Incolo

See Seattle’s Most Expensive Home $25 Million

Justin Louie — Wed, 14 Oct 2009 18:49:39 +0000

I like to call us, “normies.” Normies are every single one of us who look at a home like this and simply stand in awe, and maybe, just maybe, one day, we’ll own one of our own. In fact, it could happen tonight… “In your dreams!” Ouch.

The most expensive home in Seattle is currently listed at $25M and what a magnificent home it is. Located on the northern tip of Mercer Island, it has a nice view of the upper half of Lake Washington and the Olympic Mountains. MLS #28184022, let’s start with the basics:

$25,000,000
22,779 sq. ft.
Beds: 5
Baths: 9

A thing to note: As homes cross the $1M mark, you’ll notice the number of baths rises above the beds.

To put this home in perspective, the average American home size in 2004 was 2,330 sq ft¹. Small warehouses and large homes are 7,000 sq ft. Imagine a medium sized department store and you have Seattle’s most expensive home.

This home features a grand entrance lined with granite tiling and large french doors, an in door swimming pool, and a glass chandelier by Dale Chihuly. If you’ve been to Lincoln Square, you’ll recognize Dale’s work as the chandelier hanging just as you walk onto the sky bridge leading to Bellevue Square.

From the wine cellar to the master bathtub, there is no detail left out. A personal gym to stay healthy, a walk in closet the size of a wing; in fact, it is a wing called the wardrobe wing. The home sits on 2 acres and has 175′ of personal Mercer Island shore. Quite possibly, it has everything that you could imagine.

Okay, lets imagine having a yacht then. This home comes with a dock with the ability to moor a boat 80′ long. Boats that size run anywhere from $1M-$40M depending what’s inside.

While the decor is nice and fits well with the house hold. Personally, I would get my interior decorator to redo the furniture, give it a modern update. Which begs the question, how much would it cost to redesign the interior of a home with a price tag of $25M?

I forgot to mention. The pools are salt water and heated giving you that fresh ocean feel. Sounds odd? Imagine a warm dip in the water of Hawaii’s beaches. It’ll be something like that.

Here, I leave you with the rest of the pictures.

Incolo hosts Carnival of Real Estate #161

harold — Mon, 12 Oct 2009 18:14:29 +0000

Incolo is honored to host their first Carnival of Real Estate. If you are not familiar with the Carnival of Real Estate its a fantastic website that helps surface the very best Real Estate blog posts of the week. We had some great submissions this week which included the upcoming tax credit, real estate investing, to treading real estate agents with respect. Enjoy Incolo’s top 5 blog posts this week:

Will the Market Come to a Screeching Halt on November 30th? VA Real Estate Talk, explores some interesting questions about the end of the $8,000 tax credit. Will the upcoming cold winter months also freeze the real estate market?
The Real Estate Novelist presents a humanistic look at what Real Estate Agents have to go through daily remember, Treat Agents Like Real People!
Did you know that when the rate for a 30 year fixed loan goes up the 15 year fixed loan might go down? Dan Green talks about this in his blog, Have You Compared The 15-Year Fixed Rate Mortgage To The 30-Year Fixed Rate Mortgage Lately?
The Dali Lama said, “Chase your vision. It’s not about money, although the money is nice and definitely necessary. But, ultimately, chase your vision and help others along the way.” Life as Real Estate Investors challenges us to chase after our vision – Engage Today: Chase the Vision Not the Money
Shauwn Digman shares his years of experience with contracting and real estate and provides practical tips if you ever thought of flipping a house – Estimating and Executing Rehab on a Single-Family Investment Property

Thanks for reading to the bottom! Be sure to submit your posts for next week’s Carnival of Real Estate,

$8,000 Tax Credit Countdown Widget

Justin Louie — Thu, 08 Oct 2009 04:58:21 +0000

Until December 1st rolls around the government is handing out up to $8,000 in tax credit to any first time home buyers. Many potential home owners are aware of the credit, but a lot don’t know when it ends nor how close it is until it ends.

Incolo has built a widget for you, the agent, to help capitalize on aiding people get Uncle Sam’s money.

What does this widget do?

Conveys urgency to home buyers. Lets you
Gets qualified leads to email you directly today.
Helps your clients get $8,000 of free purchasing power.

Place this widget anywhere in your theme or post by copying and pasting the code located here:

http://incolo.com/mtm/

Need help installing it? Contact jlouie@incolo.com.

