Holiday Considerations For Real Estate

The holidays are a very special time, and it is definitely a time for entertaining and showing off your home decorating skills.  While it is not the busiest time of year for Real Estate, rest assured there are many serious buyers out there looking for their next home.  

Sellers: Cozy Up The Place

For sellers, many say that homes truly look their best during the holidays, so be sure to create a warm and inviting space to awe those interested buyers.  Try to go with a broader winter theme that can speak to a large audience.  Use a plug-in candle that offers a holiday aroma, offer delicious treats, and cozy up the place by playing some classical music.  You want buyers to feel relaxed, and to spend as much time as possible in your luscious space.  

Buyers: Dream Up Your Entertaining Space

For buyers, now is the time to ask yourself what it is that you are truly looking for in your new home.  If you are spending time seeking your new home during this holiday season, you must be very serious.  And if that is the case, do not skimp on your holiday wishes.  Do you entertain during the holidays, or at any other times during the year?  If you are someone who enjoys having company around, what kind of space do you need?  Maybe you would like a big kitchen island where people can connect and enjoy appetizers while you are making the final meal.  Or perhaps, you like to offer a variety of intimate options for your guests to choose from, while adding surround sound to set the tone.  For you introverts, a comfy chair by the fireplace may be all that you seek during this quiet time of year.

Lastly, I have found that both buyers and sellers alike are exceptionally kind and friendly to work with during the holiday season, so do not hesitate to buy or sell during this very special time of year.  It could, in fact, be your best Real Estate experience yet!  

Happy Holidays!

Real Estate For Commuters

Whenever I meet new clients, I always ask them what is most important to them; and the answer is often "commute times."  Consumers in the Puget Sound region are now looking at how long they are spending in their cars before they even consider what kind of house they want.  I think it is fair to say we are all feeling the massive growth spurt that is happening here.  

Many of my clients for example who work for a certain tech giant on the East side, will only live in two cities surrounding this company, and some will only live in the city of Seattle opting for public transportation.  While everyone can understand wanting a short commute, the question I like to ask is "How does a long commute impact your quality of life,"  and similarly, "how will homeownership impact your quality of life?"

In an ideal world your dream home and a short commute would be easy to attain simultaneously, but in reality these two things do not always go together.  For example, some people want a large yard, or to live close to the mountains, but they work in an urban environment.  A short commute for them may mean giving up their dream home.  

If you do choose your dream home over commute time, it would be wise to take advantage of this time.  Call friends and family to catch up, listen to books on tape, or you can even challenge yourself and learn a new language!  

Real estate considerations for those faced with a long commute will depend on their desires.  For example, you workout enthusiasts, you could consider purchasing a property with room for a home gym, or in close proximity to a local fitness center, or outdoor exercise opportunities.  

Personally, when getting to know my clients, I like to understand the whole picture of their lifestyle. What is important to you, both in your real estate needs, and in your daily life?

The finest compliment I may ever receive is a referral from friends and clients.  Thank you!

Seattle Fall Adventures

Crisp cold air, beautiful leaves falling to the ground, and spooky Halloween are some of my favorite reminders of this wonderful season.  People always ask me how to "get over" the shorter PNW days, and I always say to embrace the season, and to get outside.  

Lately, I have been spending a lot of time outdoors, and feel inspired to offer some of my favorite Seattle Fall adventures. 

1.  Apple Picking

Apples are in season right now, and Washington State is known to have the most delicious apples around.  Apple picking in this area happens between September through the end of October, and many orchards offer other fun and engaging activities for children.  

It is highly recommended to call beforehand to make sure the orchard you want to visit has U-pick options available on that day.  Orchards operate differently, and they do not always offer self pick on everyday of the week.  I also recommend packing boots as the orchards can be a little muddy.  Lastly, while many farmers in the area have not paid the expensive cost of obtaining organic certifications, many of them do have organic growing practices.  When you call ahead, be sure to ask them about this.  

Some of my favorites: 
Bellwood Acres   
The Farm
Lattin's Cider

2.  Pick Your Own Pumpkin

Many pumpkin picking places offer warm cider, corn mazes, petting zoos, and much more.  Don't hesitate to throw on your warm fall layers, get in the car and adventure out to whatever destination is calling you.  

