Home Improvement • Homeowner News • September 9, 2013

7 Things New Homeowners Don’t Know They Need to Do

by Debi Bloomquist

Date: July 19 2013 | Author: Brian | brightnest.com

Your first year as a homeowner is kind of like the first year of a marriage. There’s the honeymoon phase, where the fact that you never have to pay rent again feels freaking awesome, but there are also a bunch of new responsibilities. You’re building a foundation that will last for decades to come, and small decisions can have large effects on the rest of your life.

People love to give relationship advice, but your friends and family may not be rushing to share tips on being a new homeowner. So, we’re going to help you out. Here are seven things to do during your first year of homeownership:

1. Prepare for breakage. Being your own landlord has a lot of perks (you can kiss that whole “no pets” policy goodbye!). But it’s less exciting when your dishwasher craps out and you have to foot the bill. You can’t stop things from breaking, but you can set some cash aside to pay for unexpected replacements. As a general rule of thumb, you want to save 1-3 percent of your home’s initial price each year so that you can afford unexpected problems.

2. Form an inspection habit. Detecting certain issues early (like a rodent infestation or mold growth) can be the difference between a simple fix and an unaffordable disaster. Take the time to properly inspect your basement, attic, insulation and roof at least once during that first year. Then, make an annual habit of it!

3. Buy a bunch of furnace filters. Changing your furnace filter regularly is one of the easiest ways you can save money (since your furnace will last longer) and improve your health (since the air you breathe will be cleaner). But remembering to pick up a filter from the hardware store every few months isn’t always so easy. Nip that problem in the bud by purchasing in bulk! Take a look at your furnace and write down the filter size, then order enough to last for a few years (the exact number you need will vary depending on the type of furnace you have). Tip: Need help remembering when it’s time to change them? Sign up for BrightNest and we’ll send you regular reminders.

4. Get to know your appliances. Just like cars and televisions, the appliances in your home have different life expectancies. For example, furnaces usually last for 15-20 years, but water heaters tend to start wearing down after 10 years. It’s worth figuring out how old each appliance in your house is because then you can plan ahead for their replacements. A new furnace can cost as much as $5,000, so a little heads up can really help!

5. Take advantage of tax credits. Owning a home opens up a whole new world of tax incentives! For example, you can receive credits for things like installing solar panels or purchasing Energy Star appliances. Do some research early on about the different tax credits that may apply to you, and then reap the benefits when tax time rolls around! Tip: In general, your taxes will be much more complicated now that you own a home. It may be worth hiring a professional accountant (if you haven’t already) to guide you through the process.

6. Start keeping records. Every improvement or repair you make to your home – from adding caulk around your bathtub to installing a new roof – will increase its resale value. Make sure all of your hard work pays off by keeping track right from the start! Tip: If you’re not crazy about creating an enormous filing cabinet of records, BrightNest members can store their home details online (for free!) in the Homefolio.

7. Beef up your insurance. Your new home is probably the most valuable thing you own, and you need to protect that asset! Take a good look at your homeowners insurance policy and look for any relevant gaps (this is a situation where professional advice can be really helpful). Two areas of coverage to consider are flood and fire protection, which aren’t always included in standard policies. Tip: It’s also worth taking another look at your car insurance because you now have a much bigger asset (your home) to lose in the event of a lawsuit.

This list is a great start, but there’s still plenty to do! For more simple, important tasks to tackle during that first year, check out BrightNest’s New Homeowner Guide.

Home Improvement • Homeowner News • September 6, 2013

September home-maintenance checklist

by Debi Bloomquist

School is back in session and mornings are crisp, making this a great month for tackling home projects.

By Anne Erickson of MSN Real Estate

Ever wake up in early September and notice that the air smells different? School begins, days get shorter, and a sense of responsibility begins to creep up on most of us.

We've always wondered why "fall cleaning" isn't as popular as "spring cleaning." The air on brisk September mornings inspires us to dutifully button up the home in preparation for cooler days and longer nights.

