Vancouver Wa Real Estate Blog

Banks Get New Leeway in Valuing Assets for Vancouver Wa properties

The Financial Accounting Standards Board (FASB) has approved a rule change that allows banks to report on their income statements certain assets at their value in a normal market. They’ll only be required to write them down to market value if the drop is “other than temporary.”

The fall in asset values would be indicated on their balance sheets, but critics contend that the change will permit banks to put off recognizing losses from bad loans. Another change approved by the FASB will force banks to disclose the impact of the new reporting rules, though the extent of the disclosures remains to be seen.

Source: New York Times, Floyd Norris (04/03/2009)

via REALTOR® Magazine-Daily News-Banks Get New Leeway in Valuing Assets.

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An increasing number of appraisers and consumer experts say unrealistically low price estimates caused by short sales and bank-owned foreclosures are artificially depressing Clark County property values.

They are particularly critical of broker price opinions (BPOs), which they say are used because they cost less than property valuations by licensed appraisers.

David Berenbaum, executive vice president of the National Community Reinvestment Coalition, has asked Congress to outlaw using BPOs as a substitute for appraisals in distressed property transactions.

Defenders of BPOs say that real estate professionals know the local area and can do a realistic appraisal accurately.

The National Association REALTORS® said it intends to issue a policy statement in May, but it currently takes no position.

Source: Washington Post Writers Group, Kenneth R. Harney (03/28/2009)

via REALTOR® Magazine-Daily News-Appraisers Say BPOs Hurt Property Value.

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Green Building Practice for Washington Housing on the Rise

Energy-efficient home manufacturing could be one of the few industries to grow and thrive in the present economy.  Consumers are looking for dwellings that are both affordable and sustainable, while manufacturers are eager to reduce production costs as well as reliance on foreign energy. Sixty percent of commercial developers provide seminars to tenants to show them how to reduce costs and maximize efficiency.

In Turner Construction Company’s survey of real estate developers, agents, brokers, builders, and other industry experts, 83 percent said they would be “extremely” or “likely” to pursue the USGBC’s LEED certification for upcoming building projects, despite the credit freeze.

Findings from other studies conducted over the past year include:

Seven in 10 home buyers are likely to buy an energy-efficient home in an economic downturn.

More than 80 percent of commercial builders will invest in green building practices this year.

Source: RISMedia (02/26/09)

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4 Dangers of Broker Price Opinions for Washington Real Estate:

1. Not having a policy. Your broker should have a policy that spells out when it’s appropriate to prepare a BPO, what you can charge, who handles the fees, and who keeps records. Not having a policy is risky for you and your broker because state law could impose a penalty if BPOs are prepared improperly or mischaracterized. A BPO fact-finding group in Nevada found that in most cases, real estate professionals were preparing and getting paid for BPOs without their brokers even knowing about it. “There was no record-keeping,” says Pamela Kinkade, a member of the Nevada BPO task force. “And that’s a big part of our law.”

2. Using the wrong terminology. Appraisers determine property market value; sales associates preparing a BPO determine a recommended property price. Make sure that third parties aren’t calling your BPO a “market valuation,” which is the work of appraisers.

3. Breaking state laws. State regulations governing BPOs vary greatly. Nevada, for example, permits real estate licensees to prepare BPOs for clients only in a sales transaction. Many states don’t allow fee-based BPOs. Some states require that BPOs include a disclaimer that they are not appraisals and are not to be used for lending purposes. Certain laws also require that only appraisers provide an opinion of market value, and that BPOs must be limited to determining a purchase or sales price. Be sure to investigate what’s legal in your state.

4. Being uninsured. If your E&O policy doesn’t specify that it’ll cover liability for BPOs, get a policy that does. “Most brokers have no coverage for liability arising out of the purpose for which the BPOs are being done,” says Kinkade.

