense and unrelenting for two rounds. They call it cage fighting, because both fighters are inside a cage from which there is no escape. Wherever Noah went, Bristol was there hammering, and when he wasn't throwing vicious punches, he was slamming Noah to the mat and showing the hundreds of fight fans what grappling and submission fighting is all about.

As I watched the fight, it occurred to me that Noah was facing his worse nightmare by trading blows with Bristol, unless it was grappling on the mat with Bristol. Come to think of it, getting in the cage with Bristol was probably not the safest thing Noah has done.

Just before the starting bell rang for the third round, Noah's corner announced that he could not come out.

I talked with Noah after the fight. He was very gracious and even apologetic for not being able to come out for the third round. He said he had been temporarily blinded in one of his eyes. We figured out that was because Noah had been hit so many times by Bristol's deadly strikes to the temple area around the side of his head. Congratulations Bristol for a well earned victory, and an honorable mention to Noah who fought well under the circumstances.

For you fight fans, see more of Bristol Marunde cage fighter photos from the Little Creek Casino in Shelton, Washington.

[While most of Chuck's writing focuses on his expertise in real estate, Chuck has also been a featured author and photographer for Ultimate Grappling Magazine.]

Worst Place to Own Property

Question: Where is the worst place to own a business in Port Angeles? Answer: Right next to a bridge that is being replaced when the construction may take an entire year. Eghad!

Imagine having a business on 8th Street in Port Angeles near the 8th Street Bridge, which is being replaced right now. You're at a dead end with the bridge out, so virtually no one will come to your place of business during construction--for a year! Of course, as you gaze into the deep deathlike valley below the non-existent bridge, the large sign states, "8th Street Businesses are Open During Construction." Yea, that's pretty funny. No?

I recently recommended to one of those business owners, who wants to sell, that she just hang on. No one wants to buy, and if they did, it would be for a song and a six pence. (How much is a six pence anyway?)

It gets better. Imagine having a business on 8th Street between two bridges that are both being replaced at the same time. I would guess some of those business owners feel like playing Russian Roulette. Working on a French slave ship doesn't sound so bad anymore.

Lesson for the day: Be very very careful where you buy a business property. Yes, location is everything, almost. There are only a few big rules in life, one of them being, "Never get involved in a land war in Asia." Now we know the other one, "Never buy property next to a bridge, but never never buy property between two bridges." [Rule 113 of Real Estate Investing for Smart People]

Real Estate Still a Great Investment

Almost daily I see articles in newspapers around the country about more scandals, another stock brokerage, financial services provider, or mutual fund paying some extraordinary penalty or huge settlement for fraud, misrepresentation, or some other criminal violations. The Wall Street Journal reported on August 29, 2006 [1] serious problems at Ameriprise, formerly known as American Express Financial Advisors. Securities America, an arm of Ameriprise, settled for $22 million dollars. The story is that David McFadden, a hot shot broker for Securities America was lying to Exxon employees about their retirement funds. Under McFadden’s management, Bradley Simon’s retirement fund dwindled from $700,000 to $267,000.

Or take another of McFadden’s clients, 73-year old Pat Salatich, a nurse for 25 years at Exxon. She deposited $565,383 with McFadden in 2001, and after only withdrawing $189,000, she learned there was only $73,000 in the account before she stopped the bleeding. She now lives on about $1,500 a month in social security.

Ron and Pam Yandell of Mansfield, Texas, turned over their $1.4 million retirement fund to a stockbroker who invested in risky tech stocks without their approval. They lost $230,000 in the tech crash. After a five year legal battle and lots of costs and stress, they won an award of $990,000 against their stockbroker, but no one can find him to collect it. He’s disappeared. [2]

Real estate prices may go up and down, but over the long run real estate has been a reliable investment, and real estate doesn't go "poof."

To be fair, I do know an asset manager who has a remarkable and consistent record of steady gains and no losses for his clients over many years, but he is the exception rather than the rule. Real estate is a good long term investment, and in times of uncertainty with a real estate market that slows down as it has in Sequim and Port Angeles, cash is king. Investors or home buyers who have cash and good credit will be the big winners.

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[1] A Star Broker, “Virtually Unsupervised,” Puts Ameriprise Arm Under Scrutiny, The Wall Street Journal, August 29, 2006, page C1

[2] A Word of Warning, The Seattle Times, September 3, 2006, page F1.

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Port Angeles Home and Shop For Sale

Port Angeles Country home For Sale with large shop. This is not a foreclosure sale but it is a distress sale. Motivated sellers. Located on the West side of Port Angeles, Washington near Freshwater Bay.

Disabled veteran puts his house on the market for a quick sale. This is a rare opportunity for the right buyer. Want to know more? Read on. This estate will be sold to the first firm offer of $425,000.

This home is a few miles west of Port Angeles on 2.27 acres, and it borders on 80 acres of State DNR land with a walking trail down to Freshwater Bay on the beautiful Strait of Juan de Fuca! This is almost too good to be true.

Imagine almost 2,600 square feet of comfortable country living in a contemporary 4 bedroom castle, a gorgeous living room with beautiful cathedral ceilings (as you can see from photos), a jetted tub in a large bathroom, a sweet kitchen, and . .

For the man of the house . . . there's a gigantic shop building, 36 x 60 feet with steel beams on the front of the shop (this thing is practically hurricane proof, although we don't have hurricanes here).

The garage doors are 14 feet high, and the shop ceiling is about 16 feet high. The inside of the shop is what you might expect of a man who uses it for working on equipment and vehicles, but don't expect a finished touch. If you want sheetrock and trim, you can do that with your own touch. Hey, be thankful the owner didn't sink more money into the shop, because this property would be a lot more expensive.

Want to see more photos and details? Go to Port Angeles Country Home for Sale.

Port Angeles Water and Mountain View

Port Angeles water and mountain view home for sale. How about a 3,920 square foot, 3 story, brand new custom built home with an incredible water and mountain view?

This home has so many classy features, and it has the highest quality materials and workmanship, you really ought to see this unique spec home.

The second floor is open space with water and mountain views from the dining room down through the living room, and out on the large deck with a propane connection for barbecuing.

How much you ask? $569,900.

Want to see more photos and more details? Go the Port Angeles Home For Sale with a Water View and Mountain View.