Facebook
X
Pinterest
Copy Link
What ‘s My Home Worth? The Downside to Home Valuation Tools
It is a seemingly simple question. However, discovering the worth of your home is more complicated than it might seem. Sites like Zillow, Redfin, Eppraisal, and others have built-in home valuation tools that make it seem easy, but how accurate are they? And if you get three different answers, which one do you believe? Online valuation tools have become a pivotal part of the home buying and selling process, but they’ve proven to be highly unreliable in certain instances. What these valuation tools have made clear is that real estate agents are as vital to the process of pricing a home as they ever were—and maybe even more so now.
Every online valuation tool has its limitations. Most are readily acknowledged by their providers, such as “Zestimate” from Zillow, which clearly states that it offers a median error rate of 4.5%. That may not sound like a lot, but keep in mind that 4.5% amounts to a difference of about $31,500 for a $700,000 home. For Redfin and Trulia, there are similar variances. When you dig deeper into these valuation tools, it’s no wonder that there are discrepancies. They rely on a range of different sources for information, some more reliable than others.
Redfin’s tool pulls information directly from multiple listing services (MLSs) across the country. Others negotiate limited data sharing deals with those same services, relying on public and homeowners’ records alike. This can lead to gaps in coverage. These tools can serve as helpful pieces of the puzzle when buying or selling a home, but the acknowledged error rate is a reminder of how dangerous a heavy reliance on them can be.
Nothing compares to the level of detail and knowledge a professional real estate agent offers when pricing a home. An algorithm can’t possibly know about the unique characteristics of neither a home nor its neighborhood. Curious about what improvements you can make to get top dollar or how buyer behaviors are shaping the market? They cannot provide an answer there, either. That can only be delivered by a trusted professional whose number one priority is getting you the best price in a time frame that meets your needs.
If you’re curious about your home’s value, Windermere offers a tool that provides a series of evaluations on your property and the surrounding market. And once you’re ready, we’re happy to connect you with a Windermere agent who can clarify this information and perform a Comparative Market Analysis to get an even more accurate estimate of what your home could fetch in today’s market.
Got to Run! 13 Seward Park Races in 2020
Have you ever wished for a list of the most popular Seward Park fun runs — either to join in or avoid the traffic on race day? Well look no further because we’ve got the rundown right here! Follow the links for more information.
1. Fitness for Vitality Resolution Series
A two-race series that starts in February and continues through March, including 10k and 5k running events. March 29
2. Treat Yourself 5K
Run or walk a 5K and reward yourself with free treats, knowing that proceeds will benefit Providence Home and Community Care. Saturday, April 25
3. Furry 5k
The Annual Furry 5K is a timed, dog-friendly 5k run and walk that helps support the Seattle Animal Shelter. Sunday, June 14
4. Rock and Roll Marathon
A Signature Seafair Event, this race takes runners on a scenic tour of Seattle with marathon and half marathon courses lined with local bands. Saturday, June 6-Sunday, June 7
5. Walk for Rice
Every year, nearly 1,000 people coming together to raise funds for the Food Bank and nutrition programs at Asian Counseling and Referral Service. Saturday, June 20
6. Quest Races Seattle Swimrun
Discovered by the Swedes in 2006, they called it SwimRun, because you swim and run, swim and run, swim and run. Utilizing beautiful Seward park in Seattle, participants will have 6 swim sections in beautiful Lake Washington, accompanied by 7 running sections in Seward park. The running will be a variety of gravel roads, paved trail, and single track. June 28
7. Seafair Triathlon
Voted the Pacific Northwest’s best triathlon and Seattle’s only Olympic distance course. Olympic Triathlon & Duathlon, Sprint Triathlon & Relay Courses, and Kid’s Triathlon. Sunday, July 19
8. STP (Seattle to Portland)
This 200+ mile bicycle ride is the largest multi-day bicycle event in the Northwest, with up to 10,000 participants riding from Seattle to Portland in one or two days. The route takes you through the scenic valleys, forests, and farmlands of western Washington and Oregon. Saturday, July 18-Sunday, July 19
9. NW Trail Run – Seward Sizzler
A 4.2-mile and 10k run hosted by Northwest Trail Runs. Tuesday, July 21
10. Obliteride
Fred Hutch’s annual three-day fundraiser dedicated to fighting cancer. Several different route options for cyclists of all levels, including some that come through South Seattle. Saturday, August 8
11. Seattle Summer Marathon
The Seattle Marathon began modestly in 1970 when a group of friends from the University of Washington decided to hold their own running event. Fewer than 38 runners started the first annual event, with most of them completing the full 26.2 miles. From these modest beginnings, the Seattle Marathon Family of Events has risen to become one of the largest and most influential mass-participation runs in the Pacific Northwest. Saturday, August 22
12. Run Scared
A scary 5k dash and 4k walk benefiting The Leukemia and Lymphoma Society. Saturday, October 31
13. NW Trail Runs’ Winter Series: Seward Solstice
Choose a 4.2-mile or 10k trail run at Seward Solstice, the fourth event in the Winter Trail Series. Saturday, December 19
Tips for Building ADUs & DADUs
Do you have an Accessory Dwelling Unit (ADU) or Detached Accessory Dwelling Unit (DADU), or are thinking about building one? Here are some useful tips..
