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How Much is a Water View Worth in North Tacoma?
With market values in Tacoma’s North End on the rise, we’re often asked by our clients to “keep our eyes open” for a house exactly like theirs but with a water view. The implication being that if they found a view home that was as nice as their current residence, they would want to buy it. The follow-up question from them is inevitably, “how much more would that cost?” Well, that isn’t always an easy question to answer. When showing homes to buyers that are specifically interested in purchasing a view property, it becomes readily apparent that not all views are created equal. I did some digging and found an article published in 2011 by the Texas Association of Appraisal Districts that mirrors my experience with the Tacoma housing market. It states the following:
Market studies support the premise [that a view adds value], with one study concluding that . . . “in addition to square footage and lot size, view is the most significant determinant of home value.” A panoramic view (breadth and/or depth in aspect) tends to command the ultimate premium, . . . a near view of a prized view object is preferred over a far view, while the ability to see a far distance is prized over a vista that is foreshortened. Other things being equal, an obstructed (or keyhole) view will draw a lesser premium. A view only visible from the upper floor of a single family residence likely draws a lesser premium. A damaged view (a mountain view marred by overhead power lines or a junkyard in the foreground) will likely invoke a lesser premium. View orientation can influence value. It is said that the view from the “back” of a residence (where family rooms and patios are often located) is significant, while the view from the front door is less significant.
A study of 1984 – 1993 data from Bellingham, Washington found that a view added a 25.9% premium to home value. When the views were differentiated, however, the study findings were more informative: poor partial ocean view (8% premium), good partial ocean view (29% premium), unobstructed ocean view (59% premium), and water frontage (127% premium). (See the full study here)
I was curious to see if view homes in North Tacoma garnered this same price premium so I pulled recent sales data specific to the North End, comparing similar houses in the same neighborhood with and without views to determine pricing differentials. The exercise is a challenging one, but I was able to find three pairs of properties of the same size and condition but differing in view (see below for side-by-side comparisons). The view homes sold for 51%, 40% and 55% more than their non-view comparables for an average premium of 49%. My sample size is obviously too small to draw definitive conclusions, but I think the results do support the findings of the study discussed above. The results also echo what I always tell our real estate clients when they ask me “how much more for a view property?”… expect to pay at least 50% more for a great view property and be prepared to wait. Patience is everything.
| 7213 N. 25th Street
5 bedroom, 2.5 bath, 3,032SF Built in 1970, sold for $425,000 on 9/20/2013 View: unobstructed water view from rear |
1818 Skyline Drive
5 bedroom, 2.75 bath, 3,000 SF Built in 1965, sold for $282,000 on 12/13/2013 View: clipped, fully obstructed |
| 3009 N. 31st Street
3 bedroom, 1.5 bath, 2,006 SF Built in 1906, sold for $462,000 on 8/28/2013 View: unobstructed water view from rear
|
2210 N. 29th Street
3 bedroom, 2 bath, 1,820 SF Built in 1904, sold for $330,000 on 10/23/2013 View: obstructed partial view from 2nd floor |
| 3712 N. 39th Street
2 bedroom, 1.75 bath, 1,606 SF Built in 1916, sold for $460,000 on 07/31/2013 View: unobstructed water view from side and rear |
3905 N. 35th Street
3 bedroom, 1 bath, 1,358 SF Built in 1922, sold for $297,000 on 8/1/2013 View: none |
Jeff Williams is a top-producing Realtor with Windermere in Tacoma specializing in the purchase and sale of historic and luxury homes. Click here to email Jeff or give him a call at 253-303-1135.
North Tacoma Home Prices End 2013 Just Above 2012
The median sales price in north end zip codes 98403, 98406 and 98407 jumped from $212,000 in January of 2013 to $285,000 in July (a 34% increase). However, after the 4th of July, the market began to cool off. primarily due to buyer hesitancy given multiple offers on properties for sale in the spring and an increase in interest rates for home mortgages. After the slow down the median sale price had dropped to $222,000 by November.
Some neighborhoods held their gains better than others, most notably zip code 98406, but the current market as a whole looks much as it did at this time last year with respect to home values and sales activity. That’s not altogether a bad thing. A steady, measured recovery is more likely to be a sustained recovery.
