Real Estate Advice from Seattle Agent David Warren

Moving Up: Selling Your Seattle Home and Buying Another

February 21, 2018 By David Warren

You’ve been through the process of buying a house as a first time home buyer, but now it’s time to move-up to a home that better suits your current needs. Maybe you need a larger home to keep up with your growing family, a home closer to a specific school or maybe you’d prefer living in a different part of the city to make commuting to work simpler? This time buying a new home becomes are little more complicated logistically as you have your current home to sell as well. Plus, you want or need to use the equity from your current home to purchase your new one.

There are several options to choose from when moving up, and the direction you choose to go in can depend on when the purchase of your new home closes in relation to the sale of your old home. Regardless of which choice you make, make sure to get your finances arranged and hire a Seattle real estate agent experienced in the process of moving up. For most people this is not a do-it-yourself project, and good negotiation skills are important. Once you’ve hired your chosen professional, choose one of the three options that best fits your situation.

Buy First: While this option is not possible for most financial situations, it’s ideal if you can afford two mortgages for a few months. Buy the home you want and move into it, then put your old home on the market. This method is pricey, but will provide you the most ease in moving and settling in. Carrying a temporary mortgage is doable through a bridge loan. Ask your preferred loan originator about this option and see if it is a possibility for you.
Sell First: This is likely the best financial option for most people, but it is less convenient than buying first and includes more work. Sell your current home and move into a temporary living space (such as a rental home or apartment) while you look for the right home to purchase. You can keep most of your non-vital belongings in storage and only unpack them once you’ve purchased the new home. Given the current Seattle market conditions this option has its risks. You may be “temporarily” displaced for a while until you can secure a new home.
Contingency Purchase: With this method, you find the home you want to purchase first and make an offer contingent on the sale of your current home. This is a great option on your end, but can be tricky to pull off. Many sellers don’t want to take their home off the market based solely on the possibility that the potential buyer (you) will make a sale on their home soon. In the current Seattle area seller’s market this is a risk sellers do no need to take and likely will not. This option works best in a buyer’s market.

Working closely with your real estate agent and choosing the best option for your financial situation will put you on the quick path to success and put you into your next dream home.

If you’d like to explore more about the different options of selling and buying a new home in Seattle please contact me. I’m always happy to talk with you.

David Warren
Managing Broker | Realtor
Metropolist

425-760-8285
david@metropolistgroup.com

4 Uplifting Ideas for LED Downlights in Your Kitchen

February 21, 2018 By David Warren

Whether you’re starting a significant kitchen remodel in your Seattle home or just giving your current kitchen an update, LED downlights can pack a serious punch to take your kitchen to the next level. Here are some ideas to help illuminate your kitchen that can work for a variety of kitchen upgrades.

Under-Cabinet Lighting: Seattle residents are foodies and it’s much more enjoyable to prepare food in a well-lit work area than enduring poor lighting. Fitting LEDs to the underside of cabinets is a great way to illuminate work surfaces and provide a more localized light than just using the overhead lighting. LEDs compliment ceiling lights, providing interesting areas of light and shadow throughout the room.
Interior Cupboard Lighting: Enhance glass cabinets with better lighting. Placing LED lights inside glass-fronted cupboards highlights the cupboard’s contents and is great for showing off crystal, glasses, or decorations. It also softens the ambience of the light as it’s reflected off the cupboard contents, adding a warm, atmospheric glow to the area.
Mixing and Matching: Not every light in the kitchen suddenly needs to be LED downlights. Creatively mixing traditional lighting with LED downlights allows for a lot of flexibility. Take, for example, a dining kitchen. Use the main ceiling and spotlights for bright lighting, then use softly-lit alcove lighting and the light directly above the table to create a more relaxed, intimate atmosphere for dining.
Pendant Lights: Although LED downlights are mostly fitted flush with the surfaces they’re mounted to, there are other mountings available. Pendant light fixtures provide an unusual but impactful change to specific areas of your kitchen. Try hanging an LED pendant fixture over the kitchen table to improve lighting and add some perceived height to your decor.

Realtor vs. Real Estate Agent: The Difference

February 7, 2018 By David Warren

It’s common for those unfamiliar with the specifics of real estate terminology to use “Realtor” and “real estate agent” interchangeably. In fact, because of how clunky “real estate agent” can sound in conversation, it’s very common to hear people use “Realtor” almost exclusively. Despite the fact that they share many commonalities, these titles refer to two different things, and it’s important to make the distinction. Here are the key differences between the two terms.

A real estate agent is anyone who holds a real estate license. The license can designate someone as a sales professional, an associate broker, or a broker. While the distinctions between the different kinds of real estate agents varies, they are all licensed to sell real estate.

A Realtor is someone who is an active member of the National Association of Realtors, and “Realtor” is a trademarked term owned by the NAR. While many members of the NAR are in fact real estate agents, members also include property managers, appraisers, real estate counselors, and other real estate professionals.

The key difference between a practicing Realtor and a professional in the same position without being part of the NAR is that all Realtors must ascribe to the NAR Code of Ethics. The Code of Ethics consists of seventeen Articles that include putting the interests of buyers and sellers ahead of the Realtor’s own interests, not practicing law unless they are a lawyer, and engaging in truth in advertising.

That’s not to say that real estate professionals outside the NAR don’t follow the same guidelines, or that they aren’t held to the same legal standards. Most real estate professionals you encounter will operate in much the same way, but only Realtors have this additional code that is officially documented and enforced by local real estate boards. This is an attempt by the real estate industry to self-regulate.

When talking about real estate professionals, the terminology you use does in fact matter. “Realtor” comes with its own set of additional guidelines and requirements that “real estate agent” does not, and many real estate professionals fall into one category but not the other, or neither at all. Choosing the correct term when speaking to or about real estate professionals will avoid confusion among all parties.

