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For more information on preparing to sell your home, visit my Home Selling Guide:
Real Estate •
November 7, 2024
Selling Your Home: 5 Common Myths
Selling your home is a crash course in real estate education. My clients learn a LOT as we work together to find a buyer and sell at the right price. As you prepare to sell, it’s important to remember that that not everything you’ve heard is true. There are several common myths that can lead to costly mistakes in the selling process. Knowing the truth behind them will clarify your selling journey and help you align your expectations…
Myth 1: Home Value Calculators Are 100% Accurate
Online Automated Valuation Models (AVMs) are a great starting point for understanding how much your home could be worth. However, they are merely a first step in determining home value; to say they are 100% accurate is a myth. When it comes to pricing your home, you need to rely on a true Comparative Market Analysis (CMA), which uses vast amounts of historical and current data on real estate listings to arrive at an accurate and competitive figure.
To get an estimate of how much your home is worth, try our Home Worth Calculator here:
Myth 2: Selling FSBO Will Save You Money
Selling a home requires an intimate knowledge of the housing industry and how to solve the complex situations that arise throughout a real estate transaction. Despite this, some sellers will go it alone and attempt to sell their property without being represented by an agent.
Selling For Sale by Owner (FSBO) is a risky proposition. It requires the seller to bear added liability, fills their schedule with various marketing and promotional responsibilities, and can leave money on the table by inaccurately pricing the property, causing it to sit on the market for too long. The potential costs of selling a home on your own far outweigh the commission real estate agents earn on a home sale.
Myth 3: You Must Remodel to Sell Your Home
The question you’ll face when preparing to sell your home is whether to sell as is or remodel. The answer usually lies somewhere in between, but it depends on your situation and what kinds of home upgrades are driving buyer interest locally. When making improvements to your home, lean toward high ROI remodeling projects to get the best bang for your buck, and avoid trendy projects that can delay listing your home. If you’re considering major upscale renovations, talk to me about which projects buyers in your area are looking for.
Myth 4: Never Accept the First Offer
You’ve likely heard tell that the first buyer’s offer is nothing more than a springboard to up your asking price and to never accept it. In this case, “never” should be approached with caution. In reality, the best offer for your home is one that you and your listing agent have discussed that aligns with your goals. If a matching offer happens to be the first one that comes your way, so be it. The market can shift at any time, so you never know what may happen if you leave an offer on the table. And if the buyer backs out of the deal, you and your agent will find a path forward.
Myth 5: Home Staging Doesn’t Make a Big Difference
Staging your home is so much more than a cosmetic touch-up; it has been proven to help sell homes faster and at a higher price than non-staged homes.1 Staging ensures that your home has universal appeal, which attracts the widest possible pool of potential buyers. When buyers are able to easily imagine living in your home, they become more connected to the property. You should stage your home regardless of your local market conditions, but it can be especially helpful in competitive markets with limited inventory where even the slightest edge can make all the difference for sellers.
Now that you know some of the most common myths in the selling process, get to know its truths. Connect with me to get the process started:
1: National Association of REALTORS® – Why Home Staging Inspires the Best Prices in Any Housing Market
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
This article originally appeared on the Windermere Blog, written by: Sandy Dodge.
Real Estate •
September 12, 2024
Buying a Fixer-Upper
For some homebuyers, a fixer-upper is their idea of a dream home. However, the process of buying a fixer-upper comes with additional responsibilities compared to properties in better condition or new construction homes. Preparing for the process comes down to creating a remodeling plan, knowing what to look for when searching for listings, and understanding what financing options are available.
Planning for a Fixer-Upper
Fixer-uppers require a future-oriented mindset. Knowing the magnitude of the projects you and your household are willing to take on will help to form your budget and your expectations as time goes on. With some basic cost analysis for any given project, you’ll have to decide whether it’s worth it to buy the materials yourself and do it DIY or hire a professional. When testing the waters for professional remodeling, get specific quotes so you can compare costs between contractors. Understand that in addition to the down payment and closing fees, the costs involved in a fixer-upper purchase have the potential to go over-budget easily. Familiarize yourself with permitting in your area to understand how to navigate any legal roadblocks in the renovation process and to better assess your timeline for your home improvement projects.
Searching For a Fixer-Upper
- Location: Whether you are purchasing a fixer-upper with plans to sell it, rent it out, or live in it, consider its location before purchasing. If you’re planning on selling or renting, location is one of the most important factors in making a return on your investment. And if you’re planning to live in your fixer-upper, keep in mind that location will be a large part of your experience in the home. If you’re looking to sell eventually, talk to your agent to identify high ROI remodeling projects that will pique buyer interest in your area.
