Buyers • Case Studies • March 25, 2021

CASE STUDY: Ian & Angela Buy Their First Home in Federal Way

by Don Koonce

Ian and Angela were first-time homebuyers who were referred to me from a retired broker.

I scheduled a Zoom call with them so I could learn their criteria for a home and explain the home-buying process. I referred them to a trusted lender, and they were pre-approved within a couple of days.

I set up a search based on their criteria and started sending listings. They identified the ones they wanted to tour, and I made appointments for the tours.

On our fourth tour of three to four houses each tour, they identified one that they loved. We toured the home, and Ian and Angela were planning to submit an offer. Then the sellers revealed that they already had 12 offers which had escalated the price to more than 20% above list price. Unfortunately, this was outside of their price range.

We had one more house to tour that evening, which was right around the corner. That house listed with a limited-service broker, which only lists it on the MLS. All negotiations are done directly with the seller, and it was the home’s first day on the market. The house was a flip, but it was very well done, and Ian and Angela loved it better than the previous one. The seller was reviewing offers upon receipt, so I knew it would go fast.

I contacted the seller while we were still in the home. He said that he didn’t have any offers yet, so I told him that we would be submitting an offer that night. I hurried back to my home office and started to work on their offer. I got it written, signed, reviewed, and submitted that night. The next morning the seller accepted their offer at list price.

I then scheduled an inspection and sewer scope. Both turned out very clean. There were several small items that they decided to ask the seller to fix, and he agreed to do everything they asked for. The appraisal was scheduled and completed about a week later and the report came in at value with no work orders.

About four days before closing, we did a final walk through. The seller went above and beyond on the repairs that they asked for. Ian and Angela closed on time, and I was able to enjoy my favorite part of the transaction, delivering the keys. They are now happily making a home in their new house.

Congratulations, you two!

Events • March 24, 2021

SAVE THE DATE: FREE Southeast Seattle Recycling & Paper Shredding Event

by Don Koonce

Restaurant Reviews • March 23, 2021

RESTAURANT REVIEW: Ambakity Cocina Mexicana in South Park

by Don Koonce

On Monday, March 22, King County entered Phase 3 of the state’s Healthy Washington – Roadmap to Recovery plan, which will allow more activities to resume. Businesses, restaurants, gyms and museums will be allowed to increase capacity from 25 percent to 50 percent. For more information, go here.

I was recently very sad to learn that my go-to Mexican Restaurant — Jalisco in South Park — has permanently closed. I love Mexican food and hadn’t found any place that measured up to the experience that I had been getting there for the past 20+ years.

However, Ambakity is conveniently located next door to Jalisco’s location. I had heard good things about it in the past so checked out their Yelp reviews, which are glowing, and decided to give it a try. I was pleasantly surprised by how much I liked it. The food is different from the food at Jalisco but still delicious!

I ordered Ambakity’s signature dish, Pollo a la Parilla; a half chicken marinated in ancho-chile recado, drizzled with chile citrus sauce, topped with Escabeche, and served with garlic white rice, mixed veggies and mojo verde. It was a very generous serving, and the leftovers were delicious the next day for lunch. So delicious that I had trouble putting my fork down, even when I was full. I also had one of their margaritas and enjoyed that as well.

Alan had Pollo ala Crema, which is strips of chicken breast, sauteed onions, bell peppers, mushrooms with salsa crema, and a garnish green salad in lieu of beans, which he enjoyed very much.

Ambakity has a huge menu, so I still have much to try. Now that we’re in Phase 3, I feel comfortable dining inside there, as the restaurant is huge and diners were spaced very far apart. The server was super friendly and very attentive. If you find yourself wanting some amazing Mexican food, give Ambakity a try. They also do take out.

Ambakity Cocina Mexicana
8515 14th Ave S.
Seattle, WA 98108
(206) 257-5483

Financial • March 18, 2021

Get the Most Out of Your Tax Refund in 2021

by Don Koonce

The coronavirus pandemic continues to put a huge strain on household finances. Even in a normal year, a tax refund may be the biggest check you receive all year.

This year, if you qualify for the Earned Income Tax Credit (EITC) or the Child Tax Credit (CTC), the Internal Revenue Service (IRS) is allowing you to choose whether to use your 2019 or 2020 income to receive the most credits for which you are eligible. By filing your taxes, you can also make sure you get any stimulus money you may not have received.

We encourage you to file your taxes as soon as you can to take advantage of this money.

Benefits of filing a federal tax return in 2021

Even if you are not required to file federal taxes, doing so this year may be the only way to get back any money that was withheld from your wages (a refund), plus cash in on key benefits and stimulus payments (also known as Economic Impact Payments [EIP]).

Benefit 1: Income Tax Refund

If you worked at any time during 2020, or received unemployment, you may have had income taxes taken out of your paycheck, and you might be able to get a tax refund.

