Design • September 4, 2025

How to Bring Coastal Charm into Your Home No Matter Where You Are

by Don Koonce

Coastal interior design captures the calm elegance of life by the water. It’s bright, breezy, and effortlessly connected to nature, drawing inspiration from the textures and warmth of the shore, the shifting blues of the sea, and the weathered charm of driftwood and dune grass. This style invites the outdoors in, creating spaces that feel open, welcoming, and dreamy, no matter how far you are from the coastline.

Defining Features of Coastal Interior Design

Natural Materials

Coastal design embraces organic textures that feel relaxed and lasting, mirroring the landscape along the shoreline. Wicker and rattan furniture bring a light, casual elegance, while woven jute or sisal rugs add earthy texture underfoot. Weathered or reclaimed wood, whether used in furniture, ceiling beams, or accent walls, offers a sun-worn character that feels authentic to seaside living. Glass elements, including vases, oversized mirrors, and light fixtures, reflect light and mimic the clarity of water, while stone or pebble accents can subtly reference the beach and coastline. Even fabrics play a role, typically with cotton, linen, and other breathable, natural fibers, keeping the look feeling fluid and inviting.

A Coastal Color Palette

The colors of the coast bring this style to life. Crisp whites and soft creams create a fresh, open backdrop, while sandy beiges and sun-bleached wood tones add warmth and a lived-in ease. Layered into this foundation are sea-inspired blues in every shade, from the pale, airy blue of a summer sky to the rich, grounding depth of navy. Small pops of teal, aqua, seafoam green, and even coral can bring a burst of energy, infusing the space with the vibrant, refreshing spirit of life by the water.

Light, Airy Spaces

Abundant natural light is central to coastal interiors. Large windows, double-glass French doors, and open layouts blur the lines between inside and out. Sheer linen drapes catch the breeze, while white or pale walls reflect light to make rooms feel even more expansive. One of the advantages of using natural materials in coastal design is that they age gracefully, gaining character over time while preserving the fresh, airy feel that helps define this style.

Subtle Nautical Touches

Coastal design often incorporates gentle, well-chosen nods to the sea. Rope accents woven into mirrors or light fixtures, bowls of collected shells, or artwork featuring surfboards, sailboats, and marine life can all bring a hint of nautical charm. Avoid an overly beachy look by balancing nautical accents with clean lines and neutral tones. These elements should evoke the feeling of the coast rather than recreate it literally, keeping the space elegant, storied, and timeless.

Built-In Charm

Architectural details like white-washed built-in shelving, wood-clad ceilings, or wall paneling give coastal homes a sense of craftsmanship and permanence. These features provide the perfect stage for displaying curated coastal finds like sea glass, ceramics, or woven baskets.

Bringing the Look into Your Home

You don’t need an ocean view to enjoy the beauty of coastal design. Start with a light, neutral foundation and layer in soft blues, sandy tones, and natural textures. Choose furniture that feels comfortable and unfussy, and incorporate elements that remind you of the shore, whether that’s a woven jute rug in the bedroom, a driftwood coffee table, or a few well-placed nautical pieces.

Candles or diffusers with fresh, sea-inspired scents can enhance the atmosphere, creating the sensory experience of a salty ocean breeze. And if you’re looking for real-life inspiration, a visit to Seabrook, WA, can spark ideas with its homes and community spaces being a masterclass in blending classic coastal styles with modern living.

For more design inspiration, tips, and trends, visit the design section of our blog.

These Seabrook listings showcase how coastal style blends comfort, light, and seaside charm.

Real Estate News & Information • September 2, 2025

What The Ballooning National Debt Means For Housing

by Don Koonce

For Americans already struggling with the highest mortgage rates in a generation, new legislation out of Washington promises little relief. The “One Big Beautiful Bill Act” (OBBBA) will add trillions to the national debt over the next decades, further cementing an era of expensive borrowing.

The basic laws of supply and demand suggest this surge in government debt issuance will push interest rates even higher for everyone, straining the already-frozen housing market and increasing costs for all types of credit.

The one silver lining, though, is that the sooner lenders accept our “higher for longer” new world of interest rates, the sooner they can stop worrying so much about prepayment risk, which may shrink the spread they charge above 10-year Treasury yields. Below, we’ll explore how national debt impacts real estate.

