document

6
T he economic outlook for real estate is never just black and white – you’ve got to look at the encour- aging signs and various forms of data if you want a realistic picture. Despite these challenging economic times, existing home sales will be rising. Why? e answer, in a word: afford- ability. Currently, the two most important factors driving home sales are: AFFORDABILITY and INTEREST RATES! With home prices stabilizing in many parts of the country and mortgage rates still near historic lows, affordability conditions have markedly improved. Even with the current unemployment rate, nearly 92 percent of households will have jobs. ese 92 percent of the working households (rather than 97 percent during the BOOM economic times) respond to home-buying incen- tives. I say this because we have history as a lesson. Back in the prior recession (2001-2003) the economy shed nearly 2 million net jobs. Even during those years, existing-home sales rose from 5.2 million to 6.2 million just as jobs were being cut. New home sales, likewise rose from 900,000 to 1.1 mil- lion. Mortgage rates were falling. Housing affordability increased. While those 2 million job cuts were painful, the economy still had 130 million job holders, and given the right incentives, they purchased homes. Measures such as the recently expired first-time home- buyer tax credit and a larger number of mortgage loans that qualify for purchase by Fannie Mae and Freddie Mac and through the FHA program have further brought home buyers to the marketplace. Purchase applications using FHA-insured mortgages – the hottest game in town – were up by 15.2 percent! Part of the reason for the ap- plication jump: Mortgage rates continue to hover just half a point over 40-year lows. Last week saw the year finish on a high note for the housing market with Pending Home Sales for November coming in UP 3.5 percent, aſter this figure was expected to be down slightly for the month. is reading measures homes under con- tract, and therefore should point to an increase in closings in the January-February time frame. In addition, Standard & Poor’s/Case-Shiller Home Price Index for December cited 4 of the major 20 national cities showed annual price GAINS and the index is still above its spring 2009 low. In addition, the Case-Shiller 10-City Index showed a year-over-year price gain. It’s important to remember that real estate is local! FORBES Magazine recently stated employers are more optimistic about hiring in the first quarter of 2011 than at any time in more than two years. Overall nine percent more of them expect to be adding staff than expect to be reducing it. Some cities have an exceptionally positive outlook. So how does our local area rank? “Information technology and gaming, international trade, life services, health care and professional services are the areas anticipating the most growth in the greater Seattle area,” says George Allen, senior vice president of govern- Debbie Walter, Realtor ® “Your Real Estate Consultant For Life!” CDPE, CRS, GRI, ABR, SRES, Green Certified, Realtor, Platinum Club Producer & Hall of Fame Achiever Cell: 206.930.8699 RE/MAX NW Realtors Servicing the Greater Puget Sound Area See All Available Listings at www.DebbieWalter.com “Because You and Your Home Deserve the Very BEST” • Staging • Professional Photos • Virtual Tours • Video Commercial • Beautifully Colored Flyers • Your Home Showcased on YouTube, Google, MSN & 62 other websites! 449574 Lovely *Open Design* Home Perfectly Situated On A Level/Pri/Fully- Fncd/11,200 Sf Lot. Hard- wood Floors, New Int/ Ext Paint + A New 30-Yr Comp Roof. Gas Appls & 1-Yr Home Warranty. – SOLD $291K – FINN HILL SOLD Contemporary High- lands Recent Remodel Impressive/Open Design With State-Of-Art Gourmet Kitchen, Gran- ite Slab/SS Appliances. Lovely Tree-Lined/Cul- De-Sac & Quiet/Private/ Fenced Yard. Expansive Entertainment Deck. Prime Locale With Easy 405/520 Ac- cess. Home Warranty Included. MLS #129231 $519,900 HIGHLANDS PENDING Stunning Houghton 4-Bed/2.75-Bath/ 2570sq Ft Home W/Lake View. Gourmet Kitchen With SS Appl, Granite Slab & Hardwoods. Lots Of Nat’l Light. Quiet & Tree- Lined Private Drive. – SOLD $575K – HOUGHTON Meticulous & one-of-a kind 2-story on private/ quiet/tree-lined street. Assessed Value=$378K! Completely turn-key & Pottery-Barn cute w/rare 2-car gar! New ext/int paint, new carpet, fncd yrd w/large deck, all applc stay + AC. Vaulted ceilings, tennis & basketball courts/parks/ trails/min to DT Kirkland/waterfront/I-405. MLS #129536! $234,900 FORBES CREEK GREAT VALUE SOLD Spectacular $85K Remodel And Impeccable Open Design W/Brand New Paint/Hardwoods/ Carpet/State-Of- e-Art Gourmet Kitchen/ SS Appl & Granite Counters. All New Lighting Makes is Home Incredibly Light/Bright. 2-Car Garage + Prime Cul-De-Sac Location & Min To Lake Washington Schools & I-405! MLS #148382 $379,900 NEW LISTING NORTH JUANITA PENDING Clive Egdes 206-251-1680 Windermere Real Estate/Central, Inc. [email protected] www.Kirklandhomelistings.com Specializing in Kirkland Properties. “Exceptional Service, Extraordinary Results” 446673 KIRKLAND REAL ESTATE Your guide to Real Estate and home buying & selling JANUARY 2011 “Debbie Walter Realtor - RE/MAX NW Get Ready – Spring is Around the Corner [ more SPRING page 10 ]

