Are decided what colleges you will apply to for the coming school year?

If you are not currently considering Western Washington University, you probably should be. Listen to what they students had to say about Western Washington University.

I think that these students really sum up what the City of Bellingham has to offer college students. If you are graduating from High School next year and considering colleges, I would definitely recommend that you take a strong look at Western Washington University.

Ryan Martin

Do Tribes Exist within the Real Estate Industry?

The concept of a Tribe in business is a term made famous by marketing guru Seth Godin. Seth believes that alliances and relationships are created in business for the mutual benefit of all parties. I pondered the concept of a tribe and how it relates to the real estate industry and realized that this theory holds very true.

The relationships made between agents of different offices are vital to the success of all real estate agents. It is important for agents to both network with and trust other agents that they work with. Any client working with an agent that is disconnected from the tribe will immediately have to overcome an issue of trust with other agents of the tribe. This distrust will be passed through the agent to the client. Therefore, if an agent is not trusted by other agents, their clients are not trusted by other agents.

Another benefit to working with an agent that is associated with the tribe is the power of networking. If your agent already has an established relationship with the other agents, they will be more likely to hear of properties that might be coming on the market soon. It will also be easier for the agents in the tribe to negotiate among each other on the client’s behalf. By understanding how certain agents handle their negotiations, other tribe members that already know them will have a better understanding of to deal will objectionable points of contention.

In addition to tribes among real estate agents, there are also groups of real estate affiliates that work together as tribes. Real estate affiliates include lenders, escrow companies and home inspectors. While it is illegal for these affiliates to accept monetary gain for business (referral fees), there is a huge advantage for real estate agents to work with affiliates within their tribe. The power of networking and trust are the major benefits to working within a tribe of affiliates.

When choosing your real estate agent, find out if they are a member of a tribe.

Over the last several years it has become increasingly difficult to find single family homes in Bellingham that produce positive cash flow. However, with the downturn in the real estate market there are now some opportunities to purchase these investments. Over the last year local real estate prices have fallen while rental rates have increased. The equilibrium of positive cash flow has finally balanced out on entry level properties.

There are currently 8 homes for sale in Bellingham that “make sense”. For a home to make sense, I look for homes that would produce positive cash flow with a 20% down payment. In Bellingham, rental rates are typically based on the number of bedrooms. If you place a home for rent in Bellingham today, you should expect to receive $400 (on average) per bedroom. Therefore a 3 bedroom home would rent for $1,200. At a purchase price of $220,000, you would need $44,000 (20%) down payment and would pay $1,112.44 a month in principle and interest at 6.5% interest on a 30 year note. When you add in tax and insurance, you are going to be very close to $1,200 in monthly expenses.

Based on these numbers, it seems clear that a 3 bedroom home priced at $220,000 is the point of even cash flow. Therefore you need to target 3 bedroom homes in Bellingham that are priced under $220,000 to create positive cash flow. I have found 8 homes in Bellingham that currently fit the criteria. Because I do not represent the sellers of these properties I cannot advertise, which homes I am talking about. If you would like to learn more e-mail me at Ryan (at) SolutionsTeam.net, or call my cell number at 360-319-0040.

1.    The weak US dollar is positive for WA State because it makes exports cheaper and Washington State is the 3rd largest exporter in the US.
2.    Washington State is a strong business to business provider and will be the last hit and last to come out of a slowdown of the US economy. Microsoft is currently going gangbusters!
3.    Wage inflation is outpacing price inflation 7% to 5%.
4.    The weak US dollar is dramatically slowing employment outsourcing to India.
5.    Washington State has a negative net migration. (Positive population growth)
6.    Seattle has the lowest CAP rates on apartments in the US.
7.    Forbes “Seattle best location for real estate investment”
8.    Negative press in other areas of the country may become a self-fulfilling prophecy in Washington State.
9.    While the economy is really ugly in Miami, Arizona, Las Vegas and parts of South California Bellingham and Seattle are among the top 3.

