Living • December 29, 2011

2011: A year in Review

by Windermere Staff

Saturday is New Year’s Eve, and the year in review articles, top ten lists of 2011, and 2012 predictions are showing up everywhere. This time of year always inspires reflection, which led us to think about some of the incredible milestones we’ve experienced over the past 12 months and what we have to look forward to in 2012.

- Windermere and the University of Washington celebrate a 25 year partnership! This year was the 25^th annual Windermere Cup; the international crew races that are held each year to kick off opening day on Lake Washington. The UW, Stanford University, Cambridge University, and Oklahoma University competed in this year’s regatta. The University of Washington was undefeated in both the men’s and women’s races.

- More than 300 Windermere offices and 7,000 agents took the day off to give back to their communities for the 27^th annual Community Service Day. Agents worked together to clean up community centers, collect and deliver baby clothing to shelters and food to food banks, and improve living spaces at domestic violence shelters.

- In 2011, we pledged to “Build Better Communities, One Home Sale at a Time” with a network-wide campaign to raise awareness about the Windermere Foundation, and kids in neighborhoods with limited recreational resources. Windermere offices from Washington to Hawaii and Oregon to Arizona made a huge difference by helping to renovate local parks and recreation centers in their communities.

- The Windermere Foundation raised more than one million dollars for local community organizations that provide support to low-income and homeless families. Over the last 23 years, the Foundation has raised more than 23 million dollars. A portion of every home sale or purchase made through Windermere is automatically donated to the Windermere Foundation and goes back to the communities from which the funds were raised. We’re incredibly grateful to the generosity of our agents and their support of the Windermere Foundation.

- Windermere Real Estate was selected as the most respected real estate brand in the Puget Sound Business Journal survey of Washington State businesses. We were humbled by this recognition and flattered by the companies we competed with in the online “Battle of the Brands” competition. We successfully made it through four rounds, and came in a close second to Chateau Ste. Michelle.

- We launched a new and improved version of Windermere.com with some great new features:
  - - New look and feel throughout the site
  - - Fewer clicks to valuable information and listings
  - - More advanced-search options
  - - myWindermere tools including saved searches, find an agent, track and share favorite listings
  - - Listing detail pages with in-depth MLS data and research tools, such as listing history, days on market, and community details
  - - Discover Your Neighborhood features to find information on local schools, amenities and home sales
  - - Share listings and content via email, Facebook, and Twitter
  - - Expanded home buyer and seller tips with integrated blog

- After three challenging years, the real estate market is finally starting to see a light at the end of the tunnel with year-over-year home sales increases in most markets. While home values have continued to struggle, the lower prices combined with low interest rates have resulted in historic affordability levels.

Looking forward to 2012:

- Next year marks Windermere’s 40^th anniversary. To kick-off this noteworthy milestone, we are hosting a huge celebration and symposium for our agents in January. Throughout the coming year, we will also provide highlights, historical facts, and other 40^th anniversary details on the Windermere Facebook page.

- We are expanding our “Building Better Communities, One Home Sale at a Time” campaign so that we can have a greater impact on children and families in need throughout the Western U.S. You can learn more or donate at www.windermereandyou.org.

What were some of your favorite memories from 2011? What are you looking forward to most in 2012?

Buying • Selling • December 19, 2011

December Perspectives

by Guest Author

The year is nearly over, the holidays are in full swing, and reflection and resolution are top of mind. As we look back at the past year, it’s clear that in many ways 2011 was a time of transition and renewal for the residential real estate market. While recovery has been slow, the Seattle housing market has finally turned a corner, albeit a soft one with some bumps along the way. In general, sales are up, which means houses are selling, yet foreclosures and short sales continue to cause downward pressure on prices.

In 2012 we will likely see foreclosures rise, but not for the reasons you might think. Banks are beginning to focus more heavily on the backlog of foreclosures and are therefore expected to take on a higher volume of filings in the coming months. As they work through this backlog, it will appear on the surface that foreclosures are on the rise, when in reality, mortgage defaults are actually on the decline. In other words, foreclosures will continue to be prevalent in 2012, but they probably shouldn't be looked at as an indicator of the overall health of the housing market.

Amidst the ups and downs of the real estate market, one thing that kept our spirits up in 2011 was historically low interest rates. Low interest rates have the power to make homes more affordable, mortgage payments cheaper, and loan terms shorter. And because of this, home buyers and owners alike saw stellar opportunities to lower their payments or refinance during the past year. Interest rates are expected to remain low in the coming months, so as we head into 2012, there’s still time to do the math to see if it makes sense to act.

There are a lot of opinions out there about what the housing market will do in 2012, but in the absence of a crystal ball, it’s impossible to know exactly how it will fare. What we do know is that it feels like real estate is returning to its roots – where buying a home is less about red hot deals and more about long-term benefits. We’re encouraged by this shift and hope to see more of it as we usher out the old and ring in the new with a sense of reverence and optimism for what’s to come in the New Year.