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The economic outlook for real estate is never just black and white – you’ve got to look at the encour-aging signs and various forms of data if you want a

realistic picture.Despite these challenging economic times, existing home

sales will be rising. Why? � e answer, in a word: a� ord-ability. Currently, the two most important factors driving home sales are: AFFORDABILITY and INTEREST RATES!

With home prices stabilizing in many parts of the country and mortgage rates still near historic lows, a� ordability conditions have markedly improved.

Even with the current unemployment rate, nearly 92 percent of households will have jobs.

� ese 92 percent of the working households (rather than 97 percent during the BOOM economic times) respond to home-buying incen-tives. I say this because we have history as a lesson.

Back in the prior recession (2001-2003) the economy shed nearly 2 million net jobs. Even during those years, existing-home sales rose from 5.2 million to 6.2 million just as jobs were being cut.

New home sales, likewise rose from 900,000 to 1.1 mil-lion. Mortgage rates were falling. Housing a� ordability increased. While those 2 million job cuts were painful, the

economy still had 130 million job holders, and given the right incentives, they purchased homes.

Measures such as the recently expired � rst-time home-buyer tax credit and a larger number of mortgage loans that qualify for purchase by Fannie Mae and Freddie Mac and through the FHA program have further brought home

buyers to the marketplace.Purchase applications using FHA-insured

mortgages – the hottest game in town – were up by 15.2 percent! Part of the reason for the ap-plication jump: Mortgage rates continue to hover just half a point over 40-year lows.

Last week saw the year � nish on a high note for the housing market with Pending Home Sales for November coming in UP 3.5 percent, a� er this � gure was expected to be down slightly for the month. � is reading measures homes under con-tract, and therefore should point to an increase in closings in the January-February time frame.

In addition, Standard & Poor’s/Case-Shiller Home Price Index for December cited 4 of the major 20 national cities showed annual price GAINS and the index is still above its spring 2009 low. In addition, the Case-Shiller 10-City Index

showed a year-over-year price gain.It’s important to remember that real estate is local!

FORBES Magazine recently stated employers are more optimistic about hiring in the � rst quarter of 2011 than at

any time in more than two years.Overall nine percent more of them expect to be adding

sta� than expect to be reducing it. Some cities have an exceptionally positive outlook. So how does our local area rank?

