BuyingSelling June 11, 2024

Why Buyer Representation Should Matter So Much to Sellers

SOURCE: Windermere

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 commission 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 broker 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.

SOURCE: Windermere

Living May 28, 2024

Easy Earth-Friendly Energy Fixes

SOURCE: Windermere

There are plenty of good reasons to make your house a little greener, including saving money on energy expenses and ensuring a more livable planet for future generations. No matter what your motivation, making eco-friendly changes doesn’t have to be a daunting proposition.

The following relatively simple tips will help to not only reduce your carbon footprint to realize savings but also bring the peace of mind that comes from making smart choices for the environment.

Reduce Water Usage

For many homeowners, the highest utility expense is the water bill. We all know that taking shorter showers and only running the dishwasher when it’s full can help reduce water usage, but there are other ways to find savings.

If you are an ardent gardener, collect water in a rain barrel during the wetter months to use on plants and yards when outside temperatures go up. Installing a low-flow or dual-flush toilet (or retrofitting your existing toilets) can also reduce the amount of water that goes down the drain.

Invest in Energy Star® Appliances

If your appliances—including your washer and dryer, refrigerator, water heater, or television—are more than ten years old, buying new ones could be all it takes to save money.

For an even bigger bang for your buck, invest in Energy Star appliances. To be certified as Energy Star, appliances must meet strict standards for energy efficiency set by the Environmental Protection Agency (EPA). The upfront cost of these products can be a little heftier than other appliances, but rebates and federal tax credits can help offset that initial expense.

Get a Smart Thermostat

Many thermostats have a scheduling feature to help manage your heating and cooling. This can be helpful if you have a consistent daily routine of when you will be home and out of the house to save energy during the hours when you’re away or asleep.

You can now find thermostats that meet the EPA’s criteria for energy efficiency. Energy Star smart thermostats are Wi-Fi-enabled and give you better control over the heating and cooling of your home. Many of these options have apps on your smartphone that give you the power to adjust from your fingertips. And over time, they can learn your preferences, including times you are away from home and when you sleep, to improve efficiency. They can also provide insight into your energy usage so you can make adjustments yourself for optimal performance.

Plant a Tree or Two

Trees not only suck carbon dioxide out of the atmosphere while producing the oxygen we need for fresh air, but they also provide shade for homes in the summer months, which can cut down on the time you need to run an air-conditioning unit or the AC function of your HVAC system. Plant trees on the south and west side of your home for the best results. Trees that shed their leaves in the fall can provide mulch for your yard or garden, thus reducing the amount you’ll need to water them in the summer and fall.

SOURCE: Windermere

Windermere Community May 14, 2024

Kicking Off the 35th Anniversary of the Windermere Foundation

SOURCE: Windermere

This year we’re celebrating the 35th anniversary of the Windermere Foundation, the non-profit arm of Windermere Real Estate. Since 1989, agents and offices across our network have given back to the communities where Windermere operates. We’ve raised over $53 million and supported thousands of our neighbors in need throughout the Western U.S.

Last year the Windermere Foundation donated $3.7 million to 607 non-profit organizations dedicated to assisting low-income and homeless families. Donations provided emergency assistance, supported youth programs, food support, and shelter.

Our 2023 Community Impact Report outlines our efforts and is available to download and read here.

To start off 2024 on the right foot, our offices in Spokane, WA, and Lake Oswego, OR are doing their part to support low-income and homeless families in their communities through grants and fundraising events.

 

Helping Refugees Thrive in Spokane, WA

Five white people pose smiling with a giant check in a boardroom. The Thrive International logo is on the wall behind them.

Image Source: Windermere Spokane

In their annual grant review, Windermere Spokane considered 32 applications for their 2024 Windermere Foundation donations and were able to grant funds to 11 organizations. While they were able to support a handful of organizations they have donated to previously, they were able to add some new non-profits to their list, including Thrive International.

The stories submitted by Thrive about their temporary housing for refugees struck a chord with a group of Windermere Foundation representatives who come from seven Spokane-area Windermere offices. The funds will help refugee families access housing in a moment when shelter is so important. In addition to temporary housing, Thrive also offers education and empowerment programs to residents, which have helped lead so many into further housing and successful transitions as immigrants to the greater Spokane area. Read on for a story about Yuliia, a Ukrainian refugee who was assisted by Thrive.

