Interest rates have slipped below 3% for the first time on record so your buying power has increased, we continue to be short on inventory so it is a great time to sell, and after Staying Home so much recently, you are ready for your next home!  All of this means it is a great time to make a move – the only problem is, you aren’t sure if you can buy a home without selling first.

Programs That May Work For You.

Here are a variety of loan options that may work for you, depending on your financial situation.

1. Cross Collateralization.  This program is designed for a buyer who has a strong equity position in their current home. As a buyer you are able to access this equity with a loan that collateralizes both your current home and new home. When you sell your current home you can pay down the loan to reach your desired payment. It allows for a higher debt to income ratio to assist with qualification.
2. Departing Residence Program. This program helps the seller that has the funds for the down payment on the next home, but not the income to qualify. It allows you to utilize the potential rental income you would have from your current house in your income calculation, without having to actually rent out your home.
3. Asset Depletion. This program helps the seller who doesn’t have a traditional income, but has assets such as stocks & mutual funds, to derive an asset depletion income to qualify for the loan. This is especially helpful for sellers who are retired.
4. Restricted Stock Units. This program helps executives and many in the high-tech industry that can show a 2-year history of receiving RSUs as part of their compensation to be included as reserves or income for qualifying purposes.
5. 40-year loan. This program allows you to qualify for a larger loan amount – it is available on all occupancy types, cash-out refinances are allowed, and it can be used in conjunction with one of the other loan programs listed above to provide you with more options.
6. Buy/Sell with a long close and/or rent back option. This is a non-financial solution to the problem. Negotiating to purchase or sell with a long closing timeline and/or potentially a rent-back option – you may need to look at an off-market purchase or sale for this option.
7. Buy Contingent upon the Sale of your home. Sellers prefer not to get these offers – but if you have your home ready to go – inspected, prepared for market, staged, photos taken, competitively priced – and you are just waiting to find a home and get into contract – some sellers are accepting contingent offers right now.

You can even save your cash on hand for a strong down payment by paying for any prep work your home needs using the Windermere Ready program.  Windermere Ready is a short-term loan program where no payments are due during the loan and the loan is paid off when your home is sold. And, unlike other brokerage programs, Windermere Ready lets you use the contractors you want so you can keep the cost down and control the quality of the work you have done.

Article Published in the Woodinville Weekly Real Estate Section. Since 2017 The Blue Team has written the bi-monthly Real Estate Column sharing their expertise in this community publications. Sharing their Tips for Home Buying, Tips for Home Selling, Tips for Investors, Buying & Selling Luxury Homes, Real Estate Transitions (Including Relocation & Senior Real Estate Tips), and Equestrian Real Estate.

If you are a seller you want to encourage multiple offers and if you are a buyer in a multiple offer situation – you want to win.  Here are some tips for both!

Sellers – You can Encourage Multiple Offers on your home by doing these 3 things

1. Make A Great 1^st Impression. Don’t come on the market until you are ready! Buyers who are willing to bid in multiple offers are much more likely to have made an emotional connection – Love at first sight is key if you want your highest price!
2. Have Your Home Inspected. Have your home inspected and make a copy of it available to all serious buyers. If there are multiple buyers interested in your home, often buyers will pay to pre-inspect your home, if you have already had it inspected, they can elect to use your inspection and still submit a competitive offer without having to pay for a pre-inspection to do it. This will increase the number of buyers willing to submit an offer, and ultimately your sale price.
3. Have Your Home Move-in Ready. Buyers are willing to pay more for a house that is done so they don’t have to do work right when they move in.

Buyers – You can Win in a Multiple Offer by doing these 3 things

1. Have your funding locked in. Whether you are paying cash, getting a loan, or doing something “creative” get it figured out before you submit the offer so everyone will feel comfortable that you will able to close on the home as soon as possible and when you commit to.
2. Pay attention to the little things. Go to the open house and introduce yourself to the listing broker and say nice things about the house, write a “dear seller” letter from the heart, include things in your offer that will make the sales process easier for the seller. When the offers are similar these things can make the difference as to who wins and who doesn’t.
3. Be educated and know how to minimize risk for everyone. Most sellers want the highest price with the least amount of risk. Get educated on what you can do to minimize risk for the seller without taking on unnecessary risk yourself.  For example, review the preliminary title so you can waive that contingency, do your neighborhood review so you can skip that contingency, etc.  Don’t just waive contingencies that are meant to protect you – do the work prior to making the offer so you protect yourself and make your offer as strong as possible!