“Information technology and gaming, international trade, life services, health care and professional services are the areas anticipating the most growth in the greater Seattle area,” says George Allen, senior vice president of govern-

Debbie Walter, Realtor®

“Your Real Estate Consultant For Life!”CDPE, CRS, GRI, ABR, SRES, Green Certifi ed,Realtor, Platinum Club Producer & Hall of Fame Achiever

Cell: 206.930.8699RE/MAX NW RealtorsServicing the Greater Puget Sound Area

See All Available Listings at www.DebbieWalter.com

“Because You and Your HomeDeserve the Very BEST”

• Staging • Professional Photos • Virtual Tours • Video Commercial

• Beautifully Colored Flyers • Your Home Showcased on YouTube,

Google, MSN & 62 other websites!

449574

Lovely *Open Design* Home Perfectly Situated On A Level/Pri/Fully-Fncd/11,200 Sf Lot. Hard-wood Floors, New Int/Ext Paint + A New 30-Yr Comp Roof. Gas Appls & 1-Yr Home Warranty.

– SOLD $291K –

FINN HILL

SOLD

Contemporary High- lands Recent Remodel Impressive/Open Design With State-Of-Art Gourmet Kitchen, Gran-ite Slab/SS Appliances. Lovely Tree-Lined/Cul-De-Sac & Quiet/Private/Fenced Yard. Expansive

Entertainment Deck. Prime Locale With Easy 405/520 Ac-cess. Home Warranty Included. MLS #129231

$519,900

HIGHLANDS

PENDING

Stunning Houghton 4-Bed/2.75-Bath/ 2570sq Ft Home W/Lake View. Gourmet Kitchen With SS Appl, Granite Slab & Hardwoods. Lots Of Nat’l Light. Quiet & Tree-Lined Private Drive.

– SOLD $575K –

HOUGHTON

Meticulous & one-of-a kind 2-story on private/quiet/tree-lined street. Assessed Value=$378K! Completely turn-key & Pottery-Barn cute w/rare 2-car gar! New ext/int paint, new carpet, fncd yrd w/large deck, all applc

stay + AC. Vaulted ceilings, tennis & basketball courts/parks/trails/min to DT Kirkland/waterfront/I-405. MLS #129536!

$234,900

FORBES CREEK

GREAT VALUE

SOLD

Spectacular $85K Remodel And Impeccable Open Design W/Brand New Paint/Hardwoods/ Carpet/State-Of- Th e-Art Gourmet Kitchen/SS Appl & Granite Counters. All New Lighting Makes Th is Home Incredibly Light/Bright. 2-Car Garage + Prime Cul-De-Sac Location & Min To Lake Washington Schools & I-405! MLS #148382 $379,900

NEW LISTING NORTH JUANITA

“Because You and Your HomeDeserve the Very BEST”

PENDING

Clive Egdes206-251-1680

Windermere Real Estate/Central, Inc.

[email protected]

Specializing inKirkland Properties.

“Exceptional Service,Extraordinary Results”

446673

KIRKLANDKIRKLAND

REAL ESTATEYour guide to Real Estate and home buying & selling

JANUARY 2011

“Debbie WalterRealtor - RE/MAX NW

Get Ready – Spring is Around the Corner

[ more SPRING page 10 ]

January 7, 2011[10] www.kirklandreporter.com Real Estate449571

SarahReed

ABR, CNE, CRS, SRES,GRI, Platinum Producer

206-226-0226www.SarahReed.com

TheDifference

is in the Details

Handyman Special in Kirkland!A cosmetic � xer with good bones on nice quiet culdesac. Cool contemporary with vaulted ceilings has 3 bedrooms with possibility for 4th, 2.50 baths. Furnace is 5 years new. Fully fenced backyard and huge 2 car garage with shop space! Totally liveable, but needs all new � ooring surfaces and your personal touches to make it shine. Priced to go quick at $248,850

Downtown Kirkland-1 block from WaterfrontSpacious & quiet 2 bedroom + Den, 2 Bath end unit with 2 private decks at the height of Downtown convenience! Sunny & Bright, looking out to gorgeous green space. Wheelchair accessible & ELEVATOR TO YOUR DOOR. 2 side by side parking stalls in secured garage + large private storage. Well run building, w/onsite manager. Pet friendly & nice Workout Facility. The perfect in-city retreat! $448,000

