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W Report – October 2024
Toolbox Essentials for Homeowners
SOURCE: Windermere
For all its perks—stability, tax breaks, building equity—being a homeowner comes with the responsibility of maintaining your home and the occasional repair. Some jobs require a professional, but if you are willing to take on minor repairs or DIY projects, you’ll need the right tools. Whether you’re starting a toolbox from scratch or looking to round out your tool collection, here are the basics every homeowner should have on hand.
Helpful hint: A toolbox filled with all or a few of these items makes a great housewarming, wedding, or graduation present.
Screwdrivers
You don’t need to own a home to know that a screwdriver is a life staple. From replacing batteries in toys to installing shelves on walls, owning a pair of quality screwdrivers—one flathead and one Phillips—is a must. Not many home projects call for extra small screwdrivers but having a set can be handy for fixing eye- and sunglasses.
Hammer
When you think of the word “tool,” a hammer likely comes to mind. Whether that’s because a pounding tool was likely humankind’s first invention or because you need one for nearly any type of handiwork, you’ll be glad you have a traditional claw hammer on hand.
Mallet
Like a hammer but with a rubber or wood surface, a mallet comes in handy when you need to drive wooden dowels or for more delicate projects that require a softer touch. The non-slip surface is also better for holding parts in place or applying pressure than the slippery metal edge of a traditional hammer.
Tape measure
You know the saying, “Measure twice, cut once”? It’s really good advice when it comes to DIY home projects, and a good tape measure makes the measuring part easier. Get one that is at least 25 feet long, with bold, easy-to-read numbers on both sides and that has a locking mechanism.
Utility knife
If all you do with a utility knife is open boxes, you’ll still use it quite frequently (given how often we all get deliveries of home goods these days). But there are tons of other uses for a very sharp item to cut with, including scoring wood or hanging wallpaper.
Wrench
There are a few ways to attach things to each other. Nails and screws have their place, which is why you need a hammer and screwdrivers. But nuts and bolts hold a lot of things together too, and for those you’ll need a wrench. Buying an adjustable one is not only more cost effective but it’ll save space in your toolbox.
Pliers
When you need leverage to tighten or loosen plumbing pipes or bolts, pliers can’t be beat. They can also help you hold things in place as well as bend or shape wire.
Level
When hanging pictures, mounting shelves, or needing to drill multiple holes in a line, you’ll need a level to keep you straight. And, yes, many of us have a level app on our mobile devices, but phones can be clunky and might not be reliable if you have a hard-shell case on your phone. A sturdy level isn’t expensive and can last a lifetime.
Wire cutters
How many of us have dulled a perfectly fine pair of kitchen shears cutting through cables or wires one too many times? (Just us?) Using high-quality wire cutters will not only save your scissors, but it will also ensure a cleaner cut through your wire or cable.
Cordless drill
Though screwdrivers are good for small jobs, a drill is better for screwing into harder surfaces or when the job calls for a lot of holes. Going cordless frees you from the need for extension cords, but spring for the extra battery pack so you always have one fully charged when you need it.
Safety gear
Before you start any home project, make sure you have the right protection for your eyes, ears, hands, and lungs. Safety goggles, ear plugs, heavy-duty gloves, and respirator masks will keep you safe while you’re DIYing.
Nice to haves
Though these items might not be considered essential, you never know when you might need a headlamp or flashlight, hand saw, stud finder, duct tape, or wood glue. You won’t regret keeping them on hand.
SOURCE: Windermere
W Report – September 2024
Local market update.
As we bid farewell to summer and welcome fall, we find a King County real estate market that’s relatively balanced. Recent mortgage rate drops — and hopes for more in the coming months — could present opportunities for buyers and sellers.
News + trends.
[THE STATE OF] REAL ESTATE
How shifting age demographics are impacting the housing market
With a growing senior population and changes in the way younger households are forming, demographic and lifestyle shifts will influence the demand for different housing segments in the years ahead.
LOCAL ECONOMY
Reviving downtown Seattle: A report card
A year into its launch, how successful has Seattle’s Downtown Activation Plan been, and what’s still needed?
LOCAL ECONOMY
Seattle-Bellevue ranks as 4th hottest hiring market
With average annual pay growth of 6.5%, our area is at the forefront of U.S. hiring in wages and other metrics.
