Selling • September 9, 2020

Dangers of an Overpriced Home

by Phillipa Leseberg

When it comes time to sell your home, determining its exact value can be a challenge. Naturally, homeowners want to get the most value for their home. However, if it hits the market at too high a price, it could cause serious complications in the selling process.

Attracting the wrong buyers

An overpriced home creates a kind of seller’s limbo that draws the attention of the wrong buyers, which is a surefire way to start your selling process off on the wrong foot.

A vast majority of homebuyers begin their home search online, especially during these days of social distancing amidst the COVID-19 pandemic. If your home is overpriced in comparison to other listings in your area, it won’t appear in their search results. In this way, an overpriced home is blind to its intended buyers and actually drives traffic to nearby listings that are more accurately priced.

An overpriced home can’t compete with listings in a more expensive bracket. Buyers know what they want, and they know what to expect in their price range. When they notice a home is missing the square footage, features, and amenities typically found in others at the same price, they will quickly lose interest.

Fewer showings / virtual tours

Showings—both physical and virtual—play a significant role in the sale of your home. They give buyers a first-hand look and provide them the opportunity to ask questions and gather more information. Selling your home is a numbers game. The more showings scheduled at your listing, the more potential buyers you have. The more potential buyers, the greater chance of an offer.

Your agent knows that showings are critical to capturing buyer interest. But if the home is overpriced, they will have difficulty attracting attention to your home. This can slow the entire home selling process, leaving both the seller and agent feeling frustrated.

Expired shelf life

Think of the home you’re selling as a fresh tomato. Off the vine (newly listed), it is fresh and attractive, appealing to everyone in the market and standing out amongst the other tomatoes. As time goes on, no one buys the tomato and it begins to overripen and wither, losing its appeal. This is what happens to an overpriced home in the minds of buyers.

New listings attract the most attention—that’s when buyer interest is highest. The longer your home is on the market, the less appealing it becomes. At a certain point, sellers are forced to lower the price. However, this lowered price won’t have the same impact as hitting the market correctly priced the first time. Once price drops begin, they can continue, which creates the risk of selling the home for less than what it is worth.

Lastly, the longer your home is on the market, the more expenses you incur. Mortgage payments, utilities costs and seller’s fees will continue to pile up, making it harder to recover from these costs when your home does eventually sell.

Post-sale complications

Let’s say you do find a buyer at the overpriced cost. During closing, the lender will order an appraisal of your home, and if the appraiser finds that the market value of the home is less than the selling price, they could potentially deny financing.
Talk to me anytime about how to price your home correctly to avoid these pitfalls of overpricing. Knowing your home’s worth will set you up for success when it comes time to hit the market.

Local News • August 26, 2020

KIRKLAND GROWS IN POPULATION, HOUSING AND BUSINESS

by Phillipa Leseberg

Across Lake Washington from Seattle, quiet Kirkland is in for a bustling future. Prior to the pandemic, the city was experiencing growth as it worked to accommodate 8,361 new housing units and 22,435 new jobs by 2035, averaging out to about 363 housing units and 975 jobs per year. Even with the pandemic in mind, Kirkland is preparing for a growth spurt.

The cause of this exponential growth? Everything from continued investment from businesses like Google, new construction projects and the annexation of land from nearby Finn Hill, Juanita and Kingsgate. The result is a population increase of 82 percent between 2011 and 2019, and a sizeable increase in land area thanks to the newly incorporated areas.

To accommodate a growing population and increasing job opportunities in the area, Kirkland is also developing a Bus Rapid Transit (BRT) system that will include a new station in the city which will serve the greater I-405 corridor. The station will also allow for transit-related development and new construction within a half-mile radius of the station. Currently, the area includes multi-family residences, schools, parks and commercial/retail and office spaces.

One of the other notable new projects includes the completion of the Village at Totem Lake. The 26-acre urban lifestyle village has been under construction since 2016, but the development plans to wrap up by the end of this year. The Village includes commercial tenants such as Cinemark, Whole Foods and Nordstrom Rack, while the nearby Aura Totem Lake apartments have 202 housing units available, with two more complexes to be completed by spring 2021.