Yuliia’s Story

Yuliia smiles in front of a lit neon sign in the shape of the Thrive International logo.

Image Source: With Permission from Thrive International and Windermere Spokane

Yuliia is from Ukraine. She unexpectedly started her journey to come to the United States in May of 2022, just three months after the Russian-Ukrainian war started. Initially, leaving her homeland was not a part of Yuliia’s plans. However, when bombs blasted in her city, she made the difficult decision to seek a secure haven for her family.

“Everything was so good. My life was good before everything happened,” said Yuliia. She was a hardworking administrative manager at a company in Ukraine. Yuliia and her husband had just bought their first home; however, their lives took an abrupt turn when their city became a danger zone, leading them to sell their car to afford flights for their journey to the United States in pursuit of refuge.

Arriving in the U.S. with little more than the clothes in their suitcases, Yuliia faced the daunting challenge of rebuilding her life from scratch. She said, “When we came here, we didn’t have anything. We didn’t have money. We didn’t have any documents. It just looked like we were starting from zero.”

Amidst linguistic and cultural barriers, Yuliia discovered Thrive Center in June, becoming one of its first residents. With the support of Thrive staff, she found not only employment but also a community where she could make connections with other Ukrainian refugees and get help with medical insurance, workshops, and educational resources. Starting as a front desk assistant at a dental clinic, Yuliia’s journey has come full circle as she now serves as the Assistant to the General Manager at Thrive Center.

Expressing gratitude for the opportunities she’s been given, Yuliia finds joy in empowering others to thrive. Yuliia’s story shows resilience and hope amidst adversity. From the once-thriving administrative manager in Ukraine to the unexpected refugee seeking safety in the United States and helping others at Thrive Center, her journey is a testament to the strength of the human spirit.

Stories like Yuliiua’s inspired the Windermere team reviewing applications to fulfill the grant with their available Windermere Foundation funds.

Emma Reeves, with the Windermere Foundation in Spokane, said, “we are excited to continue working with Thrive in the future to ensure that having a ‘home’ is a possibility for all.”

 

Sally Knauss Tulip Sale in Lake Oswego, OR

Four white women stand, smiling, behind a table with tulip bouquets wrapped in brown paper. They’re in rain jackets and they stand in front of the Windermere Spokane office, with the Windermere logo displayed on the wall behind them.

Image Source: Windermere Lake Oswego

The agents at the Windermere office in Lake Oswego, OR hosted their 27th annual Sally Knauss Tulip Sale in March. Named for the Realty Trust agent who started it, who has since passed away, the tulip sale culminated in an order for 8,000 tulips from Wooden Shoe Tulip Farm, which were used to create 800 bouquets.

“Rain or shine each year [our office] is happy to enable this iconic event,” said Valerie Ross, Principal Broker at Windermere-Lake Oswego

Taking shifts from 8am to 1pm on Friday, March 29, fifteen Windermere agents volunteered for the cause, which raises money for the office’s Windermere Foundation fund. Donations from the sale allow the office to support local non-profits throughout the year. This year’s sale raised $5,800 which will go to one or more of their favorite organizations, like Clackamas County Women’s Shelter, Bridge Meadows, New Avenues for Youth, and Friends of the Children.

SOURCE: Windermere

W Report April 25, 2024

W Report – April 2024

Selling April 22, 2024

Seven Steps to Yard Sale Success

SOURCE: Windermere

As you prepare to sell your house and move to a new one, you may be taking a fresh look at your belongings. You might be wondering how they’ll work in the new home or if you’ll need to upgrade to new ones. If you’re staging your current home and need to declutter, you are probably considering which items you can live without. A yard sale is a great way to get rid of old items, reduce what you have to move with you, and make room for the new. Here are some tips to make your yard sale a success.

Determine What to Sell

A good rule of thumb when deciding what you want to sell is, if you haven’t used it in more than a year, get rid of it. This doesn’t hold true for keepsakes and heirlooms, but if it’s not sparking joy and it’s been in storage for a year or more, add it to the “for sale” pile.