First, if you plan to sell a house and market your property with an ADU or DADU, you would be wise to make sure it is permitted with the city and registered as a rental unit, even if it just being used as an Airbnb, and not a long- term rental.
If not, you run the risk of being reported and fined. I recently heard about a situation where a buyer reported a seller with an unpermitted unit to the City of Seattle, as the property was listed as having a rental unit. City inspectors made them take out the whole kitchen in their basement ADU. They may have also been fined.
If you can’t do it because it’s not to code, such as window egress height, ceiling height too low, or many other factors, you need to market it as a “potential” rental space.
How the advantages of a unit being legal work for a seller and buyer:
For the seller, proven rental income will add value, plus it means an appraiser can take that rental income into consideration when assessing the value of the house.
For the buyer, their lender can use the rent as income, but there are certain stipulations. The ideal being proof of a rental history for two years, a signed lease with a deposit from the current tenant and two years of tax returns showing it as an income property. A lender will then take 75% of the rental income and be able to potentially pre-approve a buyer for a higher loan amount.
A certain lender has also told me that if there is the same proof of income, even if the place is not legal, they can also take 75% into account, but some lenders may not do that!
There are way more units, both attached and detached, in the city that are not permitted or registered, and it is certainly a process, but my advice to anyone is do the research to see if you can conform to the regulations as it will most likely benefit you when you decide to sell.
If you are thinking of converting a space or building to a DADU, again make it legal. The good news is there are now loan programs that help you finance building an ADU, including conventional and FHA loans. So not just HELOC’s, which are short term. Why not finance and have your tenant pay the mortgage?
Plus, there are lots of companies now that specialize in converting spaces or building separate units; here a few:
- MyKabin is Seattle-based and provides one stop shopping, covering all the stages of construction.
- Mighty House Construction
- Live-work-play
- Nest (a southeast Seattle company)
Building a DADU is not inexpensive, most likely between $250,000-$350,000, minimum, so obviously it is a big decision to make that investment; even converting a basement can cost between $100,000-$150,000. So you have to weigh the pro and cons for sure.
I hope this information helps in your decision making process. Thanks for reading!
Incorporating Pantone’s Color of the Year into Your Home
Classic Blue has officially been anointed Pantone’s 2020 “Color of the Year”. Pantone says it picked this color because of its ability to instill calm, confidence, and connection as we cross the threshold into a new decade. A dependable color, Classic Blue is timeless, and enduring, making it a great addition to just about any room in your home.
Here are some ways to add this stunning shade of blue to your home:
Add a splash of color to any room with Classic Blue furniture, such as these dining room chairs, which express a sense of tradition and elegance, as well as unexpected boldness.
Tile Work
Geometric patterns are all the rage this year, so why not liven up your kitchen backsplash with tiles that incorporate the color of the year? Here’s an example that achieves this through bold, colorful design that doubles as a piece of art.
