Buying October 8, 2024

Eco-friendly Upgrades to Consider When Buying a Home

SOURCE: Windermere

Buying a home is one of the largest investments you’ll make in your lifetime, which is why it’s important to take a long-term approach when looking at potential properties. In addition to imagining what your living situation will be over the next few decades and how your future home will accommodate it, you may also want to consider the impact you and your household will have on the environment.

Whether you’re buying a fixer-upper, a home that is move-in ready, or something in between, here are some eco-conscious things to consider as you’re shopping for a home.

HVAC Systems

How you heat and cool your home’s interior is one of the biggest contributors to your energy expenditure.

As you look at homes, be sure to look at the furnace, heat pump, or AC unit. Are they up to date or could you replace them with something more efficient? If you have the opportunity, check to see how well insulated the house is. If that’s not an option, be sure to ask during the home inspection to see if there is enough to keep your home warm in winter and keep the heat out during warmer weather.

If you are one of the many would-be homeowners who are considering going solar, look for homes that have a significant area—usually the roof—that faces to the south and isn’t obstructed by trees or taller houses.

Appliances

In most cases, the home you purchase will come with the appliances that are already in it. Do the homes you’re viewing have Energy Star-certified appliances in the kitchen and laundry room? If not, is upgrading to a more energy-efficient oven, refrigerator, washing machine, or dryer in your budget?

. And be sure to look for rebates or tax credits in your city or state that reward these kinds of upgrades.

Windows

It doesn’t matter how efficient your heating and cooling systems are if your windows are letting the air escape through leaks in the seals or old, thin glass. Upgrading to properly sealed dual-paned windows can seem costly, but the savings in energy bills will quickly show an ROI. Tax credits and rebates may apply here as well.

Roof

If the home you’re making an offer on needs a new roof, you have lots of eco-friendly options to consider. Homes in sunnier climates could see energy savings by installing a “cool” roof that absorbs less heat due to its light or white color. Today’s roofing can be made of reclaimed materials, including recycled shingles, slate, or tile. These may cost a little more, but the peace of mind you get from keeping these things out of landfills is priceless.

If you’ve got a green thumb and want to show it off with the top of your house, a living roof may be right for you. Living roofs rely on native vegetation to both clean the air and insulate the home as well as absorb rainwater. This kind of roof is best for houses with less of an angled profile and that have easy access to the roof for regular maintenance.

Landscaping

The greenest yard isn’t the one with the most luxurious grass; it’s the one that requires the least amount of water and chemicals to maintain. Native plants and xeriscaping are natural choices for low-maintenance outdoor spaces. You can also consider gravel, paving stones, or turf instead of grass and decorate with large rocks or reclaimed wood. Trees that shed their leaves in the fall provide shade in the summer months, habitats for hibernating animals and insects in winter, and mulch for the rest of your yard in the spring.

Water Heater

We all love a warm shower, of course, but traditional water heaters are one of the least efficient appliances in our homes. Heating up water takes a lot of energy and keeping it at a high temperature takes even more. Tankless water heaters, on the other hand, heat water on demand rather than wasting energy to maintain it. In addition to the energy savings, tankless water heaters mean you never run out of hot water—no more frigid showers!

SOURCE: Windermere

Design September 16, 2024

Elements of Modern Farmhouse Architecture

SOURCE: Windermere

Traditional Farmhouse architecture represents the history and the industriousness of rustic living. Clean lines, natural materials, and a focus on communal spaces are staples of farmhouse living that were ripe for a modern update. Modern Farmhouse architecture reflects elements of the traditional, but with 21st Century touches that make it especially attractive for today’s homeowners.

Rustic Wood

Because many farmhouses were just that—homes built for and by those who worked on the farm—they often used the materials that could be found nearby. The wood from trees native to the area would be used for both the interior and exterior. Since the people building the homes were mostly concerned with the functionality of the living space and speed at which they could put it together, they didn’t spend time sanding the wood to perfection or painting it, creating a rustic look and feel many modern homeowners desire. Exposed beams and reclaimed wood accents are signatures of Modern Farmhouses.

