~This Week's Featured Listing~

6991 Columbia River Road, Pasco, WA 99301
MLS# 154174 ~ $795,000

Amazing custom built home with panoramic views of the river, hills, and surrounding region. Timber framed interior with impressive beams and arches creating a character and statement like no other home. The kitchen says it all with a huge open island with seating for guests and family. The lower level features another complete kitchen off the family room and a theatre room that's just waiting for the next movie to be played.

Front of Home

Back of Home

Entry of Home

Great Room

Gourmet Kitchen

Beautiful Entry with Custom Architectural Beams

Living Area in Great Room

One of the Additional Bedrooms

Master Suite with Built in Gas Fireplace and T.V Nook

Master Bathroom

Lower-level Kitchen

View of Surrounding Mountains and the Columbia River

View from Back Deck

View of Columbia River

Richland Offers Help to First-time Home Buyers

The city of Richland is offering down payment help to low- to moderate-income first-time home buyers.

The Affordable Homebuyer Assistance Program is accepting applications this year for $4,000 for down payment help and applications for its infill housing list, which allows borrowers to qualify for up to $24,000 in gap assistance to buy a home. Also, borrowers who use Banner Bank for their primary mortgage might be eligible for another $6,000 for a limited time.

The U.S. Department of Housing and Urban Development provides money to the city for these programs, which are on a first-come, first-served basis.

More information and applications are available at http://www.ci.richland.wa.us/. Packets are also available by calling (509) 942-7580.

Source: The Tri-City Herald, www.tri-cityherald.com

Modify my Home in THIS Market?

What to consider before undertaking a remodel. With many areas of the country now in a down sales cycle, it makes a lot of sense to consider some changes that will make your home more comfortable -- for you but not necessarily the next potential owner.

In fact, aging-in-place renovation work is expected to provide one of the bright spots for residential construction as the industry eventually begins gaining ground, according to panelists at the recent National Association of Home Builders' remodeling show. If you don't have to move, brighten and lighten and enjoy your place until the market recovers. Don't spend all your energy on creating a new room that a potential new buyer might enjoy. Ninety percent of all remodeling projects take more than one year of appreciation in order to recover the costs of the improvement. And, some projects never even get close to becoming a financial wash. But don't get carried away with a pet project that you think may draw the eye of a potential home buyer. Make changes that you and your family can enjoy. In fact, it may be a good time to revisit your long-term housing needs and consider staying right where you are. Some older homeowners are just now beginning to think about ways to tastefully modify their homes to enable them to remain living independently -- and more safely and comfortably. Solutions to problems often exist, but people are not always aware of the products.

Home modifications refer to adaptations to homes that can make it easier for someone to carry out daily activities, such as preparing meals, climbing stairs and bathing, as well as changes to the physical structure of a home to improve its overall safety and condition. These project designs have come a long way. They are custom, attractive amenities that no longer sing out "an old person lives here" that can also enhance the resale value of the home. These improvements and alternations can serve all ages, hence the term "universal design."

For example, universal design features, or UD, include installing lever-style doorknobs and faucet handles, providing kitchen counters with different heights, placing electric outlets higher and light switches lower on walls and creating at least one no-step entry into the home.

Minnesota-based Lifease Inc. charges a modest fee for its online questionnaire, LivAbility, which allows homeowners to assess their needs and abilities and then obtain personalized suggestions to improve their living environment. After the questionnaire is completed, the Lifease engine selects solutions based on the input. The resulting report includes ideas and products for safety, convenience, comfort and independence in the home. Low- and no-cost solutions are listed. If the solution is a product, Web sites are given for the supplier with a range of prices. If appropriate, the rationale for listing the product is included. Another company, Florida-based SAFE Aging Inc., has developed a questionnaire for older adults, which identifies potential risks or hazards that can threaten health, safety or function in the home. The Safety Appraisal For Elders (SAFE) can be completed privately at home, with or without assistance, and is also modestly priced.

Homeowners of all ages have roots in their communities and strong emotional ties to their homes. Few people want to move solely because their house no longer fits their needs. The problems faced by older individuals are compounded by the fact that they live in the oldest housing stock. These homes may have deferred maintenance, with roof or plumbing leaks, heating deficiencies, or dangerous electrical problems in addition to a lack of adequate lighting, railings, storage and other accessibility concerns. Modification needs often get lost among many other pressing maintenance items, prolonging dangerous arrangements that may lead to falls and subsequent isolation.

