Sellers • February 15, 2022

Working with a Real Estate Agent to Sell Your Home

by Don Koonce

A real estate agent is an invaluable asset. They will work with you to get your home sold for the best price and in a timely manner. Before you find the right agent to sell your home, it’s important to understand how you can work together toward a successful sale. The following information will help you prepare for your discussions with your agent.

Working with a Real Estate Agent to Sell Your Home

Before you choose a real estate agent, determine your wants and needs and create realistic goals. Even though your agent is the one with the expertise, the tools, and the know-how, no one knows your home like you do, and the clearer you can communicate your aspirations, questions, and concerns to your agent, the more you’ll inform their decision-making process. Even something seemingly small, like sharing your preferred method of communication, can help them understand how you can best work together.

A great first step is to determine your pricing goals for your home. Your agent will conduct a comparative market analysis (CMA) to determine the value of your home, which will allow them to price it accurately. If there is a large discrepancy between what you were hoping your home would sell for and its actual value, your agent will be able to explain the factors that influence home prices and clarify whether it’s the right time to sell.

Prepare a list of all remodels and renovations you’ve completed on the home so your agent can understand how much you’ve invested in the property and the scope of work it took to get it in its current condition.

You should also set expectations for open houses and showings. Your agent will go to great lengths to effectively market your home, but by understanding your schedule ahead of time, you’ll be able to better communicate your availability when it comes time to engage with buyers. Talk to your agent about how to prepare your home for open houses and tours, the process for screening potential buyers, and which safety precautions to take before conducting walkthroughs.

Once you’ve found a buyer for your home, your agent will work with you through the purchase and sale agreement. This contract will outline the terms of the agreement between you and the buyer, spelling out the finer points of the transaction, such as the receipt of earnest money, any addendums and/or contingencies, inspection terms, etc. Your agent will also negotiate with the buyer’s agent to determine a closing date and will communicate which settlement fees you may incur, if any.

Benefits of Working with a Real Estate Agent

Working with an agent is the best way to ensure that your home is accurately priced. Incorrect pricing can be one of the costliest mistakes in selling a home. Beyond their talent for number crunching, your agent will be there to hear your ideas, answer your questions, and allay your fears. Selling a home can be an emotional roller coaster but having an agent by your side through it all can make it a much smoother ride.

Not only are real estate agents licensed professionals who possess a wealth of knowledge about the process of selling a home and how to navigate your local market conditions, but they are also well-connected. Selling a home requires looping in multiple professionals from a variety of disciplines. Whether it’s a lawyer, home inspector, appraiser, remodeling contractor, etc., your agent can help you find the professionals you need throughout your home selling journey.

Buyers • February 10, 2022

Windermere Insights: How Homebuyers Can Succeed in 2022

by Don Koonce

With continued low inventory and appreciating home prices, the King County real estate market has favored sellers for some time. This year appears to be no different, with homes scarce in Seattle and on the Eastside, the cost of new construction skyrocketing due to the price of land, materials and labor, and the inventory of for-sale condominiums having been whittled down significantly in 2021. So, where exactly is there opportunity for buyers? And in a market that’s both competitive and fast-paced, how can a buyer find success?

To answer this, we spoke to three local Windermere leaders, two based in Seattle and one on the Eastside. Collectively, they shared the vision that this year’s market will pose challenges to most buyers, but that there is opportunity for those who enter the market ready to compete and with realistic expectations. Read on for tips from these seasoned pros who oversee thousands of real estate transactions a year.

Laura Smith, co-owner and designated broker of Windermere Real Estate Co., sees a buyer’s ability to pivot as a key skill in this market. “A market as competitive as this one favors those who are open-minded and flexible,” she says.

Real-time data and savvy guidance from their broker can help a buyer adjust their strategy — and even their economic parameters — mid-search. But, as Smith says, “sometimes they have to have lost a previous offer or two to understand how important flexibility is.”

Matt Deasy, president of Windermere East Inc., even sees geographic flexibility as an important asset to buyers in this market.

“With the median price of Eastside homes setting records, some people may have to adjust their search parameters to include Seattle neighborhoods, or other areas in King County,” Deasy says.

And in some cases product flexibility may even be required, says Patrick Chinn, owner of Windermere Real Estate Midtown.