Clean lines

The simplicity borne from the need to build homes quickly and efficiently lent itself to the clean lines and minimalist spaces we see in both Traditional and Modern Farmhouses. From shiplap paneling to the often-symmetrical shapes of the home itself as well as its interior rooms, you won’t find arched doorways or curved walls in Farmhouses. Look for straight lines, gabled roofs, and large, square windows to identify a Modern Farmhouse.

Covered porches

At the end of a day of hard work on the farm, who wouldn’t want to sit on the porch, sipping something cool and enjoying the view of your property? Contemporary homeowners may define work differently than those who originally called Farmhouses home, but the appeal of spending lazy summer evenings is timeless. A large, covered porch is a telltale sign of Modern Farmhouses.

Muted color palette

Again due to the need to use nearby materials and keep things simple, Modern Farmhouses tend to use palettes that range from white to natural wood colors. Contemporary residents often break up the monochromatic tones with black industrial touches on items including light fixtures, bath and kitchen faucets, and accessories such as doorknobs and drawer pulls.

SOURCE: Windermere

Selling August 6, 2024

The Pitfalls of Overpricing Your Home

SOURCE: Windermere

When a homeowner prepares to put their house up for sale, two things are usually top of mind: how long will it take to sell and how much can we get for it. During a seller’s market, when stories of bidding wars and cash offers abound, it’s can be tempting to put as high a price tag on your home as possible. But even when the market favors sellers, overpricing your home can jeopardize your efforts to sell quickly and get top dollar.

Missing Your Market

The vast majority of homebuyers start their search online, and the first criteria they often enter is the price range. If your home is above the high point of their range, buyers in your target market will never even see your listing—it simply won’t show up in their searches. In addition, it’s human nature to go after the top item in a collection. Buyers want the most house they can get within their budget. This means you want to be the best house compared to those in your price range, rather than among the bottom compared to those in a more expensive bracket.

Key takeaway: You want to shine against your competition, not pale by comparison

Playing the Numbers

Selling a home is a numbers game: the more potential buyers, the greater chance of an offer. Overpriced homes get fewer showings, both in person and online. Your agent will tell you that showings are critical to capturing the interest of buyers, but if the home is overpriced, they will have difficulty attracting attention to your home. This can slow the entire home selling process, leaving both you and your agent feeling frustrated.

Key takeaway: More showings = more offers.

Going Stale

It’s also human nature to be drawn to what’s new, the bright, shiny object, as the saying goes. New listings attract the most attention—that’s when buyer interest is highest. The longer your home is on the market, the less appealing it becomes. And at a certain point, you may be forced to lower the price. Many buyers and their agents will assume the reason the house has been on the market so long, and why you had to lower the price, is because there is something wrong with it. Once the price drops begin, they can continue, which creates the risk of selling your home for less than what it is worth.
In addition, the longer your home is on the market, the more expenses you incur. Mortgage payments, utilities costs, and seller’s fees will continue to pile up, making it harder to recover from these costs when your home does eventually sell.

Key takeaway: Be the bright, shiny object.

Losing at the Last Minute

Let’s say you do find a buyer at the overpriced cost. During closing, the lender will order an appraisal of your home. If the appraiser finds that the market value of the home is less than the selling price, they could deny financing. If that happens and you are forced to put the house back on the market, buyers’ agents will be able to see that it’s a relisting, could assume something is wrong with the house and share those concerns with their client.

Key takeaway: Be realistic about value.

SOURCE: Windermere

Living July 23, 2024

The Life Expectancy of Your Home

SOURCE: Windermere

Every component of your home has a lifespan. Common questions asked by homeowners include when to replace the flooring or how long to expect their siding to last. This information can help when budgeting for improvements or deciding between repairing and replacing when the time comes. We’re all familiar with the cliché: They just don’t build things like they used to. And while this may be true when it comes to brick siding or slate roofing, lifespans of other household components have increased in recent years. Here are the life expectancies of the most common household items (courtesy of NAHB):

Appliances:

Among major appliances, gas ranges have a longer life expectancy than things like dishwashers and microwaves.