Another developing property, Kirkland Urban, is a mixed-use project on 11.5 acres in downtown Kirkland. The project caught the attention of Google, who purchased most of the property for $435.7 million in 2019, and has now added 1.1 million square feet of office space in the city. Google already had offices in the area, and during the pandemic many of its employees will continue to work from home. Additional businesses in the area will include restaurants, bars, shopping and more housing at the recently-opened Uptown Apartments.

Thanks to its rapid growth, Kirkland is now more committed than ever to the “Innovation Triangle” it forms with Bellevue and Redmond. Together, the three cities have formed an attractive hub for tech businesses and workers alike, as they foster improved commutes, residential areas, job opportunities and positive growth.

This article was originally posted on 425 Business by John Stearns.

Market News • August 14, 2020

LOCAL MARKET UPDATE – AUGUST 2020

by Phillipa Leseberg

While the pace of daily life may seem slow right now, the local real estate market has had an unusually busy summer. The number of new listings in July was up, sales increased, and home prices followed suit.

• While overall inventory is at historic lows, more sellers put their homes on
the market. New listings of single-family homes in King County jumped more than
25% from a year ago. Snohomish County saw a 7% increase in new listings.

• Pent-up buyer demand fueled sales activity in July. The number of pending
sales was up 17% over a year ago in King County, and up 13% in Snohomish
County.

• With buyers snapping up new listings as soon as they hit the market, total
available inventory dropped to a 10-year low for the month.

• The lack of inventory is benefiting sellers, and multiple offers are now common
at every price point. As a result, single-family home prices rose 7% in King
County and 15% in Snohomish County.

The charts below provide a brief overview of market activity. If you are interested in more information, every Monday Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market. You can get Matthew’s latest update here.

VIEW FULL EASTSIDE REPORT

Living • August 6, 2020

Your Guide to Going Solar

by Phillipa Leseberg

Image Source: Canva

For homeowners looking to reduce their home’s carbon footprint, increase its sustainability, and add value to their property, going solar is an obvious choice. Understanding how solar works and how to maximize its benefits are key first steps in your journey to becoming a solar energy-producing household.

How does solar work?

The technology that turns your house into a solar energy-harnessing hub is called photovoltaics, more commonly known as PV. PV works by fielding direct sunlight and absorbing its photons into the solar panels’ cells, which then creates electricity that provides energy for your home. This energy reduces your home’s output of carbon and other pollutants, which translates to cleaner air and water.

With the sun as the power source, the majority of the power generation occurs during the middle of the day, making summer the highest producing season. But don’t worry, it all evens out in the end.

Rooftop panels work best when they are exposed to sunlight, free of shade or shadow from nearby trees or structures. Given the sun’s east-to-west path, south-facing roofs are best-suited for maximizing your solar power. To see if your roof is set up for success, consult a mapping service or solar calculator to establish your roof’s suitability. If your roof isn’t up to standard, there are options such as ground mount solar installations and community solar gardens that you can explore.

Components

Solar panels: Capture the sun’s energy
Inverter: Converts the sun’s energy to a form that powers devices
Racking: The foundation that holds your solar system in place
Batteries: To store the energy generated
Charge controller: To control how quickly the batteries charge

What are the benefits of solar power?

Sustainability: Having a renewable source of energy coursing through your home reduces your household’s carbon footprint and increases your eco-friendliness.
Savings: How much money you save by going solar depends largely on how much energy your household consumes and the energy output of your solar panels. The cost of going solar has continued to decrease every year, so you are more likely to save as time goes on. For information on state incentives and tax breaks, explore what options apply to your home by visiting DSIRE(Database of State Incentives for Renewables & Efficiency).
Utilities: Whether your utility company charges a flat rate for electricity or charges variable rates throughout the day based on electricity production—i.e. higher rates in the afternoon, lower rates at night—solar power offsets the price you are charged for electricity. It becomes even more valuable during those higher-rate periods or during seasonal fluctuations in utilities costs.
Sell it back: Homeowners can sell their solar energy back to utilities through “Net-metering” plans. When your power generation rate is greater than your household’s consumption rate, the end result on your electric bill is a net energy consumption. Refer to DSIRE for region-specific regulations and policies.
Home value: A recent study by The Appraisal Journal found that homes with solar PV systems increased their sale price by an average of 3.74%, equaling a premium of $14,329.

Although the right solar solution looks different for each household, what remains true across the board are the environmental benefits and increased home values that solar power brings. Taking all this information into your research will improve your home’s renewable energy and reduce your carbon footprint.

