Buying • Selling • September 18, 2019

Mistakes to Avoid When Buying and Selling a Home

by Meaghan McBoom

A man and a woman review paperwork with their real estate agent.

There’s nothing more exciting, rewarding, and fulfilling than buying a home. However, it’s a complex transaction; there are a number of steps along the path that can confuse, betwixt, and befuddle even the most seasoned buyers and sellers.

How can you avoid those potential pitfalls and common mistakes? Look to your real estate professional for advice and keep these guidelines in mind:

BUYERS

#1 Review your credit reports ahead of time

Review your credit report a few months before you begin your house hunt, and you’ll have time to ensure the facts are correct and be able to dispute mistakes before a mortgage lender checks your credit. Get a copy of your credit report from Experian, Equifax, and TransUnion. Why all three? Because, if the scores differ, the bank will typically use the lowest one. Alert the credit bureaus if you see any mistakes, fix any problems you discover, and don’t apply for any new credit until after your home loan closes.

#2 Get pre-approved

Before getting serious about your hunt for a new house, you’ll want to choose a lender and get pre-approved for a mortgage (not just pre-qualified—which is a cursory review of your finances—but pre-approved for a loan of a specific amount). Pre-approval lets sellers know you’re serious. Most importantly, pre-approval will help you determine exactly how much you can comfortably afford to spend.

#3 Know what you want

You and your real estate agent should both be clear about the house you want to buy. Put it in writing. First, make a list of all the features and amenities you really want. Then, number each item and prioritize them. Now, divide the list into must-haves and really-wants.

#4 Account for hidden costs

In addition to the purchase price of the home, there are additional costs you need to take into consideration, such as closing costs, appraisal fees, and escrow fees. Once you find a prospective home, you’ll want to:

Get estimates for any repairs or remodeling it may need.
Estimate how much it will cost to maintain (gas, electric, utilities, etc.).
Determine how much you’ll pay in taxes monthly and/or annually.
Learn whether there are any homeowner’s or development dues associated with the property.

#5 Get an inspection

Buying a home is emotionally charged—which can make it difficult for buyers to see the house for what it truly is. That’s why you need impartial third parties who can help you logically analyze the condition of the property. Your agent is there to advise you, but you also need a home inspector to assess any hidden flaws, structural damage or faulty systems.

#6 Evaluate the neighborhood and location

When house hunting, it’s easy to become overly focused on the number of bedrooms and bathrooms, the condition of the home and its amenities while overlooking the subtleties of the surrounding neighborhood. Take time to check crime reports, school options, churches and shopping. If schools are a key factor, do more than simply research the statistics; speak with the principal(s) and chat with the parents waiting outside.

SELLERS

#1 Avoid becoming emotional or sentimental about the sale

Once you decide to sell your house, it’s time to strip out the emotion and look at it as a commodity in a business transaction. If you start reminiscing about all the good times you had and the hard work you invested, it will only make it that much harder to successfully price, prepare, and market the home.

#2 Fix problems (or price accordingly)

Homes with deferred maintenance and repair issues can take far longer to sell and can be subject to last-minute sale-cancellations. These homes also often sell for less than their legitimate market value. If you simply can’t afford to address critical issues, be prepared to work with your agent to price and market your home accordingly.

#3 Don’t overprice your home (and/or refuse to negotiate)

Getting top dollar is the dream of every seller. But it’s essential that you let the market dictate that price, not your emotions or financial situation. Allow your agent to research and prepare a market analysis that factors in the value of similar homes in the area, and trust those results.

#4 Use quality photos

The vast majority of prospective buyers today search for homes online first. In order to make a good first impression, you need a wealth of high-quality photos of your home and surrounding grounds. You may also need to consider professional staging in order to position your home in the best possible light for prospective buyers.

The process of buying or selling a home can have plenty of twists and turns, but with some smart decision making, you can avoid the most common mistakes and pitfalls.

Click the button below to connect with an experienced Windermere Real Estate agent.