“As we start to see Seattle’s new construction mix change, bringing more attached homes and more DADUs*, buyers in certain price ranges will need to reset their expectations about space, layout and lot size,” Chinn says.

Chinn notes that some buyers seeking out single family homes may benefit from considering a pivot to condos, since “there are still some great buys in that market.”

All three experts agreed that beyond staying flexible, buyers will need to come to the table well prepared. They’ll need to be ready to waive some or all offer contingencies, and they’ll need to know the amount of money they can bring to a transaction.

“Knowing and embracing their financial tolerances will be key to each buyer’s success,” Chinn says.

“Buyers should be very aware of their upper financial limit,” says Smith. “Ideally before they start seriously searching for homes.”

In some cases, it may benefit a buyer requiring financing to be able to show up to the transaction as if they were a cash buyer.

“Cash buyers often prevail in a multiple offer scenario,” Deasy says, “because the assurance that there’s money already in the bank and the prospect of a faster closing is very appealing to sellers who are sitting on empty homes.”

Deasy, Smith and Chinn all say that their brokers’ clients have had success leveraging the Windermere-affiliated Buyer Capital program, which provides either up-front cash to strengthen a buyer’s offer or a buyer performance guarantee.

“The best thing about this program is that it makes our buyers more attractive to sellers and gets their offers to stand out against the competition,” Deasy says.

Our experts agree that another way homebuyers can succeed in the competitive Seattle/Eastside real estate market is to work with someone who has their back from start to finish.

Due to the nature of the 2022 market, Deasy is unwavering on this point. “Who you hire to guide and represent you will determine whether you can get your home in this competitive environment,” he says. “For buyers, hiring a smart, skilled and strategic broker is everything.”

Smith agrees. “A strong broker will educate and navigate on the subtleties of the market, and this will be key this year,” she says.

In describing the hyper-competitive nature of today’s market and what it takes to win in a frenzied environment, Smith tells the story of one of her brokers who recently helped her client win against 29 offers.

“She had educated her clients so well that they were prepared to do what it took to get the home. They understood the nuances of what the market required and were prepared to go there,” Smith says.

Chinn notes the extra mile that a good broker will go to help their clients succeed. He applauds the hard work and committed service ethic of his brokers, and sees both as key to buyers’ success in a market like this one.

“Every day I see our agents agonizing over the ways the market challenges their buyers and celebrating the wins they help secure,” Chinn says. “Whether they’re supporting a buyer through their fifth inspection, seeking out new inventory to grow their opportunities, or working to save them money, these guys are ridiculously focused, and determined too. They never rest.”

In a low-inventory market like this one, opportunities for buyers can be few and frustrations many. Chinn points out the importance of buyers finding the right person to represent them, someone they connect with and who will advocate fiercely for them.

“To me, an important trend from 2021 that will continue this year is how personal a residential real estate acquisition is, how hard it can be in a market like this, and how the right human touch — with skill and passion and smarts — can solve for a lot of risk and a lot of anxiety,” Chinn says. “No algorithm will ever be able to address that part of the equation.”

*Editor’s note: DADUs are Detached Accessory Dwelling Units, typically a smaller home or cottage sharing a city parcel with a larger residential structure.

Living • February 8, 2022

5 Ways to Create a Sustainable Kitchen

by Don Koonce

In many ways, the kitchen is the heart of a home. All the time spent making delicious food, sharing recipes, and enjoying meals with loved ones gives it a central role in home life. A consequence of the time spent in the kitchen is the creation of waste. But by adopting more sustainable practices in the kitchen, you can reduce waste and make your home more eco-friendly. Here are five ways you can create a sustainable kitchen.

5 Ways to Create a Sustainable Kitchen

1. Cut Down on Food Waste

It’s no secret that a certain portion of food always seems to go to waste, but how can you avoid throwing away perfectly edible food items? It starts with being intentional about your grocery shopping. This helps to prevent overbuying and will give you a better chance of cutting down your food waste. Food preservation is key, as well. Invest in high-quality, reusable containers to prevent food from rotting, wilting, or expiring before you intend to cook it.

