"Think Local First" in Leavenworth

Leavenworth, Washington, is a great little town of about 2,000 full time residents, but draws just over one million visitors every year.  The Bavarian theme town has a healthy economy, a thriving downtown and abundant recreational and tourist attractions.  Last week Rebecca attended a reception for local independent business owners called "Think Local First."  While our home inspection company advertises service from Seattle to Wenatchee our office is based out of Leavenworth for the wonderful reasons listed above.

The mission of Think Local First in Leavenworth & the Upper Wenatchee Valley is "to build a sustainable economy by increasing awareness about the personal, community and economic benefits of choosing local, independently-owned businesses first."  After seeing many familiar faces and sipping on donated local wine in the Barn Beach Reserve River Haus we watched a Bellingham based short docu-film highlighting the processes and successes of supporting locally owned businesses by purchasing their goods and services.  The room was packed!

Next, the group was introduced to the board of advisers that were behind the night's event.  We were encouraged to "Think Local First" with each purchase.  The idea is that money stays where you spend it.  According a handout from the evening, a consulting firm (Civic Economics) found that "when West Michigan consumers choose a locally owned business over a non-local alternative, $68 of every $100 spent stays in the community."  It went on to describe that only $43 stays in the community if spent non-locally and $0 remains when choosing to spend online.  Of course, the bottom line here is growth:  in activity, jobs, income and community.

The Call To Action!  Everyone was encouraged to sign a "10% Shift" pledge by the end of the evening.  If you could pledge to spend 10% more of your normal purchases locally then signing the dotted line was not too hard.  Living in a small town you'll find that you can't get everything in your neighborhood.  I happen to know that you can't process film or purchase a car in Leavenworth, but daily tasks and common services are very easy to manage.  The aforementioned handout referenced the same 2008 Kent County, Michigan, study when discussing the power of the 10% shift.  Their study estimated that the "10% shift would result in $140 million in new economic activity; 1,600 new jobs, and $50 millions in new wages."  In Chelan County that would mean "$16.8 million in new economic activity; 192 new jobs; and $6 million in new wages."

I'm up for the challenge!  We're going to make the 10% Shift.  I know that whatever we can't find from local business owners in Leavenworth we can certainly find within Chelan County in Wenatchee.  How about you?  Can you make the pledge in your town?

Wenatchee Fire Chief Applies For Smoke Detector Grants

This week I attended a North Central Home Builders Association dinner in Wenatchee, Washington. One of the speakers was Mark Yaple, the Assistant Fire Chief for the City of Wenatchee. He talked about the number one problem that causes a total loss in a house fire– a faulty or absent smoke detector. Since 1995 building code has required homes to have hardwired smoke detector alarms with battery backup. Yaple is concerned about the homes built before 1995. He has taken it upon himself to provide smoke detectors to any home in the city of Wenatchee that needs one.

State Farm Insurance gave him a $5,000 grant to purchase battery operated smoke detectors. With the help of a Red Cross volunteer and driving his fire truck he went door to door inspecting smoke detectors and installing new ones where needed. He advertised his free service to the public and received many calls from elderly people that were not able to deal with the problem themselves. His goal is to receive more money and continue his good work. He has applied for more grants from State Farm and the Federal Government and hopes to receive up to $27,000 to purchase detectors. Obviously, new construction homes are not entitled to his program because they would not meet the code adopted in 1995. If you would like to volunteer with Yaple to install smoke detectors contact him at the City of Wenatchee. He could use our help!

Home Show in Wenatchee: Feb. 11-13th

Every year the NCHBA or North Central Home Builders Association produces a spectacular home show in Wenatchee, Washington.  There's a little something for everyone whether you are interested in remodeling, decorating, building, buying or selling a home...they've got all the experts there for your questions!  Here's some info from their website.  Download this COUPON for $1 off admission:

This year, we have a lot of new things going on and are very excited to “get the Show on the road”! The Kid’s Zone by Lowe’s is going to be fantastic this year. Not only will the kids be able to build their own project with a professional from Lowe’s, they can go on a scavenger hunt with their parents or enjoy FREE ice skating on Friday and Saturday. So, if you have kids that are 12 and under, make sure to take them to the Kids Zone by Lowe’s, located in the Crunch-Pak Hospitality Room on the the main floor of the Town Toyota Center!  Workshops and How-to’s that you WON’T want to miss! Come and see what the Master Gardeners have to demonstrate on Friday, Saturday and Sunday of the show!   Be one of the first 250 attendees on Saturday and Sunday and receive a special Home Show Entrance Bag! These bags will be filled with small gifts, specials and discount coupons from participating sponsors and vendors! These bags will also come in very handy when you need a place to stow away other information and items you gather!  There will be additional event parking available for attendees across the street at Walla Walla Point Park, both parking lots, as well as at Lowe’s Home Improvement Warehouse. Many thanks to Lowe’s for generously allowing our Home Show attendees to use half of their parking lot for our event!

Top 3 Worst Excuses For Not Getting A Home Inspection

It costs too much.
Well, it is an added cost, but let’s remember…you are buying a house! How many thousands of dollars are you going to spend on this investment? A home inspection typically costs $200-$700 depending on the square footage. What if the inspector finds an issue that will result in $10,000 of repairs? Well, the $400 inspection doesn’t seem like such a bad idea anymore.

It may hold up the closing.
An inspection takes about 2 hours. We email our reports the same day or next morning. Let’s just say that this part of the purchase process is probably the fastest step.

I can get an inspection later if I feel that I need one.
Yeah, you sure could, but it may be a little late. If you get the inspection before the purchase is final you may have a valuable tool for negotiations.

We love what we do. We inspect homes in some of the most beautiful cities in America: Seattle, Wenatchee, Chelan and more. Our home inspections are the best investment you’ll make in preparing to own a home. Right now we are getting a lot of calls for pre-listing inspections because sellers are aware of cautious buyers. We are happy to answer any questions about the inspection process.

Unique Central Washington Resorts

Bear Mountain Ranch

Can you think of anything better than 300 days of sunshine just a couple of hours drive from Seattle? How about sitting waterfront with the beautiful night sky clear of any city lights, traffic or smog? Here are a few places popping up in Central Washington that could become your major escape destination. Bear Mountain Ranch in Lake Chelan boasts a premier golf course ranked by PGA Touring Professionals in the top 6 new resorts of America. Bear Mountain has bare lots for your future dream home or custom “Bandera” homes constructed from 10 different floor plans up 3,800 square feet. The Ranch plans call for an orchard, vineyard, equine center and inn with a spa. The gated community overlooks the beautiful Lake Chelan and is just a few minutes drive from downtown. Traveling east The Resort At The Gorge is just getting underway and they’ve got big plans including: a RV park, a water park, bungalows and a 120-unit hotel. Just minutes from the popular Gorge Amphitheater and eyeing the 300,000 patrons that it brings seasonally, the Resort At The Gorge should have no problem stirring up interest. Suitably appointed cliff-side bungalows start at $189,000 for 1,000 square feet. RV Park lots start at $75,000. Other attractions include wineries, climbing, the Columbia River and 850 acres of beautiful canyon land. Finally, Zillah Lakes is located just south of Yakima in the heart of Washington wine country. Developers started construction this month on the golf course at the center of this new residential community. The Zillah Lakes plan includes homes and townhomes constructed along the man-made lakes, a tournament golf course, commercial spaces for a bistro, wine-tasting room, convenience store, coffee shop, bed & breakfast, boutique retailers and live-work office spaces. The Town Center may also include a preschool, motel and brewery. It appears that Central Washington has a lot to offer the weekend traveler. Sunshine, wine and waterfront seem to be the common attractions. Maybe I’ll get lucky soon...I’d love to add golf clubs or a wakeboard to my home inspection tool bag. Give me a call to inspect these properties so I can make a memorable weekend out of it!