Cabinets
If geometric tile isn’t your thing, the are other ways to bring your kitchen to life with this stunning shade of blue. If you’re not in a position to purchase all new cabinets, simply paint your current cabinets for a more affordable update.
Walls
Whether it’s built-ins, panels, or an accent wall, Classic Blue can make your furniture and décor pop. Consider this color when you paint your living room or bedroom as a way to encourage calm and confidence in your favorite spaces.
Windermere Foundation Reaches $40 Million Donation Milestone
As we head into a new decade, the Windermere Foundation reached a milestone in 2019 by raising nearly $3 million, bringing the grand total to over $40 million in donations raised since 1989.
Twenty-five percent of the funds raised in 2019 were donated by agents from their commissions. The rest was raised through office fundraisers, additional giving by owners, agents, and staff, and public donations. These dollars stay local, as each Windermere Real Estate office has their own Foundation funds, supporting low-income and homeless families in the communities where offices do business.
One office that celebrated a milestone of its own this past year is the Windermere office in Coeur d’Alene, Idaho. The Coeur d’Alene office became a part of the Windermere network in 1994. In 1996, the office hosted its first annual “Boots and Socks for Kids” event by purchasing and donating 47 pairs of boots and socks to Coeur d’Alene Children Village and St. Vincent DePaul. Since then, the office has donated a total of 12,546 pairs of boots and socks to children in the 40 area schools and local agencies that provide services to low-income or homeless families.
In 2019, Windermere Coeur d’Alene reached a milestone of $1 million total donated to support local non-profits. Organizations that have received donations include CAP Food Bank, Family Promise, CASA, Shared Harvest, St. Vincent DePaul North Idaho, Union Gospel Mission, and United Way of North Idaho, to name just a few. Safe Passage and The Children’s Village of Coeur d’Alene are two non-profits that receive support from the office annually.
Last year also marked the fourth year of Windermere’s #TackleHomelessness campaign with the Seattle Seahawks, in which Windermere committed to donating $100 for every Seahawks home game defensive tackle.
This year Windermere partnered with Mary’s Place, a non-profit that provides safe, inclusive shelter and services to support women, children, and families on their journey out of homelessness. Thanks to the Seahawks, we raised $30,000 this season for Mary’s Place, bringing our grand total to $128,200 raised through our #TackleHomelessness campaign.
We are proud of the fundraising efforts made by the Windermere team and are grateful to all who have supported the Windermere Foundation over the years. Because of that support and generosity, we have been able to make a difference in the lives of many families in our local communities over the past 30 years. And we look forward to supporting even more families in 2020.
To learn more about the Windermere Foundation, visit https://windermerefoundation.com/.
SELLER SUCCESS STORY: Minor renovations can bring in big bucks!
Albert and his wife Tina had talked to me over two years ago in the early spring about selling their 1920’s house as they were thinking about moving to Olympia where they had family, and we discussed things that they could do to make their house more marketable.
The house had been totally remodeled in the inside and was lovely with some high-quality finishes, including gorgeous Tigerwood hardwood floors throughout.
However, the exterior was awful with two tones of beige stucco and piecemeal parts of siding, where the stucco had been removed.
Moreover, a lovely feature of the house was a covered wrap-around porch, but it had never been painted, and the walls and floor of it were plywood. Also, lots of the new exterior windows had never been properly framed in.
It really looked rough, and I knew it would deter a lot of buyers from even entering the property and would certainly de-value it by quite a bit.
I suggested getting the unfinished porch walls sided in T1-11 siding, the windows framed in, some porch posts realigned, plus lots of other finishing touches and the whole house painted in one color with a contrasting trim. This was a project they could work on over the summer, so they would be ready when the time came to sell.
Fast forward to the fall of 2019 and Albert and Tina, who had been looking in Olympia, but not seriously, came upon a house that they fell in love with, bought and moved into, unbeknownst to me.
So when we met again in October, like so many folks with young kids, they had not done anything we talked about doing!
Now we were heading into the bad weather and a lot had to happen quickly as I really did not want them to sell the house AS IS as I knew they would be leaving a lot of money on the table.
