Sellers • May 25, 2021

The Risks of FSBO

by Don Koonce

Selling a home is a complex process that requires patience, knowledge of the market, and a deep understanding of the financial processes. And that’s just the beginning. Accordingly, many homeowners trust in a professional to sell their home by working with a real estate agent. Despite the expertise an agent brings to the table, some homeowners choose to go it alone, bearing the responsibility of a successful home sale on their own shoulders. If you’re thinking about selling “For Sale by Owner”, or FSBO, know that there are certain risks and obstacles that can easily cause your home selling journey to veer off course.

The Risks of FSBO

Real estate agents are professionals who possess a vast knowledge of both the industry at large and local market conditions acquired through years of training, certifications, and working with clients. For FSBO sellers, the complexities of the home selling process can easily illuminate a lack of experience and leave them feeling unsure of how to continue, or worse, situations may arise where proceeding incorrectly could jeopardize the transaction. This lack of expertise could lead to incorrectly pricing your home, which will attract the wrong buyers. An accurately priced home requires market knowledge and an objective approach to the home’s value, which can be tough for homeowners. The more time an overpriced home spends on the market, the more likely the price will have to be lowered. A home with a lowered price that has been on the market for some time is less appealing to buyers than an accurately priced new listing. An underpriced home could leave significant money on the table for the seller.

A common motivating factor for wanting to sell FSBO is that, in the case of a successful sale, the seller avoids paying commission to an agent. However, what that commission ultimately pays for is a vast skill set that is specifically trained to get you the most money for your home. Agents not only have access to all kinds of information on local market conditions, trends in the real estate market, and data on comparable homes in your area, they are also connected to a network of potential buyers and have the marketing know-how for appealing to them and any others in your market. To attempt to approach this same level of visibility while selling FSBO means incurring additional expenses like ad placement, signage, hiring a photographer, and more.

Selling a home takes up a great deal of time. FSBO sellers can expect to stage the home, host showings and tours, answer phone calls from buyers, interview home inspectors, and coordinate open houses, all while gathering data on the local market—and that’s all before any negotiations or paperwork. When an offer comes through, FSBO sellers must dive into the extensive documentation required for the mortgage, title transfer, and any other legalese involved in the transaction. It’s like having another job that you may simply not have time for, whereas a real estate agent’s job is to dedicate their time, energy, and experience to the successful sale of your home.

All these factors make selling FSBO a risky proposition. Mistakes in the selling process can lead to both financial and legal implications, but part of a real estate agent’s expertise is knowing how and when these dangers can arise and navigating them properly. If you’re looking to sell your home, please feel free to contact me.

Events • May 24, 2021

YOU’RE INVITED: Upper Rainier Beach Garden Stroll

by Don Koonce

Restaurant Reviews • May 20, 2021

RESTAURANT REVIEW: Pizzeria Pulcinella in Rainier Beach

by Don Koonce

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

Recommendation: If you’re in the mood for some authentic Neapolitan pizza, I recommend giving Pizzeria Pulcinella a try.

Background: We’ve been going to Pizzeria Pulcinella for a number of years and always have a great experience.

Atmosphere: The restaurant is in a historic building that housed Lakeside Tavern as the last tenant before Pizzeria Pulcinella. Lakeside Tavern had one side of their sign upside down and the other side right side up. In that tradition, Pulcinella installed their sign the same way and have the old Lakeside Tavern sign on the wall inside their restaurant. The atmosphere is cozy and inviting, with the original wood floors and of course the centerpiece being the wood-fired pizza oven.

Location: Pizzeria Pulcinella sits about two miles north of the Renton/Seattle border in Rainier Beach. It’s a favorite neighborhood spot among South Seattle residents, so you’ll see lots of regulars.

Food: I have had many of the pizzas and salads and never had one that I didn’t like. My favorite salad is the Insalata Pulcinella which is mixed greens, toasted almonds, cranberries, seasonal fruit, fresh mozzarella, pomegranate red wine vinaigrette, but it is difficult to choose a favorite because they are all so good! Same goes for the pizza, but if I have to choose, it would probably be the Giovanni which is roasted pepper and pesto sauce, mozzarella, pepperoni, sausage, onion, cremini mushrooms, fresh tomatoes. They also have pasta dishes and dessert.

Bonus: Pulcinella has been “certified Neapolitan” by the Verace Pizza Napolitana Association since 2009.