As Uncle Sam borrows ever more, everyone’s interest rates will rise

The One Big Beautiful Bill Act, enacted this summer, puts the pedal to the metal for debt accumulation over the next decade in the U.S. The Committee for a Responsible Federal Budget estimates that it will add a cumulative $5.5 trillion to the debt by 2034, under the realistic assumption that its provisions written to expire will instead be extended, as has become normal in federal budgeting.

Even taking the expirations at face value, though, the bill raises deficits by a cumulative $4.1 trillion, an extraordinary choice in the midst of an economic expansion and coming on the heels of the worst bout of inflation in decades.

The issuance of trillions of dollars of additional debt in the next several years is expected to drive up interest rates. The Budget Lab at Yale has estimated that the bill will raise 10-year Treasury yields by about half a point in the next several years and by more than 1.4 points in the very long run.

This is driven in part by their modeling assumption that the Federal Reserve will succeed at keeping inflation close to 2 percent, which will require higher interest rates in the long run. They also expect a higher term premium on long-term debt, like 10-year Treasuries.

Altogether, this paints a picture of government borrowing crowding out private borrowing — as the Treasury issues more debt to finance its deficits, yields must rise to compensate investors. Other debt in the economy, such as mortgages, must yield more as well, in order to compete with Treasury bonds for lenders.

High interest rates have already frozen the housing market

While the U.S. economy continues to grow, the U.S. housing market has been stuck in neutral for over three years. Ever since mortgage interest rates rebounded from all-time lows below 3 percent for 30-year loans in 2020 and 2021, to generational highs above 7 percent in 2023, existing-home sales have been stuck in the neighborhood of 4 million annual sales.

It’s no surprise that fewer homes are changing hands than during the 2021 low-interest-rate boom, but 4 million is much fewer than even prevailed during the 2010s. In fact, 2024’s total of 4.06 million existing-home sales was the lowest total since the 1990s. The housing market is caught in a perfect storm, keeping homeowners frozen in place, thanks to the one-two punch of high price-to-income ratios and high mortgage rates.

While the OBBBA includes some sweeteners for certain homeowners, like the expansion of the state and local tax deduction cap to $40,000, the main long-term effect it promises for housing is just higher interest rates.

One near-term trend likely to help mortgage borrowers: a thinner spread

Bigger deficits, bigger debt, higher interest rates — the long-term fiscal outlook is getting darker. But there’s one silver lining that has begun to shine around the edge of these gathering clouds. The mortgage-Treasuries spread has begun to narrow again, resuming its progress back down toward pre-pandemic levels. The spread, here, refers to how much higher 30-year mortgage rates are averaging than 10-year Treasury yields.

In the 21st century, up to the pandemic, mortgage rates rarely exceeded 10-year Treasury yields by more than 2 percentage points, except during the global financial crisis. When mortgage rates soared back up in 2022, part of their climb was due to the widening spread. The two major reasons for widening spreads are a greater prepayment or refi risk on mortgages and interest rate volatility.

The latter has gradually faded this summer after spiking amidst tariff uncertainty in April. But the prepayment risk component is the bigger factor. For lenders and the investors who buy mortgage-backed securities, mortgages issued at high interest rates are uniquely risky because borrowers are expected to refinance them once mortgage rates fall back down.

The lack of a prepayment penalty for borrowers makes U.S. mortgages uniquely favorable to homebuyers here. If rates rise, they win by virtue of having locked in a lower rate; if rates fall, they can always refinance. Investors and lenders, by the same token, view refinancing as a unique downside to holding mortgages. They want a reliable coupon stream from mortgage holders’ monthly payments.

Seeing their loans wiped out by refinancing, replaced by cash in a new lower-interest-rate world, is a risk for which they must be compensated to make the loan in the first place.

That extra compensation for prepayment risk helped explain why mortgage rates soared even more than 10-year Treasury yields in 2022 and 2023. Now, though, as the reality sets in that we are living in a world where interest rates are “higher for longer,” lenders have gradually brought mortgage rates down relative to Treasuries, from about a 2.9-point spread in 2023 to 2.4 in recent months, or about one-third of the way back to normal.

