Bellevue Real EstateFinancesHome BuyingHome owner tipsHome Sweet HomeKirkland Real EstateMarket StatsWindermere Agents October 25, 2023

A First-Time Buyer’s Guide to Mortgages

Mortgages can seem daunting for many first-time home buyers. While becoming a homeowner is exciting, it can be intimidating to embark on an investment of this magnitude. We sat down with WBC’s resident loan officer, Jim Murphy of Movement Mortgage to get the best tips for first-time buyers  who are navigating the mortgage loan process.

What is a mortgage?

Mortgages are secured loans, where the “borrower promises collateral to the lender in the event that they stop making payments”, with the home itself being the collateral. There are different programs available depending on the financial situation, occupation, and credit score of the borrower. To better understand your options, you will need to meet with a lender to ascertain what you can afford.

 

mortgages

 

The Pre-Qualification Process

Before meeting with a lender, you will need to make sure all the relevant documents are in order. This is known as pre-qualification and helps determine what type of loan you might qualify for. Financial documents that most lenders want to see include:

  • Recent pay stubs
  • Copies of your tax returns
  • W2 forms
  • Bank statements for checking, saving, and retirement/investment accounts
  • Credit card bills
  • Lease agreement, if applicable
  • Student loan deferment letters/agreements, if applicable

Once you have all the necessary paperwork, it’s time to set up an appointment with a mortgage company to discuss your options. Some loan programs will offer lower interest rates based on your credit score, while others will offer a lower down payment in exchange for paying insurance premiums.

 

WBC: What are some of the most important questions a first-time buyer should ask when they meet with a lender?

Jim Murphy: I think one of the biggest questions a client should ask is “How do I make myself as strong of a buyer as possible”. Completing an application and providing all the documents that [a lender] requires to get a To-Be-Determined (TBD) underwritten loan will basically clear any pitfalls outside of an appraisal. This will show that you have been approved up to a certain loan ceiling and from there, we just need to find a property!

 

mortgages

 

The Pre-Approval Process

Mortgage pre-approval is an offer by the lender to loan you a certain amount under specific terms, but it is not a guarantee that you will receive a final approval. It is simply verification that you qualify for the amount that you have applied for based on your credit history, income and assets, etc. This step involves a deeper dive into the documents you submitted during the prequalification process.

 

WBC: Do you have any tips for first-time buyers to ensure a smooth pre-approval process?

JM: The best thing a client and lender can do is have a clear and open communication about their financing goals and the outcomes a lender can deliver. Clients have a budget in mind, both in the monthly payment and down payment they can comfortably afford, but sometimes [they] can qualify for much more. [Keeping an] open dialogue between the lender and client are imperative for success.

 

mortgages

 

The Final Loan Approval

After obtaining a pre-approval document from your lender, you are ready to start looking for your new home! Lenders will offer you a loan estimate based on the estimated interest rate, monthly payment and total closing costs for the loan. Your mortgage application will then be assessed by underwriters who will determine “if the funds from the sale of the property are enough to cover the amount you will be lent in your mortgage.”

If your application is approved, you now have the green light to close on the property!

 

WBC: What is one final piece of advice you have for first-time home buyers?

JM: Don’t be afraid to buy something that needs a little work to be a really nice home. There are loan products available, like a renovation loan, that does not require a large down payment but can make the home that needs some renovation feel like your own!

 

Understanding the role of mortgages in your homeowner journey may seem overwhelming, but with the support of knowledgeable Windermere agents and our amazing partners at Movement Mortgage, finding the home of your dreams can become a reality! Get in touch with the WBC team today to start your home search and don’t forget to check out the WBC Tik Tok account for the full-length interview, Mortgages 101 with Jim Murphy, here.

 

Written by Makena Schoene

Bellevue Real EstateHome BuyingHome ImrovementHome Sweet HomeSeasonalWindermere AgentsWindermere Bellevue Commons News September 2, 2023

Wildfire Preparation and Evacuation Tips

This article originally appears on the Windermere Real Estate Blog, here.

Written by Sandy Dodge

 

Wildfires cause chaos for homeowners. Though they are destructive, with the right preparation, you can ensure that you and your household have a plan in case of an emergency. Many homeowners insurance policies cover damage caused by wildfires, but check with your insurance agent to make sure. The following tips are meant to inform your household’s wildfire evacuation protocol, whatever your evacuation timeline may be.