Kitchen & Bath:

When choosing your countertops, factor in the life expectancies of different materials.

Flooring:

If you’re looking for longevity, wood floors are the way to go. Certain rooms in your home will be better suited for carpeting, but you can expect they’ll need replacing within a decade.

Siding & Roofing:

When choosing roofing and siding for your home, climate and maintenance level factor into the life expectancy of the material. However, brick siding and slate roofing are known to be dependable for decades.

Are extended warranties warranted?

Extended warranties, also known as service contracts or service agreements, are sold for all types of household items from appliances to electronics. They cover service calls and repairs for a specified time beyond the manufacturer’s standard warranty.

You will have to consider whether the cost is worth it to you. For some, it brings a much-needed peace of mind when making such a large purchase. Also consider if the cost outweighs the value of the item. In some cases it may be less expensive to replace a broken appliance than to pay for insurance or a warranty.

SOURCE: Windermere

Buying July 2, 2024

How to Increase Your Buying Power

SOURCE: Windermere

One of the best ways prospective home buyers can empower themselves when purchasing a home is to improve their buying power. The numbers may seem daunting but identifying ways to strengthen your financial standing will help you each step of the way.

When visualizing your dream home, it’s common for buyers to focus on the physical characteristics. But to mortgage lenders, a home is a numbers game. The following categories related to your buying power demonstrate how lenders identify your financial standing and determine your eligibility for a home purchase. Improvements in these areas will increase your buying power, propelling the strength of your offer when you’re ready to put it on the table.

How to Increase Your Buying Power

Increase Savings For Your Down Payment

As the saying goes, cash is king. The down payment—often 20% of the home’s sale price—can sometimes be the deciding factor between competing offers for a particular home.

Try stashing away a little of each paycheck to build up your savings over time. Set a savings goal, commit a dedicated amount to each pay period, and watch the savings build as time goes on. If you prefer to keep your money separate, open a new account to which you can dedicate the added savings. Another way to save for your down payment is to generate additional income. If you have interest or experience in an area outside of your current job, explore opportunities for part-time work and dedicate the income earned to your down payment savings.

There are numerous benefits to offering a serious down payment. Putting 20% or more down can help your offer stand out, it may allow you to negotiate a lower interest rate on your mortgage and could remove the need for private mortgage insurance (PMI).

Improve Your Credit Score

Plain and simple—a better credit score leads to better interest rate on your mortgage. Your payment history, amounts owed, length of credit history, credit mix, and new credit all factor into your credit score. Although improving it will not happen overnight, a higher credit score will pay dividends in the long run.

To improve your credit score, focus on paying down your credit cards, especially those with high interest. Refrain from opening new lines of credit that aren’t necessary and stay away from large purchases leading up to the time when you are preparing to make an offer. Keep in mind that student loans factor into your financial picture. Paying them off consistently will improve your financial standing in the eyes of lenders.

Stabilize Your Debt to Increase Buying Power

When assessing what you can afford, banks will examine your debt-to-income ratio. Lenders want to know that you’ll be able to pay your mortgage on top of your remaining debt.

They do this by looking at your housing ratio, or front-end ratio, to determine what portion of your income will go to paying your mortgage. Your front-end ratio is calculated by taking your monthly mortgage payment and dividing by your monthly gross income. The higher the ratio, the higher risk of default.

Next, your back-end ratio, or debt-to-income ratio, is used to determine how much of your monthly income goes toward paying your debts. Your back-end ratio is calculated by taking your monthly debt expense (the principal, interest, taxes, and insurance of your mortgage payments, credit card payments, student loans, and any other loan payments), and dividing it by your gross monthly income.

Similar to your credit score, paying off credit cards, and making steady, consistent progress on your loans will help to decrease your debt and improve your debt-to-income ratios, which will increase your buying power.

Although these aspects of your finances don’t cover everything that goes into the purchase of a home, they do play a significant role in how lenders assess your financial standing and thereby eligibility for approval. Increasing your buying power takes time and strategy. Plan accordingly so that when you find your dream home, you’re in the best position possible to buy it.