Will the First Time Homebuyer Credit be Extended?

ebramlett — Tue, 06 Oct 2009 00:27:41 +0000

As the deadline for the First Time Homebuyer Credit looms near, many are wondering whether or not that deadline will be extended. After all, it is undeniable that the credit helped to give the real estate market the shot in the arm that it needed to start feeling a pulse once again. At the same time, many are concerned that the deadline came far too quickly for many interested people to take advantage of the credit. After all, finding and closing on a home can take several months and, since the tax credit was implemented so quickly, many people weren’t even made aware of the credit in time to take advantage of it.

As might be expected, many groups and organizations have been advocating for an extension to be made on the tax credit. Among the most vocal organizations are those that represent housing and real estate interests. This is quite understandable as it is already too late for many people to take advantage of this credit, as all of the new regulations and guideline that have been recently set into place have significantly increased the amount of time it takes to close on a real estate sale.

According to many sources, Republicans who had previously worked in the real estate business have been pushing for the tax credit deadline to be expanded. After all, the months spanning from December through February have historically been the worst months in the real estate market. Therefore, by ending the tax credit incentive at the end of November, the market will essentially be getting hit by a double whammy.

On the other end of the spectrum, those who are opposed to the extension are concerned about the country’s growing budget deficit and the amount of government spending that is already taking place. Therefore, those who are in favor of extending the deadline will their work cut out for them in terms of getting the opposition on board.

So, what are the chances that we will see an extension? According to many experts, we are likely to see some sort of extension to the credit, though it may not be to the extent that some would like to see. Already, Congress is talking about extending the deadline for military personnel. Too many, this serves as a promising indication that additional extensions will soon follow, making it possible for even more people to take advantage of this attractive tax break.

About the Author:
Eric Bramlett is the broker & co-owner of One Source Realty, a boutique Austin real estate brokerage. Eric currently manages his Steiner Ranch real estate site, his Austin blog, and works with select buyers, sellers, and investors.

8 Reasons to Stage Your Home for Sale

Justin Louie — Wed, 30 Sep 2009 22:41:14 +0000

You buy homes like you buy product. Roughly, the order of questions whenever you’re shopping is:

Do I want/need what I’m looking at?
Does it do the job that I’m looking for (feature sets)?
Is it the right price?
Does it look good?

Here, we look at question 4, and what part looks plays into the decision making process.

Staging can be pricey. Especially if you go with someone good. The designer alone can run on the range of $1400-$3000 and rental of materials as much as $300-700 per month. Is it worth it? Homes that are priced right still need to compete. Anytime you can remove people’s fears about purchasing a twix, a computer or a home, you’ll be that much closer to locking in the sale.

8 Reasons to Get a Stager… with Pictures!

You don’t wake up thinking, “I’m so glad I live in a dump.” Why would you want anyone else to think that about the home you’re trying to sell.
Unless you have an artsy, creative eye, I promise you what you produce will not hold a candle to a solid designer.
See what a few cans of paint and some updated furniture will do to an old home.
Most likely, your home doesn’t have couches, paintings or other materials that look and match this well. Designers can come in and aid what you currently have and replace what simply doesn’t work so well.
Take the guess work out of people’s minds. Show them where items such as the couch, the tv, or beds belong. If you want to leave room for imagination, empty out a single room.
Staging a home isn’t simply interior decoration, it’s making people envious of your place. Make people want what you have, and in this case, they can have it.
Stagers typically have a certain amount of inventory. Sometimes enough to stage 12-15 houses at the same time. Take advantage and rent it from them. Don’t needlessly throw money at the old home by buying fancy fancy furniture when you’re about to go into a new one.
Most pictures in the MLS or any other home listing service look like this:

Same builder; same building in fact. A stager, a few cans of paint, rented furniture, and a professional photographer. It simply does not compare:

A few tips:

If the stager recommends painting something, go out and do it yourself. You’ll save a ton of money.
Craigslist is a perfect place to find potential interior designers or stagers. Always ask for their portfolio
Get a professional photographer. Point and shoot is nice, but compare these pictures to those of a point and shoot.

Photos from Reasons 3, 5, 6 are compliments of Lisa Lucas Design – Interior Design and Home Stager.

Real Estate at $54,349 a Sq Ft.

Justin Louie — Mon, 21 Sep 2009 18:06:29 +0000

What do you think is the most expensive real estate in the world is? Whatever you imagine, per square foot, you won’t be able to beat $54K a sq ft. Oh, and the maintenance costs will probably run you around $300K per year as well.

But it’s okay, turns out you can get a volume discount.

The next closest piece of real estate runs a mere $4,413/sq ft in Monaco^1*.