Article Published in the Woodinville Weekly Real Estate Section. Since 2017 The Blue Team has written the bi-monthly Real Estate Column sharing their expertise in this community publications. Sharing their Tips for Home Buying, Tips for Home Selling, Tips for Investors, Buying & Selling Luxury Homes, Real Estate Transitions (Including Relocation & Senior Real Estate Tips), and Equestrian Real Estate.

Staging your home can make a big difference in how you feel about the spaces – it isn’t about spending money, it is about, paying attention to these key staging concepts. It also makes a big difference in how much you can sell your home for since less than 10% of buyers can visualize changes to a home so the stats show that staging can help a home sell quicker and on average, for 10% more.

Consider how you want to use the room and how many people will be in there at any point in time, to determine the type of furnishings and amount of seating you will need. When you stage for living, a “bedroom” can be a bedroom, office, TV room, playroom, etc. When staging for sale we typically stage a room for what it was designed to be so you get full marketing value for each room.

Focal Point

Identify the room or area’s focal point – a fireplace, view, TV – and arrange the furniture accordingly. The ideal distance between the TV and your seating is three times the size of the screen (measured diagonally).  So, if you have a 40-inch TV, your couch should be 120 inches (10 feet) away.

Start with the largest pieces of your furniture and position it to face the focal point. In family or living rooms, establish conversation areas where a couch and a loveseat or two chairs face each other over a coffee table, keeping the space intimate. When staging for sale, we want to maximize the key selling features of a home and create memory triggers with the wow kitchen, cozy family room, fun playroom, etc.

Symmetry and Space

Symmetry

This affects the feel of a space – the more symmetrical it is the more formal it feels and asymmetrical spaces feel casual. Having the same bookshelves on either side of a fireplace, two of the same chair, lamp, or couches versus a variety of furniture, lamps, tables.

Rule of thirds

You want to fill two-thirds of the space, so for a bookshelf, you want one-third books, one-third accessories, and one-third empty space to keep things from feeling cluttered.

Left to Right

People read left to right so to encourage the movement of the eyes and flow in a room, for decorative items you want to place tall items on the left and shorter on the right.

Traffic Flow

Create a flow through a room by having a 30-48-inch path for the door to door traffic and 24 inches for movement around a room.  If possible, do not place furniture along the walls. Optimally you want an 18-24-inch perimeter around your living/family room conversation groupings so traffic flows around not through it.

Area Rugs

A 5-by-8 rug is the smallest you should use An 8-by-10 is optimal if the room size supports it. Smaller rugs make the home look and feel smaller. In a living/family room, you should have two legs of your couch and chairs on the rug and two off if space permits.  Bedroom rugs should extend at least 18-24 inches on both sides so that when you get out of bed you are fully on the rug.

Wall Art

In rooms where you are standing (like the foyer or hallway) you generally want to hang wall art at 60 inches. In rooms where you are generally sitting (like the dining or family rooms) you want to hang art at 54 inches.  Another good rule of thumb is to hang art 6-9 inches over an anchor – which might be a couch or console table – and the optimal width of the art is two-thirds of the anchor piece.

Variety and Contrast

A room is more visually pleasing if you have some variety and contrast. Having furniture pieces of different sizes throughout the room causes your eyes to move up and down as you scan the room and make it more interesting.  Avoid having two tall pieces next to each other. Another way to add variety is to combine straight and curved lines – whether it is the fabric pattern on a rug, upholstery or wallpaper – or the shape of each piece of furniture (curvy or angular).

