Sellers • September 9, 2021

The Difference Between an Appraisal & a Comparative Market Analysis

by Don Koonce

It can be difficult for sellers to distinguish between two methods of finding the value of their home: a Comparative Market Analysis (CMA) and a home appraisal. Though they share many similarities, there are key differences in how the two approaches ultimately arrive at a listing price for your home.

The Difference Between a Comparative Market Analysis and an Appraisal

Comparative Market Analysis (CMA)

A CMA is conducted by an agent using their knowledge of the local market in conjunction with information available to them on the multiple listing service (MLS), which contains data on sold homes and market trends. A CMA helps to price the home more accurately, keeping the property competitive in the current market. For those who are thinking of selling their home For Sale By Owner (FSBO), it’s worth noting that you will not be able to conduct a CMA on your own, since, among other things, access to the MLS is exclusive to real estate agents.

Your agent’s analysis accounts for the various factors that influence home prices to arrive at an accurate estimate of your home’s value. A CMA compares your home to others in your area that have either recently sold, are currently on the market, or had previously listed but have since expired, typically using data from the past three-to-six months. Comparable homes, or “comps,” are homes whose characteristics are similar to your own, such as the housing type, condition, and the square footage and property size. A thorough CMA will provide information on what homes in your area are selling for, how long they were on the market, and the difference between their listing and sold price, and will list a low, median, and high selling price for your home.

Appraisal

The main difference between an appraisal and a CMA is the personnel involved. Whereas a CMA is conducted by a real estate agent, an appraisal is carried out by a licensed appraiser on behalf of the bank. Once a buyer applies for a loan to purchase your home, the bank will order an appraisal of the property. Though appraisers use methods of comparison similar to an agent’s CMA, unlike a real estate agent, bank appraisers have no vested interest in the sale of the home. The goal of an appraiser’s visit is to determine your home’s fair market value to ensure that the bank isn’t lending more money to the buyer than needed.

For more resources on the selling process and to use our free home value calculator, visit the selling page on my website here.

Buyers • Sellers • September 7, 2021

Buying and Selling a Home at the Same Time

by Don Koonce

Successfully selling a home and buying a home are significant accomplishments on their own, but when their timelines cross it can be difficult to manage both. If you’re thinking about doing both simultaneously, it’s equally important to understand the steps you can take to make the process go smoothly as it is to have a backup plan in case it doesn’t. Above all, the balancing act required to pull off both deals highlights the importance of working closely with a trusted and experienced real estate agent.

Do I buy or sell first?

One can imagine a perfect world in which the two transactions go through one right after the other. However, this is not usually the case. So, should you list your current home first or start by putting in offers on a new one? There are pros and cons to both.

Selling your current home first allows you to make offers on a new home with cash in your pocket, increases your buying power, and avoids having to juggle two mortgages simultaneously. On the other hand, it creates a gap of residence, often leaving homeowners wondering where they’ll stay until they move into their new home or whether they may need to rent before they can buy again. Sellers may also negotiate a rent-back agreement with the buyers, allowing them to rent the house from the new owners before they move in.

Buying before selling solves the need for any temporary housing and makes the overall moving process much easier. Having a residence established ahead of time means you’ll only have to move once, which can save you some serious stress during this time of transition. Oppositely, buying a new home before you sell your current one will put an added strain on your finances. Having two concurrent mortgages equates to taking on more debt, which could result in less-than-favorable loan terms for purchasing your new home. Without the lump sum generated by a home sale in your pocket, coming up with enough money for a down payment may be a challenge and obtaining private mortgage insurance (PMI) may be in the cards. Finally, buying before selling comes with an obvious assumption—that your current house will sell.

Ultimately, the order of operations depends on your situation. Perhaps you’re moving due to a change of employment, and you need to direct all your energy toward buying a new home by a certain date before you can even think about selling your current one. No matter which route you take, it’s important to communicate your timeline to your listing agent or your buyer’s agent so they can strategize accordingly.

Buying and Selling a Home at the Same Time

Local Market Conditions

Buying and selling at the same time will come with a certain duality: at each step in the process, you’ll have to balance your responsibilities as both a buyer and a seller. For example, when assessing your local market conditions, you’ll be looking at not one, but two housing markets.