The sooner investors conclude that refinancing prepayment risks aren’t so high, the sooner the spread can come down. The potential bankshot silver lining of the OBBBA? By putting a nail in the coffin of hopes for low interest rates, it may help further shrink the spread, so that higher 10-year Treasury yields don’t have to mean higher mortgage rates one-for-one.

Ultimately, the nation’s fiscal path points toward a new normal of higher borrowing costs for all. The “One Big Beautiful Bill Act” serves as an accelerant, solidifying a “higher for longer” interest rate environment that will impact everything from car loans to corporate debt. For the beleaguered housing market, this presents a bittersweet trade-off.

The bad news is that the foundational interest rate, the 10-year Treasury yield, is set to climb. The paradoxical good news is that by killing the hope of a return to ultra-low rates, the OBBBA may continue to shrink the risk premium lenders charge on mortgages. This narrowing spread won’t turn 7 percent mortgages back into 3 percent loans, but it might help us work our way back down closer to 6 percent.

Jeff Tucker is the Principal Economist at Windermere Real Estate in Seattle, WA. This blog was originally published on Inman News on 8/26/25.

Design • August 28, 2025

What is Colonial Style Architecture?

by Don Koonce

With its grand stature and signature look, Colonial architecture hearkens back to the nascent days of British settlement on American soil. Since then, the classic home style has seen waves of renewed interest, giving rise to multiple variations on the colonial theme. Today, they remain a popular choice for homeowners throughout the Eastern and Southern United States.

History of Colonial Style Architecture

Like the Cape Cod home style, the roots of Colonial architecture took shape as European settlers made their way to American shores and began to develop their homesteads. A century later amid the country’s centennial celebrations, a new wave of interest in colonial homes took hold. This gave way to the Colonial Revival period, which saw architects and home builders molding the settlers’ early home designs into something more suited for the needs of modern life. Several variations were born during this time, including Georgian, Dutch, French, and others.

Image Source: Getty Images – Image Credit: korisbo

What is Colonial Style Architecture?

Colonial homes are easily identifiable, with symmetric and traditional exteriors that allow their signature characteristics to stand out. Their spacious interiors prioritize comfort, with common living areas and bedrooms typically located on different stories. Here are some common elements of colonial home design.

Symmetrical façades and windows with a central door
Shuttered windows for protection against the elements
Rectangular shape with either a central or double chimney
Built of brick, wood, or stone, depending on the region and era of construction
Pitched roofs with side gables
Front porch columns, typically framing the door
Grand entryways
Living spaces on ground floor, bedrooms located throughout second or third stories
Hardwood floors
Decorative moldings

To learn more about the various home styles from A-Frame to Victorian, head to our Architectural Styles page.

Featured Image Source: Getty Images – Image Credit: lillisphotography

SOLD • August 26, 2025

SOLD: Custom-Built Home in Leschi + Beautiful Fox Glen Home

by Don Koonce

LISTING NOW UNDER CONTRACT

215 31st Avenue
Seattle, WA 98122
$1,400,000

Beds: 4
Baths: 3
Size: 2,340 sqft
Days on OneHome: 3

Extraordinary offering! Custom-built one-owner home on grand 12,000 sqft. lot with territorial views in Leschi. Unique multi-level design, tongue and groove ceilings, hardwood and parquet flooring, sunroom, skylights, huge Primary bedroom with private bath. Expansive yard and wrap around decks for entertaining, mini-splits for A/C. Secure parking in two-car garage + guest parking in driveway. All within short hop to nearby Leschi shops, eateries, Lk WA, parks & bike paths. Metro #27 just 2 blocks away goes downtown Seattle, Judkins Light Rail approx. 1 mile for UW, International District, SeaTac International and beyond. Golden opportunity to reinvent/renovate, live on a rare estate lot in dream location. Any development potential to be verified by Buyer.

UNDER CONTRACT FOR BUYERS

8810 47th Street W
University Place, WA 98466
$624,950

Beds: 3
Baths: 3
Size: 1,788 sqft
Days on OneHome: 3

Beautiful 3BR, 2.5BA Fox Glen home nestled in a quiet cul-de-sac in a secluded “one way in, one way out” neighborhood. Enjoy an open-concept layout with oak hardwood floors, gas fireplace, and a spacious kitchen that flows to a large deck with hot tub. Tankless water heater, bonus room downstairs, and a full 2-car garage with workshop space. Set on a serene lot in desirable University Place, close to shopping, dining, Chambers Bay, and award-winning schools.