 Source: “Broker Price Opinions,” NAR Legal Affairs podcast, episode 18

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The $8,000 credit and the higher loan limits could result in hundreds of thousands of new buyers and move-up buyers coming into the Clark County Real Estate market this year, says NAR Chief Economist Lawrence Yun.

 But these two aspects of the stimulus are just the tip of the iceberg for real estate. The new law includes tens of billions of dollars in other assistance through a variety of programs that impact real estate, such as commercial real estate tax credits and grants for low-income rental housing.

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Vacant Clark County Properties Raise Insurance Risk

Rising vacancies in commercial property increases insurance risk and ultimately the cost of insurance, warns the Chubb Group of Insurance Companies.

Chubb Group points to studies by the National Fire Protection Association that show an average of 14,900 fires a year occur in vacant buildings, causing more than $118 million annually in direct property damage. In addition, theft, vandalism, water, collapse and wind losses increase in vacant real estate.

The insurer offers these suggestions for owners of vacant commercial real estate:

Read the policy carefully for any policy terms and conditions applicable to vacant property.

Notify the insurer that the property is vacant.

Remove furnishings and all combustibles from the premises.

Advise local authorities that the building is vacant, including fire and police departments.

Inspect the facilities weekly. Consider hiring a guard service to drive by daily.

Source: Chubb Group of Insurance Companies (03/13/2009)

via REALTOR® Magazine-Daily News-Vacant Properties Raise Insurance Risk.

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The housing market is looking healthier. Here are six reasons why now is the time to jump into buying Vancouver Washington real estate:

1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available.

2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.

3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.

4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.

5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.

6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.

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While trying to sell Clark County homes, staging the home with style is a great way to get an edge and get your home SOLD.

Model homes are important tools for builders because they help buyers fall in love with a home.  

Here are a few tips that might benefit anyone who is selling a home:

• A stylish kitchen appeals to many buyers. If a sellers has upgraded cabinets and granite countertops, that’s good. If they don’t, it may help to display some stylish touches like an espresso machine, a retro toaster or just some luscious fruit.
• Lots of light makes spaces feel larger. Turn on all the lights even during the day and add a few extra lights if necessary.
• The master bedroom should seduce a buyer. Play soft jazz, pile the bed high with a cushy comforter and pillows. Stack plush towels in the bathroom.
• Add drama to a bottleneck or a dead end space. Prop an oversize mirror against the wall. It visually opens a space and adds drama.

For more tips on showing your home see  http://www.crystalboldt.com/steps_to_a_positive_showing.php

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If you’re buying or selling Vancouver Wa homes in the off season and it  is stressing you out, relax.

Remember, sales volume is not your problem. The only house you care about is the one you’re selling or hoping to buy.

Real estate isn’t nearly as seasonal as it used to be. If a house is priced and marketed appropriately, no matter what time of year it is, there will be a buyer for it.

What’s more, many home buyers and sellers are bucking the seasonal nature of residential real estate. They’re finding that buying or selling houses in the fall and winter months has many advantages — not the least of which are the gorgeous fall leaf colors and holiday decorations that showcase many homes to their fullest potential.

No matter which side of the transaction you’re on, you can make the off-season work to your advantage. Here’s why: Read more…

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·         Home buyers - keep in mind that days run shorter during the fall and winter in Clark County. Plan on allowing more time to tour homes during the day and on weekends, rather than in the evenings after work.

·         Take time to visit the local schools, once you find a home you like. It’s much easier to get a sense of the schools and talk to administrators and teachers while school is in session.

·         Watch for signs of basement water damage or foundation drainage problems. Some areas have basement flooding in the spring, so you won’t see actual water in the basement in fall or winter, but you’ll see the effects of damage, such as discolorations on ceilings, walls or flooring.

·         Keep an eye out for good deals, especially if you’re looking at houses in popular warm-weather spots, such as the coast. Some buyers forget that it’s easier to get a good look at a house, and feel less pressured to make a quick decision, during the off-season.

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