Buying • September 16, 2019

You’ve Moved into Your New Home. Now What?

by Meaghan McBoom

A man, woman, and their baby sit in their living room surrounded by boxes.

Congratulations on your new home! You made it through the arduous process that is buying a new home. Now it’s time to take on the task of moving in.

You did your research about the neighborhood and you feel like you know the home like the back of your hand. However, there are some things to do as you move in to protect your newest investment, and yourself, from the unknown variables in and around your home.

Change the Locks & Garage Door Codes

Previous owners might have changed the locks, but they may not know who all has a key or a code to open your garage, especially neighbors who they trusted to watch their place while they were away. Changing the codes and locks on all the doors ensures that you have complete control over entry to your home.

Check or Install Fire and Carbon Monoxide Detectors

If the home already has fire and carbon monoxide devices, make sure they are in working order by testing each one with the tester button. Keep a note of when to replace them as well.

If they don’t have them, install a device in each sleeping room, as well as common areas like the living room or kitchen. Hallways are a great place to cover multiple rooms with one detector as well.

Install a Security System

Enjoy total peace of mind with a new security system. Meet with a consultant on the best ways to protect your home for a system that works best for you and your lifestyle.

There are also app-connected systems that you can set up yourself that notify you of movement on the cameras or doors and windows opening.

Meet the Neighbors

Build a sense of community and get to know the lay of the land by knocking on neighbors’ doors to get to know them. Bring a small gift as a “thank you” for dealing with the moving trucks. This is a great initial step for figuring out who you can trust to watch things while you’re away should you need a helping hand in the near future.

To connect with an experienced Windermere Real Estate agent, click the button below:

More • September 9, 2019

Windermere Living Fall Issue

by Shelley Rossi

Dear Readers,

Welcome to the fall issue of Windermere Living! Are you a foodie who loves to travel? Inside this issue is an article about interesting destinations where you can enjoy edible, immersive experiences like making your own coffee on the Kona coast of Hawaii, or diving for clams in Cabo and cooking them with an executive chef.

If you’ve ever undergone a major home remodel, you know all too well how important it is to partner with the right architect. We explore that topic in this issue, along with some pro tips on how to match yourself up with the perfect architect for your project, a process that isn’t that different from dating.

Last but not least, there are more than 70 pages filled with homes for sale throughout the Western U.S. Whether you’re in the market for a country farmhouse or a high-rise condo, there’s a little something for everyone.

This is just a sampling of what you’ll find in this issue of Windermere Living; we hope you enjoy it!

Read the Fall Issue of Windermere Living.

More • August 28, 2019

A 25-Year Tradition of Golfing and Giving

by Marilou Ubungen

Golfing and giving seems to be a tradition with Windermere Real Estate. Many of our offices hold golf tournaments to raise money for local non-profits via the Windermere Foundation. The longest-held Windermere golf tournament has been hosted by a group of Windermere offices in Snohomish County, Washington.

Snohomish County Windermere Foundation Golf Tournament

This year’s 25^th Annual Snohomish County Windermere Foundation Golf Tournament was held on July 26 at Cedarcrest golf course in Marysville, Washington. It was a festive day of golfing, food, and fun as they celebrated 25 years of support for low-income housing. The event raised nearly $30,000 for the Windermere Foundation, which then sent a donation to support Housing Hope and their ChildHope programs. Each golfer received a commemorative Windermere Foundation 25^th Annual Golf Tournament coin. Over the past 25 years, this tournament has raised over $400,000 in support of non-profits in Snohomish County.

About Housing Hope

Housing Hope’s mission is to promote and provide affordable housing and tailored services to reduce homelessness and poverty for residents of Snohomish County and Camano Island, Washington. In 2018, ChildHope programs served 747 people–358 parents and 389 children in 315 families. Tomorrow’s ChildHope Child Development Center serves children from four weeks to twelve years of age, providing assessments for each child to determine special needs and treatment plans to help those children who may be traumatized by poverty and homelessness.

