Make a Good Life

What do you know about tideland ownership in Washington?

I spent time this weekend with two different clients who are looking at waterfront property.  One is very savvy about tideland ownership and the other was not.  Why do you care about owning the tidelands if you buy a piece of waterfront property (and for that matter, did you realize that you do not automatically buy the tidelands with each piece)?  For many reasons....Do you want to cultivate oysters or clams for your personal use?  Do you want the ability to lease out your tidelands for income?  Do you simply want to have control over what happens on your beach?  All are good reasons for wanting to own tidelands.

I have piles of information to share on this topic, links and publications as well.  Tidelands were granted to Washington when we became a state in 1889.  The state began selling off tidelands, a practice it continued until 1971 when the Legislature prohibited further sales.  Private ownership of tidelands and shorelands is limited to those parcels which were sold by the state prior to 1971.

Today 60% of tidelands in Washington State are privately owned.  Allegations of the mighty Taylor Shellfish infringing upon state-owned tidelands were brought to light this summer.  As a result, it was announced that Washington State Department of Natural Resources would undertake to inventory all state-owned tidelands and identify possible trespass situations (http://www.dnr.wa.gov/BusinessPermits/News/Pages/nr09_113.aspx).  Will the result be that some folks who thought they owned their tidelands find out differently?  Perhaps. 

More interesting tideland bits:

1.  American Indians are allowed to harvest from private tidelands (2nd class), a percentage of naturally occuring (not planted) shellfish.

2.  The difference between 1st and 2nd class tidelands is not quality, it is distance to the city limits of an incorporated city.

3.  Everyone has the right to use the surface of the waters.  Period.

4.  The state issues permits for buoys (sometimes) on state-owned tidelands as long as it does not interfere with boating traffic.

Any more information you would like, I can provide.  I have spent a lot of time (and money!) learning about waterfront lands and the stewardship of them.  See my link list to the right for more interesting links to waterfront resources.

2009 Profile of Home Buyers and Sellers...

NAR has recently released the 2009 Profile of Home Buyers and Sellers. The report compiles the results of 9,138 surveys returned by buyers and sellers who sold or purchased a home between July 2008 and June 2009. The surveys were sent to buyers and sellers based on public records.
Here are some highlights: (Nationally)

•· 47% of all buyers were first time buyers.
•· 62% of first time buyers reported that the primary reason for buying a home was the desire to be a homeowner, 35% of all buyers reported that as the number 1 reason.
•· The median age of all buyers was 39, same as last year.
•· 83% of all first time buyers are under the age 44.
•· 62% of all buyers are under age 44.
•· 77% of buyers purchased their home with an agent.
•· 85% of sellers sold their home with an agent.
•· 39% of the mortgages were FHA loans.
•· 87% of buyers viewed real estate as a good investment.
•· 90% of all buyers used the internet to search.

2009 Remodel Cost vs. Return Report is Out....

Last year I sent out a newsletter that included the 2008 cost vx. return for several remodel projects.  I had a lot of feedback and interest in the information, and I helped several clients decide upon remodel jobs with eventual resale in mind.

2009 finds us in a very remodel-friendly mood, with many homeowners opting to stay put in their homes because of negative equity positions.  I am happy to visit with clients to share what I know about returns of remodeling dollars and to provide the statistics provided by the National Association of Realtors.

Below is a small sampling of returns in the northwest area (Alaska, California, Hawaii, Washington and Oregon):

Adding an attic bedroom Cost: $60,135 Resale value: $52,749  Cost recoup: 87.7%

Adding wood deck  Cost: $12,838 Resale value: $11,744  Cost recoup: 91.5%

Replace front door w/midrange steel door Cost: $1,353 Resale value: $1,732 Cost recoup: 128%

And the lowest listed return:

Adding a sunroom Cost: $83,463 Resale value: $45,245 Cost recoup: 54.2%

Interested in learning more?  Just let me know.....

Photo borrowed from Rob Aubrey of Three Pounds of Real Estate

Carolina checking out the world's largest Sitka Spruce tree located in the rain forest near Quinault Lake in Quinault, WA.  This tree is over 1000 years old...and pretty impressive.  We had a great day on the coast then inland to the Olympic National Forest.  Reminders of why we chose Washington as our home......

Let's talk dual-agency...

 
Back in the day, real estate agents really all worked for the seller....The seller, after all, paid the commissions, while the lowly buyer was just a party to a contract already consummated by the listing agent and the seller.  After the advent of buyer's agency, which we now practice, the roles of the agents involved, and the rights of both buyer and seller to full agency, are clear.  Heck, we even hand you a booklet defining those agency roles.

Buried in that booklet is the paragraph defining "dual agency".  In layman's terms, dual agency happens when a real estate agent represents both buyer and seller in a contract.  Furthermore, but less often mentioned, dual agency happens when a BROKER represents both buyer and seller, having a fiduciary duty to both parties, as when two agents in the same office have both ends of the transaction.

