Living • August 20, 2024

What to Do When Water Damages Your Home

by Don Koonce

Even if you’ve done all you can to prevent water damage in your home, there’s still a possibility it could occur. During a water damage emergency, it’s important to have a plan in place and be proactive to make sure things don’t go from bad to worse.

How to Handle Water Damage In Your Home

If your home is in danger of flooding, evacuate the area until it is safe to return. In all other situations, as soon as you notice any water damage, it’s time to act quickly to prevent further damage. Water reaching an electrical source spells danger, so be sure to switch off your circuit breakers to cut the electricity. If your circuit breakers are in the same room as the source of the water damage, it’s best to stay away and call an electrician. Unplug devices from outlets as well to avoid getting shocked. In all situations, wear rubber boots, gloves, and protective gear.

After the electricity has been turned off, the next step is to find the source of the water damage. In the case of a burst pipe or a leaking hot water tank, cut the water supply by switching their shut-off valves. If the water damage has occurred in a small, contained area, you may be able to handle the repair independently. But if the water damage has spread to a large area, it will require a professional.

Moving furniture, household items, and possessions not only helps to protect them, but will also clear the area for when professionals arrive, allowing them to get right to work. If the water continues to flow while the technician is on their way, try to prevent further damage by slowing its spread using buckets, towels, and mops. These items don’t have the salvaging power of a professional’s tools, but anything you can do before they arrive could help to prevent further damage.

Water Damage – Insurance

Contacting your insurance company as soon as possible will help to navigate the situation. Find out what steps they may require you to take in the event of a flooding emergency. It’s helpful to get a claims adjuster to your home quickly to assess the situation and provide estimates on the potential cost of making repairs. Water damage can easily feel overwhelming and chaotic, but it’s important to photograph the incident. Take photos of the source of the damage, where it spread, and the damage it caused—both to the home and any personal items of value. Documenting the incident will inform your claim with your insurance company.

Whether the damage is covered by your insurance depends on the source of the problem and how your policy is arranged. If the damage was a result of an underlying condition that worsened over time, your claim may be denied. If this happens, ask for a detailed explanation to understand the gaps in your policy. This emphasizes the importance of regular home maintenance on the systems that control the water in your home. Even if you run into a costly repair, it’s better to be aware of deficiencies and fix them than to wait and be faced with a full-fledged emergency later on. Take time to review your policy as is and understand what you as the homeowner are ultimately responsible for in the event of an emergency.

For more information on how to get ahead of potential home emergencies, read Windermere’s guides on preparing for wildfires and winter storms.

Real Estate News & Information • August 15, 2024

Local Market Update – August 2024

by Don Koonce

Local Market Update – August 2024

The lazy days of summer are upon us, but home and condo sales are not the least bit idle. Just last month every area in this report saw more homes sell and for higher median prices than a year ago. And this month we’ve witnessed the year’s single biggest one-week drop in mortgage rates, which have fallen to the lowest level in 15 months. Paired with declining mortgage rates is rising inventory, with each of the areas below seeing a year-over-year increase in the supply of both homes and condos. These trends give late-summer hope to buyers who just a few months ago faced fierce market headwinds. Late summer typically sees a much slower market, but this year buyers might just be inspired and incentivized to make things hum more than usual.

In King County, the median sold price for a single-family home increased 11% year over year, up from $897,500 in July 2023 to $999,000 last month. That reversed a price decline between May and June, after May’s record high of $1,001,000. Unit sales of single-family homes also increased in July, up 10% year over year. King County condo prices also rose last month, up 4% year over year from $510,000 last July to $530,000 last month. The number of active King County condo listings is up dramatically over last year, with a 64% jump between July 2023 and the end of last month.

Despite having the region’s highest supply of homes as measured in months of available inventory, Seattle saw the median sold price of a single-family home rise 8% year over year, from $957,000 in July 2023 to $972,500 last month. The number of Seattle homes sold in July was also up 8% from a year ago. Seattle condo prices rose 2% year over year from $550,000 to $559,000, while the number of active listings rose by 44% over a year ago. Unit sales of condos dipped by 14% last month versus July 2023.

