Category Archives: Des Moines

Homeowners Insurance – Are You Covered?

Burien, Des Moines, Normandy Park, Real Estate, West Seattle, ,

In light of the recent hurricanes that have ravaged the East Coast, the earthquake that decimated parts of Mexico and wildfires in the West that are burning up homes and businesses,  it seems like a good time to check in with your insurance agent to review your policy and determine if there are holes. Here are some questions to guide that conversation:

How am I covered in the case of water damage? Water from a natural disaster is usually treated differently than water damage from typical weather. Ask questions around the different types of water damage your home might sustain so you understand what you are and are not covered for.

How am I covered in the case of wind damage? Does your insurance company treat a tree falling on your roof differently than the wind ripping the roof off? Think about the different wind events that might befall your property and ask questions.

Am I covered in case of an earthquake? It might surprise you to know that most policies do not cover earthquake damage, but often you can get coverage added on.

What happens if my belongings get damaged? Most insurance will cover your belongings in the home if they are damaged, but what about your lawn furniture and BBQ?

What are the holes you see in this policy? Your agent has probably seen a number of claims so it will be easy for them to see some typical issues that are not covered by their policy. Some may have additional coverage that you can get but in some cases, you will need to cover these items yourself (such as landscaping damage).

Your home is likely your most valuable asset! Don’t let a disaster drain your equity. Get smart about your homeowners insurance and protect your investments.

Outdoor Space May Be The Ticket to Sell Your Home!

Burien, Des Moines, Normandy Park, Real Estate, West Seattle, ,

Outdoor spaces are highly desired by homebuyers young and old. If you have been evaluating your home’s outdoor space potential and are ready to make some improvements, consider the following:

  1. The flow from the inside to the outside –Glass folding door/walls are the newest rage, but if that is too costly, then look for more ways to let in more light and the view by changing walls into windows.
  2. Creating rooms – Through seating, places to put down drinks and books, plants, and even rugs to define spaces, create a sense of comfort by defining different spaces to relax.
  3. Getting cozy – Today’s outdoor furniture includes robust couches, coffee tables, and chairs with ample weather-resistant cushions.
  4. Checking out the lighting –Lighting in the garden, around seating areas, and highlighting certain garden features can have big impact!
  5. Power! – Adding outdoor power outlets allows you to do things like charge your phone and work on your computer while lounging.
  6. Music – Outdoor speakers that are hooked into a central sound system can also set the mood.
  7. The Fun! – Now for the extras! What kind of recreation do you want? A fire pit?  Out- door Kitchen? Horseshoes?

Of course, if you are just creating outdoor spaces to appeal to a wider range of homebuyers, you should make different choices than if you are actually planning on enjoying your space for several years to come.

 

 

Do I Really Need An Inspection?

Burien, Des Moines, Normandy Park, Real Estate, West Seattle

If you are thinking about buying a home, you may be wondering if you really need an inspection. In areas that have very high demand and low inventory, some buyers are choosing to waive the home inspection so their offer is more appealing for home sellers. Especially in situations where the home buyer won’t be asking a home seller to fix any issues anyway, you may indeed be wondering if it is worth the time and expense to do one.

I always recommend that my buyer get a home inspection, even in a highly competitive market. If the inspector finds an issue with the home that may cost in the thousands and thousands of dollars to repair, I want my buyer to know that going into the purchase.

For listings that are likely to get multiple offers, one strategy is for the buyer to get a pre-inspection before the buyer makes an offer. Of course, there are pros and cons to this strategy. Virtually all inspections turn up issues – even in new homes. In a traditional offer situation, both parties have already gone through one set of negotiations to get the offer accepted by both parties before the inspection even takes place. Both have a vested interest in completing the sale, but with a pre-inspection, the buyer may be soured on a property before the offer has even been written and they are several hundred dollars out of pocket on every property they choose to do a pre-inspection on. The benefit of the pre-inspection is that once a buyer understands what they will need to fix down the road, they can make an offer without an inspection contingency. However, the seller may still choose another offer and all the buyers’ due diligence would have been for naught.

Some sellers in hot markets are doing a pre-inspection with the help of an inspector, and are choosing to get several items on the list fixed before putting the home on the market. They make the inspection and the record of improvements available for buyers in the hopes more buyers will make an offer if the need to get an inspection is off the table. Although this is an interesting solution to this problem, I have some concerns that I will share with you before considering purchasing a home with this option.