Windermere Legends Golf Tournament

Another golf tournament of note is the Windermere Legends Golf Tournament–in honor of Windermere legends Dick Wood, Don Deasy, Don Riley, John Demco, Terry Haberbush, Vince Haugerud, and Walley Starkey. It is hosted by several Seattle-area Windermere offices. Established in 2007, the golf tournament benefits the Windermere Foundation and The Don Deasy Memorial Leadership 1000 Scholarship Fund. The tournament was originally called the Don Deasy Memorial Golf Tournament, in honor of Don Deasy, a Windermere icon and valued franchise owner. The scholarship fund provides grants to help fund the college education of a Quincy High School graduate (Don’s hometown) who plans to attend the University of Washington. In its first year, the tournament raised $75,000. Sixteen years later, this annual golf tournament has raised a total of over $671,300.

Thanks to events like these golf tournaments, the Windermere Foundation has been able to raise more than $38 million over the past 30 years in support of low-income and homeless families. To learn more about the Windermere Foundation, or to make a donation, please visit windermerefoundation.com.

Market News • August 26, 2019

The Slow Down in Foreign Buyers

by Windermere Economics

The United States housing market is experiencing a significant reduction in foreign buyers. Windermere Chief Economist, Matthew Gardner, cites several factors that could be contributing to this trend and offers his opinions as to what to expect in this recent Market Update.

Design • August 21, 2019

Prepare For and Prevent Damage This Wildfire Season Before It Happens

by Meaghan McBoom

After last year’s wildfires, some of the largest and deadliest in recent memory, spread along the west coast, homeowners are on edge as to what this fire season will bring. The questions of whether their home will be burnt, or if they will be affected by poor air quality, hang in the air much like the smoke of a nearby fire. Accompanied by heatwaves hitting much of the U.S. these fears can turn into realities just as quick as a spark in brush. Luckily there are ways to prevent damage and to prepare for anything coming your way.

Be prepared with fire insurance

Are you currently protected in case of a fire? Make sure to talk with your insurance agent and work on a plan to insure your home.

Questions to ask them are:

What is covered should our home be destroyed in a fire?
What kinds of documentation do we need to do in order to get the full benefit of the insurance?
- It’s usually a great idea to keep a log of what is in your home and how much it costs. Keep receipts and invoices if possible.
Who at the company should we contact in case of emergency?

Be prepared with an emergency kit

Cal Fire has a comprehensive guide to all things wildfire preparedness. Here they suggest putting together an emergency kit that’s always ready in case of sudden evacuations. They recommend including:

Map marked with at least two evacuation routes
Non-perishable foods to last three days
Prescriptions and medications. Also, eyeglasses or contact lenses.
Change of clothes
Toiletries and sanitation supplies
And extra set of car keys, as well as credit cards, cash or traveler’s checks
First aid kit
Flashlight and batteries
Copies of important documents like birth certificates and passports
Food and water for your pet
Chargers for cell phones and other devices

Some other items you might consider having close by are easily carried valuables, sentimental items like family photos, and computers or hard drives. Keep a sturdy pair of shoes and a flashlight near your bed for any evacuations at night.

Prevent damage by fortifying the building

Fire-Safe Landscaping

You don’t have to re-do the entire garden to slow the fire down. Home Advisor recommends you create a balance of aesthetically pleasing flora and slow-burning plants that are less likely to ignite.

Additionally, keep your garden and property free of dry materials that are ideal for kindling either in your bonfire or for a wildfire. Not only does creating this barrier protect your home, it also gives firefighters a safe area to work from as they work to control the fire.

To see what plants to use and other ways to fireproof your property, visit HomeAdvisor.

Build or remodel with flame-resistant materials

Materials like brick, stucco, metal, or concrete are great exteriors that can prevent the fire from taking hold of your home, at least initially. If your home is already built with one of these materials, the weak points might lie in your extremities like your deck or porch. Consider re-building these with fire-proof materials or add a coating to protect them.

Additionally, protect the most vulnerable areas of your home, like your windows and any air vents. Add retractable fireproof panels to your windows or replace the glass with wire glass or fire-proof safety glass. Don’t forget your skylights or windows on your doors.

