HomeFinders Weekend August 4-6, 2012

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Homefinder’s WEEKEND WEEK OF AUG. 4TH

Realtor’s Corner The Impact of the 3.8% Tax on Rents July 20, 2012 Economist Commentaries

by Lawrence Yun, Chief Economist

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This hypothetical law, though clearly unconstitutional, provides a good illustration of the tax shifting impact. If the peach price at your grocery was $2 per pound before this tax, then the peach price after the tax will still be $2 per pound because consumers will have shifted to buying Georgia peaches. South Carolina farmers who try to raise the price to $2.50 will attract no buyers and will go bankrupt.

So they have to match the price of Georgia peaches while cursing the federal government. Consumers are not impacted but South Carolina producers are.

Going back to our original question: how much of the 3.8 percent health care tax on rental income will get shifted to tenants as a higher rent? It will depend on what economists call elasticity of supply and demand curves. The possibilities are:

As part of the health care legislation, a new 3.8 percent tax will be imposed on some people starting in 2013. Contrary to rumors among some real estate practitioners, this is not a tax on the sale of a home.

Neither a home-buyer nor home-seller will have to pay $3,800 to the federal government on the sale of a $100,000 home.

If tenants have many options - like living in their parent’s basement or taking on a third roommate - then the tax burden will reside with landlords and not renters.

This tax, however, will impact some landlords and some homeowners who have significant housing equity. Rental incomes will be subjected to this 3.8 percent tax on landlords who earn more than $200,000 a year. For example, a corporate lawyer who has a high salary but who also owns a rental property will likely be subject to this tax. But as with most taxes, those who have to pay the money to the federal government and those who actually suffer the burden of the tax will not be the same. The right question to ask is: how much of this tax on rental income will get shifted to tenants as a rent hike?

If tenants do not have many options - after getting tired of the loud third roommate - then landlords will witness a strong demand for their rental properties and can raise rent.

If landlords have many options - like getting out of the rental property business and buying stocks instead - then fewer rental properties will be built over time and fewer rentals will be available, thereby resulting in higher rent for tenants.

As an illustration, consider a simple sales tax. Retail stores are the ones sending the tax dollars to the government, but the consumers are the ones who get squeezed. A $100 bag of groceries without tax suddenly becomes a $104 bill with a 4 percent sales tax.

If landlords do not have many options - to avoid the capital gains tax or because of an historic attachment to the property - then the landlord will bear the tax.

The actual outcome will depend on the above four possibilities. It is very hard to quantify the actual magnitude of the tax shift. However, as can be seen, we should not assume that the 3.8 percent tax is only for top income households. Some of the lower income renters could easily face higher rents.

Now consider the following example where consumers do not get hurt because tax shifting is impossible. Georgia is the Peach State but to its dismay South Carolina overtook Georgia last year in peach production. So let’s impose a tax on peach growers in South Carolina and only for this state.

If you’re in the market for a new home, remember – location is everything.

Monthly home sales in the Wenatchee area Year to date totals Jun. 2012 = 441 Jun. 2011 = 353

Average sales price YTD Jun. 2012 = $242,096 Jun. 2011 = $239,637

Median* sales price YTD Jun. 2012 = $207,000 Jun. 2011 = $210,000

* Median price denotes that half of the houses were priced greater than the median price, half were lower

100

Dollar volume homes sold YTD

60

$120,000,000

1 S. Chelan St., Wenatchee •

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Agents

80

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40

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Source: Pacific Appraisal Associates (Figures include home and condo sales)

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Karen Boghokian, Broker 509-860-9052 (Cell) 509-662-2100 (Office) karenboghokian@gmail.com Century 21 Exclusively • 135 N. Mission, Wenatchee, WA 98801 Over 21 Years of Real Estate expertise partnered with the National Exposure of !

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Melissa Kiser

1 S. Chelan St., Wenatchee • 509-888-8887

Barb Dodge • 630-6539 • ColdwellBankerLaVigne.com

509.668.8800

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R E A L E S TAT E

679-5056 Connect to johnlscott.com/wenatcheeofice • 662-4772 • 1201 N. Wenatchee Ave.

www.wenatcheepremierhomes.com Stephen Office: 662-3491 Bishop fax: 664-3897

679-7004

Sharon Moreland

670-0075

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Lorre Stimac Realtor cell: 509 670-7653 fax: 509 662-2164 lorrestimac@hotmail.com

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Bringing Your Dream Home 175 E. Penny Rd. ~ Wenatchee, WA 98801