- Scope of Renovation: If you are looking for a smaller scale renovation, look for listings that require cosmetic projects like new interior and exterior paint, fresh carpeting and flooring, appliance upgrades, and basic landscaping maintenance. More expensive and involved projects include re-roofing, replacing plumbing and sewer lines, replacing HVAC systems, and full-scale room remodels.
- Inspections: Beyond a standard home inspection, which covers components of the home like its plumbing and foundation, consider specialized inspections for pests, roof certifications, and engineering reports. This will help differentiate between the property’s minor flaws and critical problems, further informing your decision when it comes time to prepare an offer.
Financing Options
You’ll be looking at different types of mortgages when buying a fixer-upper, but keep in mind that renovation loans specifically allow buyers to finance the home and the improvements to the property together. Extra consultations, inspections, and appraisals are often required in the loan process, but they help guide the work and resulting home value. Talk with your lender about which option is best for you.
- FHA 203(k): The Federal Housing Administration’s (FHA) 203(k) loans can be used for most projects in the process of fixing up a home. In comparison to conventional mortgages, they may accept lower incomes and credit scores for qualified borrowers.
- VA renovation loan: With this loan, the home improvement costs are combined into the loan amount for the home purchase. Contractors employed in any renovations must be VA-approved and appraisers involved in the appraisal process must be VA-certified.
- HomeStyle Loan – Fannie Mae: The HomeStyle Renovation Loan can be used by buyers purchasing a fixer-upper, or by homeowners refinancing their homes to cover the improvements. This loan also allows for luxury projects, such as pools and landscaping.
- CHOICERenovation Loan – Freddie Mac: This renovation mortgage is guaranteed through Freddie Mac, allowing projects that bolster a home’s ability to withstand natural disasters or repair damage caused by a past disaster.
If you’re interested in buying a fixer-upper, connect with me – I can help you understand the process and to discuss what makes the most sense for you.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
This article originally appeared on the Windermere Blog, written by: Sandy Dodge.
Real Estate •
August 20, 2024
Understanding Contingent Offers: A Seller’s Guide
With the market shifting toward balance between buyers & sellers, “contingent” is a word sellers will be seeing more of. It’s important to understand the difference between a “contingent offer” and one with “contingencies.” Contingent offers allow the buyer time to sell their current home first before they complete the purchase. On the other hand, an offer with contingencies allows the buyer to cancel the contract with a full earnest money refund if the specified conditions aren’t met—often a satisfactory home inspection or the ability to obtain financing.
This may feel a bit like buyers want to have their cake and eat it too, but every homeowner can understand the desire to protect their investment before fully diving in. In a seller’s market, there are fewer homes available, which means buyers will do whatever they can to make their offer stand out. Because sellers have the leverage in these market conditions, you’ll often see buyers waiving their contingencies. Talk to your agent for more information about the local market conditions in which you’re selling.
Should I accept a contingent offer on my house?
Each home sale is different, and each seller has a unique story. What you’re looking for in an offer may be different from what someone else in your neighborhood is looking for when selling their home. It all depends on your circumstances, your timeline, your next steps, and your local market conditions. The extra stipulations in a contingent offer require the attention of an experienced real estate agent who can interpret what they mean for you as you head into negotiations.
How often do contingent offers fall through?
Contingent offers can fall through more often than non-contingent ones, but there’s no general rule of thumb. Whether a sellers and buyer are able to agree on the terms of a deal is a case-by-case situation. Different contingencies may carry different weight among certain sellers, and local market conditions usually play a significant role. For up-to-date information about your local market, visit our Market Reports page or Trends on our blog.
Pros and Cons of Contingent Offers for Sellers
Pros of Contingent Offers (allowing the buyer to sell their current home first):
- Accepting a contingent offer means you don’t have to take your home off the market quite yet, since the conditions of the deal haven’t been met. If the buyer backs out of the deal, you can sell without having to re-list.
- In certain cases, some buyers may be willing to pay extra to have their contingent offer met even if the home has been on the market for an extended period.
Pros of Offers with Contingencies (such as inspection, title, financing, etc.):
- You’ve got an offer! In a balanced market, one offer with contingencies is still better than no offers.
- It may protect you legally if you give the buyer the opportunity to do all of their due diligence while under contract. It’s harder for a buyer to come back and say something wasn’t disclosed when they had ample time and the contractual right to due diligence.
Cons:
- Home sales with any types of contingencies are usually slower than those without. It takes time to satisfy a buyer’s contingencies and additional time to communicate that they have been met.
- There’s a higher risk that the deal could fall through since the the buyer isn’t locked into the contract until of their contingencies have been satisfied.