Guide to Purchasing Fairhaven Condos

Fairhaven is a popular historical neighborhood located at the south end of Bellingham. Fairhaven is an ideal location for single individuals, young couples with busy lifestyles and retirees looking to downsize. Amenities that make Fairhaven appealing include; the nightlife and clubs, a wide range of dining options and friendly neighbors. In Fairhaven there are over 26 restaurants, 40 sidewalk boutiques and 17 health & beauty salons within just a few blocks.

There are also several parks including the Village Green, Boulevard Park and Fairhaven Park all within walking distance of downtown Fairhaven. For the travelers, the Greyhound bus station and Amtrak train station are located at the west end of Fairhaven. Amtrak is a great way to travel to Vancouver, BC or Seattle to catch your favorite sporting or cultural event. Fairhaven is also home to the Alaskan ferry, which travels to Ketchikan Alaska on a weekly schedule.

If you know that Fairhaven is the place to live it is time to find the right place. Below is a list of all current condos in Fairhaven. Click on the Condo’s name to see what is currently available in each building. Here is the list of the 9 condominium buildings located in the core of Fairhaven. Harris Square, Fairhaven Square, Larrabee condos, Judson Plaza, Fairhaven Heights, The Waldron, The Young, Fairhaven Gardens and Creekside Estates. In addition, there are two condos located over Village Books.

(1) Harris Square ~ Built in 2005, 88 Total Units, 3 Buildings with 28 units each, Elevators, Secure parking garage. (A) 910 Harris St , (B) 960 Harris St and (C) 1310 10th Street.

Available Harris Square Condos: Harris Square A | Harris Square B | Harris Square C

(2) Fairhaven Square ~ Built in 2004, 30 total units, elevator, Secure parking garage, 10’ ceiling height, 1224 Harris St.

Available Fairhaven Square Condos

(3) Larrabee condos ~ Built in 2003, 10 total units, Natural gas heat, Secure parking garage, 10’ ceilings. 1001 Larrabee Street.

Available Larrabee Condos

(4) Judson Plaza ~ Built in 1991, 10 total units, Loft Style condos, Secure parking garage. 1201 11th Street.

Available Judson Plaza Condos

(5) Fairhaven Heights ~ Built in 2005, 4 units, Secure parking garage, elevator, air conditioning. 2 Bed, 2 Bath units. 1301 Mill Ave.

Available Fairhaven Heights Condos

(6) The Waldron ~ Built in 2007, 6 units, 2 car garage within the secure parking garage, secure elevator, air conditioning. 2 Bed, 2 Bath luxury units. 1314 twelfth Street.

Available Waldron Condos

(7) The Young ~ Built in 2007, 14 total units, Secure parking garage, high ceilings, crown molding, elevator, air conditioning. 1101 McKenzie Avenue

Available Young Condos

(8) Fairhaven Gardens ~ Built in 2005, 21 total units, Secure parking garage, elevator

Available Fairhaven Gardens Condos

(9) Creekside Estates ~ 28 Total Units, 3 Buildings with 8 condos & 1 building with 4 condos, Natural gas, 3 buildings with elevators, Secure parking garage & individual garages.

Available Creekside Estates Condos

Ryan Martin specializes in selling Farihaven condos. If you have any further questions about buying or selling a condo in Fairhaven, call or e-mail Ryan with your questions.

Ryan A. Martin

Cell: 360-319-0040

e-mail: Ryan (at) SolutionsTeam.net

What are the signs of a healthy real estate market?

One of the best signs of a healthy real estate market is number of months of inventory. The number of months of inventory will convey whether a real estate market is a buyer’s market, seller’s market, or balanced market. A balanced real estate market in Bellingham should have 3 to 6 months of inventory. If there is less than 3 months of inventory, then there is a clear seller’s market. In a seller’s market the number of available homes are scarce and there is a high demand for homes. If there is more than 6 months inventory, then it is a buyer’s market. In a buyer’s market there is a lower demand for homes and prices begin to fall.