Paragliding Competition in Lake Chelan

Our lead home inspector and owner, Aaron, is a paragliding enthusiast.  He took a day off of work this week to volunteer at the nationally sanctioned Chelan XC Open where about 100 pilots take off of Chelan Butte for several days performing "tasks" in a timely fashion.  Aerial Paragliding, a Cashmere-based paragliding school, produces the event with the help of numerous sponsors and volunteers.  If you were in the area this week you probably noticed 100 small colored dots clustered in the sky.  Those were pilots receiving coordinates to complete tasks to their destination.  The competitors use SPOT, a messenger tracking device that retrieves coordinates.  Once landed the pilots use the device to alert all "followers" that they are safely down and then a volunteer driver picks them up at the given location.  Results are in!  If you are interested click on the links below.  Chelan also hosts the N. America's Paragliding World Cup next week, so check it out if you're in the area.

Chelan XC Open Results
Chelan XC Open Details
Aerial Paragliding
Paragliding World Cup in Chelan

2010 Real Estate Outlook

I just attended the Wenatchee Valley Chamber of Commerce’s 2010 Real Estate Outlook breakfast panel discussion on April 22nd. This event provided valuable information and discussed the indicators of the health and direction of the economy…and in effect- the real estate market. The panel included an appraiser, a construction company owner, a mortgage broker, realtor, commercial property manager.

The panel was split on their feelings about the direction of 2010. It was about a 50-50 positive- negative outlook. I’m “the glass is half full” kind of guy so the positive notes inspired me and were really appreciated. Everyone was in agreement that slow growth in the real estate market would be equally healthy and almost inevitable. The big boom from a few years ago isn’t happening again any time soon and for several good reasons. A bubble will always burst. Here’s what I learned from the Wenatchee Valley experts:

The real estate services professional, commented on the slow commercial leasing market. Rents have reduced from $22 per square foot to $12-14 per square foot. Down payments have increased from 25-40%. East Wenatchee is becoming a popular location with several vacancies showing up downtown.

The appraiser indicated that there is a 2-year supply of 500k+ homes and a healthier 1-year supply of 100-200k homes. He agreed that rents are being lowered in order to keep filled. It appears that an occupied space is better than a vacant one, even if it’s not getting its full value.

The contractor remained positive and boasted profits even though he performed below “boom time.” His company modified their target consumer. Now they get more contracts for folks moving into town or retiring and downsizing. They see far less First Time Home Buyers and have yet to sell a home to anyone taking advantage of the 8k home buyer’s credit. I was really surprised to hear this because so many of my realtor friends have been able to help their clients with this credit. This contractor is seeing more buyers paying with cash or financing with great credit and their company offers financing. A true concern for their company is supply costs. With plants closing there is (as Jay explains) an “artificial shortage” that increase the supply costs dramatically, but he also says that if you “provide custom quality at spec house prices, they’ll buy!”

The mortgage expert provided some cold, hard facts to keep us on our toes. Yes, Fannie Mae and Freddie Mac are pulling the purse strings with tighter requirements. There was a small increase in foreclosures in Chelan County this year but we’ve remained above the state or country average. He suspected that the government policing will decrease growth and concluded that the market is 15% above the long term trend. I asked him for clarification on this. The long term trend is calculated by taking housing appreciation and adding 3% per year. After keying the calculator, in his opinion the market will still decline 15%. Food for thought…Approach with caution or take advantage while you can?

The realtor added more positive spin on the morning. Her introduction: “realtors look forward and appraisers look backward.” With 21 counties in the Northwest Multiple Listings she has seen a 51% increase in pending sales. The March 2010 pending sales were up 35% from March 2009. This is great news! The hottest price range in Chelan County is $250-300k which is also comforting because the Appraiser said there is a 2-year supply of these homes. We need to put them to work! The realtor concluded that she has worked harder than she ever has since her start in 1993. Consumers are making responsible decisions but require a lot of education, hands-on attention, negotiating, meetings and counseling. It’s not coming easy anymore but it is comforting to know that our consumers are making wiser choices.

Well, this was a well-rounded discussion of where the real estate market has come from and where 2010 may take us. I think it’s safe to say that we’ll all approach with caution. We’ve got to get creative in this industry and maybe change tactics a bit, but our consumers are strong and aware. As a home inspector we want our clients to be very active in the services that we provide. Being present on inspections and asking questions is strongly encouraged. It appears that consumers are taking their time to make wise decisions and planning quality investments. That’s good news to me.