Market News • August 19, 2019

Rent Control

by Windermere Economics

Oregon’s statewide rent control legislation has stirred discussion at the Legislative level up and down the west coast. Windermere’s Chief Economist, Matthew Gardner, says Oregon’s law is really more a rental price stabilization tactic and weighs in on whether other states are likely to adopt similar regulation.

Market News • August 14, 2019

Hawaii/Maui Real Estate Market Update

by Windermere Economics

The following analysis of select Maui real estate markets is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

The tepid pace of employment growth in Hawaii continues. Only 1,200 jobs were added over the past 12 months, representing an annual growth rate of 0.2%. In June, the state’s unemployment rate was 2.8% — a figure that has remained static for the past four months — but it is up from 2.4% a year ago.

On the island of Maui, employment continues to contract, with a 3% drop year-over-year. Employment growth has been negative for the past 18 months. The island’s unemployment rate was 3%, up from 2.8% a year ago.

HOME SALES

In the second quarter of 2019, 573 homes sold. This was a drop of 9.2% compared to the second quarter of 2018, but an increase of 16.9% compared to the first quarter of this year.
Just one market saw growth in sales compared to the second quarter of 2018. As for sales declines, the very small North Shore market experienced a significant drop, but the total contraction in sales was just 10 units.
The decline in sales came as inventory levels dropped 5.6%. Three market areas saw listing inventories rise: the Central area, North Shore, and Up Country. Lower inventory levels were experienced in South Maui and the West Side.
Pending home sales in the quarter were down 2.9% from the first quarter of 2019, suggesting that third quarter closings may also disappoint.

HOME PRICES

The average home price in the region rose 2.1% year-over-year to $883,805.
Affordability continues to be a significant issue. The noticeable drop in interest rates this year has failed to stimulate sales but has allowed average prices to continue to rise.
Price changes were a mixed bag, with growth in two market areas and declines in three. The North Shore market had a 66.9% drop in prices, but this is a very small area, making it prone to significant price swings.
Even given affordability constraints in many Maui market areas, I believe home prices will rise further in 2019, though at fairly modest rates.

DAYS ON MARKET

The average number of days it took to sell a home on Maui dropped 21 days compared to the second quarter of 2018.
The amount of time it took to sell a home dropped in all markets other than in Up Country.
In the second quarter, it took an average of 53 days to sell a home. Homes in the North Shore market sold at the fastest pace, while West Side homes took the longest time to sell.
Even as sales slowed, housing demand remained strong, as the drop in market time demonstrates. I continue to anticipate we will see modestly rising activity as we move through the balance of the year.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the second quarter of 2019, I have moved the needle a little more in favor of home sellers. The market is showing some signs of trending back toward equilibrium, but we are not there yet. The lack of inventory favors sellers with continued price growth.

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Market News • August 13, 2019

Big Island of Hawaii Real Estate Market Update

by Windermere Economics

The following analysis of the Big Island real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

The tepid pace of employment growth in Hawaii continues. Only 1,200 jobs were added over the past 12 months, representing an annual growth rate of 0.2%. In June, the state’s unemployment rate was 2.8%—a figure that has remained static for the past four months—but it is up from 2.4% a year ago.

On the Big Island, total employment continues to contract, having lost 4,150 jobs over the past year. Annualized employment growth has been negative for the past nine months. The island’s unemployment rate was 4.1%, up from 3.7% a year ago.

HOME SALES

In the second quarter of 2019, 913 homes traded hands, an increase of 3.6% over the second quarter of 2018 and 30.8% higher than in the first quarter of 2019.
Sales were higher in five markets, static in two, and fell in two. There was significant growth in sales in Kau, but it is a very small market. Similarly, the contraction in sales in Hamakua can be attributed to the small size of the area.
The growth in sales came as inventory levels rose 16.6% from a year ago. However, the average number of homes for sale in the quarter was 4.9% lower than in the first quarter of this year. Listing activity remains lower than I would like to see, but the uptick in homes for sale (relative to a year ago) is encouraging.
Inventory levels rose in seven of the markets analyzed: Puna, South Hilo, Hamakua, North Kohala, North and South Kona, and Kau. This may give some relief to home buyers.

