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A Consumer’s Guide to Homeowners Insurance
If you’re a homeowner or looking to buy a home, insuring your property is critical to protecting your investment—and if you’re getting a mortgage, it’s a must. It can be daunting trying to navigate the many options available to you. What does your policy cover…and what isn’t covered? What does the insurance company provide if your property is damaged or destroyed? Recently, the National Association of REALTORS® released this helpful guide on understanding the ins and outs of homeowners insurance. Here is a quick rundown of what you need to know…
How does property insurance work?
For certain unexpected events that cause a loss to your home or property, homeowner’s insurance can cover the cost to repair/rebuild the property and other structures like fences or garages. Most policies also cover personal belongings within the home, legal/medical fees for accidents occurring on the property, and temporary housing if a covered event (like a house fire) makes your home uninhabitable.
What losses are covered?
Your insurance policy will list the specific “perils” that are covered. The most common type of policy covers both the structure and personal assets for losses from house fires, storms, freezing, theft, vandalism, and sudden plumbing bursts—this is known as a HO-3 or “Special Form” policy. Most policies don’t cover earthquakes or natural floods (although you can get additional policies for those perils).
Is insurance required?
There are no laws requiring you to maintain homeowners insurance. However, most lenders require it for the duration of your mortgage. Required or not, it’s generally a good idea to protect your assets (especially if you have a lot of equity in your home).
What is the cost, and how is it paid?
As with many costs, insurance premiums are on the rise throughout the country (here’s how much, where, and why). Your individual policy’s cost will be based on your home’s age, size, condition, location, and other factors like whether you have a security system or have added on additional coverage. You may have the option to pay the premium annually or break it into smaller payments. If you have a mortgage, the lender usually collects a monthly “escrow” payment that they keep in an account to pay the insurance premiums and property taxes from on your behalf.
What happens in the event of a loss?
Most insurers will cover “replacement cost”—the amount needed to buy a new, comparable version of what you lost up to a dollar limit specified in the policy. It’s important to understand that replacement cost is not the same as market value; you’ll be compensated for the actual cost to repair/rebuild/replace your home regardless of what you paid for it or what you could sell it for. Typically the insurer will reimburse you to have your home repaired or replaced with comparable quality if it’s insured to at least 80% of it’s replacement cost, less any deductible that your policy has.
Alternatively, “actual cash value” is the current value of an item that depreciates over time or with use (often used for replacing personal or under-insured property). For example, if you paid $2,000 for your new couch but now it’s only worth $1,000 due to normal wear and tear, your insurer will only pay $1,000 less the deductible. You may choose to upgrade your personal property coverage to replacement cost instead for an extra fee.
For extra peace of mind, you can also purchase an extended replacement cost policy that provides extra coverage up to a set percentage above the policy limit. This can protect you if your home costs more than anticipated to rebuild.
Are the premiums tax deductible?
The short answer is no, unless you run a business from your home or it’s a rental property. However, you may be able to claim a casualty loss deduction if you suffered a loss due to a federally declared disaster (but check in with your tax pro for advice specific to your situation).
Because laws vary from state to state, it’s important to do your homework if you’re purchasing a home in an unfamiliar area. Connect with a real estate agent or your attorney for advice.
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Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2025, Windermere Real Estate/Mercer Island.
Is Downsizing Right for You? Here’s How to Decide
Choosing to downsize is more than just moving into a smaller space, it’s about curating a simpler lifestyle that fits your current needs. Whether you’re retiring, looking for an eco-friendly, low-maintenance home, or wanting a fresh start after your children have moved away, downsizing might be the best option for you. Before making the move, here’s everything to consider.
Why Downsizing Could Be the Right Choice
Increased Cash Flow & More Financial Flexibility
Downsizing can offer significant financial benefits, starting with a smaller mortgage, which frees up extra cash for other needs or desires. Home insurance costs also tend to be lower, as the size of the home typically influences insurance premiums. Downsizing to less square footage can also lower property tax bills. Finally, a smaller home also leads to decreased utility bills, as the cost of heating and cooling a smaller home requires less energy expenditure.