2. Choose Energy-Efficient Appliances

Kitchen appliances generate a significant amount of power. By using an energy-efficient refrigerator, freezer, and/or dishwasher, you can reduce the overall energy consumption of your household. When deciding on which appliance to purchase, the most sustainable choice you can make is the one you plan on sticking with for a long time. When deciding on a gas versus an electric range, know the pros and cons of each option before making a final decision.

3. Reusable Materials

Getting more uses out of the items in your kitchen will help make your household more environmentally conscious. Reusable kitchen towels are an eco-friendly replacement for paper towels when you’re cooking, wiping down your counters, or doing dishes. Using reusable grocery bags is an effective way to transport groceries sustainably. It will also help keep your kitchen organized by avoiding a plastic or paper bag pile-up under your sink. This line of reusable thinking in the kitchen can even extend to design. If you’re looking to give your kitchen a makeover while keeping sustainability in mind, consider incorporating reclaimed wood, sustainably-sourced countertops, or natural materials like bamboo.

4. Use Natural or Organic Cleaning Products

Creating a sustainable kitchen isn’t just about reducing food waste and choosing reusable materials. By using organic and/or natural cleaning products, you can ensure that your cleaning practices are sustainable as well. Using natural cleaners, like baking soda and vinegar, can also create less waste when you repurpose jars and bottles to create your preferred solution. Buy ingredients in bulk, then re-purpose old spray bottles and use towels instead of paper products to clean. Certain conventional cleaning products with synthetic chemicals can negatively impact the air quality in your home, which can have harmful effects on your health, especially if you have respiratory sensitivities.

5. Be Mindful About Water Usage

Neglecting to monitor your water usage is a slippery slope. Not only will using too much water increase the overall waste output of your home, but it will also increase your water bill. Be mindful about using only the required amount of water for cooking, do your best to avoid leaving the faucet running, and if there is a drip, fix it as quickly as you can. Using too much water can also strain your home’s water systems, putting your pipes at risk of bursting. Tempering your water usage can help to prevent water damage and the high costs that come with it.

Sellers • February 3, 2022

What Is a Bridge Loan?

by Don Koonce

With so much in flux during the period between selling a home and buying a new one, short-term financing can provide some calm among the storm. With the fate of two properties up in the air, those who are selling a home will often look to secure a bridge loan to bridge the gap between the sale of their existing home and the purchase of a new one. So, is a bridge loan right for you? The following information is meant to help you decide whether it is a fitting solution.

What is a bridge loan?

Bridge loans have shorter terms—generally up to one year—than mortgages and often come with higher interest rates. Bridge loans allow buyers to borrow a portion of the equity in real estate they already own (usually their current primary residence) to use as a down payment on the purchase of a new residence. Borrowers will commonly package the two loans together, in which they borrow the difference between the amount they owe on their current home and a percentage of the home’s value (often 75% or 80%). Just like a home equity loan, a home equity line of credit (HELOC), or a mortgage, bridge loans are secured by your current home as collateral.

Bridge Loans: Pros

Once your home sells, you can use the proceeds to pay off the bridge loan, leaving you with only the mortgage for your new home.
Bridge loans can get you cash quickly to expedite the transition from one house to another.
With a bridge loan, you can expect a shorter application and loan-approval process than a typical mortgage.
A bridge loan offers you the opportunity to buy a new house before your current one sells. As a buyer, this allows you to make a contingency-free offer on a new house, meaning you can still make the purchase without having to sell your current home first. This can be a useful resource in a seller’s market, where sellers may view an offer without contingencies as favorable amongst the competition.

Bridge Loans: Cons

If your home doesn’t sell in the allotted term, you’ll be left with making payments on your current home’s mortgage, your new home’s mortgage, and the bridge loan.
Bridge loans usually come with higher interest rates than a typical mortgage and come with their own set of costs, including interest, as well as legal and administrative fees.
Having a low debt-to-income ratio, a solid credit score, and a considerable amount of equity in your current home are all required to secure a bridge loan, so qualifying may be out of reach for some homeowners.

Alternatives to Bridge Loans

Home equity loans, home equity lines of credit (HELOCs), and personal loans are all viable alternatives to bridge loans that can still create a pathway to purchasing your new home. Be sure to compare the costs associated with each line of financing before making your decision.