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North Central Washington

Homefinder’s WEEKEND WEEK OF AUG. 4TH

N<<B<E; FG<E ?FLJ<J August 4 & 5, 2012

Saturday Open Homes $208,000

1922 Sunset Highway Open Sat. 10-12 Home on .80 acres with shop. Directions: North on Sunset Highway, home is on the left after 19th. St. John L. Scott Wenatchee Julie Lester 264-5423

Wenatchee $129,900

1815 #2 Canyon Open Sun. 2-3:30                            Century 21 Exclusively Bitsi George 670-8555

$129,900

201 S. Elliott #26 Open Sun. 12-2                                        Premier One Properties Gary Mullen 679-4132

$160,000

20 S. Delaware Open Sun. 2-3:30 Spacious 2 bed, 2.5 bath townhouse condo with a tastefully updated kitchen featuring Corian counter tops and stainless appliances. Great convenient location. Directions: On the corner of Washington and Delaware.

Laura Mounter Real Estate & Co. Cindy Smith 664-6278

$168,500 515 Hawthorne Open Sun. 2-3                             Century 21 Exclusively Chris Boghokian 630-2448

Wenatchee

Wenatchee

$199,900 1335 S. Miller

Open Sun. 11:45-1:45                           Century 21 Exclusively Bitsi George 670-8555

$219,500

1535 Virginia Way Open Sun. 2-4 Beautiful home located off the Street, 3 Bed, 2.5 Bath, 1 extra room, open kitchen, Master Bedroom has a wonderful view of East Wenatchee. Fenced yard. RV parking. Directions: Crawford, South on Trisha Way, left on Virginia Way. Premier One Properties Wilber Zaldivar 630-6805

$230,000

2109 W. Honeysett Rd. Open Sun. 1-3                                         Herring & Associates Melissa Bohart 668-1848

$269,900 1310 Second Open Sun. 12-3 Fantastic 4 bedroom, 2 bath home remodeled inside and out.

Stainless kitchen, hardwood and carpet oors, all new electrical system, . Directions: West on th to Pear ane, South on Pear, West on Second Street.

Century 21 Exclusively Pam Wright 860-4487 $299,500 1037 Westmorland Open Sun. 2-4 Price reduced on this spacious view home. Beautiful deck overlooks river and city. 4 bed, 2 bath, 2600+ sq. ft. Don t miss this. Directions: Fifth St., right on Surry, left on Westwick, right on Westmorland.

Century 21 Exclusively Lee Hildebrand 669-7601

2415 No. 1 Canyon Rd. Open Sun. 1-2:30 Very Large 4,780 sq. ft., daylight rambler. Views, 1.5 acres, 7 bed, 3.5 bath home, commercial kitchen, double laundry, attached apartment. 10 acre parcel included in sale/option to sell or build. Directions: West on 5th to No. 1 Canyon, past Lars.

Windermere Real Estate/NCW Jerry Paine 860-7696

717 S. Lexington Open Sun. 12-1:30 PRICE REDUCED: Spacious two story home with over 2200 square feet at a great price. 3+ bedrooms, 2.5 baths, huge garage, private backyard. Directions: Kentucky to SE 6th, right on Lawler, left on Lexington.

Century 21 Exclusively Lee Hildebrand 669-7601

$428,800 239 Chatham Hill Road Open Sun. 12-2 Unbelievable view of the Wenatchee River and town. Meticulously cared for 3 bedroom, 2.5 bath daylight rambler on .41 of an acre. 2 car garage. Directions: Cordell St. to Chatham Hill, follow signs.

Century 21 Exclusively DeAnn Compton 670-9966

$229,900 1205 NE 9th Open Sun. 12-1:30                                          Premier One Properties Steve Bishop 679-7004

$925,000 9889 US 97 A Open Sun. 1-3 Columbia River Front Log Home! 2,920 sq. ft., 3 bed, 2.5 bath, large wrap around deck, mountain/river views, private beach with dock, large shop/garage with living area. Directions: Hwy 97 towards Chelan, appx. 10 miles to 200 mile marker Windermere Real Estate/NCW Christie Kay 630-8289

Sunnyslope $649,000

900 Golden Crest Dr. Open Sun. 12-2:30                                         Premier One Properties Kay Stevens 421-4915

East Wenatchee

$175,000 118 N. Wilson Open Sun. 1-3:30 $12,000 price reduction, motivated sellers, 2+ bedroom home. Newer roof, paint in/out, carpet. Nice Neighborhood, close to schools and shopping. Directions: From N. Miller, West up Orchard, left on N Wilson.