Sellers • August 21, 2025

Sustainable Upgrades That Help Your Home Sell for More

by Don Koonce

Selling a home begins with understanding how much it’s worth. After an initial assessment, you may want to make some updates to increase the value of your property. There are several ways to do that, including boosting your curb appeal or making renovations with significant ROI potential. As you research potential projects, keep in mind that making your home more sustainable can boost its value to potential buyers. In today’s market, many buyers are looking for eco-conscious features that offer long-term savings, lower utility bills, and improved health and comfort at home. Making the right green upgrades can help your home stand out. Talk with your agent to identify which of these five upgrades makes sense for your home before it hits the market.

Five Green Upgrades that Increase Your Home Value

1. Energy-Efficient Appliances

It’s no secret that appliances use a significant amount of energy, which means there is plenty of opportunity to cut back on their output. Installing energy-efficient appliances can do wonders for creating a more eco-friendly home, while appealing to buyers who value sustainability. And as many cities move toward energy codes that limit or eliminate the use of natural gas, energy-efficient electric appliances are becoming an important part of future-proofing your home. When shopping around, look for appliances with high-efficiency or Energy Star certifications. They may cost more to purchase, but their ability to generate long-term savings is a concrete selling point.

2. Tankless Water Heater

As the shift toward eco-friendly appliances has picked up steam, so too has the preference for tankless water heaters. Whereas standard storage tank water heaters keep a reservoir of hot water at the ready, tankless water heaters heat your home’s water supply on demand. It’s similar to a new car that shuts off its engine when sitting idle, as opposed to an older car whose engine is running all the time. Tankless water heaters don’t come without their share of costs. An upfront investment will be required for purchase and installation, but it will deliver immediate savings on energy bills.

3. Solar Panels

There are many benefits to going solar, but for sellers, the positive effect solar energy has on home values is chief among them. A solar-capable home is a surefire way to drum up buyer interest. By taking care of the upfront installation costs, you allow the buyer to focus on the benefits of solar energy, i.e., the long-term energy savings, the reduced utility bills, and the reduction in the property’s carbon footprint. Depending on your location, you may also be eligible for local or federal tax credits, utility rebates, or other incentives that can offset these installation costs. Work closely with your real estate agent to understand how solar energy has affected home prices in your area to get an idea of the project’s ROI potential.

4. Water Filtration

Installing a home water filtration system is one of the best ways to cut down on your home’s waste while increasing its value. These filtration systems appeal to buyers for a variety of reasons. Of course, there are an array of health benefits to having filtered water running through the entire house. Buyers can be assured that the water is safe to drink, they will be bathing and showering in clean water, and there is a reduced risk of plumbing issues due to contaminated water. Beyond the personal health benefits, it can also cut down on bottled water costs and the amount of landfill waste produced within the home. Some whole-home water filtration systems also come with smart sensors that track usage, detect leaks, and monitor filter lifespan, adding a layer of convenience and long-term savings for homeowners.

5. Energy-Efficient Windows

Alternatives to traditional windows have become more popular in recent years. Energy-efficient windows are better insulated, which helps to regulate temperatures inside the home and protects against harmful ultraviolet rays. Their ability to help regulate your home’s heating and cooling leads to energy savings and reduced carbon emissions. Energy-saving windows can be highly valuable to potential buyers, especially if you live in a climate with extreme temperatures.

In addition to temperature regulation, many buyers also appreciate how modern energy-efficient windows help with soundproofing—a big plus in urban or suburban neighborhoods.

Bonus Upgrades to Consider

If you’re looking to go a step further, here are a few more eco-friendly upgrades that may increase your home’s value and appeal:

Smart thermostats automatically adjust heating and cooling based on your schedule, saving energy and offering buyers convenience.
Upgrading to high-efficiency insulation in walls, attics, or crawl spaces can significantly reduce energy costs.
With electronic vehicles becoming more common, having a dedicated outlet or charging setup at home is a huge plus for future-minded buyers.

For more tips on the selling process, visit the selling section of my blog.