Add weatherstripping to doors and windows
Weatherstripping can be plastic, foam, felt or metal; its job is to seal small gaps, keeping moisture and cold air outside where they belong. Look around your doors and windows: Is the weatherstripping torn or missing? This can become expensive if ignored. On doors, make sure the bottom seal is working properly — there are many sweeps, gaskets and thresholds designed to seal this gap. Doors generally need weatherstripping in their jambs as well. Adhesive-backed foam pads are easy to install for this purpose. Newer, energy-efficient windows generally don't require added weatherstripping, but if your windows are older, weatherstripping can keep drafts at bay and energy costs down.

Check storm windows
If you have storm windows that are cracked or dirty, repair and clean them now — prior to autumn installation.

Fight winter with plywood
Find a couple of scrap sheets of plywood and set them aside. When the weatherman predicts a cold snap, set the boards against the exterior basement vents on whichever side of your house bears the brunt of your prevailing weather patterns. This bit of scrappiness could help prevent frozen pipes. Be sure to remove the boards once the weather warms up — those vents are there for a reason.

Insulation speculation
This is a good time to check the condition of insulation and see if you need more, especially if you live in an older home. You can purchase unbacked or loose-fill insulation if you are just beefing up what is already there. If you are adding batted insulation to a spot that has none, remember that the foil-backed side is the vapor barrier, and it must face the heated area.

For example, if you are laying fiberglass insulation in an unfinished attic floor to keep heat in the living room below, you should see pink when you're done — not foil. If your walls lack insulation, consider having a professional install blown-in insulation foam. The energy savings will probably offset the cost of the procedure in a couple of years.

Check gutters
Do a quick visual check to make sure gutters are clear — they'll be performing double duty soon with rainstorms and falling leaves.

Keep mice out
September inspires nesting in mice as well as humans. Mice are looking for a winter home now, and that newly insulated attic would be just the spot. Mice can s

queeze through quarter-inch openings; rats need a half-inch. Make sure all exterior vents are screened, and that there are no gaps underneath garage doors. If you are careless about leaving doors and windows open this time of year, you'll be setting mousetraps later. Pet doors are another favorite access point for rodents.

Caulk exterior
Think of caulk as weatherstripping in a tube. Any gap on the outside of your home can be a candidate for caulking. Look at transition spots: corners, windows, doors, areas where masonry joins siding, or places where vents and other objects protrude from walls. Carefully read manufacturer's directions to make sure the caulk you buy will work where you plan to use it, and don't forget to purchase a caulking gun. Early fall is a good time for this task because caulk becomes difficult to apply when the temperature falls.

Got wood?
If you have a wood stove, it's not too early to lay in a supply of firewood. Though most of us buy whatever's local, bear in mind that soft woods like fir and cedar burn faster and create hazardous creosote in the chimney, thus requiring more system maintenance and more wood. Hardwoods such as oak, hickory and maple are slow, hot, clean burners. Wood piles attract insect and animal pests, so stack wood away from the house. Wood dries best when it's protected from rain and has air circulating around it, so under the roof of a wall-less carport would be an ideal wood storage spot.

Clean dryer vent
This is another one of those tasks that should be on your to-do list every six months. Scoot your clothes dryer away from the wall, unplug it, and vacuum behind it. (If it's a gas dryer, turn off the gas supply to the dryer at the appliance shutoff valve.) Unhook the tube that leads to the vent and clear as much lint from the tube as you can. Grab a shop vacuum, go outside, and tackle the outside dryer vent as well.

Inspect your roof and chimney

If your roof isn't too steep, and isn't covered with slate or tile, you may be able to carefully walk on it on a dry day. Look for broken or missing shingles, missing or damaged flashing and seals around vent pipes and chimneys, and damage to boards along the eaves. Also peer down your chimney with a flashlight to make sure no animals have set up house in it. If you can't get on your roof, perform this inspection with a ladder around the perimeter. Pay close attention to valleys and flashings — many leaks originate in these spots. Some patches and roofing cement now can prevent thousands of dollars of water damage later in the winter.

