Agents Offer Real Estate Advice
By Nichole Betts

Alumnus Peter Enkema, '69, believes less stress means a better life. As a real estate agent with Tomlinson Black, Enkema is personally committed to keeping clients out of financial trouble by discussing their finances.

"A good real estate agent should save clients headaches and money," Enkema said. Agents must consider the clients' expectations on price, location, and age and size of home. Enkema said he's marriage counselor, decorator, fix-it guy and architect all thrown into one. He has to know a bit about everything to be an effective client agent.

The more knowledge an agent has, the safer buyers are in not going down avenues they shouldn't, Enkema said. Clients have to consider what they can afford comfortably, and they shouldn't be in financial bondage over payments.

Agent Janet Buehler, a Whitworth student from 1975–77, tries to educate homebuyers about the process to calm their nerves. "It's like shopping like you've never shopped before," she said. "During stressful times buyers and sellers are more likely to be anxious, and I would hope that by my calling them frequently and educating them about the process, they would be more confident, less fearful, and happy about the process."

Buehler says she thinks it's important for buyers to be qualified comfortably with the payment on a house, and with their entire debt-to-income ratio.

"This means that they need to have money left over for their retirement, things that come up unexpectedly, and for some fun in their lives so they will live for their values and not just for just making a payment on the house," she said. She thinks the buyer should expect to pay about 36 percent of gross income on housing.

Brandon Peterson, '04, of Coldwell Banker Northwest Group, estimates a bit higher. "Around 40 percent of a monthly income is a decent amount to spend on housing," he said. The buyer may have unforeseen costs with home ownership: the washing machine may break, the bathtub may leak, and monthly bills like garbage, electricity and heat must be accounted for in the buyer's budget.

Enkema thinks people lead happier lives when they aren't worrying about finances too much. He also believes that an agent's expertise influences a client's home-buying experience, and that people should insist on an agent who is full time, as opposed to part time, and who has five to 10 years of experience in real estate.

Interviewing agents is a good way to find one that suits each buyer personally. Clients enjoy making purchases with people they bond with, Enkema said. People work together better when they have relationships, trust each other, and get along well. Walking through scenarios with clients helps Enkema get to know them better as people and, in turn, to know what they're looking for in a home.

Another facet of real estate involves buying homes or properties for investment. Investing in Washington state is a safe bet because it's a fast-growing market, Buehler said, but there is risk because renters can ruin property.

With real estate, buyers know what's going on in the community, and the value of the investment should always be equal to, or going up from, what the buyer paid for it, Enkema said. Individuals have little, or no, control over the stock market or banks for investments. Real estate stays profitable even with the appreciation and devaluation of other investments. Renters can pay the owner's mortgage and therefore make the owner a profit if the rent is high enough, he said.

"Ultimately, the most important aspect of a good home is structural integrity," Peterson said. "A home must be in sound condition to be a decent investment. That is where you will invest the most money with the least return financially."

Making improvements on a home is one of the best ways to increase its value. "To add a bathroom in a home, you are looking at a return on investment of over 100 percent; kitchens are roughly 98 percent; bedrooms, finished basements and construction of that type are around 85 percent," Peterson said. "If you have to do a major repair on a home just to make it sound, then you are taking that money from actually improving it."

Peterson thinks buyers should never purchase a home that has water or foundation problems. Inexperienced investors should not be too aggressive, but should pick their investments carefully, do their homework, and be ready for a long-term commitment, he said.

Learning how to ask the right questions and listening to buyers' responses helps Enkema be the best advocate possible. Real estate is an asset that can, and often does, appreciate in value, Enkema said. Homeowners can take pride in owning a home and starting traditions in that home, he said.

For more information visit the following sites:
Coldwell Banker Real Estate
www.coldwellbanker.com

House Buying Tips
www.housebuyingtips.com

So You Wanna Buy a House?
www.soyouwanna.com/site/syws/house/house.html

Tomlinson Black Real Estate
www.tomlinsonblack.com

Windermere Real Estate
www.windermere.com

Janet (Hollingbery) Buehler attended college for science and dietetics, raised children, and managed farms in Yakima. She ended up in real estate. Buehler and her husband Greg, '77, moved to the Seattle area to exclusively sell real estate in the mid 1980s. They now both work for Windermere and are based in Everett, Wash.

Buehler once thought she'd ended up in an innocuous career. She wanted to help people and she questioned her choice to go into real estate in 1991 after Greg's father had passed away and the couple had no money. One night, after dealing with dirty dishes, Buehler took a walk and ended up praying the whole time.

"Show us what you want us to do with our lives," she asked God. It was okay if He wanted them to be dirt poor, but they lacked direction. Soon after, Buehler felt God leading her to sell a piece of land the YMCA owned providing them with the funds to build a daycare.

This is why she ended up in real estate, she said.