Sound & Mountain Views in Edmonds!Beautiful 4 bed, 3.50bath home with gorgeousupdates & impressiveSound, Mountain, and Island views. Hardwoods, granite counters, Travertine entry, designer paint! MIL w/2nd kitchen, Bonus-Home Theatre, separate entry & garage. Stunning curb appeal & landscape set off the Young, Rutledge architectural details. Enormous view decks for entertaining or viewing your waterfall and koi pond-beautiful lawn & enchanting landscape. 3 car garage. $799,975

Eastside Brokers

• Kirkland Resident for over 22 years.• 10+ years of Dedicated, Full Time Real Estate Broker Service! • Very Patient with 1st Time Buyers. VA & FHA loans.• Buyers, Sellers, Relocation, Investors.• Foreclosures, REO, Short Sales, 1031 Exchanges.• Certifi ed Negotiation expert How May I Help YOU?

KIRKLANDKIRKLAND

REAL ESTATEYour guide to Real Estate and home buying & selling

ment relations at the Greater Seattle Chamber of Commerce.According to FORBES, the Seattle-Tacoma-Bellevue area is

the second-most optimistic metropolitan area in the country, with a 15 percent net employment outlook!

� e Greater Seattle Chamber of Commerce issued its own jobs sector survey; 1,200 employers were polled, and the results were upbeat. Fi� y-six percent of King County employers an-ticipated that business would be better in 2011, and 41 percent expected to hire more.

If you’ve been waiting to get closer to warmer weather before beginning the search to buy your � rst home, you may want to start now with a game plan. � e traditionally busy spring real estate season is just around the corner, meaning competition looms, even in a market like we have today. � ere are things you can do as a potential homebuyer to get a head start.

So with that in mind, the competition to buy may be tougher than the average buyer thinks. It’s already gaining momentum in some neighborhoods.

� ere are some things you can do to improve your chances of landing in a home, including:

• Get a copy of your credit report. Potential lenders will view your credit history - how much debt you’ve accrued, how many accounts you have open, whether your payments are made on time, etc. - to determine whether they’ll give you a loan. Make sure they’re accurate and clear up any problems before you ap-ply for a loan or make an o� er on a house.

• Determine how much you can aff ord. Look at how much you can a� ord given your other bills, expenses, and long and short-term savings goals, including retirement, college for the kids, vacations, etc.

• Figure out how much you have for a down payment. NAR says � rst-time buyers typically make a down payment of 5-10 pecent on a home purchase, and 24 percent of down pay-ment funds were gi� s from relatives or friends. If that’s not an

option, there are many FHA loan programs that accept 3.5–5 oercent down payments.

• Research on the Internet. Look at the Multiple Listing Service to � nd houses you like in neighborhoods you’re eyeing. � is will also give you an idea of how much sellers are asking for listed homes.

• Start interviewing full-time, trusted and professional Realtors so you’ll have a skilled one when the time comes to start looking. Get referrals and select someone who knows your market and the neighborhoods you prefer. A Real Estate Professional will consult, negotiate, and oversee the hundreds of transactional details. You will want a Realtor that will be working in YOUR best interests.

• Pin down the basics, specifi cally the neighborhoods you like that will accommodate your family’s needs, including commute to work, schools, recreation, shopping, and, most importantly, are in a price range you can a� ord.

• Have an open mind. It’s easy to start looking at houses and get discouraged because you don’t see anything that matches your vision of the perfect house. Be OPEN to a home’s poten-tial. Remember carpet and � ooring can be replaced, walls can be painted, and a dreadful kitchen can be updated.

In conclusion, with national experts already predicting sales to rise because of a� ordability, continued low interest rates, pent-up demand and a signi� cant national increase in eco-nomic security (compared to the last few years) – this IS good news for potential home buyers and great news for the stability of our local and national economy.

