Spokane association of realtors, april 30 2017 by Cowles Publishing

SPECIAL PULLOUT SECTION

SUNDAY, APRIL 30, 2017

7TH ANNUAL

OPEN HOUSE WEEKEND APRIL 29-30

APRIL 29 & 30

Hundreds of Open Houses s all over Spokane! Visit participating open houses

Winner announced Wednesday, May 3, 2017 All participating open houses listed on

Proudly Presented by:

Winner responsible for taxes; must be at least 21 years old to enter. Complete rules available at the Spokane Association of RealtorsÂŽ

All participating open houses listed on SPOKANEOPEN.COM

SPECIAL 2

SUNDAY

THE SPOKESMAN-REVIEW

APRIL 30, 2017

OPEN HOUSE WEEKEND

Build or buy?

DAN PELLE/THE SPOKESMAN-REVIEW

Construction continues on new homes by Lanzce Douglass Construction near Chase Middle School on the South Hill. Spokane has issued 61 housing permits this year.

Obstacles aplenty for builders, but if you’re patient . . . By Kip Hill THE SPOKESMAN-REVIEW

Chances are, if you’re looking to buy a home in Spokane County, you’re waiting in line. The alternatives – building your own house, hiring a builder or buying one under construction – present their own challenges that go beyond the historically low inventory and high prices the area’s market is seeing. “The last time we had an inventory this low, we had quite a few developments going on in the area, in 2006,” said Rob Higgins, executive officer of the Spokane Association of Realtors. “Today, we don’t have that many developments going on.” The number of single family residential home permits issued inside the city limits of Spokane and Spokane Valley have declined in 2017 compared to the year prior, and Spokane saw its third straight year of declining permitting through March, according to city records. Spokane County permitting continues to increase apace, however, with 2017’s 174 single family home permits issued in the first three months of the new year nearly double the 99 that were issued during the same period in 2015. Those looking to build, rather than wait for an existing home to become available on the market, will have to compete for dwindling available land within city limits and more stringent requirements on water access in rural areas, where more land is available for construction. They should also be

Local permits Housing permits issued historically by location, January through March:

City of Spokane 2015....................................................79 2016....................................................78 2017 .....................................................61

City of Spokane Valley 2015....................................................30 2016....................................................54 2017 ....................................................23

Spokane County 2015....................................................99 2016 ...................................................133 2017 ...................................................174 Sources: Spokane, Spokane Valley and Spokane County building and planning departments

prepared for a longer wait until their home gets built, according to data from the U.S. Census Bureau. “That’s the struggle that builders are having, that a lot of land is tied up, and finding that land that is truly available,” said Arthur Whitten, government affairs director for the Spokane Homebuilders Association. Last year, the City of Spokane issued a report focusing on the amount of available, developable land within city

limits. A survey of privately owned land with an assessed value less than $25,000, indicating it was vacant or underdeveloped, resulted in discovery of about 2,500 acres of property that could be developed into single-family homes. The City of Spokane has an average of about 2.2 homes per acre, according to the U.S. Census Bureau. That would mean, if every parcel of land available for single-family construction identified in the report were developed, the city could add about 5,580 homes. Spokane has already issued permits for 2,300 such homes since 2006, according to the infill housing report, and inventory has continued to plummet during those years. The areas where development could most likely occur sit mostly on the outskirts of the city, according to the report. Greater permitting activity in Spokane County indicates a majority of the home building occurring right now is taking place in rural, unincorporated areas, which are also most prone to the permitting limitations of the Washington Supreme Court decision requiring local review of stress on private wells before permits are issued. The legal change in the Whatcom County v. Hirst decision has been lauded by environmental and neighborhood advocate groups as protecting watersheds and wildlife from rampant development. Any regulation that adds time or cost to the permitting process would be passed along to potential home buyers by the builders, said Whitten, and the

association has been fighting such rules to keep costs low. He pointed to a recent publication from the National Association of Homebuilders that showed for every $1,000 of additional cost that’s added to the price of a new home, 371 Spokane-area households are priced out of buying. “We support market-based policies, that produce more affordable housing,” Whitten said. Anyone in the market to build should be ready to wait before moving in, especially if they plan on having a say in the construction process, according to the most recent data from the U.S. Census Bureau. Homes built for sale, often called “speculative homes” that involve the services of a realtor, are most often completed in less than six months in the western United States, according to numbers published last year. When a landowner hires a contractor directly, the majority of homes take seven months to build. The majority of owner-built homes take at least 10 months to construct, with 34 percent of those homes taking 13 months or more. “Buying a new house, is generally more complicated,” said Higgins, the head of the realtor’s association. “Generally speaking, generally when you’re watching the house being developed from the get-go, there are things you want to change in the process.” CONTACT THE WRITER:

(509) 459-5429 kiph@spokesman.com

Housing starts fell in March; still stronger than 2016 construction, rose 3.6 percent in March to an annual rate of 1.26 million. U.S. homebuilders expect WASHINGTON – U.S. rising sales, though they have builders broke ground on fewer become somewhat less homes in March, but the pace of optimistic. The National construction so far this year Association of Home remains stronger than in 2016. Builders/Wells Fargo builder Housing starts fell 6.8 percent sentiment index released last month to a seasonally Monday dipped to 68 this adjusted annual rate of 1.22 month from 71 in March. million, the Commerce Readings above 50 indicate Department said Tuesday. The more builders view sales setback came after strong gains conditions as favorable rather in a warmer-than-usual than poor. The index has been February. Groundbreakings on above 60 since September. new homes are still 8.1 percent But strengthening demand higher through the first three and builder sentiment have yet months of this year compared to generate enough construction with 2016. to sufficiently boost the More Americans are seeking availability of homes. That trend homes as job security has could temper sales growth and improved with low weaken affordability, in part unemployment. But even with a because the shortage of homes wave of construction, a has pushed up prices. dwindling supply of new and There were 266,000 new existing homes across much of ASSOCIATED PRESS homes for sale last month, up the country has threatened to New home starts are 8.1 percent higher through the first three months of this year compared with 2016. nearly 10 percent from a year become a major drag on the earlier. But sales of new homes housing market. During the first three months rose 13 percent over the past month, housing starts increased earlier. Jennifer Lee, a senior year. of this year, construction of “Much warmer-than-usual in the Northeast largely because economist at BMO Capital Purchases of existing homes of apartment construction. The weather in the first two months buildings with at least five units Markets, suggested that the of the year pulled starts forward – mainly apartment complexes – have also increased. Yet sales pace of groundbreakings March decline was likely listings of existing homes tumbled in the Midwest, South into those months, and March – has climbed 14.1 percent. temporary. dropped 6.4 percent over the with more normal temperatures Single-family housing starts and West. “Is it the start of a trend? past year to 1.75 million The March decline was likely – saw the payback with declines have risen 5.9 percent. Likely not, given the strong properties in February, a figure More properties will likely in both single- and multifamily demand for housing and the low due in part to an unseasonably only slightly higher than in begin construction in the construction,” said David temperate January and levels of inventory to choose January when listings were at coming months. Building Berson, chief economist at February, which allowed from,” Lee said. an all-time low. permits, an indicator of future Nationwide Mutual Insurance. builders to begin construction Despite a winter storm last