Benefit 2: Tax Credits

You may be able to claim the Earned Income Tax Credit or Child Tax Credit when you file your taxes this year. If you are eligible for one of these tax credits, it could reduce the amount of tax you owe and may even earn you a refund.

Because the coronavirus impacted many people’s incomes in 2020, the IRS’s “lookback rule” allows you to choose between your 2019 or 2020 income to determine which will get you the most money back on your EITC or CTC.

Make sure to have your 2019 tax return on hand when you file this year’s taxes so that you have all the information you need.

Earned Income Tax Credit

The EITC or EIC is a benefit for working people with low-to-moderate income. Claiming the credit can reduce the tax you owe and may also give you a larger refund. Use the IRS’s Earned Income Tax Credit Assistant to help you figure out how much you qualify for this year, or ask your tax preparer if you qualify.

Child Tax Credit

The CTC is available if you claim any children younger than 17 (at the end of 2020) as dependents on your taxes. The CTC is worth a maximum of $2,000 per qualifying child. Up to $1,400 is refundable. To get a CTC refund, you must earn more than $2,500.

Benefit 3: Economic Impact Payments

In 2020, the federal government authorized direct payments to Americans called Economic Impact Payments, to help them weather the financial strain from the coronavirus pandemic. Most people who qualified already received these payments.

However, if you don’t normally file taxes and you didn’t receive one or both of the EIPs to help with coronavirus relief in 2020, you may still be eligible.

If you did receive an EIP but did not get the right amount, you can also claim the difference when you file. On your 2020 tax return the EIP is called the Recovery Rebate Credit (RRC). When you do your taxes and fill out a 1040 or a 1040SR form, there will be a place to fill in how much RRC you already received, and then you can calculate whether more money is owed to you.

How to file your federal tax return in 2021

There are several ways to file a tax return, including free tax preparation services for low- to moderate-income individuals, persons with disabilities, the elderly, and limited English speakers. Learn more about affordable ways to file a tax return.

Get help if you need it

You don’t have to be an expert to file your taxes. If you meet certain income requirements, there may be free tax preparation options to help you get your refund and all the credits you’ve earned.

Because of the pandemic many Volunteer Income Tax Assistance (VITA) programs are offering a variety of tax preparation options in 2021 including virtual tax preparation, drop off services, and facilitated self-preparation. See if there is a VITA program near you . You can also go to MyFreeTaxes and choose to prepare your own return using free software or to seek free tax preparation assistance.

If you do seek the help of a professional, remember to ask them about choosing your 2019 or 2020 income for the purpose of calculating your EITC and CTC.

Direct deposit your refund

Direct deposit is the safest and fastest way to receive a tax refund. Setting up direct deposit is not just quicker and more secure, it’s also a particularly good solution if you don’t have an address where you can reliably receive mail. If you do not have a bank or credit union account, you can explore account options that are safe, affordable, insured and can be opened remotely .

The money you get in this year’s tax refund could help cover necessities like food, bills, rent, or mortgage payments. If you do have the ability to save this year, learn more about using your tax refund to start an emergency fund.

Buyers • March 16, 2021

The Importance of Pre-Approval

by Don Koonce

To set yourself up for a smooth and successful home purchase, getting pre-approved is perhaps the most productive first step you can take. It strengthens your buying credibility, informs your home search, and speeds up the closing process.

The Pre-Approval Process

There is an important distinction to made between two important steps of your mortgage application process: pre-qualification and pre-approval. They are similar in that they both help to inform your financial standing, but there are key differences between the two.

Pre-qualification

Pre-qualification is the first step in your mortgage application process. It will help you to understand the approximate loan amount you can expect to qualify for. You’ll begin by sharing your financial information—debt, income, assets, etc.—with you bank or lender. After reviewing the information, the bank or lender will give a loan estimate. The process is relatively simple, only taking a few business days to process.

Pre-approval

The pre-approval process is more involved than pre-qualification. After submitting a mortgage application, your lender will require all the necessary info to conduct a thorough credit history check and review of your financial health. Getting pre-approved will give you a better idea of how much you can borrow, estimated monthly costs, and what interest rates you can expect on your loans. Mortgage pre-approvals are typically valid for 60 to 90 days.

Benefits of Pre-Approval

Credibility

The truth is, each home on the market can only go to one buyer. To maximize the chance that your offer is accepted, sellers need to know that your offer is serious. Getting pre-approved shows that you are financially prepared and, in the event that your offer is accepted, there will be no hold ups in obtaining your mortgage. This assurance is what sellers want to know about their potential buyers, especially in a seller’s market.

Home search

Not only does pre-approval help to bolster your case as a buyer, but it also Indicates your affordable price range. By knowing your budget, you will be able to hone your home search and start preparing offers, eliminating any potential wasted time looking at houses you can’t afford.