If you are planning on going to one of these farms, I highly recommend calling ahead to see if they are taking reservations as they are very popular.  Many of them also have tickets they sell online so you can purchase in advance.  

Some of my favorites:  
Fox Hollow Farm
Remlinger Farms
Craven Farm

3.  Wine Tasting

There is nothing like an autumn stroll for wine lovers, and Woodinville has some of the best tasting rooms around.  You can have your wine tour organized by a company, where you have your own personal driver who makes recommendations based on what you enjoy.  Or you can drive to Woodinville yourself and explore the different wineries on your own.  

Some of my favorites:  
JM Cellars
Chateau Ste. Michelle
Darby Winery


The finest compliment I may ever receive is a referral from friends and clients.  Thank you!

3 Tips for a Higher Home Appraisal

It may seem that homebuyers and sellers do not agree on much, but they share one important concern: that the transaction is successful. This has never been more evident than during the appraisal process. It's only natural, since the results of the appraisal can send the deal spiraling out of control. 

Appraisers take into account many factors when determining the worth of a home. While some of these, such as location, cannot be helped, there are things a homeowner can do to ensure that the home is appraised for maximum value. 

1. Information is King 

Appraisers do not spend a lot of time in the home. In fact, Brian Coester, chief executive of appraisal firm CoesterVMS, tells CNBC that the interior inspection typically takes 30 minutes or less. 

"After inspecting thousands of homes, it does become quite easy to quickly assess the amenities in a home," reiterates Ryan Lundquist on Sacramento Appraisal Blog. There isn't much time to make a good first impression, so be sure to line up those ducks in advance of the appraiser's visit. The first one should be a packet of information that your broker can hand to the appraiser as he or she speeds out the door after the inspection. This packet should contain not only the basics about your home but anything that will help back up the purchase and sales agreement. 

Have your broker include a fact sheet about the home with the address, the year the home was built, the square footage, number of bedrooms and bathrooms, and the size of the lot. Also include a listing of recent sales in the area, especially if you know of any for-sale-by-owner homes that have sold or homes that sold for less than they should have for any reason. For example, a home may have been sold to a relative, or the owners may have sold quickly to take a job out of town. Yes, the appraiser has access to recent home sales, but there's always a chance he or she may miss something. 

Create a list of any improvements you've made to the home and give them to your broker to share with the appraiser. List them by date and include contact information for the contractor who did the work. 

2. If It's Broken, Fix It 

The appraiser will assign the home with what is known in the business as an "effective age." 

It's largely based on the condition of the home and how well it has been maintained. This age may be older or younger than its actual age. "Say you have a cracked window, thread-bare carpet, some tiles falling off the shower surround, vinyl torn in the laundry room, and the dog ate the corner of the fireplace hearth, these items could still add up to an overall average condition rating as the home is still habitable, however your effective age will be higher resulting in comparables being utilized which will have the same effective age and resulting lower value," Doreen Zimmerman, an appraiser in Paradise, California, tells the Wall Street Journal. 

Fix anything that will age the home in the eyes of the appraiser. 

3. Give the Home a Quick Cleaning 

Most appraisers will tell you that it does not matter if your home is clean or dirty - it has no bearing on its value. I, on the other hand, know how illusions can sell, and if a clean house gives the illusion that the home has been well-maintained, what harm can it do to clean it before the appraiser's arrival? I don't know about you, but before I trade in a car at the dealership, I give it a good cleaning. 

"Things like overgrown landscaping, soiled carpeting, marks on walls - those do affect value and are part of the property's overall condition rating," Dean Zibas, of Zibas Appraisal in San Clemente, California, tells the Wall Street Journal. 

While some things impact a home's value more than others, the bottom line is that the process can vary by appraiser. Anything you can do in the three areas listed above has the potential to streamline the appraisal process and increase the value of your home. Plus, going through these steps prior to listing your home will only help increase the number of potential buyers, and ultimately, selling your home at maximum value is what it's all about.