By Josh Boak

ASSOCIATED PRESS

THE SPOKESMAN-REVIEW

APRIL 30, 2017

SUNDAY

SPECIAL 3

OPEN HOUSE WEEKEND

Remodel, not relocate

Boomers wishing to stay are boosting remodeling industry by putting money into existing homes Association of the Remodeling Industry, a trade group. “We see this as something that is dramatically affecting the marketplace,” Ulreich says. Boomers typically live in homes that are several decades old, prime targets for remodeling, Ulreich says. Unless they move to a brand-new home that’s designed for aging in place, their decision is likely to mean remodeling. Sal Ferro says boomers are his biggest group of customers, but he’s not getting many requests for aging-in-place projects. It’s more renovations to make their homes more enjoyable. “They’re finally getting the projects done that they always wanted. They’re getting that kitchen or bathroom,” says Ferro, owner of Alure Home Improvements, based in East Meadow, New York. Some remodeling companies are specifically marketing to boomers, sending salespeople to trade expos and events those customers are likely to attend. Miracle Method, a franchise business that refinishes kitchens and bathrooms, has increased its outreach to boomers, says Erin Gilliam, the company’s marketing manager. Franchise owners say much of the 11 percent growth in the franchise’s overall business in the past year was driven by boomers, she says. Gilliam’s husband, Gabriel, sees the trend in the franchise he owns in Salt Lake City. He estimates that revenue from boomers has risen between 10 and 20 percent, and the growth is prompting him to hire more workers. He has five staffers now, having added one per month the past three months, and expects to reach 10 in the next year. “I’m hiring as quickly as I can,” he says.

By Joyce M. Rosenberg ASSOCIATED PRESS

NEW YORK — If you build it, they will stay. The small businesses that dominate the home remodeling industry are expecting robust growth in the next few years, thanks partly to baby boomers who want to remain in their homes. Home remodelers say they’ve had a pickup in projects from boomers who are in or approaching retirement and are seeking to modify their houses. It’s a trend known as “aging in place,” an alternative to moving to smaller quarters or a warmer climate. Many of these homeowners are hoping to make their surroundings easier to manage and safer in case they have health problems. They’re replacing bathtubs with walk-in showers, installing safety rails, widening doorways and building ramps — features known as “universal design” since they can be used by anyone, regardless of physical ability. Boomers are also redoing their kitchens and sprucing up other areas — since they’re staying put, they want to enjoy their surroundings. Zach Tyson estimates that 30 to 40 percent of his revenue is now coming from boomer renovations, up from 15 to 20 percent five years ago. Most of the projects come from homeowners who are healthy and mobile now, but want to be prepared if illness or injury hits. Besides making bathrooms safer, they’re enlarging rooms so wheelchairs or walkers can be used more easily, and also to give the rooms a more open feel. “It’s trending up, for sure,” says Tyson, co-owner of Tyson Construction in Destrehan, Louisiana. The oldest of the 76.4 million boomers, the U.S. generation

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ASSOCIATED PRESS

The remodeling industry expects strong growth in coming years, thanks to baby boomers.

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just over half of all home improvement spending. “The boomer activity seems to be driving the market,” says Abbe Will, a research analyst at the Harvard center. That’s a change from the past, when older homeowners generally handled maintenance, repairs and landscaping but tended not to renovate. And some of the boomer-driven remodeling is coming from younger homeowners who expect their parents might later come to live with them and want to be ready, Tyson says. The requests Tiffany and Bryan Peters get from boomer customers include replacing traditional turning doorknobs with lever handles that can be pushed down. Homeowners want motion-sensor light

born after World War II, are turning 71 this year. As more of them retire and make decisions about where they want to live, there will be a great need for accessible housing, according to a report released in February by Harvard University’s Joint Center for Housing Studies. “A large share of these households live in older homes in the Northeast and Midwest, where the housing stocks have few if any universal design features,” the study said. The report predicts home improvement spending by homeowners 65 and older will account for nearly a third of the total amount of remodeling dollars by 2025, more than twice the portion that group spent in 1995-2005. Owners age 55 and over already account for

5612 N COPPER RIDGE BLVD New Price $400,000

PARAS TWO STORY IN EAGLE RIDGE. 3,102 SQFT, 4 BEDROOMS, 3 BATHS WITH A MAIN FLOOR OFFICE GARAGE MARIANNE BORNHOFT 509-879-3779

switches and faucets, and non-slip flooring. In bathrooms, they’re replacing fixtures with models that are designed for people with disabilities — showers than can accommodate wheelchairs, and toilets at the same height as wheelchairs, Tiffany Peters says. “We’ve definitely experienced an increase in requests for aging-in-place work,” says Peters, who with her husband owns a Handyman Connection franchise business in Winchester, Virginia. “We get several requests a month.” Home remodeling companies began seeing an increase in boomer spending about 18 months ago and expect it to contribute to their growth in the next few years, says Fred Ulreich, CEO of the National

OPEN HOUSE WEEKEND APRIL 29th & 30th

NORTH OPEN HOUSES Sunday, April 30, 2017

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E OP 4803 E . PAT R ICIA

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Sprawling Sundance Hills rancher. Over 2,100 sqft on main ﬂoor plus full unﬁnished basement. 3 bedroom, 3 bath, 4 car garage.

13112 N. HOWARD LANE

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New Price $425,000 THIS IMPECCABLE RANCHER HAS 3BED/2BTH, 3838 SF W/BEAUTIFUL KITCHEN, GREAT ROOM CONCEPT, HUGE MASTER SUITE & GREAT ENTERTAINING PATIO.