[THE STATE OF] REAL ESTATE
$29M awarded to tackle wealth gaps, boost homeownership
Washington state issues millions to support communities unfairly impacted by past state and federal policies.
Happenings.
September 24-29
Funny Girl at Paramount TheatreOctober 4-6
Oktoberfest NorthwestNow through October 19
MEXAM NW FestivalOctober 5
Hans Zimmer at Climate Pledge ArenaOctober 25-26
Rocky Horror Picture Show at The Fifth Avenue Theatre
Pin-spiration.
Transform your interior spaces into cozy gathering places with fabulous fall finds. Add warm palettes, rustic accents, festive pumpkins, relaxing candles and plaid patterns to your Fall Interiors.
My featured sales
Sold for $919,000
SOUTH LAKE UNION
32912 SE 121st St, Issaquah
2 Beds / 1.75 Bath / 1,286 SF
Cast your vote.
WATER FEATURE VS. OUTDOOR SCULPTURE
Which do you prefer? Click below to vote.
Water Feature! I crave a natural vibe.
Outdoor Sculpture! I love the creativity.
VOTE NOW
Last month’s poll results: Swimming Pool: 56%. Sport Court: 44%.
When you’re ready to talk real estate.
The Pitfalls of Overpricing Your Home
SOURCE: Windermere
When a homeowner prepares to put their house up for sale, two things are usually top of mind: how long will it take to sell and how much can we get for it. During a seller’s market, when stories of bidding wars and cash offers abound, it’s can be tempting to put as high a price tag on your home as possible. But even when the market favors sellers, overpricing your home can jeopardize your efforts to sell quickly and get top dollar.
Missing Your Market
The vast majority of homebuyers start their search online, and the first criteria they often enter is the price range. If your home is above the high point of their range, buyers in your target market will never even see your listing—it simply won’t show up in their searches. In addition, it’s human nature to go after the top item in a collection. Buyers want the most house they can get within their budget. This means you want to be the best house compared to those in your price range, rather than among the bottom compared to those in a more expensive bracket.
Key takeaway: You want to shine against your competition, not pale by comparison
Playing the Numbers
Selling a home is a numbers game: the more potential buyers, the greater chance of an offer. Overpriced homes get fewer showings, both in person and online. Your agent will tell you that showings are critical to capturing the interest of buyers, 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 you and your agent feeling frustrated.
Key takeaway: More showings = more offers.
Going Stale
It’s also human nature to be drawn to what’s new, the bright, shiny object, as the saying goes. 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. And at a certain point, you may be forced to lower the price. Many buyers and their agents will assume the reason the house has been on the market so long, and why you had to lower the price, is because there is something wrong with it. Once the price drops begin, they can continue, which creates the risk of selling your home for less than what it is worth.
In addition, 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.
Key takeaway: Be the bright, shiny object.
Losing at the Last Minute
Let’s say you do find a buyer at the overpriced cost. During closing, the lender will order an appraisal of your home. If the appraiser finds that the market value of the home is less than the selling price, they could deny financing. If that happens and you are forced to put the house back on the market, buyers’ agents will be able to see that it’s a relisting, could assume something is wrong with the house and share those concerns with their client.
Key takeaway: Be realistic about value.
SOURCE: Windermere
So You Bought an Investment Property, Now What?
SOURCE: Windermere
Congratulations on your new investment property! Now comes the exciting part: Turning your property into a revenue-generating machine. While it’s not exactly easy, your goals are within reach if you take steps to organize, plan, and build a solid foundation. Here are some ways to help maximize your property’s potential in the short and long term while avoiding future headaches.
Ensure your property is up to code
At a minimum, your new investment property should be safe and livable. This isn’t just the right thing to do, it will also shield you from liability and help attract better tenants. Start by repairing the necessities using your home inspection report as your guide. Prioritize issues that could lead to bigger problems down the road, such as a leaky roof or holes in the closet that could lead to infestations. Ensure that all appliances are in top working condition, including the furnace or other heating system, and that the plumbing and electrical are up to code.
Also make sure the property complies with all local and state laws regarding the presence of mold, lead paint, asbestos, and other potentially hazardous substances.
Choose a property management team
While you can manage the property yourself, hiring a good property management team will reduce stress and likely save money over time. Property managers handle tasks such as rent collection, maintenance, tenant screening, and marketing your property. They also oversee complaints, so you don’t have to deal with upset or difficult tenants.