Scope It Out

Why You Should Get a Sewer Scope

Sometimes the most costly repairs in a home are the hidden problems you cannot see, and a broken sewer line can cost you anywhere from $5,000 - $25,000.  Experienced home inspectors will recommend that any house hooked up to city sewer that is forty years or older, should have a professional with a camera scope to take a detailed look.  

When purchasing a home, keep in mind that you are responsible for the sewer line that runs from your house to where it hooks into the street.  The city is responsible for the rest.  

What Can Happen?

Roots can make their way into the pipes and cause significant of damage, old materials such as cast iron simply breakdown over time, pipes can be installed incorrectly and sediment can build up, or it could be something simple as a truck driving over the line and crushing it.  All of these are unintentional hazards that can happen overtime.  

What Does This Mean?

Simply stated, the cost is roughly $250 for this peace of mind, and it takes roughly a half an hour to complete the inspection.  If there is a problem it is time to negotiate with the seller to either have them fix it, or maybe split the cost of repair.  I recommend getting the work done before you move in as there could be unexpected costs along the way.  

Fixing a sewer line can be the single most expensive thing you do on your house, so I highly recommend this (especially in the cities of Seattle and Tacoma).  

Top 4 Deal Killers for Homebuyers

Falling in love is exhilarating. It can also be a bit scary, especially when a home has captured your heart. What if something goes wrong and you end up not spending the rest of your life with this stack of brick and mortar you're lusting after? 

No matter how careful you are, some deal killers are unavoidable. Others, however, are preventable, so pay heed if you hope to keep your deal alive. 

1. Don't Mess with Your Mortgage Pre Approval 
A common reason for a real estate deal to fall apart is that many homebuyers don't fully understand the mortgage process. Sure, you may get a loan preapproval, but don't think for one minute that this guarantees you will get the loan. It doesn't. 

Here's what happens after you receive your preapproval letter and decide to move forward with the purchase. The lender will start your file, give you a list of paperwork required, order an appraisal and credit reports, verify your employment and income, and more. 

The file is then sent to the processor who will review all of your information as well as the appraisal. He or she will then put together a package of all pertinent information to be sent to the underwriter. 

The underwriter is the person who ultimately determines whether or not you are an acceptable credit risk. He or she will assess your ability to repay the loan, your credit, and the collateral used to secure the mortgage - in this case the collateral is the home. Then, just before funding the loan, the underwriter will perform what is known as a "soft pull" of your credit information to see if anything has changed. 

This is the point where many borrowers run afoul. If you hope to keep your purchase alive, don't do anything - from application to closing - that might change your financial picture and sabotage your final approval. This means no shopping on credit for appliances, furniture or anything else. Don't switch jobs, fall behind on your bills, co-sign a loan for anyone, or in any way reduce the income stated on your application. 

2. Read Homeowners Association Documents Carefully 
When you purchase a home in a managed community governed by a homeowners association (HOA), you'll be given a mountain of paperwork to read and approve. Because there may be deal killers included in the fine print, it's important to get to this task immediately upon receipt of the documents. 

Look for any information about liens against the property; current litigation against the HOA, the builder, or the developer; and any red flags in the HOA budget. Since these documents aren't easy to read and understand, it is worth the money you'll spend to have your attorney look them over and advise you of any potential deal killers lurking within. 

While the aforementioned HOA problems could potentially derail the deal, it's better to have it happen upfront rather than when you're further along in the process. 

3. Home Inspection Problems 
All homes - even newly constructed ones - may have problems. Going into the process not fully understanding this can set you up for a failed real estate deal. Sure, you ideally want to find a home that was owned by Mr. or Mrs. Clean who conscientiously took care of it during their entire ownership, but those are few and far between, and seeking them out is unrealistic. 

Set your sites on finding a home that has small, easy-to-fix problems, and don't freak out if some are worse than others. In other words, when considering making an offer, laugh at the loose doorknob but negotiate when it comes to water damage or worse. 

The nitpicky homebuyer, who plans on nickel and diming the homeowner into replacing missing switch plates and dripping faucets, is the picture of a deal-breaker-in-the-making. Sure, in a buyer's market you may get away with minor demands. In a seller's market, however, there is always a cleaner offer right behind yours. 