HOME PRICES

The average home price in the region dropped 5.7% year-over-year to $525,611. Prices also dropped between the first and second quarters by 2.9%.
Affordability remains an issue, but current low interest rates may stimulate buyers as we move through the balance of the year.
Prices rose in three markets but dropped in six. Appreciation was strongest in Kau, where prices rose 30.6% — again, a function of it being a very small area with limited sales.
Despite ongoing affordability issues in many Big Island market areas, I still expect home prices to rise modestly in 2019.

DAYS ON MARKET

The average time it took to sell a home on the Big Island rose three days compared to the second quarter of 2018.
The amount of time it took to sell a home dropped in four market areas and rose in five.
In the second quarter, it took an average of 108 days to sell a home. Homes sold fastest in South Hilo and slowest in Hamakua.
The recent drop in mortgage interest rates has the potential to stimulate demand as we move through the balance of 2019.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the second quarter of this year, I have left the needle fairly close to the middle, suggesting that we are approaching a balanced market. I was pleased to see the number of homes for sale increase, and the drop in home prices may suggest that home price growth has hit a peak. With this shift in the market, buyers have more choices and are able to be more selective when choosing a new home.

ABOUT MATTHEW GARDNER

Market News • August 12, 2019

Montana Real Estate Market Update

by Windermere Economics

The following analysis of select Montana real estate markets is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere agent.

ECONOMIC OVERVIEW

Montana added 5,700 new non-agricultural jobs over the past 12 months, representing an annual growth rate of 1.2%. Although Montana’s growth rate is still below the U.S. as a whole, it has picked up a little in recent months with the addition of 4,400 non-agricultural jobs in the second quarter of the year. I still believe that the state will grow employment by 1.2% in 2019. In June, the state unemployment rate was a healthy 3.5%, down from 3.7% a year ago.

HOME SALES

1,371 homes sold during the second quarter of 2019 — a drop of 5.3% over the same period in 2018.
Total sales activity was a mixed bag, with increases in five counties and declines in four. The largest annual increase was in Park County, where sales were up more than 83%. The largest drop in sales was in the very small Broadwater County.
The number of homes for sale remains well below levels I would like to see. There was an average of 1,570 listings in the second quarter within the counties contained in this report.
Low inventory levels are holding sales back. I am still hopeful we will see modest increases in the number of homes for sale as we move through the balance of the year. Even so, growth in inventory will remain modest.

HOME PRICES

The average home price in the region jumped by a remarkable 25.2% year-over-year to $413,812. The 1.8% increase over the first quarter of this year was more modest.
In addition to Madison County, Jefferson and Ravalli counties also saw double-digit price increases. Average prices dropped in the rest of the counties contained in this report, with the largest drop in the small Park County. This is a function of the size of the market and the relatively few transactions that occur there.
Price appreciation was strongest in Madison County, where home prices rose 61%, but I would add that this is a very small area where wild swings in prices are not uncommon.
The takeaway from this data is that, in aggregate, prices continue to rise but not all markets are created equal.

DAYS ON MARKET

The average number of days it took to sell a home dropped 15 days compared to the second quarter of 2018.
Homes sold fastest in Gallatin County and slowest in Madison County. Five counties — Missoula, Lake, Broadwater, Gallatin, and Park — saw days-on-market drop compared to the second quarter of 2018.
During the second quarter of 2019, it took an average of 110 days to sell a home in the region.
The takeaway here is that market time has improved compared to a year ago.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

For the second quarter of 2019, I have held the needle in the same position as last quarter. Mortgage rates continue to be at very attractive levels, which is possibly getting more buyers off the fence. However, inventory limitations persist and that will put additional upward pressure on prices.

ABOUT MATTHEW GARDNER