Pizzeria Pulcinella
10003 Rainier Ave S.
Seattle, WA 98178

Buyers • May 18, 2021

Buying with Gardening in Mind

by Don Koonce

Every home buyer has a list of must-have amenities that they’re just not willing to compromise on. For some, it could be an open floor plan or maybe a certain number of bedrooms. For others, that priority is a place to garden.

A garden provides a place where one can nurture the earth, feel connected to other living things, and have a positive impact on the environment. If you’re a home buyer who requires space to garden, here are a few things to consider:

The Hardiness Zone

When searching for a home, location is always high on the list of priorities, and for gardeners, it’s no different. If having a garden is important to you, the first thing you should do is check the hardiness zone to determine what you can realistically grow at any home you are considering buying.

Hardiness Zones are used by gardeners and growers around the United States to determine which plants will grow best in their region. The USDA uses the average annual minimum water temperature in the area to establish the zones, making it a great place to start when looking for your next garden.

Hardiness Zones don’t change by street like neighborhoods do but knowing where you are in the zones map can be a helpful guide to what to expect, especially if you’re moving to a completely new region.

Outdoor Space

Your Windermere agent will be able to use a combination of property metrics, photos, and land surveys to help narrow down your search to homes with adequate outdoor space for a garden.

Ask your agent about lot size versus the home size to make sure there is enough land to build and sustain a garden. Prior to visiting homes in person, check the exterior photos to get an idea of the area.

Local Wildlife

Local wildlife organizations have resources about the animals that might appear in your backyard. Knowing this will not only help you protect your veggies, herbs, and other plantings, but also aid in creating a wildlife-friendly sanctuary. The National Wildlife Foundation offers suggestions on how to do this and offers tips on how to attract songbirds and butterflies to your garden.

Infrastructure Requirements

Depending on the size of your garden, you may need to set up appropriate infrastructure for easier care, like a sprinkler system, raised beds, or outbuildings. If the land is uneven, consider installing raised beds that will help flatten the growing surface for your veggies and fickle flowers. A greenhouse can help you control humidity and light levels but be sure to consider the construction costs alongside your home loan amount.

Real Estate News & Information • May 11, 2021

Q1 2021 Western Washington Real Estate Market Update

by Don Koonce

The following analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist Matthew Gardner. We hope that this information may assist you with making better-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact your Windermere Real Estate agent.

REGIONAL ECONOMIC OVERVIEW

In the summer and fall of 2020, Western Washington regained some of the jobs lost due to COVID-19, but employment levels in the region have been in a holding pattern ever since. As of February, the region had recovered 132,000 of the 297,000 jobs that were lost, but that still leaves the area down by 165,000 positions. Given the announcement that several counties may have to roll back to phase 2 of reopening, I would not be surprised to see businesses hold off on plans to add to their payrolls until the picture becomes clearer. Even with this “pause” in the job recovery, the region’s unemployment rate ticked down to 6.1% from the December rate of 6.4% (re-benchmarking in 2020 showed the December rate was higher than the originally reported 5.5%). The lowest rate was in King County (5.3%) and the highest rate was in Grays Harbor County, which registered at 9.2%. Despite the adjustment to the 2020 numbers, my forecast still calls for employment levels to increase as we move through the year, though the recovery will be slower in areas where COVID-19 infection rates remain elevated.

WESTERN WASHINGTON HOME SALES

❱ Sales in the first quarter were impressive, with 15,893 home sales. This is an increase of 17.5% from the same period in 2020, but 32% lower than in the final quarter of last year—a function of low levels of inventory.

❱ Listing activity continues to be well below normal levels, with total available inventory 40.7% lower than a year ago, and 35.5% lower than in the fourth quarter of 2020.

❱ Sales rose in all counties other than Jefferson, though the drop there was only one unit. There were significant increases in almost every other county, but sales growth was more muted in Cowlitz and Thurston counties. San Juan County again led the way, likely due to ongoing interest from second-home buyers.

❱ The ratio of pending sales (demand) to active listings (supply) shows how competitive the market is. Western Washington is showing pendings outpacing new listings by a factor of almost six to one. The housing market is as tight now as I have ever seen it.

WESTERN WASHINGTON HOME PRICES

❱ Home price growth in Western Washington continues to trend well above the long-term average, with prices 21.3% higher than a year ago. The average home sale price was $635,079.