For further information or suggestions on future top-ics, please contact Debbie Walter @ www.DebbieWalter.com or (206) 930-8699. Debbie is a REALTOR® with RE/MAX NW Realtors in Kirkland. Debbie is a member of the National Association of Realtors (a trade organization that promotes real estate information, education and professional standards).

[ SPRING from page 9] Owning A Home Can Pay Dividends(NAPSI)-� ere are many good reasons to become a

homeowner. In addition to the social bene� ts, the feel-ing of autonomy and sense of community investment, there are the tax bene� ts. One major tax bene� t is the mortgage interest deduction (MID). Th e MID has been part of the federal tax code since 1913 and helps families o� set the cost of homeownership.

� e ability to deduct the interest paid on a mortgage can translate into signi� cant savings come tax time. For example, a family who bought a home this year with a $200,000, 30-year, � xed-rate mortgage, assuming an interest rate of 4.5 percent, could save nearly $3,500 in federal taxes when they � le next year.

“In today’s market, eight out of 10 home buyers must borrow money to buy a home,” said National Associa-tion of Realtors® chief economist, Lawrence Yun. “For aspiring homeowners who don’t have hundreds of thou-sands of dollars in savings to buy a home outright, tax bene� ts like the mortgage interest deduction help them begin building their future through homeownership.”

Of the taxpayers who itemize deductions, 80 percent utilize this bene� t. � is is true for people of all income levels. According to the most recent IRS tax return data available, 65 percent of the families who claim this deduction earn less than $100,000 per year.

“People who benefi t most from the MID are fi rst-time home buyers and younger homeowners,” said Yun. “� ese families can use the money they save to build their emergency fund, apply it toward their children’s future education or help them improve the quality of their lives right now. � at’s just one of the ways owning a home can pay dividends.”

For more information about the deduction and other tax bene� ts of owning a home, visit www.houselogic.com.

[11]January 7, 2011www.kirklandreporter.com

put our knowledgeON YOUR SIDE

434715

8525 120th Avenue NE #100, Kirkland, WA 98033Just South of Costco

425-602-4150CBBain.com/kirkland

Refi ned Living $899,000This stunning residence displays the � nishing touches you can expect from a house of this stature. 4 bedrooms, including 2 master suites (1 on main � oor), a bonus room, a den: possibilities are endless. Full Viking gourmet kitchen opens on a spacious covered patio and very private backyard. Entertainment heaven! #122499

[email protected]

Forbes Creek - Kirkland $719,000This newly completed Chaffey Home is great for entertaining! Main � oor den and powder room. Master suite with large soaking tub plus 3 additional bedrooms. Bonus/media room and upstairs laundry completes this home. 3 car garage, fully landscaped, sprinkler system and much more. 10619 106th Pl NE, Kirkland

[email protected]

[email protected]

West Of Market $675,000One block to Waterfront! Experience Urban living in this Fabulous, newly remodeled home with attention to detail. Gourmet kitchen with top of the line stainless steel appliances, granite counter tops. Sun kissed daylight basement is bright and open!

Location Location Location $269,900Checkout this 1360sf 3bdrm 2bath Estate Sale in a great location with easy access to 405 and downtown Kirkland. Fully fenced, nice private backyard on a 7566sf sunny corner lot. Call for more details. #133381

Lake Of The Woods $429,900Undeniable value in this Lake of the Woods craftsman-style 2-story. Roomy with 4BR, 2.5BA, Tremendous � oor plan. Gourmet kitchen an eating space which opens to a huge family room with � replace. 3/4 acre mature landscaped yard provides room to garden. #134295

Tony [email protected]

[email protected]

East Of Market Craftsman $1,350,000High end � nishes abound within this spacious � oorplan that provides the perfect blend of luxury and modern comforts all within blocks of downtown Kirkland. Elegant master suite complete with � replace, balcony, walk in closet, and sumptuous spa bath. Spacious ADU above garage with full kitchen bath and balcony.