On the Eastside, home sales were robust last month, with 32% more homes changing hands than a year ago. This was accompanied by an 8% year-over-year price gain, as the median sold price of an Eastside single-family home stood at $1,620,000 last month, slightly down from June’s mark of $1,635,000. In July, 43% of home sales closed above asking price, compared to the year’s peak of 59% in April. And July’s condo prices rose 5% year over year to $627,500, despite an 83% increase in the number of actively listed Eastside condos.

By the end of July, the number of for-sale Snohomish County homes was up 38% year over year. Despite this, the median sold price of a single-family home rose 9% compared to July 2023. The Snohomish County condo market experienced a similar dynamic last month, with the median sold price rising 13% (from $495,000 a year ago to $560,000) despite a massive (137%) jump in the number of listed units. Last month, 21% more condos changed hands than in July 2023.

Similar stories are reflected throughout the markets reported above: growing supply meeting steady buyer activity leading to prices that are also holding steady. Some of these dynamics may seem counterintuitive, but they reflect a transitioning market and, combined with lower mortgage rates, a season of renewed opportunity for many buyers.

Whether you’re a buyer or seller, your Windermere advisor can shed more light on how best to navigate this market to your advantage.

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Sellers • August 13, 2024

The Pitfalls of Overpricing Your Home

by Don Koonce

When a homeowner prepares to put their house up for sale, two things are usually top of mind: how long will it take to sell and how much can we get for it. During a seller’s market, when stories of bidding wars and cash offers abound, it can be tempting to put as high a price tag on your home as possible. But even when the market favors sellers, overpricing your home can jeopardize your efforts to sell quickly and get top dollar.

Missing Your Market

The vast majority of homebuyers start their search online, and the first criteria they often enter is the price range. If your home is above the high point of their range, buyers in your target market will never even see your listing—it simply won’t show up in their searches. In addition, it’s human nature to go after the top item in a collection. Buyers want the most house they can get within their budget. This means you want to be the best house compared to those in your price range, rather than among the bottom compared to those in a more expensive bracket.

Key takeaway: You want to shine against your competition, not pale by comparison

Playing the Numbers

Selling a home is a numbers game: the more potential buyers, the greater chance of an offer. Overpriced homes get fewer showings, both in person and online. Your agent will tell you that showings are critical to capturing the interest of buyers, but if the home is overpriced, they will have difficulty attracting attention to your home. This can slow the entire home selling process, leaving both you and your agent feeling frustrated.

Key takeaway: More showings = more offers.

Going Stale

It’s also human nature to be drawn to what’s new, the bright, shiny object, as the saying goes. New listings attract the most attention—that’s when buyer interest is highest. The longer your home is on the market, the less appealing it becomes. And at a certain point, you may be forced to lower the price. Many buyers and their agents will assume the reason the house has been on the market so long, and why you had to lower the price, is because there is something wrong with it. Once the price drops begin, they can continue, which creates the risk of selling your home for less than what it is worth.
In addition, the longer your home is on the market, the more expenses you incur. Mortgage payments, utilities costs, and seller’s fees will continue to pile up, making it harder to recover from these costs when your home does eventually sell.

Key takeaway: Be the bright, shiny object.

Losing at the Last Minute

Let’s say you do find a buyer at the overpriced cost. During closing, the lender will order an appraisal of your home. If the appraiser finds that the market value of the home is less than the selling price, they could deny financing. If that happens and you are forced to put the house back on the market, buyers’ agents will be able to see that it’s a relisting, could assume something is wrong with the house and share those concerns with their client.

Key takeaway: Be realistic about value.

To get an estimate of the value of your home, try Windermere’s free Home Worth Calculator at the link below:

What is my home worth?

Living • August 8, 2024

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

by Don Koonce

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.

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Living • August 6, 2024

Beat the Heat Without AC

by Don Koonce

There’s no doubt about it: summers are getting hotter. While many of us who live in the western United States have been able to do without central AC in years past, rising temps make it more difficult to beat the heat. If installing central air is beyond your budget, try these tips to keep cool. The best part: some of them are free!