Seller’s Market: Selling in a seller’s market means that that you’ll need to be prepared to move once you list, since you could be looking at a short selling timeline. However, relying too heavily on the assumption that your house will sell quickly could make things dicey down the road. If you’re buying in a seller’s market, finding a new home may take longer than expected. You could potentially be waiting weeks or months for an offer to get accepted.
Buyer’s Market: Selling in a buyer’s market typically means that homes stay on the market longer. If you proceed with a new home purchase just after you’ve listed your current house, know that it may take a while to sell. If you’re buying in a buyer’s market you can afford to be picky, knowing that time is on your side. With fewer people buying homes, sellers will be more flexible, giving you leverage to negotiate your contingencies.

Having a Backup Plan

If only you could wave a magic wand and make both transactions go through as planned. That’s why it’s important to have a backup plan in place to right the ship should things go sideways at any point in the buying or selling process. Talk to your agent about which options may be right for you. Here are a few:

Sales Contingency: Buying your new home with a sales contingency allows you to opt out of the purchase contract if your home doesn’t sell by a specified date. Purchasing contingent on the sale is rare in highly competitive markets.
Bridge Loan: If your current home hasn’t sold yet and you’re not able to afford the down payment on a new home, a bridge loan may be a fitting solution. Bridge loans can be used to cover the down payment on a new house and are repaid once your existing home has sold.
Rent-Back Agreement: A rent-back agreement is a clause in the sales contract that allows the seller to rent their old home from the buyer for an agreed-upon period of time before the buyer moves in. This can be especially helpful in situations when the seller is having trouble finding a new home.

For more information on buying and selling a home at the same time, feel free to contact me.

Sellers • September 2, 2021

5 Green Upgrades that Increase Your Home Value

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. 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. 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 steamed, 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. 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.

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.

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

Events • August 27, 2021

You’re Invited: FREE Community Reuse & Recycle Event

by Don Koonce

ACCEPTED ITEMS

Household Batteries (no leaking or broken; tape ends)
Fluorescent tubes & bulbs (no broken bulbs; limit 4 ft.)
Small Electronics (TVs, computers, etc.)
Small Appliances (non-Freon – microwaves, toasters, etc.)
Paper for shedding (limit 4 boxes)
Styrofoam (clean & dry – remove labels and tape)
Small Propane Canisters (empty camp stove style, less than one pound each)

NOT ACCEPTED

Furniture/Household goods
Non-Recyclable/Reusable items
Garbage or Yard Waste
Commercial Loads
Automotive Waste
Car Seats
Hazardous Waste
Latex Paint Larger
Large Appliances
Construction Waste

CoBuy • SOLD • August 26, 2021

COBUY SUCCESS STORY: Ellie & Jake Buy their First Home

by Don Koonce

Ellie and Jake are an unmarried couple who were looking to buy their first home. They were referred to me by CoBuy – an online platform making it simpler, safer and more affordable to buy a home with others.

We scheduled a meeting at my office so that I could get to know them and learn what they were looking for. Then, armed with their criteria, I set up a search and began sending them listings. They responded with a list of properties that they liked, so I set up a Saturday tour of six homes. There were two they really liked and wanted to think about overnight. The next day, Ellie and Jake let me know which of the two they wanted to make an offer on.

Since I’d already chatted with the listing agent, I knew what the seller was seeking by way of an offer. I caller her after I learned that Ellie and Jake were interested in making an offer, and she told me the activity had been brisk, but not crazy. So far, no one else had said they planned to make an offer.

With that information, I scheduled a call with Ellie and Jake to formulate a strategy for their offer. They decided to offer list price with all contingencies in place, and I presented their offer near the deadline on Friday. In a couple of hours, I received a call that the seller would be accepting their offer. About 30 minutes after that, I received the signed offer in my email.

I called Ellie and Jake with the fantastic news, and they were thrilled!

Now the real work began as we needed to get escrow opened, submit the agreement to their lender, organize the earnest money deposit, schedule the inspection and schedule the review of the homeowner’s association since it was a condo. I managed to get the inspection scheduled on Sunday. The seller had taken great care of the property and the major systems had recently been updated.

The inspection was very clean, and Ellie and Jake decided not to ask the seller for any repairs or other reparations. The HOA document reviewer reviewed the documents and scheduled a screen sharing call with the three of us. The HOA was well-managed, and the finances were strong. They were fine moving forward and allowing that contingency to expire.

