Luxury Real EstateMarket Statistics April 28, 2017

Pierce County’s Over Million Dollar House Market is Heating Up

Jeff Williams and Mark Pinto were recently interviewed by Kate Martin of the Tacoma News Tribune to explore the current trends for the over million dollar housing market in Pierce County.  As the listing agents for three of the over million dollar listings that are currently pending sale in Pierce County, they shared insight about buyers for these luxury properties and their experience in the luxury market.

In recent months, dozens of million-dollar abodes have sold or are in the process of closing. If the pace keeps up, sales of homes worth a million dollars or more could eclipse the record of 86 sales set in 2007.

Where are these buyers coming from? Many fly in from other parts of the country, said Jeff Williams, a real estate broker for South Sound Property Group, part of Windermere Professional Partners. He works with fellow broker Mark Pinto.

“They could be coming for a job or lifestyle change,” Williams said. “It could be a second home for people who live in California.”

One historic home in Tacoma’s North End is listed by Williams and Pinto at nearly $1.3 million. Its sweeping views of Commencement Bay, and the Olympic and Cascade mountains drew 25 showings in three weeks — a pace unheard of just a few years ago, Williams said. The final sale price was not available.

Williams and Pinto work together to sell luxury and historic properties in Tacoma, Lakewood and Gig Harbor. They said the luxury or “trophy home” market has heated up in the county in the past six months to a year.

“I think it speaks to the confidence that people have in the market and the broader economy,” Pinto said. “They probably have been sitting on the sidelines in a house that they like, but they want to buy up to that aspirational house.”

Selling Your Home December 7, 2016

Why selling your house in the winter may not be such a bad idea

Redfin recently conducted a study looking at more than 7 million home sales over the course of the past four years to determine what impact, if any, seasonality had on the sales process.  Not surprisingly, the study confirmed that listing your home for sale in the springtime was likely to result in a quicker sale and a higher sale price (see full study here).  What was surprising to some is that listing your home in the wintertime was a close second.

“Among spring listings, 18.7 percent of homes fetched above asking, with winter listings not far behind at 17.5 percent. While 48.0 percent of homes listed in spring sold within 30 days, 46.2 percent of homes in winter did the same.”

The study goes on to say:

“Buyers [in the winter] often need to move, so they’re much less likely to make a low-ball offer and they’ll often want to close quickly — two things that can make the sale much smoother.”

That’s why we encourage our clients to have their houses ready to go on the market in late January or early February.  However, given the persistent shortage of housing inventory in the North End, we are telling our clients to list now if it makes sense for their schedule.  If you’re thinking about listing your home for sale in the next 6 months, keep in mind that most of your competition will choose to list their homes in the spring. Listing your home this winter could position you more favorably with motivated buyers who don’t have a lot of good inventory from which to choose.

 

 

Mark Pinto is a top-producing Realtor with Windermere in Tacoma specializing in the purchase and sale of historic and luxury homes.  Click here to e-mail Mark or feel free to give him a call at (253) 318-0923.

 

Buying A HomeSelling Your Home September 29, 2016

Severe Lack of Home Appraisers is Complicating Real Estate Transactions

Home inspectorDiana Olick of CNBC recently wrote an article that sums up the reason for frustration for many home buyers and sellers in the South Sound region.  Olick notes, 

“Housing demand is rising rapidly, but a key cog in the wheel to homeownership is in deep trouble. The people most needed to close the deal are disappearing. Appraisers, the men and women who value homes and whom mortgage lenders depend upon, are shrinking in numbers.

That is causing growing delays in closings, costing buyers and sellers money and in some cases even scuttling deals.