SOURCE: Windermere Blog

Local News • July 23, 2020

SEATTLE RANKS AS 9TH-BEST CITY WORLDWIDE FOR STARTUPS

by Phillipa Leseberg

Seattle has long been home base to big tech businesses like Amazon and Microsoft, but the city is increasingly a haven to smaller startups and spin-off companies as well. Recognizing the city’s potential for hosting successful startups, think tank Startup Genome recently placed Seattle at no. 9 on their list of the top 30 global ecosystems for startups.

To generate their rankings, Startup Genome evaluates ecosystems on seven indicators of success, including performance, funding, market reach, talent, connectedness, knowledge and infrastructure. The top five ecosystems on this year’s list — Silicon Valley, New York City, London, Beijing and Boston — were also at the top of the list for 2019.

Seattle, however, jumped up three places from last year — landing it within the top 10 startup ecosystems in the world. Of the various success indicators, Seattle ranked particularly high in connectedness, even beating the overall number one ecosystem, Silicon Valley, in this category.

Among Seattle’s other indicators, performance, market reach and talent were also particular strengths.

According to GeekWire, researchers at Startup Genome also noted Seattle’s high performance in big data, A.I., analytics, and its thriving life sciences industry.

Another point of interest is Seattle’s “startup genealogy,” as defined by Startup Genome. Essentially, new founders can draw on a strong legacy of experience from other industry leaders like Microsoft and Amazon. The prevalence of spin-off companies helmed by employees with experience at larger, established companies creates an environment in which startups can tap into time-tested industry knowledge and experience from the get-go. Research and talent from the University of Washington has also been beneficial for improving the Seattle startup ecosystem.

Though Seattle scored lower on funding resources according to Startup Genome, in 2019 the city saw venture capital funding for startups reach a record-high of $3.59 billion. Additionally, Seattle has stayed strong as a tech hub for STEM jobs, drawing more interest from local investors and national firms alike.

By some estimates, Seattle may be heading for a boom in venture capital investment. According to GeekWire, the city’s pool of talent in tech, STEM programs, angel investors, new venture funds for earl-stage startups and more support for company-building could lead to an influx of capital.

Provided these businesses can weather the present storm of coronavirus, the future looks bright for Seattle’s next generation of startups.

This article was originally posted on GeekWire by Taylor Soper.

Market Report • July 22, 2020

THE GARDNER REPORT – SECOND QUARTER 2020

by Phillipa Leseberg

The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We 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 reach to me anytime!

REGIONAL ECONOMIC OVERVIEW

It appears as if the massive COVID-19 induced contraction in employment that Washington State — along with the rest of the nation — experienced this spring is behind us (at least for now). Statewide employment started to drop in March, but April was the real shock: total employment dropped almost 460,000 between March and April, a decline of 13.1%. However, this turned around remarkably quickly, with a solid increase of 52,500 jobs in May. Worthy of note is that, in May alone, Western Washington recovered 43,500 of the 320,000 jobs that were lost in the region the prior month. Although it is certainly too early to categorically state that we are out of the woods, the direction is positive and, assuming we respect the state’s mandates regarding social distancing and mask wearing, I remain hopeful that Washington will not have to re-enter any form of lockdown.

HOME SALES

There were 17,465 home sales during the second quarter of 2020, representing a drop of 22.2% from the same period in 2019, but 30.6% higher than in the first quarter of this year.
The number of homes for sale was 37% lower than a year ago, but was up 32% compared to the first quarter of the year.
Given COVID-19’s impacts, it’s not surprising that sales declined across the board. The greatest drops were in Whatcom and King counties. The smallest declines were in Grays Harbor and Cowlitz counties.
Pending sales — a good gauge of future closings — rose 35.7% compared to the first quarter of the year, suggesting that third quarter closings will grow as well.

HOME PRICES

Home-price growth in Western Washington rose by a relatively modest 3.5% compared to a year ago. The average sale price in the second quarter was $559,194.
Compared to the same period a year ago, price growth was strongest in Grays Harbor County, where home prices were up 14.3%. Clallam County also saw a double-digit price increase.
It was interesting to note that prices were up a significant 6.6% compared to the first quarter. This suggests that any concern regarding negative impacts to home values as a function of COVID-19 may be overblown.
I will be watching for significant price growth in less urbanized areas going forward. If there is, it may be an indication that COVID-19 is affecting where buyers are choosing to live.