SOLD

Glenna [email protected]

Spectacular Monticello $655,000Move in ready Murray Franklin in sought after Monticello w/cul-de-sac location and greenbelt. Main � oor hardwoods throughout and gourmet chef’s kitchen. Perfect � oor plan for today’s lifestyle. Prof landscape with ext’d patio. Convenient Redmond location. Also available for lease $2995/month. MLS#161105.

Janet [email protected]

Bellevue $435,000Spacious 2-story nestled on 1+ acre of wooded property right in Eastgate! 4 upstairs bedrooms including Master with cozy gas marble � replace. Main � oor includes a Cook’s kitchen with 5-burner gas cooktop and convection oven and eating nook. Family room overlooks the large backyard for entertaining. #153453

Mark [email protected]

Real Estate

January 7, 2011[12] www.kirklandreporter.com Real Estate

KIRKLANDKIRKLAND

REAL ESTATEYour guide to Real Estate and home buying & selling

To advertise, call Mike @ 425.822.9166

449963

New Year Special*up to $3,000 Credit

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14450 N.E. 29th Place • Bellevue, WA 98007Email: [email protected] 4

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Is it your New Year’s resolution to takeadvantage of this Great Opportunity?

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Business & FinancialProfessionals

4469

84

Real Estate Sales in Kirkland, WA • November 29-December 31, 2010Residential Housing in

98033 & 9803413545 127th Ave NE $255,0008418 NE 139th St $270,00014264 112th Ave NE $278,00012625 NE 90th St $280,00012938 111th Place NE $291,0009236 NE 126th Place $316,00013322 NE 136th Place $325,00010208 114 Place NE $330,00013311 119th Ave NE $330,00010412 134th Ave NE $333,000126 15th Ave $360,00013236 111th Ct NE $380,00014112 126th Place NE $380,00011822 111th Ave NE $385,00012414 86th Place NE $390,0007728 131st Ave NE $395,0008235 NE 115th Wy $399,2007308 128th Ave NE $400,00013247 120th Ave NE $402,00011306 83rd Place NE $405,00012511 105th Place NE $419,00012706 NE 102nd Place $465,0007335 128th Ave NE $479,9501530 5th Place $505,00012931 NE 72nd St $530,0007512 130th Ave NE $534,0001219 2nd Ave $540,00011414 99th Place NE $540,0009213 NE 121st Ct $550,0009213 NE 121st Ct $550,0009514 117th Ave NE $570,00011416 99th Place NE $584,0009418 117th Ave NE $585,000

9506 117th Ave NE $595,00012612 NE 106th Place $599,00012616 NE 106th Place $627,3828514 NE 123rd Place #Lot 9 $629,8008505 NE 123rd Place #Lot 2 $630,0009423 117th Ave NE $635,00012621 NE 66th Place 40,0001839 1st St $660,000416 10th Ave W $660,0008533 NE Juanita Dr $689,500420 3rd Lane S $700,0004807 117th Place NE $710,0004833 118th Ave NE $720,0006608 NE 130th Lane $725,000505 4th St S $765,00012949 64th Ave NE $770,00012949 64th Ave NE $770,0006525 102nd Ave NE $795,00010907 110th Ave NE $803,5006053 NE 135th St $832,0006440 Lake Washington Blvd NE $845,000314 9th Ave $900,0002007 Market St $975,000722 4th St W $1,015,000132 9th Ave $1,029,00011128 79th Place NE $1,050,0001008 Waverly Wy $1,175,000516 9th Ave $1,260,0004627 Lake Washington Blvd NE $1,300,000324 5th Ave W $1,470,000235 Lake Ave W $2,000,000

Residential Housing AveragesAverage. List Price $693,545Average Sales Price $646,460 CDOM (Cumulative Days on Market) 169