Blog – Selling

Real Estate News & Information • August 19, 2025

Local Market Update – August 2025

by Don Koonce

Price gaps between 2024 and 2025 began to narrow across all four markets in July. Even with softer prices, sales activity remained slow in most areas, doing little to offset the growing inventory. Today’s discerning buyers have more choices and are taking the time to wait, watch, and negotiate for the right home. And with the days of 3% interest rates likely behind us, affordability remains a hurdle for many across the Puget Sound. Getting buyers off the sidelines may depend on seller flexibility and broader economic forces.

In July, King County’s median sold price for a single-family home held steady at $1,000,000, nearly unchanged from last year. Active listings climbed 43% year over year, while pending sales rose just 2% and closed sales dipped 1%. Still, competition was brisk for the homes that did sell — 76% went under contract within 30 days. King County condos followed a similar pattern: the median price remained flat at $530,000 and active listings jumped 41% compared to last year.

On the Eastside, July’s median residential sold price dipped 2% year over year to $1,580,000, as buyers faced no shortage of options. Pending sales were down 6% and closed sales fell 8%, helping put active listings up 90% from last year to their highest level since 2011. And buyers took advantage — more than 60% of homes sold below asking or after a price change. Meanwhile, Eastside condos held steady at a median sold price of $629,000 and active listings surged 84% from a year prior.

Seattle’s active listings rose a modest 19% compared to July 2024, hinting at inventory leveling off. Pending sales were up 18% year over year — the strongest gain among our four markets — which likely helped lift the median residential sold price to $1,010,000, a 4% increase. Competition remained strong, with 81% of homes selling in 30 days or less. In Seattle’s condo market, active listings climbed 29% while the median price edged down 2% to $550,000.

Snohomish County’s inventory levels grew 48% from last July, pushing the area into a balanced market. Closed sales rose just 1% year over year, while pending sales remained flat. The median sold price for a single-family home slipped 2% to $805,000. The county’s condo market saw more dramatic shifts: active listings soared 83% and the median sold price dropped 5% to $529,975.

Across the Puget Sound, July’s trends point to a market in transition — one where pricing is starting to stabilize but sales momentum hasn’t yet caught up. Elevated inventory is creating opportunities for buyers, while sellers refine their strategies to stand out. The second half of the year may hinge on how economic confidence and seasonal demand play out. In this evolving landscape, partnering with an experienced Windermere agent can provide a clear advantage.

Click here to read more.

Buyers • Sellers • August 14, 2025

What You Should Know About the Multiple Listing Service (MLS)

by Don Koonce

In the process of buying or selling a home, you’ll frequently come across the term “MLS.” The Multiple Listing Service (MLS) is a group of regional databases of homes for sale accessible only to real estate agents and brokers. Their ability to access the MLS makes it easier for buyers to find the right home and for sellers to market their listings.

What is the Multiple Listing Service (MLS)?

The purpose of an MLS is to facilitate real estate transactions by connecting real estate agents and making it easy for them to share information about active listings and sold home data. For buyers and sellers, your agent’s access to the MLS means you’ll be connected to the largest network of homes and listing information on the market.

There are over 500 independent MLSs across the United States, with each MLS showing the homes for sale in a particular geographic region. Listing agents add their clients’ listings to the database—providing photos and detailed information about the property—so buyer’s agents can show them to their clients. The MLS allows for customizable searches, which agents use to easily identify the homes that match their clients’ criteria. The vast amount of historical data available on the MLS is what your agent will use to conduct their Comparative Market Analysis (CMA) to competitively price your home. The listing data in the MLS is fed to real estate brokerage websites, such as Windermere.com, so that buyers can search for homes on their own as well.

Benefits of the Multiple Listing Service (MLS)

Selling a home is a numbers game. The more potential buyers you can reach, the more likely you are to find the right buyer in a timely manner. After your agent conducts their CMA to determine the value of your home, they’ll upload the listing to the MLS. Here, they can add additional information beyond what you would find in a typical listing description, such as showing times, contact information, and more. The MLS provides maximum visibility for sellers by connecting them to buyer’s agents who are actively searching for listings. In today’s market, many MLS platforms offer mobile-friendly tools and agent apps, making it even easier to track showing requests, market updates, and search results on the go. Some even use AI to help agents identify pricing trends or recommend homes that match specific client needs.