How many months of inventory are currently on the market in Bellingham?

There is currently 6.7 months of inventory on the market in Bellingham. This suggests that Bellingham is in a buyer’s market. However, if we look at the past 13 months we can see that Bellingham’s real estate market was very balanced until last August. During last August the national credit/lending crisis occurred and nearly every real estate market took a spike in inventory as it became increasingly difficult to obtain financing.

As we can see by the graph, Bellingham’s real estate market did not spiral out of control and never broke over 10 months of inventory. The market has slowly been working back towards a balanced real estate market of market and I expect the July figures to continue the downward trend from the last couple of months.

I follow the real estate trends in Bellingham very closely and would be happy to discuss the market further with anyone who is interested.

I follow the Bellingham real estate market very closely. As I was looking through the new homes that came on the market this morning, I was overwhelmed by the number of new homes priced way too high. The real estate market has begun to pick up, but by no means are things going gangbusters.

Note to Sellers

You need to be very careful when pricing your property in this market. Assuming that you have chosen to work with a knowledgeable real estate agent, you really need to listen to them. When they suggest a listing price, you should strongly consider their advice. The days of putting a steep price on a property to “see what happens” are long gone. I will tell you what will happen. Your house will not be shown by anybody and you will become very frustrated.

Good Deals Bellingham

There are some good deals on the market right now and some of the homes being listed today are great deals. I still feel firmly that the best deals are being offered by the motived sellers in this market. I suggest that you don’t fall into the trap of foreclosures and short sales. You will only end up wasting time and money. You are far better off working with a seller that has the financial capability to give you a good deal.

Subscribe to Find the HOT Deals

I am no longer publishing my Hot Buys blog. If you would like to subscribe to my list of hot buys in Bellingham. Send an e-mail to Ryan (at) RyanMartinRealEstate.com with HOT BUYS in the subject line and I will get you on the list.

That is it for now. Over and out.

7 Things to Consider When Buying Condos in Bellingham

1. Parking - Most condos offer underground parking or assigned cover parking. Typically the parking will be assigned in condominiums without covered parking. Make sure that you can get at least assigned 2 parking spaces if they are available. Also be sure that there is adequate guest parking. Sometimes condos do not offer enough spaces for guests, which make social gatherings nearly impossible to host.

2. Special Assessments - The financial strength of the condominium association is very important. As condos become older, this becomes even more important. When condominium associations fail to collect enough money for repairs and maintenance, their alternative to is ask the condo owners for money in the form a special assessment. Typically special assessments occur when roofs, siding and balconies are in need of replacement. The biggest mistake that you can make when buying a condo is incurring an unexpected special assessment after closing.

3. Windows - The exterior windows of a condominium are typically the responsibility of the homeowner. However, the association is usually in charge of the type of windows that can be installed. If you are considering a condo that is located near a busy or noisy street, be positive that the windows will block most of the sound. This is something that you will not be able to change and it is important that you are satisfied before making a purchase.

4. Location of Unit - The location of a unit within the condominium building is often the most important factor of value. The most valuable condominiums are nearly always located on the corner of the top floor. These units also typically the largest. The only reason that the top floor corner unit would not be the most valuable would be if the condominium does not have an elevator. If the condominium does not have an elevator the ground floor corner unit will likely be the most valuable in the building. Also consider units south and east to maximize sun exposure. This is very important if you like to grow plants or live in a sun deprived location.

5. Insurance - There are two basic types of insurance on condominiums. The first type of insurance is the association’s insurance policy. This is paid out of the association dues and covers all of the common areas of the condominium building. Make sure to check if the association has earthquake insurance if you are looking in the Bellingham area. This will likely have an effect of the interest rate of your loan. The second type of insurance is homeowners insurance. This insurance policy is paid for by the homeowner and covers everything inside of your unit. Homeowners insurance on condominiums is less expensive than homeowners insurance on a house.