Article Published in the Woodinville Weekly Real Estate Section. Since 2017 The Blue Team has written the bi-monthly Real Estate Column sharing their expertise in this community publications. Sharing their Tips for Home Buying, Tips for Home Selling, Tips for Investors, Buying & Selling Luxury Homes, Real Estate Transitions (Including Relocation & Senior Real Estate Tips), and Equestrian Real Estate.

We are often asked by buyers whether it is good to purchase a home in a planned neighborhood that has an active Home Owners Association (HOA) with Covenants, Conditions & Restrictions (CC&Rs). The answer is really dependent on your lifestyle and preferences.  Here are some of the common advantages and disadvantages that you should consider as you decide whether you want to purchase a home with or without an active HOA.

Advantages:

• Consistent Quality & Appearance of Homes – often there are requirements for the allowed home style, size, finishes, color of paint, type of fence allowed, etc. This can help establish a consistent look and price range for the entire neighborhood.
• Convenience of Shared Community Services –depending on the neighborhood, there might be shared septic management & septic drain fields; shared neighborhood only common areas like walking trails, playgrounds, clubhouses, golf courses, pools, and waterfront parks; shared maintenance of neighborhood signage, fencing, and landscaping.
• Access to Community Social Events – some neighborhoods have annual holiday events, block parties, social events like bunko nights or book clubs and websites for sharing information. This can be a nice way to get to know neighbors and build relationships that last a lifetime.
• Safety – planned neighborhoods are more likely to have shared/locking mailbox areas, neighborhood crime watches (official or unofficial), neighborhood lighting standards, and even sidewalks.

Disadvantages:

• Architectural Committee Rules – If you want to paint your home a color not allowed, have a fence where one isn’t allowed, make landscaping changes that aren’t consistent with the neighborhood, or even select the type of roofing that you want for your home. You might be frustrated with the restrictions.  Make sure the neighborhood reflects your personal preferences and lifestyle choices.
• Community Expenses – There is an expense to community services and the timing & amount is controlled by the community. Make sure the cost is worth it to you based upon your lifestyle and values.
• Recreational Vehicles – RVs, boats, cars that you are working on – may not be allowed in your driveway and/or in a visible location on your property.
• Pets – if you want certain breeds of dogs, chickens, horses, etc…. you might not be allowed.

Article Published in the Woodinville Weekly Real Estate Section. Since 2017 The Blue Team has written the bi-monthly Real Estate Column sharing their expertise in this community publications. Sharing their Tips for Home Buying, Tips for Home Selling, Tips for Investors, Buying & Selling Luxury Homes, Real Estate Transitions (Including Relocation & Senior Real Estate Tips), and Equestrian Real Estate.

There is information overload as we all hunker down and observe the Washington State Stay Home, Stay Healthy Order (SHSHO) and the Federal Social Distancing Guidelines.  We thought it might be helpful to highlight some of the information related to the CARES Act and Staying in your Home and the latest rules related to Buying/Selling Real Estate during the SHSHO.

STAYING HOME
As in, you want to stay in the home you have but are worried about the financial consequences of this Pandemic.  Here are some of the relevant components of the CARES Act signed by the President on 3/27/2020.

• Mortgage Forbearance – an agreement with your lender to hold back from foreclosure activities when you can’t meet your repayment obligations. If you can pay your mortgage, you should continue to do so. If you can’t make your payment due to a decline in income resulting from the impact of Covid-19, you should call your lender/mortgage servicer.
  • Borrowers of government-backed mortgages can request up to 360-day payment forbearance.
  • Applies to single family homes and condominiums, independent of whether they are owner occupied, a second home, or an investment property.
  • Proof of hardship isn’t necessary
  • No additional fees, interest, or penalties can be assessed for the forbearance.
  • Except for abandoned or vacant property, no foreclosure actions can be initiated for 60 days from 3/18/2020.