The share of on-time closings has dropped from 77 percent last April to 64 percent today for loans backed by Fannie Mae and Freddie Mac, according to Campbell/Inside Mortgage Finance. Appraisal-related issues in these delays jumped by 50 percent in that time.”   (Read the full article here)

Our advice to our buyers and sellers is to factor in a minimum of 2-3 additional weeks time from what we would consider a normal 30 day closing.  It’s important to note that it’s become an even bigger problem for specialty properties such as waterfront, luxury and historic homes and for properties located in outlying areas such as southern Pierce and Thurston counties.  With lenders being forced to pay premiums for appraisals, we’re hopeful it will lead to more qualified appraisers being attracted to enter the field.  However, that transformation will not happen quickly enough to satisfy those of us that counsel home buyers and sellers every day.

 

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.

 

Architecture May 9, 2014

What Makes a House a “Craftsman?”

As a Realtor who comes from Pasadena, California (the birthplace of Craftsman architecture), and a current member of the Tacoma Landmarks Preservation Commission, nothing makes me crazier than real estate agents who incorrectly market houses as a Craftsman.  It is our job as Realtors to understand houses!  Craftsman is a distinct historic architectural style, and 95% of the time does not apply to new or newer construction.
 
Since we have tremendous examples of intact Craftsman homes all over Tacoma, I thought I’d explain to you, our astute real estate clients and followers, exactly what defines a Craftsman, and why.  

 

History: The Craftsman was the dominant style for smaller houses built throughout the country during the period from about 1905 until the 1920s. It originated in southern California and most landmark examples of Craftsman houses are concentrated there. The style quickly spread throughout the country via pattern books and popular magazines, but rapidly faded from favor after the mid-1920s.  These residences were given extensive publicity in such magazines as the Western Architect, The Architect, House Beautiful, Good Housekeeping, Architectural Record, Country Life in America, and Ladies’ Home Journal, thus familiarizing the rest of the nation with the style. As a result, a flood of pattern books appeared, offering plans for Craftsman bungalows; some even offered completely pre-cut packages of lumber and detailing to be assembled by local labor (referred to as “kit” houses). Through these kit houses, the one-story Craftsman house quickly became the most popular and fashionable smaller house in the country.

Character Defining Features:   Although these are considered the most typical character defining features of a Craftsman, not all of these will apply to each Craftsman-style building.

  • Low-Pitched Gabled (or sometimes Hipped Roof)
  • Wide, Unenclosed Eave Overhang
  • Timber Framed
  • Triangular Knee Brace Supports
  • Wood Shingle Siding and/or Wood Horizontal Siding and/or Cut Stone Cladding
  • Wide Window and Door Casings
  • Tapered Porch Supports
  • Low Porch Pedestals usually Supporting Columns
  • Exposed Rafters
  • Decorative (False) Beams or Braces under Gables
  • Shed, Gabled or Eyebrow Dormers
  • Porches, either Full- or Partial-Width
  • Sloping (Battered) Foundation

 

Types of Craftsman:

 

Cottage Style Craftsman – Typically a one-story building with a compact rectangular plan; a centralized main entrance consisting of a partial-width porch and flanked by windows; a symmetrical facade; a side-gabled low-pitched roof; horizontal wood siding; and Craftsman stylistic details.

 

 

 

 

 

 

 

 

The Bungalow – The typical bungalow is a one-story house with low pitched broad gables. A lower gable usually covers an open or screened porch and a larger gable covers the main portion of the house. In larger bungalows the gable is steeper, with interesting cross gable or dormers. 

 

 

 

 
 

 

 

 

Clipped-Gabled (Hip Roof) Craftsman – A Craftsman building covered by a gabled roof which has had its gable point “clipped off.” The roof can be front, side or cross-gabled. Typically this type of Craftsman is a one-story building. Sometimes the clipped-gabled roof will have gabled, hipped or eyebrow dormers.

 

 

 

 

 

 

 

 

 

Colonial Craftsman – A Craftsman building which displays Colonial Revival features. Typically, this type of Craftsman has a trellised front and/or side porches, symmetrical façade and columns.