DOUG JULIANO (509) 342-0406

ERIC ETZEL 509-995-2833

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191 ROCKWOOD

New Price $400,000

New Price $425,000 Waterfront home on Diamond Lake. Sandy beach, Trex dock, 3bd/2ba, loft, 24x24 garage. Incredible views. MLS #201713275

FLOOR OFFICE GARAGE MARIANNE BORNHOFT 509-879-3779

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14105 N COPPER CANYON LN New Price $725,000 4 BED / 4.0 BATH. PRISTINE BRICK CLASSIC VIEW PROPERTY . ONE OF A KIND HOME OVERLOOKS WANDERMERE GOLF COURSE. MLS # 201712864 MARIANNE BORNHOFT 509-879-3779

2421 W. MISSION New Price $425,000 3 bed, 3 bath Historical Home on 3 city lots w/ river view

MANITO

MARIANNE BORNHOFT - 509-879-3779

SHANE DELANEY 879-2683

FAIR HOUSING 1789 FOR ALL BEFORE THE FAIR HOUSING ACT PROVIDED BY:

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5612 N COPPER RIDGE BLVD

BEDROOMS, 3 BATHS WITH A MAIN

TIM TONANI (509) 370-9161

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PARAS TWO STORY IN EAGLE RIDGE. 3,102 SQFT, 4

DEBBIE ZIMMERMAN (509) 294-1774

1917 W. GAIL JEAN

1617 W. CAROLINA WAY

$294,000 This 2007 spectacular California split level home in the desirable Five Mile area is over 3100 Sq. Ft. 3 bedroom, 2 bathrooms, beautiful kitchen, oversized lot with a view. timto@johnlscott.com

New Price $549,500 Very large home with main ﬂoor master and laundry. Three bedrooms up with bonus room or additional bedroom. Main ﬂoor office, family room, formal living and dining room. Lots of newer upgrades and large in ground pool. dougj@johnlscott.com

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$349,500 Very well maintained 3700+ s.f. home in the Indian Trail area. 5 beds, 4 baths with luxurious master suite. Backyard borders a greenspace. debbiezimmerman@johnlscott.com

BOBBI DEARTH 481-5934

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10048 N. SEMINOLE DRIVE

New Price $314,000

JODIE F OX 509-868-7287 |jodiefoxhomes@ gmail.com

10716 N. IROQUOIS

$345,000 Sprawling 4 level, Mead Schools, ½ acre, remodeled kitchen and baths, 5br/3bth, 3 car garage/RV storage, New roof, siding and deck.

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1917

1968

PRIVATE PROPERTY RIGHTS

THE CIVIL RIGHTS ACT OF 1866

FAIR HOUSING ACT

5th Amendment to the Constitution protects property rights. Slavery, court cases and legislation denied these rights to African Americans, Latinos,Asian Americans, women and other minorities.

Provides that all citizens have the same rights to real property as white citizens. Court cases, immigration laws and racially deﬁned zoning deny those rights.

RACIAL ZONING OUTLAWED The Supreme Court voids zoning based on race. Property owners, real estate interests and local governments employ deed restrictions based on race and religion. Laws and practices continue to deny property rights based on race.

The Supreme Court ends federal court enforcement of racially restrictive covenants.A growing fair housing movement passes ﬁrst fair housing laws in New York City and Colorado in the 1950s.

SPECIAL 4

SUNDAY

THE SPOKESMAN-REVIEW

APRIL 30, 2017

Open This Sunday Sunday, April 30, 2017 Follow us to the areaâ&#x20AC;&#x2122;s best open houses every Saturday & Sunday!

spokesman.com Open

Property Type

Address

BR BTH

Price

Company

Agent

Phone

North

12-3

Single Family

10716 N Iroquois

$314,000

R.H. Cooke

Bobbi DeArth

(509)481-5934

1-4

Single Family

4803 E Patricia

2.5

$345,000

Century 21

Jodi Fox

(509)868-7287

1-4

Single Family

10048 N Seminole Drive

$349,500

John L Scott

Debbie Zimmerman

(509)294-1774

11-3

Single Family

13112 N Howard

$549,500

John L Scott

Doug Juliano

(509)342-0406

12-4

Single Family

1617 W Carolina Way

$294,000

John L Scott

Tim Tonani

(509)370-9161

1-4

Single Family

191 Rockwood

$425,000

Coldwell Banker Tomlinson Shane Delaney

(509)879-2683

2-4

Single Family

2421 W Mission

TBD

Windermere

Marianne Bornoft

(509)879-3779

1-4

Single Family

14105 N Copper Canyon

$725,000

Windermere

Marianne Bornoft

(509)879-3779

1-4

Single Family

5612 N Copper Ridge

$400,000

Windermere

Marianne Bornoft

(509)879-3779

1-3

Single Family

924 W Hawthorne

$1,375,000

Windermere

Greg

(509)979-1962

1-4

Single Family

4220 N Campbell Rd

$297,950

Windermere

Jeremy Thomas

(509)998-8929

1-4

Single Family

1917 W. Gail Jean Lane

$425,000

Choice Realty

Eric Etzel

(509)995-2833

South 1-4

Single Family

1624 S Tacoma

$484,950

ReMax

Sheri Tiltion

(509)280-3000

12-4

Single Family

2511 S Manito Blvd

3.5

$560,000

John L Scott

Lisa Gunderson

(509)847-8999

1-4

Single Family

6515 S Devonshire

$579,500

Coldwell Banker Tomlinson Dave Smith

(509)991-6290

12-3

Single Family

7007 S Moran View

$379,500

Coldwell Banker Tomlinson Rex Neher

(509)936-0443

1-4

Single Family

2018 S Latawah

$280,000

Coldwell Banker Tomlinson Cody

(509)850-6558

1-4

Single Fanily

524 W 24th

2.5

$400,000

COldwell Banker Tomlinson Carolyn Harbolt

(509)991-8900

1-4

Single Family

4706 S Pender Ln

$277,000

Professional Realty Service Courtney Boatsman

(509)290-9951

11-1

Single Family

1324 E 26th

$549,900

Windermere

Vickie Munch

(509)994-2974

1-4

Single Family

4112 S. Stone

$274,900

Kestell Co

Jack Kestell

(509)993-1003

Valley/Liberty Lake

9-4

New Homes

24901 E Reston Ave

$460,000

Greenstone

Kristi Green

(509)496-0174

1-4

Single Family

8718 E Vista Park Drive

$286,000

R.C. Schwartz

Cheryl Hartzog

(509)991-4628

12-4

Single Family

11320 E Broadway

$169,000

John L Scott

Sarah Houk

(509)280-8105

11-2

Single Family

17828 E Apollo

$459,000

Top Gold RE

Beverly Lee

(509)998-3533

12-3

Single Family

15405 E 19th

2.5

$310,900

Coldwell Banker Tomlinson Scherry

(509)994-7454

12-4

Single Family

2708 S Seabiscuit Dr

$349,900

Windermere

(509)995-2325

Samantha Dallas

THE SPOKESMAN-REVIEW

APRIL 30, 2017

SUNDAY

SPECIAL 5

OPEN HOUSE WEEKEND

Much more than a cabin

Lap of luxury

Six-bedroom lodge sits on 200 wooded acres

Other luxury homes for sale in Spokane County:

