Recently Warren Buffet advised Americans about one of his strategies to gain wealth by commenting, if it were practical to do so, I'd buy a couple hundred thousand single family homes.  That pretty much speaks for itself in the strength of real estate as an investment and as a safe place (now) to put your money.  Maybe you are looking for an investment instead of the stock market or you have been waiting for the bottom of the market to purchase a home for your family.  Either way, indications in the market suggest that it is great time to be participating and not sitting on the sidelines in the recovery of real estate.

Vicki

Buying investment properties can be an excellent way to invest right now, especially if you have the money to invest.  Many people have become disillusioned with the performance of their 401k's, stocks, and other investments.  It is actually possible to take an IRA or 401k and move it into a self-directed IRA model, and invest it into real estate.  With housing prices at a low, and interest rates at an all time low, savvy investors are venturing into real estate.  Demand for rental housing has been increasing, and certainly will increase when interest rates rise in the future --when interest rates price individuals out of the market.  Before buying that first investment property, there are some things to consider, and an experienced realtor can help.

The market is moving at a pretty fair pace in Olympia, Lacey, and Tumwater --particularly in bargain range of prices.  A low priced home may be a bargain, or it could be a symptom of condition.  If you are thinking of investing in a house, one has to view the price, the interest, and other aspects of the transaction as a numbers and business decision.  Houses that are in good condition and require little work can be rented and generate income until the value of the home appreciates and it can be sold.  It sounds cliche but that age old adage in real estate still applies to investment properties, location, location, location.  A good investment will be in the best location for renting as well as the best location for predicted development or appreciation to realize the best return on investment.  Of course, as with all investments, there are risks involved and the best recommendation is to involve your advisors in real estate law and taxes in any decision.  Budgets are important, as it the ability to carry the house during any periods of vacancy.  Landlord insurance is always a good idea, but it typically carries a slightly higher cost.  Another decision would be if you are going to be the active landlord or the passive investor using a property management approach.  If you'd like to learn more about investing in real estate, we offer regular classes on how to begin, and of course we are there with you every step of the way.

~Vicki

Adult children living at home is one of the main reasons that Dave Liniger, founder of RE/MAX, cites for helping the housing market in 2012.  Ordinarily 5 million adult children between 18 and 30 years of age, live at home with their parents.  Of course this means 5 million adult children who may very well want to be not only living back on their own, but also taking advantage of great homes and housing prices in places like Lacey, Olympia, Tumwater, and areas around JBLM.  At this point in our great recession, and in the current market, there are 29 million adult children at home.  That's a lot of parents and children who would like to see the improving economy enable them to purchase a home.  There has been a marked increase in real estate activity for the last several weeks.  Low prices + low interest rates = a great time to buy (and perhaps an empty nest...again!)  :-)

In our current market, there are several things you can do to increase the appeal of your home that is for sale.

• Pricing - in addition to location, location, location, the next most important point is price.  You may have added a new kitchen, remodeled a bathroom, and changed paint colors throughout the home, but if you are priced higher than the comparable homes in your area, buyers will look for the value in the home as much as the amenities.
• Curb Appeal - many buyers drive by a home listed for sale before requesting a showing.  Walk out in front of your home to the curb and take a good look.  Does the home needs some fresh paint, trimmed bushes, or general maintenance such as mowing or in the winter --raked leaves or shoveled sidewalks?  Appearances mean a great deal to a buyer and first impressions only happen one time.
• Move in condition - it is important to look at the interior of the home for the little things.  This means making sure that light switches, appliances, doors, plumbing fixtures, and cabinet drawers all work correctly and that they are consistent with local building codes.  Small things may seem trivial but they give buyers the impression that the house isn't well maintained.
• Consider adding value to your sale - you can make your home stand out from other similar homes by adding something of value to your sale.  This can be as simple as offering a home warranty or leaving larger appliances such as washer/dryer and refrigerators.
• Clutter - throw out or file stacks of newspapers and magazines.  Pack away most of your small decorative items, and store out of season clothing to make the closets appear bigger over packing them tightly.  Consider the use of a storage unit for excess furniture in order to make the rooms appear spacious, over using the garage for storage.

Sometimes it is just the simple things that work to improve your home and create an overall impression of better value in the buyer's mind, which leads them to making an offer on your home, instead of your neightbor's down the street.  This advice is as valid for Olympia homes, Lacey homes, and Tumwater homes, as it is in any other part of the country.

Vicki