 

 

 

 

 

 

 

Aero-plane Craftsman – A Craftsman building with a set-back second-story and wide overhanging eaves which gives the impression of an airplane wings. This style can have a front, side or cross-gabled roof.

 

 

 

 

 

 

 

Transitional – A building which appears to be “transitioning” from the Victorian-era into the Craftsman-era. Typically, this type of house retains a vertical emphasis on the facade and Victorian-era design elements, but is differentiated by its Craftsman features.

 

 

 

 

 

 

 

 

Jeff Williams is a top-producing Realtor with Windermere in Tacoma specializing in the purchase and sale of historic and luxury homes.  Jeff is also a former board member of Historic Tacoma, and currently serves on the City of Tacoma's Landmarks Preservation Commission.  Click here to email Jeff or give him a call at 253-303-1135.

 

 

 

Investing In Real EstateNorth TacomaTacoma Real Estate March 11, 2014

Investing in Houses in Tacoma’s North End

The demand for rental homes in Tacoma’s North End is high, with landlords charging as much as $1800-$2000 per month for a nice three bedroom house in a desirable location like Proctor or the Stadium District. 

Many homeowners were able to secure extremely low interest rates by refinancing when the market was low, which prompts some to consider holding on to their primary residence as a rental property when purchasing their next home.  Residential real estate in Tacoma’s North End is certainly a great investment.  With the economy stabilizing and job growth expanding in our area, some are predicting as much as a 20% gain in market values over the next 3 years.  

 

So whether it’s a property that you purchase specifically as a rental or a primary residence that you’ve decided to convert into a rental, it’s important to ask yourself a few questions before deciding to become a landlord.

 

                5 Questions to Ask Yourself BEFORE Renting Your Home

1.    Do you know how to screen potential tenants?  Credit-worthiness?  Employment and rental history? You can find out more about tenant screening at Bigger Pockets.

2.    Will you allow pets?  Cats?  Dogs?  Large?  Small?  Allowing pets will obviously increase your potential applicant pool, but pets can take a toll on a house which might cost you more than it’s worth in the long run.

3.    If your house is located near the University of Puget Sound, will you rent to students?  You may be able to earn more income if you rent by the room, but you can also expect more wear and tear on the property.

4.    Have you talked to your insurance company to find out if there will be an increase in your premium if you convert to a landlord’s policy?  You can find out options from our preferred insurance agent Jerry Hallman at Farmers.

5.    Have you spoken with your accountant about the potential tax implications associated with owning and/or selling an investment property?  Capital gains taxes are easier to avoid when selling a primary residence than they are when selling a rental property.

Another route to consider would be purchasing a property for use as a short term rental.  The startup and maintenance costs (furnishings, utilities, supplies etc.) may be greater and the property will require more hands on attention, but the earning potential of a daily, weekly or monthly rental will be higher.  There are a number of sites available for marketing a short term rental, including www.airbnb.com, www.homeaway.com and www.vrbo.com.  Lastly, if you’re reluctant to deal with the active management of a rental property, you can always enlist the assistance of a property management company.  Locally we recommend Parkwood Property Management and McNally Property Management .  If you’re interested in purchasing an investment property, let us know.  We’d be happy to help you navigate the waters.

 

Mark Pinto is a top-producing Realtor with Windermere in Tacoma specializing in the purchase and sale of historic and luxury homes.  Click here to e-mail Mark or feel free to give him a call at (253) 318-0923.

 

 

 

North TacomaTacoma Real EstateWaterfont Living January 20, 2014

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.

Market StatisticsNorth TacomaTacoma Real Estate January 6, 2014

North Tacoma Home Prices End 2013 Just Above 2012

 
As we start the New Year, we thought it might be a good idea to take a quick look back at what happened to the housing market in Tacoma’s North End in 2013 and to make a few predictions about what to expect in 2014.  The market in Tacoma’s North End essentially took two steps forward and one step back in 2013.

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.

 

North TacomaTacoma Real Estate December 4, 2013

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.  

 
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.