I even recommend getting an inspection for new homes! If you are buying new, it may be tempting to save that inspection, but even brand-new homes can have problems. For example, seals on windows can break as the house is settling, drainage issues, and even incorrectly-installed flashing around doors and windows are issues that can spell big trouble down the line if the builder doesn’t get them fixed.

If you are buying a home, getting an inspection lets you get to know the home and learn about the major and minor issues the property has before making the investment. No home is perfect, but having an inspection allows you to learn about how imperfect a home is before moving in. For more information, give me a call or text: 206-484-2777 or email: karenwi@johnlscott.com

Heating Home Options

Burien, Des Moines, Normandy Park, Real Estate, West Seattle,

Brrr!!! It has been a chilly winter! If your heater has worked overtime this year and is on its last legs, it might be time to consider a replacement. But what is the best home heating solution for you? Let’s examine the most popular options:

  • Furnace – Furnaces heat air utilizing natural gas, propane, heating oil, or electricity and distribute it through the home through a system of ducts. Furnaces are usually between 59-98.5% efficient depending on a number of factors including the age of the unit. They usually last between 15-30 years.
  • Boiler – A boiler heats water and provides heat or steam as heat which is distributed through pipes to radiators or radiant floor systems. Boilers are between 50-90% efficient and also last between 15-30 years. They can be fueled with natural gas, propane, heating oil, biodiesel, and electricity.

Central furnace or boiler efficiency is measured by AFUE, or Annual Fuel Utilization Efficiency. This allows consumers to evaluate the efficiencies of the different models and fuel types. The AFUE is the ratio of annual heat output compared to the annual fossil fuel energy consumed. For example, a rate of 93% means that 93% of the fuel used becomes heat for the home while the other 7% escapes or is otherwise used to make that 93%. New high-efficiency heating systems can have between 90%-98.5% AFUE. One thing to note when you are considering the different system options is if you don’t have a system of ducts or radiators in place already, retrofitting these into the home will be expensive.

  • Heat Pump – Heat pumps are units that are placed outside and pull heat from the surrounding air to warm the home. One big benefit of a heat pump is that it can also be used to cool a home in the summer. The efficiency is measured in HSPF (which measures the ratio of BTUs of heat output to watts of electrical energy consumed and stands for Heating Season Performance Factor) and these units are rated between 6.8-10. Heat pumps are usually fueled by electricity but some utilize geothermal energy. Heat pumps last an average of 15 years.
  • Active Solar Heating – This is an up-and-coming technology which works with the sun. The sun heats water or the air to either deliver heat immediately or it save it for future use. Depending on the area, a second system may be required in the event that not enough heat is stored. However, if you are a fan of solar energy, the energy used to power any of the above units can come from solar panels!

There are also single room heating and cooling options that you might come across. And remember! Many local utilities offer financial incentives to upgrade your unit or change fuel types, so check into those available rebates when replacing your unit.

Questions about what buyers are looking for in terms of heating options and efficiencies? Let’s talk! Give me a call: (206) 484-2777or send an email: karenwi@johnlscott.com.

 

Source: https://energy.gov/articles/energy-saver-101-infographic-home-heating

Seller Strategies for Evaluating Multiple Offers

Burien, Des Moines, Normandy Park, Real Estate, West Seattle

If you are considering a sale in our market right now, depending on the price point, area, and property amenities, you may receive multiple offers for your property. Although price will likely be at the top of your list of variables to measure, there are a number of other items that may be included in the offer that should be evaluated:

  • Price – Although this is the primary concern for most sellers, there is more at stake than just money. Read on!
  • Escalation Clause – Savvy buyers may include an escalation clause which allows the price to inflate to a certain amount dependent on what other buyers have offered.
  • Earnest Money – Buyers include earnest money which represents the buyer’s ability to complete the transaction as outlined in the contract. In the event the buyer defaults, the seller would be able to keep this money.
  • Sale of Buyer’s Current Home – Do the buyers have to sell their home before buying yours? When there are other buyers and sellers in the mix and your home sale can be affected by their financial soundness and ability to close, this needs to be taken into consideration.
  • Financial Position – Sellers are picky about the price of the home and how the home is paid for. There are a number of things to consider in this category such a how much of a down payment the buyers are coming up with or if they are paying cash, what financial institution is the financing through, and what type of loan are they getting.
  • Appraisal – If the buyer is getting a loan from a bank, the bank will require an appraisal done on the property to make sure their financial interest is protected. But what happens if the appraisal comes in lower than the purchase price and the bank won’t loan the full amount expected? How submitted offers address this situation need to be evaluated.
  • Inspection and Requested Repairs – Did the buyers get a pre-inspection or do they plan on having one after the offer is accepted? What will happen if the buyer finds items that they want to negotiate to be repaired? Different buyers have different comfort levels when it comes to these issues and this is a top variable to evaluate and determine the parameters that are most advantageous for you.
  • Additional Items – Do the buyers want the chandelier in the dining room? How do you feel about that?
  • Closing Date – How does your preferred closing date concur with theirs?
  • Rent Back – If you need more time to move out after closing and get your next home transaction in order, will the buyer allow for a period of time to rent back the home for a few weeks up to a month or two?

As you can see, there is so much more than price to consider when evaluating offers. If this has you overwhelmed, don’t worry! I will be there to help you evaluate the offers and determine the best course of action for you. Please contact me to discuss further at 206-484-2777 or karenwi@johnlscott.com

Hot Off The Press

Burien, Des Moines, Normandy Park, Real Estate, West Seattle,
  • Seattle’s not the only place with increasing home prices. Record rising home prices have hit the suburbs. The median single family home price in Southwest King County (Burien, Tukwila, Des Moines, Normandy Park, SeaTac, Federal Way and West Kent) increased 11.2% last month compared to February 2016. North King County (Shoreline, Lake Forest Park and Kenmore) median home prices rose by 16.6%, according the Northwest Multiple Listing Service.
  • Did Seattle’s population just hit 700,000? According to Mayor Murray in his State of the City address, 67 people per day moved to Seattle in 2016. If true, this pushed the city population over the 700,000 mark. You can’t help but wonder what these people think about all our rain?
  • The cost of a parking spot: A designated spot in the Park Slope Garage in Brooklyn New York is on the market for $300,000. That’s the same price as a condo in other parts of the neighborhood.   The Associated Press as printed in the Seattle Times.

 

Home Seller Q & A

Burien, Des Moines, Normandy Park, Real Estate, West Seattle,

Here’s a Few Frequently Asked Questions by Sellers:

How much notice am I given if an agent wants to show potential buyers my house?

In our area, one – two hours is typical, but if you need to be given more time, we can specify this in the listing information. However, when agents are touring buyers, they may be looking at several homes in a row. The agent will do the best he or she can to arrive at your home in the provided window, but if the tour goes quicker or longer than expected, they may arrive at your home either before or after they have specified. I know it can be difficult, but try to be as flexible as possible.

My baby naps between 10:00-12:00 noon and 3:00-4:30 pm each day. I would prefer to only have my home shown after 4:30 to not disrupt his schedule. Is that possible?

That is possible, but I do recommend having an alternative napping situation on the weekends when many buyers may be out wanting to see properties. You don’t want potential buyers having to skip seeing what could be the perfect home for their buying needs because it doesn’t fit into Junior’s schedule. The more limited the showing schedule, the fewer potential buyers, the smaller the buyer pool, which generally means a lower selling price.

What if I want to take the chandelier in the dining room and kitchen sink faucet with me when I move? Is there something special I need to do?

You have two options – replace these fixtures now before the home goes on the market or designate that these come with the house. In my experience, removing the fixtures you intend to take before the home goes on the market is the best way to avoid misunderstandings and conflict later.

What if I don’t have extra money to fix anything that the buyer has listed to be fixed after the inspection?

Fixes after the inspection can be negotiated. However, my advice is to read the request for repairs from the buyer’s point of view and keep an open mind. There may be small fixes – or even big structural repairs – that must happen before the home is allowed to change hands. Sometimes, these fixes can be paid out of your net proceeds, meaning you don’t have to come up with that money before the sale closes. The challenge with simply indicating that no changes will be done may cause the buyer to walk away and if the buyer walks away, now you have knowledge of your property’s flaws which will need to be disclosed to the next buyer. So keep an open mind and remember, we have options.

Do you have questions about the buying or selling process? I would love to address them for you! Send an email, text, or call: karenwi@johnlscott.com or (206) 484-2777.