SOURCE: Windermere

Design June 11, 2024

Decorating for a Stress-Free Home

SOURCE: Windermere

Your home should be your sanctuary—a place to relax, spend time with loved ones, and unwind from the stresses of everyday life. But with many of us working from home, even partially, the lines between life and work can become blurry. And with other stressors bleeding over into personal time, home can start to feel less like a sanctuary and more like the focal point for life’s anxieties.

If you are looking to reduce stress when you’re home and turn your space back into a place of respite, a few DIY redecorating projects could do the trick.

Lighting

How we light our homes (and when we turn the lights off) can have an enormous impact on our mental health. Natural light from unobstructed windows is ideal for boosting your mood during the day, but if you don’t have many windows or prefer your privacy, lamps that produce warm light can be soothing.

Getting a good night’s sleep is one of the best ways to manage stress. Once the sun sets, dim the lights in your house and use blackout curtains to achieve full darkness while you sleep. Avoid lightbulbs that claim to mimic daylight unless you are using them for Seasonal Affective Disorder in the winter months.

Décor idea: Turn off overhead lighting and invest in lamps with variable or dimmable light settings.

Declutter

Though some homeowners are bucking the trends for simple and opting for a “maximalist” style, clutter stresses many of us out. You can go through your house and get rid of all the items that aren’t sparking joy, or you can invest in attractive storage systems that allow you to hold onto your things while keeping them organized. At the very least, make sure you don’t have “to do” stacks or piles in the bedroom.

Décor idea: Try a flip-top bench in hallways or at the foot of your bed to hide away infrequently used items.

Feng Shui

The ancient art of Feng Shui has been helping people create calm inside their homes for thousands of years. Whether or not you believe that sleeping with the head of your bed on the north wall of the bedroom promotes deeper sleep, it’s hard to argue with other Feng Shui practices. One such principle is bringing nature indoors. This can be accomplished with living plants or even art featuring wilderness landscapes.

Décor idea: Select one wall in your home and devote it to photographs of living plants or natural settings.

Rounded shapes

Though clean lines and order may feel comforting to some, too many right angles can be overly stimulating. Circles and ovals, on the other hand, feel more organic and soothing. While you may not be able to round out the corners or entry ways in your home, you can add round touches with circular ottomans, oval frames for mirrors and art, and spherical elements such as a globe or orbs on a bookshelf.

Décor idea: Consider wallpaper or wall designs the include flowing, organic shapes such as wood grain or florals.

Color

The hues and shades you use in your home can have the biggest impact on your mood. Bright colors can be energizing, and reds are great for stimulating appetites in kitchen and dining rooms. But if you are looking to bring a sense of calm to a room, muted shades of blue and green or earth tones are best. Don’t mistake “muted” for “light” though; deep ocean blues and forest greens can be soothing while still making a statement.

Décor idea: If you’re hesitant to commit to painting a whole room, experiment with calming colors by incorporating throw blankets, pillows, and artwork.

SOURCE: Windermere

Living May 28, 2024

Easy Earth-Friendly Energy Fixes

SOURCE: Windermere

There are plenty of good reasons to make your house a little greener, including saving money on energy expenses and ensuring a more livable planet for future generations. No matter what your motivation, making eco-friendly changes doesn’t have to be a daunting proposition.

The following relatively simple tips will help to not only reduce your carbon footprint to realize savings but also bring the peace of mind that comes from making smart choices for the environment.

Reduce Water Usage

For many homeowners, the highest utility expense is the water bill. We all know that taking shorter showers and only running the dishwasher when it’s full can help reduce water usage, but there are other ways to find savings.

If you are an ardent gardener, collect water in a rain barrel during the wetter months to use on plants and yards when outside temperatures go up. Installing a low-flow or dual-flush toilet (or retrofitting your existing toilets) can also reduce the amount of water that goes down the drain.

Invest in Energy Star® Appliances

If your appliances—including your washer and dryer, refrigerator, water heater, or television—are more than ten years old, buying new ones could be all it takes to save money.

