All posts by Karen Williams
Wire Fraud Alert!
Wire fraud has hit the real estate industry across the country, prompting a warning from the Federal Trade Commission. Our strong real estate market here in the Puget Sound area has made us a prime target for this type of theft.
If you are involved in a real estate transaction you need to pay close attention to all communications emailed to you and ensure they are from the official companies you are dealing with. Be sure to double check the email addresses from your title, escrow and mortgage companies match ones you’ve verified to be correct. Before wiring any money, pick up the phone and speak with someone you know and trust who is involved in the transaction. You want to make sure your hard-earned funds are sent to the correct place so your transaction can close on-time.
Housing Market Hits Another Grand Slam In April
J. Lennox Scott, Chairman and CEO of John L. Scott Reports on Housing Market
I WANT TO SELL BUT WHAT IF I CAN’T FIND ANOTHER HOME?
With more home buyers in our area than homes for sale, sellers who want to up-size or down-size in today’s limited inventory market may need a temporary housing plan if their current home sells before they’re able to find a new one.
If a bridge loan or rent-back doesn’t work and moving in with family or friends is NOT an option, some sellers are turning to Air BNB or Vacation Rentals By Owner (VRBO) for short term rental options. It’s a creative and viable option for the “off-season” but will come with a premium price tag as we move into the summer months. Bottom line – in this housing market you need to have a temporary housing plan in place…just in case.
Easements – What Homeowners Need to Know
Easements are defined as “a right of use over the property of another” and “a right to cross or otherwise use someone else’s land for a specified purpose”. Easements give their holder a non-possessory interest in another person’s land and they impact all types of real estate. Easements are used for many things including roads, utility and phone companies for the right to bury cables or access utility lines, or even entities such as transportation companies to access things like train lines if a property abuts it.
Easements can be found in the public records for your area and are part of the search the title company performs when determining the clear picture of a property during a real estate transaction. It is important to know what easements are included in a property you are thinking of buying because there are certain setbacks and restrictions that may come with an easement. For example, if you are thinking of buying a property with an easement through the middle of the backyard for the utility company to access utilities in your potential neighbor’s yard, there may be restrictions as to what you can build on the property. You may not be able to put in the swimming pool or shop you were dreaming of in this case.
Easements are even used for conservation preservation and historic preservation purposes.
Despite how common they are many people do not understand easements and the legal problems that can arise in their implementation. While an easement does give the easement holder access rights to access the land, it does not allow the easement holder to occupy the land or interfere with the property use (except as outlined). Easements are usually created by conveyance in a deed or another legal document like a will or contract and they stay with the property until legally removed or it expires. Simply selling a property does not nullify the easement.
Oftentimes the written document that created the easement is unclear or vague. For example, if an easement grants ingress and egress to another property (such as a driveway), but does not determine the width of the easement, that could be a challenge down the road if one of the neighbors wants to make the easement wider or narrower. If you are buying real estate I recommend having any terms such as these clarified during the title review period so there isn’t any confusion once you own the property. The easement intent may need to be clarified by a more in-depth title search or by a court if that information is not available. But remember that courts generally assume that the easement was created to last forever unless a specific timeline was indicated in the document. Therefore when buying a property it is important to make sure the language in the easement is clearly stated.
Housing Gridlock Grips Markets Close to Job Center
Housing Prices continue to rise due to the lack of inventory throughout King County. Many homebuyers are getting priced out of Seattle neighborhoods and are expanding their home search criteria to include neighborhoods like Normandy Park, Burien and Des Moines. The market in our area is now very active. Homes are selling quickly and for top dollar- but some still consider these neighborhoods a bargain.
What is a Home Warranty?
The term “home warranties” can refer to a number of different types of warranties. When buying or selling a home, different types of home warranties can provide benefits to buyers or sellers – and sometimes both. For sellers, a home warranty increases the perceived value of their home by providing an extra incentive. For buyers, a home warranty purchases a little extra peace of mind.
A home warranty is sometimes purchased independent of a real estate transaction by a homeowner simply wanting extra protection in the event of appliances breaking down or other issues that can come up in a home that are not protected under standard homeowners insurance.
However, sometimes home warranties are supplied by the real estate agent hired to sell the home protects the seller in the event an appliance breaks or other pre-existing, undetectable defects cause havoc during the listing.
In some cases, the eventual homebuyer may choose to extend this warranty once the property changes hands. Covered items vary widely on these types of warranties, so it’s a good idea to carefully review the warranty to be sure you’re receiving the coverage you need. In many cases, after-market warranties can be created from an “a la carte” menu, allowing you to select the coverage most important to you. Be clear on the exact resolution process when a problem arises with each covered item. For example, if the fridge breaks down, what is the process for getting it fixed?
Regardless of the type of warranty, there’s no doubt that they are an excellent tool to build trust and comfort between buyers and sellers.
For more of the nitty-gritty details on home warranties, give me a call at 206-484-2777 or send an email to karenwi@johnlscott.com. Let me show you how to use this strategy to your advantage.
Brace yourself; it’s going to be a wild ride in year 2016
Interest Rates and Buyer Buying Power
Interest Rates and Buyer Buying Power
I have fielded calls from buyers who had wanted to buy in the last year but felt they were priced out of the market. After a break, they are back, wondering what their next move should be. They want to pay what prices were over a year ago, not what prices are now with demand being high. However, is it really worth waiting for prices to come down (if they come down)?
Let’s look at an example. If you are considering the purchase of a $600,000 home and you want to “save” money, so you decide to “wait” until prices fall by 5% – or $30,000. But let’s look at the numbers if you were to purchase the $600,000 home today at today’s low interest rates:
| Home Price | $600,000 |
| Down Payment | $120,000 |
| Loan Amount | $480,000 |
| Interest Rate | 3.75% |
| Monthly Payment | $2,223 |
| Amount Paid Over Life of Loan | $800,263.74 |
But let’s say you decide to wait in the hopes of purchasing the home for $575,000 … and in the meantime rates creep up to 5.5%.
| Home Price | $575,000 |
| Down Payment | $115,000 |
| Loan Amount | $460,000 |
| Interest Rate | 5.5% |
| Monthly Payment | $2,612 |
| Amount Paid Over Life of Loan | $940,258.59 |
Over the course of 30 years, that additional $389 you pay each month adds up to an additional $139,995. The point of the story? Waiting to “save” money by hoping prices will drop may well cost you far more than your expected “savings”.
What should I do with my dog when I’m selling my home?
I am often asked by dog owners who are thinking of selling:
“What should I do with my dog when selling my home?”
This is a tough question! Many of my sellers are indeed dog owners whose dogs have a variety of things they do during the day when their owners are not at home. Some let their dogs roam free in the home. Others have dog runs outside. Still others keep them in a bathroom or garage when not home.
However, once you put your home on the market, it is imperative to have a plan for your pooch. Agents and their potential buyers will be in and out of your home throughout the day, and all those strangers through can make even the best-behaved pets a bit edgy and unpredictable. Furthermore, having pets in the home can make potential buyers nervous. Finally, the potential for having a pet accidentally get out of the home and take off is just too great.
The best plan? Unfortunately it is to remove them from the home while there is the potential for a showing when you are not home.
Consider friends or family members who may be able to care for Fido when you are out. There are also a number of “doggie daycares” that are great for these types of situations. If this is not possible, you may be able to crate the dog or put them in a dog run outside, but if it has a tendency to bark, growl, or howl, this is not a solution that is good for the buyer…or your dog.
And of course, all pet stains and smells should be taken care of. If pet hair is a problem, sweep and vacuum before leaving each day in the event you have a showing.