More Time, Less Maintenance & Stress
Bigger homes call for more maintenance. Downsizing can help cut down time spent on household chores such as cleaning and vacuuming, which will give you more hours to do something more enjoyable. Homeowners who have successfully downsized often feel happier because they are no longer overwhelmed by the demands of a larger home. Less responsibility, less housework, increased cash flow, and flexibility equals reduced stress.
A Greener Lifestyle
After downsizing, homeowners commonly buy less since they don’t necessarily have the room for it. Reduced consumption not only leads to a more minimalist lifestyle but also cuts down on waste. Less waste plus less energy expended to heat and cool the space means a smaller environmental footprint and keeps your home green.
What You Might Miss When Downsizing
While moving into a smaller space has benefits, there are trade-offs to consider. A smaller home means less storage space, meaning you’ll need to give away or donate furniture, books, kitchen supplies, and other belongings that may not fit. Less space and fewer rooms can also make the home feel cramped, especially if you’re a long-term homeowner used to larger square footage.
Remote work may also become more challenging in a downsized home. Finding a quiet, dedicated workspace can be difficult, and close quarters may make it harder to stay productive. Additionally, hosting overnight guests or bigger holiday dinners might be out of the question for a smaller home. Adjusting to a downsized lifestyle can take time for those accustomed to more space, requiring new habits and a fresh approach.
Questions to Ask Before Making the Move
Before downsizing, it’s crucial to reflect on how less space in your home will impact your lifestyle. Think about your attachment to your current home’s size. Do you need extra rooms for guests or a second bathroom for convenience? Will moving into a smaller home feel too much like a step backward? Or will it bring the sense of freedom and simplicity you’ve been looking for? Ask yourself these important questions to ensure you’re making the right choice:
- What are my must-haves in a smaller home? Think about what you might miss from a more spacious home, or factors like location, accessibility, and storage solutions.
- How will my daily routine change? Consider how a smaller space might impact your hobbies, work setup, or ability to entertain.
- Does this move align with my long-term plans? Imagine the next 5, 10, or even 20 years, and start to question if a smaller home meets your future needs.
- How much will it cost to downsize? Factor in moving expenses, costs associated with selling, new furniture purchases, and the amount it will cost to store or sell belongings you no longer have space for.
- What will I do with sentimental or bulky items? Consider whether you’ll keep, donate, sell, or store them, and how much space you’re willing to dedicate to cherished belongings.
If you believe downsizing is the right option and are ready for the next step, you’re probably asking yourself, “Should I sell first or buy first?” When you’re prepared to discuss your options, connect with one of our local Windermere Mercer Island agents for expert advice:
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
This article originally appeared on the Windermere Blog.
Selling Your Home: 5 Common Myths
Selling your home is a crash course in real estate education. You’ll learn how to work with your real estate agent to find a buyer and sell at the right price. As you prepare to sell, it’s important to remember that that not everything you’ve heard is true. There are several common myths that can lead to costly mistakes in the selling process. Knowing the truth behind them will clarify your selling journey and help you align your expectations…
Myth 1: Home Value Calculators Are 100% Accurate
Online Automated Valuation Models (AVMs) are a great starting point for understanding how much your home could be worth. However, they are merely a first step in determining home value; to say they are 100% accurate is a myth. When it comes to pricing your home, you need to rely on your real estate agent’s Comparative Market Analysis (CMA), which uses vast amounts of historical and current data on real estate listings to arrive at an accurate and competitive figure.
To get an estimate of how much your home is worth, try our Home Worth Calculator here:
Myth 2: Selling FSBO Will Save You Money
Selling a home requires an intimate knowledge of the housing industry and how to solve the complex situations that arise throughout a real estate transaction. Despite this, some sellers will go it alone and attempt to sell their property without being represented by an agent.
Selling For Sale by Owner (FSBO) is a risky proposition. It requires the seller to bear added liability, fills their schedule with various marketing and promotional responsibilities, and can leave money on the table by inaccurately pricing the property, causing it to sit on the market for too long. The potential costs of selling a home on your own far outweigh the compensation real estate agents earn on a home sale.