Closing process

Once your offer is accepted, you’ll be counting down the days to move-in. Unfortunately, the closing process can often drag on, leaving buyers feeling like they’re in post-purchase limbo. Pre-approval will speed up the closing process, since the mortgage approvals have already been taken care of, allowing you to focus on next steps like appraisals and inspections.

When to Get Pre-Approved

Being financially prepared for a home purchase is a solid indicator that you’re ready to go about getting pre-approved, but what does that look like? Buying a house means taking on serious debt, so it’s worth your while to begin forming a long-term strategy for paying off outstanding debt before getting pre-approved. Having adequate savings for a down payment is a sign that you’re ready to make your offer. For any questions about the pre-approval process and to get connected to a mortgage professional, contact your Windermere agent.

Real Estate Listings • March 11, 2021

Jimmy Fallon Lists Quirky, Kid-Friendly Gramercy Park Penthouse for $15M

by Don Koonce

From the listing agents:

Celebrating the bones and architecture of the famed 34 Gramercy Park East, while transforming the space into a singularly enhancing home, this jewel box is perched atop the southwest corner of the historic landmark. Features of the approximately 4,950 square-foot home include original, restored window frames and casings throughout, original, restored hardwood floors throughout, and the highest quality fixtures and finishes combined with a curated collection of treasured vintage and antique finds from around the world.

Enter this imaginative space via the seventh floor and into a gracious entry foyer. Off the entry is an elegantly proportioned The living room, papered in rare vintage wallpaper from the 1940’s and paneled in skewed wood-planking designed by Bednark. A plush custom sofa and in-ceiling projector make this room the perfect place for casual gatherings.

Move into the west-facing eat-in kitchen, the heart of the home, which has awe-inspiring views over Gramercy Park, featuring state-of-the-heart home appliances, and custom cabinetry with E.R. Butler hardware. The room offers comfortable dining for six and bar-seating for eight beside a gas fireplace with original mantel set with vintage tiles. Adjacent to the kitchen is a show-stopping walk-in pantry which once functioned as a working sound studio (and is still fully sound proofed). Along with the living room and kitchen, two spacious bedrooms with two full baths, a home office and laundry room complete the seventh floor.

A beautifully custom-crafted staircase unites the home’s three floors and is adorned by a whimsical mural. Below the staircase is a children’s dream: a hidden playroom equipped with monkey bars, secret hatch doors, a chalkboard wall, and a “jailhouse intercom” to the upstairs playroom.

The “piece de resistance,” of the home’s eighth floor is the west-facing “Saloon Room.” This spectacular entertaining space features a vintage barback with custom inlaid stained glass and is complimented by a custom-designed fully equipped wet bar, and a gas fireplace with stone hearth. Also on the eighth floor are two additional bedrooms (one currently used as a home gym) and a full bath.

Ascending to the ninth floor, the highest floor of the building, you will find the primary suite and the private wing of the home. The primary suite is a zen and peaceful retreat, bathed in light from newly installed skylights. Features of the primary suite include a gas fireplace, wet bar with refrigerator, custom built-in massage bed, and a cozy seating area designed to evoke the inside of a hull of a tree. Two fully outfitted walk-in closets and a bath with his and her vanities, steam shower, and an entirely separate room with soaking tub complete the primary suite. The ninth floor also features two spacious bedrooms, another full bath, a second playroom and second laundry room – completing this unparalleled and unique offering.

34 Gramercy Park East is a white-glove full-service cooperative, built in 1883 as New York City’s “first cooperative.” It has a storied history and has been home to many notable figures, including James Cagney and Margaret Hamilton, the Wicked Witch of the West.

Go here for more listing details.

Community News & Information • March 9, 2021

Seattle City Council Passes Resolution Endorsing Southeast Seattle Creative District

by Don Koonce

SEED Arts
KVRU Radio
Rainier Valley Rotary
Rainier Beach Action Coalition
Seattle World Percussion Society
Urban Impact
Seattle Office of Arts and Culture
Communities Rise
QueenCare
Northwest Tap Connection
The owners of the Black and Tan Hall

Sellers • March 4, 2021

Why Should You Stage Your Home When It’s For Sale?

by Don Koonce

In order to sell your home, it must be successfully marketed to potential home buyers. Developing a winning strategy to attract as many buyers as possible to your home is something your real estate agent will work on, and part of that process may include staging.

Staging doesn’t just involve decorating your home; it’s using furniture and décor to reveal the possibilities in the space in order to make it appealing to a wide variety of buyers. It is an important step to helping buyers imagine the space for their own use, and it often leads to a higher dollar value and quicker sale time.