Lawrence Yun, chief economist for the National Association of Realtors, predicts that strong job growth in 2014 will continue to drive the housing recovery (see the interview here). The foreclosure crisis is expected to draw to a close, and home values will continue to rise, albeit at a slower pace than they did in early 2013. Most pundits agree that mortgage interest rates, currently hovering around 4.5%, will top 5% by the end of 2014. With housing values and mortgage interest rates on the rise, housing affordability is admittedly beginning to decline. That means it could become more difficult for first time home buyers to enter the market, which could temper the recovery in some areas. The good news is that according to Zillow, an online real estate housing database, the Seattle metro area is predicted to be one of the hottest housing markets in the country in 2014,
Mark Pinto is a top producing Realtor with Windermere specializing in historic and luxury homes located in Tacoma, Lakewood and Gig Harbor. For further information contact Mark at markpinto@windermere.com.
Jeff Williams named to the City of Tacoma Landmarks Preservation Commission
Jeff Williams is a Realtor with Windermere specializing in purchase and sale of historic and luxury homes in and around south Puget Sound. Click here to email Jeff or give him a call at 253-303-1135.
The Value of a Garage in Tacoma’s Coveted North End
Homeowners in Tacoma’s coveted North End really like their garages, whether they’re attached or detached, one car or two. Some people use their garages as workshops. Others use them for overflow storage. Some people actually use them the old fashioned way – for parking cars. Regardless of how it’s used, the presence of a garage in Tacoma’s North End definitely adds value to a property. People love the North End of Tacoma for its character Victorian and Craftsman homes and its quaint tree-lined streets, but many of the older homes weren't built with a useable garage. Some of the garages that were built are narrow, single car structures. Others offer tandem parking in the basement, while some of the grander homes built at the turn of century have garages that were originally carriage houses.
If a home has no off-street parking whatsoever, it can be a deal-breaker for a lot of buyers, regardless of their price range. A carport may be acceptable, but that really depends on the design and security that the structure offers. The bottom line is that off-street parking seems to be the bare minimum that many buyers will accept, whether it's a garage, a carport, a driveway or just a parking pad. If it's a garage, the bigger and better it is, the greater the added value. Several of our listings have sold quickly in large part because they’ve had a good sturdy two-car garage. Other listings have languished if they’ve lacked a garage.
If you're buying or selling a home in the North End of Tacoma, you should evaluate the garage (or lack thereof) and make sure that the parking accomodations are factored into the purchase price. If you plan to make home improvements that have a good rate of return and you don’t already have a garage, consider adding one. We’ve seen appraisers add as much $30,000 for a garage if a comparable sale doesn't have one, depending on the size and useability of the structure. There are obviously guidelines and requirements that you’ll need to follow, but much of the investment that you make in a new garage will come back to you at the time of sale. For additional information about adding a garage in Tacoma’s North End, visit the city’s Planning and Development Services Department website.
List of Considerations When Buying or Selling Horse Property
1. Is the property impacted by wetlands? Most counties in Washington State prohibit grazing animals on, building on or clearing of wetlands. The presence of wetlands can also be an indicator of potential flooding. If you’re searching for a home during the summer months, wetlands may not be readily apparent.
2. If the property is served by a well, does the well produce enough water to accomodate the needs of a horse facility? Making sure there is an adequate year round supply of water is critical. It’s also important to verify that the water is not contaminated.
3. Is the property zoned within its jurisdiction for the quantity of animals you intend to maintain? If you plan to board horses for other people or run a tack shop from your farm, are those commercial activities allowed by the county?
4. Is the land you intend to use for outbuildings and pasture cleared? In Washington State, there are regulations regarding tree removal that can differ from county to county.
5. How does the house interact with the barn and arenas? In my experience, potential buyers don’t like it if the barn is sited too close to the house or too far away.
6. Think about equipment storage. The last thing you want to have to do is leave your tractors, trailers and tools outside in the elements, especially in Washington State. Make sure the property can accomodate equipment inside or at least in a covered shed.
7. Is the fencing sound? Wood fencing is beautiful and we all love it for safety and appearance, but replacement and maintenance costs can be crazy expensive.