Make It a Neighborhood Event

Consider contacting your neighbors to coordinate having one large neighborhood sale on the same day. This will help attract more buyers. Have each participating household pitch in a few bucks for signage you can post around the area directing people to your sales. When the buyers have left and you’re finished packing up, bring out the grills and make it a block party!

Helpful hint: check your local laws or HOA rules to see if you need permits for a community sale or outdoor party.

Get the Whole Family Involved

If you have kids and they want to sell some of their things, have them help by putting price stickers on their items or, depending on their age, making change when people pay for their purchases. If you aren’t selling children’s items but you have young ones who still want to be involved, help them set up a lemonade stand or host a small bake sale.

Promote on Social Media

Create a Facebook event page and invite all your friends. Tweet about it and create a fun hashtag, then offer a prize to those who repost about your sale. Post a carousel of the images for sale on Instagram. Use Nextdoor or another neighborhood app to invite people you may not know in other neighborhoods. Whatever old knick-knacks you may uncover are sure to be a hit for somebody, and spreading the word of your sale beyond those who are nearby will help them find you.

Offer Multiple Payment Options

Not everyone carries cash these days. If you offer them the ability to pay via PayPal, Venmo, Zelle, or another peer-to-peer payment platform, you’ll make more sales. You’re also more likely to turn passers-by into buyers, especially if they are walking or on a bicycle and aren’t carrying their wallet.

Be Flexible with Prices

Decide which, if any, big-ticket items you will not haggle over, and then be willing to adjust your prices and leave room for some friendly negotiation for everything else. The idea is to get rid of things—not get rich.

Donate the Leftovers

After your sale is over, do not put the leftovers back in your house, garage, or storage. Immediately box or bag them up and drive them to your local Goodwill, Salvation Army, or other donation center. That way, there is no chance of procrastination, second guessing, or keeping things you do not need.

SOURCE: Windermere

W Report March 20, 2024

W Report – March 2024

Local market update.

As spring starts to bloom, the King County real estate market is experiencing fresh momentum. In the face of continued short supply, buyers are getting creative with their offers while ready-to-list sellers find optimism in recent price gains.Find our full market recap here.

Local Market Update March 2024

News + trends.

Neighborhood density plan will increase homes

[THE STATE OF] REAL ESTATE

Neighborhood density proposal would add at least 100K homes in Seattle

Seattle Mayor Bruce Harrell has proposed a growth plan that would make every Seattle neighborhood eligible for more density. New “neighborhood centers” near transit and commercial areas will pave the way for at least 100,000 new homes in the next 20 years.READ MORE

Boeing grows local workforce despite headwinds

LOCAL ECONOMY

Boeing grows its local workforce despite headwinds

Even in the face of recent turbulence, Boeing’s Washington employee headcount nears its pre-pandemic benchmark.

READ MORE

Downtown Bellevue apartment vacancies dip, rents rise

[THE STATE OF] REAL ESTATE

Downtown Bellevue apartment vacancies dip, rents rise

More Amazon employees downtown means walk-to-work addresses are getting hard to find — and afford.

READ MORE

Washington has chance to lead nation in hydrogen economy

LOCAL ECONOMY

Washington positioned to lead nation in hydrogen economy

Green electrolytic hydrogen and renewable fuels will play a vital role in our state’s economy.

READ MORE

Happenings.

Pin-spiration.

Flaunt the fluted look in your furnishings. With delicate vertical grooves in wood, metal or even upholstered fabric, fluted is timeless, elegant and chic. Get inspired at Fluted Furniture.

Fluted Furniture Pinterest Board

Cast your vote.

TRENDY OR TRADITIONAL STAIRCASE? 
Which is your favorite? Click below to vote.
Cast your vote

TRENDY! Take me to the next level.
cast your vote

TRADITIONAL! I’d rather climb a classic.

VOTE NOW

Last month’s poll results: Closed Cabinets: 85%. Open Shelving: 15%.

When you’re ready to talk real estate.