I have always, since the beginning of my real estate career, espoused the danger of dual agency...and I do not DO dual agency.  If a buyer calls me up and wants to write an offer on one of my listings, great!  But my loyalty is always to my seller, with whom I have a written contract.  I advise the buyer of such, and if he still wants me to write the offer I can do so but must disclose to all parties that I am working on behalf of the seller and the seller ONLY.  The preferred and more popular option is for me to hand the buyer over to another agent so that the buyer has full representation.

Why would a seller allow his agent to perform dual agency?  Because they don't know better.  When I am on a listing appointment and I launch into the part about dual agency, most sellers are surprised. "Well that only makes sense, how can one agent represent the opposing goals of both a buyer and seller?"  Exactly. 

Why would a buyer allow that the listing agent would "write the offer up" knowing that the listing agent represents the seller?  What does it cost for the buyer to bring in an agent to represent him in the transaction?  Nothing. Yes...it can be argued that if you have the listing agent write the offer you may save money because the agent can negotiate the commissions with the seller and get your low offer accepted.  But I argue that the contract concerning payment of commissions is between the seller and the agent, and that you, as a buyer, bear no influence upon it, nor may you even know how much commission is being paid.  Just rest assured that the agent you are trusting to represent your financial interests is bound by legal contract to the seller.  Remember how, in that agent's office, you mused that you could go as high as $400k, but really wanted to get it for $395k?  Guess what that agent needs to tell his seller?  Now that you are an informed real estate consumer, you should not accept dual agency either as a buyer or as a seller.

There are obvious dangers to the agent in a dual agency transaction.  Dual agency is a slippery slope, fraught with disclosure issues.  And as a buyer you have lost your strongest advocate in the transaction, the agent who will hold your hand through the negotiation, the inspection and the financing mazes.  The dual agent is pushing you through each step, possibly minimizing inspection findings, talking to your lender (as an agent for you AND the seller)trying to get the deal closed....and with a full 5% or 6%commission for "doing both sides", there is strong incentive to do so.

Which answers the question of why an agent would do dual agency in the first place....money.  Pure and simple.  If I become greedy enough to forgo my commitment to full representation for all parties and accept dual agency and full commission, I will know it is time for me to get out of the business.  Remember this is my opinion only....Ask another ten agents and you will get ten different answers..;..

The X47 and my switch back to analog planners.....part 3

Here is is...my beloved and dog-eared X47.  I have had two inquiries this last week about it (one from Atlanta, GA and one from Israel!), how I like it, is it worth the money.  Yes, yes and yes....For something I use many times a day, I can do a cost analysis that will easily justify the start up costs.  This year all I had to spend money on were the refill planner books.....I can't remember the conversion from Euros, but I think it was about $20.

Email or call me with questions if you are having a hard time making the leap.  Leticia Hartman is the customer service person I end up emailing with at the X47 headquarters in Germany....she speaks English it seems, and is always VERY helpful and nice when I need to sort out my order in German.

Rescue an animal if you can...!

Saturday December 19th
Adoption Event
Come meet adoptable dogs and puppies we have rescued and are looking for loving homes for the holidays. All pets are spayed/neutered and up to date on shots, as well as microchipped and temperament tested.
Saturday, December 19th from Noon to 5 pm
Immortal Dog, 1712 S Jackson Street, Seattle, WA. 206-323-9112

These dogs have been rescued from high-kill shelters....Here is your chance to make a difference in their little lives....If you have the money, the space and the time, please consider adoption.  We all love darling pure-breds....but these guys need our help!  Make a donation to Under-Dawgz Rescue in Lacey and I will match it......

Print newsletters go out tomorrow....if you are on my electronic database and would like to also receive my print publications, just drop me a line!

Happy Friday!

Lend a Hand

If you are looking for a way to help a child, a family, an animal, a cause this holiday season...let me know. I have lists of local groups and individuals who can use your help, your time, your money, your used clothing and books...you name it. If you think you are having a bit of a squeeze this holiday season, learning of the great local need will really put things into perspective.

I spent a day volunteering at the Thurston County food bank last week with my office.  I met so many people there, standing in line for over an hour to receive their Thanksgiving boxes. I met a mother with six children whose husband was just laid off, a delivery truck driver trying to make ends meet for a large family coming over for the holiday, a retired school teacher on a fixed income, an Army vet. And....I walked to my car thankful to have it, then drove to my home thankful to be able to pay for it.

Lat year I published a list of links for local resources....If I find time today or tomorrow I will put it up again to make it easy!
 

These things could make you want to move...

 

Jumbo loan rates are down...way down. A jumbo loan is any loan over $417k. So no more complaining that the rates are not favorable, they are.  Is that enough to get you to call me to show you listings?
No? Well there is more....Have you owned your current home for five years? Then you also may be entitled to up to $6500 in tax credits with the extended and expanded first time homebuyer credit stimulus, designed to stimulate the middle market, but extended to include real estate up to $800k.
Still not enough to get you off the proverbial fence? Consider that inventory is high, waterfront prices are down as much as 30%, and there is a glut of mid to upper level real estate out there with good-looking price tags.

I am ready for the flood of calls and emails.......