Real Estate News & Information • February 1, 2022

Matthew Gardner’s Top 10 Predictions for 2022

by Don Koonce

Matthew Gardner’s Top 10 Predictions for 2022

1. Prices will continue to rise

There are some who believe that U.S. home prices will drop in the coming year given last year’s extremely rapid pace of growth, but I disagree. I don’t expect prices to fall; however, the pace of appreciation will slow significantly, rising by around 6% in 2022 as compared to 16% in 2021 (nationally). As such, agents need to be prepared to explain this new reality to their clients who have become very accustomed to prices spiraling upward. Those days are likely behind us—and it’s not a bad thing!

2. Spring will be busier than expected

The work-from-home paradigm is here to stay for the foreseeable future, and this could lead to increased buyer demand. Many companies have postponed announcing their long-term work-from-home policies due to the shifting COVID-19 variants, but I believe they will soon off er more clarity to their employees. Once this happens, it will likely lead to a new pool of home buyers who want to move to more affordable markets that are further away from their workplaces. I also expect to see more buyers who are driven by the need for a home that is better equipped for long-term remote working.

3. The rise of the suburbs

For a large number of people whose employers will allow them to work from home on an ongoing basis, remote working will not be an all-or-nothing proposition. It will be a blend of working from home and the office. I believe this will lead some buyers to look for homes in areas that are relatively proximate to their office, such as the suburbs or other ex-urban markets, but away from high-density neighborhoods.

4. New construction jumps

I anticipate the cost of building homes to come down a bit this year as inflation finally starts to taper, and this should provide additional stimulus for homebuilders to start construction of more units. Material costs spiked in 2021 with lumber prices alone adding about $36,000 to the price of a new home. This year, I’m hopeful that the supply chain bottlenecks will be fixed, which should cause prices to moderate and result in a drop in building material costs.

5. Zoning issues will be addressed

I’m optimistic that discussions around zoning policies will continue to pick up steam this year. This is because many U.S. legislators now understand that one of the main ways to deal with housing affordability is to increase the supply of land for residential construction. Despite concerns that increased density will lower home values, I believe existing homeowners will actually see their homes rise in value faster because of these policies.

6. Climate change will impact where buyers live

Now that natural disasters are increasing in frequency and climate risk data is starting to become more readily available, get ready for home buyers to require information from their agents about these risks and their associated costs. Specifically, buyers will want to know about an area’s flood and fire risks and how they might impact their insurance costs and/or their mortgage rate.

7. Urban markets will bounce back

While increased working from home can, and will, raise housing demand in areas farther away from city centers, it may not necessarily mean less demand for living in cities. In fact, some urban neighborhoods that were once only convenient to a subset of commuters may now be considered highly desirable and accessible to a larger set of potential home buyers. At the same time, this could be a problem for some distressed urban neighborhoods where proximity to employment centers may have been their best asset.

8. A resurgence in foreign investors

Foreign buyers have been sitting on the sidelines since the pandemic began, but they started to look again when the travel ban was lifted in November 2021. Recently, the rise of the Omicron variant has halted their buying activity, but if our borders remain open, I fully expect foreign buyer demand to rise significantly in 2022. Keep in mind, foreign buyers were still buying homes sight unseen even when they were unable to enter the country, and this will likely still be the case if borders are closed again.

9. First-time buyers will be an even bigger factor in 2022

Once remote working policies are clearer, we should see increased demand by first-time buyers who currently rent. In 2022, 4.8 million millennials will turn 30, which is the median age of first-time buyers in the U.S. An additional 9.4 million will turn 28 or 29 in the coming year. I believe this group is likely to contemplate buying sooner than expected if they can continue working from home in some capacity. Doing so would allow them to buy in outlying markets where homes are more affordable.

10. Forbearance will come to an end

Forbearance was a well-thought-out program to keep people in their homes during the height of the pandemic. Some predicted this would lead to a wave of foreclosures that would hurt the housing market, but this has not been the case. In fact, there are now fewer than 900,000 U.S. homeowners in forbearance, down from its May 2020 peak of almost 4.8 million, and this number will continue to shrink. That said, there will likely be a moderate increase in foreclosure activity in 2022, but most homeowners in this situation will sell in order to meet their financial obligations rather than have their home repossessed.