DAYS ON MARKET

The average number of days it took to sell a home in the second quarter of this year matched the second quarter of 2019.
Across the entire region, it took an average of 40 days to sell a home in the second quarter. I would also note that it took an average of 14 fewer days to sell a home than in the first quarter of this year.
Thurston, King, Pierce, and Snohomish counties were the tightest markets in Western Washington, with homes taking an average of only 17 days to sell. All but two counties, Grays Harbor and Cowlitz, saw the length of time it took to sell a home drop compared to the same period a year ago.
Market time remains well below the long-term average across the region. This is due to significant increases in demand along with the remarkably low level of inventory available.

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.

What a difference a quarter makes! Given that demand has reappeared remarkably quickly and interest rates remain historically low, it certainly remains a seller’s market and I don’t expect this to change in the foreseeable future.

The overall housing market has exhibited remarkable resilience and housing demand has rebounded faster than most would have expected. I anticipate demand to remain robust, but this will cause affordability issues to remain as long as the new construction housing market remains muted.

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.

Buying • July 13, 2020

Buying with Your Pets in Mind

by Phillipa Leseberg

Image source: Canva

For many of us, pets play a central role in our home life, so taking into account what is best for them when buying a home is important for both their happiness and that of your entire household.

Your neighborhood

When looking for homes that are well suited to both you and your furry companion, consider the area surrounding the home. If your pet is an indoor/outdoor animal, it’s important to examine the hustle and bustle of the neighborhood. If your pet spends time outside, a busy neighborhood could be dangerous, and depending on the level of traffic, he or she may need to be on a leash at all times.

How conducive is the neighborhood for taking your pet on walks? If you frequently walk your pet, look for neighborhoods with sidewalks. If your pet enjoys being off-leash, consider prioritizing homes with green belts, parks, trails, or designated off-leash areas nearby. It’s also a good idea to identify where the local emergency pet centers and veterinarian clinics are to insure there is sufficient medical care for your pet in proximity to where you live.

Your House

Size: Is the house big enough? Depending on the type of pet, or breed of animal, space may be the most important factor in picking a pet-friendly home. If you are moving into a bigger space than you were in previously, understand your pet will likely take to the additional room differently. On the flip side, if you are downsizing, be mindful of how it might impact your pet.
Yard: If you have a pet that spends time outside, it’s important to pay particular attention to the yard. Is it large enough? Does it have a secure fence? Is there easy access between the home and the yard?
Flooring: Pet-friendly flooring can be tough. Surfaces that can be repaired or refinished when scratched are typically the best options for homes with pets. Sealing additional layers will build up the resistance to damage from paws, claws, and general pet wear and tear.
Carpet: Cats are notorious for clawing and scratching at carpet, and dogs are infamous for bringing the outdoors in with them. Consider carpeting of a lesser quality in the area where your pets spend most of the time, or search for carpets that are stain resistant and easy to clean.
Stairs: Older pets and multileveled homes are at odds. Consider the age of your pet and how active you expect them to be so that you don’t find yourself in a position where you’re having to carry your pet between floors.

HOA?

When looking at a home, ask whether or not it is a part of a Homeowners Association and what restrictions may apply to the property. For instance, certain HOA developments limit the number and/or type of pets per household.

Most pet owners take the needs of their pets seriously. In fact, in a recent Realtor.com survey, 75 percent of the respondents said they would not accept an otherwise perfect home if it didn’t meet the needs of their pet. When it comes down to it, prioritizing your pet when buying a home not only insures your pet’s well-being, but that of your household, as well.

Regional Market Update • July 13, 2020

LOCAL MARKET UPDATE – JULY 2020

by Phillipa Leseberg

While our lives are very different than they were a year ago, the local real estate market has recovered to 2019 levels. Record low interest rates are helping spur demand. Sales were up, home prices increased and multiple offers were common.

The number of pending sales, a measure of current demand, was higher in June than for the same period a year ago.
The supply of homes on the market remains very low, with just a month of available inventory. When inventory is this low, quick sales over full price are common. That was the case in June when about 40% of homes sold for more than the asking price.
Home prices in King County rose 4% over a year ago. Snohomish County home prices increased 5%.
More sellers put their homes on the market. While total inventory remains low, the number of new listings in June was similar to the same time last year.

