Selling Your House • July 10, 2023

3 (Easy to Fix!) Reasons Your Home May Not Be Selling

by Drew Jones

When it comes to selling your house, you want three things: to sell it for the most money you can, to do it in a certain amount of time, and to do all of that with the fewest hassles. And, while the current housing market is generally favorable to sellers due to today’s limited housing supply, there are still factors that can cause delays or even prevent a house from selling.

If you’re having trouble getting your house to sell in today’s sellers’ market, here are a few things to think about.

Limited Access – If You Can’t Show It, You Can’t Sell It.

One of the biggest mistakes you can make as a seller is limiting the days and times when buyers can view your home. In any market, if you want to maximize the sale of your house, you can’t limit potential buyers’ ability to view it. Remember, minimal access equals minimal exposure.

In some cases, some of the most motivated buyers may come from outside of your local area. Because they’re traveling, they might not have the luxury to adjust their schedules when faced with limited options to tour your house, so make it available as much as possible.

Priced Too High – Price It To Sell, Not To Sit.

Pricing is a critical factor that can significantly impact your home sale. While it’s tempting to push the price higher to try to maximize your profit, overpricing can deter potential buyers and lead to your home sitting on the market longer.

Jeff Tucker, Senior Economist at Zillow, notes:

“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”

Not to mention, buyers today have access to a number of tools and resources to view available homes in your area. If your house is priced unreasonably high compared to similar homes, it may drive potential buyers away. Listen to the feedback your agent is getting at open houses and showings. If the feedback is consistent, it may be time to re-evaluate and potentially lower the price.

Not Freshened Up Before Listing – If It Looks Good, It’ll Make a Good Impression.

When selling your house, the old saying “you never get a second chance to make a first impression” matters. Putting in the work on the exterior of your home is just as important as what you stage inside. Freshen up your landscaping to improve your home’s curb appeal so you can make an impact upfront. As an article from Investopedia says:

“Curb-appeal projects make the property look good as soon as prospective buyers arrive. While these projects may not add a considerable amount of monetary value, they will help your home sell faster—and you can do a lot of the work yourself to save money and time.”

But don’t let that stop at the front door. By removing personal items and reducing clutter inside, you give buyers more freedom to picture themselves in the home. Additionally, a new coat of paint or cleaning the floors can go a long way to freshening up a room.

For all of these things, lean on your real estate agent for expert advice based on your unique situation and feedback you get from buyers throughout the process.

Bottom Line

If your house isn’t getting the attention you feel it deserves and isn’t selling in the timeframe you wanted, it’s time to ask your trusted real estate agent for advice on what you may need to revisit or change in your approach. To get those expert insights, let’s connect.

Home Financing • January 31, 2023

4 Important Home Financing Questions in Today’s Market

by Drew Jones

The mortgage process can be complex, and higher interest rates have raised many questions.

To give you the best information, I asked economics expert and mortgage consultant, Adam Boss, from Penrith Home Loans about interest rates and opportunities in today’s market.

Before I jump into my Q & A with Adam, I’ll cover just a couple basics:

A mortgage is a loan that helps you finance the purchase of a home. When you take out a mortgage, you agree to repay the loan, plus interest, over a set period of time, usually 15-30 years.

Interest Rates play a crucial role in the cost of your mortgage. The higher the interest rate, the more you’ll pay in interest charges. Higher rates can make it much more challenging to afford a home, especially for first-time buyers.

So, if you’re in the market to buy, knowing all your options is key.

Adam Boss is here to help navigate some of the options. He’s our local economic whiz with a boatload of experience in home financing. For the past 20 years, Adam has collaborated with clients like you and me on all things mortgage-related. So, let’s get right into it:

Question: Can I buy down my mortgage rate with points?

Adam: A borrower can often secure a lower interest rate by paying a fee.

This fee is based on a percentage of the loan amount (points). This fee can be paid by the buyer or paid through a credit from the seller (often in exchange for a higher purchase price).

This strategy can lower your monthly payment and increase your buying power.

Q: Would an ARM (Adjustable Rate Mortgage) be a good fit for me?

Adam: An ARM may be a good fit for some buyers. In general, ARMs offer a lower rate than a traditional 30-year fixed mortgage.

This can be for the first 3, 5, or 10 years before the rate will adjust. This savings may be a good fit for some clients, but it is important to understand the risks once the initial period has passed.

The rate could adjust up or down depending on the market environment at that time.

Q: When can I lock in my interest rate, and how long will the lock last?