Get Low

Heat rises, so the lower you can get, the cooler you will be. Basements are often the coolest part of the house because they are low and often darker due to a lack of windows. Spend the hottest part of the day in your basement or on the lowest floor of your home. If your home has a hard time cooling off at night, consider moving your bedroom to the first floor or basement for the dog days of summer.

Go Dark

It seems a shame to block out summer sun when many of us crave that extra daylight the rest of the year. But when outside temperatures soar, that’s exactly what you should do. Use blackout shades or curtains and keep them closed during daylight hours. If you live in a region where temperatures cool down overnight, open windows as soon temps are comfortable outside and then close them again when it warms up. If you need to do chores around the house, overnight or early morning are the best times of day to do laundry or run the dishwasher, since those appliances give off heat while in use.

Stay Hydrated

Of course, sipping on a cold drink is a great way to cool down quickly, but staying hydrated is important for other reasons. In extreme heat, dehydration can happen very quickly, and it often leads to headaches and dizziness. If you’re tired of plain water or want to avoid juice and soda, snacking on cucumbers, watermelon, pineapple, citrus fruits, and cold soups like gazpacho is a great way to keep cool and hydrated—and because you don’t have to cook them, you won’t heat up your house using the stove or oven.

Take a Cold Shower

This one seems obvious, but the effects really can last for hours. For a quicker fix, try running your wrists under cool running water, or get a rag or towel wet and wrap it around your neck or place it behind your knees.

Be Creative

A fan is nice, but when it’s just blowing around hot air, it’s not doing much to cool you down. Instead, turn your fan into a swamp cooler. Hang a wet cloth over the rotors (but not the motor), place a bowl of ice cubes in front of it, or place frozen water bottles directly behind it to cool the air that is coming through the fan. And though it’s tempting to have the fan pointing directly at you, strategically placing it so that it’s circulating air will help cool down the whole room.

Invest a Little

If you’ve used all the tricks above without success and you’re willing to spend a little money, you have options that don’t involve installing central air. Mini splits have drastically increased in popularity in the past several years thanks to their efficiency and cost effectiveness. As opposed to cooling the whole house, they give you the ability to cool only the rooms you use most. Window unit or portable air conditioners can provide similar singular-room cooling for a lot less than central air. These are also good choices for homes that don’t have the ducting required for AC.

Of course, installing central air, or even mini splits, can increase the value of your home. To find out how much, get in touch with your Windermere agent.

Living • July 23, 2024

The Life Expectancy of Your Home

by Don Koonce

Every component of your home has a lifespan. Common questions asked by homeowners include when to replace the flooring or how long to expect their siding to last. This information can help when budgeting for improvements or deciding between repairing and replacing when the time comes. We’re all familiar with the cliché: They just don’t build things like they used to. And while this may be true when it comes to brick siding or slate roofing, lifespans of other household components have increased in recent years. Here are the life expectancies of the most common household items (courtesy of NAHB):

Appliances:

Among major appliances, gas ranges have a longer life expectancy than things like dishwashers and microwaves.
Chart describing the life expectancy on the most common household appliances.

Kitchen & Bath:

When choosing your countertops, factor in the life expectancies of different materials.

Flooring:

If you’re looking for longevity, wood floors are the way to go. Certain rooms in your home will be better suited for carpeting, but you can expect they’ll need replacing within a decade.

Siding & Roofing:

When choosing roofing and siding for your home, climate and maintenance level factor into the life expectancy of the material. However, brick siding and slate roofing are known to be dependable for decades.

Are extended warranties warranted?

Extended warranties, also known as service contracts or service agreements, are sold for all types of household items from appliances to electronics. They cover service calls and repairs for a specified time beyond the manufacturer’s standard warranty.

You will have to consider whether the cost is worth it to you. For some, it brings a much-needed peace of mind when making such a large purchase. Also consider if the cost outweighs the value of the item. In some cases it may be less expensive to replace a broken appliance than to pay for insurance or a warranty.

