Today is week one of my five week series called “Walk in The Park Wednesday” where I’m highlighting my favorite parks in Normandy Park. Let’s take a walk! #WalkInTheParkWednesday
Tag Archives: Karen Williams Real Estate Broker
Heating Home Options
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
Home Seller Q & A
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!
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.
2017 REAL ESTATE PREDICTIONS
Each year I take time to review what has happened during the year and to look forward to predict what is in store for real estate. Below are my predictions for the 2017 real estate market, based on data that was available at the time this was written:
Median Sold Prices – Home prices will continue to increase nationally by single digit numbers, about 5%. However, urban metro areas with high employment or that are in high demand by Millennials may still see increases at 10% or above. According to the National Association of REALTORS®, October’s national median price for existing single family homes was $232,200, which represented a 6.0% increase over October of 2015 (which was the 56th consecutive month of year over year gains). National inventory shortages coupled with high demand will continue in 2017.
Housing Inventory – Although there are improvements in this category, it will take more than just a year for the situation to turn around. Our inventory shortage was caused by a shortage of housing starts that began during the recession. We will continue to see inventory challenges until new construction picks up even further. I predict that more buyers will be entering the market for a home as our economy is strong with low unemployment. According to the Bureau of Labor Statistics, the national unemployment rate stands at 4.6% for November, 2016, which is the lowest it has been since August of 2007. High demand and low new construction means a continued inventory crunch.
Housing Starts – Housing starts (the measure of homes that began construction) jumped from 900,000 in 2015 to 1.3 million in 2016. Although this is a welcome increase, it is still not enough to quench the demand. Our country needs about 1.5 million new starts per year to maintain inventory, but since 2009, we have been short a cumulative 5 million units. This is one of the primary causes of our inventory shortage and what is driving prices up – demand outweighs supply. In 2017, I predict that builders will finally surpass the 1.5 million start target and our inventory shortage will begin to wane by mid-2018.
Second Home Markets – Investment and vacation homes markets will continue to be strong in 2017. The passing of wealth from the Silent Generation (1925-1945) to the Baby Boomer Generation (1946-1964) is a strong driver of vacation home purchases. Investment properties are a hot commodity, especially in urban areas where rents are skyrocketing due to a shortage of housing.
Interest rates – The improving economy and almost full national employment is a sure sign that interest rates will continue to increase in 2017. The new rates will balance job growth and higher inflation rates. The Federal Reserve increased interest rates a quarter of a percentage point at its December meeting. The federal fund rate has a significant effect on mortgage rates. I expect the 30 year fixed rate mortgage rate will reach 4.75% by the end of 2017.
I am excited for what 2017 has in store! For additional information and predictions on our local market or your specific neighborhood, please call or text: 206-484-2777 or send an email to karenwi@johnlscott.com.
2017 Housing Forecast
Real Estate In The News…
HERE’S WHAT WE’RE TALKING ABOUT:
-Will our historically low interest rates finally start to move upward? The recent US jobs report, paired with European Central Banking news has some experts thinking the Fed will finally start to increase interest rates in December.
Housing inventory is slowly increasing throughout King County providing some relief to buyers. Local real estate agents have mixed feelings about the news. Some see it as a normal seasonal slow down others as a slight shifting in the market. Either way, we’re still one of the hottest markets in the country.
Residential rents are rising faster in Seattle than anywhere in the U.S. according to Zillow. Neighboring cities including Shoreline, Burien, Renton and Vashon have also seen 10.5%-14% increases in rental prices since August of 2015.
Appraisals – A Critical Part of the Transaction
When a buyer takes out a mortgage or when a homeowner refinances their home, the lending bank or entity conducts 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, hence a low appraisal price.
If the appraisal comes in low it can be challenged if comparable data indicates the agreed-upon price can be substantiated. If that doesn’t work, the price will need to be renegotiated and if any of the down payment is diverted into making up the difference between appraisal price and final sales price, the monthly payment may change due to private mortgage insurance being due if the loan to value ratio exceeds 80%.
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). 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.
Worried About Your House Not Selling?
If you are considering selling your home, you may be wondering how your home will really do in relation to the market. Although our market as a whole has been more favorable to sellers in the last few years, demand for an individual property will vary depending on supply of each particular type of home – price point, amenities, challenges, etc.
For example, if a home is in a higher price point, doesn’t have a garage, has a dated kitchen, is on a steep hill, is a far drive into town, etc., the listing may be affected by lesser demand because there may be fewer buyers who can buy that type of property. Everything about a property that causes the potential buyer pool to shrink must be taken into consideration when determining how to price and market a property. Likewise, homes that are expected to have large demand due to popular floorplans and updates have a wider buyer pool and should also be priced and marketed accordingly.
When you are ready to sell, I will review your home from top to bottom, looking for features that provide value for a potential homebuyer. A finished basement? That increases the value. Spare space in the garage? That will also increase the value.
I will also look for things that will shrink the buyer pool which will cause a home’s value to decrease. Deferred maintenance, older systems such as an older water heater or furnace, awkward floorplans, a lot of stairs, older roof or even a strange color palette may be more than some buyers want to deal with and therefore, the market price will need to reflect the lesser demand unless these are things that are going to be corrected before a home goes on the market.
It is also important to look at current buyer trends to determine features that might increase or decrease demand for the home. For example, large lawns are starting to go out of favor with certain buyers who want less maintenance and to reduce water consumption, but just a few years ago, they were all the rage. Demand for large home offices and big entertainment centers is also waning with our changes in technology. Have an updated master suite with a steam shower and updated shower heads or smart home technology? These are currently in high demand and the market price should reflect that positively.
Additionally, the new generation of homebuyers (Millennials) have different needs in their homes than previous generations so we can continue to see buyer demand shift in the coming years.
Want to know more about market demand for your particular type and style of home? Just give me a call at (206)484-2777 or send an email to karenwi@johnlscott.com. I’ll show you how I determine the market value of your home based on supply and demand.
Power of Attorney – Which Type Do I Need?
Three Most Common Types of Power of Attorney
- 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.
- 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.
- 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.