Adam: Most of the time you would lock in your interest rate once you have an agreement to purchase a home. The lock should extend to the closing date or beyond. The most common lock period is for 30 days.

You might also be able to lock in your rate during the preapproval phase. If your closing is delayed, you can usually pay a fee to secure more time.

Q: What’s the difference between a prime interest rate and my interest rate?

Adam: A “Prime Rate” is established banks to lend money to their customers for things like credit cards, equity lines, and other consumer loans. The prime rate is established by the rate that banks borrow from the Federal Reserve.

The bank will then lend out money with a margin added to the Federal Funds rate to make a profit. The current policy of the Federal Reserve is to raise the Fed Funds rate to fight inflation.

Mortgage rates, however, are set for the most part by the bond market. Since homeowners tend to stay in their homes for longer periods of time, the 10-year Treasury (or 10-year Bond ) sets the market for mortgage rates. This is an important difference to understand if you are considering buying a home.

Thanks for all the info, Adam!

If you’re interested in working with Adam, he’s a great guy and super knowledgeable. Click here for Adam’s contact info.

And at any rate, I’d love to hear from you. Please call or email me anytime for real estate advice or questions.

Email me at drew@windermere.com or call me at 206-619-2739.

Stay informed and up-to-date with my weekly newsletter, Drew’s News. Email me at drew@windermere.com to subscribe!

Market Update • January 13, 2023

5 Things To Know About Seattle Real Estate Today

by Drew Jones

Hey there! We’re fully into 2023 and it’s exciting to see what the Seattle real estate market has in store for us. I’m sure you’re as curious as I am about what this new year will bring.

I’m getting tons of questions about things like rising interest rates, the (soul-crushingly expensive) affordability of Seattle homes, and opportunities in the market.

While we can’t be sure how things will unfold, I’d love to give you a quick snapshot of the current market and what experts predict for 2023.

Whether you’re just keeping an eye on things or ready to jump into buying or selling, here are 5 important things to know about today’s real estate market.

1. Interest Rates are Expected to Drop

High-interest rates are stretching Seattle’s affordability to the max. Monthly mortgage payments have skyrocketed because of the rising rates, but economists predict interest rates will start to drop (fingers crossed) during the course of 2023.

Chief Windermere Economist Matthew Gardner says, “I expect the Fed to start pulling back from their aggressive policy stance, and this will allow rates to begin slowly stabilizing.”

2. Real Estate in Seattle is Cooling Down…

Lately, we’ve seen the Seattle real estate market cool down a bit, which can be attributed to factors like tech layoffs (creating feelings of economic and job uncertainty) and high-interest rates. So, some people are choosing to hold off on buying or selling for now.

As we head deeper into 2023 and move closer to spring, not only can our sump pumps look forward to a breather, but experts forecast a pick-up in real estate activity too. While inventory is still low, we’re starting to see more homes come on the market. This uptick in inventory is likely to continue into the new year.

3. Seattle Real Estate Finds Balance in 2023

We’re headed into a more balanced real estate market in 2023. Matthew Gardner says, “while a buyer’s market in 2023 is unlikely, I do expect a return to a far more balanced one.”

So, if you’re in the market to buy or sell, you’ll most likely experience a slower, friendlier, and more reciprocal transaction. Buyers may feel less pressure to give things up like inspection and financing contingencies to win offers. On the other hand, sellers may still find that the high home prices and strong demand in Seattle work in their favor.

4. The Seattle Trend is To Be Different (Of Course!)

Real estate trends in Seattle and the surrounding areas vary, dramatically in some cases, from city to city. For example, Issaquah’s median sale price jumped 18.8% from October 2021 to October 2022, whereas Kirkland’s median sale price decreased 4.5% over the same period of time.

Seattle and the Greater Seattle areas have an interesting mix of statistics, and it’s helpful to be aware of the different trends when buying or selling this year. If you’re interested, I found this article from Forbes super helpful.

5. When Will Seattle’s House Prices Go Down?

When it comes to house prices, experts predict that they will decrease somewhat in 2023, but not enough to make housing significantly more affordable due to high mortgage rates.

As always, it’s worth exploring financing options and opportunities if you’re planning to buy or sell in 2023.

And that’s where I come in! I want to help you find the best opportunities and choices tailored to your specific real estate needs and wants. You can email me at drew@windermere.com or call me at 206-619-2739. I look forward to connecting with you.

Stay informed and up-to-date with my weekly newsletter, Drew’s News. Email me at drew@windermere.com to subscribe!