Century 21 Exclusively Mark Owyen 670-0274 REALTORS®, through the National Association, Washington Association and the North Central Washington Association, actively involve themselves in areas that will improve their profession and communities.

1217 Red Apple Rd. Open Sun. 12-1:30 Country Life In Town. This 2 bed, 2 bath home has that back country feel right here in town! End of drive privacy on over ½ acre. Back yard pool surrounded by landscaping, backs to irrigation canal. Directions: South on Miller, right on Red Apple Rd. Premier One Properties Wilber Zaldivar 630-6805

$184,900 214 Ridgemont Dr. Open Sun. 12:30 -2:30 CLEAN! 4 bedroom, 2 bath family home, quiet street with huge family room in daylight basement, Fenced back yard.

Directions: From Hwy 28, East on Third past Costco, left on Eastridge, left onto Ridgemont, house on left.

Premier One Properties Steven Schwind 421-1150

Members of the North Central Washington Association of REALTORS® give back to the community by donating their time to help the American Red Cross during their February Blood Drive.

$175,000

$299,900

1247 Marble Street Open Sun. 12-2                                        Coldwell Banker LaVigne Laurie Carlson 393-9010

$340,000

2115 Sage Grouse Open Sun. 12-3                                   Premier One Properties Mae Hamilton 630-1104

$199,900 94 N. Nevada Open Sun. 2-4 1812 sq. ft. updated spacious manufactured home on .32 acres. 3 bedrooms, 2 baths. Corner fenced lot. Huge 1008 sq. ft. shop, plus 250 sq. ft. studio. Directions: Up Grant Road, left on Nevada.

Premier One Properties Steve Bishop 679-7004

$197,300

$349,900

$220,000 756 Goldenview Place Open Sun. 12-1:30                               Century 21 Exclusively RJ Wallis 670-2007

32 Harrison Open Sun. 12-2                            Coldwell Banker LaVigne Tom LaVigne 860-9998

1916 Broadway Place Open Sun. 12-1:30 Beautiful, large, affordable Broadview home. Open living room, covered back patio area, 3 car garage, mature landscaping and irrigation water. Broadview Association pool membership. Directions: N. Western to Maiden Lane, left on Broadway Place.

Century 21 Exclusively DeAnn Compton 670-9966

East Wenatchee $225,000

$399,500

$259,900

2178 Blackstone Court Open Sun. 12:30-2:30 2012 4 bed, 2.5 bath home in newer development.

Custom cabinets, granite counter tops and hardwoods. Master features 2 closets with built-ins. Directions: North on Baker, right on 21st, left on Blackstone Ct. Century 21 Exclusively Gene Palmquist 393-9820

Starting at $309,950 Rivervue Open Sat & Sun 12-4 Model homes from 1965-2814 Sq. Ft. Impressive designs, ramblers, two story, daylights, complete with landscaping.

Starting at $309,950. Directions: Up Grant Road, RIGHT on Kentucky, left on 4th, right on Lyle. Corner of SE 8th and Lyle.

Premier One Properties Sharon Moreland 670-0075 $325,000 2754 N. Breckenridge Open Sun. 12-1:30                                      Laura Mounter Real Estate & Co. Cindy Smith 664-6278 $349,900

34 S. Mandolin Open Sun. 12-2 Beautiful 3274 sq. ft. open concept daylight rambler with 9 ceilings, 5 bed, 3 bath, huge deck for entertaining. Gourmet kitchen features slab granite counter tops, double ovens.

Directions: East on Grant Rd. past Kentucky, right on Mandolin.

Premier One Properties Jeannie King 679-5150

$549,000

2702 Gracie Lane Open Sun. 11:30-1 Million dollar view! This rare opportunity to own a home in East Wenatchee s ONLY waterfront subdivision will not last! Enjoy the Columbia River from your covered deck. Directions: Hwy WA-28E, right on S. Perry, left onto Gracie Lane.

Century 21 Exclusively Nikki Birmingham 679-9246

Leavenworth

$269,900 2015 Valley View Blvd., Open Sun. 1-3 $249,000 808 Pine St. Open Sun. 12-2 Gorgeous! Updated view home with large shop...much more. Fresh paint inside & out. 4 bed., 2.75 baths. Directions: Directions: North on Eastmont, left Valley View.

Chumstick Hwy., left on Cedar, right on Fir, left on Pine.

John L. Scott Wenatchee Rebecca Hackworth 421-2007 John L. Scott Wenatchee Darlene Garton 881-1600

For additional information on these Open Houses visit: www.ncwaropenhouses.com 3 PM  2 1 .

UN S N E OP Office: 509-662-2100 135 N. Mission Wenatchee

$350,000 ...... COLUMBIA RIVER WATERFRONT Just a few miles past Rocky Reach Dam. Two parcels, total 76+ acres approximately 800 front feet of waterfront, plus a pond. Power and a private well. Under highway access tunnel. Several building sites. MLS# 698143 Cindy Seyster 509-670-6466

$397,000.............. LEAVENWORTH Recreation Abounds! Natural wood home, wrap around porch, custom kitchen, built-ins, master suite + 2 large bedrooms, utility/mud room, rock & wood accents. Large shop with loft, kitchen, and bathroom. MLS# 698998 Jamie Wallace 670-3305

$279,500.....................CASHMERE Beautiful 2,600 sq ft home! Master suite +3 bedrooms, walk in closets, 2.5 baths, new appliances, tile floors, fresh paint on the main and exterior. Double garage, fenced yard, irrigation. Great Location! MLS# 697838 Jerry Paine 860-7696

$269,000.............. LEAVENWORTH 2 Bedroom Chalet on 1.5 acres. USFS to the east, Chiwawa Communities waterfront to the north, knotty pine interior, wood stove, river views, decks, hot tub, outbuildings, double garage with apartment upstairs.

MLS #698954 Geoff Ford 860-0554

$249,900.................. WENATCHEE EASY LIVING in 3 Bedroom, 2.5 Bath Home! Open-floor plan, vaulted ceilings, main floor master. Bonus room perfect for home office, playroom, or reading area. Fresh paint, new carpet, and hardwood floors. MLS# 698647 Jamie Wallace 670-3305

$235,000.............. LEAVENWORTH Perfect full time or vacation home just outside of Plain.

Beautiful wood trim, beamed ceilings, 12 yrs old, 2+ bedrooms, 2 baths, large bonus room. 1.33 acre, Detached garage. Big deck. Easy access. MLS# 697897 Jerry Paine 860-7696

1124 HIGHLAND DRIVE - WENATCHEE PRICE REDUCED! Charming home with fenced yard, room for a garden and single car garage with workshop. Two plus bedrooms could be used as three. Family room and separate laundry. Hidden stairwell to basement area that’s great for storage. $149,900. Please call WAYNE LORANGER @ 669-3202 For more information.

473 NE. 5TH ST. – EAST WENATCHEE This house is a must see. Large Tri-Level home with an in-ground Larson Pool and a huge shop! All this sitting on a beautifully landscaped .60 of an acre lot. Plenty of room with a large family room and 2nd kitchen that is also plumbed and wired for a hot tub. $294,900. Please Contact GARY MULLEN @ 679-4132 For more information. MLS# 697460

1235 GRANT RD – EAST WENATCHEE EXCEPTIONAL INVESTMENT OPPORTUNITY 3 bedroom,1 bath home with land that has been verbally approved for three additional lots. Rent or live in the home while you develop the remaining land. Nice cozy living room with fireplace. $189,000. Please Contact JEFF BENSON @ 6306859 For more information. MLS# 696528

1740 CENTRAL AVE – WENATCHEE Large 1880 sq. ft CONDO with 3 bedrooms, 2 full baths plus office. UPGRADES everywhere! 3 Car garage......if you are looking for bright and sunny? call me today! $267,950. JUNE STANAWAY. PREMIER ONE PROPERTIES 699-1321.

www.premierone.biz 925 Fifth St., Wenatchee • 662-3491

$185,500........ EAST WENATCHEE

LOOK FOR YOUR AUGUST

Super Clean Rambler! 1,706 sq ft, 3 bedrooms, 2 baths, living room, and family room. Good sized kitchen, nice cabinets, and appliances. Quiet neighborhood, beautiful mountain views, and covered patio. MLS# 698984 Jacque Hurst 860-3963

Homefinder’s FREE Guide

$160,000............OLALLA CANYON Cute 3 Bedroom 2 Bath Country Home on 2 Acres!

Gorgeous mountain views and abundant privacy. Newer carpet and updated vinyl windows throughout. Horse Property Potential! MLS# 699000 Jacque Hurst 860-3963

$129,900...................WENATCHEE Adorable 2+ bedroom home with basement near Washington Park. Wood floors, vinyl windows, updated electrical. Alley access for extra parking. New roof to be installed prior to closing. MLS# 698644 Cindy Seyster 670-6466

Windermere Real Estate / NCW

662-7184 • 1-800-841-0055 www.windermerewenatchee.com

See Our Open Houses at www.century21exclusively.com WENATCHEE $435,000 Prime location. 5 bedroom, 3700 sq ft on two levels. Manicured 1/2 acre lot, with beautiful views. Private community park with pool, tennis courts, and play ground.