It’s important to have an agent you can trust for guidance when facing contingent offers. Reach out to me any time—I’m never too busy to give advice or answer questions:
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
This article originally appeared on the Windermere Blog, written by: Sandy Dodge.
Tips, Trends & Living •
June 18, 2024
9 Fun Summer DIY Projects for Your Home
Sun’s out…fun’s out! Our glorious PNW summer is coming in hot with endless opportunities to enjoy the outdoors. Here are some fun and easy project ideas to help you make the most of it!
1. Backyard Movie Theater
Outdoor movies are a great way to enjoy your yard and entertain a crowd (and keep the mess outside, too!). Looking for affordable and easy? You can find portable, outdoor, Bluetooth enabled projectors for under $100; hang up a white sheet or inexpensive screen, grab your portable Bluetooth speaker, and BOOM…it’s movie time. Ready to take the leap and create something more lasting? Here is a great how-to for a wooden frame with pull-down screen + helpful tips for your AV setup.
2. Fire Pit
Who doesn’t love a good s’mores roast? Creating an attractive fire pit may be easier and cheaper than you imagined. One beautifully simple method we love is to create a ring of stacked bricks, stones or cinder blocks on top of a level pea gravel base, then place a store-bought metal fireplace bowl in the center (here is the full how-to). It’s remarkably fast and you don’t even need mortar! You can also go for a modern square look with cinder blocks, use a reclaimed metal receptacle, or find a full kit at the hardware store. Check out this list of 31 DIY fire pit ideas from the Spruce.
3. House Number Planter
Looking to add some instant curb appeal to your home? This elegant, inexpensive design may just be the “WOW!” you’re looking for. Choose modern house numbers for an updated look and then a little wood, some pretty plants, and a couple hours of work is all it takes to make your neighbors jealous.
Photo courtesy of ana-white.com
4. Giant Backyard Jenga
We LOVE this idea for summer BBQs, and it’s so easy! All you need are some 2×3 boards, a miter saw, and sandpaper (or a power sander, if you have one). Bada bing bada boom…jumbo Jenga to entertain kids and adults alike. Here are full instructions courtesy of Her Tool Belt, including the option to go fancy with colors and a DIY carrying crate that also doubles as a stand.
5. Decorative A/C Screen
If you’re lucky enough to have central A/C, you’re also unlucky enough to have an unsightly metal unit sitting in your yard. Fortunately, you can build a simple cover for less than $100 and in less than a day. Here is an easy plan from This Old House, designed with widely spaced slats for air flow and 1 foot of clearance (do your homework on your specific A/C unit before you dive in—you may need to size up). You can paint it to match your house color if you want to go incognito, or stain it for a stylish natural wood look.
Photo courtesy of tarynwhiteaker.com
6. Vertical Garden
Taking advantage of vertical space for planting means that even the smallest of patios can host a garden. It could be as simple as attaching pots to a trellis/rail or framed chicken wire, or something more elaborate like this beautiful living wall by This Old House. Vertical gardens can also double as privacy screens for your yard, porch or patio. Veggie enthusiasts can even build this easy vertical ladder planter with its own drip watering system. For the ultimate quick fix, felt pocket planters offer instant gratification—just attach to your fence or wall, add potting soil + slow release fertilizer + drought-tolerant plants, and water every 2 days. Using freestanding shelves for your container garden is another great option, especially for tenants who need something that is easily removable.
7. Leopold Bench
We love conservationist Aldo Leopold’s simple and iconic wooden bench plan, designed to be used both forward (with a backrest) or backward (where the backrest becomes an elbow rest for using binoculars). Here is a super easy DIY plan with cutting instructions from Construct101. Even amateurs can build this in less than a day, and all it takes are three boards, 6 carriage bolts, and some screws!
Photo courtesy of etsy.com
8. Hose Storage Planter
This ingenious project will boost your curb appeal in two ways, both by being an attractive planter AND by stowing away unsightly hoses in a clever hidden storage compartment. There are a few different styles and plans out there. We like this version from DIY Candy with a hinged front that allows you to access the hose without having to lift up the heavy planter. It can be crafted from a pallet or any other reclaimed wood. The Kim Six Fix also has this version made with cedar fence boards instead.
Photo courtesy of diycandy.com
9. Rain Garden
Did the April showers leave your yard (or basement) a little soggy? Sump pump working overtime? A rain garden is a beautiful way to channel water away from your house while also helping the environment by keeping chemical runoff out of rivers and lakes. The concept is pretty simple: create a below-grade garden bed planted with deep-rooted species that help capture and drain water rapidly into the soil. If you’re serious about improving drainage, you’ll also want either a stone channel or buried PVC pipe to help guide water from your downspout into the garden. Collect some friends to help with the digging! Here are full instructions from the Family Handyman.