To find a reliable property management team, start by asking for recommendations from friends, family, or other real estate investors. Also check reviews on specialized property review sites. When interviewing potential managers, ensure they have experience with properties like yours and assess their responsiveness and communication skills, as you need a manager who keeps you informed and addresses issues promptly.
If the management fee is too steep and you decide to go it alone, curate a list of reliable plumbers, electricians, appliance repair companies, and handymen to handle maintenance requests. Also thoroughly screen tenants to ensure they’re reliable and will take good care of your property.
Enhance the property appeal
Before you rent the property, consider cost-effective renovations to enhance its appeal and rental value without breaking the bank. For the kitchen, consider refacing or repainting cabinets, upgrading to energy-efficient appliances, and installing modern faucets and light fixtures. Bathroom options include updating faucets, showerheads, and flooring. Other improvements that may attract higher-paying tenants include refinishing the floors, upgrading to energy-efficient doors and windows, and hiring a gardener to improve the landscaping.
Consider different rental strategies
Regular maintenance is crucial to maintain the property’s value and prevent costly repairs. Coordinate with your tenants to schedule periodic maintenance checks, and create a list of maintenance tasks to address when tenants are on vacation or between renters.
Property owners have traditionally concentrated on long-term rentals. However, the rise of short-term rental platforms like Airbnb and VRBO have shifted the landscape for some. Long-term rentals are idea for owners seeking a stable income, as turnover is typically low and monthly revenue is predictable. On the other hand, short-term rentals can command higher nightly rates, but they usually involve more expensive and time-consuming management and upkeep. Plus, reservations can be unpredictable, particularly in areas with seasonal fluctuations.
Set competitive rental rates
Property management teams generally recommend an optimal rent based on a comprehensive market analysis, helping you achieve the highest return on your investment. If you’re managing the property yourself, you can perform your own analysis by researching comparable properties (“comps”) on websites like Craigslist or Trulia. Consider factors such as your property’s location compared to the comps, and whether your property includes coveted features like air conditioning, a washer/dryer, or ample outdoor space. Proximity to good schools and local amenities such as restaurants are also valued by renters.
Keep in mind that for your investment to be profitable, your rental income must cover expenses such as mortgage payments, taxes, management fees, insurance, and ongoing maintenance costs. Make sure to periodically review and adjust the rates to remain competitive and maximize your income.
Market your property effectively
As with rental rates, your property management team typically lists and markets the property, so you’re off the hook here. However, if you’re managing solo, you need to think like a product marketer, using tools like high-quality photos, virtual tours, and compelling descriptions to make your property stand out. First impressions matter, so lead with a well-lit, inviting photo. Bright images convey a clean, move-in-ready home, while dark photos can scare tenants away by making the property appear dirty and uninviting. Consider hiring a professional photographer to ensure the lighting and framing are perfect in every room.
Review other listings to gather inspiration for your own. Highlight unique selling points over standard features, especially if the latter are evident in the photos. Think about what would attract you as a renter. Is it simply a garage with two storage cabinets? Or is it a spacious garage with a shop-ready layout, including two 220V circuits, two sturdy workbenches, and built-in storage?
Master the legal and financial details
Owning an investment property comes with legal rights and responsibilities for both you and your tenants. It’s crucial to familiarize yourself with local rental laws, zoning regulations, and tenant rights to prevent legal liabilities and handle any issues that may arise effectively. Additionally, obtaining landlord insurance is essential to protect against potential property damage and liability.
And remember, owning an investment property lets you take advantage of tax deductions for mortgage interest, property taxes, repairs, and depreciation. Keep detailed records of all income and expenses to ensure you maximize these deductions and continue to earn a profit.
SOURCE: Windermere
W Report – July 2024
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The Life Expectancy of Your Home
SOURCE: Windermere
Every component of your home has a lifespan. Common questions asked by homeowners include when to replace the flooring or how long to expect their siding to last. This information can help when budgeting for improvements or deciding between repairing and replacing when the time comes. We’re all familiar with the cliché: They just don’t build things like they used to. And while this may be true when it comes to brick siding or slate roofing, lifespans of other household components have increased in recent years. Here are the life expectancies of the most common household items (courtesy of NAHB):
Appliances:
Among major appliances, gas ranges have a longer life expectancy than things like dishwashers and microwaves.
Kitchen & Bath:
When choosing your countertops, factor in the life expectancies of different materials.