   

• Government-Backed Mortgages – this includes loan products from the Veteran’s Administration, USDA, Freddie Mac, Fannie Mae and Conventional Loans that are backed by Freddie Mac or Fannie Mae. Don’t know if your loan qualifies?
  • Freddie Mac https://ww3.freddiemac.com/loanlookup/
  • Fannie Mae https://www.knowyouroptions.com/loanlookup

   

• Non-Government Backed Mortgages – call your lender/mortgage servicer if this is a temporary problem related to Covid19. Many companies are providing assistance and putting plans in place.  Many are willing to provide zero interest & late fee deferral options and have paused in process foreclosure sales, evictions and repossessions. No one wants a repeat of the subprime 2008 mortgage crisis!

 

• Assistance for Renters – There is a 120-day suspension on evictions for renters unable to pay in Federally-assisted properties (single family & multifamily properties) with loans owned or securitized by Fannie Mae or Freddie Mac.

 

BUYING & SELLING
Real Estate is not considered an essential services, but given the impact on the economy of real estate, real estate brokers have been given very specific guidelines as to what we can and can’t do to balance the need for housing sales and purchases to continue and to keep people safe.

• As of April 2^nd, we CAN do the following: We are getting daily updates as to what we can and can’t do. Currently we can list homes on the market, stage homes, have professional photography, show homes, facilitate essential services like (lending, title, escrow and county recording) and other limited essential services like moving assistance, home inspections, emergency or structural integrity home repairs, and all of this activity must be by appointment only and observing Covid19 guidelines. We CANNOT hold open houses or brokers opens. However, things might have changed by the time you read this article – so check with your Real Estate Broker for the latest details.

 

• Homes are Selling & Closing: Interest rates are low, there continues to be a demand for housing, and as we navigate the what we can and can’t do, the housing supply is there also. Last week as the SHSHO was in place – we weren’t allowed to do a lot of what we can do today, so the numbers took a slight dip. We expect that to improve in the next few weeks as we carefully and respectfully keep guiding our clients who are selling & buying and closing on their sales. The market is becoming more balanced generally if you have a 3-6 month supply of homes, you have a balanced market and as of April 1^st we had 2.3 months of supply on the Eastside.

 

Article Published in the Woodinville Weekly Real Estate Section. Since 2017 The Blue Team has written the bi-monthly Real Estate Column sharing their expertise in this community publications. Sharing their Tips for Home Buying, Tips for Home Selling, Tips for Investors, Buying & Selling Luxury Homes, Real Estate Transitions (Including Relocation & Senior Real Estate Tips), and Equestrian Real Estate.

Everything can and should go smoothly with your real estate purchase or sale but sometimes it doesn’t.  If you are planning to buy or sell your home and you don’t think it matters who, if anyone, helps you – think again.

The trends, rules and laws having to do with real estate change frequently which is why the best Brokers stay on top of their continuing education and regularly attend their brokerage office meetings to stay current.  Here are just a couple of examples where the right information can make or break your real estate experience.

1. Home Security Cameras & Sound Recordings.
   While video recording without sound is generally permitted under WA law, audio recordings of private conversations without consent of the persons engaged in the conversations is prohibited. While providing a conspicuous notice to potential Buyers might protect a Seller, it is safer to just turn off the recording function.  Buyers – you should always be aware that your actions and potentially comments might be overheard by the sellers.

 

2. Wire Fraud.
   According to the FBI, cyber criminals stole or attempted to steal almost $1 billion from real estate transactions.  Buyers make sure you know how to protect yourself from wire fraud by always verifying the wire instructions with a trusted source or using a cashier’s check.  Sellers make sure your Buyer has a reputable Broker advising them so this doesn’t happen on your sale.

 

3. Pollution Liability Insurance Agency.
   Does the home you are selling/buying have a heating oil tank on it and has the Seller registered for PLIA insurance? PLIA Insurance is free of charge to the property owner and if there is contamination as a result of a leak that starts after the tank is registered then PLIA will pay up to $60,000 to clean up the contamination. Buyers should know that if they register within 180 days from the date of closing, then there will be no coverage lapse from when the seller registered.

 

4. Fair Housing.
   Make sure you know all of the applicable rules in each stage of the transaction. The specific words that are not allowed in Advertising; the rules with respect to service animals during showings & open house touring; and the offer review process that can help ensure Sellers make decisions about offers appropriately. Careful attention to the Fair Housing rules throughout the sales process will protect both Sellers and Buyers.