❱ Compared to the same period a year ago, price growth was strongest in Grays Harbor and Mason counties, but all markets saw double-digit price growth compared to a year ago.

❱ Home prices were also 2.9% higher than in the final quarter of 2020, which was good to see given that 30-year mortgage rates rose .4% in the quarter.

❱ I expect to see mortgage rates continue to trend higher as we move through the year, but they will remain significantly lower than the long-term average. Any increase in rates can act as a headwind to home-price growth, but excessive demand will likely cause prices to continue to rise.

DAYS ON MARKET

❱ The market in early 2021 continued to show far more demand than supply, which pushed the average time it took to sell a home down 25 days compared to a year ago. It took 2 fewer days to sell a home than it did in the final quarter of 2020.

❱ Snohomish and Thurston counties were the tightest markets in Western Washington, with homes taking an average of only 15 days to sell. The greatest drop in market time was in San Juan County, where it took 52 fewer days to sell a home than it did a year ago.

❱ Across the region, it took an average of only 29 days to sell a home in the quarter. All counties saw market time decrease from the first quarter of 2020.

❱ Very significant demand, in concert with woefully low levels of supply, continues to make the region’s housing market very competitive. This will continue to be a frustration for buyers.

CONCLUSIONS

This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.

Demand is very strong and, even in the face of rising mortgage rates, buyers are still out in force. With supply still lagging significantly, it staunchly remains a seller’s market. As such, I am moving the needle even further in their favor.

As I mentioned in last quarter’s Gardner Report, 2021 will likely see more homeowners make the choice to sell and move if they’re allowed to continue working remotely. On the one hand, this is good for buyers because it means more listings to choose from. However, if those sellers move away from the more expensive core markets into areas where housing is cheaper, it could lead to increased competition and affordability issues for the local buyers in those markets.

ABOUT MATTHEW GARDNER

As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.

In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.

Buyers • May 6, 2021

Working with a Buyer’s Agent

by Don Koonce

What is a Buyer’s Agent?

A typical real estate transaction involves a buyer’s agent representing the buyer and a listing agent representing the seller. A buyer’s agent helps the buyer identify potential homes to pursue, advises them on negotiations, and helps navigate any hurdles during the buying process. Once they are under contract, the buyer’s agent will work to close the sale, monitoring all the key dates and deadlines along the way. Once the transaction is complete, buyer’s agents split the commission of the sale with the listing agent.

Advantages of Working with a Buyer’s Agent

Find the right home

A buyer’s agent not only possess expert knowledge of local market conditions, but they also have access to tools that will help their clients see the widest array of available homes, and eventually, find the right home. By exploring the Multiple Listing Service (MLS), they can access the vastest network of available listings, and receive up-to-date alerts on open houses. They are usually the first to know when a home hits the market and are sometimes aware of homes that are scheduled to list in the near term. Buyer’s agents can advise their clients on how a home’s outstanding repairs and improvements could affect their decision to purchase, whether the home is in need of an inspection, and discuss the necessity of a home warranty.

Save time

Buying a home takes time, but a buyer’s agent will help streamline the buying process. This includes paying close attention to their client’s budget and preferences in order to focus their home search to only those listings that match their needs. Buyers can then decide which homes they would like to view in-person and their agent will contact the corresponding listing agent to set up showings. Buyer’s agents are founts of knowledge, able to provide or track down information a buyer may not be able to readily access on their own. Additionally, they are connected to a network of professionals and can produce references for mortgage brokers, real estate attorneys, inspectors, and more as needed.

Making an Offer

Once you’re ready to make an offer on a home, the importance of working with a buyer’s agent kicks into high gear. There are many different elements that impact an offer’s success, and this is where a good buyer’s agent’s specialty lies. Through their expertise, they can help their clients craft a more competitive offer and negotiate as needed. Sometimes the most competitive offers are not just about the price. Offers can win when a buyer’s agent has researched the seller’s needs and pulled together an offer that speaks to those needs. Any advantage buyers can gain to make their offer stand out will strengthen their case. This is especially important in competitive markets when multiple competing offers are on the table.