4. Budgeting Blunders 
The real estate industry does a bang-up job of reminding homebuyers that they'll need a down payment - typically from 3 percent to 20 percent of the total loan amount - when they purchase a home. What they often fail to inform real estate consumers about are the loan's closing costs - the money you will be required to pay before the house is yours. This is most likely because closing costs are a little harder to pin down. They vary wildly and depend on the type of loan, the amount of the down payment, and a host of other factors. 

Unfortunately, this lack of information frequently causes real estate deals to disintegrate. To avoid this particular problem, pay attention to all communications from your lender. 

First, you will receive a form called a Loan Estimate. Look this over carefully to ensure that everything your lender agreed to is included. Pay close attention to the "Calculating Cash to Close" section, which concludes with an estimated cost to close the loan. Remember, this is an estimate and the amount may go higher or lower in the end. Speak with the lender if you find any problems here, especially if it will be impossible for you to come up with this money. 

Just before closing you will receive the "Closing Disclosure," which is quite similar to the estimate, but these figures are final. Again, review the "Cash to Close" figure. 

By and large, real estate deals conclude successfully. Typically, it all comes down to the experience of your agent. Choose wisely and you'll avoid the common pitfalls that can derail transactions. For a smooth, low-stress real estate transaction, slow down, keep your expectations realistic and heed the advice of your real estate agent or attorney.

The finest compliment I may ever receive is a referral from friends and clients.  Thank you!

Bidding Wars - How To Prepare

Seattle Places #2 For Bidding Wars

The Seattle Times just released an article placing the Puget Sound Region second in the nation for the highest rate of bidding wars.  This is second only to the Bay Area, beating out both Orange County and L.A.  

Which begs the question of how does one compete and be successful in this market?  

1.  Organize Your Team

Have your broker, lender, home inspector (including sewer scope, septic systems, and wells) all lined up and ready to go.  You will want to get a full approval on your loan, which is much stronger than a pre approval. Additionally, pre inspections have become the norm in this market, so be prepared to have this done quickly.  I can provide you with the names of reputable lenders, along with home inspectors who will and can go to any house the next day.

2.  Hire a Local Lender

Do not work with banks such as Bank of America, or Wells Fargo for your mortgage.  They are great at your typical banking, but when it comes to underwriting mortgages, their reputation is horrible amongst brokers, because they do not tend to know the local market and the pressing needs during intense bidding wars.  Hire a local reputable lender who can close your loan in 30-days.  If your offer is in line with another offer with the exact same price and terms, a local lender can make all of the difference.  

3.  Be Fast

I cannot express enough how important it is to hire a broker who is "on it," and who can move quickly for you.  You will need an experienced broker who knows how to win in this market.  Also, if you see a house that you like, and you want to write an offer before the "review date," do not hesitate to ask your experienced REALTOR® to find out if the seller would be willing to look at offers before the stated review date.     

4.  Waive Contingencies

Doing as much homework as you can upfront will help you feel confident in waiving certain contingencies.  Waiving inspection once you have pre inspected, and waiving the neighborhood review period are a couple of examples.  There are many more contingencies, and every offer is different so you need to decide what is "worth" it.  Some contingencies are backdoor ways out of the contract, which listing agents know about, and so make sure your broker knows about these.  

Multiple offers occur 75% of the time in real estate transactions in the Puget Sound Region, so educate yourself, read as much as possible and ask a lot of questions.  

Seller's Market Leading To Rent Backs

Rent Backs: What Are They?

There is no question that the Real Estate market is booming this Spring.  Along with a slow, but truly increasing inventory, are the increasing demands of some sellers.  

If you took a dartboard and mapped out the reasons why we have not had a decent amount of inventory lately in the Puget Sound region, the fact that sellers have no idea where they would move to after selling would be smack in the middle of the board.  I have clients who would love to upgrade, or even downsize, but when they start their search, it all feels very daunting. 

Knowing buyers are at their mercy, sellers have been requesting that buyers close in thirty days, and then rent back the house to the seller.  Keep in mind that this does not happen with all homes, but we are starting to see it happen more often this Spring.  The time frame can be anywhere from one month to six months for the rent back. 