If you’re considering selling your home, some of these projects—like planters and vertical garden privacy screens—can help maximize your curb appeal. A rain garden might also be a beautiful solution for drainage issues that need to be resolved before your house can go on the market. Looking for more ideas or advice? Reach out to me any time…I’m never too busy to help!
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
© Copyright 2024, Windermere Real Estate/Mercer Island.
Real Estate •
June 5, 2024
Why Buyer Representation Matters So Much to Sellers
In today’s rapidly changing real estate landscape, understanding the critical role of buyer representation has never been more essential for home sellers. With the pending NAR settlement on the horizon, many sellers may not fully grasp the significant impact these changes will have on their transactions. The urgency to adapt is real, and overlooking the necessity of paying a buyer agent compensation could expose sellers to unforeseen risks.
Currently, home buyers are not allowed to roll their buyer agent compensation into their loan. This means they must bring cash to the table to pay their agent (if the seller is not offering buyer agent compensation).
Unrepresented buyers should be considered more than a minor hiccup—it can lead to a cascade of complications that jeopardize the entire deal. To safeguard your investment and ensure a smooth transaction, it’s crucial to recognize the invaluable support a buyer’s agent provides.
What value does a seller receive if the buyer has professional representation? Let us list the ways:
Lender Connections: Buyer agents connect their buyers with well-vetted (and typically local) lender partners who have proven time and again that they can close a transaction, and on time.
Documentation Management: Buyer agents ensure that buyers have delivered all necessary documentation to the lender to ensure full underwriting.
Market Analysis: Buyer agents provide comparable market analysis reports (CMAs) to help buyers understand the market value of the home and support a reasonable offer price.
Contract Guidance: Buyer agents guide their clients through the purchase and sale agreement, ensuring that they understand the terms and conditions and their ability to fulfill their commitments.
Contingency Explanation: Buyer agents explain all contingencies to buyers, ensuring they understand the risks and rewards, especially when waiving contingencies.
Earnest Money Handling: Buyer agents ensure that earnest money funds are delivered to escrow on time.
Transaction Deadlines: Buyer agents ensure that their client and their lender observe and adhere to all deadlines to keep the transaction flowing smoothly and closing on time.
Inspection Access: Buyer agents provide access to home inspectors and help their buyers understand the reports. This is critical as most MLS associations require an agent to be present whenever a door is opened. If the buyer doesn’t have representation, the listing agent must give access, exposing them to inspection findings and forcing them to disclose on behalf of the seller.
Appraisal Assistance: Buyer agents give access to appraisers and typically provide reports of comparable properties to support the purchase price, ensuring the property appraises at value.
Negotiation Support: If the appraisal report comes in less than the purchase price, the buyer agent will help negotiate and collaborate with the listing agent to ensure a mutual agreement is reached by all parties.
Transaction Coordination: Most importantly, the buyer agent helps keep their client and all parties on track to ensure closing, and crucially, on time.
The value a buyer agent brings to the transaction is indispensable. Their expertise not only facilitates a smoother process but also protects all parties involved from potential pitfalls. By ensuring the buyer has professional representation, sellers can avoid significant risks and secure a successful transaction. In the evolving real estate market, investing in buyer agent compensation is a wise decision that benefits everyone involved.
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
This article originally appeared on the Windermere blog on 5/29/24 & Inman News on 5/21/24.
Real Estate •
March 15, 2023
7 Ways to Make Life Easier When Selling Your Home
When it’s time to sell a home, we all dream of a flawlessly executed transaction where everything goes smoothly and ends with a win-win for you and the buyer. Here are seven tips to help make that happen—and avoid surprise expenses along the way…
1. Repair Your Home First
Making repairs to your home before you sell not only makes it more appealing to buyers, but it can also help you avoid the additional costs that can result from the buyer’s inspection. Disclosing any repairs that still need to be made will help you move smoothly to closing and avoid problems that could otherwise kill the deal. Consider conducting a pre-listing inspection to make sure everything is out in the open before you sell.
2. Make Sure Your Price is Right
The key to selling your home quickly is to find the right buyers. To find the right buyers, your home must be correctly priced. I use a Comparative Market Analysis (CMA)—a thorough, data-backed examination of your home and how it compares to other listings in your area—to accurately price your home. Without an agent’s CMA, it’s easy for your home to be listed at the wrong price.
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- Avoid Overpricing: Overpricing your home will attract the wrong buyers because you will force your home into competition with other listings that are fundamentally superior or have more to offer. When comparing other homes to yours, buyers will focus on the discrepancies and the features your home lacks. Overpricing will often cause homes to sit on the market for extended periods of time and become less appealing to buyers.