Condos/Townhomes in98033 & 98034

12720 NE 120th St $91,00012424 NE 145th St $91,8509904 NE 124th St $95,00012708 NE 144th St $115,000916 3rd Ave #A 305 $200,000210 9th St #E302 $215,000375 Kirkland Ave #239 $220,000225 4th Ave #B 108 $223,00011408 105th Place NE $238,000225 4th Ave #B308 $279,0009330 NE Juanita Dr $279,900733 Lake St S #106 $285,00011520 114th Ct NE #4A $320,000615 6th St #309 $364,0008617 113th Lane NE #2 $375,000836 2nd Ave #203 $410,0006736 Lake Washington Blvd NE $417,0006508 108th Ave NE $426,000108 2nd Ave S #504 $445,000602 Fifth St #1004 $490,000302 5th Ave #201 $650,000420 3rd Lane S $700,0006440 Lake Washington Blvd NE $845,00010224 NE 52nd St $860,000

Condos/Townhomes AveragesAverage. List Price $374,517Average Sales Price $359,781CDOM (Cumulative Days on Market) 194

[13]January 7, 2011www.kirklandreporter.com

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Kirkland │ Tacoma │ Vancouver │ Salmon Creek │ Battle Ground │ Kalama │ Lake Oswego

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Real Estate

BUSINESS AND FINANCE

Insider trading can be a tell-tale sign of what is going on within a

company.Every October,

legends are cre-ated under the bright lights and intense pressures of the baseball diamond. What allows some hitters to thrive under pressure when others crumble? There are many very, very good hitters, but what separates the best from the very good?

The fundamentals are a given: good hand-eye coordination, practice in the batting cage, and studying your opponent. All hitters do or possess these things, and some just have a natural gift when it comes to physi-ology. But, some hitters take it a step further.

Some are such students

of the game that they can predict with reasonable accuracy what pitch is coming next based on

how the pitcher is gripping the ball, what the point of release is, and any other number of tiny man-nerisms. They recognize these “tells” and, in doing so, are able

to increase their odds of success dramatically.

These “tells” can be viewed as a parallel to an important step in investing - monitoring legal insider trading. Monitoring doesn’t do it justice though – you can monitor all day long, but if you don’t know what to look for, you will remain lost both at the plate and in the market.

So, how can investors not only observe but learn to spot the tells?

First, you have to under-stand that the Securities and Exchange Commis-sion requires all insiders to disclose their stock transactions. Tracking insiders and being able to weigh the impact of their past movements has served as a leading indicator of the market. This information is pub-licly available, but you must have a system that differentiates between the routine transactions and the tells.

Corporate insid-ers buy and sell stock for a variety of reasons. The trading oppor-tunity lies in being able to determine which actions have and will lead to profitable trades. An insider selling stock through options grants that have a significant percentage not vested, can be a sign that they

either do not believe in the company, the stock is overpriced, or the executive doesn’t plan on staying. If someone with more information than the market and the ability to earn a significant sum of money through stock or options is not willing to put their capital at risk in the stock, I certainly would be hesitant to con-sider that stock as part of my allocation.

Investors should do their homework,

have a plan when they step into the batter’s box, and know how to give

themselves every legal advantage.

The insider tell that’s most important to me is a large buy by a cluster of a company’s execu-tives. These cluster buys, particularly at the C-level (CEO, CFO, etc.), historically have been

highly predictive of a rise in a company’s stock price. When an executive at a company makes a large dollar purchase or

dramatically increases his holdings on a percentage basis, they are really tell-ing the market that they see value in their own company and are willing to show it by investing their own disposable as-sets in the company for whom they work.

On the other hand, an insider might be selling for a variety of reasons. They may be paying for a large purchase, such as a house or college tuition. They may be prudently diversifying their financial portfolio. But, at the end of the day, a corporate insider buys his own company’s stock because he believes it will be trading higher at some point. If he and his fellow executives are selling, I’d be asking questions.

John Klevens is the Principal Financial Advisor for Klevens Capital Management in Bellevue. Contact John at 425-453-6353.