For an even bigger bang for your buck, invest in Energy Star appliances. To be certified as Energy Star, appliances must meet strict standards for energy efficiency set by the Environmental Protection Agency (EPA). The upfront cost of these products can be a little heftier than other appliances, but rebates and federal tax credits can help offset that initial expense.

Get a Smart Thermostat

Many thermostats have a scheduling feature to help manage your heating and cooling. This can be helpful if you have a consistent daily routine of when you will be home and out of the house to save energy during the hours when you’re away or asleep.

You can now find thermostats that meet the EPA’s criteria for energy efficiency. Energy Star smart thermostats are Wi-Fi-enabled and give you better control over the heating and cooling of your home. Many of these options have apps on your smartphone that give you the power to adjust from your fingertips. And over time, they can learn your preferences, including times you are away from home and when you sleep, to improve efficiency. They can also provide insight into your energy usage so you can make adjustments yourself for optimal performance.

Plant a Tree or Two

Trees not only suck carbon dioxide out of the atmosphere while producing the oxygen we need for fresh air, but they also provide shade for homes in the summer months, which can cut down on the time you need to run an air-conditioning unit or the AC function of your HVAC system. Plant trees on the south and west side of your home for the best results. Trees that shed their leaves in the fall can provide mulch for your yard or garden, thus reducing the amount you’ll need to water them in the summer and fall.

SOURCE: Windermere

Windermere Community May 14, 2024

Kicking Off the 35th Anniversary of the Windermere Foundation

SOURCE: Windermere

This year we’re celebrating the 35th anniversary of the Windermere Foundation, the non-profit arm of Windermere Real Estate. Since 1989, agents and offices across our network have given back to the communities where Windermere operates. We’ve raised over $53 million and supported thousands of our neighbors in need throughout the Western U.S.

Last year the Windermere Foundation donated $3.7 million to 607 non-profit organizations dedicated to assisting low-income and homeless families. Donations provided emergency assistance, supported youth programs, food support, and shelter.

Our 2023 Community Impact Report outlines our efforts and is available to download and read here.

To start off 2024 on the right foot, our offices in Spokane, WA, and Lake Oswego, OR are doing their part to support low-income and homeless families in their communities through grants and fundraising events.

 

Helping Refugees Thrive in Spokane, WA

Five white people pose smiling with a giant check in a boardroom. The Thrive International logo is on the wall behind them.

Image Source: Windermere Spokane

In their annual grant review, Windermere Spokane considered 32 applications for their 2024 Windermere Foundation donations and were able to grant funds to 11 organizations. While they were able to support a handful of organizations they have donated to previously, they were able to add some new non-profits to their list, including Thrive International.

The stories submitted by Thrive about their temporary housing for refugees struck a chord with a group of Windermere Foundation representatives who come from seven Spokane-area Windermere offices. The funds will help refugee families access housing in a moment when shelter is so important. In addition to temporary housing, Thrive also offers education and empowerment programs to residents, which have helped lead so many into further housing and successful transitions as immigrants to the greater Spokane area. Read on for a story about Yuliia, a Ukrainian refugee who was assisted by Thrive.

Yuliia’s Story

Yuliia smiles in front of a lit neon sign in the shape of the Thrive International logo.

Image Source: With Permission from Thrive International and Windermere Spokane

Yuliia is from Ukraine. She unexpectedly started her journey to come to the United States in May of 2022, just three months after the Russian-Ukrainian war started. Initially, leaving her homeland was not a part of Yuliia’s plans. However, when bombs blasted in her city, she made the difficult decision to seek a secure haven for her family.

“Everything was so good. My life was good before everything happened,” said Yuliia. She was a hardworking administrative manager at a company in Ukraine. Yuliia and her husband had just bought their first home; however, their lives took an abrupt turn when their city became a danger zone, leading them to sell their car to afford flights for their journey to the United States in pursuit of refuge.

Arriving in the U.S. with little more than the clothes in their suitcases, Yuliia faced the daunting challenge of rebuilding her life from scratch. She said, “When we came here, we didn’t have anything. We didn’t have money. We didn’t have any documents. It just looked like we were starting from zero.”