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- Avoid Underpricing: Under competitive market conditions, intentionally underpricing a home is a common strategy to attract buyer attention with the goal of starting a bidding war to drive the price of the home up. However, several things must go correctly for this to happen. In all other cases, underpricing your home reflects a lack of knowledge about where its market value fits into the fabric of current local market conditions and can leave you, the seller, unsatisfied with the price your home ultimately fetches.
3. Invest In Staging & Professional Photography
First impressions matter when selling a home. The vast majority of buyers are searching online and taking virtual tours of homes they’re interested in. As such, it’s well worth the time and money to hire a high-quality photographer and I always provide this for my sellers. The right photography can make all the difference in the minds of buyers.
Home staging is also a critical element for getting the most value for a home and selling it quickly. You can even DIY if you have the time and modern decor. It’s also the perfect time to inspect your home for any minor or cosmetic repairs that can be addressed quickly. An aesthetically pleasing home will attract more eyes, and any edge you can give your home over competing listings may be just the ticket to getting it sold.
4. Keep Your Emotions in Check
Selling your home is an act of learning how to let it go. Once you know you’re ready to sell, you’ll need to be able to look at it with an objective eye. This will allow you to approach decisions from a neutral standpoint and work towards what is best for the sale of the home. Having clear judgement will also help you get through the negotiating process and steer yourself toward a smooth closing. Stepping back can be tough, but a good agent will always be happy to give you guidance and help you keep perspective.
5. Wait Until You’re Ready
It may be tempting to rush your listing to take advantage of local market conditions, but waiting until you have all your ducks in a row will make life so much easier. Knowing when to sell your home is a mixture of being financially prepared, having the right agent, and understanding how your home fits into the current local market landscape. Once you’re ready, here are some tips on timing the market.
6. Use an Agent
…and I’m not just saying it because I’m an agent! Selling a home “For Sale By Owner” (FSBO) can save on commission fees, but is a complex and risky process that can easily lead to serious costs. An agent will help you front marketing costs, provide sound advice to help you avoid legal trouble, and ultimately shoulder some of the liability for the transaction. Being represented by an experienced professional will help you avoid mistakes during the offer process, negotiations, and closing that could otherwise be costly or jeopardize the sale. It’s no wonder that a vast majority of sellers choose to work with an agent.
7. Be Willing to Negotiate
Approaching buyers’ offers with an open mind will ensure you don’t miss any opportunities. Before the offers start to come in, it’s important to work with your agent to understand your expectations and strategize which terms and contingencies you’re willing to negotiate on. That way, you can quickly identify the right offer when it comes along. Showing a willingness to work with buyers will also keep them engaged and make sure you don’t leave potential deals on the table.
© Copyright 2023 Windermere Mercer Island.
Adapted from articles that originally appeared on the Windermere blog, November 22, 2021 & April 7, 2021, by Sandy Dodge.
Real Estate •
February 17, 2023
Preparing to Sell Your Home: A Complete Checklist
Getting your home ready to sell can feel like a circus act. Without the right organization, juggling the countless moving parts involved in this stage of the selling process can take its toll. This is the perfect opportunity to create a checklist to keep yourself on track and within your budget. The following information will illuminate the key responsibilities you face as a homeowner as you prepare to hit the market.
We’ve included a comprehensive checklist below of the common tasks required to get your home ready to sell. It is also available as a downloadable pdf here:
EXTERIOR
This list of value-adding curb appeal projects will help to form buyers’ first impressions of your home and make your ever-important exterior listing photos stand out amongst the competition.
- Remove peeling and chipped paint; replace with a fresh coat
- Fix loose trim and fencing
- Clear gutters and downspouts
- Make sure there is good exterior lighting and all walkway lights and front-door lanterns work
- Clean and repair the roof as needed
- Clear garage of clutter and tidy shelves
- Inspect chimney for cracks and damage
Yard
- Mow and trim grass; re-seed and fertilize where necessary
- Prune all overgrown trees and shrubs
- Weed flower beds
- Remove or replace dead or diseased plants, shrubs, and trees
- Clean grease and oil stains from driveway
Decks/Patios
- Paint or stain worn areas on wood decks
- Remove grass growing in concrete cracks; sweep off debris from shrubs and trees
- Clean all deck rails and make sure they’re secure; replace missing slats or posts
- Clean outdoor furniture
Front Door
- Add a fresh coat of paint to get rid of nicks
- Clean the glass on the storm door; make certain the screen is secure
- Make sure the doorbell operates properly and there are no squeaks when the door opens and closes
Windows
- Clean all windows inside and out
- If needed, add a fresh coat of paint to the window trims and sills
- Make sure all windows open and close easily
- Replace cracked windowpanes and those with broken seals
- Make sure window screens are clean and secure; replace any screens with holes or tears
Front Entry
- Clean entryway floors and area rugs
- Downsize clutter in the entry and entry closet to give the appearance of spaciousness
- Double-check entry lighting to make sure it works
INTERIOR
Not only will these interior projects get your house sparkling clean, but they’re also preparatory steps for staging your home and hosting open houses.