Design • January 27, 2022

Colorful Modern Design Trends for Your Home

by Don Koonce

Designing your home can feel like trying to put together a puzzle. While neutrals can help create consistency and set a calming tone in your home, color is often the missing puzzle piece that ties everything together and gives your home the life you’re looking for. Certain color combinations can create a sense of timelessness while others can help make your spaces feel modern.

Colorful Modern Design Trends for Your Home

In recent years, sustainability, multifunctionality, and the integration of natural elements into the home have cemented themselves as modern design trends that possess serious staying power. These trends go hand-in-hand with many aspects of modern life and are often the basis of homeowners’ decorations decisions. Here’s how you can you use color to create a modern look in your home.

Say “So Long!” to Neutrals

A combination of factors—people spending more time at home, remote work becoming more prevalent, the lasting effects on home life throughout the COVID-19 pandemic—have created a shift in how neutrals are viewed. Moving forward, expect to see a different take on the old “less is more” saying when it comes to home décor. Colors are officially back. Instead of minimalist, white-washed backdrops, designers suggest experimenting with more colorful landscapes to create vibrant, lively spaces. Now is the time to consider painting your kitchen cabinets something vibrant, add those multi-colored throw pillows that may have previously seemed too bold, or try out that wild idea you had for a gallery wall.

Healing Colors

Recent times have raised homeowners’ collective awareness about the meaning of the spaces they live in and how they impact their overall wellbeing. This perspective shift has elevated the importance of earthy tones. Deep greens, organic browns, rust-tinged oranges, calming blues, and illuminating yellows are all colors that bring natural elements to mind—i.e., plants, running water, the sun. Let your imagination run wild with ways that you can incorporate these colors into your home to give it a modern effervescence.

Other Colorful Trends for Your Home

Tile and furniture are some other larger surface areas that can greatly benefit from a splash of color. Different tile designs can evoke different aspects of modern design and help to liven up backsplash-heavy spaces like your kitchen or your bathroom where white subway tile may leave something to be desired. Give yourself carte blanche when searching for colorful furniture. Explore bold patterns and different color combinations that complement other items in the spaces they’ll inhabit.

Buyers • January 25, 2022

What are Closing Costs?

by Don Koonce

The closing process in a real estate transaction finalizes the terms of an agreement between the buyer and seller, leading to the transfer of the property’s title. This step of the buying/selling process comes with its own set of costs. Before a buyer can hold the keys to their new home, and before a seller can celebrate the sale of their property, closing costs must be paid.

What are closing costs?

The term “closing costs” refers to the various expenses, taxes, and fees paid by both the buyer and the seller to finalize a real estate transaction. The purchase agreement—signed by both parties—will dictate the terms of how the closing costs are paid, but there are some standards about who pays what.

In general, buyers can expect to pay about 2-5% of the total purchase price in closing costs, while sellers’ costs can range anywhere from about 6-10%; the difference being that buyers are using extra cash to pay for their closing costs while the amount sellers owe is typically deducted from the proceeds of the sale of their home. Note—these percentages may vary depending on property taxes, insurance rates, and other factors involved in the transaction.

Closing Costs for Buyers

Typical mortgage-related closing costs for buyers include an application fee, an underwriting fee, and prepaid interest (the accrued interest cost between your settlement date and first monthly payment). If you make less that a 20% down payment on the home, you can expect to pay your lender for private mortgage insurance (PMI), as well.

Two main property-related closing costs for buyers are the appraisal and the home inspection. Lenders will require an appraisal to double-check that the value of the property matches your mortgage loan amount, which will typically cost you a few hundred dollars. A home inspection provides the buyer with a clear understanding of the home’s condition and what repairs need to be made, either in the future or before closing. In competitive markets (a seller’s market), it’s more common for sellers to conduct pre-listing inspections and for buyers to waive the inspection contingency to make their offer more appealing. Buyers will also pay a variety of title, insurance, attorney, escrow, and property tax fees to finalize the home purchase. Usually, your lender will require you to purchase homeowners insurance before settlement to protect against insured disasters that may occur on the property.

These are just some of the costs inherent in the closing process for buyers, which are a fraction of the total costs of buying a home. Working with a Buyer’s Agent will help you stay organized as you navigate through these crucial final steps of your home purchase.