What does this mean for buyers?  If you agree to rent back, you need to realize that you will become a landlord to the sellers, and yes, there are certain risks.  We have forms that can be filed to keep things clean and professional in terms of the Real Estate transaction, and most of the time, things do work out.  But what about those risks?  If the seller decides to not vacate the property, or if they leave the house in poor condition after turning it over to you at the end of the rent back.  

What can you do?  Make sure that every detail of the rent back is in writing (including having a good lease agreement).  Take a security deposit, and ask that the seller pay your mortgage for rent.  We are seeing some buyers allowing sellers to live in the home rent-free, but I would advise against this.  Even in this seller's market, it is never a good idea to allow the other side to have control of the steering wheel for the entire time.  

Words of advice...  Hire an excellent buyer's agent, and proceed with caution.

Seattle Spring Adventures

With the unusual nice weather we are having this Spring, I have been spending a lot of time outside, and feel inspired to offer some of my favorite Seattle Spring time adventures.

1.  Skagit Tulip Festival

The days are longer and brighter, and with the darker skies are almost behind us I find myself appreciating all of the colors this season has to offer.  

The Skagit Tulip Festival is happening right now starting April 1st - April 30th. Pricing varies based on which gardens you choose, and parking tends to be free. Weekends are very crowded, so the best time to go is during the week.  

Here you go:  Skagit Tulip Festival

2.  Farmers Markets

What a fantastic way to eat local fresh food, and to support local businesses.  Farmers markets in the Seattle area tend to run anywhere between May through September.  Food education is a big thing in Seattle, and buying from a local farmer is a great way to teach yourself, and your kids about where our food comes from.  

Here you go:  Farmers Markets

3.  Pacific Science Center - Lego Exhibit

Last but not least, The Art Of The Brick exhibit coming this May to the Pacific Science Center.  For all of my lego geeks, this one is for you!  Pricing varies amongst members and nonmembers, so definitely check out whether it is worth it or not to become a member.  

Here you go:  Lego Exhibit

The finest compliment I may ever receive is a referral from friends and clients.  Thank you!

Spring Forward - 3 Tips To Refresh Your Home

We are approaching that time where we want to shake off the winter dust. It is very exciting that Spring is just around the corner. Cleaning your house for the Spring will help you feel organized, and accomplished.  It's no surprise Spring time becomes a busy Real Estate season.

Here are three great tips!

Everything Has A Home

Go through your closets and dressers to see if there are any clothes you are ready to donate.  Rule of thumb is you haven't worn something in six months to a year (depending on what it is), you probably don't love it.  Ask yourself if it is something you would buy today.  Maybe is not a yes!  

Go through all of the bathroom drawers, and pull everything out from under the sink.  Evaluate whether or not you want to throw things away, and have storage containers for the things you are going to use or need down the road.  

Freshen Up

Take all of your sheets, pillow covers, duvet covers and comforters, and wash everything in hot water.  Open up all of the windows and let in fresh air.  During this time it would be a good idea to have your carpets cleaned professionally. 

Don't forget about vertical spaces as well.  Use a mild detergent and wash all of the soot and dirt off of the walls, and dust any wood that is in sight.  Follow with a shine by drying the walls and all of your woodwork.  

Clean Your Appliances

The first step is to run a cycle with one cup of vinegar in a dishwasher.  Then sprinkle a bit of baking soda on the bottom of the washer and run it again (short cycles are fine here).  The vinegar and baking soda combined will clean out any food particles and leave it smelling fresh and clean.

Cleaning the coils under or behind your refrigerator is important because they can become clogged and overheat, eventually causing your refrigerator to stop working.  This is especially important if you have pets.

Be sure to check your manual on how to best clean the inside and outside of all of your appliances.  

If you are preparing your home to sell, please do not hesitate to call me!  I have many more tips to offer.  

"The finest compliment I may ever receive is a referral from friends and clients."  Thank you!