Design March 19, 2024

Creating Space for a Stress-Free Zone in your Home

SOURCE: Windermere

The meaning of home has expanded over the years, adding new activities beyond eating and sleeping. For many this means home has more space to work and do hobbies. But as those things expanded, the feeling of relaxation may have dwindled, and for those struggling with the mental health implications of this, creating a space in your home that is dedicated to reducing stress could be the ticket to achieving a sense of peace and calm. Whether you use that space to meditate, exercise, or read, having a place in your home to focus on your mental health can change the way you show up for yourself and the important people in your life.

Fitness Corner

If exercise is your chosen route to improved mental health, a small home gym could be right for you. How you set up your fitness space will depend on your preferred form of exercise, as well as your budget.

If your routine requires a treadmill or indoor bicycle, make that the focal point of your space. If yoga, Pilates, or barre is more your speed, you’ll need room to unroll a mat and move freely. Weightlifting or body-weight exercises might necessitate more space and equipment but are both feasible even in a corner of your office or a walk-in closet.

Regardless of how you plan to get your sweat on, use nearby wall space for shelving or hooks to store equipment. This could range from light hand weights and exercise bands to jump ropes and yoga mats. If you need more storage, find furniture that serves multiple purposes. For example, a cabinet that stores towels can also double as a surface for a small fan and your water bottle.

For extra motivation to spend time in your exercise area, add a little personalization. Wallpaper or bold paint colors not only add visual interest, but they also create a sense of separation from the rest of the room or area. Soothing art and living plants are particularly apt for spaces dedicated to yoga.

Meditation Space

Meditation is a great way to calm the mind, and you don’t need special equipment or a lot of room to do it. Creating your own meditation space can be simple, quick, and doesn’t require a large investment.

Start by finding a place in your house that is as free from distractions as possible. This could be a corner in your bedroom or a section of your backyard or terrace. Ideally the space would be near a window or natural light source.

Where and how you sit can make or break a meditation session. A chair, meditation cushion, or yoga mat that allows you to sit comfortably for several minutes while keeping you alert will do the trick.

If you plan to listen to guided meditations or music, a small Bluetooth speaker can be a good option if you want to avoid using headphones and will have better sound quality than listening from your phone’s speaker.

Though many people prefer to meditate with their eyes fully closed, visual elements can help set a serene scene. Plants, candles, statues, and art can also add a sense of your personality. If clutter stresses you out, keep your decor clean and minimalist. You can include your other senses in your meditations by adding a water feature and burning incense or essential oils.

Reading Nook

If getting lost in a good book is your favorite way to unwind, a reading nook will quickly become your favorite spot at home.

Whether you’ve got a corner or a closet to dedicate to the space, the key to hours of reading enjoyment is the right seating. It’s hard to beat the traditional wingback or club chair, but smaller spaces might call for more creative ideas. Floor cushions, padded benches, bean bag chairs, and hammocks are all options.

Once you’ve got your sitting area situated, lighting comes next. A location near a window that brings in natural light is ideal, but for those who love to read late into the night or who don’t have a window nearby, standing or table lamps and wall sconces will save you from eye strain.

If you’ve got the space, a side table for cocoa, coffee, or tea is a nice addition. It’s also a great area for that mile-high “to be read” pile book lovers are known for. Even better if it’s got a drawer for bookmarks, reading glasses, pens, and notebooks.

For extra coziness, add a throw blanket or shawl and some cushy pillows.

SOURCE: Windermere

Buying March 5, 2024

To Buy New or Old, That is the Question

SOURCE: Windermere

If you’re shopping for a new home, there are a number of factors you need to consider in order to narrow down your search criteria. Because before you can get too deep into your home search, you need to identify your needs, figure out your wants, and decide if there are any deal breakers that don’t work for you, such as the age, style, and location of your dream house. As you weigh the option between a new build or an older resale, here are six differences to note.

 

The Neighborhood

Surprisingly, one of the biggest factors in choosing a new home isn’t the property itself, but rather the surrounding neighborhood. While new homes occasionally spring up in established communities, most are built in new developments. The settings are quite different, each with their own unique benefits.

