Category Archives: Real Estate

Multiple Offer Strategies for Home Buyers

According to the National Association of REALTORS®, nationwide inventory has declined 3.5% over the last year, creating shortages in many areas. If your target market is in high demand, I can help you create strategies for buying a home that will keep your offer competitive:

  • Strong Purchase Price: Price persuades many sellers. We will evaluate market values in the area to help determine a fair price and counsel you on what you may need to offer to win.
  • Strong Earnest Money: We can discuss the pros and cons of including down payment with your earnest money deposit to reassure sellers that you are not likely to break the contract.
  • Lender Stamp of Approval: Don’t show up with just a pre-approval letter. We may consider asking the lender make a call to the listing agent, advocating your strong financial position.
  • Limit Contingencies: Whether financing, appraisal, inspection or sale-of-existing-home, there are ways to restructure contract contingencies to your situation. For example, sellers may allow buyers to do a “pre-inspection” before making an offer so the buyer feels comfortable waiving the inspection contingency.

Other strategies include negotiating property clean-up, offering to rent back to the seller or having a flexible closing date. If moving is on your calendar this year, please contact me and I’ll create a custom strategy that fits your unique needs. Call or text 206.484.2777or email me at: karenwi@johnlscott.com.

Preparing to Sell in a Fast Market

Our real estate market is currently chock-full of opportunities for sellers. Shorter days-on-market, high list to sales price ratios and growing sales prices may have you thinking about your next move. If this sounds like you, the time to begin preparing is now:

STEP 1 – CONTACT ME! Because each neighborhood, style of home, and price point is different, it is important to learn just how hot the demand currently is for your home. If the demand is currently at a very high level this may adjust how much needs to be done to prepare your home and get it on the market. In addition, I want to know where you are moving to which will allow us to strategize and determine what selling and buying looks like financially and timing-wise.

STEP 2 – CLEAN AND POLISH. We will determine together if there are any larger projects that need to be done to get your home on the market, but decluttering, giving your home a deep cleaning, and touching up the curb appeal is critical in ANY market!

STEP 3 – ESTABLISH LISTING WEEK STRATEGY. The week that your home goes on the market will be a very busy one. I will have photos done and once the home is on the market, there may be a number of showings and people through your home. Depending on the anticipated demand for access, you may want to simply leave town for a few days, stay at a friend’s home or even at a hotel. Consider it a mini-vacation!

STEP 4 – DETERMINE PRE-INSPECTION OPTIONS. If demand for your home is going to be strong, some buyers may waive the inspection contingency (the inspection contingency would allow them to back out of the contract if agreement cannot be met on what needs to be fixed ahead of time). Therefore, some buyers may ask to do a pre-inspection before they write an offer. This is done at the buyers’ expense. We can discuss the pros and cons of allowing pre-inspections before we put the home on the market.

STEP 5 – OPEN HOUSE. Depending on where your home is located, an open house allows for a number of potential buyers through at the same time and is a great tool to generate excitement about your home. If I anticipate that the open house will be very busy, I will enlist the help of another agent to assist in crowd control.

STEP 6 – OFFER REVIEW DATE. If I anticipate there will be multiple offers, we can discuss the pros and cons of having a date that lets buyers know when they need to submit an offer by.

Generally speaking, selling your home in a fast market can go much quicker than you might think, so preparing for your move ahead of time will make life much easier when it is time to sign on the line. If this has you thinking, let’s talk! Give me a call or text: 206-484-2777 or email: karenwi@johnlscott.com.

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.

 

 

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.

gh house

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.

 

March Market Report

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.