Wildfire Preparation: Immediate Evacuation

Evacuation orders come from local law enforcement agencies, but if you have not received an official evacuation notice and feel threatened by wildfires in your area, do not hesitate to leave. Take only essential vehicles on the road, this will minimize traffic and reduce the chance of gridlock when evacuating the area. Keep the windows rolled up to avoid inhaling smoke and tune into local radio for updates as you head toward safer ground. Don’t forget your masks and remember to bring the six P’s:

  • People and pets
  • Phones and personal computer
    • Chargers, any additional computer hardware
  • Papers and important documents
    • Birth certificates, passports, insurance, legal documents
  • Prescriptions
    • Medication, eyeglasses, contacts
  • Pictures and irreplaceable keepsakes
  • Payment (credit & debit cards, bank cards, cash)

It helps to have a “go bag” or portable kit packed ahead of time if and when a wildfire breaks out. In it, you’ll want to keep a list of essential items in case you’re away from your home for a while. Include the following items in your go bag:

  • Face masks or coverings
  • Extra clothing
  • First aid kit
  • Toiletries
  • Tools
  • Flashlight
  • Batteries
  • Sanitation supplies
  • Copies of important documents
  • Three-day supply of food and water

Wildfire Evacuation Preparation

If you live in an area that is not being evacuated, there are steps you can take now to prepare your home and family, if and when the time comes. These tasks can help to discourage fires from spreading closer to your home and hopefully salvage some household items.

  • Create a “defensible space” by clearing your home’s surroundings of brush and vegetation
  • Turn off sprinklers and main gas lines
  • Clean out roof and gutters
  • Move furniture away from windows toward the center of the room
  • Remove flammable household items
  • Prepare your emergency kit
    • Include essential items listed above

For more information about wildfires and indoor air quality, visit the Environmental Protection Agency (EPA) website. Be sure to check your local news and emergency alert radio stations and social media profiles for the most up-to-date information and helpful resources.

Wildfires are unpredictable. Knowing what to do both in preparation for and during an emergency evacuation will have your household prepared in the event that a wildfire spreads to your area, neighborhood, or home.


­­­­­­­­­­­Featured Image Source: Getty Images – Image Credit: Daniiielc

 

Windermere Bellevue Commons News August 23, 2023

How to Turn Your Home Into a Vacation Rental

So, you want to become an AirBnB host. How do go about converting your property into a vacation destination?

The hospitality industry has been hard at work to regain its foothold with stir-crazy consumers who have a whole new set of values post-Covid. The growing popularity of the short-term vacation rental is poised to redefine the nature of vacationing for years to come, thanks to increased space, flexibility, and lower average rates.

The demographic for Airbnb guests is changing as well, as Gen Z and millennials are more inclined to travel with groups of friends rather than just their immediate family. Future Airbnb owners can capitalize on this trends for unique, photogenic accommodations that hotels can’t always provide.

If you are willing to put in the hard work, your vacation rental can turn a good profit, and we’ve got a quick guide to get you started!

Image Courtesy of NWMLS Listing – Duke Young

Laws & Logistics

Converting your home into a vacation rental isn’t as easy as listing it on a site like AirBnB. There are a lot of hoops to jump through regarding local regulations, insurance policies, market trends and HOA rules. Start your research by looking into the ordinances of the city where you are located, as municipal law can vary even within the same state.

Seattle law, for example, states that property owners are restricted to operating a maximum of 2 dwelling units as short-term rentals, whereas Bellingham only requires that short-term rental operators obtain the appropriate vacation rental permit and pay the associated fee. Paying attention to regional codes is an important first step towards turning your property into a vacation rental.

Looking into the local market is a great way to get a feel for whether or not your vacation rental has a chance to really succeed in that area. “Look for your direct competitors,” advises Alex Haler, a strategic account executive with AirDNA, “What are they doing well? Do any of them have a particular amenity or feature that is helping them outperform the others? Keep track of this group of competitors as they will aid you in setting the right price, benchmarking your performance and staying ahead of the curve.”

Image Courtesy of NWMLS Listing – Duke Young

 

Reduce, Repair & Redecorate

The next step is to take care of any necessary repairs, update the furniture and install new tech if need be. Start by depersonalizing the space – as much as you love those family mementos, you are selling a space as a blank canvas for others to create their own memories.

Install smart technology to enhance connectivity for your guests and to keep an eye on your property when you can’t be there in person. Electronic locks that can be managed via the internet are a great addition, as they generate unique codes for each guest stay and make the check-in process quicker and easier.

Now is the time to take care of those pesky quirks that you have grown accustomed to, like squeaky doors or testy faucets. While some guests may not even register these issues, you are investing in your property’s longevity. By being proactive with repairs from the get-go, you save yourself stress and potentially more costly problems down the line.