Myth 3: You Must Remodel to Sell Your Home
The question you’ll face when preparing to sell your home is whether to sell as is or remodel. The answer usually lies somewhere in between, but it depends on your situation and what kinds of home upgrades are driving buyer interest locally. When making improvements to your home, lean toward high ROI remodeling projects to get the best bang for your buck, and avoid trendy projects that can delay listing your home. If you’re considering major upscale renovations, talk to your agent about which projects buyers in your area are looking for.
Myth 4: Never Accept the First Offer
You’ve likely heard tell that the first buyer’s offer is nothing more than a springboard to up your asking price and to never accept it. In this case, “never” should be approached with caution. In reality, the best offer for your home is one that you and your agent have discussed that aligns with your goals. If a matching offer happens to be the first one that comes your way, so be it. The market can shift at any time, so you never know what may happen if you leave an offer on the table. And if the buyer backs out of the deal, you and your agent will find a path forward.
Myth 5: Home Staging Doesn’t Make a Big Difference
Staging your home is so much more than a cosmetic touch-up; it has been proven to help sell homes faster and at a higher price than non-staged homes.1 Staging ensures that your home has universal appeal, which attracts the widest possible pool of potential buyers. When buyers are able to easily imagine living in your home, they become more connected to the property. You should stage your home regardless of your local market conditions, but it can be especially helpful in competitive markets with limited inventory where even the slightest edge can make all the difference for sellers.
Now that you know some of the most common myths in the selling process, get to know its truths. Connect with a local Windermere agent to get the process started:
1: National Association of REALTORS® – Why Home Staging Inspires the Best Prices in Any Housing Market
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
This article originally appeared on the Windermere Blog, written by: Sandy Dodge.
Buying a Fixer-Upper
For some homebuyers, a fixer-upper is their idea of a dream home. However, the process of buying a fixer-upper comes with additional responsibilities compared to properties in better condition or new construction homes. Preparing for the process comes down to creating a remodeling plan, knowing what to look for when searching for listings, and understanding what financing options are available.
Planning for a Fixer-Upper
Fixer-uppers require a future-oriented mindset. Knowing the magnitude of the projects you and your household are willing to take on will help to form your budget and your expectations as time goes on. With some basic cost analysis for any given project, you’ll have to decide whether it’s worth it to buy the materials yourself and do it DIY or hire a professional. When testing the waters for professional remodeling, get specific quotes so you can compare costs between contractors. Understand that in addition to the down payment and closing fees, the costs involved in a fixer-upper purchase have the potential to go over-budget easily. Familiarize yourself with permitting in your area to understand how to navigate any legal roadblocks in the renovation process and to better assess your timeline for your home improvement projects.
Searching For a Fixer-Upper
- Location: Whether you are purchasing a fixer-upper with plans to sell it, rent it out, or live in it, consider its location before purchasing. If you’re planning on selling or renting, location is one of the most important factors in making a return on your investment. And if you’re planning to live in your fixer-upper, keep in mind that location will be a large part of your experience in the home. If you’re looking to sell eventually, talk to your agent to identify high ROI remodeling projects that will pique buyer interest in your area.
- Scope of Renovation: If you are looking for a smaller scale renovation, look for listings that require cosmetic projects like new interior and exterior paint, fresh carpeting and flooring, appliance upgrades, and basic landscaping maintenance. More expensive and involved projects include re-roofing, replacing plumbing and sewer lines, replacing HVAC systems, and full-scale room remodels.
- Inspections: Beyond a standard home inspection, which covers components of the home like its plumbing and foundation, consider specialized inspections for pests, roof certifications, and engineering reports. This will help differentiate between the property’s minor flaws and critical problems, further informing your decision when it comes time to prepare an offer.
Financing Options
You’ll be looking at different types of mortgages when buying a fixer-upper, but keep in mind that renovation loans specifically allow buyers to finance the home and the improvements to the property together. Extra consultations, inspections, and appraisals are often required in the loan process, but they help guide the work and resulting home value. Talk with your lender about which option is best for you.