Older neighborhoods often feature tree-lined streets; larger property lots; a wide array of architectural styles; easy access to mass transportation, restaurants, and local shops; and more established relationships among neighbors.

New developments are better known for wider streets and quiet cul-de-sacs; controlled development; fewer above ground utilities; more parks; and often newer public facilities (schools, libraries, pools, etc.).

Consider your daily work commute, too. While not always true, older neighborhoods tend to be closer to major employment centers, mass transportation, and multiple car routes (neighborhood arterials, highways, and freeways), and new construction homes are usually found on the outskirts of city limits where there’s more land available for the development. The main exception being new townhouses on lots in the middle of established neighborhoods.

 

Design and Layout

If you like Victorian, Craftsman, or Cape Cod style homes, it used to be that you would have to buy an older home from the appropriate era. But with new-home builders now offering modern takes on those classic designs, that’s no longer the case. There are even modern log homes available.

Have you given much thought to what type of floor plan you want? If you have your heart set on an open-concept layout with an entertainment kitchen, spacious primary suite, and walk-in closets, you’ll likely want to buy a newer home—or plan to do some heavy remodeling of an older home. Unless they’ve already been remodeled, most older homes feature more closed floor plans with structural separation between rooms.

If you have a specific home décor style in mind, you’ll want to take that into consideration, as well. Professional designers say it’s typically best if the style and era of your furnishings match the style and era of your house. But if you are willing to adapt, then the options are wide open.

 

Materials and Craftsmanship

Homes built before material and labor costs spiked in the late 1950s have a reputation for higher-grade lumber and old-world craftsmanship like hardwood floors, old-growth timber supports, ornate siding, artistic molding, etc.

However, newer homes have the benefit of modern materials and more advanced building codes, such as copper or polyurethane plumbing, better insulation, double-pane windows, modern electrical wiring, earthquake/ windstorm supports, and so on.

 

Current Condition

The condition of a home for sale is a top consideration for any buyer, whether you plan to do a little work or not. However, age is a factor here, as well. For example, if the exterior of a newer home needs repainting, it’s a relatively easy task to determine the cost.  But if it’s a home built before the 1970s, you have to also consider the fact that the underlying paint is most likely lead-based, and that the wood siding may have rot or other structural issues that need to be addressed before it can be re-coated.

On the flip side, the mechanicals in older homes (lights, heating systems, sump pump, etc.) tend to be better built and last longer.

Regardless of the age of the home or the apparent condition, it’s important to get a home inspection from a professional.

 

Outdoor Space

One of the great things about older homes is that they usually come with mature trees and bushes already in place. Buyers of new homes may have to wait years for ornamental trees, fruit trees, roses, ferns, and other long-term vegetation to fill in a yard, create shade, provide privacy, and develop into an inviting outdoor space. However, maybe you have the patience and interest in building the yard you want, or you’re one of the many homeowners who prefer the wide-open, low-maintenance benefits of a lightly planted yard.

 

Car Considerations

Like it or not, most of us are dependent on our cars for daily transportation. And here again, you’ll find a big difference between newer and older homes.

Newer homes in developments almost always feature ample off-street parking: usually a two-car garage and a wide driveway. Some new construction even includes electric vehicle charging stations as electric and hybrid cars become more mainstream. An older home, depending on just how old it is, may not offer a garage—and if it does, there’s often only enough space for one small or mid-sized car. For people who don’t want to leave their car on the street, this alone can be a determining factor.

 

Finalizing Your Decision

While the differences between older and newer homes are striking, there’s certainly no right or wrong answer. It is a matter of personal taste, and what is available in your desired area. To quickly determine which direction your taste trends, use the information above to make a list of your most desired features, then categorize those according to the type of house in which they’re most likely to be found. The results can often be telling.

SOURCE: Windermere

Design February 20, 2024

How to Design Small Spaces at Home

SOURCE: Windermere

How to Design Small Spaces at Home

The truth is, the average size of apartments in the U.S. is shrinking, and studio and one-bedroom apartments are becoming more prevalent (rentcafe.com). This means knowing how to design for small spaces has never been more important. Whether you’re not quite ready to purchase a home or you’re looking to downsize, the creative possibilities are endless for maximizing square footage at home without sacrificing comfort or style. Let’s dive into some of the ways you can transform your home by making the most of your space.