When decorating, consider the aesthetic of your vacation rental and how it will complement the local vibe. What draws people to the area? Would a coastal motif fit best or would a cozy cabin vibe be more appropriate? “Think about how your guests are going to use the space, rather than simply throwing things together,” advises Nikki Kaestner, a Senior Design Associate with Vacasa.

Good design isn’t about finding matchy-matchy pieces, but creating a space that feels like a home. This can be achieved by layering pieces for a lived-in look that don’t necessarily match but blend cohesively. Make sure you invest in sturdy, quality materials (especially in high touch areas like dining rooms) that can withstand the wear and tear of multiple guests over several seasons – this includes solid wood tables and fabrics that have passed the Martindale test for performance, like Sunbrella.

Stock Up On Supplies

You’re almost ready to welcome your first guests! All that’s left is making sure all the little essentials are well-stocked. Guests are always on the lookout for amenities such as extra towels, sheets and basic toiletries. These are items that are used the most and are almost always left behind in a packing frenzy.

Invest in quality bedding, kitchen supplies and travel-size toiletries to make your vacation rental stand out from the crowd. Being an over-prepared vacation rental host by anticipating these needs can make the difference between a glowing review and an unsatisfied comment that affects future bookings.

Image Courtesy of NWMLS Listing – Duke Young

Advice From An Agent

Don’t just take our word for it! We sat down with WBC broker, Mylo Adams, one our amazing real estate professionals for her tips on property management. “Vacation rental listing setup is the most important,” Mylo advises, “Be sure to verify your property may legally be used as a vacation rental.” This means understanding tax liability on the city, state and federal level, including excise, Business & Occupation (B&O) and capital gains tax.

Mylo’s Top Tips
– Prepare a Rules & Regulations handbook for your guests, as many condominiums allowing vacation rentals have specific rules.
– Invest in excellent professional photos. Did you know that professional photos can lead up to 20% more bookings?
– Respond to inquiries quickly (within 1 hour).
– Clean, Clean, CLEAN! Hire a professional cleaning service to make sure everything looks its best.

 

Its no secret that the nature of travel has changed over the last few years, creating new opportunities for homeowners to get involved in the field of hospitality and generate another revenue stream. If you think that converting your property into a short-term or vacation rental sounds like the right move, make sure you are doing as much research as possible. It’s a competitive market but creating an insta-worthy escape can pay significant dividends if done right.

Happy hosting!

 

Written by Makena Schoene


Featured Image Source: NWMLS Listing Courtesy of Duke Young

Bellevue Real EstateHome BuyingHome ImrovementHome Sweet HomeWindermere AgentsWindermere Bellevue Commons News July 5, 2023

Turnkey vs. Fixer-Upper: Pros and Cons

This article originally appears on the Windermere Real Estate Blog, here.

Written by Sandy Dodge

 

The beauty of real estate is that different properties satisfy different needs. Although single-family homes are great for putting down roots, that may not be your motivation for purchasing your next home. If you’re looking to buy a property with the intent of renting it, both turnkey and fixer-upper listings will cross your path during your home search. The main difference between the two is the condition of the property when you buy it. The right one for you depends on your needs as a homeowner and your goals as a landlord.

What is a turnkey property?

Turnkey properties are move-in ready from day one, which means they’re ready for you to rent them out immediately. Whether it’s a new construction home or a recently remodeled listing, these properties are in tip-top shape when they hit the market. Companies that specialize in renovating and selling these properties may also offer property management services, which may appeal to you if you’re looking for a more hands-off approach to managing your investment property.

What does fixer-upper mean in real estate?

Compared to turnkey listings, fixer-uppers are on the opposite end of the investment property spectrum. Buying a fixer-upper means you’re purchasing a home that needs repairs, remodeling, and some major TLC before it’s ready to rent out. These properties are diamonds in the rough; you’re betting on your ability to make high ROI home upgrades that will attract future renters and put money in your pocket.

 

Image Source: Getty Images – Image Credit: StefaNikolic

 

Turnkey vs. Fixer-Upper: Pros and Cons

Turnkey Pros

Because they are move-in ready, turnkey listings have the potential to generate cash flow right away. Without any pending renovations in your way, you can open up the property to renters as soon as you take possession. They’re primed and ready to place in the hands of a property management company, which means you’ll get passive income without having to deal with day-to-day operational tasks.  You can also ask the listing agent for permission to use their photos, which can help your rental stand out amongst the competition in your area.