Closing Costs for Sellers

The seller will pay the agent commissions on the sale, typically to both the buyer’s agent and the listing agent. Agent commissions usually come in at around 4-6% of the sale price of the home. Other closing costs for sellers may include attorney fees, title insurance, a transfer tax, and the home’s property taxes for the current year if they have not yet been paid. The terms of the agreement will spell out what the seller is additionally responsible for, including HOA fees if applicable and any escrow money promised to the buyer.

Typically, escrow fees are shared between the buyer and seller, which cover the costs of distributing the funds involved in the transaction. In buyer’s markets, it’s more common for sellers to agree to pay for a portion of the closing costs—what is known as “seller concessions.” A common example of a seller concession is when the seller agrees to pay for repairs discovered during the buyer’s home inspection.

So, whether you’re buying or selling a home, it’s important to remember that a series of fees and payments must be completed to finalize the transaction.

Real Estate Listings • January 20, 2022

NEW LISTING: Burien Condo

by Don Koonce

127 SW 154th Street #103
Burien, WA 98166
Listing price: $255,000

MLS #1875370
1 bedroom
1 bath
679 sqft
Main Level Master, Walk-In Closet(s)
Gated Community
Insulated Windows
1 Wood Burning Fireplace

Live in the heart of Burien and walk to everything! Spacious, cozy, and so affordable, this one-bedroom unit has a wood-burning corner fireplace, large balcony with Mt. Rainier view, in-unit laundry, ample closet space, new paint and carpet, and designated parking space with adjacent storage unit. Take a short stroll and find yourself enjoying some of downtown Burien’s favorites, Tin Room, Bakery Nouveau, Elliott Bay Brewhouse, The Greek House, and so many more restaurants and shops. Small, quiet, well maintained, 18-unit pet-friendly complex. Low HOA dues. 94 walk score. No need to rent when you can just move in and start enjoying your new home!

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

Living • January 13, 2022

Gas Appliances vs. Electric Appliances

by Don Koonce

Appliances are broken down into two main categories: gas- and electric-powered. You may be more familiar with one or the other based on personal experience, but when it comes time to choose appliances for your home, you’ll likely be weighing a variety of factors including the conversion costs, operation costs, safety, sustainability, and more. The following breakdown of the differences between gas and electric appliances can help inform your decision about what is ultimately best for your home.

What is the difference between gas and electricity?

Homes with natural gas are powered by a series of pipeline connections. The gas lines flowing from the property lead out to and connect with a larger pipeline farther away. Homes can also be powered by propane gas, which is stored in a tank on the property.

Electric power flows from generators to substations and eventually to individual homes, carried by transmission and distribution lines. In short, gas can power a variety of appliances in your home, but it won’t power your lights or electronics, whereas electricity can do both.

What is the difference between gas appliances and electric appliances?

The costs of gas and electric appliances vary region-to-region, both in upfront and operation costs. Having said that, gas is the more efficient heating fuel, and using gas appliances could save you up to 30 percent on your utility bill (consumeraffairs.com). Keep in mind that gas furnaces tend to be noisier but will usually heat up your home quicker, while electric furnaces are quieter but may take more time to warm your home.

So, what do you do if you want to convert your home from one fuel to the other? To switch from electric to gas, you’ll need to route gas lines, purchase the new appliances, and install them. Switching from gas to electric will require installing an electric line and capping the gas line(s). Each of these conversion methods will require an investment, so be sure to budget for these costs before you switch.

Gas and electric have their own unique safety hazards. With gas, you’ll need to take a couple extra steps to protect your home’s air quality. You’ll want to make sure you have a good ventilation system and that your carbon monoxide alarm is functioning properly to alert you of any potential poisoning from the furnace or the appliances themselves. With electric appliances, you won’t run the risk of a gas leak, but if the appliance’s wiring is faulty or neglectfully maintained, it could start a fire.

Gas vs. Electric Range

The range tends to be the focal point of the gas-versus-electric debate for many homeowners. While some prefer the quick-heating power of an open-flame gas stove, others view an electric stove as safer for their household and therefore better. While some enjoy the even-heating quality of an electric oven, others prefer gas ovens with traditional coil burners. Electric stoves are usually easier to maintain; especially glass tops since you only have to clean one smooth surface.