If you are looking for professional assistance with selling your Seattle area home I highly recommend selecting a broker that is a member of the Realtors association and not just a licensed real estate agent.

David Warren
Managing Broker | Realtor
METROPOLIST

Member of:
Seattle / King Country Association of Realtors
Washington Association of Realtors
National Association of Realtors

What is Title Insurance?

February 7, 2018 By David Warren

While most of us are familiar with insurance as a whole, there are a few specific differences that make title insurance a bit confusing. Let’s take a look at what sets title insurance apart from other forms of insurance and how it will benefit you.

Title insurance is a bit different from other insurances you will encounter, like life insurance or home insurance. While most insurances protect you against potential future events, title insurance protects you from the past events and from previous owners of the property. Specifically, title insurance protects against a variety of issues, sometimes called “defects”. Defects include another person claiming ownership interest, fraud, forgery, encroachment, improperly-recorded documents, and several other potential hiccups specified in the insurance policy.

The title insurance policy is created during the transaction of the property in question. A title search is conducted during escrow, which results in a preliminary commitment for title insurance that is issued to the customer for approval. After approval and the closing of escrow, the actual title insurance policy is created, so all parties are aware of the policy’s specifics. The policy will protect the buyer, seller, and lender from defects as specified in the policy.

Another key difference between title insurance and other forms of insurance is that title insurance is paid for once, at the close of escrow, instead of via monthly or annual premiums.

When choosing a title insurance company, it’s encouraged to shop around, comparing fees and services. Your lender or real estate professional may recommend a specific company, but it’s important to find a company that is right for you.

If you have a question about title insurance in the Seattle area let me know. I may be able to help. If not I will point you in the right direction.

David Warren
Managing Broker
METROPOLIST

What is Earnest Money?

February 7, 2018 By David Warren

Simply put, earnest money is a form of collateral paid by a buyer as a early deposit to show intent and good faith to a seller for taking the seller’s home off the market while the buyer does their due diligence on inspection of the property and arranging financing if needed. In the Seattle area earnest money deposits are generally, 1-3% of the purchase price of the home, although buyer and seller can come to any agreement on amount. Earnest money is negotiable. In the current “seller’s” market its not uncommon to see earnest money deposits of 5% (or more) offered by competitive home buyers.

Again, the reason for providing earnest money is to show that the buyer is serious in their commitment to purchase the property. Earnest money deposits are usually made immediately upon mutual acceptance of an agreement and held in a trust or escrow account until the transaction is finalized.

At mutual acceptance the property is taken off the market by the seller to allow time for buyer to inspect the home before closing the sale. If the buyer is also financing the purchase the buyer will need to secure a mortgage and the lender of the loan will want to appraise the property.

If the sale goes through, the earnest money is typically applied towards buyer’s closing costs and down payment due at closing. If the sale does not go through, the buyer may or may not be able to reclaim their earnest money, depending on the phrasing of the sale contract. Backing out for reasons covered in the contract (failed contingencies such as unfavorable discovery from inspection being a common reason) will likely allow the buyer to reclaim their earnest money, while backing out for reasons not covered will generally forfeit the good faith deposit.

If you have a question about earnest money or Seattle real estate in general please contact me. I’m always happy to answer your questions.

David Warren
Managing Broker
Metropolist

Home Sales Increase Nationally, Despite Low Inventory

January 26, 2018 By David Warren

Seattle home sales are still very strong with valuation increases once again reaching well into the double digits during the last year. Affordable homes seem to be a thing of the past for most. For a larger picture perspective lets take a look at the housing market across the country.

Thanks to lower unemployment levels and increasing wages, home ownership nationally is becoming an affordable reality for more potential buyers. However, the housing shortage continues, meaning those potential buyers are still finding it difficult to afford their dream home. Increased home prices isn’t the only thing the low inventory is causing, though; it’s also putting downward pressure on existing-home sales. Supply shortages resulted in the second straight month of declining year-over-year closing. Existing-home sales in October 2017 were down 0.9% from 2016, at 5.51 million. However, this is still the strongest month-over-month sales pace since June 2017. Furthermore, all four regions of the country recorded increased sales activity in October.

Fewer “For Sale” Signs
By the end of October, there were 1.8 million existing homes on the market, a 3.2% decrease from September and a staggering 10.4% decrease from the previous year. For 29 months in a row, home inventory has fallen year over year, and at the current sales pace, unsold inventory would supply the housing market for only 3.9 months. In comparison, unsold inventory a year ago represented a 4.4-month supply.

Fast Sales
In October, an average property spent 34 days on the market. This is unchanged from September, but a full week quicker than the average sale in October 2016. Of all home sold in October, 47% sold in under a month. In areas with a healthy job markets, home sales are even quicker. According to Lawrence Yun, chief economist for the National Association of Realtors, all listings “continue to go under contract typically a week faster than a year ago. With the seasonal decline in inventory beginning to occur in most markets, prospective buyers will likely continue to see competitive conditions throughout the winter.”

Regional Existing-Home Sales (October 2017)
Northeast – Annual rate of 740,000; a 4.2% increase from September 2017, unchanged from October 2016
Midwest – Annual rate of 1.31 million; a 0.8% increase from September 2017, and 1.5% decrease from October 2016
South – Annual rate of 2.16 million; a 1.9% increase from September 2017, and 1.8% decrease from October 2016
West – Annual rate of 1.27 million; a 2.4% increase from September 2017, and 0.8% increase from October 2016

If you’d like to know how your home is doing compared to the national and Seattle average let me know. I’d be happy to provide you a professional opinion of your current residence.

David Warren
Managing Broker
Metropolist
425-760-8285
david@metropolistgroup.com