Luckily, the stars aligned as Albert and I both knew a really great local contractor who was in between jobs and we were able to get him to help do a lot of the prep work, including fixing the porch columns, replacing rotten plywood, framing in the windows and numerous other jobs.
We also lucked out with a siding contractor and painter. We were racing against the weather and had to stall a couple of times due to heavy rains. I was really cracking the whip, as I did not want us to list the house during the holidays since I knew we would lose buyers.
There were all sorts of other little finishing bits and pieces that needed to be done and my local handyman and I split up some tasks to make it all happen. It was amazing how everything came together, and it was certainly a team effort. I was able I was able to get the house listed in early November.
The outcome was fantastic! We got three offers during an otherwise slow month, and all over list price, with the best offer waiving all contingencies.
The moral of the story? Investing even a small amount of money to make the house look as good on the outside as it does on the inside really paid off.
Fortunately, Albert allowed me to make most of the decisions as he was working full time, plus he lived in Olympia. He was wonderful to work with and I really appreciated his trust in me.
“My wife and I have had great experiences with previous agents but we’re in forever awe of Serena Heslop!” he said. “Last fall, we had to move away from Seattle suddenly and unexpectedly and found ourselves needing to sell our house quickly.
We (and our house) were not at all prepared for the sudden move and winter approaching. After talking to a number of agents, we had anxiety about what to do, until we met with Serena. Not only is she a friendly/easy person but it was easy to see her expertise with the current market, our neighborhood and assessment of our property (strengths, weaknesses).
Without hesitation, she defined a practical plan that accomplished a very tall order: Sell a not-so-ready house quickly, before the full rainy winter, and with remote owners who could not be hands-on.
Serena jumped in as our general contractor (as well as rolling up her own sleeves on occasion) to help orchestrate multiple contractors and services who converged to ready our house within weeks and budget.
We’ve never seen anything like it.
All the changes were just-right strategically and our house transformed before our eyes (Note: This isn’t our first house or sale so I can’t stress the true value-add magic that happened and without over the top expenses).
In a tough market with extremely tough constraints, Serena single-handedly brought our house up to par, drove incredible traffic though her smart use of marketing (approximately 10,000 views), and sold our house with multiple offers above-ask after just one week on the market.
We felt like we were in Million Dollar Listing! Please do yourself a favor and call her!”
Western Washington Real Estate Market Update
This analysis of the Western Washington real estate market is provided by Windermere Real Estate Chief Economist, Matthew Gardner. I hope this information helps you to make well-informed real estate decisions. For further information about the housing market in your area, please don’t hesitate to contact me.
ECONOMIC OVERVIEW
Employment in Washington State continues to soften; it is currently at an annual growth rate of 1.7%. I believe that is a temporary slowdown and we will see the pace of employment growth improve as we move further into the new year. It’s clear that businesses are continuing to feel the effects of the trade war with China and this is impacting hiring practices. This is, of course, in addition to the issues that Boeing currently faces regarding the 737 MAX.
In the fourth quarter of 2019 the state unemployment rate was 4.4%, marginally lower than the 4.5% level of a year ago. My most recent economic forecast suggests that statewide job growth in 2020 will rise 2.2%, with a total of 76,300 new jobs created.
HOME SALES
- There were 18,322 home sales registered during the final quarter of 2019, representing an impressive increase of 4.7% from the same period in 2018.
- Readers may remember that listing activity spiked in the summer of 2018 but could not be sustained, with the average number of listings continuing to fall. Year-over-year, the number of homes for sale in Western Washington dropped 31.7%.
- Compared to the fourth quarter of 2018, sales rose in nine counties and dropped in six. The greatest growth was in Whatcom County. San Juan County had significant declines, but this is a very small market which makes it prone to extreme swings.
- Pending home sales — a barometer for future closings — dropped 31% between the third and fourth quarters of 2019, suggesting that we may well see a dip in the number of closed sales in the first quarter of 2020.
HOME PRICES
- Home price growth in Western Washington spiked during fourth quarter, with average prices 8.3% higher than a year ago. The average sale price in Western Washington was $526,564, 0.7% higher than in the third quarter of 2019.