8. Is the hay storage sufficient? The last thing you want to coordinate is a monthly shipment of hay. In Washington State, having a dry storage spot for hay is critical. Fog and moisture in the air can easily mold perfectly dry hay. Having a heated tack room is also important to help prevent molding of leather tack.
9. Check on manure disposal regulations before you buy. Many counties regulate manure disposal and storage, and this can be an added expense for the property owner. I’ve seen some properties that require disposal in dumpsters. You can imagine the costs associated with that.
10. If additional residences for farm workers are located on the property, is the property zoned for multiple residences and can the septic systems legally accomodate those dwellings. I’ve seen a number of properties where illegal septic systems have been installed to accomodate a mobile home for barn help because the zoning doesn’t allow multiple residential dwellings on site.
11. Look for rot everywhere! Poorly maintained structures that have improper wood to earth contact are frequently rotted. Don’t buy a pole barn that is sitting on rotted posts.
12. Consider the roads leading to the property. I’ve seen lots of properties on poorly maintained dirt or gravel roads that are lined by trees. Wind and rain are constant issues in Washington State so be sure that you can get a truck and trailer in and out during a storm and that emergency vehicles can get to you. Otherwise, tree fall could leave you trapped at your property for days.
13. Is the property wired for a generator? If you’re dependent on electricity at the property, be sure you have a propane fueled back-up generator. Losing your electric well pump and heat for the house after a major storm could become dangerous for you and your horses in fairly short order.
14. Are the barns and outbuildings legally built? By their nature, horse properties require barns, sheds, pump houses, etc. I’ve often seen structures that have been built without permit and that are considered illegal by county officials as a result. With these types of violations, you could be forced to remove the structures. Make sure all outbuildings, especially covered arenas, were built with permits.
15. Not so fast on adding that indoor arena! Very few counties in western Washington allow large free-span covered arenas to be built in an area that’s typically zoned residential. Check the codes before you buy a property with the intent to expand.
16. Does the property qualify for or is it currently tax assessed as an agricultural business? If the property is eligible for Ag status or if that is its current property tax designation, it can mean a significant property tax savings for the owner, but there are strings attached. Be sure you understand what qualifies the farm for its agricultural designation. If you’re selling an Ag designated property and the new buyer doesn’t continue that use, you may be responsible for property tax penalties when you sell.
17. Lastly, is your Realtor a horse person? Horse properties require specialized expertise so working with a Realtor who doesn’t understand the language and needs of equestrians will put you at a very real disadvantage. There are a number of marketing tools that I use to get my equestrian listings sold quickly. A Realtor who’s not familiar with equestrian properties won’t be able to offer you the same tools.
Jeff Williams has been riding and showing American Quarter Horses since childhood and is a top producing Realtor with Windermere in Tacoma, Washington. To learn more about Jeff’s equestrian background visit his website Jeff Williams Quarter Horses.
Words of Advice for First Time Home Buyers
If you’ve been thinking about buying your first home, you may be experiencing a whole host of emotions. Excitement, fear and confusion tend to top the list. The process can admittedly be daunting, particularly for first time home buyers, but it’s important to keep things in perspective. Step one – take a deep breath. Step two – recognize that timing the market “just right” is almost impossible. Let that go. Trust that there will be a time that’s right for you to buy, which may or may not be the right time for someone else. Just make sure the timing is right for you and the rest will fall into place. Step three – recognize that buying a house (like most things in life) involves compromise. Sometimes you have to compromise with the person you’re buying the house with. Sometimes you have to compromise with yourself. But something’s generally got to give, whether your price cap is $200,000 or $750,000. The first home you buy may not have a water view, but it could have a great backyard or an awesome two car garage. The goal of the exercise is to make sure the home has all of your “must haves” and as many of your “nice to haves” as you can afford. Understanding the difference between a “must have” and a “nice to have” makes things a lot easier. Step four – make sure you’re working with a realtor you trust. If you trust your realtor, the fear and confusion will diminish, which leaves more room for the excitement. Step five – enjoy the excitement.
