The Good House... 

In the market today you can find a lot of good deals.  Prices in Clark County have lost between 15% and 25% of value.  This does not necessarily mean that every seller is facing this kind of a hit from the crazy days pricing of a few years back.  Good houses, in good locations, on good lots, that are staged to standards that appeal to the widest range of buyers still bring top dollar, and often multiple offers. 

Think about this when making your offer.   We have seen some disappointed people who were determined to get a “good deal” try to low ball a good house and then end up in a bidding war with the shortest straw.  Perhaps twenty percent off 2006 prices might be the best deal anyone would get on a “good house.” Be happy with it.  Here’s a clue:  if you are in a bidding war in this market, you are making an offer on a “good house”.  Stay in.

Much of the noise about the purchase of real estate is about price.   As I have said before a house on the interstate ramp will always be a bad house in any market.  When the market contracts, the value of the  I-5 house heads south at a faster pace than the rest of the market and when the prices head north, the same house will never reach values of similar houses not positioned on the off ramp. 

If you are tempted by the $/sq ft price of a bad house don’t forget how this will affect you in five years.  This may be one you could low ball and be happy when you don’t get it.

Here’s an example of a good deal if you are in the market for a townhome:
 
Felida Neighborhood – Vancouver, WA
 
This beautiful townhouse was purchased new in 2005 for $295,500.  It’s still just like new.  With nearly 2500 square feet, 9’ ceilings,  a “great room” and 3 bedrooms, every room is spacious – even the hallway upstairs is unusually open, the gourmet kitchen has a 14’ eating bar, nice pantry, granite counters, the laundry room is a dream, and the master bedroom suite has a bayed window, sitting area, jetted tub, etc.  The covered patio has a BBQ hookup, a beautiful fenced and sprinkled backyard.  HOA dues are low.
 
This Felida condo complex is beautifully maintained and small enough to get acquainted with all your neighbors.  People  here love where they live.  The only recent sale in this neighborhood is a 1600 square foot one-level home that sold last year for $235,000.  Just do the calculation!
 
This home was listed originally at $319,900 . . . and now is $249,900.  That is 20% lower than the value in 2005!
 
From 2004/2005 to 2007, homes appreciated approximately 25%  - 30%  and have come back down about that same amount since.  So if this one had gone up 25% from the purchase price in 2005, it probably would have sold at the peak of the market in 2007 for perhaps $360,000.  And it’s just been reduced to $249,900.
 
Now…doesn’t that sound like opportunity!  It is human nature to want to wait until the local housing market “hits bottom” before buying. . . but think.  When will you know it has “hit bottom?”  You will know when it starts going up.  It’s hard to believe it will get much better than this. 
 
With interest rates hovering around 5%, this is what a purchase like this could look like:  Price $250,000 – 20% down ($50,000 gives you a mortgage of $200,000 – 5% interest – your payment would be $1074  - add taxes and insurance and you would be around $1400 a month. 
 
Don’t have 50% down, how about 5% down ($12,500), that would make the payment $1275 – add taxes, ins., and mortgage insurance – that would be around $1700.  

If you would like to view this home,  here is the link: