| HeraldNet - Snohomish County's online news source |
 TUESDAY, FEBRUARY 9, 2010 4:16 pm |
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Business 
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Home sellers get creative with incentives MOUNTLAKE TERRACE -- Perfetto Espresso wants to sell coffee, tea -- and a house.A display below the espresso stand's menu features a two-bedroom, one-bathroom house. It's up for sale for $279,000 in Shoreline. The house is minutes from the coffee shop in Mountlake Terrace near I-5. The deal comes with an incentive. "Free Coffee for 1 Year! Up to $10 per day for anyone who finds a buyer for our house," part of the display reads. Troy Malchow, owner of the coffee shop, created the display last week to sell the house on his own. Malchow, 38, wants to entice potential buyers with caffeine in the sagging real estate market. "We don't have enough equity to have a Realtor involved. That's why we are trying to be creative," he said. Malchow said he and his wife, Amy, bought the 700-square-foot house in 2002 for about $169,000. The couple with three children moved into a bigger, four-bedroom house in Shoreline in 2006. They started renting out the first house. The first house's value climbed to about $315,000 at its peak in 2006, and it has been losing value since the housing bubble burst, Malchow said. The problem is that the Malchows get about $1,200 per month from renters while their mortgage costs them about $2,000 per month. They pay the difference out of their pocket. "It's easier to manage it when business is good, but business here has slowed down," Malchow said. Even without free coffee, it could be challenging to find a buyer these days. Home sales tend to slow in the winter. The recession continues to cripple consumer confidence. In December, home sales dropped by almost 36 percent from a year ago in Snohomish County, according to the Northwest Multiple Listing Service. The medium price for homes and condominiums was $307,000. That was down 9.6 percent from $339,675 a year ago. King County also saw a similar trend last month. The house the Malchows want to sell is in King County. Home sales there declined by nearly 37 percent. The medium price for homes and condominiums was $370,700. That's down 4.8 percent from $389,500 a year ago. Free coffee for a year could generate interest for the Malchows' house, but it's unlikely to be a deal maker, said Bob Maple, broker and owner of John L. Scott Real Estate Office in Everett. Maple said he doesn't know others who are trying to sell their home with unique incentives. "What really drives the sale is the price. It's all about price," he said. While home sales remain slow, homeowners seem to be taking advantage of low interest rates to refinance their loans, said Maple, who has 25 years of experience in real estate. Malchow said that his first house, once an investment tool, is putting pressure on his household budget. His business is down 15 percent to 20 percent from a year ago, as his customers cut back on spending. That has made his family tighten its belt as well. It's a Catch-22, Malchow said. An economic recovery hinges upon consumer spending. But people are afraid to spend amid the prolonged recession. Malchow used to work 35 hours a week with three part-time employees at his coffee stand. But he now works 70 hours a week with one part-time employee. His wife also pitches in at the stand, while raising three boys at home. Amy Malchow said she wants to sell the house as soon as possible. That would reduce stress on her overworked husband. "We can invest our money later, but right now it's just too much," she said. Reporter Yoshiaki Nohara: 425-339-3029 or ynohara@heraldnet.com. |
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