Amidst linguistic and cultural barriers, Yuliia discovered Thrive Center in June, becoming one of its first residents. With the support of Thrive staff, she found not only employment but also a community where she could make connections with other Ukrainian refugees and get help with medical insurance, workshops, and educational resources. Starting as a front desk assistant at a dental clinic, Yuliia’s journey has come full circle as she now serves as the Assistant to the General Manager at Thrive Center.

Expressing gratitude for the opportunities she’s been given, Yuliia finds joy in empowering others to thrive. Yuliia’s story shows resilience and hope amidst adversity. From the once-thriving administrative manager in Ukraine to the unexpected refugee seeking safety in the United States and helping others at Thrive Center, her journey is a testament to the strength of the human spirit.

Stories like Yuliiua’s inspired the Windermere team reviewing applications to fulfill the grant with their available Windermere Foundation funds.

Emma Reeves, with the Windermere Foundation in Spokane, said, “we are excited to continue working with Thrive in the future to ensure that having a ‘home’ is a possibility for all.”

 

Sally Knauss Tulip Sale in Lake Oswego, OR

Four white women stand, smiling, behind a table with tulip bouquets wrapped in brown paper. They’re in rain jackets and they stand in front of the Windermere Spokane office, with the Windermere logo displayed on the wall behind them.

Image Source: Windermere Lake Oswego

The agents at the Windermere office in Lake Oswego, OR hosted their 27th annual Sally Knauss Tulip Sale in March. Named for the Realty Trust agent who started it, who has since passed away, the tulip sale culminated in an order for 8,000 tulips from Wooden Shoe Tulip Farm, which were used to create 800 bouquets.

“Rain or shine each year [our office] is happy to enable this iconic event,” said Valerie Ross, Principal Broker at Windermere-Lake Oswego

Taking shifts from 8am to 1pm on Friday, March 29, fifteen Windermere agents volunteered for the cause, which raises money for the office’s Windermere Foundation fund. Donations from the sale allow the office to support local non-profits throughout the year. This year’s sale raised $5,800 which will go to one or more of their favorite organizations, like Clackamas County Women’s Shelter, Bridge Meadows, New Avenues for Youth, and Friends of the Children.

SOURCE: Windermere

BuyersBuying April 22, 2024

What is Wire Fraud and How to Avoid It

SOURCE: Windermere

A form of cybercrime, wire fraud has led to major losses for homebuyers in recent years. Get to know what it is and what steps you can take to avoid it.

What is wire fraud?

Real estate wire fraud is a scam that targets buyers while making payments during the home buying process. Attackers have taken advantage of the fact that there are several people and entities involved in real estate transactions. Between real estate agents title and escrow companies, mortgage lenders and more, there are many steps, some of which involve sharing financial information and transferring money. This gives ample opportunity for scammers to slip through the cracks somewhere along the line.

The timing of wire fraud is typically during closing using a sophisticated phishing scam. Attackers apply the use of fake emails, phone numbers, or websites, often posing as the buyer’s real estate agent and directing them to allocate funds to a fraudulent account. Because the attacker will have scanned, scrubbed, and lifted your personal information in preparation for the scam, their forms of communication can often look familiar and legitimate.

The mission of the cyberattack is to get your funds into an account the attacker owns. To do this, it is common for them to say that you had previously sent funds incorrectly, that they were never received, that there are new instructions for payment, or that there has been a last-minute change in the closing process. These are all major red flags. It is imperative to take extra caution during the final steps of purchasing a home because transfers, once initiated, are difficult to remedy and can delay your closing process.

How can I avoid wire fraud?

  • Get to know the closing process: Talk with your Windermere agent ahead of time about what to expect throughout the closing process. Discuss payment options with your lender and ask specifically about instructions for wiring funds. It is safer to share this information over the phone than through email, as scammers could accumulate this information to use against you.
  • Record contact information: Keep a list of the personnel involved in your closing process. Beyond your real estate agent, keep a record of contacts at your mortgage lender, title company, and attorney’s office. In the event that someone new reaches out to you with a request, confirm their identity with one of your contacts.
  • Call to confirm: Call to confirm wiring instructions before sending the transaction through. Talk to a trusted representative and ask them to repeat the information to verify its legitimacy. After sending the funds, make same-day follow-up calls to ensure they were received.
  • Trust your gut: If you receive an iffy email or phone call, trust your gut. If something doesn’t feel right, it’s the perfect time to reach out to your contacts, discuss your hesitancy, and get advice before proceeding.