- FHA 203(k): The Federal Housing Administration’s (FHA) 203(k) loans can be used for most projects in the process of fixing up a home. In comparison to conventional mortgages, they may accept lower incomes and credit scores for qualified borrowers.
- VA renovation loan: With this loan, the home improvement costs are combined into the loan amount for the home purchase. Contractors employed in any renovations must be VA-approved and appraisers involved in the appraisal process must be VA-certified.
- HomeStyle Loan – Fannie Mae: The HomeStyle Renovation Loan can be used by buyers purchasing a fixer-upper, or by homeowners refinancing their homes to cover the improvements. This loan also allows for luxury projects, such as pools and landscaping.
- CHOICERenovation Loan – Freddie Mac: This renovation mortgage is guaranteed through Freddie Mac, allowing for the purchase price (or refi) + renovation projects totaling up to 75% of the home’s appraised value. It can even be used to add an ADU for multi-generational families!
If you’re interested in buying a fixer-upper, connect with a local Windermere agent to help you understand the process and to discuss what makes the most sense for you.
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
This article originally appeared on the Windermere Blog, written by: Sandy Dodge.
Understanding Contingent Offers: A Seller’s Guide
With the market shifting toward balance between buyers & sellers, “contingent” is a word sellers will be seeing more of. It’s important to understand the difference between a “contingent offer” and one with “contingencies.” Contingent offers allow the buyer time to sell their current home first before they complete the purchase. On the other hand, an offer with contingencies allows the buyer to cancel the contract with a full earnest money refund if the specified conditions aren’t met—often a satisfactory home inspection or the ability to obtain financing.
This may feel a bit like buyers want to have their cake and eat it too, but every homeowner can understand the desire to protect their investment before fully diving in. In a seller’s market, there are fewer homes available, which means buyers will do whatever they can to make their offer stand out. Because sellers have the leverage in these market conditions, you’ll often see buyers waiving their contingencies. Talk to your agent for more information about the local market conditions in which you’re selling.
Should I accept a contingent offer on my house?
Each home sale is different, and each seller has a unique story. What you’re looking for in an offer may be different from what someone else in your neighborhood is looking for when selling their home. It all depends on your circumstances, your timeline, your next steps, and your local market conditions. The extra stipulations in a contingent offer require the attention of an experienced real estate agent who can interpret what they mean for you as you head into negotiations.
How often do contingent offers fall through?
Contingent offers can fall through more often than non-contingent ones, but there’s no general rule of thumb. Whether a sellers and buyer are able to agree on the terms of a deal is a case-by-case situation. Different contingencies may carry different weight among certain sellers, and local market conditions usually play a significant role. For up-to-date information about your local market, visit our Market Reports page or Trends on our blog.
Pros and Cons of Contingent Offers for Sellers
Pros of Contingent Offers (allowing the buyer to sell their current home first):
- Accepting a contingent offer means you don’t have to take your home off the market quite yet, since the conditions of the deal haven’t been met. If the buyer backs out of the deal, you can sell without having to re-list.
- In certain cases, some buyers may be willing to pay extra to have their contingent offer met even if the home has been on the market for an extended period.
Pros of Offers with Contingencies (such as inspection, title, financing, etc.):
- You’ve got an offer! In a balanced market, one offer with contingencies is still better than no offers.
- It may protect you legally if you give the buyer the opportunity to do all of their due diligence while under contract. It’s harder for a buyer to come back and say something wasn’t disclosed when they had ample time and the contractual right to due diligence.
Cons:
- Home sales with any types of contingencies are usually slower than those without. It takes time to satisfy a buyer’s contingencies and additional time to communicate that they have been met.
- There’s a higher risk that the deal could fall through since the the buyer isn’t locked into the contract until of their contingencies have been satisfied.
As always, trust your agent for guidance when facing contingent offers. Connect with one of our local Windermere Mercer Island agents for expert advice:
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
This article originally appeared on the Windermere Blog, written by: Sandy Dodge.
9 Fun Summer DIY Projects for Your Home
Sun’s out…fun’s out! Our glorious PNW summer is coming in hot with endless opportunities to enjoy the outdoors. Here are some fun and easy project ideas to help you make the most of it!
