Viewing a Home that is Being Rented

According to Coldwell Banker Bain's Property Management, a home owner has the right to show a rental property to prospective buyers or tenants with 24 hours notice.  Also, the tenant has a right of quiet enjoyment.  These rights may be competing.  The tenants also have the right to reasonably say no to showing.

Lauren's Real Estate Perspectives: Snapshot of Seattle's Eastside Real Estate market

Lauren's Real Estate Perspectives: Snapshot of Seattle's Eastside Real Estate market: It's been a wild ride.  This year we continue to see a lack of inventory and an influx of buyers, which pushes our housing prices up.  T...

Snapshot of Seattle's Eastside Real Estate market

It's been a wild ride.  This year we continue to see a lack of inventory and an influx of buyers, which pushes our housing prices up.  That's great if you are a seller, but not so great if you are a buyer.  At a recent Coldwell Banker Bain Bellevue agent meeting, our Principal Managing Broker, Thadine Bak shared some statistics I thought were worth repeating.

For the month of May 2014 for the Eastside area including Bellevue, Kirkland, Redmond, Mercer Island, Medina, Newcastle, Sammamish, Woodinville....

71.14% of all properties sold (closed) in the month of May, either at or above original list price.
The average percentage over original list price was 4.94%.
For properties that sold below original list price, the percentage average was 3.05%.

Days on the market for properties that sold above original list price averaged 7.4 days.
Days on the market for properties that sold at original list price averaged 14.1 days.
Days on the market for properties that sold below original list price averaged 25.0 days.
The take-away?  Price too high and you will be on the market longer.
If you have not sold after a month in this competitive market, the market has spoken!
What to do?  Change the price, condition of the property or offer better terms.

What about inventory levels?  How much supply do we really have?  A balanced market is about 5 months supply.
Overall for May 2014 we had 1.3 months supply of homes.
Typically, our 10 month average for the month of May is 3.1 months supply.

What is the hottest selling price range for the Eastside?  $500K to $750K.

The bottom line is this:  our inventory is increasing which is allowing for more pending sales.  High demand and a historically low supply has driven up May's closed sales price by 13% from May 2014 over May 2013.

The bottom line:  Eastside sales are continuing to show us that we have one hot real estate market!

Paying Taxes in the State of Washington

In the state of Washington property taxes are  paid to the county twice a year.  The County Treasurer's office sends out a bill along with your assessment mid-February.  For those new to the state, you only get one bill, though you need to remember to pay it by the due dates, April 30 and October 31.  The first bill due April 30 covers taxes for January 1 to June 30 and the October 31 bill covers from July 1 through December 31.  While some states divide these payments into county taxes and local taxes, ie, school taxes, the state of Washington combines all taxes and divides the bill accordingly. 

What if you pay late?  If you pay your April 30 bill on May 1 or later, you will have a 1% interest payment penalty.  If you wait until June, you get hit with another 1% interest payment plus, they add on a 3% penalty fee.  Wait until July and you face another 1% interest penalty, and if you wait until December to pay that bill, you will continue to accrue a 1% penalty each month plus you will incur another penalty fee, but this time it will be 8%. 

Where do you send this payment?  Your February bill will give you the address for your county, but if you have your taxes escrowed by your lender, then your lender will pay them for you directly.  If your taxes increase, you may have an escrow shortage and your lender will be contacting you at the end of the year to make up the shortage.

If you want more information on your property taxes, call your County’s Treasurer’s office.

Why Coldwell Banker Bain?

When I moved to the Pacific Northwest over four years ago, I left behind in Michigan a successful real estate practice.  Faced with the daunting task of starting over, I began the process by investigating which brokerage to associate with.  I knew there were some companies that stood out more than others as influential in the area, so decided to investigate those first.

In real estate, a broker approaches a brokerage and asks for an interview.  There is no need to wait for an ad in the newspaper or an opening posted on the web as brokerages are always "hiring."  As a broker, you are an independent contractor looking for a place to hang your hat.  Realtors are not given a salary or benefits, rather they earn a commission, and each brokerage structures their commission arrangement differently.  Sharing commission is how brokerages stay in business and how they can offer support to their agents.  With the variations, it can seem like comparing apples to oranges at times, but commissions are only one piece of the puzzle.  There are brokerages that promise the best "splits" in order to encourage agents to work for them, but they may lack in other areas, such as education and support.