6. Owner Occupancy Ratio - The percentage of occupants that are owners vs tenants will have a direct effect on the value of your condominium. A high ratio of owner occupancy is a sign of stability to lenders, which translates to lower interest rates a less money required for a down payment. If the opposite is true and there are more tenants than homeowners, lenders will be more hesitant to loan money on the condominium and the value will be less. Note that some condominium associations have restrictions on the percentage of rentals that are allowed for this reason.

7. Pet Restrictions - People love their pets and pet restrictions can be the source of a lot of hardship when looking for condos. If you are a pet owner, MAKE SURE to check the pet restrictions before purchasing or even considering a condominium. Pet restrictions can range from small house cats only, to 40lb weight limits on dogs to strictly behavior based pet restriction.

Begin your search now for Bellingham Condos right now.

Bellingham Foreclosures & Short Sales

There is a common misperception about foreclosures and short sales that has been spreading like wildfire. It is a fact that short sales and foreclosures have been increasing at a national and local level. It is NOT a fact that short sales and foreclosures are the best deals in real estate.

Why are short sales and foreclosures not the best deals in real estate?

Understanding the cause of most short sales and foreclosures reveals the reason why they are not the best deals. Currently in Whatcom County and Bellingham, approximately 50% of the foreclosures and nearly all of the short sales are the result of recently refinanced loans. Homeowners simply borrowed more than their homes are worth.

In the case of short sales, it is true that banks are now settling for less than the full value of the loan, but the full value of the loan is more than the home is worth.

Case Example A: Home was purchased for $350,000 in 2005. The market value was $400,000 in 2007, so homeowner refinanced a new loan of $380,000. Homeowner can no longer afford the payments on a loan of $380,000, so they want a short sale to get out. They decided to list their home for $360,000 (which is the current fair market value of the home) and hope that the bank will take it.

The example of the foreclosure is exactly the same as the short sale, except for the fact that the bank already owns the property. In both cases the banks and sellers are selling homes at fair market value.

Where are the best deals on foreclosures in Bellingham?

The answer is that the best deals are actually the homes in the same neighborhood as the foreclosures. They just happen to be located next door. The neighbors that were fiscally responsible are the ones who can afford to sell their homes for less money. Consider the house located next door to the short sale in Case Example A.

Case Example B: The homeowner next door is in trouble and attempting to sell their house in a short sale for $360,000. The neighboring homeowner bought their house in 1999 for $200,000. They initially borrowed $175,000 and have been making their payments. Something happens (death, divorce or…) and they really need to sell their home right away. Their home is exactly the same as next door, with the exception that their home is very well kept. Because their real estate agent informed them that only 1 out of every 10 homes in Bellingham and Whatcom are selling every month, they choose to list their house for $350,000 because they just want to get it sold. They get an offer right away for full price. They clean the house move out.

So the question is….. are foreclosures and short sales really the best deals?

Call Ryan Martin at 360-319-0040 if you would like to know what the best deals in Bellingham really are.

I am proud to announce the launch of the new and improved RyanMartinRealEstate.com website. For those who have followed my real estate career over the years, you have probably noticed this website go through a lot of changes. This was actually the first of many real estate websites that I have created dating back to June of 2003.

One of the biggest changes is the new “Northwest style” look. I really wanted to create something different than the typically real estate website this time, so I took a bold step and decided with a green theme. I hope that you like it 

Another major change to the website is this blog. Anyone is welcome to comment on this blog, so as long as it is deemed appropriate. I will be writing a couple of posts a week, so be sure to check back in with me.

That is about it for now. You are welcome to comment on this post about the new look of the website. If there is something that is not quite working yet, please let me know.

All the best,

Ryan A. Martin