1. Backyard Movie Theater
Outdoor movies are a great way to enjoy your yard and entertain a crowd (and keep the mess outside, too!). Looking for affordable and easy? You can find portable, outdoor, Bluetooth enabled projectors for under $100; hang up a white sheet or inexpensive screen, grab your portable Bluetooth speaker, and BOOM…it’s movie time. Ready to take the leap and create something more lasting? Here is a great how-to for a wooden frame with pull-down screen + helpful tips for your AV setup.
2. Fire Pit
Who doesn’t love a good s’mores roast? Creating an attractive fire pit may be easier and cheaper than you imagined. One beautifully simple method we love is to create a ring of stacked bricks, stones or cinder blocks on top of a level pea gravel base, then place a store-bought metal fireplace bowl in the center (here is the full how-to). It’s remarkably fast and you don’t even need mortar! You can also go for a modern square look with cinder blocks, use a reclaimed metal receptacle, or find a full kit at the hardware store. Check out this list of 31 DIY fire pit ideas from the Spruce.
3. House Number Planter
Looking to add some instant curb appeal to your home? This elegant, inexpensive design may just be the “WOW!” you’re looking for. Choose modern house numbers for an updated look and then a little wood, some pretty plants, and a couple hours of work is all it takes to make your neighbors jealous.
Photo courtesy of ana-white.com
4. Giant Backyard Jenga
We LOVE this idea for summer BBQs, and it’s so easy! All you need are some 2×3 boards, a miter saw, and sandpaper (or a power sander, if you have one). Bada bing bada boom…jumbo Jenga to entertain kids and adults alike. Here are full instructions courtesy of Her Tool Belt, including the option to go fancy with colors and a DIY carrying crate that also doubles as a stand.
5. Decorative A/C Screen
If you’re lucky enough to have central A/C, you’re also unlucky enough to have an unsightly metal unit sitting in your yard. Fortunately, you can build a simple cover for less than $100 and in less than a day. Here is an easy plan from This Old House, designed with widely spaced slats for air flow and 1 foot of clearance (do your homework on your specific A/C unit before you dive in—you may need to size up). You can paint it to match your house color if you want to go incognito, or stain it for a stylish natural wood look.
Photo courtesy of tarynwhiteaker.com
6. Vertical Garden
Taking advantage of vertical space for planting means that even the smallest of patios can host a garden. It could be as simple as attaching pots to a trellis/rail or framed chicken wire, or something more elaborate like this beautiful living wall by This Old House. Vertical gardens can also double as privacy screens for your yard, porch or patio. Veggie enthusiasts can even build this easy vertical ladder planter with its own drip watering system. For the ultimate quick fix, felt pocket planters offer instant gratification—just attach to your fence or wall, add potting soil + slow release fertilizer + drought-tolerant plants, and water every 2 days. Using freestanding shelves for your container garden is another great option, especially for tenants who need something that is easily removable.
7. Leopold Bench
We love conservationist Aldo Leopold’s simple and iconic wooden bench plan, designed to be used both forward (with a backrest) or backward (where the backrest becomes an elbow rest for using binoculars). Here is a super easy DIY plan with cutting instructions from Construct101. Even amateurs can build this in less than a day, and all it takes are three boards, 6 carriage bolts, and some screws!
Photo courtesy of etsy.com
8. Hose Storage Planter
This ingenious project will boost your curb appeal in two ways, both by being an attractive planter AND by stowing away unsightly hoses in a clever hidden storage compartment. There are a few different styles and plans out there. We like this version from DIY Candy with a hinged front that allows you to access the hose without having to lift up the heavy planter. It can be crafted from a pallet or any other reclaimed wood. The Kim Six Fix also has this version made with cedar fence boards instead.
Photo courtesy of diycandy.com
9. Rain Garden
Did the April showers leave your yard (or basement) a little soggy? Sump pump working overtime? A rain garden is a beautiful way to channel water away from your house while also helping the environment by keeping chemical runoff out of rivers and lakes. The concept is pretty simple: create a below-grade garden bed planted with deep-rooted species that help capture and drain water rapidly into the soil. If you’re serious about improving drainage, you’ll also want either a stone channel or buried PVC pipe to help guide water from your downspout into the garden. Collect some friends to help with the digging! Here are full instructions from the Family Handyman.