Low Inventory Causes Sellers To Pause

Low Supply Causes Sellers To Pause

Lately, it seems as if homeowners have gone on strike.  We currently have the lowest inventory since the last boom, which is just shy of a decade.  It is safe to say, the market is back!  With people moving to the Pacific Northwest from all over the world, I have no doubt in my mind that we will be the next Bay Area.  Why is this happening, and what will it take to bring more houses on the market for our high demand market?  

It is a vicious cycle of sellers wanting to pull the trigger, but having no idea where they will go.  I'm going to address how you can sell your home successfully without worrying where you are going next.  My first advice is to take it one step at a time, and do not jump ahead.  

1.  Negotiate a Longer Closing Time

For starters, you can take advantage of being in the driver's seat because most banks give buyers sixty days to move into their new home.  You can also ask your Realtor to extend the closing for two months.  This will give you time to find another house, and if you do not find one during that timeframe, it is best to have a backup plan where you would stay in temporary housing. It is essential to always have a backup plan, and your Real Estate Broker should be working with you on different strategies.   

2.  Equity Line of Credit

If you want to find your next home first before you sell your current house, you could talk to your lender about taking out an equity line of credit for your down payment.  Once this is secured, you can take your time finding a house, knowing your current house will sell quickly.  The caveat is that you must take out the equity line before you put your house up for sale as lenders will not give you a loan if you are trying to sell your house.  

3.  Use One Realtor

It is best practices to use one Real Estate Broker to sell your home, and to purchase your next home.  When you use one broker you are streamlining the communication process, and overall understanding of your personal goals, timelines, and deadlines.  Having to communicate all of this twice is simply adding more stress to an already very stressful process.  Bottomline, hire someone who is truly excellent, and more importantly someone who is emotionally trustworthy and who will be professional throughout your transaction.  

Having a competent, and reliable team is key!  

What Will It Take To Change?

The housing market tends to cycle between shortage and surplus.  Therefore, factors that impact supply and demand are interest rates, the economy, and consumer confidence.  When interest rates go up, buyers pull back, and ultimately confidence can go down.  At this point it will take interest rates to increase, and the economy to slow down in order for this market to shift.  Ultimately, this will lead to a transitional market where both buyers and sellers are on an equal playing field.  


"The finest compliment I may ever receive is a referral from friends and clients."  Thank you!

Rising Interest Rates - Puget Sound Region

Rising Interest Rates - What Does It Mean?

Recently we had our first rate hike in almost a decade, and rest assured they will continue to slowly increase over the next year.  This is actually good news!  

Housing is back, our economy is back, and jobs are on the rise.  The reality is that interest rate hikes impact regions differently across the country.  How will this increase affect the Puget Sound Region?

1.  Slower Real Estate Growth

Finally, a slightly more balanced market where buyers and sellers can work together, rather than the scale being unfairly tipped towards one side.  Buyers, do not get too excited, because demand is still strong, and there will only be a slight slowdown.  Housing values will not decrease, but the historic rapid increases are due to drop-off.  

2.  Local Economy

While we will see appropriate market adjustments, our thriving local economy and increased population growth can support future rate increases.  We have strong local companies, and it seems like everyone from around the world is learning about how wonderful it is to live in Washington State.  Lastly, banks will now profit from interest rates going up as the margins have been very slim in the past.  All in all, the slowdown will be slight, and it will take some time throughout the year.  Bottom line is that Washington State is well insulated from any kind of crash in the foreseeable future!  

3.  Local MLS  News And Statistics

Compared to a year ago, MLS figures show drops in the number of new listings added to inventory during November (down 4.6 percent) as well in the total number of active listings at month-end (down 26.5 percent).  We had the driest inventory we have seen in any December!

MLS Realtors reported 7,511 pending sales during November for a 10 percent increase from a year ago when they notched 6,821 mutually accepted offers. This simply displays that people are scooping up properties faster than they are available for sale.  

In King County, the median price for home sales that closed during November was $499,950, a jump of 13.6 percent from the year-ago figure of $440,000.  

The housing market is not going anywhere anytime soon, and there will not be a big crash like we have seen in the past.  But if I were a buyer looking in this market, I would try to act sooner than later so you're not paying a premium and a higher interest rate.

Happy House Hunting!

"The finest compliment I may ever receive is a referral from friends and clients."  Thank you!