From our family to yours, wishing you all things merry and bright this holiday season.

More • December 15, 2011

Greater Seattle Offices Give $122,000 to Local Organizations

by Windermere Staff

When we work together, we truly can make a huge difference in the lives of our neighbors!

Ten of our offices in the greater Seattle area team up every year for fundraising and giving. This year they exceeded everyone’s expectations, giving $122,000 to organizations and programs that benefit low-income and homeless families in their local communities. Here are some of the organizations they supported this year:

Kirkland Interfaith Transitions in Housing

Royal Family Kids Camp

Eastside Baby Corner

Housing at the Crossroads

Assistance League of Eastside

Eastside Domestic Violence Program

A special congratulations to the Bellevue West, Bellevue, Bellevue Commons, Bellevue South, Issaquah, Kirkland Central, Kirkland NE, Redmond, Woodinville and Yarrow Bay Windermere offices for the great work you did this year!

If you have purchased or sold your home through Windermere, you are a part of the Windermere Foundation. Each of our offices raises funds through transaction donations, fundraising efforts, and personal contributions. The funds they raise go back to their communities, to benefit local nonprofit organizations and programs that support low-income and homeless families. We are starting a new series to highlight the organizations and programs that benefit from the Windermere Foundation. If you have a story you would like to share, email foundation@windermere.com. Or you can donate at www.windermereandyou.org.

More • December 15, 2011

The Risks, Rewards, and Benefits of Owning Rental Property

by Shelley Rossi

One area of the real estate market that is thriving right now is rental property. In the first quarter of this year, landlords and property managers across the country rented more apartments and homes than they have during the first quarters of the past ten years. And according to the Wall Street Journal, the amount that renters are willing to pay has also jumped to a nationwide average of $991 per month.

All indications suggest that the rental market will continue to improve because of the combination of low vacancy rates and rising rents. In fact, the demand for rentals is predicted to far exceed supply through 2015, with some 4.5 million new renters expected to enter the market in the next five years.

What to consider before buying a rental
Being a landlord has its challenges. The recession took a toll on rental prices for a few years and any future economic downturns could do the same. Once the job market returns to normal, there’s a strong possibility that more people will choose to move from rentals into homes of their own. And the demand for rental properties could become oversaturated at some point, resulting in an investment bubble of its own.

What’s more, while the income from a rental property can be significant, it can take at least five years before you’re making much more than what you need just to cover the mortgage and expenses. In other words, the return on your investment doesn’t happen overnight.

However, in the long run, if you select the right property, it could turn out to be one of your best investment decisions ever—especially since rental real estate provides more tax benefits than almost any other investment.

Tax deductions for the taking
One of the great things about owning rental properties is the fact that you’re able to deduct so many of the associated expenses—including a sizable portion of your monthly mortgage payment.

The commissions and fees paid to obtain your mortgage are not deductible, but the mortgage interest you pay each month is—including any money you pay into an escrow account to cover taxes and insurance. Whatever your mortgage company reports as interest on your 1098 form at the end of each year can likely be deducted.

For example, you may be eligible to deduct credit card interest “for goods and services used in a rental activity,” repairs made to the building, travel related to your rental, expenses related to a home office or workshop devoted to your rental, the wages of anyone you hire to work on the building, damages to your rental property, associated insurance premiums, and fees you pay for legal and professional services. However, as is the case with any transaction of this type, be sure to consult your attorney or accountant for detailed tax information.

What to look for
As with any real estate investment, the location of the property and its overall condition are both key. But with rental properties, there are some other factors you’ll also want to consider:

 Utilities: Look for a building with separate utilities (water, electric, and gas, etc.) for each rental unit. This will make it far easier to legally charge for the fair use of what can be a very costly monthly expense.

 Competition: If your property is one of the few rentals in the neighborhood, there will be less competition for interested renters.

 Transportation: Rentals that are near popular public transportation options and / or major freeways (without being so close that noise is an issue) are usually easier to rent—and demand more money.

 Landscaping: Properties with small yards and fewer plantings are far easier and less expensive to manage.

 Off-street parking: Not only is off-street parking a desirable feature (people with nice cars usually don’t like to park on the street), it’s also a requirement for rental properties in some communities.

How to start your search
Unlike homes, rental properties do not typically have a visible ‘for-sale’ sign standing out front (as landlords don’t want to irritate, bring attention to their current renters, or turn off any prospective renters). Therefore, if you are interested in a rental property, your best option is to schedule an appointment with your real estate agent/broker to discuss your investment goals and identify what opportunities currently exist in your market place.

Living • December 9, 2011

Make Your Home Safe for the Holidays

by Guest Author

With all the cheer and celebration at this time of year, it’s hard to believe anything bad could happen. However, statistics show there’s a significant increase in home-related accidents, fires, and burglaries around the holidays. To protect your family, friends and property, heed these six suggestions:

Keep walkways, driveways and decks free of slippery ice or moss.