Throughout the process of making an offer on a home, a buyer’s agent is there to answer any questions that may arise and pore over the details so that nothing goes unnoticed. This is critical since sellers will likely toss aside any offers that come in with missing documents, errors in the contract, and other inconsistencies. When buying a home, buyers often fear that they will miss something during the buying process, that they are going to pay too much, that there will be something wrong with the house after they buy it, or that they’ll lose the home to another buyer. Buyer’s agents help to alleviate these stresses and make sure the buying process runs smoothly.

When determining which agent to work with, it’s important to ask questions to gain an understanding of their expertise, see their personality, and get a gauge of how well they understand what you’re looking for in a home. If you would like some help connecting with an agent, you can get started here: Connect with An Agent

Sellers • May 4, 2021

The Benefits of a Pre-Listing Inspection

by Don Koonce

Pre-listing inspections can help sellers better understand the condition of their home before putting it on the market. They can also strengthen a home’s appeal to potential buyers and help to streamline the offer process, which is especially important in competitive markets. However, pre-listing inspections can also open sellers up to added liability. Talk to your Windermere agent to understand if conducting a pre-listing inspection is right for your home.

What is a Home Inspection?

Conducted by a licensed home inspector, a home inspection is a detailed review of the condition of a home and property. Inspectors examine everything from a home’s electrical work and sewage to its heating and cooling systems, searching for any evidence of damage or structural issues that may affect its value. By having your home inspected before you sell, you’ll have the chance to discover whether it needs any repairs or upgrades.

Pre-Listing Inspections

Pre-listing inspections not only help identify repairs, but they can also make the selling process more efficient. A pre-listing inspection discloses a home’s condition to buyers up front and gives them confidence that the seller is being transparent about any possible issues. This can save significant time for both buyers and sellers, especially in competitive markets where there are multiple offers on the table.

Something for sellers to keep in mind is that if a home in a competitive market does not provide a pre-inspection report, buyers may be hesitant to make an offer knowing the time it takes to perform an inspection and the fact that they are likely competing against several other buyers who are willing to waive this step.

The Benefits of a Pre-Listing Inspection

Home inspections give a good baseline of your home’s condition. The information gathered during this process is exactly the kind of in-depth knowledge that buyers want to know when considering placing an offer on a home.

Since buyers will know right away what repairs are needed, they can factor them into their initial offer, as opposed to discovering them during the inspection contingency and getting entangled in negotiations. Being forthcoming about your home also reduces the chances of an offer falling through and the buyer walking away.

An added benefit of a pre-listing inspection is that it helps your real estate agent more accurately price the home and enables them to market it with the knowledge that everything is being presented in the most transparent way possible.

If you have any questions about home inspections or any of the steps in the selling process, feel free to contact me. I’m happy to help.

Meet My Team • April 28, 2021

Meet My Team: Craig Ellis, Sr. Account Executive with CW Title & Escrow

by Don Koonce

Welcome to Meet My Team, a series of get-to-know-you interviews with the high-quality real estate professionals I work with regularly to provide the best possible service to my clients.

Craig is my title representative. I reach out to Craig when I need to order title reports for listings. Craig will review the title so that we can work out any issues that may appear in the report before the listing goes live. Craig also reviews my buyer’s title reports and alerts me to any red flags on the report that may limit their intended use of the property even if his company didn’t issue the title report. This is a very valuable service to buyers.

Craig Ellis has been with CW Title & Escrow for 15 years and has been in the title industry for 25 years. He lives in Bellevue with his wife Catherine of 25 years.

This week, Craig took time out of his busy schedule to tell us a little about his life and career.

Where from originally?
Born and raised in Seattle.

How did you get your start as an account executive?
I was initially a lender and was approached by a title company to join their sales force over 25 years ago. Best career move for me. CW Title is a locally owned company and as employees, we take pride in our company because it’s “our” company. We strive to be the best!

What do you like most about being an account executive?
Developing strong and loyal relationships with clients, and working to help them become successful in their business.

What is the number one question you get asked in your business and how do you answer it?
Q: Why do I need title insurance?
A: Title insurance is your protection in the event that a title error arises after a loan closing. This could, at the very least, mean a variety of legal costs, and, in a worst-case scenario, the loss of your property and the money you’ve put in it.

What do you like about working with Don?
Don is a true professional. He is thorough, knowledgeable, thoughtful, and always has his clients’ best interests at heart.

Tell us about your work in the community.
I’m an avid volunteer. My desire is to help better our communities either with dedicated time or financial assistance.

