It is autumn again...

Well Halloween is just around the corner. Holy Toledo where the heck did 2017 go? Buying and selling homes in the autumn is a completely different affair. For sellers the flow of would be buyers seems to soften as the cooler weather arrives. This is not just because of weather, but a whole plethora of life events that change the "mood" and availability of buyers.

Halloween can be a great time to connect with neighbors as parents escort their children through the neighborhood. Sellers with active listings have an opportunity to chat with neighbors at the door or on the curbside while the kiddies get their treats. This could be an opportunity for sellers to remind neighbors of that realty sign in the front yard and ask if they know anyone that wants to live in the neighborhood. Sound corny? Well, it isn't neighbors often do know people they like that are looking for a house.

As for the rest of the autumn / holiday period, I have a few tips and ideas that I have published in the past that I will bring to light again today.

Originally published October 7th, 2016 by Rod Sager

OK sellers, the leaves are starting to turn color and some trees are dropping already. Yes my friends it is in fact October and that is what happens this time of year. Sellers need to keep the gutters clear as overflowing gutters are an easy fix yet manage to suck the curb appeal away.

It seems like a simple thing but buyers need to have a positive experience when they pull up and then walk up to the house. Getting a soaking at the hands of a clogged gutter sets a negative tone before they even set foot in the home. We never want a negative tone now do we?

The further we march into the cooler, wetter autumn and ultimately the colder and icy winter the more serious buyers braving the elements are. Buyers need to look past the little stuff, but sometimes they don't. Sellers need to pay attention to details to maximize value and bring the highest offer.

Autumn is a truly magnificent time of year and real estate can be quite robust during this period. although the volume drops a little, buyers are more serious and inventory is a little tighter so it is about equal in as far as supply and demand is concerned.

I mentioned in previous posts that the market is still climbing but the steep price appreciation has moderated substantially. I believe this is a healthy condition.

Interest rates have been very low over the last several weeks even by recent standards but they seem to be yo-yo-ing up and down in the threes. Loan officers have to pay attention so as to lock buyers in on one of those fabulous lows in the cycle. In general this is still a great opportunity for buyers. Although buyers may wax nostalgic for the low prices of 3-5 years ago these low rates are amazing and that will ultimately save buyers tens of thousands of dollars over the life of the loan.

Sewer Scopes can save some Heartache

Yes my friends today we are getting down in the gutter filthy and talking some sewer line smack. The sewer line that links a house to the main sewer service is typically buried underground and quietly doers its thing ridding your home of the nasty necessity of life. We all take it fro granted; there it lies out of sight and nearly always out of mind. Seriously, who wants to think about sewage?

Many people that are looking at buying an older home do think about getting the sewer line inspected and this of course is a wise idea. After all a sewer scope is often price well under $150. Sometimes complicated setups in the home connection may cause the price to go up a bit, but 90% of scope jobs are quick and reasonably priced.

Often however people only think to do it on really old houses. The logic is sound, and old sewer line laid in 1945 is indeed more likely to have issues than one laid ten years ago, right? Well, maybe. Sometimes the underground work on new home developments is rushed, sometimes back fill is not exactly proper and sometimes a big old fast growing tree can disrupt an otherwise sound sewer install.

The primary concern is a blockage or serious leak in the line. A blockage often is the result of plant root intrusion. The roots can break into the line through a seam in the pipe fitting. often that is caused by a large root pushing on the pipe or normal decades of ground settling. Below is a video from a sewer line company on you tube that shows a root intrusion on the sewer cam. I am not affiliated with this firm and this video was taken in another area of the country, but still provides a good idea of how the sewer line camera inspections look. This shows a severe intrusion and you can see how this might lead to a backup. It is also important to note that one should never flush any solid objects other than toilet tissue and what comes out of our bodies as those "foreign" objects will log jam against even much smaller root intrusions than this one. Foreign objects includes feminine hygiene products which are the number one cause of self inflicted sewer backs ups.

Another issue is what plumbers refer to as a "belly". This is where do to settling over time or a less than adequate install job the sewer pipe has a dip between the house and the main line in the street. Understand that the vast majority of sewer lines are gravity based. The house sits up high on a foundation and there is a slope from the house to the main buried in the street. When you flush the toilet or run water in the bath or sink that water runs down a pipe and picks up speed as it heads down towards the main line. A belly in the line means that the "water" dips and then has to rise back up. Sewer line slops are often very gentle slope. A standard 4 inch line should have a minimum slope of about 1/8" drop for every 12" of length. A belly in the line at the minimum slope can cause enough of a slowdown to create problems. Sewer problems are not pleasant.

A belly in the line is not always a deal killing event and in some cases the combination of pipe size and actual slope may be enough that it is not a concern. This is best left to the pros who understand the basic mechanics and physic of gravity sewer lines.

I would recommend that sellers do a sewer scope test in advance so they know going in whether there is an issue to address. Of course here in Washington State and probably every other state, once the seller is aware of a problem they have to disclose it, so there is that issue. I personally would rather know what potential issues I may have as a seller before a list my home.

Buyers should always consider having the sewer line checked out, even on newer homes because installers can make mistakes in the installation that can slip by the government inspections. Spending an extra $125-$150 on your inspection to get a potentially $2000-$10,000 dollar repair item checked before you buy is sound advice.

Market is settling in

I like a more calm and sensible market. When the market is at one extreme or the other, the greedy side of humanity can sometimes rear its ugly head. 6 years ago when the market was down and sellers were desperate, buyers could kick the sellers in teeth with the swagger of an old west outlaw. Then as the market turned into gold the sellers got revenge as the 20016-17 market was difficult for buyers. Sellers tactics were often skirting the fine line of ethics.

Now we see a market that has settled in a bit. Values are still on the rise, but inventory has also risen bit. The median priced home throughout the Portland-Vancouver metro is now barely affordable by the median income earner. This has led to a more sensible market.

We are not in a declining situation but rather the rate of growth is just a little slower. We will probably experience a modest and more "normal" rate of appreciation this next year, perhaps in the 4-6% range. This represents a very healthy and sustainable market. These jack-rabbit hops in prices due tend to create bubbles when they last too long. I am relieved to see than the run up in values has subsided and we are calming the pace to sustainable levels.

Zillow Graph for Vancouver, WA

Buyers should beware however that strong economic conditions in the future could lead to another 'hop' in a year or two. I am not a modern Nostradamus however so who knows what the near future holds. What we do know is that things have indeed settled in and that is actually good for everyone in real estate.