Real Estate Listings • July 19, 2024

NEW LISTING: Log Cabin on Corner Lot in Tukwila

by Don Koonce

**Open House Jul 21, 2024 • 12:00 PM – 3:00 PM**

4705 S 164th Street
Tukwila, WA 98188
$468,980

MLS #2265153
Beds: 2
Baths: 1
Size: 1,180 sqft
Year Built: 1940
Lot Size Area: 12,180.00 sqft
Garage Spaces: Yes
Heating: Baseboard

Surprise! Distinctive log cabin on ¼+ acre corner lot close to every urban convenience on the compass. Unique 1940’s homestead is move-in ready, full of light-filled freshly painted spaces, orig. honey-colored fir floors in superb condition, cozy liv rm w/ fireplace, open country kitchen. Modern finishes, newer double-paned windows, 5yr roof w / transferrable warranty. Pet-friendly backyard is completely fenced, new privacy fence on the west side. Unfinished basement has 1car garage, + space for storage or workshop. PLENTY of extra off-street parking! 5min or less to airport, all major freeways, PCC, Trader Joe’s, Old Town Burien, Southcenter; Light Rail for stadiums, downtown & beyond. Set your non-conforming spirit free-you know you want to.

Go here for more information.

Design • July 18, 2024

Pet Friendly Home Decor Ideas

by Don Koonce

For many of us, pets are important members of our household, which means our homes should be as comfortable for them as they are to everyone else who lives there. When choosing how to decorate your home, whether you’re moving into a new one or welcoming a new furry or feathered friend into the one you already live in, thinking ahead about their needs can not only create a happy space for everyone but also help with the inevitable pet-related accidents and other possible issues down the road.

Cuddly-friendly Furniture

While some pet owners refuse to let animals on couches or chairs, others love to cuddle with their furry friends on or near their laps. If you fall in with the first group, create a soft space on the floor for Fido or Fluffy to lie on when the family is relaxing. Dog and cat beds come in just about every material, color, and style you can imagine, so finding one that fits in with your aesthetic should be relatively simple.

If you’re in the second group, select furniture that can withstand the wear and tear of claws, accidents, and frequent vacuuming. Leather (or faux leather) surfaces are best for homes with animals that shed. If you prefer the feel of fabric instead, choose a couch or loveseat made from stain-resistant materials or use a washable slipcover.

Throw blankets are not only cozy, but they are also great for creating a barrier between pets and furniture, and they’re a lot easier to clean than an entire couch.

Safe Plants

Incorporating live plants and greenery is a great way to add a touch of nature to your home’s interior, but not all plants are safe for pets. While fake plants are an option, they don’t provide the extra benefit of helping to clean the air you breathe while indoors.

Rattlesnake plants, spider plants, orchids, many kinds of fern, and small palms are all beautiful additions that aren’t toxic if your pup or kitten takes a nibble. There are also many types of succulents that are pet-safe, and the spiny ones will deter a pet that’s looking for a snack or—in the case of some cats—a litter box.

Flooring

When it comes to pets, accidents are usually inevitable. As well behaved and trained as they may be, pets get sick, old, and stressed. Though messes are bound to happen, lingering stains don’t have to. Hardwood, tile, and vinyl floors make it easy to wipe up anything your pet leaves behind, as well as spills they may cause. Washable rugs come in dozens of attractive styles and are great at protecting floors, especially if you add a pet-proof pad underneath. Put plastic or vinyl mats under pet feeding areas to protect floors from spills and to prevent bits of food from spreading throughout the house.

Colors

The best way to camouflage pet hair in between sweeping and vacuuming is to select furniture, carpets, and décor items that match your pet’s coat. If you’ve got a brindle pup, calico kitty, or multi-colored animal friend, patterns will be your best bet. Florals, plaids, stripes, paisleys, and other patterns also help hide stains when those inevitable spills and accidents happen.

Hidden Essentials

Our animal buddies are sweet, cute, and cuddly, but not everything about having a pet is attractive. Litter boxes, feeding stations, and sleeping crates take up a lot of room and can be eyesores. Fortunately, furniture makers have taken notice and created pieces that are both aesthetically pleasing and functional.

For indoor kitties, litter boxes are necessary, but constantly seeing and smelling them isn’t. Get the box out of sight with a stylish litter box side table. Dogs can nap in style with a crate that doubles as an end table or nightstand. Feeding stations with storage make dinner time easy and keep unsightly bags of food hidden away.

Your love of animals doesn’t have to get in the way of living in style. These tips should help you find the right balance between the two.