So what will run you $54,349/sq ft? The Boeing 747-8.

The price of a 747-8 tops out around $308 M². When you get the plane, the usable area is a mere 5667 sq ft³. Seems like a good sized home? You’ll have to keep in mind the $308 M price tag.

This results with the $54,349/sq ft.

Not to mention this only gets you a bare plane. Whatever color you want and anything you want to stick inside is purely optional.

The pictures in this article are of a design concept by Boeing for the 2010 747-8 VIP airplanes. 22 are already on order and some are privately owned.

Vaulted ceilings, spiral staircase and wall mounted LCD TVs are just some of the luxuries these VIP planes can provide. In certain configurations, the main, double decker area (the ‘hump’ near the front of the plane) can be designed to incorporate skylights. Slight inconvenience of this configuration drops the square footage down to roughly 4,000 sq ft and raises the price to $77,000/sq ft.

This is kind of cheating, I know. It’s an airplane and not a home. But hey, who else can have a home at 35,000 ft?

* That article is in per sq m. A square meter is 10.78 times larger than a square foot.

** Pictures courtesy of the seattlepi.com

Asbestos Prevention Tips & Healthy Alternatives for Homeowners – from Asbestoes.com

Justin Louie — Tue, 15 Sep 2009 20:19:20 +0000

Found in millions of homes throughout the 20^th century, asbestos materials can still be a problem for homeowners in a variety of scenarios. Typically found as a form of insulation, piping, roofing and flooring, many older homes built before 1980 may still contain asbestos.

It can appear in dry wall, attic insulation, popcorn ceilings, electrical wires and roof shingles. Asbestos is still regarded as a hazardous building material. By taking a few precautions, you can prevent asbestos exposure in your home.

Some homes require inspections or renovations especially the ones that live near potential natural disaster areas. Many real estate agents are taking an active role to make sure potential home buyers obtain all the information they needs before purchasing a house.

Asbestos Tips

From the 1920’s to the 1960’s, asbestos was the insulation used due to its heat resistance and durable properties. Other materials such as adhesives or glues used in flooring materials contained asbestos as well. One tell is black or dark asphalt floor ties.

The best thing to do when discovering any asbestos or hazardous building materials is to leave it alone. Disturbing it could actually make the situation worse by making fibers airborne. The real problem becomes once those fibers are inhaled. If your home was built before 1960’s or believe it to contain large amounts of asbestos, a home inspection could be important for your safety and health.

Long term exposure to asbestos can lead to severe asbestos-related lung ailments such as asbestosis or mesothelioma. By the time a diagnosis of mesothelioma is made, the disease has progress significantly.

Before starting a remodeling project, have specialists analyze samples of material to determine whether a significant amount of asbestos exists within the building materials. If it is determined that there is, the removal of building materials must be performed by a licensed abatement contractor who is trained in handling toxic substances. In some rare cases inspectors might determine it is better to seal off the asbestos rather than remove it.

Abatement contractors are familiar with regulations protecting you, your home and themselves from exposure to hazardous materials such as asbestos. Wearing protective equipment, the area is isolated from the rest of the house by shutting down ventilation systems and sealing them.

The materials are always removed in pieces as large as possible placed in sealed bags. This is to minimize the mount of fibers that are floating through the air. With the asbestos gone, it is time to replace it with greener, heathier alternatives.

Eco-friendly Alternatives

Home owners desiring to remodel their home can discover a number of resources and companies who help in building with sustainable and eco-friendly materials. Implementing geener methods of building allow a positive environment and healthy living space for everyone.

Cellulose, cotton fiber, and lcynene foam are all recycled building materials viable for your remodel. Made from recycled batted material, fire rated cotton fiber is quickly becoming the material of choice for home builders.

Instead of using expensive woods, interior walls are being made from steel and concrete allowing builders to avoid many problems with asbestoes and other insulation methods. With the proper setup, it is completely insulated and eco-friendly allowing quieter and more energy efficient homes in the 21st century.

6 Tips to Modify Your Loan and Keep You out of Foreclosure

Urine House. The Great Investment

James — Thu, 03 Sep 2009 06:10:52 +0000

I checked out this home on a hot summer day, the home was musty, carpets dirty, and the heat only exemplified the smell of the urine in the home. From the condition of the home you can tell the previous owners did not leave on good terms with the bank. Look past the cosmetic imperfections and have alittle vision you are sitting on one heck of a deal.