Turnkey Cons

So, what’s the catch? These benefits all come at a cost; turnkey properties typically cost more than fixer-uppers. You’ll pay a premium for the pristine condition and the buttoned-up appearance of these properties, so it’s important to have a strategy to save money for your home purchase. Also, handing off property management duties to a third party means you’ll have less control over the renting process. For more information on whether hiring a property management company is right for you, read the following blog post:

Fixer-Upper Pros

Searching for homes in less-than-pristine condition can give you a leg up as a buyer. Fixer-upper homes tend to have less competition from buyers than turnkey properties, since not everyone is willing to take on a major remodeling project. Talk to your agent about how to make the best offer. Given their lessened condition, you can oftentimes get a great deal on these homes with the right strategy. And the best part is, your remodeling efforts will increase the home’s value over time. The more effort you put in, the more the property will be worth, which means higher ROI potential.

Fixer-Upper Cons

Here’s the downside with fixer-uppers: tapping into their potential requires pouring money into the property. Exactly how much you can expect to spend on a fixer-upper varies by location, the size of the home, and the scope of repairs and renovations needed. Tackling some remodeling projects DIY can save you money, but if certain projects require more skilled hands, it may be best to hire a professional. And for all your planning, it’s impossible to predict the future. Projects may go over budget, material costs may rise, and the market may look completely different when you’re ready to rent out your property than it did when you bought it. For more information on buying a fixer-upper and the special financing options available to you, read the following blog post:

Your real estate agent is your greatest asset in helping you determine which property type is right for you. Connect with a local Windermere agent to see which turnkey and fixer-upper properties are available in your area.


­­­­­­­­­­­Featured Image Source: Getty Images – Image Credit: hikesterson

 

Windermere Bellevue Commons News October 14, 2019

Local Market Update October 2019

lmu-10-october-2019.jpg

While fall usually brings a decrease in sales activity, the opposite was true in September. The number of listings on the market dropped by double digits and home sales rose. It is still a seller’s market, however prices have stabilized. With interest rates near historic lows and employment levels at historic highs, the housing market is expected to stay strong throughout the fall and winter.

EASTSIDE

Long the most affluent area of King County, the Eastside continues to record the highest home prices in the region. The median price of a single-family home on the Eastside was $928,500 in September, an increase of 4% from a year ago and a decrease of less than 1% from August. The Eastside construction boom continues, indicating that developers remain confident in the strength of the local economy.

VIEW FULL EASTSIDE REPORT

KING COUNTY

The number of homes on the market in King County fell by almost 20% in September when compared to a year ago. However, last fall saw an increase in inventory that was unusual for the time of year. The median price of a single-family home was $660,000, down just 1% from the same time last year. Cities in King County, outside of Seattle, all saw price increases. Sales were up 7% indicating no shortage of buyers.

VIEW FULL KING COUNTY REPORT

SEATTLE

Prices remained relatively stable, with the median price of a single-family home in September dipping 3% over a year ago to $750,000. As tech companies continue to recruit top talent to the area, Seattle’s population keeps booming and demand for housing remains high. While home sales traditionally dip in the fall, the city saw sales increase by 12% in September as compared to last year. Rising rents may push more buyers into the market.

VIEW FULL SEATTLE REPORT

SNOHOMISH COUNTY

Buyers continue to be drawn to Snohomish County thanks to a strong economy and housing costs that are considerably more affordable than King County. That influx of buyers is also driving up prices. The median price of a single-family home in September was $492,500, up from $484,995 the same time last year. At $167,500 less than the median price in King County, it’s a relative bargain.

VIEW FULL SNOHOMISH COUNTY REPORT


This post originally appeared on GetTheWReport.com

Windermere Bellevue Commons News August 13, 2019

Local Market Update August 2019

The real estate market continued to moderate in July. Inventory rose and home values softened, providing buyers with increased selection and more favorable pricing. With strong job growth and interest rates holding at below 4 percent, brokers expect the market to remain solid through fall.

EASTSIDE

The market remains strong on the Eastside. The current tech boom continues to fuel demand, buoyed by Google’s recent plans to build out another office in Kirkland. An increase in inventory gives buyers more time to find the right home for their budget. The median price of a single-family home on the Eastside was $925,000 in July, down 2 percent from the same time last year.

VIEW FULL EASTSIDE REPORT

KING COUNTY

Home prices in King County continued to ease. Buyers took advantage of lower prices and new inventory to boost home sales in July. The median price of a single-family home was $680,000, a 3 percent decline from the same time last year. More moderately-priced areas in the south end of the county saw continued price growth.

VIEW FULL KING COUNTY REPORT

SEATTLE

It’s no surprise that Seattle is the top city in the country where millennials are moving. Apple plans to add 2,000 jobs in Seattle. The first of 4,500 Expedia employees will start moving into Interbay soon. While demand here is expected to stay strong, prices continue to cool. The median price of a single-family home was $755,000, down 6 percent from a year ago and a decrease of 3 percent from June. Southeast Seattle, which generally has more affordable homes, saw the median home price rise 9 percent over the same time last year.