The way we live and work has changed dramatically in the past decade and our expectations of our homes have changed, too. If you are dead set about selling your home at some point down the road, don't gamble that your taste in a new kitchen, den or master suite will match the desires of the potential home buyers that come through your door. Don't waste your time -- or jeopardize your money -- by undertaking remodeling projects in an attempt to draw potential home buyers to an open house. It takes too long and you could easily guess wrong.

Copyright © 2008 Inman News - Tom Kelly

The Top Reasons Homes Won't Sell

For some, lowering price is only way out.

It's a challenging home sale market for sellers in many areas around the country. Sellers who are having difficulty selling have several options.

The first goal is to find out why your home isn't selling. Ask your listing agent for information about listings similar to yours in your neighborhood that sold within the last three to six weeks.

You need to know the facts about listings that have sold and closed and those that went pending during this period. A pending sale is one where the sellers have accepted an offer, but the sale has not yet closed.

Pending sales are an indicator of the most recent market activity in your price range. If you find that listings like yours have sold during this time period then there is either something wrong with your home or your home isn't priced right for the market.

Your agent should talk to agents whose buyers considered your home but bought another listing instead. Find out why they didn't choose your home. If you get feedback that your home doesn't show well, do what you can to enhance its appeal. You might consider temporarily withdrawing your home from the market during the makeover.

You may discover that your home has an incurable defect, like a location next to a freeway, or a long flight of stairs from the garage to the front door. There's nothing you can do about this except adjust the price.

In many cases, the main reason a home isn't selling is the list price. Most sellers have an emotional attachment to their homes. This can cloud their judgment about its current market value. Another factor influencing sellers' objectivity about the value of their homes is denial.

According to the recent Q4 Homeowner Confidence Survey conducted by Zillow.com, 49 percent of U.S. homeowners didn't think their homes lost value during the past year. In reality, 74 percent of U.S. homes lost value over the past year.

HOUSE HUNTING TIP:

Sellers who are serious about selling should adjust the list price of their home as soon as the data indicates that the price is out of line with current market conditions. This is recommended even if the listing has been on the market only for a couple of weeks.

It's risky to wait to make a price adjustment to see if conditions improve. The market is continually changing. But, this means that the market could deteriorate before it gets better. Waiting to bring the price down so that it's in line with the market could mean selling for less.

An insignificant price reduction is unlikely to trigger a sale. To have an impact, the new price should undercut your competitor's prices so that your home is perceived as the best value in the neighborhood. Usually, a price reduction of less than 5 percent won't bring about the desired result. Seller's who make a series of small price reductions can end up chasing a declining market.

Another option for some sellers is to take their home off the market before the holiday season and bring it back on the market next year. But, the holiday season can benefit sellers who keep their homes on the market because the inventory of listings usually drops off at this time of year.

Also, there is no guarantee that next year will be better. Some economists think that we haven't yet hit bottom in the housing cycle and that the median price could drop another 10 or 20 percent in 2009 before the market turns around.

Copyright © 2008 Inman News - Dian Hymer

Tax Credit Could Unleash Home Sales

If all home buyers become eligible for a tax credit without a repayment feature, it could result in an additional 555,000 home sales, enough to meaningfully draw down excess housing inventory, the NATIONAL ASSOCIATION OF REALTORS® says. An evaluation of options for a home buyer tax credit by NAR shows wide ranging implications and benefits. A full credit to all buyers means an additional 2.22 million households would meet the income requirements for purchasing a home, but only one in four of those households would actually make a purchase. Under the current $7,500 first-time home buyer tax credit, which must be repaid over 15 years, 264,000 households meet the purchase requirements. Using the same assumptions, with plans to hold their home for a median 10 years, it would mean only 66,000 additional sales.

Lawrence Yun, NAR chief economist, said NAR is advocating a tax credit for any home purchase meeting qualifying underwriting standards. “A home buyer incentive is critical to help reduce housing inventory and stabilize home prices,” he said. “The bigger the incentive, the faster housing can help pull the economy out of recession. The cost to the Treasury would be far less than the additional costs of a prolonged recession with insufficient housing stimulus.”Analysis of other options shows that if only first-time buyers are eligible and the repayment feature is dropped, it could mean an additional 202,000 home sales. If extended to all home buyers but the repayment feature is retained, the gain would be 181,000 home sales.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said a flexible approach to the tax credit would have added benefits. “A home buyer tax credit also should be allowed to be used as a part of downpayment. This would instantly add an equity cushion for homeowners – a vested financial interest provides the foundation for sustainable homeownership, which helps improve economic stability,” he said. NAR estimates only 25 percent of newly eligible households would become homeowners, and does not capture the effect of increased trade-up buying activity. As such, these projections may understate the full impact of a home buyer tax credit.