What motivates you to do this work?
I enjoy helping people. My goal is to provide prompt service and gain the trust of my clients.

What are you passionate about?
Good health and my family.

What are your hobbies?
Spending time with my family and staying active by taking advantage of local mountains, beaches, and sporting events. Anything that encompasses exercise. I enjoy the outdoors!

Tell us about your family:
My wife and I are celebrating 25th anniversary this year. We have a daughter Holly, 23 and a son Mark, 21.

What’s your favorite thing about Seattle?
Summer in Seattle. It’s hard to beat the perfect weather for enjoying the outdoors. Whether I’m running Green Lake, hiking Poo Poo Point to watch the hang gliders, or taking in the many festivals (when not in a pandemic), there is always something fun to do during our summers.

Restaurant Reviews • April 22, 2021

RESTAURANT REVIEW: Ballard’s San Fermo

by Don Koonce

We recently went to San Fermo to celebrate a friend’s birthday. With only have a sample menu online, we didn’t really know what to expect, but are always open to trying new restaurants so were eager to try it.

Located on Ballard Avenue in the main Ballard business district, San Fermo offers a small menu that changes daily. We had reservations, which I recommend since the restaurant is small and has limited seating due to Covid restrictions.

Almost all the seating is outside, some in front of the restaurant in a tent that is open on one side, with heaters, and some in a small courtyard on the side of the building. We were seated in the courtyard with overhead infrared heaters, which did a great job of keeping us warm. It can get a little toasty on top of your head, but I was happy to be able to take my jacket off and still stay warm.

The courtyard was reminiscent of outdoor dining in Italy. From the time that we were seated, the wait staff were very attentive and fun. San Fermo offers a nice wine selection, and they make their pastas fresh so any of the pasta dishes are recommended. I had the Cesar salad which I thoroughly enjoyed, and it is large enough for two people. For my entrée I had the lamb shank (polenta, local roots, purple broccoli and beet pomegranate agrodolce), which was amazingly tender and flavorful.

Everyone else in our party got the Saffron Spaghetti Bolognese (pork, veal, rosemary, fennel and parmigiano reggiano) The bite that I had was delicious and I will probably get that next time there. If you are looking for a place that has great food, a nice wine selection, and a clean, open-air dining experience, I recommend checking out San Fermo.

San Fermo
5341 Ballard Ave NW
Seattle, WA 98107

Buyers • Case Studies • CoBuy • April 19, 2021

COBUY SUCCESS STORY: First-Time Home Buyers Get $5k Credit After Careful Inspections

by Don Koonce

As first-time homebuyers in a very competitive seller’s market, Eric and Valerie’s journey didn’t have to be so smooth. But the Bay Area natives were extremely organized and knew exactly what they wanted, so we jumped right in after being introduced via CoBuy – an online platform that makes it easier to buy a home with friends, family members or both.

I scheduled a Zoom call so we could meet, and I could learn their criteria by going through my dream home questionnaire. I learned that Eric and Valerie wanted to buy in the Queen Anne, Magnolia, Ballard or Fremont neighborhoods, so I set up an MLS search and began sending listings their way.

They let me know which homes they wanted to see, and I set up the tours. Their search was pretty short with only about four tours and twelve homes which ultimately boiled down to two listings.

Upon seeing the first one, they liked it so much that they decided to cancel the tour of second. The first house had just come on the market the day before, and the owners were reviewing offers upon receipt.

I advised Eric and Valerie to get their offer in right away before another buyer beat them to it, so we scheduled a time to chat and strategize an offer that would be hard for the seller to refuse.

I got the offer written, reviewed, signed, and submitted within a couple of hours of leaving the property, and we had an answer the next morning. The seller accepted their offer with one counter on the terms. Eric and Valerie had asked for a two-day inspection contingency, and the seller countered with a one-day contingency.

Fortunately, I already had the inspection lined up, but I still needed to get a sewer scope scheduled, so I contacted my trusted sewer inspector. Unfortunately, he was all booked up, but I was able to schedule with another contractor that I had worked with previously. Eric, Valerie and I attended the two inspections, and the home was in good condition. However, it did have a couple of items that needed attention, so we asked for a $5,000 credit, and the seller agreed.

The appraisal was scheduled and completed a few weeks later, coming in at-value with no work orders. Eric and Valerie closed shortly thereafter and are now happily moved into their new Queen Anne home.

Congratulations, you two!