Staging for Buyers

A well-staged home creates stunning photographs that will attract buyers as they search online. In 2020, 97% of home buyers used the internet to search for prospective homes, and about half of them used mobile devices like smart phones and tablets. Because photos on a mobile device can be quite small and easily swipeable, staging has the potential to grab a buyer’s eye and pull them into the listing. Once they visit in person, staging serves to elevate your space while allowing buyers to visualize themselves living in your home.

Investment and ROI

For a relatively low investment, the return on investment (ROI) for a staged listing is worth it for just about any home seller. No matter the size of your home, the average investment on staging is 1% of the sale price of the home. And that 1% investment can lead to amazing gains. According to a 2020 survey by the Real Estate Staging Association, of those who spent 1% on staging, 75% saw a return of 5-15% over the asking price. As this shows, investing in staging can turn into one of the best ways to add value to your home.

In addition to increasing the dollar value of your home, staging is also likely to lead to a quicker sale. In 2020, staged listings sold after an average of 23 days on market. That’s two days faster than the national average of 25 days on market in the same year.

Your real estate agent can connect you with a professional stager who they will work side-by-side with to create a cost-effective strategy for staging your home and getting it sold in the most efficient and effective manner.

Financial • March 2, 2021

Justice Department to Appeal Judge’s Order on CDC Eviction Moratorium

by Don Koonce

After a federal judge in Texas ruled last week that the federal government’s eviction moratorium is unconstitutional, the Justice Department says it will appeal.

The appeal comes days after U.S. District Judge J. Campbell Barker issued a 21-page ruling saying that the Centers for Disease Control and Prevention’s eviction moratorium is unprecedented, overbroad and unlawful.

“Although the COVID-19 pandemic persists, so does the Constitution,” the judge wrote in last Thursday’s decision.

He added that while individual states have the power to enact such restrictions, the federal government does not.

“The federal government cannot say that it has ever before invoked its power over interstate commerce to impose a residential eviction moratorium,” Barker wrote. “It did not do so during the deadly Spanish Flu pandemic. Nor did it invoke such a power during the exigencies of the Great Depression. The federal government has not claimed such a power at any point during our Nation’s history until last year.”

In response, the acting assistant attorney general in charge of the Justice Department’s civil division said that prosecutors respectfully disagree with the ruling.

“The CDC’s eviction moratorium, which Congress extended last December, protects many renters who cannot make their monthly payments due to job loss or health care expenses,” said Brian Boynton in a statement issued Saturday. “By preventing people from becoming homeless or having to move into more-crowded housing, the moratorium helps to slow the spread of COVID-19.”

The CDC eviction moratorium was first signed by President Donald Trump last September, and has been extended twice. Most recently by President Joe Biden who — in his first day on the job and within hours of his inauguration — extended the ban until March 31.

The order has kept many of the country’s most vulnerable citizens from being forced out of their homes and deeper in debt during a public health emergency that has crippled the U.S. economy, and put 22 million Americans out of work last year, according to a report by Moody’s Analytics Chief Economist Mark Zandi.

Individuals with an estimated yearly income under $99,000 or joint-filing couples under $198,000 for 2020 are eligible, providing that their failure to pay rent is due to the coronavirus pandemic and that they would be displaced and forced into a “shared living” situation.

However, loopholes exist that allow some evictions and foreclosures to continue, as local housing courts across the country have interpreted the CDC order differently. In October, the CDC issued nonbinding guidance that landlords could file to evict tenants, as long as other stages of the eviction process, for example issuing a writ of eviction at the end of the case, are halted.

Meanwhile, small landlords are shouldering a huge economic burden due to the pandemic and resulting eviction ban. In fact, some property rights advocates warn that the eviction ban is not only straining the finances of landlords with fewer rental units, but also discouraging new rental units from being put on the market.

The federal government has yet to address the looming eviction crisis with a viable long-term plan.

SOLD • February 24, 2021

Sold this Month: West Seattle & Federal Way Homes

by Don Koonce

32618 50th Place SW
Federal Way, WA 98023
Listed at $560,000

Beautiful fully remodeled and spacious 4-bedroom, 3 full bathrooms home. Located in a great neighborhood, corner lot with lots of parking space. Kitchen with shaker style cabinets, quartz countertops, SS appliances. Designer style bathrooms. Master suite. Downstairs includes a spacious, cozy living area with fireplace. Brand new windows, brand new roof and fresh exterior paint. Large new deck is perfect for summer gatherings.

9444 26th Ave SW
Seattle, WA 98106
Listed at $515,000

Fabulous West Seattle location, moments from Westwood Village shopping & amenities. Approx. 1,470SF, with three bedrooms, one full bath, nestled on a spacious 7,000+ SF lot. Features include fresh paint throughout, hardwoods, new wall-to-wall carpet, laminate flooring & bonus den/office. Serene backyard farm-like setting with mature fruit trees, planter beds & room for more. Easy access to public transportation and freeways to downtown. One car attached garage + additional off street parking.