Next, the lender scheduled the appraiser. The appraiser made his inspection and we had to wait about a week for the report. Strangely enough, it came in $50 low! So Ellie and Jake decided to make an additional $50 down payment. A few days before their closing date, the escrow closer reached out to schedule their signing.

The sale closed on time and that evening; the best part happened. I had the privilege of giving them their keys!

Their journey was short because they were well informed on the market, and they knew exactly what they liked and wanted. I wish them many years of happiness in their new home!

SOLD • August 25, 2021

Sold this Month: Two Seattle Condos

by Don Koonce

6501 24th Ave NW #302
Seattle, WA 98117
$419,000

2 beds
1 bath
800 SqFt
Year Built: 1977
Ballard

Top floor corner unit with views of mountains! Two bedroom condo located just blocks to the heart of Ballard. Kitchen features granite countertops, dishwasher, microwave and stainless fridge. Large balcony to enjoy western sunsets. Great closet space plus designated storage unit. Assigned covered parking space. Small well managed HOA with no special assessments. Pet friendly. Close to grocery, bars and bus.

7314 Linden Ave N #7314
Seattle, WA 98103
$700,000

3 beds
2 baths
1,107 SqFt
Year Built 1996
Green Lake

View & location! Green Lake has it all. Spacious three bedroom / two bath townhome with storage and secured garage. Bask in the sun & enjoy the views of Green Lake, Cascades & fabulous Mt. Rainier from private upper deck. Or, relax in the shade in the fenced garden patio entry. Freshly painted interior. Maple Flrs & Cabinets. Gas cooking, fireplace & heat. Dining plus eating bar. Primary bedroom w/walk-in closet and jetted soaking tub. Third bedroom w/bay windows makes perfect home office or gym. The best of urban living w/Green Lake amenities right out the front door. Just minutes to PCC, Green Lake, restaurants and easy access to downtown Seattle & UW. The perfect location for an active lifestyle.

Restaurant Reviews • August 24, 2021

RESTAURANT REVIEW: Mount Baker’s Mioposto Pizzeria

by Don Koonce

COVID Status: The State of Washington has removed many COVID-19 restrictions, but the COVID-19 delta variant is spreading fast. As of August 23, masks are required for everyone in public indoor spaces, and recommended in crowded outdoor settings. For more information, go here.

Recommendation: While in the Mount Baker neighborhood, treat yourself and head over to Mioposto Pizzeria. You’ll be glad you did!

Background: I’ve been having lunch at Mioposto for many years. I plan my trips to listings around lunch at Mioposto, and it’s on my list for dinner. I’ve heard great things about their happy hour and dinners.

Location: I frequent the Mount Baker location (address below), but they also have locations on Mercer Island, Ravenna and West Seattle / Admiral.

Food: Mioposto serves sandwiches, salads, appetizers, and my favorite, wood-fired pizzas. For lunch, they have 8” pizzas served with a small salad of your choice. My favorite pizza is the Zucca Balsamica, which is: olive oil base, roasted butternut squash, pancetta, mozzarella, caramelized onions, garlic, rosemary, goat cheese, red pepper flakes and a balsamic reduction.

I’ve also tried all of their lunch salads and like them all. The choices are Caesar (Romaine, house-made eggless Caesar dressing, house-made croutons, grana), beet (greens, goat cheese, cracked Marcona almonds) and arugula (Arugula, Corto olive oil, lemon, grana).

Mioposto has several vegetarian options and the dinner menu also features some entrees in addition to the lunch menu. They also have pastries and espresso drinks for your commute to work.

Service: The servers have always been efficient, friendly and attentive on my visits to Mioposto.

Atmosphere: The Mount Baker location is on the corner of a 1930s building. The restaurant has a wall of windows that overlook a park. They have bar seating in front of the windows as well as tables throughout. They also have outside seating. The restaurant has brick walls and feels cozy and inviting.

Mioposto Pizzeria
3601 S McClellan St.
Seattle, WA 98144
(206) 760-3400

Image courtesy of Mioposto Pizzeria.