Source: National Association of Realtors, http://www.realtor.org/

30-Year Mortgage Rates Fall Below 5%

Mortgage rates dropped to their 11th straight weekly decline, reaching new record lows, according to Freddie Mac. Interest rates on 30-year, fixed rate mortgages averaged 4.96 percent this week, down from a previous week's 5.01 percent.

The low rates have caused a spike in home refinancing loans and a welcome relief to cash-strapped home owners facing a slowing economy and rising unemployment rates.

"The fact that interest rates have dropped to a record low is an important development since more affordable home financing could help bring buyers back to the market and prevent some of these foreclosures," says Lawrence White, professor of economics at New York University's Stern School of Business.

Other rates were mixed for the week:
15 year fixed rates: averaged 4.65 percent, up from 4.62 percent.
1-year adjustable rate mortgages: fell slightly averaging 4.89 percent from 4.95 percent last week.
5/1 ARMs: averaged 5.25 percent compared with 5.49 percent last week.

Mortgage rates have continued to drop ever since the Federal Reserve announced a plan in December to buy up $500 billion of mortgage securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae—the government-sponsored enterprises.

Source: Reuters, Julie Haviv (1/15/09), http://www.realtor.org/

Fed Action Creates Best Interest Rates in 50 Years

The National Association of Realtors® applauds the actions of the Federal Reserve Board in lowering interest rates for home buyers and homeowners who need to refinance. This will significantly impact housing sales, home valuations, and the nation’s overall economy.
The Federal Reserve is purchasing large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets.

“NAR has been aggressively calling for mortgage rate reductions, and the Fed’s action to slash interest rates, coupled with the actions by the Federal Housing Finance Agency and the Department of the Treasury, has driven down interest rates to make the dream of homeownership once again attainable for thousands of Americans,” said NAR President Charles McMillan.

Mortgage rates, which had averaged 6.3 percent in the third quarter, have recently fallen into the 4 percent range in some parts of the country. “That is the lowest rate in nearly 50 years and will bring buyers back to the market,” McMillan said. “We are pleased that the government heard our message and responded to our call for action.”

NAR has estimated that a one percentage point decrease in mortgage rates will increase home sales by more than 500,000 homes. “To boost the economy, it is critical to stem the rising tide of foreclosures and boost home buyer confidence in the housing market.” McMillan said. “Lower interest rates coupled with increased foreclosure mitigation are the key ingredients to stabilizing the housing market and preserving communities and homeownership.”

NAR continues to call on the federal government to maintain the higher loan limits passed in the economic stimulus bill earlier this year and to expand the $7,500 tax credit for first-time home buyers to all buyers and to eliminate the credit repayment requirement. “Together, all of these actions will stimulate and stabilize the housing market and begin an overall economic recovery,” McMillan said.

Source: Mary Trupo, "Fed Action Creates Best Interest Rates in 50 Years, Realtors® Report," Dec. 17, 2008. http://www.realtor.org/press_room/news_releases/2008/fed_action_creates_best_interest_rates,

National Association of Realtors Challenges Fannie Mae Fee Increases

The National Association of Realtors® Challenges Fannie Mae Fee Increases On January 2, 2009, NAR President Charles McMillan wrote to the Director of the Federal Housing Finance Agency, Jim Lockhart, to express REALTOR® concerns about the increased fees for mortgages purchased or securitized on or after April 1, 2009. Director Lockhart is the federal conservator and regulator of Fannie Mae and Freddie Mac (the government sponsored enterprises, or GSEs). The letter questions whether it makes sense, from a policy standpoint, to increase fees considering the mission of the GSEs to promote affordable homeownership. It also explains NAR's concern about the lack of any explanation of, or justification for, the Fannie Mae decision. NAR is urging Director Lockhart, in the absence of a compelling justification, to require Fannie Mae to rescind the fee increases and to direct Freddie Mac not to raise its fees.

Source: Jeff Lischer, "NAR Challenges Fannie Mae Fee Increases," Conventional Residential Lending Report, Jan. 5, 2009. http://www.realtor.org/fedistrk.nsf/pages/wk01052009?OpenDocument#report_1_01_05_2009,