The MLS has also helped to make the industry more equitable. Many MLSs enforce policies that promote fair and equitable access to listing data. This includes rules that require agents to submit a listing to the MLS within 24 hours of public marketing, along with principles from the Fair Display Guidelines, which aim to ensure that property listings are represented transparently and are easily accessible. Small real estate brokerages have access to the same MLS info as large companies, putting everyone on a level playing field.

For buyers, the MLS means greater transparency. Agents can set up auto-alerts based on your criteria and ensure you’re seeing listings as soon as they go live. Because the MLS is updated in real-time by licensed agents, it’s often more reliable than national search portals when it comes to availability and details.

What is an MLS number?

An MLS number is a unique code for each home listed on the market. It makes it easier for agents to communicate regarding a specific property. This number also helps agents quickly pull up detailed reports, schedule showings, and share links directly with their clients. If you ever have a question about a home you’ve seen, providing the MLS number ensures your agent can locate it fast.

Design • August 12, 2025

How to Design Small Spaces at Home

by Don Koonce

The truth is, the average size of apartments in the U.S. is shrinking, and studio and one-bedroom apartments are becoming more prevalent (rentcafe.com). This means knowing how to design for small spaces has never been more important. Whether you’re not quite ready to purchase a home or you’re looking to downsize, the creative possibilities are endless for maximizing square footage at home without sacrificing comfort or style. Let’s dive into some of the ways you can transform your home by making the most of your space.

Small Space Design Ideas

Multifunctional Furniture

All your essential items have to go somewhere, but how do you find a right place for everything without taking away from the rest of your home? Multifunctional furniture can be a lifeline for finding storage space without cluttering your home. Explore ottomans that have compartments to stow blankets, magazines, and other living room items. Folding desks can also ease the burden of storage without getting messy. Thanks to items like these, you can avoid investing in an outside storage unit just because you have limited square footage at home.

Contemporary Interior Design

Image Source: Getty Images – Image Credit: KatarzynaBialasiewicz

Maximize Vertical Space

Fortunately, there’s more space available to you than the floor surface area of your home. Storage can be arranged vertically with items like hanging shelves and drawers. This can be especially helpful in the kitchen, where getting items up and away from the more cluttered areas within reach will clear counter space and make the space feel more open and inviting. Wall-mounted magnetic strips for knives and hanging racks for pots and pans can clear significant space.

Simple Kitchen Makeover Ideas

Image Source: Getty Images – Image Credit: enigma_images

Embrace Minimalism

When you move into a smaller space, you’ll be faced with a question: what do I really need? With only so much room available, this is the perfect opportunity for an exercise in minimalism. Paring down your possessions will reduce clutter and make the smaller spaces in your home feel roomier. Consider purchasing a bed with built-in storage drawers, which can eliminate the need for a bulky dresser in the bedroom. Get creative with floating shelves to lessen the need for large bookshelves and credenzas. Though these are common furnishings, they take up space and tend to dominate smaller rooms.

5 Features of Mid-Century Modern Interior Design

Image Source: Getty Images – Image Credit: Aleksandra Zlatkovic

With a touch of creativity, you can transform your home’s interior while maximizing your square footage, and most importantly, making your home feel more like you. For more tips on remodeling and more, visit the Living category of our blog:

Windermere Blog | Living

Featured Image Source: Getty Images – Image Credit: xavierarnau

Buyers • August 7, 2025

What Is a Homeowners Association and How Much Are HOA Fees?

by Don Koonce

Becoming a homeowner comes with many responsibilities, but if the home you’re purchasing requires you to be part of a Homeowners Association (HOA), you’ll have to follow additional guidelines and pay additional fees. As you’re looking for homes, talk to your agent about whether purchasing a home that’s part of an HOA is right for you.

What is a Homeowners Association (HOA)?

A Homeowners Association is an organization that governs a community of homes. Homeowners within the governed community must follow certain guidelines for property upkeep and maintenance and will face restrictions on their ability to make additions and/or changes to the property. These rules exist to maintain a standard level of quality amongst the community to maximize property value.