Mountain estate 5601 W. Hayden Lane, Spokane â&#x20AC;&#x201C; $1.79 million Built in 2008: 7,500 square feet on 3 acres; 6 beds, 6.5 baths Sales pitch: â&#x20AC;&#x153;Northwest elegance and majestic views await you in this custom mountain estate. Sophistication encompasses this home overlooking miles of forested views.â&#x20AC;? Amenities: theater room, game room, gymnasium Agents: Todd and Sarah Grubb, True Northwest Real Estate Group at Keller Williams

By Scott Maben THE SPOKESMAN-REVIEW

What will a million bucks and change get you in Spokane Countyâ&#x20AC;&#x2122;s real estate market? Not nearly as many choices as next door in Kootenai County, flush with lakefront and riverfront listings in the seven figures. Still, if youâ&#x20AC;&#x2122;re looking to drop a meal ticket or more on some luxury digs, a few pricey properties are on the menu in and around Spokane. At the top of the market is Redtail Springs Ranch, a 10,400-square-foot, six-bedroom log lodge sitting on 200 forested acres in the hills south of Greenacres. The estate was listed in mid-December for $3.5 million and has had five qualified showings so far, but no offers, said Lyssa Kopke, a Realtor with Tomlinson Sothebyâ&#x20AC;&#x2122;s International Realty in Coeur dâ&#x20AC;&#x2122;Alene. It also has inspired a lot of lottery jackpot dreamers, apparently. The property is one of the highest viewed Pacific Northwest properties on Sothebyâ&#x20AC;&#x2122;s global network, Kopke said. A video tour of the ranch launched on Jan. 24 has received about 21,000 unique views from around the world, she said. The listing page online has received over 12,000 unique views, averaging about 90 new ones each day. â&#x20AC;&#x153;We can see where theyâ&#x20AC;&#x2122;re clicking in from. We had someone from Moscow, Russia, that was consistently clicking in. We also have someone from Serbia clicking in,â&#x20AC;? Kopke said. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s fascinating to see whoâ&#x20AC;&#x2122;s clicking in, where theyâ&#x20AC;&#x2122;re from." In addition to the sprawling

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Waterfront luxury COURTESY OF TOMLINSON SOTHEBY'S

COURTESY OF TOMLINSON SOTHEBY'S

Lodge features Douglas fir ceilings and Canadian hard maple floors. main house, Redtail Springs comes with two separate 1,500-square-foot bunkhouses. The dream home was built by Curt and Adele Berklund in the late 1990s.They owned and operated timberlands and sawmills in Cottonwood, Elk City and St. Maries, Idaho. He served as national director of the Bureau of Land Management from 1973 to 1977.

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1324 E 26TH

New Price $549,900 EXCEPTIONAL PRIVACY MAKES THIS PRIME SETTING A CLOSEIN RETREAT! ARCHITECTURALLY SIGNIFICANT CONTEMPORARY. SOARING CEILINGS AND GREAT ROOM FLOOR PLAN. WATCH FOR SIGN AT 27TH & DENVER VICKIE MUNCH 509 994-2974

46755 Larson Beach Road, Loon Lake â&#x20AC;&#x201C; $1.87 million Built in 2009: 8,100 square feet on 3.3 acres; 6 beds, 6 baths Sales pitch: â&#x20AC;&#x153;Large dock is yours for recreation. Black walnut floors, granite and tile throughout, geothermal heating, grand kitchen.â&#x20AC;? Amenities: 350 feet of lake frontage, mother-in-law suite and detached studio apartment, 3,000-square-foot garage with RV bay Agent: Bernadette Pillar, Keller Williams

Redtail Springs Ranch is a 10,400-square-foot log lodge on 200 acres south of Greenacres.

Curt was a modern renaissance man: ski jumping, ice hockey, hunting, logging, trapshooting, flying planes, ranching, international consultant. After he retired, the couple moved to Spokane, and Curt served on the Spokane County Civil Service Commission. They property features mature forests, spring-fed

streams, natural meadows and wildlife â&#x20AC;&#x201C; red-tail hawks, white-tailed deer, turkeys, upland game birds and more. Curt, who died in 2013, tapped his expertise in land management to look after the property. He reforested a former wheat field, planting more than 15,000 Ponderosa pines in neat rows, and he restored the health of spring-fed streams and 80 acres of mature timber. As for the lodge, spruce logs were harvested from stands of dead trees burned in the Yellowstone National Park fires in 1988. The logs were hand-peeled, scribed in the Swedish Cope style and assembled on site by hand. The couple chose Douglas fir for the ceilings and trim, Canadian hard maple for the floors, and cherry for custom cabinetry â&#x20AC;&#x201C; all paired with rare granite and fossilized slate. â&#x20AC;&#x153;When you walk in, it can literally can almost take your breath away, itâ&#x20AC;&#x2122;s so magnificent,â&#x20AC;? Kopke said.

Downtown condo 1219 W. Riverside Ave., No. 1219, Spokane â&#x20AC;&#x201C; $1.6 million Built in 1998: 4,200 square feet on 3 floors; 3 beds, 3 baths Sales pitch: â&#x20AC;&#x153;Set in a gated enclave of luxury condos in the coveted downtown area. ... This feels like New York Park Avenue!â&#x20AC;? Amenities: elevator, gourmet kitchen, huge terrace, sauna, $100,000 in cabinet upgrades Agent: Gayle Terry, Windermere Manito

OPEN HOUSE WEEKEND APRIL 29th & 30th

VALLEY OPEN HOUSES Sunday, April 30, 2017 N PE

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8718 E. VISTA PARK DR.

$286,000 Beautiful Northwood home with view, 4BR/3BA with gas ďŹ replace & updated kitchen. All appliances stay! Fenced backyard, sprinkler system & a 3-car garage.

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4220 N. CAMPBELL RD.

$297,950 Completely updated vintage stone home on more than 2 acres with a huge barn and its own â&#x20AC;&#x153;tiny houseâ&#x20AC;?! 4+ BR, 2 BA with beautiful modern kitchen in a desirable Otis Orchards location.

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17828 E APOLLO

$459,000 Impressive custom hm, unobstructed view of Mica Peak, lrg comfortable living rm w/gas frplc, natural wood ďŹ nishes throughout, beautiful hrdwd entry, lrg 10 x 11 mn ďŹ&#x201A;r utility rm w/access to 3c gar, full ďŹ nished bright daylight bsmnt w/6 bds, 2 full bths, wet bar & lrg fam rm, great for entertaining, all with 9ft ceilings.