Using insider trading to your advantageYO

UR M

ONEY

John

Kle

vens

CHANGING INVESTMENT

January 7, 2011[14] www.kirklandreporter.com Real Estate

Windermere Real Estate East, Inc. Kirkland/Yarrow Bay O� ce

3933 Lake Washington Blvd NE, Suite 100

425-822-5100

Natasha Bosch425-766-8019

www.kirklandstyle.com

Heidi Bright425-820-5343

www.bigdogrealty.com

G.G. Getz206-915-7777

www.gggetz.com

Kathryne Green425-766-1315

[email protected]

Craig Gaudry425-576-5555

[email protected]

Chelle Nelson206-953-5927

www.chellenelson.com

Kathy Magner425-803-9457

[email protected]

Carlene Sandstrom206-910-3662

www.carlenesandstrom.com

434715

WEST OF MARKET $3,400,000Exquisitely remodeled & immaculately maintained rambler on one of the best lots positioned to maximize lake, city & mountain views! Timelessly elegant, an entertainer’s dream home. Perfect indoor-outdoor � ow in this private retreat. www.yourprivateresort.net

KATHY MAGNER 425-803-9457

HOUGHTON $1,398,000Custom European inspired villa w/panoramic views of Lk Wash, Olympic Mts & Seattle. Extraordinary design & detail-ing throughout. Gourmet Chef’s Kitchen. Luxurious Master Suite. View photos at www.Gaudry.com MLS#22738

CRAIG GAUDRY 425-576-5555

KIRKLAND $399,000Brazza @ it’s brilliant best! $150K complete, thoughtful remodel. Handcrafted built-ins. Community amenities rarely found: Guest suites, onsite mgr, party rm, hobby rm, exercise rm. In center of Kirkland’s arty fun! Pics & Tours @ [email protected]

GG GETZ 206-915-7777

KIRKLAND - YARROW HILL $765,000Soothing Lake Washington, Marina, Olympic Mountain, + Sunset. Very private home tucked into its own very quiet and private corner of this secure & gated community, perched above Carillon Point Marina and Resort. www.BigDogRealty.com

HEIDI BRIGHT 425-820-5343

KIRKLAND $699,900Main � oor master nestled ion secluded lot backed by green. Lower level domain for kids or guests. Granite Island kitchen, Rooms for all: Great room, fam rm, rec rm, o� ce, music rm, 3 car garage! 404 20th Ave. Photo tours @ www.gggetz.com

GG GETZ 206-915-7777

HOUGHTON $649,500NEW ON THE MARKET...PERFECT HOUGHTON LOCATION! 3200 sq ft,4bd/3ba perfectly remodeled top to bottom! MIL/guest suite w/sep entry. This home is fabulous and simply priced to SELL! WWW.CarleneSandstrom.com

CARLENE SANDSTROM 206-910-3662

KIRKLAND $294,900Manhattan-style, penthouse loft magically lands in Kirkland. Light � lled great rm has soaring vaulted ceilings punctuated by clerestory windows. Cutting edge use of materials & award winning architec-ture. 521 7th Ave #405. Photo tours @ www.gggetz.com

GG GETZ 206-915-7777

HOLMES POINT $199,000Wonderful shy acre lot w/level areas & great lake, city, mtn views. Peaceful setting close to Denny Park and boat launch. Water & Sewer recently brought into street. TOPO completed with build-able main structure as well as ADU/Garage

KATHRYNE GREEN 425-766-1315

EAST OF MARKET $650,000Unique, charming home w/ever changing City & Mtn views! 5 bdrms,3 kitchens, 2.75 bths & detached MIL. Huge 910 sq ft deck o� main level w/city & Mt Rainier views. Unique property w/2 separate living spaces + studio. 2 car gar o� alley. Great location on 9th Ave!

KATHRYNE GREEN 425-766-1315

WEST OF MARKET $659,000A happy perch - 3 bdrm w/open � r plan, attached gar, and beautiful lake, mtn, and sunset views! Close to Waverly Beach & DT Kirkland. A magical property on a coveted site. Move in and enjoy or plan your custom home on this amazing piece of land. www.kirklandstyle.com

NATASHA BOSCH 425-766-8019

SOLD