General Interior Cleaning
- Clean all floors, carpets, walls, and trim
- Replace burned-out light bulbs
- Empty trash
- Remove family photos, valuables, and prescription drugs
- Tidy up clutter
Kitchen
- Fix dripping faucets
- Organize pantry and cupboards so they appear clean, neat, and spacious
- Make sure the refrigerator and freezer are defrosted and free of odors
- Clean the oven and cooktop thoroughly
- Set the table
Living/Family/Dining Rooms
- Give rooms a fresh coat of paint as needed
- Repair cracks and holes in ceiling and walls
- Make sure all wallpaper is secure
- Repaint any woodwork that is worn or chipped
- Clean or replace draperies and blinds; open them to maximize light
- Make sure draperies and blinds open and close
- Steam-clean carpets
- Clean rugs and wood flooring, and remove any stains or odors
- Position the furniture to showcase the size and space of the room
- Remove and replace any attached items, such as chandeliers and draperies, that you wish to move with you
- Put away toys and hobby supplies; remove extra magazines and books from tables
Bathrooms
- Make sure sinks, tubs, showers, and countertops are clean and free of stains
- Repair any leaky faucets
- Remove grout and soap stains from tile
- Replace any missing or cracked tiles or grout
- Make sure all joints are caulked
- Make sure all fixtures, including heat lamps and exhaust fans are operating
- Install a new shower curtain and buy matching towels
- Store all supplies, such as toilet paper, shampoo bottles and cleansers, out of sight
Bedrooms
- Repair cracks in ceiling and walls
- Apply a fresh coat of paint if necessary
- Make sure all wallpaper is secure
- Clean draperies and blinds; open them to maximize light
- Put away toys, clothes, and clutter
- Neatly make up the beds
Basement
- Check for water penetration or dampness; call for professional repairs if necessary
- Get rid of musty odors
- Clean furnace, hot water heater, and drains
- Make sure light fixtures work
- Arrange storage area in a neat and organized manner
- Make sure stairway handrail is secure
Tidy Extras
- Use air fresheners or bake treats to make the house smell good
- Plant flowers to brighten the walkway and enrich the entry
- Remove any indoor houseplants that are brown or losing their leaves
- Remove all “fixer” cars, campers, and boats from the property
- Tidy and declutter all closets
- Hide or get rid of worn-out throw pillows
- Store pet supplies
- At night, turn on the porch light and outdoor lighting
This article originally appeared on the Windermere blog June 29th, 2022. Written by: Sandy Dodge.
© Copyright 2023, Windermere Real Estate/Mercer Island.
Real Estate •
February 1, 2023
Q4 2022 Western Washington Economic & Real Estate Update
The following analysis of select counties of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. I hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.
Regional Economic Overview
Although the job market in Western Washington continues to grow, the pace has started to slow. The region added over 91,000 new jobs during the past year, but the 12-month growth rate is now below 100,000, a level we have not seen since the start of the post-COVID job recovery. That said, all but three counties have recovered completely from their pandemic job losses and total regional employment is up more than 52,000 jobs. The regional unemployment rate in November was 3.8%, which was marginally above the 3.7% level of a year ago. Many business owners across the country are pondering whether we are likely to enter a recession this year. As a result, it’s very possible that they will start to slow their expansion in anticipation of an economic contraction.
Western Washington Home Sales
❱ In the final quarter of 2022, 12,711 homes sold, representing a drop of 42% from the same period in 2021. Sales were 34.7% lower than in the third quarter of 2022.
❱ Listing activity rose in every market year over year but fell more than 26% compared to the third quarter, which is expected given the time of year.
❱ Home sales fell across the board relative to the fourth quarter of 2021 and the third quarter of 2022.
❱ Pending sales (demand) outpaced listings (supply) by a factor of 1:2. This was down from 1:6 in the third quarter. That ratio has been trending lower for the past year, which suggests that buyers are being more cautious and may be waiting for mortgage rates to drop.
Western Washington Home Prices
❱ Sale prices fell an average of 2% compared to the same period the year prior and were 6.1% lower than in the third quarter of 2022. The average sale price was $702,653.