- It’s worth noting that above-average price growth is happening in markets some distance from the primary job centers. I strongly feel this is due to affordability issues, which are forcing buyers farther out.
- Compared to the same period a year ago, price growth was strongest in San Juan County, where home prices were up 41.7%. Six additional counties also saw double-digit price increases.
- Home prices were higher in every county contained in this report. I expect this trend to continue in 2020, but we may see a softening in the pace of growth in some of the more expensive urban areas.
DAYS ON MARKET
- The average number of days it took to sell a home dropped four days compared to the third quarter of 2019.
- For the second quarter in a row, Thurston County was the tightest market in Western Washington, with homes taking an average of 29 days to sell. In nine counties, the length of time it took to sell a home dropped compared to the same period a year ago. Market time rose in four counties and two were unchanged.
- Across the entire region, it took an average of 47 days to sell a home in the fourth quarter. This was up nine days over the third quarter of this year.
- Market time remains below the long-term average across the region, a trend that will likely continue until we see more inventory come to market — possibly as we move through the spring.
This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors.
The housing market ended the year on a high note, with transactions and prices picking up steam. I believe the uncertainty of 2018 (when we saw significant inventory enter the market) has passed and home buyers are back in the market. Unfortunately, buyers’ desire for more inventory is not being met and I do not see any significant increase in listing activity on the horizon. As such, I have moved the needle more in favor of home sellers.
ABOUT MATTHEW GARDNER
As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 30 years of professional experience both in the U.S. and U.K.
In addition to his day-to-day responsibilities, Matthew sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics.
Is it time to downsize?
Choosing less space often has to do with a desire to live a life that’s simpler. Whether you’re retiring, want an eco-friendly, low-maintenance lifestyle or your children have moved away, downsizing might be the best option for you. Here are the advantages and disadvantages to consider before making the move and questions to begin asking yourself now.
Advantages
- Increased cash flow.
- Spend less on your mortgage payment and you are likely to have more money leftover for other needs or desires.
- More time.
- Cut down on time spent on household chores such as cleaning and vacuuming which will leave you with more hours in the day to do something more enjoyable.
- Lower utility bills.
- Costs less to heat and air condition a small home.
- Less square footage decreases the amount of energy expended.
- Reducing energy is better for the environment and it helps keep your home green.
- Reduced consumption.
- You would likely buy less since you won’t necessarily have the room for it.
- Minimized stress.
- Homeowners who have successfully downsized often feel happier because they are no longer overwhelmed by the demands of a larger home.
- Less responsibility, less housework to do, increased cash flow and flexibility equals reduced stress.
Disadvantages
- Fewer belongings.
- Moving into a smaller space would mean you would need to give away or donate furniture, books, kitchen supplies, etc.
- No room for guests.
- Hosting holiday dinners might be out of the question for a smaller home.
- Space restrictions.
- Less space means you could feel cramped.
- Lifestyle changes.
- For long-term homeowners, downsizing means changing a lifestyle.
What to consider before downsizing
These questions are important to ask yourself because for some people, downsizing may not be the best option for them.
- Does size matter to me?
- Think about how much your identity is wrapped in your house.
- Is it important for you to have a guest room or a second bathroom?
- Will I miss some important things about a more spacious home?
- Will moving into a smaller home feel like a step backward?
- How will other life events affect my living in a smaller home?
- Consider possible scenarios you may not expect such as adult children moving back home or if you plan to add a child.
The Cost to You
- How much will it cost to replace the furniture?
- When you move into a smaller home this means you might have to downsize your furniture to make room.
- How much will it cost to get rid of the stuff I don’t need or won’t fit?
- It’s important to have a plan for how you’re going to sell or give away the things you don’t need.
- Consider things like family heirlooms. What are you going to do with all your antiques or treasures that your smaller home may not be able to accommodate?
- How much will I get when I sell my current home, and will it help cover the cost of buying my new home?
If you know downsizing is the right option for you, you’re probably asking yourself, “Should I sell first and then buy or buy first and then sell?”. When you’re ready to discuss your options, talk to an experienced Real Estate Agent.