Real Estate News & Information • July 16, 2024

Local Market Update – July 2024

by Don Koonce

Local Market Update – July 2024

As temperatures rise, so has the supply of for-sale homes in our area. Last month, active inventory continued its upward trajectory, which is leading to some summer price stabilization. Every region represented here saw a rise in the number of single-family homes and condos for sale in June. And while median sold prices did increase over last year in most cases, they dipped or were flat when compared to May.

Home buyers needing a little more time to find the right home can breathe a bit easier. With the rate of price increases slowing and the number of available single-family homes growing, there’s a little less pressure to act quite as fast as springtime bidding wars necessitated. While it’s still a seller’s market, buyers who’ve been sitting on the sidelines can now dip their toes back into a somewhat mellower market. That said, in hot areas like the Eastside, half of homes sold in June closed above list price and in an average of five days.

Let’s break it down by area to see what’s heating up and cooling down this summer.

In King County, the median sold price for a single-family home increased from $935,000 in June 2023 to $965,000 last month. However, June sold prices decreased by 4% from May’s record-high price of $1,001,000. While these numbers likely reveal the effect of higher inventory, 43% of King County homes sold in June closed above list price. As of June 30, active residential listings were up 31% year over year and 12% month over month. King County condo prices rose 5% year over year from $529,975 last June to $555,090 last month. The increase is despite a 75% year-over-year jump in the number of active condo listings, up from 832 units on June 30, 2023, to 1,453 last month.

In Seattle, residential sold price increases are showing signs of slowing, with last month’s median of $957,000 up just 3% from a year ago and dropping 1% between May and June. This trend is likely a result of the healthy dose of new listings inventory over the past few months, as buyers now have more options and bidding wars have lessened. June saw many more residential listings hit the market, and by month’s end inventory was up 30% from the end of May and 27% year over year. Seattle condo prices stayed flat month to month at $550,000. Sensing calmer pricing on the horizon, it will be interesting to see if some potential condo buyers might be able to give the single-family housing market a second look.

The June residential real estate market on the Eastside saw substantial year-over-year price gains but experienced a 4% decrease from May’s median sold price. Half of the homes sold in June received multiple offers, with the sales price exceeding the original asking price by a median of 7 percent. While these figures show a healthy seller’s market carrying over from May to June closings, the remaining summer months are likely to provide more balance for Eastside buyers, with fewer multiple offers and lengthening market times. June saw a growing supply of homes: the number of active residential listings rose 16% over the course of the month. Eastside condo prices dropped year over year from $650,000 last June to $637,500 last month, and the supply of listed condos grew by 19% during the month.

Snohomish County single-family home prices rose 7% year over year, up from $774,975 in June 2023 to $830,000 this June. Month-over-month prices, however, were flat: the median residential sold price was $830,000 in June versus $828,000 in May. The number of active listings was up 38% year over year and 21% higher at the end of June than at the end of May. Increasing inventory is happy news to home buyers and may help moderate prices in the coming months. The median sold price for a Snohomish County condo in June was up 5% against last year but down 5% from May. Between June 1 and June 30, there was a 26% increase in the number of active condo listings in Snohomish County.

In all markets reported above, the same trend lines have formed: price increases are slowing – or stopping altogether – and inventory is growing. The strong spring seller’s market has given way to a summer of more balance, with renewed opportunity for many buyers.

Your Windermere advisor can provide a clear, real-time picture of the market and its summertime trends, focusing on your priorities and presenting the best match for your real estate goals.

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Buyers • July 11, 2024

So You Bought an Investment Property, Now What?

by Don Koonce

Congratulations on your new investment property! Now comes the exciting part: Turning your property into a revenue-generating machine. While it’s not exactly easy, your goals are within reach if you take steps to organize, plan, and build a solid foundation. Here are some ways to help maximize your property’s potential in the short and long term while avoiding future headaches.

Ensure your property is up to code

At a minimum, your new investment property should be safe and livable. This isn’t just the right thing to do, it will also shield you from liability and help attract better tenants. Start by repairing the necessities using your home inspection report as your guide. Prioritize issues that could lead to bigger problems down the road, such as a leaky roof or holes in the closet that could lead to infestations. Ensure that all appliances are in top working condition, including the furnace or other heating system, and that the plumbing and electrical are up to code.