Economics • Real Estate • September 5, 2013

Washington home prices up more than 12% in a year

by Debi Bloomquist

by Ben Miller Contributing Editor – Puget Sound Business Journal

Home prices in Washington state have risen 12.4 percent in the past year, which mirrors the national average.

According to property information company CoreLogic Inc., single-family home prices in both Washington state and nationwide, including distressed sales, increased 12.4 percent on a year-over-year basis in July 2013 compared with July 2012.

Excluding distressed sales, single-family home prices increased 12.7 percent in Washington state.

According to CoreLogic, including distressed sales, the five states with the highest home price appreciation were: Nevada (up 27 percent), California (up 23.2 percent), Arizona (up 17 percent), Wyoming (up 16.4 percent) and Oregon (up 15 percent).

News For Seniors • September 4, 2013

Is Assisted Living Right for Your Aging Loved Ones?

by Debi Bloomquist

Posted in Selling by Regina Madiera-Gorden

Making a decision about whether assisted living is right for your loved ones is one of the hardest decisions we face today. Over the years I have worked with many adult children and their parents as they prepare to make the decision about when the parents should sell their family home.

I have learned that fully assessing the situation and communicating openly with your parents is the best way to begin. I advise my clients to go through the following questions as they weigh this difficult decision.

Is Your Parent Ready for Assisted Living?

Ask Yourself These Questions

Is your parent telling you that he is eating, but you're seeing food go bad in the refrigerator?
Is your parent falling? To determine the answer, is your parent covering up bruises he or she doesn't want you to see?
Is your parent wearing the same clothes when you go to visit? Can they bathe themselves, groom adequately and launder clothes?
When you look around the house or yard, is it as neat and clean as it used to be?
Is your aging parent remembering to take medications correctly, with the right dosages and at the right time? Are medications expired?
Are they able to operate appliances safely? Do they remember to turn appliances off when they finish cooking?
Is the home equipped with safety features such as grab bars and emergency response systems?
Do they have a plan in place to contact help in case of an emergency?
Are they driving? Should they be driving? Do they have alternate means of transportation?
Are there stacks of papers and unpaid bills lying around?
Do they have friends, or are they isolated from others most of the time?
When you really look at your parent, do you see the bright and vibrant person from years ago, or do you see a more limited person who needs some help one hour a day, or even around the clock?

If you answered yes to even a couple of these questions, your parent may be ready for an assisted living facility.

I know from my personal and professional experience that many children and grandchildren dread this conversation with their aging loved ones. But it’s so important to sit down and talk with them before a crisis hits, when decisions can be discussed and all options considered.

As you probably know, the process of selling a cherished family home and deciding where to live late in life can often span a few years. I have been called upon to help with this complex moving process many times over the years and I now have a deep appreciation and understanding of the emotional needs of senior adults and their families during the process, as well. When the time comes for you to begin working through this process with your parents, contact an agent who specializes in the unique needs of seniors.

For more information and to contact a Windermere Senior Transitions Specialist, please visit: http://windermeretransitions.com/

Homeowner News • News For Seniors • August 29, 2013

Electronics Recycling Event

by Debi Bloomquist

Getting your home ready to sell? Have some new electronics and need to throw out the old? We are teaming up with 1 Green Planet to offer FREE recycling to our friends and customers. Saturday, September 7th from 10 am to 2 pm. Windermere Real Estate/M2, LLC parking lot 9502 19th Ave Se, Everett.

We'll be serving coffee, muffins and snacks and will gladly accept non-perishable food items or cash donations for our annual local Realtor Food Drive.

Hope to see you there!

Debi

Economics • August 28, 2013

Massive rent increases to continue

by Debi Bloomquist

The average annual increase of 3.9% is outpacing inflation and income growth. Will renters be priced out of many cities?