Small Space Design Ideas

Multifunctional Furniture

All your essential items have to go somewhere, but how do you find a right place for everything without taking away from the rest of your home? Multifunctional furniture can be a lifeline for finding storage space without cluttering your home. Explore ottomans that have compartments to stow blankets, magazines, and other living room items. Folding desks can also ease the burden of storage without getting messy. Thanks to items like these, you can avoid investing in an outside storage unit just because you have limited square footage at home.

Maximize Vertical Space

Fortunately, there’s more space available to you than the floor surface area of your home. Storage can be arranged vertically with items like hanging shelves and drawers. This can be especially helpful in the kitchen, where getting items up and away from the more cluttered areas within reach will clear counter space and make the space feel more open and inviting. Wall-mounted magnetic strips for knives and hanging racks for pots and pans can clear significant space.

Embrace Minimalism

When you move into a smaller space, you’ll be faced with a question: what do I really need? With only so much room available, this is the perfect opportunity for an exercise in minimalism. Paring down your possessions will reduce clutter and make the smaller spaces in your home feel roomier. Consider purchasing a bed with built-in storage drawers, which can eliminate the need for a bulky dresser in the bedroom. Get creative with floating shelves to lessen the need for large bookshelves and credenzas. Though these are common furnishings, they take up space and tend to dominate smaller rooms.

With a touch of creativity, you can transform your home’s interior while maximizing your square footage, and most importantly, making your home feel more like you.

SOURCE: Windermere

Selling February 6, 2024

What Is Fair Market Value (FMV) in Real Estate?

What Is Fair Market Value (FMV) in Real Estate?

SOURCE: Windermere

You know your home is a valuable asset, but what is it actually worth? One of the most important figures to understand as you get ready to sell your home is Fair Market Value (FMV); it is key to a successful home sale. We’ll break down what Fair Market Value is and why it plays such a crucial role in the home selling process.

What Is Fair Market Value?

Fair Market Value (FMV) is the estimated price a property would sell for between a willing buyer and a willing seller, given that each party knows all the relevant information associated with the property. In other words, it’s the price your home is likely to sell for under the current conditions of your local real estate market.

 

The Important of Fair Market Value

Yes, you can research home prices on your own and get an idea of what your home is worth. However, accurately pricing your home requires a more in-depth approach. Your agent’s Comparative Market Analysis (CMA) will take into account the various factors that influence home prices using comprehensive data available to real estate agents on the Multiple Listing Service (MLS).

So, what’s the point of this detailed analysis? Pricing your home accurately is paramount. If it’s overpriced, you may deter potential buyers and it will lose value over time as it continues to sit on the market. If it’s priced too low, you might leave money on the table. FMV helps you strike the right balance.

You can also use Automated Valuation Models (AVMs) to see what your home could be worth. (That was the last acronym in this post, we promise!) These calculators give you a general idea of your home’s value, but AVMs are not 100% accurate. They’re a great starting point, but again, your agent’s resources will ultimately determine the right price for your home.

 

Fair Market Value sets the stage for smooth negotiations later in the home selling process. With a solid price in place, you’ll get reasonable offers from buyers. You and your agent will discuss whether to accept or counter the buyer’s offer and how to handle their contingencies. Finally, FMV makes the home appraisal process easier. With an accurate valuation in place, you can proceed knowing that the chances of a mismatching appraisal are low.

 

How Is FMV Calculated?

Several factors influence the Fair Market Value of a property. Comparable sales or “comps” play a significant role in determining FMV. Real estate professionals analyze recently sold homes in your area that are similar to yours, providing a benchmark for pricing your property. The property’s condition, its size, and location all factor into the math as well. Appraisers may also use a cost-based approach to determine FMV if they can’t find sufficient comparable homes in your area.

You can get a ballpark estimate of your home’s value by looking at tools online but determining a precise value will require the expertise of your real estate agent. To see what your home is worth, or for answers to all your home selling questions, connect with me today.

SOURCE: Windermere