When I went to my first interview, I was impressed with many of the features of the brokerage, but I came away feeling something did not quite fit.  The second brokerage I approached was Coldwell Banker Bain.  I knew that Coldwell Banker Bain was a big name in the greater Seattle area and so arranged an interview with the principal managing broker in the Bellevue Way office.  I was immediately at ease.  I learned this is one of the few offices that still has a weekly meeting and tour scheduled.  Agents that participate in the weekly new-to-market listing tours and interact with one another receive a great advantage in that they keep current with new listings, learn a great deal from other agents including what they think of the properties/neighborhoods, and generally get a fast education on market trends.  On top of that, Coldwell Banker Bain has an incredible education program with weekly opportunities to take free classes on every conceivable topic from assessments to technology trends to feng shui to international buyers and more.  Due in large part to this, I was convinced Coldwell Banker Bain was my new home and started working there the very next day.

Since then, Coldwell Banker Bain has continued to grow and evolve into an even better place to work.  They have added a technology department that helps Realtors with any and all technology issues and a marketing director to help agents maximize their marketing efforts.  The tech department can remove a virus from my computer, load new software on my laptop, advise me on storage options, remotely fix a computer problem and teach me how to use all the tools in my arsenal.  The marketing director can advise me on how to best achieve my goals and follow up with me throughout the year with creative ideas and encouragement.

Besides these great offerings, Coldwell Banker has over 800 international offices in 51 different countries and over 2300 offices in the US alone with a global sales force of 82,000 brokers, while other leading offices in the region are far more limited.  Because of the influence of our region's major employers drawing from a wide-ranging international base, I wanted to be part of a brokerage which had such extensive exposure, not only in the US, but also internationally. 

During my time at Coldwell Banker Bain I have enjoyed a wonderful environment in which to grow my business.  I am proud to say that last year I earned membership into Coldwell banker's President's Circle which represents the top 5% of agents worldwide, and I anticipate similar recognition this year.  The same resources that make Coldwell Banker Bain a great place to work make it a great place for my clients to be represented as well.  Buyers and sellers have amazing resources and support from an incredible staff that work hard to deliver the finest service.  I cannot imagine working anywhere else and I hope you share the Coldwell Banker Bain experience by contacting me with your real estate needs.  For now, have a wonderful Christmas season and a happy and prosperous New Year!

Live Like You Plan To Move

It's happened a lot this year. A homeowner calls and announces they are thinking about a move, heard that it's a seller's market and wonder if I would give them a market analysis. I spring into action and head to their home with my camera and notebook in hand, wondering what I am going to find. Sometimes I find a home that is completely updated and beautifully decorated. That's such a pleasure, but not the norm. More often than not, I find homeowners who want to buy something that sparkles, but don't have their home in optimal condition. I might suggest the homeowners replace the stained carpet, but sometimes am told, "I don't know what color the next buyer will want....let them replace it." At that point I tell them that I happen to know what color the next guy wants as I have been shopping with buyers for years and hear the same comments over and over. They want a color their red couch and green bedspread and orange futon will go with...and they want the ability to change colors and not have to change carpet. They want beige. Make sense? They also want to come into a home and even if it is "used," they want to feel like it is "new." New carpet will do that. So will fresh paint. There is something about clean, bright walls and floors that make a potential buyer smile.

In my market, I work with a lot of two-income households. Buyers are working long hours and the last thing they want to do when they buy a new home is to start writing checks and overseeing contractors. OK, there are a few buyers out there who are willing to do that, but they are more the exception than the rule in my market. Also, if they are willing to do the work the seller did not do, buyers are going to expect to be compensated for that work in the form of a lower purchase price. You can't have it both ways. If you don't pay to have the work done while you are the homeowner, someone else will. Inevitably, you pay if you do the work yourself and enjoy it while you are there, or you pay by garnering a lower price when you sell, which brings me to my point: why not live now like you are planning to move?