It's no secret renters have been feeling the crunch of a competitive rental market for a few years now. If it seems like rent increases have been unusually high this year, though, that's because they have been.

In June, the real-estate data firm Trulia analyzed the rent prices in 25 of the largest rental markets in the United States. What Trulia found is an average annual increase of 3.9%. This is a huge increase when compared with inflation. And, generally speaking, incomes are not keeping pace with rent increases, putting renters in an even tighter position.

According to Trulia, the five least-affordable rental markets in the country are New York City, Miami, Los Angeles, San Francisco and Boston. In these cities, rents often make up half or more of a renter's average monthly wage.

The cities that experienced the highest rent hikes for 2012-13 were Houston, Miami, Boston, Tampa-St. Petersburg, Fla., and San Diego. Some cities, such as Houston, already had lower rents than the national average for major cities, whereas in others the increases came on top of already higher-than-average rates. For instance, Boston — already one of the most expensive cities in the country — saw a 5.5% increase in rents this year.

It would seem the recent rent increases are an enduring ripple effect of the foreclosure epidemic that catalyzed the Great Recession, flooding the market with prospective renters. At the same time, the gradual economic recovery has resulted in rising employment rates. With a shortage of available rentals, landlords are in the enviable position of being able to name their price and have their pick among tenants willing to pay it.

In their most recent survey, the apartment-research firm RealFacts found not only that rents are up nationwide in 39 of the 41 markets analyzed but that these increases also occurred even in cities that are building rental units at a precipitous pace.

In particular, Seattle experienced a large rent increase this past year despite a projection that 12,000 rental units will be added to the market by the end of the year. Portland, which also experienced an impressive increase in average annual rents, did so even as 4,000 units were added in the city. In fact, Portland saw its occupancy rate jump a full percent this past year. San Francisco, which has also added thousands of units recently, saw an occupancy rate increase of 1.2%.

"So far, it appears aggressive rent hikes and new construction hasn't had a negative impact on occupancy rates," according to the RealFacts report.

Though there seem to be no signs of rent increases slowing down, the report warned that the market will soon become oversupplied: The increased availability of new rentals, coupled with the rise in interest rates, will eventually lead to a downturn in the rental market.

Additionally, more people will turn to buying as an affordable alternative. That's because even though home prices rose 7% in the past year, outpacing rent increases, the gap between buying and renting is still quite large.

Forbes reported this year that buying is much more affordable than renting in all of the 100 largest metro areas in the nation. According to mortgage lender Freddie Mac, buying is an average of 41% cheaper than renting nationwide.

But buying is only slightly cheaper in some cities and drastically cheaper in others. For example, buying is 19% cheaper than renting in San Francisco but 70% cheaper in Detroit. In New York, buying has remained 26% cheaper for the past couple of years.

Despite the regional fluctuations in price, though, it looks as though buying will be the cheaper option for some time to come no matter where you live. That is because 30-year fixed rates on home purchases would need to reach 10.5% to become the more expensive option. The rate is at 4.4%, as of the week of Aug. 14.

RealFacts predicts that in 2014 or 2015, rent rates will begin to stall as the rate of homeowners rise and renters decline.

Until then, renters will have to grit their teeth and wait it out — or start shopping around for their own home.

News For Seniors • August 26, 2013

Is It Time to Sell Your House?

by Debi Bloomquist

By Tom Sightings

August 13, 2013

For many reasons, a lot of baby boomers have been delaying retirement. One reason is that we have been unable to sell our homes. We've been trapped in our old houses, in our old, high-tax communities, handcuffed to our jobs by a lofty cost of living. We couldn't afford to retire until we could move to cheaper digs.

But now the real estate market is improving. According to the Standard & Poor's/Case-Shiller home-price index, the number of existing homes sold is up more than 8 percent from a year ago, and average prices have climbed 12 percent since this time last year.