❱ The median listing price in the fourth quarter of 2022 was 5% lower than in the third quarter. Only Skagit County experienced higher asking prices. Clearly, sellers are starting to be more realistic about the shift in the market.
❱ Even though the region saw aggregate prices fall, prices rose in six counties year over year.
❱ Much will be said about the drop in prices, but I am not overly concerned. Like most of the country, the Western Washington market went through a period of artificially low borrowing costs, which caused home values to soar. But now prices are trending back to more normalized levels, which I believe is a good thing.
Mortgage Rates
Rates rose dramatically in 2022, but I believe that they have now peaked. Mortgage rates are primarily based on the prices and yields of bonds, and while bonds take cues from several places, they are always impacted by inflation and the economy at large. If inflation continues to fall, as I expect it will, rates will continue to drop.
My current forecast is that mortgage rates will trend lower as we move through the year. While this may be good news for home buyers, rates will still be higher than they have become accustomed to. Even as the cost of borrowing falls, home prices in expensive markets such as Western Washington will probably fall a bit more to compensate for rates that will likely hold above 6% until early summer.
Western Washington Days on Market
❱ It took an average of 41 days for homes to sell in the fourth quarter of 2022. This was 17 more days than in the same quarter of 2021, and 16 days more than in the third quarter of 2022.
❱ King County was again the tightest market in Western Washington, with homes taking an average of 31 days to find a buyer.
❱ All counties contained in this report saw the average time on market rise from the same period a year ago.
❱ Year over year, the greatest increase in market time was Snohomish County, where it took an average of 23 more days to find a buyer. Compared to the third quarter of 2022, San Juan County saw average market time rise the most (from 34 to 74 days).
Conclusions
This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
The regional economy is still growing, but it is showing signs of slowing. Although this is not an immediate concern, if employees start to worry about job security, they may decide to wait before making the decision to buy or sell a home. As we move through the spring I believe the market will be fairly soft, but I would caution buyers who think conditions are completely shifting in their direction. Due to the large number of homeowners who have a mortgage at 3% or lower, I simply don’t believe the market will become oversupplied with inventory, which will keep home values from dropping too significantly.
Ultimately, however, the market will benefit buyers more than sellers, at least for the time being. As such, I have moved the needle as close to the balance line as we have seen in a very long time.
About Matthew Gardner
As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.
In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.
This article originally appeared on the Windermere blog January 26th, 2023. Written by: Matthew Gardner.
© Copyright 2023, Windermere Real Estate/Mercer Island.
Real Estate •
November 17, 2022
What is an Adjustable-Rate Mortgage (ARM)?
Securing the most advantageous financing for your situation is an integral part of the success formula of buying a home. After getting pre-approved but once you’ve found the home you’d like to pursue, one of your primary tasks is exploring different loan products to see which best fits your situation. This is the fork in the road where you’ll need to decide between a fixed-rate mortgage and an adjustable-rate mortgage (ARM). The following information will help you gain a better understanding of ARMs to help you decide whether they’re right for you.
What Is an Adjustable-Rate Mortgage (ARM)?
After your down payment, your mortgage will finance the remainder of your home purchase. Whereas fixed-rate mortgages allow you to lock in a specific interest rate and payment for the life of your loan, adjustable-rate mortgages’ interest rates will fluctuate over time, thus changing your loan payment. It’s typical for ARMs to begin with a low introductory interest rate, but once that first stage of the loan has passed, they will begin to shift up and down. ARMs generally have a cap that specifies the maximum rate that can occur for that loan.
Let’s say you secure an adjustable-rate mortgage with 30-year terms, the first five of which are at a fixed rate. When the variable interest portion of the loan kicks in, your mortgage’s fluctuations will be measured against an index. If the index is higher than when you secured the loan, your rate and loan payment will go up—and vice versa. How often your ARM rates change depends on your agreement with your lender. Talk to your mortgage broker to learn more about the characteristics of adjustable-rate mortgages.
Pros and Cons of an Adjustable-Rate Mortgage (ARM)
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Different Types of Adjustable-Rate Mortgages (ARMs)
Hybrid ARM: As outlined above, a hybrid ARM begins with a fixed-rate introductory period followed by an adjustable-rate period. Typically, a hybrid ARM’s fixed-rate period lasts anywhere between three to 10 years, and its rates adjust at an agreed-upon frequency during the adjustable-rate period, such as once every six months or once a year.
Interest-Only ARM: With an interest-only ARM, you pay just the interest on the loan for a specified introductory period, then the principal payments kick in on top. The longer the introductory period, the higher your payments will be when the delayed principal payments enter the equation.