The threat of wire fraud emphasizes the importance of working closely with everyone involved in the purchase of your home. If you believe you have been scammed, contact your bank or wire transfer company immediately and request that they issue a recall notice for your wire. Contact the FBI’s Internet Crime Complaint Center and report the activity with as much information as you can gather. For more information about how to protect yourself from wire fraud, visit the National Association of Realtors’ Wire Fraud resources page.

Selling March 19, 2024

10 Costs Associated with Selling Your Home

SOURCE: Windermere

Selling a home is an exciting time for homeowners. Once you and your household have decided that you’ll hit the market, it’s easy to think solely about the revenue that comes with the sale. However, selling a home comes with its own set of costs. Knowing what these costs are will help you budget throughout the selling process. Here are ten most of the most common costs that come with selling a home.

10 Costs Associated With Selling Your Home

1. Commission Fees

Of all the expenses that come with the sale of a home, agent commission fees are usually the largest and for good reason. Real estate agents are professionals, wielding their industry knowledge and local expertise to get the job done and save countless hours of work for the homeowner. The commission is split by the agents representing both buyer and seller

2. Pre-sale Home Inspection

Pre-sale home inspections are not mandatory; however, if a seller does not conduct one, it could lead to major costs down the road. The inspection allows the seller to find any issues with the home and properly disclose them to the buyer. If the buyer’s home inspector finds repairs that need to be made, they can ask the seller for a price reduction or require that they be fixed in order for the sale to go through.

3. Home Repairs

There are varying degrees of home repairs that can increase the value of your home. Cosmetic fixes like improving your landscaping will do wonders for your curb appeal. Painting and decluttering help to present the home in the best light for buyers. Larger projects like replacing appliances, roofing, plumbing, and full-scale upgrades are a more significant investment but can increase your home’s value.

4. Staging Costs

During the selling process, it pays to put effort into the presentation of your home. Staging helps buyers to visualize living in the home. Professional stagers will enhance your home’s qualities while minimizing its deficiencies. Their cost will depend on the level of staging your home requires.

5. Utilities

In the interim period between when you move out and the buyers move in, you’ll want to continue paying utilities. Without running water, electricity, and heat, your home could be difficult to show to buyers.

6. Remaining Mortgage

Another cost of selling your home is the remaining loan balance on your mortgage. If you have been steadily paying your mortgage, your home sale will greatly aid in paying back the remaining amount, if not cover it completely.

7. Escrow Fees

In a home sale, there’s always the question: Who handles the cash? That’s where escrow comes in. It’s common for buyers and sellers to split the cost of escrow services. Be mindful of additional costs during escrow such as transfer fees and notary services.

8. Capital Gains Tax

The capital gains tax is assessed by taking the difference between what you paid for your house and what you sold it for. There are common exclusions for the tax, but there are situations where the exclusions may not apply. For example, if the home was not your primary residence, you could end up paying taxes on the whole gain. Talk to your Windermere agent for more information.

9. Property Tax

If your home sale takes place after you’ve paid taxes for the year, you may get a rebate at closing. In this case, the buyer reimburses the seller for the applicable taxes paid. Otherwise, the seller should pay the prorated share of property tax until the sale closes, placing the money in escrow.

10. Moving costs

Finally, the home sale is final, and you’re ready to move. Whether you’re moving locally or across the country, moving costs can add up quickly. Moving as many of your items yourself can save money, but for larger, more difficult to transport items, you’ll likely need to incur the cost of hiring professional movers to ensure your items arrive at your new home safely.

 

These are just some of the costs associated with selling your home. Each home sale is different, and the costs vary accordingly. Knowing what you can expect to spend throughout the selling process will help you budget accordingly. For more information on the costs in the selling process and how to sell your home, connect with me today.

SOURCE: Windermere