Have your fireplace professionally cleaned, and only use one artificial log at a time.

Check the batteries in all smoke detectors and make sure a working fire extinguisher is located on every floor, as well as the kitchen and garage.

Snuff out any candles before leaving the room (even for a short while), and make sure to always keep them in short holders with wide bases so they don’t fall over.

For holiday lights: Only use outdoor lights / extension cords in the outdoors, and plug them into GFCI protected outlets; make sure all lights are UL-approved; know that the smaller bulbs are safer; never leave them on when you’re not home.

Plug a few lamps and the TV or stereo into timers to make it appear someone is home while you’re away. Also, ask a neighbor to park their car in your driveway, pick up any mail and keep an eye out for any suspicious activity.

Making the extra effort to keep your home safe will always be the best gift you could give family, friends and other visitors.

More • November 23, 2011

Giving Thanks

by Windermere Staff

This Thanksgiving, many of us will return to our families and traditions, while others will forge new ones. Regardless of how we blend the old and the new, one thing remains true: this is the time of the year to be thankful for our families, friends, communities, and anything else you hold near and dear. Over the past year, we have had the honor of seeing many people realize dreams and celebrate milestones in their lives, so we want to take this opportunity to say how thankful we are for these opportunities and to wish you and yours a very Happy Thanksgiving.

More • November 18, 2011

Milepost 40—The Journey Continues; Second Annual Windermere Foundation video Video contest Contest

by Windermere Staff

Back by popular demand, the Windermere Foundation is launching its second-annual video contest! Last year, we received more than 25 videos from Windermere offices all over the Western U.S., sharing the amazing work our offices and agents do for their local communities. This year, we have selected a special theme for the video contest: “Milepost 40—The Journey Continues”. As we usher in Windermere’s 40^th anniversary, we’re focusing on the past, present, and future. We cannot wait to see the amazing videos our offices share with us.

You can see a number of videos from last year’s contest on the Windermere Real Estate YouTube channel!

More • November 18, 2011

Milepost 40—The Journey Continues; Second Annual Windermere Foundation Video Contest

by Windermere Staff

You can see a number of videos from last year’s contest on the Windermere Real Estate YouTube channel!

More • November 11, 2011

Thank you veterans!

by Windermere Staff

All of us at Windermere would like to take a minute to express our gratitude to the military veterans who have served our country. Many of us know someone who has served in the U.S. armed forces and have been touched by their stories and their sacrifice. Windermere is proud to have several veterans among us; we are grateful to them and the contributions they have made in shaping our company – and our country.

Thank you veterans!

More • November 9, 2011

Top 10 qualities to look for in an agent

by Windermere Staff

Buying a home is one of the most significant financial and emotional purchases of a person’s life. That’s why it is so important to find an agent that can not only help you navigate the home search process, but one who can also answer your questions and represent your needs from start to finish. Most importantly, your agent should care about your happiness and ensuring that you find the home that best fits your needs. Here are some qualities to consider when selecting a real estate agent:

Someone you like. More than likely, you will be spending a lot of time with your agent, so look for someone that you enjoy interacting with.

Someone you trust. One of the best ways to find an agent who you feel you can trust is to ask friends and family for a referral. Another way to do this is to interview different agents and ask for client references.

Someone who listens. While your agent can’t read your mind, they should be able to make educated recommendations and offer advice by listening closely to your needs. Make sure you talk to your agent about your priorities, what types of features appeal to you, as well as any factors that could be deal breakers. This will arm your agent with everything they need to help find you the perfect home.

Qualified and experienced. Make sure your agent has the qualifications and experience to meet your specific needs. For example, some agents have more experience with short sales, while others might be experts on certain neighborhoods or types of housing. Your agent should also be fully trained in contract law and negotiations.

Knowledgeable. A great agent is someone who is out in the neighborhoods, exploring communities, visiting listings, performing marketing analyses, and collecting all the information that you need to make an informed, confident decision about your real estate needs.

Honest. Your agent should be upfront and honest with you about every aspect of your home search process – even if it involves delivering bad news. The best real estate agents are more concerned about finding the right home for their clients, not just the home that brings in the fastest commission check.

Local. Every community is different and all real estate is local, so it’s important to find someone who really knows the local market and can provide you with whatever information you need to familiarize yourself with a particular area..

Connected. A well connected agent will have relationships with lenders, inspectors, appraisers, contractors, and any other service provider you might need during your home search.

Straight forward. You want an agent who will work hard to help you find the best home, but you also want someone who will be straight forward with you about the process, the market reality, and what is realistic for you.

Committed. Your agent should be in it for the long haul, meaning that they’re looking out for your best interests every step of the way, no matter how long the process takes. The best way to find an agent with these qualities is by asking around. In all likelihood, someone within your circle of friends or family will have experiences to share and professionals to recommend. You can also search for agents based on area, so you know you’re getting someone who is knowledgeable of the neighborhood(s) you’re interested in. Click here to learn more about the buying process.