Tag Archives: John L Scott Real Estate

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.

Getting a Jump On Spring By Listing Now? Here’s a few tips!

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

If you are considering making a move this year and plan on listing in the next few weeks, I have some great tips to make your potential buyers feel more at home. The challenges of winter are many:

·       The sun is lower in the sky and therefore light comes in your home at sometimes-unflattering angles.

·       Deposits from snow, ice, and rain can make the entrance dirty and uninviting.

·       Plants that are dead or dormant can be a challenge for curb appeal.

·       Heating and air intake grates may have a constant flow of air and may be dirty.

·       Homes that have great outdoor spaces may not show as well during cold, dark, or rainy days.

These are just a few issues that can make selling during the winter a challenge. However, there is a lot that you can do to counteract these:

·       Make sure all your windows and outdoor glass is squeaky clean and streak-free. This way, when the sun is low in the sky, light streams through those flawless windows, illuminating the space.

·       Hose down or sweep walkways and decks. Keep them free of excess sand, gravel, and moss.

·       Plant boxwoods or other evergreens to provide curb appeal and mask perennials that won’t look fresh again until spring. Trim back perennials and pull out dead annuals to make your landscaping look neat and trim. Also rake the beds and get rid of all dead leaves.

·       Keep all air grates clean by vacuuming every few weeks. Change your furnace filter. If your home is getting that burned-dust smell, have your ducts professionally cleaned.

·       Maximizing outdoor spaces, even when it is cold and rainy, is a great way for prospective buyers to be excited about the seasons to come and your home’s outdoor living potential. Make sure pots are brimming with evergreens, light outdoor lanterns and landscape lighting, and get some blooming plants in the ground (crocuses, heathers, hellebores, and primroses are good go-to winter bloomers). These steps will make your outdoors showtime-ready.

·       You can also accentuate the warm and cozy aspects of your home by turning on the fireplace, draping an accent throw over the arm of a couch or the back of a chair, drape a throw at the bottom of the bed, and put plush towels in the bathrooms.

·       Make sure the lights are on both inside and outside your home for every showing. Pull back the curtains and open the blinds. Yes, you may be spending more on heating your home with windows uncovered, but you don’t want your home feeling dark and drab.

There are opportunities to be had selling now. Interest rates have started to creep up, so buyers who were disappointed and decided to take some time and regroup may be back in droves, trying to buy before the interest rates increase even more. Questions about your selling strategy? Give me a call at 206-484-2777 and let’s chat. 

Cold Weather Ahead – Time To Protect Your Pipes

Real Estate, , , ,

With cold temperatures – and even some snow! – in the forecast, it’s time to make sure you and your home are prepared to weather whatever Mother Nature sends our way.  Seattle Public Utilities Offers these Tips

Prep Your Pipes

Freezing temperatures can burst water pipes around your home, potentially causing serious property damage and wasting large amounts of water. Follow these tips to prepare your pipes for the cold;

  • Insulate outdoor pipes and faucets to keep them from freezing.
  • Disconnect garden hoses.
  •  When the temperature hits freezing, open cabinet doors to allow heat to get to un-insulated pipes under sinks and near exterior walls.
  • Insulate pipes in your home’s crawl space, attic, or basement.

 

For more information on preparing for winter weather, visit Seattle Public Utilities at  www.takewinterbystorm.org. 

Power of Attorney – Which Type Do I Need?

Real Estate,

Three Most Common Types of Power of Attorney

  1. Special Power of Attorney For A Sale:  This is used for the sale of a specific piece of property.  It must include the legal description of that property, have all signatures notarized and be recorded.  This type of Power of Attorney typically has a six month expiration date.
  2. Special Power of Attorney for a Purchase: This is used for the purchase of a specific piece of property. With lender approval, it can also be used to financially encumber the property with a security instrument. It must include the legal description of that property, have all signatures notarized and be recorded. It is only valid for that particular designated property and cannot be used to sign a purchase and sale for a different property. This type of Power of Attorney typically has a six month expiration date.
  3. General Durable Power of Attorney:  This is typically a more broad-based document created by an individual giving power of attorney to a representative for a broad array of activities (medical, financial, etc.).  It needs to specifically include the right to convey (sell) or purchase property in order to be valid for title insurance purposes. A General Durable Power of Attorney needs to be recorded.

Creating a Power of Attorney:

Documents can be prepared by an attorney or by using approved generic forms. Below is a link to the Washington State Bar Association website, which contains recordable documents.

http://www.wsba.org/Licensing-and-Lawyer-Conduct/Limited-Licenses/Limited-Practice-Officers/LPO-Forms

 

Appraisals – A Critical Part of the Transaction

Real Estate, , , , ,

When a buyer takes out a mortgage, or when a homeowner refinances their home, the lending bank or entity will conduct an appraisal to verify the market value of the home. This protects the bank’s interest in the home and helps verify the percentage of equity the buyer or homeowner has or will have in the property.

It is important to know that when a buyer and seller agree on a price for a home, the appraisal may not reflect that same price. Especially in areas where prices have appreciated rapidly, it may be difficult for the appraiser to find comparable properties that have changed hands in the last three months which can help guide pricing on the current property. For example, say there were two comparable properties that sold four and six months ago in the area and in the last year, sale prices have gone up 15%. That means those two comparable properties may have sold for 5%-7.5% less than the property that is being appraised and the appraisal could be lower than the buyer and seller expect.

This is especially problematic in a transaction for two reasons:

  1. The appraisal represents the maximum the lender will lend on the property. So if an appraisal comes in at $300,000, the buyer and seller have already agreed on a price of $340,000, and the buyer is taking out a loan with 10% down, obviously the math no longer works. Depending on the agreement between the lender and the buyer, the lender may not be willing to loan more than 90% which would mean the agreed-upon price would need to be lowered or the buyer may need to put more money down.
  2. In the event the buyer is putting 20% down to avoid private mortgage insurance (PMI) (typically required when buyers or homeowners have less than 20% equity in the property) and the appraisal comes in low, then there is the potential problem of the buyer no longer having that 20% because some of the reserves may be used to make up the difference in the appraisal as in the following example:
  • Agreed upon-price: $350,000
  • Buyer is putting 20% down: $70,000
  • Appraisal: $300,000
  • Buyers and sellers renegotiate on price: $325,000
  • Seller comes down by $25,000, buyer uses $25,000 of their $70,000 to make up the difference leaving them with $45,000 down payment which is only 15% of the loan, thus causing PMI to be assessed each month.

The bank may determine that the buyers have too many other monthly expenses to afford the PMI and denies the loan.

According to the National Association of REALTORS, in April of 2016, 12% of terminated sales failed due to appraisal issues which also led to delayed closings (28% of closings that were delayed were delayed due to appraisal problems). This is good information for you to know if you are a buyer or a seller, but rest assured I have tools for working with appraisals should the need arise. Please give me a call, text or email: 206-484-2777 or karenwi@johnlscott.com.