 

5. Advertising Bedrooms based upon the Septic System.
   Both Sellers and their Brokers can be held liable for damages by Buyers in the future if they advertise the home as having more bedrooms then the septic system rating. There are ways to communicate room flexibility without putting Buyers or Sellers at risk for unexpected costs in the future.

 

Article Published in the Woodinville Weekly Real Estate Section. Since 2017 The Blue Team has written the bi-monthly Real Estate Column sharing their expertise in this community publications. Sharing their Tips for Home Buying, Tips for Home Selling, Tips for Investors, Buying & Selling Luxury Homes, Real Estate Transitions (Including Relocation & Senior Real Estate Tips), and Equestrian Real Estate.

A Successful Sale – It’s All in the Details

A prompt sale and a successful closing requires close attention to the details at each stage of the home sale. This is especially important now as the local real estate market has cooled off some and, while it is still a seller’s market, buyers have more homes to choose from and multiple offers aren’t as common as they were last Spring.  Pay attention to the details and you will have success.

1. Pre-Listing Inspection.
   By having a reputable inspector inspect your home prior to listing you will avoid negative surprises and can deal with any issues proactively. The benefits include: (1) the ability to control who does the repair, how & when it is done; 2) ability to get an estimate on a repair you don’t want to do so you can simplify the negotiation by disclosing it a provider who can fix it and the cost; and 3) no inspection surprises means no price reductions after you are in contract and happy buyers.

 

2. Home Upgrade List.
   It is always helpful to have a list of upgrades that you have made to the home and the cost of those upgrades. This information will help the Buyer know why your home might be worth more then the competitor home and it also helps ensure that your home will appraise at the contracted value by providing the appraiser the same information to support the sale price.

 

3. Home Features List.
   Most buyers walk through a home in 15-30 minutes and are trying to decide whether they want to buy and live in your home for years, it can be a daunting task. You and your Broker can really help them out by creating a feature list handout – by room or by area – so even if they miss something they have it after they leave your home.  This is sometimes combined with the upgrade list.

 

4. Contract Tasks & Deadlines.
   Once you get into contract on a home there are very specific tasks that the seller and the buyer are required to do and key deadlines. A 1-page summary can be very helpful for everyone to manage the list and hit the deadlines – ensuring an on time closing.

 

5. Moving Tasks.
   Doing what you can before you list your home such as getting rid of things you don’t want and starting the packing process can really help. Make sure you have a clear list of everything that needs to get done and by when, being sure to prioritize time sensitive services like selecting an estate sale representative or mover early in the process since they get booked up. This will really help decrease the stress of moving.

 

Article Published in the Woodinville Weekly Real Estate Section. Since 2017 The Blue Team has written the bi-monthly Real Estate Column sharing their expertise in this community publications. Sharing their Tips for Home Buying, Tips for Home Selling, Tips for Investors, Buying & Selling Luxury Homes, Real Estate Transitions (Including Relocation & Senior Real Estate Tips), and Equestrian Real Estate.

An important consideration when selling your home is making sure that you pay attention to safety and security – your real estate broker should guide you on the specifics for your home.  However here are some steps that every seller can take to protect their home & family.

1. Personal Information.
   You have been told to de-personalize your home, so prospective buyers don’t get distracted and their focus stays on your home, however you also want to do this to protect your personal information. Family calendars can let people know where you, your children, and/or pets will be at specific times. Mail and especially bills sitting out can share your financial information. Old school answering machines can also share details about when you will & won’t be home – make sure to turn the volume down or off.

 

2. Keys, remotes, meds and valuables.
   While having a basket by the door or set of hooks for your keys & remotes is a great way to organize easily misplaced items for your everyday routine, it is dangerous to leave them out so someone can easily pick them up for use after the home tour or open house. You should make sure that prescription meds are removed from bathroom cabinets and dressers. Pack away any items that are monetarily or personally valuable – so they don’t get stolen or inadvertently broken (especially small items like phones & jewelry and fragile items like musical instruments and collectibles).