Flooring:
If you’re looking for longevity, wood floors are the way to go. Certain rooms in your home will be better suited for carpeting, but you can expect they’ll need replacing within a decade.
Siding & Roofing:
When choosing roofing and siding for your home, climate and maintenance level factor into the life expectancy of the material. However, brick siding and slate roofing are known to be dependable for decades.
Are extended warranties warranted?
Extended warranties, also known as service contracts or service agreements, are sold for all types of household items from appliances to electronics. They cover service calls and repairs for a specified time beyond the manufacturer’s standard warranty.
You will have to consider whether the cost is worth it to you. For some, it brings a much-needed peace of mind when making such a large purchase. Also consider if the cost outweighs the value of the item. In some cases it may be less expensive to replace a broken appliance than to pay for insurance or a warranty.
SOURCE: Windermere
Staging for Home Selling Success
SOURCE: Windermere
The benefits of staging a home are well documented. Numerous studies show that staging helps sell a home faster and for a higher price. Studies also indicate that buyers decide if they’re interested within the first 30 seconds of entering a home. Not only does home staging help to remove potential red flags that can turn buyers off, it also helps them imagine living there. Homes that are professionally staged look more “move-in ready,” which makes them far more appealing to potential buyers.
Ready to get started?
If you’re ready to put your house on the market and want to try your hand at staging, here are some concepts to keep in mind:
Aim for Cohesion
Make the inside match the outside. For example, if the exterior architectural style of your house is mid-century modern, the interior should be primarily outfitted with mid-century modern style furniture. Prospective buyers who like the exterior style of your home are going to expect something similar when they step inside. If the two styles don’t agree or at least complement each other, there is likely going to be an immediate disconnect for the buyer.
There is always room for flexibility. Not all your furnishings need to match, and even the primary furnishings do not need to be an exact match to the architectural style of your home. To create cohesion, you simply need to reflect the overall look-and-feel of the exterior.
Neutralize and Brighten
Every home is a personal expression of its owner. But when you become a seller, you’ll want to look for ways to make your home appeal to your target market. Keep in mind, your target market is made up of the group of people most likely to be interested in a home like yours—which is something your agent can help you determine.
A good strategy to staging your home is to “neutralize” the design of your interior. A truly neutral interior design allows people to easily imagine their own belongings in the space—and to envision how some simple changes would make it uniquely their own.
Paint over bold wall colors with something more neutral, like a light beige, warm gray, or soft brown. The old advice used to be, “paint everything white,” but often that creates too sterile of an environment, while dark colors can make a room look small, even a bit dirty. Muted tones and soft colors work best. Likewise, consider removing wallpaper if it’s a bold or busy design.
Lighting is key. Replace heavy, dark curtains with neutral-colored shear versions; this will soften the hard edges around windows while letting in lots of natural light. Turn on lamps, and if necessary, install lighting fixtures to brighten any dark spaces—especially the entry area.
Clean and De-Clutter
To further inspire buyers to imagine the space as their own, make sure every room—including closets and the garage—is clean and clutter-free. You may even want to hire professionals to give your home a thorough deep clean. Remember, the kitchen and bathrooms are by far the two most important rooms in a house when selling, so ongoing maintenance is important.
Family photos, personal memorabilia, and collectibles should be removed from the home for your safety. Closets, shelves, and other storage areas should be mostly empty. Work benches should be free of tools and projects. Clear the kitchen counters, store non-necessary cookware, and remove magnets from the refrigerator door.
The same goes for furniture. If removing a chair, a lamp, a table, or other furnishings will make a particular space look larger or more inviting, then do it.
You don’t want your home to appear cold, un-loved, or unlived-in, but you do want to remove distractions and provide prospective buyers with a blank canvas of sorts. Plus, de-cluttering your home now will make it that much easier to pack when it comes time to move.
Where to Start
If you’re concerned about the additional cost of staging, rest assured. Even a relatively small investment of time and money can reap big returns. There are even things you can do yourself for little to no cost. Contact your agent for advice on how to stage your home most effectively or for a recommendation on a professional stager. While the simple interior design techniques outlined above may seem more like common sense than marketing magic, you’d be surprised at how many homeowners routinely overlook them. And the results are clear: staging your house to make it more appealing to buyers is often all it takes to speed the sale and boost the sale price.
SOURCE: Windermere
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
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