The monthly statistics below are based on closed sales. Since closing generally takes 30 days, the statistics for June are mostly reflective of sales in May.

VIEW FULL EASTSIDE REPORT

Living • June 30, 2020

DIY Home Projects

by Phillipa Leseberg

Image Source: Shutterstock

In recent months, homes have taken on additional roles as offices, schools, and places of entertainment as staying at home has become the norm. With the extra time spent inside and the additional wear and tear on your home, this is a perfect time for those Do-It-Yourself projects you’ve been wanting to get done.

Before getting out the power tools, take time to consider the projects you have in mind. If you’re questioning how the renovations will affect resale value, consult an expert, like your Windermere agent. Assess your budget to see if certain projects should be prioritized over others, or if you have the financial capacity for only one or two projects at this time.

Here are a few ideas:

Landscaping and garden projects: the steppingstones of your home’s DIY outdoor makeover.

A great first step is to start with your front yard—it’s the first thing people see when approaching your home and upgrades to it will improve the curb appeal.
Start with the hardscaping projects—driveways, decks, fencing, walkways—before installing plants.
When it comes time to plant, add organic material to your soil such as peat moss, mushroom compost, or leaf mold for added health.
Add in different shapes and textures of plants to give your landscaping a varied, vibrant look.

Repainting a room: follow these steps to give any room a fresh look and feel.

The repainting process begins by moving all furniture out of the room. If you want to pile everything in the center and work around it, be sure to lay your drop cloths on the floor before doing so and cover your furniture to prevent damage.
Repair any damage to the walls and fill in cracks with putty. This is a good time to remove all electrical outlets and switch covers to get the walls completely flat.
Choose the appropriate brush or paint roller depending on the size of the surface area.
Once the walls are painted, remove your painter’s tape and paint the trim.

Flooring projects: how to repair or add flooring that will have you walking through your house comfortably.

Wood floor damage: To remove surface scratches from wood floors, use steel wool or fine grit sandpaper and finish with a top coat of polyurethane. For deep scratches, use wood filler that closely matches your flooring in color, and apply a wood finish layer on top.
Vinyl floor damage: If your vinyl flooring has ripped up, apply a vinyl flooring adhesive and lay the ripped piece into place. For sections that are completely torn off, use a utility knife to cut a new piece of flooring and apply adhesive when matching the piece back into the floor.
New tile flooring: Before you start tiling, wash the floor with a commercial detergent to remove dirt and stains. If you are laying new tile over old tile, make sure the original layer is secure. Begin by laying out the pattern before making your tile cuts. Then you are ready to apply the mastic or mortar, and finally lay the tiles. Let the tile sit for at least a day before grouting the joints.

With so many people staying at home, DIY projects are at an all-time high. Doing projects like these yourself may not be easy, but it gives a greater sense of ownership, and can often save you money by not outsourcing the work. For additional help on these projects and to find new ones, check out YouTube’s vast DIY resources.

Regional Market Update • June 11, 2020

LOCAL MARKET UPDATE – JUNE 2020

by Phillipa Leseberg

As we move to the next phase of reopening, life feels like it’s slowly inching back towards normal. The same is true in real estate. Statistics on home sales in May provided the first true picture of the effects of COVID-19. Those reports confirmed the incredible strength and stability of the local real estate market.

The Stay Home order, as expected, continued to impact the number of sales. However, the market is starting to move its way towards more normal activity. Pending sales, a measure of current demand, have risen every week since April.
The slight drop in median closed sale price is a result of a proportionately larger number of lower priced homes selling than is normal. It should not be interpreted as a decrease in individual home value.
There were significantly fewer homes for sale in May than the same time last year. With less than a month of available inventory, competition among buyers was intense. Bidding wars and all-cash offers were common.

The monthly statistics below are based on closed sales. Since closing generally takes 30 days, the statistics for May are mostly reflective of sales in April. If you are interested in more information, every Monday Windermere Chief Economist Matthew Gardner provides an update regarding the impact of COVID-19 on the US economy and housing market. You can get Matthew’s latest update here. As we adapt to new phases of reopening, know that the safety of everyone remains our top priority.

VIEW FULL EASTSIDE REPORT