15405 E 19TH location MFU A/C, Gas FP & Heat attached Gar covered deck & more clubhouse & RV parking.

BEVERLY LEE 509-998-3533

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24901 E. Reston Ave â&#x20AC;˘ Liberty Lake, WA Introducing the Carsonâ&#x20AC;&#x201D;our new floor plan with luxurious ownerâ&#x20AC;&#x2122;s suite, smart home tech package and complete â&#x20AC;&#x153;home in a homeâ&#x20AC;? independent guest suite.

Kristi Green â&#x20AC;˘ 509.496.0174

10326 E. 48TH AVE.

$329,000 RARE FIND! PONDEROSA BEAUTY! 1 Acre w/ 3707 Tot Sq ft 4 bed (plus a lrg off) 3 ba home nestled in the trees. Very spacious rooms thruout! Updtd kit & baths. Gas FA w/CAC. 2 furn w/a wood stove & wood FP. Huge fenced backyard w/a storage shed & small shop. Sewer in and paid! RV Parking. of S pokane RON 280-1000

STU VANZYVERDEN 509-951-7586

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SCHERRY HARDING 509-994-7454

$385,000 2.65 Acre Estate on the Spokane River. Beautiful turn of the century home. Large country kitchen, spacious rooms, 2 pastures, 2 outbuildings, great location, fantastic views. CORNERSTONE

Follow signs at Whisperwood open concept choice

24711 E. RIVER ROAD

JEREMY THOMAS 998-8929

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11320 E. BROADWAY AVENUE $169,000 Adorable Valley Bungalow! 3 beds/1 bath full basement w/family room, large lot w/shop. sarahouk@johnlscott.com LEE & SARA HOUK (509)720-1277 / (509)280-8105

J7NLH & 7 L 7 L n) 7 K n% \?LNM7III

Introducing the Carsonâ&#x20AC;&#x201D;our new floor plan with luxurious ownerâ&#x20AC;&#x2122;s suite, smart home technology package and complete â&#x20AC;&#x153;home in a homeâ&#x20AC;? independent guest suite.

% ') % 7 $ 3 &n ' n n % 24901 E. Reston Av. " iberty Lake, WA

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CHERYL HARTZOG 509-991-4628 CHERYL@RCSCHWARTZ.COM

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Greenstone Real Estate, LLC " 09.496.0174 greenstonehomes.com

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SPECIAL 8

SUNDAY

THE SPOKESMAN-REVIEW

APRIL 30, 2017

OPEN HOUSE WEEKEND “At today’s low mortgage rates, if you are cutting into your retirement savings to pay off a mortgage, you are likely making a mistake.” David Mullins independent financial adviser

What’s your next move?

Making extra mortgage payments can pay off, but should you? loan, not the interest. Try this extra payments calculator from Bankrate to compare how much money the different approaches to making extra mortgage payments can save you.

By Alex Veiga

ASSOCIATED PRESS

t’s a strategy that crosses the mind of many borrowers when they take on a home loan: Make an extra mortgage payment or two every year and save tens of thousands of dollars in interest. The move can shave off costs for a home loan and ensure it’s paid off faster. Even one additional payment a year can translate into big savings. On a $250,000, 30-year mortgage with a fixed rate of 4 percent, making an extra payment every year would save the homeowner roughly $27,724 over the life of the loan. It would also cut the amount of time needed to pay back the loan by 49 months. Even so, there are potential financial drawbacks to consider. Borrowers who can afford to make extra mortgage payments tie up cash that could be put toward retirement or used for emergencies. “It’s really important to look at your financial health in the broader sense,” said Suzanne Martindale, staff attorney at Consumer Union. “The most important thing is to maintain in good standing all of your debts.” Here are some tips to consider before taking steps to make extra payments on your home loan:

Weigh your priorities It may be tempting to double

Watch out for fees

SHUTTERSTOCK IMAGE

Paying extra on your mortgage can be a smart move, but there are negatives to consider. down on your mortgage payments, but doing so before you’ve taken care to shore up your finances overall isn’t a good idea. Financial advisers recommend ensuring that you are saving for retirement and have set aside three to six months’ salary to cover emergencies. If you have children, you’ll also want to put saving for their college tuition ahead of making extra mortgage payments. “At today’s low mortgage rates, if you are cutting into your retirement savings to pay off a mortgage, you are likely making a mistake,” said David Mullins, an independent financial adviser in Richlands,

Virginia. “You don’t want to have your nest egg tied up in a property where you can’t easily convert it to cash.”

Slash other debt first Paying off high-interest debt such as credit cards is another priority that should be put before focusing on paying down your home loan faster. Consider paying off car loans, too. That’s because home loans are likely the least costly debt a borrower will have, especially if they took advantage of low mortgage interest rates. In addition, homeowners are allowed to take a deduction on their income taxes for the interest paid on their home

loan.

Do it yourself You’ve decided to accelerate payments on your mortgage, so what is the best approach? There are many ways to get there, including paying a little bit extra every month, or making a lump-sum payment at the end of the year. Another approach involves paying half of your monthly mortgage bill every two weeks. Over the course of a year, you end up making 26 transfers, which works out to an additional monthly payment. Contact your lender to make sure they allow extra payments and will apply the funds toward the principal on your

Regardless of the payment plan, steer clear of businesses that offer to handle your extra payments for a fee, said Martindale. “Consumers need to be very wary from sales pitches from third-party companies,” she said. “If they’re charging a fee for their service, it can undercut any potential benefits they might be offering.” The Consumer Financial Protection Bureau has sued several companies that offer to handle borrowers’ twice-monthly mortgage payments. The agency claims the companies misled consumers about how much they could save in interest on their home loan. One company, Paymap Inc., agreed last year to pay a $5 million civil penalty and return $33.4 million in fees to consumers. According to the CFPB website, consumers were typically charged an enrollment fee of $295 for the “Equity Accelerator Program.” There was a transaction fee for each automatic debit, typically $2.50. Since July of 2011, approximately 125,000 consumers enrolled in the Paymap’s program and paid $33.4 million in fees. Another firm in the biweekly mortgage payment collection business, LoanCare LLC, agreed to pay a $100,000 civil penalty.