The home is listed at $287K and it wouldn’t be unrealistic to get the home for around $270K. It has almost been on the market for 3 months and dropping in price every 2 weeks. Re-carpet the house, fresh coat of paint, minor cosmetic touch-ups all this can be down for under $15K. A four bedroom townhouse in the Issaquah Highlands for $285K is a great investment

Why Issaquah Plateau is Growing

Davis — Wed, 02 Sep 2009 19:06:00 +0000

Interested in Listing or Buying a property on the Plateau? Attached is a matrix examining different price points that is as MUST READ for prospective buyers and sellers. The results were a bit surprising to me in regards to inventory. This data is pulled from the Northwest Multiple Listing Service for July 2009.

I broke the market into three segments:

*Starter Home – $300k to $500k

**Move Up Home – $500k to $700k

***Starter Castles – $700k and up

Things I Expected

The days on market (DOM) increases for SOLD properties from 3.53 months on Starter Homes to 5.63 months on Move Up Homes. It jumps to a whopping 9.57 months on Starter Castles. The lower priced homes move faster- which is intuitive I believe.

The average dollar per square foot was $198 for SOLD Starter Homes- which is about 9% below the average ACTIVE and EXPIRED/CANCELLED price for that segment. Interestingly, the average discount for a SOLD house in that segment below original list price was 8.1%. Most of the Actives need to drop their price about $20-30k and expect to negotiate the final price another $20-30k below the last list price.

The average Starter Listing that Expires gives up around 5.5 months on the market, while the Move Up Listing Expires around the 6.4 month mark. The listings that quit give up around the 5-6 month mark.

I knew going in that the average dollar per square foot on the Plateau was $200. Sure enough, the Starter average dollar per square foot was $198 and the average dollar per square foot for Move Up Homes was $208.

Things I Didn’t Expect

I don’t know if July was an anomaly- but there is surprisingly little inventory out in the Plateau. There is only 3-4 months worth of inventory in the starter and move up categories. Under 6 months is the traditional measure of a buyer’s market. I am not claiming that it is a buyer’s market on the Plateau- but in July- using the traditional metric- inventory is quite low.

Another good sign- more houses sold in both segments than expired during the month of July.

Last, and this is not shown on the matrix- but the average discount off the last list price was only 3% for both the move up and starter segments. This discount remained steady whether the property had been listed for 30 days, 90 days or even 1 year! There were very few outliers. Houses that are selling are selling within 6% of the last list price with the average being 3% off last list price.

Homes Close 97% of Current List Price; Don’t Lowball!

Davis — Tue, 01 Sep 2009 20:48:08 +0000

Before you hit delete- I believe this chart is relevant to buyers and sellers in other neighborhoods and other price points as well.

I examined all the 55 Closed Sales in the Sammamish Plateau for the month of July 2009. For the sake of this analysis I zeroed in on the $300-500k market segment. One outlier was on the market for 3 years, I removed that.

First of all, the average discount off of the latest list price was only 3%. Meaning during the month of July, the average price a home closed at was only 3% lower than the price it was currently listed at. As you can see from the chart below- the trendline shows that the average house sold for 97% of the latest list price.

This means sellers and realtors are getting better at pricing, not perfect, but getting more efficient.

The horizontal (X-axis) measures days on market. The vertical (Y-axis) shows the Closed Price as a percent of List Price (List price being 100). The average days on market is 111 days or 3.7 months. The most any buyer paid was 103% above list and surprisingly only one property sold for more than 10% off the current list price. Only two houses out of 55 sold for more than 6% off of list price.

Many buyers think, “This listing has been on the market for 120 days. I can lowball the seller.” This chart debunks that myth. As you can see the, red trendline stays relatively flat as the days on market increase.

What this is not! This is not the % of the ORIGINAL list price. Here, I would expect a large downward slant, but what it does tell you is that the listing price that you currently is very close to what you will pay as a buyer if you are serious about actually closing. Seller’s are not negotiating offers more than 6% off of the last list price 96% of the time!

At the risk of stating the obvious, the most telling signal of what a seller will take for their property is the current list price. It’s not rocket science! In this market segment- the average list price was $427,000 and the average discount off the last list price was $13,000. When a seller holds a price out on the market they are willing to negotiate about another $10,000 to $15,000 off of the current list price and no more in this segment.

Perhaps the typical offer comes in $20,000 to $30,000 low and during the negotiations the two parties “meet halfway”- landing near the $13,000 mark. As a buyer- if you are coming in 10% low and are not willing to come up higher- it is very unlikely you will secure a house if you are a buyer. Seller’s have a floor- and it is somewhere around 5% below their list price. Don’t waste your time if you are not willing to come near the 97% mark.