Payment-Option ARM: Not all states allow these loan products because they can get home buyers into hot water quickly if rates increase. They include flexibility to choose your monthly payments with a payment-option ARM, including interest-only payments and minimum payments that don’t cover interest.
Home Monthly Payment Calculator
To get an idea of how your mortgage payment will fit into your budget, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price.
Adapted from an article that originally appeared on the Windermere blog September 28, 2022. Written by: Sandy Dodge.
© Copyright 2022, Windermere Real Estate/Mercer Island.
Tips, Trends & Living •
September 13, 2022
Your Fall Home Maintenance Checklist
A clever person solves a problem;
a wise person avoids it.
As the days shorten, you can mitigate many mid-winter headaches with some preemptive prep. Proper weatherizing can help protect your home from preventable damage, save money on energy costs, and, most importantly, keep you and your loved ones safe and warm throughout the winter season. Here is a useful checklist to manage your weatherization project. Setting aside some time on a couple of weekend days should be more than enough to knock this out. Scroll down for helpful tips and click here for a printable checklist!
1. Clean the Gutters
After all the leaves, pine cones, pine needles, and other autumnal debris have fallen, clear them out from your rain gutters. This will avoid gutter damage from ice or melted snow draining improperly. Even in warmer locales, gutter buildup & leakage can put undue stress on your roof and home. Make sure your downspouts are pointing away from your home’s foundation to prevent basement leaks and flooding.
2. Look at the Roof
Check for any damaged shingles, corroded flashing, or leaky vents that need to be repaired. When the first heavy rain comes after a long dry spell, check the underside of the roof for moisture on joints or insulation. Mark any spots that you find and then hire a roofing specialist to repair these leaks. If you wait until spots show up on your ceiling, insulation and sheet rock will have also been damaged and you could have a mold problem too. You can find tips on how to solve roof & gutter issues in this great article from http://FamilyHandyman.com.
3. Check the Siding
While the weather is still nice, look for any gaps or cracks and seal them with exterior caulk (here are some tips). You should also touch up any old or loose paint to ensure your home’s exterior has a weatherproof seal.
4. Trim Tree Limbs
If your property has large trees, check for loose branches and call someone to trim back any limbs that may fall in your yard, on your roof or even damage a window. Branches that touch your house and overhang your roof are convenient on-ramps for pests, so trim back branches so they’re at least four feet from the house.
5. Reverse Ceiling Fans
If you have ceilings fans in your home, there is a handy trick you can use to improve your home’s heating efficiency. By reversing the direction of your ceiling fan—running the blades in a clockwise direction—you’ll create a slight updraft, forcing warm air near the ceiling downward.
6. Weatherize Doors
If an exterior door doesn’t have a snug seal when closed, replace the weather stripping; self-adhesive foam stripping is much simpler to install than traditional vinyl stripping but has a shorter lifespan. If there is a gap under the door (which can happen over time as a house settles), you may need to realign the door and replace the vinyl door bottom and/or door sweep.
7. Service the Furnace
Preventative maintenance is crucial for your home’s heating and air-conditioning systems. Fall is a smart time to have your systems checked and tuned up. Don’t wait for extreme temperatures to arrive, when service companies are slammed with emergency calls. Replace filters if you use a furnace and clear out any vents and ducts that carry heat through them. If you have baseboard heaters, wipe them of dust and remove any debris that might catch fire.
8. Check the Chimney
Make sure to have chimneys and air vents inspected and cleaned early in the season if you are planning on warming your home with a wood-burning source. When your fireplace is not in use, make sure to close the damper—some resources estimate an open damper can increase energy consumption by as much as 30%, increasing your bill about $200.
9. Test Safety Devices
Most house fires happen in the fall and winter, with holiday cooking and heating systems both being common causes. Deadly carbon monoxide can also be released by furnaces, stoves, fireplaces, and space heaters. Protect your household by replacing any smoke detectors and carbon monoxide monitors as needed. Check the indicators on your fire extinguishers to make sure they’re still good (or install them if you don’t have them—a Class B extinguisher for the kitchen is a good place to start, but you might need more according to this guide).
10. Winterize Plumbing
Make sure any pipes in unheated spaces—such as the crawl space, basement, or garage—are properly insulated to prevent freezing and bursts. Disconnect hoses and install hose bib covers on all outdoor faucets. Winterize your in-ground sprinkler system…here’s a great wikiHow article with 3 different methods.
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Adapted from articles that originally appeared on the Windermere blog December 21, 2020, by Sandy Dodge; October 7th, 2019 by Meaghan McGlynn; and September 16, 2016 by Windermere Staff.