How Fed hike will affect home mortgages By Christopher S. Rugaber and Alex Veiga ASSOCIATED PRESS

WASHINGTON — Are mortgage rates going up? With the Federal Reserve having raised its benchmark interest rate last month and signaling the likelihood of additional rate hikes later this year, consumers and businesses will feel it — if not immediately, then over time. The Fed’s thinking is that the economy is a lot stronger now than it was in the first few years after the Great Recession ended in 2009, when ultra-low rates were needed to sustain growth. With the job market in particular looking robust, the economy is seen as sturdy enough to handle modestly higher loan rates in the coming months and perhaps years. "We are in a rising interest rate environment," noted Nariman Behravesh, chief economist at IHS Markit. Here are some answers on what this could mean for the real estate market: Q. I’m thinking about buying a house. Are mortgage rates going to march steadily higher? A. Hard to say. Mortgage rates don't usually rise in tandem with the Fed's increases. Sometimes they even move in the opposite direction. Long-term mortgages tend to track the rate on the 10-year Treasury, which, in turn, is influenced by a variety of factors. These include investors’ expectations for future inflation and global demand for U.S. Treasurys. When inflation is expected to stay low, investors are drawn to Treasurys even if the interest they pay is low, because high returns aren't needed to offset high inflation. When global markets are in turmoil, nervous investors from around the world often pour money into Treasurys because they're regarded as ultra-safe. All that buying pressure keeps a lid on Treasury rates. Last year, for example, when investors worried about weakness in China and about the U.K.’s exit from the European Union, they piled into Treasurys, lowering their yields and reducing mortgage rates. Since the presidential election, though, the 10-year yield has risen in anticipation that tax cuts, deregulation and increased spending on infrastructure will accelerate the economy and fan inflation. The average rate on a 30-year fixed-rate mortgage has surged to 4.2 percent from last year’s 3.65 percent average. Q. So does that mean home-loan rates won’t rise much anytime soon? A. Not necessarily. Inflation is nearing

the Fed’s 2 percent target. The global economy is improving, which means that fewer international investors are buying Treasurys as a safe haven. And with two more Fed rate hikes expected later this year, the rate on the 10-year note could rise over time — and so, by extension, would mortgage rates. It's just hard to say when. Behravesh forecasts that the average 30-year mortgage rate will reach 4.5 percent to 4.75 percent by year's end, up sharply from last year. But for perspective, keep in mind: Before the 2008 financial crisis, mortgage rates never fell below 5 percent. “Rates are still incredibly low,” Behravesh said. Even if the Fed raises its benchmark short-term rate twice more this year, as it forecast on Wednesday that it would, its key rate would remain below 1.5 percent. “That’s still in the basement,” Behravesh said. Q. Why is the Fed raising rates? Is it trying to slam the brakes on economic growth? A. No. The rate hikes are intended to withdraw the stimulus provided by ultra-low borrowing costs, which remained in place for seven years beginning in December 2008, when the Fed cut its short-term rate to near zero. The Fed acted in the midst of the Great Recession to spur borrowing, spending and investing. The Fed’s first two hikes — in December 2015 and a year later — appear to have had no negative effect on the economy. But that could change as rates march higher. Still, Fed Chair Janet Yellen has said policymakers intend to prevent the economy from growing so fast as to boost inflation. If successful, the Fed's hikes could actually sustain growth by preventing inflation from rising out of control and forcing the central bank to have to raise rates too fast. Doing so would risk triggering a recession.

THE SPOKESMAN-REVIEW

APRIL 30, 2017

SUNDAY

SPECIAL 9

OPEN HOUSE WEEKEND

Return on investment

Condos may be appreciating faster than homes By Ken Harney WASHINGTON POST

It’s a real estate question that historically has had an easy answer: Do single-family detached houses appreciate in value faster than condominiums? The standard answer has been: Of course single-family houses appreciate faster. They are what most Americans prefer to live in, so there’s stronger demand. They come with their own piece of land — and we all know that land is a crucial driver of value. Condos, on the other hand, tend to be smaller in square footage as well as more complicated. They come with boards of directors, association fees, rules and restrictions. But hold on. New research conducted for this column by Trulia, the online realty marketing and information company, suggests that these old assumptions could be giving way to changing market trends. According to data compiled by Trulia on millions of properties in the 100 largest metropolitan areas between February 2012 and February of this year, the median appreciation rates of condos outpaced those of single-family detached houses. It wasn’t even close. Median condo market values rose by 38.4 percent over the five-year period, while median single-family detached houses appreciated by 27.9 percent. In some local markets, especially those that have seen significant new condo construction downtown or that have little available land suitable for detached housing, the median value of condos exceeds median values of single-family detached houses in the surrounding suburbs. The most extreme example is metropolitan New York, where median condo values are now at 138 percent of median single-family detached house values. In Detroit, the median condo value is 125 percent of median single-family house values. Major urban areas where condos are appreciating faster than detached single-family units include Seattle, San Francisco, San Jose,

TYLER TJOMSLAND/THE SPOKESMAN-REVIEW

The Upper Falls Condominiums were completed in 2007 and, according to its website, there are no units available. Atlanta, Dallas-Fort Worth, Denver, Syracuse, San Diego, Boston and dozens of others. Single-family house values continue to be higher in the vast majority of markets, but the gap is narrowing in many, thanks to the faster appreciation rates of condos in recent years. Ralph McLaughlin, chief economist at Trulia, says one reason for the trend is that in many urban markets, condos are “located in areas that are becoming more desirable because they are closer to amenities”: employment, transit and other attractions. Some metro areas — such as Washington — that have high-cost single-family houses in parts of the city and in the close-in suburbs, are seeing only slight increases in median condo values relative to single-family houses. The D.C. market has experienced modest growth in values during the past five years, but condos have appreciated a smidgen faster: 22.4 percent, compared

7 Annual th

with 21 percent during the same period for detached single-family houses. Other major metro areas, such as Chicago, aren’t seeing the pattern noted by Trulia. In the past five years, median Chicago condo values are up by 23 .3 percent, but median single-family values have risen by 25.5 percent. Trulia’s analysis may be controversial. It derives from the massive database it maintains on millions of housing units nationwide. Using an automated valuation model that incorporates a wide range of data available on individual houses, it estimates ongoing property values for both properties that are on the market and those that are not. Some housing economists take issue with Trulia’s conclusions on condo appreciation. The National Association of Realtors reports that based on closed sales prices — not automated value estimates — single-family houses appreciated an average of 4.7 percent annually between 2010 and 2016, while

condos averaged 3.4 percent. Rob Dietz, chief economist of the National Association of Home Builders, says that based on construction starts of condos, which totaled just 28,000 in 2016, he does not see demand pushing up prices faster on condos compared with detached houses. But Trulia’s McLaughlin insists that using automated estimates of value produces a more accurate picture. “Sales prices are susceptible to significant bias because of the mix” of houses on the market at any given point, he says. “We estimate the value of all houses and take the median of that number instead. This approach is prone to less bias than taking median sales prices.” What to make of the new Trulia data? Clearly condos are playing a key role in some cities’ downtown revivals. In other markets, they continue to be more affordable than detached single-family houses and may be appreciating in value faster as a result.

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1866

1917

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PRIVATE PROPERTY RIGHTS

THE CIVIL RIGHTS ACT OF 1866

FAIR HOUSING ACT

5th Amendment to the Constitution protects property rights. Slavery, court cases and legislation denied these rights to African Americans, Latinos,Asian Americans, women and other minorities.