 

3. Windows & Doors.
   You should always have your windows and doors locked when your home is on the market – even if you don’t do that on a regular basis. In addition, make a habit of checking your windows & doors after open houses or agent tours so you know that someone didn’t inadvertently or purposely unlock one for later use.

 

4. Landscaping & Lighting.
   Trim landscaping and well lighted walk ways are important for good curb appeal – but they also deter thieves and eliminate safety hazards. Make sure handrails are in good repair, all lightbulbs are working, and anything that might be a trip hazard is corrected or clearly identified.

 

5. Dangerous Items.
   It should be obvious – but we have been in homes where sellers have left dangerous items out. All guns and other weapons should be safely locked away, kitchen knives should be put away (especially during open houses), and chemicals put out of reach of small hands. This will protect the real estate brokers & prospective buyers and you from the liability if something inadvertently happens.

 

Article Published in the Woodinville Weekly Real Estate Section. Since 2017 The Blue Team has written the bi-monthly Real Estate Column sharing their expertise in this community publications. Sharing their Tips for Home Buying, Tips for Home Selling, Tips for Investors, Buying & Selling Luxury Homes, Real Estate Transitions (Including Relocation & Senior Real Estate Tips), and Equestrian Real Estate.

If you are trying to decide whether to sell your home year or next, one of the variables you might want to consider and prepare for is the new 2020 Real Estate Excise Tax (REET). Currently the Washington state excise tax is 1.28% and then local municipalities add their excise tax on top of that, with most cities in our area adding .5% so the average total REET is 1.78%. Effective 1/1/2020 this will change to a new sliding scale based upon the home’s sales price. Depending on your price point you might want to sell before or after the end of the year.

New Progressive REET Rates

Here are some sample calculations compared to 2019

Congratulations, you have made it to a key life milestone!  Unfortunately, you no longer need the spaces that your home is designed to support, so how do you find your next home?  Instead of just thinking you need to “downsize” consider the lifestyle you want now and then find a home that will help you achieve that lifestyle.

You may end up with a smaller or larger home, in the same neighborhood or in a different place all together or maybe you just remodel the home you have.  We call this Lifestyle Rightsizing.

1. Pursuits at Home.
   What activity do you want to take up or spend more time on at that might need a specialized space – such as restoring old cars, painting, wood working, organic gardening, cooking/entertaining, hosting football parties, practicing your putting, etc.

 

2. Activities outside of the Home.
   What do you want to do away from home – that should be facilitated by your home? Maybe you want to travel the country on your RV (RV Parking), ride your bike daily (close proximity to trails, roads with bike lanes, and/or storage for bike equipment), domestic or international traveling (secure home & neighborhood, proximity to the airport), be able to walk to restaurants & businesses (home in the city), or you want have your own chickens & goats (the right property & no HOA).

 

3. Flexible Spaces.
   Maybe you are tired of cleaning & maintaining your large home – and you would rather have a higher quality & cozy home, but one that designed to handle visits from extended family several times during the year. Consider the design principles of the Not So Big® Home by architect Sarah Susanka (www.SarahSusanka.com) where you have rooms that have multiple purposes depending on your need at the time. Efficient & multi-use spaces can really be a win-win – let us know if you need ideas.

 

4. Simplify Your Life.
   This is also a good time to think about how to simplify your life, so you can spend your time and money doing what you really want to do. This can be anything from buying a home or condo without a yard, buying a tiny home that forces you to be efficient, or just changing how you use your current space by getting advice from a space planner & organizer to help you get rid of all of the clutter you have collected over the years so you can live a more efficient life and have more time for doing what really matters.

 

Article Published in the Woodinville Weekly Real Estate Section. Since 2017 The Blue Team has written the bi-monthly Real Estate Column sharing their expertise in this community publications, sharing their Tips for Home Buying, Tips for Home Selling, Tips for Investors, Buying & Selling Luxury Homes, Real Estate Transitions (Including Relocation & Senior Real Estate Tips), and Equestrian Real Estate.