Also make sure the property complies with all local and state laws regarding the presence of mold, lead paint, asbestos, and other potentially hazardous substances.

Choose a property management team

While you can manage the property yourself, hiring a good property management team will reduce stress and likely save money over time. Property managers handle tasks such as rent collection, maintenance, tenant screening, and marketing your property. They also oversee complaints, so you don’t have to deal with upset or difficult tenants.

To find a reliable property management team, start by asking for recommendations from friends, family, or other real estate investors. Also check reviews on specialized property review sites. When interviewing potential managers, ensure they have experience with properties like yours and assess their responsiveness and communication skills, as you need a manager who keeps you informed and addresses issues promptly.

If the management fee is too steep and you decide to go it alone, curate a list of reliable plumbers, electricians, appliance repair companies, and handymen to handle maintenance requests. Also thoroughly screen tenants to ensure they’re reliable and will take good care of your property.

Enhance the property appeal

Before you rent the property, consider cost-effective renovations to enhance its appeal and rental value without breaking the bank. For the kitchen, consider refacing or repainting cabinets, upgrading to energy-efficient appliances, and installing modern faucets and light fixtures. Bathroom options include updating faucets, showerheads, and flooring. Other improvements that may attract higher-paying tenants include refinishing the floors, upgrading to energy-efficient doors and windows, and hiring a gardener to improve the landscaping.

Consider different rental strategies

Regular maintenance is crucial to maintain the property’s value and prevent costly repairs. Coordinate with your tenants to schedule periodic maintenance checks, and create a list of maintenance tasks to address when tenants are on vacation or between renters.

Property owners have traditionally concentrated on long-term rentals. However, the rise of short-term rental platforms like Airbnb and VRBO have shifted the landscape for some. Long-term rentals are idea for owners seeking a stable income, as turnover is typically low and monthly revenue is predictable. On the other hand, short-term rentals can command higher nightly rates, but they usually involve more expensive and time-consuming management and upkeep. Plus, reservations can be unpredictable, particularly in areas with seasonal fluctuations.

Set competitive rental rates

Property management teams generally recommend an optimal rent based on a comprehensive market analysis, helping you achieve the highest return on your investment. If you’re managing the property yourself, you can perform your own analysis by researching comparable properties (“comps”) on websites like Craigslist or Trulia. Consider factors such as your property’s location compared to the comps, and whether your property includes coveted features like air conditioning, a washer/dryer, or ample outdoor space. Proximity to good schools and local amenities such as restaurants are also valued by renters.

Keep in mind that for your investment to be profitable, your rental income must cover expenses such as mortgage payments, taxes, management fees, insurance, and ongoing maintenance costs. Make sure to periodically review and adjust the rates to remain competitive and maximize your income.

Market your property effectively

As with rental rates, your property management team typically lists and markets the property, so you’re off the hook here. However, if you’re managing solo, you need to think like a product marketer, using tools like high-quality photos, virtual tours, and compelling descriptions to make your property stand out. First impressions matter, so lead with a well-lit, inviting photo. Bright images convey a clean, move-in-ready home, while dark photos can scare tenants away by making the property appear dirty and uninviting. Consider hiring a professional photographer to ensure the lighting and framing are perfect in every room.

Review other listings to gather inspiration for your own. Highlight unique selling points over standard features, especially if the latter are evident in the photos. Think about what would attract you as a renter. Is it simply a garage with two storage cabinets? Or is it a spacious garage with a shop-ready layout, including two 220V circuits, two sturdy workbenches, and built-in storage?

Master the legal and financial details

Owning an investment property comes with legal rights and responsibilities for both you and your tenants. It’s crucial to familiarize yourself with local rental laws, zoning regulations, and tenant rights to prevent legal liabilities and handle any issues that may arise effectively. Additionally, obtaining landlord insurance is essential to protect against potential property damage and liability.

And remember, owning an investment property lets you take advantage of tax deductions for mortgage interest, property taxes, repairs, and depreciation. Keep detailed records of all income and expenses to ensure you maximize these deductions and continue to earn a profit.