Real Estate Listings • August 23, 2021

NEW LISTING: Tastefully Upgraded Issaquah Condo

by Don Koonce

175 1st Place NW #113
Issaquah, WA 98027
Listing price: $515,000

MLS#: 1817854
2 Beds
2.25 Baths
1,155 SqFt
Year Built: 2000

Tastefully upgraded just for you! Modern townhome in the heart of Issaquah’s Historic District dressed in swank new hi-end finishes. Luxury vinyl plank throughout, quartz & tile kitchen, tile baths, fresh new paint, absolutely move-in ready. Soaring ceilings, lots of light, large living spaces. Lots of advantages over other condos: Forced-air gas heat, quick-recovery gas water heater, In-unit W/D, closet organizer systems, Master and 2nd bedroom BOTH big w/ double closets, secure bldg, garage parking. Best of all? Steps to Olde Town/stroll to Gillman Village. Coffee, lots of international restaurants, shopping, Village Theater and Confluence Park all walking dist. – 88 walkscore & easy metro access. Your best life is waiting here for you.

Information provided as a courtesy only, buyer to verify. For more, go here.

Living • August 19, 2021

10 Tips for Sustainable Gardening

by Don Koonce

Spring is calling and the flowers are in bloom. It’s the time of the year that many homeowners start spending more time in the garden. Having a healthy garden is one of the best ways to create a sustainable home and reduce your household’s carbon footprint. Here are some eco-friendly tips that will help to make your garden even more sustainable.

10 Tips for Sustainable Gardening

1. Compost Your Waste

Composting, which puts your natural waste to good use, is the cornerstone of any sustainable garden. All grass clippings, dead leaves, plants, flowers, and the like are rich in nutrients. By composting, you provide your garden with a natural fertilizer, free of contaminants. Not only will this provide nourishment, but it will also help to produce healthier and tastier food.

2. Mulching

If having a sustainable garden is your goal, it’s important to treat your soil with care. Mulching enriches the soil and ensures it’s as healthy as can be. Mulch conserves the moisture in your soil, ensuring it won’t dry out. It also reduces weed growth and naturally moderates the temperature of the soil. Mulching can cover either bare soil or freshly planted food and flowers.

3. Garden Design

It’s natural to want to accentuate the beauty of your garden when designing it, but the sustainable gardener will prioritize giving plants what they need. Take into consideration which plants need direct access to sunlight, which need the most space in the garden, and any special requirements a plant may need to inhabit optimal growing conditions.

4. Use Natural Weed Killers

One of the pillars of organic gardening is to reduce the use of chemicals whenever and wherever possible. Homemade recipes involving vinegar and corn gluten meal are effective substitutes for harmful, chemical-based weed killers. Whichever method you choose, it’s important to weed by hand often.

5. Use Water Efficiently

Substantial watering is critical to keeping your garden healthy, but overwatering is a common practice and leads to an unsustainable garden. Research the amount of water your plants and flowers need to make sure you aren’t overwatering. If you live in a rainy climate, rain barrels are a useful tool as their function is to catch and conserve the water from your downspouts.

6. Animal Manure

For a more sustainable garden and even healthier soil, consider adding animal manure. Chicken, sheep, and cow manure are all popular choices. Rich in nutrients, it can be used both as a fertilizer and as a soil conditioner. Make sure the manure you purchase is free of pathogens and ask about the recommended window of time from application to harvest before you begin using it.

7. Go Local

Planting natively is a fast ticket to sustainable gardening. Native plants are innately acclimated to local climate conditions, making them easier to grow and maintain. Native plants often require less water to grow due to their familiarity with the soil and rainfall in your region, which cuts down on your garden’s total water intake.

8. Collect Dried Seeds

Believe it or not, you can save your seeds and sow them next year. Wait until the seed is fully ripe before you collect it. It’s important to gather seeds when the weather is dry and to store them in a dry place. To produce healthy plants in the future, the seed must be completely dry.

9. Control Garden Slugs

Slugs are known to wreak havoc on gardens, eating through leaves and fruit, leaving a trail of destruction. There are many ways of controlling slugs in your gardens, but some may do more harm than good. If you choose to use slug bait, go organic. Many slug baits contain chemicals that are highly toxic to other animals.

10. Replace Your Gas Mower

How else can you reduce your garden’s carbon footprint? Replace your gas mower with a more sustainable alternative. Electric mowers and push mowers are functional and more eco-friendly replacements. For added sustainability, consider replacing your other gas-powered equipment, such as trimmers and leaf blowers.

Living • August 17, 2021

How to Handle Water Damage In 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.