Provides that all citizens have the same rights to real property as white citizens. Court cases, immigration laws and racially deﬁned zoning deny those rights.

The Supreme Court ends federal court enforcement of racially restrictive covenants.A growing fair housing movement passes ﬁrst fair housing laws in New York City and Colorado in the 1950s.

SPECIAL 10

SUNDAY

THE SPOKESMAN-REVIEW

APRIL 30, 2017

OPEN HOUSE WEEKEND

Cozy view of the ballpark Luxury housing marks the latest trend in stadium amenities

By Troy McMullen SPECIAL TO THE WASHINGTON POST

By the time it’s completed in 2019, the new stadium complex for the National Football League’s Los Angeles Rams will span almost 300 acres with free-standing concession stands encased in glass and a 50-foot-tall video board covering the length of the playing field. Premium suites inside the 70,000-plus seat facility will include up to 20,000 club seats and loge boxes, including Lux Cabanas, a beach-themed club at field level hovering above one of the end zones. Yet the $2.6 billion project just south of L.A. in the city of Inglewood will also include another coveted amenity for any die-hard sports fan: luxury homes. In addition to a hotel, casino and 620,000 square feet of retail space, the new stadium complex will include Hollywood Park, a residential property development with up to 3,000 homes. While some of the new dwellings are aimed at middle-income residents who have been increasingly squeezed by L.A.’s soaring real estate market, most will target the luxury sector with sprawling apartments overlooking the stadium outfitted with wedge hardwood flooring, sliding glass doors and soaring beamed ceilings. The project’s developers, Wilson Meany and Stockbridge Capital Group, have yet to reveal prices. “We’re building a year-round community, not just a sports stadium,” says Gerard McCallum II, project manager for Wilson Meany who is overseeing Hollywood Park. “This will give fans and Los Angeles residents a great opportunity to be a part of the sports environment and connect with a real community.” As more cities across the United States break ground on expensive new sports stadiums and arenas, some are including real estate components either directly on the complex grounds or nearby. From Atlanta to Minneapolis, Sacramento to Miami, developers are rushing to add condominiums and rental apartments to the long list of amenities available to ardent sports fans. The move to add real estate is fueled, in part, by wanting to bolster the fan experience, but it is also an attempt to offset the soaring price tags to build new stadiums in some cities, say real estate experts.

JOHN MCDONNELL/THE WASHINGTON POST

Tenants of First Residences, a 325-unit apartment building in Washington, D.C., watch the Washington Nationals play ball. Rental prices range from $1,225 to $4,505. “I can watch batting practice from my apartment. I make “We’ve created this unique something to eat and go on the roof and watch the game.” opportunity to not only tailgate from your patio but also to enjoy other Bob Lind, 52, qualities residents look for like walking software developer and biking trails and easy access to major highways,” says Steven Shores, president and co-founder of Pollack Shores. selling point – stadium-style seating on In some cases, developers are also The new residential developments being pressured by city governments and the roof with views into Nationals Park. “I can watch batting practice from my arrive amid another boom in stadium and local residents to add affordable housing arena construction around the United apartment. I make something to eat and to these massive stadium projects. go on the roof and watch the game,” said States. At least a dozen new professional Residents have begun moving into Bob Lind, 52, a software developer, who sports complexes are under some form of First, a 325-unit apartment building at development, with twice as many in the moved into First in early April. 1263 First St. SE in the District near planning stages, according to the CoStar “There’s stadium seating with a big Nationals Park. The mixed-use project is screen,” added Lind, who also goes to the Group, an online marketplace for being developed jointly by Grosvenor games. There’s also a “panoramic view of commercial real estate. This is on top of Americas and McCaffery Interests and the dozens of professional ballparks and the city – there’s the Washington will include more than 24,000 square stadiums erected during the late 1990s Monument, the National Cathedral, the feet of retail space and a Residence Inn Capitol and the Anacostia River. You see and early 2000s. by Marriott. Despite putting up with the noise, everyone partying in the bullpen – it’s Rents for the studio, one- and crowds and traffic (to say nothing of pretty cool.” two-bedroom units range from $1,815 to After more than a decade of delays and losing seasons), adding residential $4,520. property near or on a sports complex can lawsuits, a major development around The new property includes a add value to a home, housing data Barclays Center in Brooklyn – the home swimming pool, a hot tub and a key indicates. of the Nets and Islanders that opened in According to real estate website Trulia, 2012 – is finally accelerating construction the areas around major league baseball of affordable housing. stadiums saw home values rise 15 percent While the $1 billion arena is the higher than the greater metropolitan centerpiece of the Pacific Park project, areas in which they were located. While thousands of apartments are also being built aimed at working- and middle-class those values vary widely based on stadium location, Trulia data showed that families who are shut out of a rapidly the areas around 18 of the 29 stadiums gentrifying area near downtown had higher median home values Brooklyn. compared with the cities in which they Nina Maluenda says being close to are located. Rents in those 18 Barclays Center was only part of the neighborhoods were either higher or reason she and her husband, Mehdi, equal to those in the surrounding towns, moved into 461 Dean Street, one of Trulia says. several new towers in Brooklyn Homes around newer baseball overlooking the sports complex. Developed by Forest City Ratner Cos., stadiums – which tend to be in pricier the 32-story building has 363 rental units neighborhoods – fared better, Trulia notes. Of the 14 stadiums built since 1999, that are designated as 50 percent only two neighborhoods – around affordable, 50 percent market rate. “It’s nice to be so close to the sports arena, but Marlins Park in Miami and Miller Park in Milwaukee – had home values lower than we really liked being in the center of the metros in which they were located. culture and the arts in Brooklyn,” says Opened in 2008, Nationals Park in Maluenda, a marketing associate. “The Washington, D.C., is perhaps a prime building is right next to a lot of art and example of a ballpark fueling residential performance spaces in this part of Brooklyn, and that really appealed to us.” development and lifting home values. Once home to one of the District’s grittier But the push in Brooklyn to build neighborhoods, the area around the affordable housing as part of a sports ballpark is today booming with new complex is largely an exception rather construction, including upscale than the rule. apartments, restaurants and bars. “Some developers see a real financial Since 2012, more than 2,300 residential upside to adding middle- and upper-income housing to these projects,” units have been added to the area around says Selma Hepp, chief economist at San Nationals Park, and 3,727 are in the Francisco-based Pacific Union. “They are pipeline, according to RealPage, a maker creating communities that they think will of property management software. The influx of development makes the area the deliver financial reward in the long fifth-busiest submarket in the United term.” States for apartment construction, In Sacramento, the new RealPage says. state-of-the-art home of the National And the area is getting more property Basketball Association’s Kings cost development. Construction is expected to nearly $600 million to build. The begin soon in the nearby Buzzard Point 17,608-seat arena opened last fall and includes 82 luxury suites and year-round neighborhood on a new D.C. United soccer stadium and two apartment access for its owners. An in-arena app projects with a combined 869 rentals and also allows fans to help control the condos. temperature in their section. “The Nationals’ stadium has been an But developers of the Golden 1 Center are also set to open a 16-story mixed-use absolute property boon to that area,” says Michael Rankin, managing partner of office tower including a 250-room hotel TTR Sotheby’s International Realty in in the summer and residence on the the District. “The city hasn’t seen complex grounds later this fall. The anything like it in decades.” Sawyer overlooks the new arena and The Baltimore Orioles helped usher in includes 45 condominiums with some of the stadium-building boom in 1992 when the highest prices in the city. they opened Camden Yards. But Trulia The Atlanta Braves moved into their found that home values around that new $672 million ballpark this season. Yet beyond the 4,000 premium seats and ballpark were 16 percent lower than the greater metro area: $211,724 near the 18,000-square-foot hospitality club, the stadium vs. $251,724 for the city. project at SunTrust Park also includes Home at the Battery Atlanta, three new But Seema Iyer, an assistant professor residential communities under of real estate at the University of construction on the complex grounds. Baltimore, says the Trulia data doesn’t Totaling 531 units, the three rental consider the longer view of housing properties will feature one-, two- and around Camden Yards. three-bedroom apartments with “If you look at what home prices were amenities ranging from exclusive like in that area of Baltimore before the clubhouse access to rooftop bars and park was built and compare that to today, lounges with wraparound balconies with you’ll see fairly sharp housing ballpark views. Developer Pollack Shores appreciation,” Iyer says. “Camden Yards says one of the three communities, was a pretty depressed area before the Residences, was ready Opening Day on park arrived, but since then it’s seen a April 14 when the Braves hosted the San tremendous level of commercial and Diego Padres. The other two retail activity, so the park literally created communities, Parkside and Flats, will a housing community that didn’t exist open in May and July, respectively. before.”