-Mark Pinto of South Sound Property Group in Tacoma, WA has been successfully advising first time home buyers since 2003
Thea’s Landing – Waterfront Condos in Downtown Tacoma
Have you ever wondered about the multicolored contemporary building next door to the Museum of Glass on Dock Street? Well, wonder no more. The building is called Thea’s Landing, which makes sense given its location on the historic Thea Foss Waterway. The mixed use complex was built in 2002 and offers spectacular views of downtown Tacoma, Mt. Rainier and the Port. The building features shops and restaurants at street level, 189 apartments for lease and 46 privately owned loft style penthouse units. Restaurants currently include The Social Bar and Grill on the water side of the building and Paesan Kitchen and Bar on the street side. Penthouse prices range from $150,000 to $350,000, depending on unit size and view, and many have large balconies.
Building amenities include two separate fitness rooms (one for cardio and one for weights), a club room with a full kitchen, a library/media room, a business center, storage units (available for rent) and secure covered parking. Thea’s Landing offers easy access to the Dock Street Marina, the Glass Museum, downtown Tacoma and UW Tacoma via the Chihuly Bridge of Glass.
We were excited to hear that the same Tacoma-based group that developed Thea’s Landing has plans for a new mixed use project called The Henry next door to the Albers Mill Lofts on Dock Street. The new seven-story building will include 165 rental apartments and 12,000 square feet of commercial space. The building is to be designed by local architectural firm BCRA. Construction is slated to begin in September. If the project comes to fruition, it’ll be a very positive sign of economic recovery in downtown Tacoma.
Tacoma’s Historic Stadium District
Driving through Tacoma’s stylish Stadium district is a popular activity for out of town visitors and Tacoma residents alike, this writer included. The Stadium Seminary National Historic District was first listed on the National Register of Historic Places in 1977 and occupies the area between North I Street and the shoreline and between First Street and North Tenth Street. The district takes its name from Stadium High School, an iconic Hewitt and Hewitt designed French Renaissance structure originally built as a hotel in 1891. Construction of the hotel was halted before completion by an economic downturn in 1893. When a fire burned much of the existing structure in 1898, the city of Tacoma decided to re-purpose the building as a school. Stadium High School opened in 1906.
Jeff Williams has owned a historic 1900 Victorian in the heart of Stadium since 2005. He is a top-producing Realtor with Windermere in Tacoma specializing in the purchase and sale of historic and luxury homes. Click here to email Jeff or give him a call at 253-303-1135.
Why the Triangle Townhomes in downtown Tacoma are so great!
We had dinner Tuesday night with a friend of ours on her rooftop deck at the Triangle Townhomes in downtown Tacoma. We helped her purchase her unit there a few years ago, and she couldn't be happier. The Triangle Townhomes were designed by Seattle-based Johnston Architects and built in two phases in 2005 and 2006. The 27-unit complex is certified with the highest possible Built Green rating, using salvaged materials, an energy saving heating system and pervious paving stones to facilitate storm water management. Common areas have been kept to a minimum, reducing the amount of shared maintenance and helping to keep association dues low. Monthly dues are only about $100 and cover maintenance of the building exterior and the landscaping. There are no pet restrictions, and every unit has a dedicated attached garage.
The Triangle Townhomes offer spectacular views of downtown Tacoma, the Port of Tacoma and Mount Rainier. The complex also offers extremely easy access to the Grand Cinema, Corina Bakery, Infinite Soups, King's Books, Hound Hangout, Maxwell's, Wright Park and the light rail. Our client loves the diversity of the other residents in the complex – "young, old, gay, straight, singles, couples, families with kids, military types and snow birds." She loves the diversity of the neighborhood as well. She loves the fact that so much is happening around her – "on the street, on the roof tops, at the movies and at the bakery." Most importantly, she loves not having to drive to enjoy any of it. Truth be told, we've thought about moving there ourselves, which is probably the best testimonial any Realtor could give.
Jeff Interviewed by Fox 13 News Regarding the City “Flipping” Houses
I was was recently interviewed by Fox 13 News regarding a proposal going in front of the Tacoma City Council that recommends the city start "flipping" derelict properties. Given my experience flipping houses I feel that an $800K grant is not enough money for the city to impact the many derelict properties in Tacoma. I believe the money could be better utilized to provide incentives to private individuals to take on the projects instead. I will be working with City of Tacoma officials to further explore more realistic and concrete ideas on how to best utilize the grant money for maximum impact for the residents of Tacoma. Click the photo below to see the full story below. -Jeff
http://video.q13fox.com/Flipping-Rundown-Homes-25032736