Gas vs. Electric – Dryer & Fireplace

In general, gas dryers can heat up faster than electric dryers, which means they are more efficient and can save you money on your energy bills. However, gas dryers tend to be more expensive than their electric counterparts.

Electric fireplaces are usually cheaper to install but may not be as effective as gas fireplaces for heating larger spaces. And apart from all the financials, some people simply enjoy the feeling of a natural flame (gas) coming from the hearth, while the electric heating element appeals to others.

At the end of the day, choosing between gas and electric appliances depends on your situation. Saving on energy bills may be your number one priority, or perhaps you can’t stand the idea of not cooking on an open flame. Whatever your choice, it’s helpful to know the pros and cons of each option.

Sellers • January 11, 2022

Should I Remodel or Sell My Home As Is?

by Don Koonce

Homeowners who are preparing to sell are often faced with a dilemma about whether to remodel or sell their home in its current state. Each approach has its respective advantages and disadvantages. If you decide to remodel your home, it will likely sell for more; but the increased selling price will come at the cost of financing the remodeling projects. If you decide to sell without remodeling, you won’t spend as much money putting your home on the market, but the concern is whether you’re leaving money on the table.

To answer this question, it’s important to understand the factors that could influence your decision and to work closely with your agent throughout the process.

Cost Analysis: Home Remodel vs. Selling Your Home As Is

Home Remodel

When you remodel your home before selling, you’re basically making a commitment to spend money to make money. So, it’s important to consider the kind of ROI you can expect from different remodeling projects and how much money you’re willing to spend. Start by discussing these questions with your agent. They can provide you with information on what kinds of remodels other sellers in your area are making and the returns they’re seeing as a result of those upgrades. This will help you determine the price of your home once your remodel is complete.

Then, there’s the question of whether you can complete you remodeling projects DIY or if you’ll need to hire a contractor. If hiring a contractor seems expensive, know that those costs come with the assurance that they will perform quality work and that they have the skill required to complete highly technical projects.

According to the Remodeling 2021 Cost vs. Value Report (www.costvsvalue.com¹), on average, homeowners paid roughly $24,000 for a midrange bathroom remodel and about $26,000 for a minor kitchen remodel nationwide, with a 60.1% and 72.2% ROI respectively. This data shows that, for these projects, you can recoup a chunk of your costs, but they may not be the most cost-effective for you. A more budget-friendly approach to upgrading these spaces may look like repainting your kitchen cabinets, swapping out your old kitchen backsplash for a new one, refinishing your bathroom tub, or installing a new showerhead. Other high-ROI remodeling projects may allow you to get more bang for your buck, such as a garage door replacement or installing stone veneer. To appeal to sustainable-minded buyers, consider these 5 Green Upgrades that Increase Your Home Value.

Selling Your Home As Is

Deciding not to remodel your home will come with its own pros and cons. By selling as is, you may sell your home for less, but you also won’t incur the cost and headache of dealing with a remodel. And since you’ve decided to sell, you won’t be able to enjoy the fruits of the remodel, anyway. If you sell your home without remodeling, you may forego the ability to pay down the costs of buying a new home with the extra money you would have made from making those upgrades.

Market Conditions: Home Remodel vs. Selling Your Home As Is

Local market conditions may influence your decision of whether to remodel before selling your home. If you live in a seller’s market, there will be high competition amongst buyers due to a lack of inventory. You may want to capitalize on the status of the market by selling before investing time in a remodel since prices are being driven up, anyway. If you take this approach, you’ll want to strategize with your agent, since your home may lack certain features that buyers can find in comparable listings. In a seller’s market, it is still important to make necessary repairs and to stage your home.

In a buyer’s market, there are more homes on the market than active buyers. If you live in a buyer’s market, you may be more inclined to remodel your home before selling to help it stand out amongst the competition.

Timing: Home Remodel vs. Selling Your Home As Is

Don’t forget that there is a third option: to wait. For all the number crunching and market analysis, it simply may not be the right time to sell your home. Knowing that you’ll sell your home at some point in the future—but not right now—will allow you to plan your remodeling projects with more time on your hands which could make it more financially feasible to complete them.