Lee Hildebrand 509-669-7601

$349,900 Large, affordable Broadview home. Living room

2115 Sage Grouse Rd., Wenatchee IMPRESSIVE Retirement/Downsizing Home!

NO stairs anywhere...Featuring Granite, Hardwood, Stainless , Completed Office, Tandem Shop, Greenhouse, Covered Patio, Landscaped Fenced Back Yard.

Hamilton $340,000 Mae 509-888-3950

open to the kitchen, formal dining room, family room. Covered back patio, 3 car garage, mature landscaping and irrigation water. Broadview Association pool membership.

DeAnn Compton 509-670-9966

EAST WENATCHEE $199,000 Pristine 3 bedroom 2 bath home. Spacious rooms, vaulted ceilings, skylights, designer kitchen, tile and copper island. Manicured back yard complete with Koi pond, hot tub, new above-ground pool.

Karen Boghokian 509-860-9052

$220,000 Lovely 3 bedroom/2 bath rambler with an ofice.

Master bath, walk-in closet, covered patio, low maintenance landscaping with irrigation. Quiet neighborhood.

RJ Wallis 509-670-2007

$335,000 3300 sq ft remodeled home with in-ground swimming pool, ofice, large shop, concrete patio, large wood deck, granite kitchen, wine storage, huge master with private bath and stairway.

Doug Andrews 509-860-8840

$419,000 Breathtaking views! Perfect for entertaining! Over 3200 sq ft, private covered deck and downstairs patio with fantastic views of the Columbia. Granite, stainless appliances, walk-in pantry, main loor master bedroom with slider to deck.

Annette Johnson 509-630-6107

Premier One Properties Premier One Mae Hamilton Spotlight

ATTENTION HOMESELLERS!

Is your home being listed and promoted by a local Realtor in the region’s most widely distributed Real Estate Magazine?

The HomeFinder’s Guide distributes 10,000 copies all over NCW AND an additional 10,000 copies in the Wenatchee World.

Sell your home faster using a Realtor in the region’s premier Real Estate Magazine:

Each office independently owned. Equal housing opportunity.

Office: 509-662-2100 135 N. Mission Wenatchee

North Central Washington

A monthly advertising supplement to

See Our Open Houses at www.century21exclusively.com

AUGUST 2012

Find Property Locator on page 4

Extraordinary Broadview Home

HomeFinder’s Guide.

CHELAN AVENUE, CENTRAL BUSINESS DISTRICT

120X150 COMMERCIAL LOT

Ofice or duplex. Currently has one space rented.

Off street parking. 1800 sq ft.

Grant road frontage, City Limits

$195,000 JUST LISTED

4 ACRES, SUNSET HWY., EAST WENATCHEE

Perfect for Gatherings & Entertaining! $

Zoned Commercial / Multi family Water, Sewer and Irrigation available

469,900

$650,000

Francine Paulsen

R E A L E S TAT E

Real Estate Specialist

860-2769 francinep@johnlscott.com

John L. Scott/Wenatchee • 1201 N. Wenatchee Ave. Wenatchee, WA 98801 • Office Independently Owned And Operated

Working Hard For Your #1 Investment

(509) 662-4772

TODAY IN

Downtown Wenatchee, high trafic count, two signs Zoned for Business District

$1,875,000

7 + INDUSTRIAL ACRES S. Wenatchee, level All services

$1,000,000 PENDING Additional rental and off street parking Lots of possible uses

$234,900

157 ACRE ORGANIC APPLES

155 ACRE DOUGLAS CO. ALFALA FARM & PASTURE

SOLD

1400 sq. ft. homestead, irrigated

homes.wenatcheeworld.com

PENDING

2900 SQ. FT. OFFICE BUILDING

OVER ONE ACRE WITH 9900 SQ. FT. SINGLE SPAN BUILDING

$350,000

$360,000

For more information or to list your properties please contact Perrin Cornell, Broker, ABR • 509-669-0354 Howard Syria, Designated Broker • 509-670-8881 Karen Boghokian, Broker • 509-860-9052

All equipment, newer varieties Well established, excellent location

SOLD

$2,200,000

Each office independently owned.

Equal housing opportunity.