So what would you do if you knew you were moving in 2 years? It wouldn't be a bad idea to call a Realtor and ask them for advice. I get that call now and then. I will talk to a homeowner who is thinking about getting their home market-ready and wondering where they should focus. I really enjoy those conversations and inevitably, am able to help sellers focus on prioritizing their repairs and improvements. Sometimes I talk them out of an expensive remodel and help them see the need to work on some deferred maintenance issues. Mossy roofs, overflowing gutters, a weedy yard and garden begging for attention, a deck with rotted boards, overflowing closets, clutter and other issues can often take more elbow grease than money and these improvements go a long way. If a homeowner has a budget to do more, we prioritize so they can tackle the items that give the best return on their investment.

But what if you aren't planning to move? My suggestion would be to live like you are. Most people move more often than they think. Sometimes you don't see these moves coming. Perhaps a new job or growing family or empty nest make you think life would be better in a different home. We often get so busy with day-to-day living that we do not look ahead to plan the next chapter of our lives. It sure would help if we did.

Perhaps because I  have moved so many times and know the getting-the-home-ready-to-sell drill, I always buy with an eye to sell and start the home improvements day one. Since I chose fixer-uppers, neutral paint and landscaping were often first, then maybe some electrical improvements, new toilets, appliances, etc.: every year a project. And then when the inevitable move came, I was ready. The bonus: not only did I garner a good profit when I sold, but I enjoyed a nice home while I lived there. Spreading the repairs out over the years was a budget-friendly way to do it, rather than waiting for the Realtor to tell me I had an overwhelming number of items to address before I could list the home for sale or that I would have to take a lower price if I wanted to list it "as is."

I recently met with one woman who was in charge of selling her mother's home. Her mother was getting older and could no longer care for the home where she raised five kids. While it was hard to leave the memories that home held for her, she knew it was time for assisted living and moved out. Her daughter spent seven months preparing the home, having an estate sale, and hiring contractors to work on every area of the home. She asked me to come see the progress and evaluate what else needed attention. We had several contractors come give their advice and together we strategically decided where to focus our efforts. When all was complete, we had the home staged and professional photos taken. 50 groups of buyers toured the open house and then we reviewed three offers, all well over list price. We were confident that the money was well-invested and that our seller got back much more than she spent. Yes, she spent seven months working on the home, but that just underscores the need to stay on top of repairs. It also validates that you pay now or later, but inevitably: you pay for your home repairs.

With the average American moving every five to seven years, it might be that your time to move is closer than you think. Why not look around your home with a discerning eye and make a list of improvements that need to be made, then start tackling that list one at a time. If you aren't sure where to start, give me a call. If and when the time comes to move, you will be that much further ahead. If you end up staying in the home for an extended period, you will be enjoying much nicer surroundings. Sound like a plan?

Buying a Home with a Tenant in It

When prices on Puget Sound homes began their decline  in 2008, many homeowners decided to wait for the market to rebound before selling.  They opted to rent their homes until the values increased.  Fast forward five years and we have a seller’s market.  Homeowners are finally able to list their home for sale.  Sometimes, those homes have tenants in them who are finishing up a lease.  What is a homebuyer to do?  Are there some things they should know before moving forward with a purchase? 

According to Dorothy Ennes, Manager of our Property Manager Division for Coldwell Banker Bain, homebuyers should know that if a home for sale has a tenant in it, the home sale is subject to the terms of the lease; ie, the owner can’t increase the rent or require the tenant to vacate or otherwise change the terms of the lease.  It is a good idea, prior to closing to ask the seller for a copy of the lease , the move in inspection report,  and a tenant ledger so you can know if the tenant has consistently paid their rent on time.  Also, by Washington state law, you cannot collect a deposit unless there is a move in inspection and you can’t charge a tenant for damages, even if the property was brand new when they moved in.  Without a written move in inspection, the owner can’t charge the tenant for damages.

In our hot seller's market, we are likely going to see more homes for sale that are occupied by a tenant. It is important for a buyer to do their due diligence when purchasing such a home.