Different HOAs may have different stipulations based on the type of housing they govern. For example, an HOA may oversee a community of detached single-family homes, but they are commonly found in communities of condo or townhome housing styles where there is a shared, communal living style. Each HOA has a Board of Directors in charge of enforcing rules, collecting fees, and managing the funds, and certain associations may hire a third-party management company to help the Board of Directors carry out their operations. The members of an HOA are the residents who live in that community. Here are some examples of typical HOA property restrictions:

Exterior paint color choices must be submitted for approval
Grass must be mowed regularly
Flower beds must be kept weed-free
Noise regulations and/or noise curfew
Pet restrictions (type of animal and/or number of pets per household)

Homeowners Association (HOA) Pros and Cons

Living in an HOA community means your property will maintain its curb appeal and you can live with the knowledge that systems are in place to protect property values. However, the benefits come with additional restrictions on your freedoms as a homeowner while increasing your monthly payments.

Image Source: Getty Images – Image Credit: mphillips007

How much are HOA fees?

If you buy in a development governed by a Homeowners Association, you will be required to pay HOA fees on top of your monthly mortgage payment. Typically paid monthly, HOA fees go toward the neighborhood’s shared spaces, property maintenance, and amenities. Homeowners Association fees vary greatly depending on the particulars of that community’s agreement. These fees often cover landscaping costs, parking, community security, garbage pickup, maintenance and repair, insurance, and other amenities, such as a shared pool or gym. If the home is your primary residence, your HOA fees are not tax-deductible.

HOA fees are an additional expense you’ll have to budget for when buying a home. To get an idea of what you can afford, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price, accounting for any HOA fees you may incur.

Sellers • August 5, 2025

Understanding the Value of Your Home: Market Value vs. Assessed Value and More

by Don Koonce

The math of a home sale is relatively straightforward. Sellers list their home at a certain price, a buyer makes an offer, and eventually the two parties reach a final, agreed-upon price. However, between these two points in the selling process, there are several other figures that go into to setting a home’s value that you should be aware of. Your real estate agent will be your best resource in interpreting the different values associated with your home and what they mean as you prepare to sell.

Understanding the Value of Your Home

Listed Price (Asking Price)

Also known as an asking price, the listing price of a home is the price at which a seller lists their property when it goes on the market. The listing price is a gross price, meaning the costs associated with selling the home are not included. A real estate agent’s Comparative Market Analysis (CMA) will accurately set your home’s listing price, accounting for the various factors that influence home prices including location, condition, seasonality, local market conditions, and more.

The listing price is a starting point for negotiations with buyers. You may receive an offer that matches your asking price, but it’s common for buyers to make offers at other price points. You can either accept, reject, or make a counteroffer in response until you and the buyer reach an agreement.

Whether you’re selling in a buyer’s market or a seller’s market may determine you and your agent’s approach to the listing price of your home. There may be certain pricing tactics you can employ to either drive buyer attention or increase competition, but if your home’s listing price strays too far from its market value (see below), it could stay on the market for longer than you expected.

Market Value

As a seller, you’re interested in what buyers are willing to pay for your home. By taking into account a home’s condition, size, curb appeal, and features, as well as local market conditions and what comparable homes are selling for, a home’s market value reflects the price buyers will pay for a property.

Appraised Value

A home’s appraised value is determined by a professional appraiser to ensure that the lender is loaning the correct amount of money for the home. Appraisers assess the home’s layout and features, square footage, gross living area (GLA), overall condition inside and out, home updates and remodels, and more. If the appraised value comes in too low or too high, the buyer and seller must renegotiate for the deal to go through. In competitive markets, buyers may include an appraisal gap guarantee in their offer, which states that the buyer will cover the difference between the price of the home and the appraised value.

Sale Price (Purchase Price)

Also known as the purchase price, your home’s sale price is what it ultimately ends up selling for. Once you and the buyer have reached an agreement on the terms of the transaction, the buyer will have the home inspected and final negotiations may occur based on the findings of the inspection. Familiarize yourself with the Common Real Estate Contingencies buyers may include in their offer and what they mean when selling your home.

Net Proceeds

So, how much do you actually make on the sale of your home? After subtracting the total costs of selling from your home’s sale price, you’ll arrive at your net proceeds. This is the amount you walk away with from the transaction.

Assessed Value

Your agent’s CMA is a reliable method of determining your home’s value for its eventual sale, but its assessed value is used for taxation purposes. Employed by local municipal or county entities, an assessor will conduct a review of your property to determine its assessed value. The assessor’s findings are passed to local tax officials, who use that number to calculate the home’s property taxes.

Featured Image Source: Getty Images – Image Credit: kupicoo