In some markets, such as Dallas and Denver, prices have regained all of what they lost during the Great Recession. Even in Detroit, prices are up by a third from the bottom (although still well below their peak in 2005).

Now the question is: If you can finally sell your home and move to the retirement destination of your dreams – whether across town or across country – should you rent your new place, or should you buy again?

Let's remember that despite the lousy real estate market of the recent past, most boomers have made a lot of money owning their own homes over the past 30 years. For most of our lives – and our parents' lives before us – owning a home was the American dream. A house centered you in a stable community, provided a school for your kids, and in the long run, was a good financial decision as well. The mortgage and taxes were subsidized by the tax code, and the value of your house increased — some years more than others, but except for a few brief recessionary periods, always on an upward trajectory.

The rule of thumb was that it was better to own than to rent, as long as you planned to stay in your house for at least five years.

But that was then. What about now? What we've all learned since 2006 is that owning a home can be an albatross as well as an opportunity. Many people now seem more interested in mobility than stability. You can't retire and you can't take that new job if you can't sell your house. And maybe you just no longer want the responsibility of taking care of a lawn and doing maintenance on the roof and the plumbing and the heating system.

Many of us know – and are a little jealous of – a friend or relative who was renting an apartment or a condo and was able to take a new job or jump on an early retirement package, then wave goodbye and start the new life they wanted.

Now that we homeowners have the chance to move, do we really want to be saddled with another place we may not be able to sell? Especially in a volatile market like Florida or Nevada or Arizona?

Certainly, if you're experimenting with your retirement, shopping for a new place to live, you should not buy a place right away. Remember, buying and selling a house costs a lot of money – not just the down payment, but the mortgage, the lawyer, the insurance and taxes.

If you're not sure, rent for a year or two. But eventually, you'll probably begin to feel like you're "throwing away" all that rent money, contributing to the wealth of your landlord rather than building your own equity. The people in your complex are transient, and while you might not have to worry about maintenance, you might find your landlord often does a "quick fix" instead of doing the job right. Plus, maybe you want to put your own stamp on a place – fix up the kitchen the way you want it, rather than the way the landlord has it.

Also, be careful: You might find that you need to buy a place quick, before prices run up again and leave you behind, unable to afford what you'd like.

Above all, the choice of whether to rent or buy is a lifestyle decision. What kind of home and neighborhood you want to live in, whether you want to feel like a part of the community and how long you are you going to stay there. In other words, the new rule of thumb is the same as the old rule of thumb. Rent if you're going to be moving on. Buy if you want to settle down and stick around for at least five years.

Tom Sightings is a former publishing executive who was eased into early retirement in his mid-50s. He lives in the New York area and blogs at Sightings at 60, where he covers health, finance, retirement and other concerns of baby boomers who realize that somehow they have grown up.

Economics • Real Estate • August 20, 2013

Moving Up? Do It Now!!

by Debi Bloomquist

by THE KCM CREW on AUGUST 5, 2013

Print New reports are revealing that the number of existing home ownerspurchasing a house is beginning to increase. Some are moving up, some are downsizing and others are making a lateral move. Another study shows that over 75% of these buyers will, in fact, be in that first category: a move-up buyer. We want to address this group of buyers in today’s blog post.

There is no way for us to predict the future but we can look at what happened over the last year. Let’s look at buyers that considered moving up last year but decided to wait instead.

Assume they had a home worth $300,000 and were looking at a home for $400,000 (putting 10% down they would get a mortgage of $360,000). By waiting, their house appreciated by 12% over the last year (national average based on the Case Shiller Pricing Index). Their home would now be worth $336,000. But, the $400,000 home would now be worth $448,000 (requiring a mortgage of $403,200).

Here is a table showing what additional monthly cost would be incurred by waiting:

Move up

If your family sees yourself in this situation, it may make sense to move now than later. Prices are definitely appreciating and interest rates are beginning to rise.