THE SPOKESMAN-REVIEW

APRIL 30, 2017

SUNDAY

SPECIAL 11

OPEN HOUSE WEEKEND

To flip...

or not?

TYLER TJOMSLAND/THE SPOKESMAN-REVIEW

Lee Arnold of Cogo Capital walks through the basement of a problem house on N. Cedar last September. Arnold put $85,000 into the rehabilitation of the home.

FLIPPING NOT AS EASY AS IT LOOKS ON TV Dos and don’ts

By Pia Hallenberg THE SPOKESMAN-REVIEW

We’ve all watched the TV shows where a house with a sagging roof, backed-up plumbing, broken windows and a pool full of alligators is purchased for nothing, and then magically turned into a beautiful rancher that’s bought for a lot by an equally beautiful family – in an hour. It’s called “flipping,” and it rarely goes as easily as seen on TV. Aaron Cunningham knows what he’s talking about. He’s the CEO of Inland Capital, and together with business partner John Urquhart, he estimates he’s been part of 400 flipping projects since 2003. “The myth of the TV show is that you can just do this right away,” Cunningham said. “In reality you have to do a lot of houses before you get really good at it.” And you can’t start with nothing. Cunningham said his clients have to start with between $30,000 and $40,000 in cash. The size of the starting capital depends on the market. “In Seattle, our clients start with three or four times as much,” Cunningham said. “Some companies advise you to run up your credit cards for a flip. I would never recommend that.” The most important thing is not the location, but whether the flipper gets a great deal. “If you don’t buy for the right price, then nothing else matters,” Cunningham said. Competition for property in so-called good neighborhoods is higher, driving up prices compared to less desirable areas or smaller communities. “Everyone wants to live on Manito Boulevard, but I’m more interested in the good deal in Deer Park,” Cunningham said.

HGTV

Tarek and Christina El Moussa are the stars of HGTV’s Flip or Flop. When the number of foreclosures topped a couple of years ago, there were a lot of neglected properties auctioned off every week. The number of foreclosures has gone down, Cunningham said, but people still unload their homes for a variety of reasons. “I hate to sound too much like an undertaker, but as long as we have death, divorce and job loss, there will always be properties out there,” Cunningham said. Nuisance houses may be perfect candidates for flipping, though some require an extreme amount of rehabilitation, like the North Cedar Street home Lee Arnold of Cogo Capital bought and flipped earlier this year. That home had no working plumbing or heating – the occupant burned pieces of the walls and used a bucket in the backyard as a toilet.

TYLER TJOMSLAND/THE SPOKESMAN-REVIEW

Arnold gutted the house, finished the basement, added a bathroom, gas heating and egress windows. The house went on the market for $189,900 in early February and had a full-price offer within a few days. Arnold said Cogo put about $85,000 into the rehabilitation, making it one of the company’s more profitable flips. The biggest pitfall, according to Cunningham, is perhaps also the most difficult to avoid: Do not get emotionally involved with the deal. “Everyone sees a house they really like and think it’s going to be just like that TV show,” Cunningham said. “If the price isn’t right, then it’s not.” CONTACT THE WRITER:

(509) 459-5427 piah@spokesman.com

PRICE: Get the lowest price you can on the property. LOOK CLOSELY: When you look through a home, consider what you can’t see: electrical wiring, plumbing – both can hold expensive surprises, especially if you’re looking at a home where power and water has been turned off. INSURANCE: If your “flipper” is unoccupied, make sure you can insure it. BRING CASH: Even if you plan to live in the home while you work on it you will need cash to get started. CLEANUP: Don’t underestimate the cost of having old carpets and drywall hauled away. If there’s a lot of trash on the property, that will cost money, too. PRIORITIZE: A leaking roof will ruin interior renovations, so fix the roof before you refinish the floors. PROTECTION: Protect cabinets and floors you want to keep with plastic, cardboard and plywood before demolition begins. Old hardwood floors can be a great asset, but not if they are scarred by plaster falling from the ceiling you took down. HAZARDS: Watch for lead paint and asbestos in ceilings and pipe wrapping. Know your materials and wear appropriate eye and airway protection when you work. Asbestos must be removed by licensed contractors. BUDGET: Make a budget and don’t overspend. An extra couple hundred bucks in each room adds up quickly. ASK: Seek advice from experienced flippers before you dive in.

Sources: Aaron Cunningham, Inland Capital LLC., and the DIY Network

JESSE TINSLEY/THE SPOKESMAN-REVIEW

Kyle Campbell, right, and Lee Arnold, start work on N. Cedar home last September. The completed rehab project on N. Cedar went on the market for $189,900.

SPECIAL 12

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APRIL 30, 2017

THE SPOKESMAN-REVIEW