VIEW FULL SEATTLE REPORT

SNOHOMISH COUNTY

Inventory remains very tight in Snohomish County. The number of listings on the market were up 6 percent over last year, and the county has only six weeks of available supply – far short of the four to six months that is considered balanced. The median price of a single-family home in July was $502,000 – up slightly from the median of $495,000 a year ago.

VIEW FULL SNOHOMISH COUNTY REPORT


This post originally appeared on GetTheWReport.com

Bellevue NewsHome SellingMarket StatsWindermere Bellevue Commons News December 13, 2018

Eastside Market Update December 2018

The real estate market continued to improve for buyers in November.  Interest rates dropped slightly, price increases slowed and inventory soared. It’s important to note that inventory increases, while significant, are being compared to the record low supply of last year. We’re still far short of the inventory needed for a truly balanced market, however buyers have greater choice and less competition than they’ve had in years. Sellers who price their home according to current market conditions continue to see strong interest. Heading into the holiday season, there’s something for everyone to celebrate.

Market StatsWindermere Bellevue Commons News September 14, 2017

King & Snohomish County Market Stats – August 2017

 

What’s Happening in the Market

Eastside (based on Residential Homes):

Low Inventory

The Real Estate market in August 2017 showed signs of slowing down, but it was interesting to see as home inventory fell, homes under $1.5M on the eastside were still selling at a fast pace while the upper end Buyers were being much pickier.

 

Less Sail-Fails

Another interesting thing to note was that Sale fails were continuing to drop which is a credit to more qualified Buyers and tighter contracts that are required when competing in a multiple offer situations.  It also was because of the pre-inspections being done before writing offers instead of requiring Buyers to find deficiencies and then renegotiate the terms of the contract.

Market StatsWindermere Bellevue Commons News May 24, 2017

King & Snohomish County Market Stats – May 2017

What’s Happening in the Market

Eastside (based on Residential and Condominium report):

  • Closed median price at an all-time high of $748,944, up 20% from a year ago

 

  • Price appreciation is being driven by low supply and high demand.  Eastside months’ supply of inventory is less than three weeks, the lowest ever!

 

  • 748 active listings as of 4/30/17.  Down 33% from the year before and 48% from two years before.

 

  • Scarcity has buyers paying above list price on 65% of the sales that closed in April.

 

  • What was the cost of waiting on year (April 2016 vs April 2017) to buy?  $123,944 in median price.  $9,026 per year in payment.

Bellevue News May 24, 2017

Meydenbauer Bay Park construction has begun

Meydenbauer Bay Park construction

The City of Bellevue has started the construction of Meydenbauer Bay Park. We’re excited to see how it would improve the connection between Bellevue’s bustling downtown and its scenic Lake Washington waterfront.

With a quarter mile of waterfront, the 10-acre park considerably expands the current Meydenbauer Bay Beach Park. A large public swimming beach, pedestrian pier, historic whaling building and new beach house will make the park a destination for residents and visitors.

Rendering of Meydenbauer Bay Park

“We are one step closer to fulfilling a 30-year council vision,” said Mayor John Stokes. “This project is a testament to the patience and tenacity of city leaders who wouldn’t give up on their dream of increasing waterfront access and connections to the heart of our city.”

Key elements of the project include:

  • Relocation and expansion of the public swimming beach
  • Construction of a new beach house with restrooms and showers
  • A curvilinear pedestrian pier and hand-carry boat launch
  • Pedestrian, pathways and picnic areas
  • Remodeling the historic Whaling Building to include accessible restrooms, a small meeting room and boat rentals
  • Shoreline restoration to improve ecological functions
  • Parking and overlooks

Meydenbauer Bay, the site of a small village in the early 1900s, has a rich history. From 1914 to 1952, the inlet was the off-season home to a whaling fleet that plied Puget Sound.

The new park responds to the community’s long-held interest in additional public water access. Despite Bellevue’s 14 miles of shoreline along Lake Washington and Lake Sammamish, total shoreline in public ownership is limited to approximately 1.6 miles, or 12 percent, with the majority along Lake Washington.

IMCO General Construction will work primarily west and northwest of 99th Avenue Northeast to connect with and expand the existing park between Lake Washington Boulevard and the Meydenbauer Bay shoreline. Meydenbauer Beach Park will be closed during the project, and the Bellevue Marina will remain open.

Construction is expected to be completed in late fall 2018.

This article was first released by City of Bellevue.