News For Seniors • August 13, 2013

Windermere Launches Customized Program Focused On Supporting Growing Senior Population

by Debi Bloomquist

Posted August 9 2013, 10:00 AM PDT by Shelley Rossi

Two years ago, the oldest members of the Baby Boomer generation turned 65, and over the next 18 years, 79 million more will do the same. These seniors are projected to move out of an estimated 11.3 million housing units through 2020 creating what is known in the real estate industry as the “silver tsunami”. These generational trends have inspired the creation of Windermere Senior Transitions; a new program made up of Windermere agents who are specially trained to understand the unique needs of clients aged 65 and older.

The Windermere Senior Transitions program focuses exclusively on helping seniors through the transition of downsizing from their existing residence into a smaller home, condominium, or an assisted living facility or retirement community. This process can be very complicated and emotional for many seniors and requires the support of someone who is trained to navigate this transition. These home owners often have needs that extend far beyond a traditional real estate transaction and may require assistance with finding resources for everything from healthcare and legal services to financial planning, estate sales, and downsizing services.

Mary Benz, Director of Sales and Marketing at Chateau Retirement Communities in Seattle believes that the agents who are a part of Windermere’s Senior Transitions program “Provide a critical need for seniors facing the overwhelming task of downsizing and making a move that marks a milestone for them. These dedicated agents have received additional certification to work with the senior population and have reached out to form relationships with various agencies involved in all aspects of downsizing and moving.”

There are several criteria agents must meet in order to become a certified Windermere Senior Transitions Specialist, including completion of an internal training course entitled “Intro to Senior Transitions”. They must also earn the national Senior Real Estate Specialist designation (SRES) which certifies that agents have demonstrated the necessary knowledge and expertise to counsel seniors through major financial and lifestyle transitions in relocating, refinancing, or selling the family home. In addition to this, agents must close a minimum of three “senior” transactions on an annual basis, as well as sign the Windermere Senior Transitions “Standards of Practice” contract which requires agents to abide by a strict code of ethics specific to senior-aged clientele.

For more information, please visit the Windermere Senior Transitions website: www.windermereseniortranstions.com.

Economics • Home Finances • Real Estate • August 1, 2013

Selling a House? Don’t Overprice It

by Debi Bloomquist

by THE KCM CREW on JULY 15, 2013 ·

in FOR SELLERS, PRICING

There is no doubt that the housing market is coming back nicely. What, if anything, could slow down the current momentum? We believe it may be sellers’ over exuberance when it comes to pricing. There is little doubt that house prices have appreciated over the last twelve months in most regions of the country. However, with both the inventory of homes for sale and interest rates increasing, we have to be careful to not over judge what the market can bear.

Trulia just reported that asking priceshave jumped dramatically and the increase is accelerating:

Year-Over-Year prices jumped 10.7%
Quarter-Over-Quarter prices jumped 4.1% (16.4% annualized)
Month-Over-Month prices jumped 1.5% (18% annualized)

No expert is expecting home prices to shoot up 18% in the next twelve months. If anything, price appreciation may slow as rates and inventories increase. Investors will begin to slow their purchases and the first-time buyers expected to take their place will be working within a pre-set budget in many cases.

Buyers’ Purchasing Power

Let’s look at an example: A young couple is looking for a home and have predetermined that their budget will only allow them to spend $1,000 a month on a mortgage. At today’s mortgage rate of 4.5%, they could afford a $200,000 mortgage ($1,013 principal & interest). However, if rates jump to 5%, they would have to lower their mortgage amount to $190,000 in order to keep their monthly payment where they need it ($1,020). At 5.5%, the mortgage would need to be no more than $180,000 ($1,022).

The Impact on Prices

This decrease in buyers’ purchasing power will have an impact on home values going forward. We do not believe it will cause a decrease in prices. However, we do believe it will likely cause current rates of appreciation to slow.

If you are thinking about selling your home, don’t get carried away with current headlines about home price increases that have taken place over the last twelve months. Instead, call a local real estate professional. They will be best prepared to explain where prices are headed over the next six months.