If you’re considering selling your home, some of these projects—like planters and vertical garden privacy screens—can help maximize your curb appeal. A rain garden might also be a beautiful solution for drainage issues that need to be resolved before your house can go on the market. Looking for more ideas or advice? Reach out to us any time…we’re never too busy to help!
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2024, Windermere Real Estate/Mercer Island.
Why Buyer Representation Matters So Much to Sellers
In today’s rapidly changing real estate landscape, understanding the critical role of buyer representation has never been more essential for home sellers. With the pending NAR settlement on the horizon, many sellers may not fully grasp the significant impact these changes will have on their transactions. The urgency to adapt is real, and overlooking the necessity of paying a buyer agent compensation could expose sellers to unforeseen risks.
Currently, home buyers are not allowed to roll their buyer agent compensation into their loan. This means they must bring cash to the table to pay their agent (if the seller is not offering buyer agent compensation).
Unrepresented buyers should be considered more than a minor hiccup—it can lead to a cascade of complications that jeopardize the entire deal. To safeguard your investment and ensure a smooth transaction, it’s crucial to recognize the invaluable support a buyer’s agent provides.
What value does a seller receive if the buyer has professional representation? Let us list the ways:
Lender Connections: Buyer agents connect their buyers with well-vetted (and typically local) lender partners who have proven time and again that they can close a transaction, and on time.
Documentation Management: Buyer agents ensure that buyers have delivered all necessary documentation to the lender to ensure full underwriting.
Market Analysis: Buyer agents provide comparable market analysis reports (CMAs) to help buyers understand the market value of the home and support a reasonable offer price.
Contract Guidance: Buyer agents guide their clients through the purchase and sale agreement, ensuring that they understand the terms and conditions and their ability to fulfill their commitments.
Contingency Explanation: Buyer agents explain all contingencies to buyers, ensuring they understand the risks and rewards, especially when waiving contingencies.
Earnest Money Handling: Buyer agents ensure that earnest money funds are delivered to escrow on time.
Transaction Deadlines: Buyer agents ensure that their client and their lender observe and adhere to all deadlines to keep the transaction flowing smoothly and closing on time.
Inspection Access: Buyer agents provide access to home inspectors and help their buyers understand the reports. This is critical as most MLS associations require an agent to be present whenever a door is opened. If the buyer doesn’t have representation, the listing agent must give access, exposing them to inspection findings and forcing them to disclose on behalf of the seller.
Appraisal Assistance: Buyer agents give access to appraisers and typically provide reports of comparable properties to support the purchase price, ensuring the property appraises at value.
Negotiation Support: If the appraisal report comes in less than the purchase price, the buyer agent will help negotiate and collaborate with the listing agent to ensure a mutual agreement is reached by all parties.
Transaction Coordination: Most importantly, the buyer agent helps keep their client and all parties on track to ensure closing, and crucially, on time.
The value a buyer agent brings to the transaction is indispensable. Their expertise not only facilitates a smoother process but also protects all parties involved from potential pitfalls. By ensuring the buyer has professional representation, sellers can avoid significant risks and secure a successful transaction. In the evolving real estate market, investing in buyer agent compensation is a wise decision that benefits everyone involved.
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
This article originally appeared on the Windermere blog on 5/29/24 & Inman News on 5/21/24.
Moving Day: Checklists & Tips to Stress Less
Ah, moving day…that magical mix of excitement, chaos, and occasional panic. Whether it is across town or cross-country, the reality of packing, moving, and setting up a new home can become overwhelming. No list can make a move “stress free,” BUT planning ahead and staying organized can help make your move a little smoother. Here is a printable checklist along with our tips for the big day:
Getting Started
Once you know your prospective move date, set up a quick timeline to make sure you can get all the important tasks done and ready in time for your move.
Consider how much stuff you have by doing a home inventory. This can help you decide whether you need to hire movers to help you or if you will be managing your move on your own. Many moving companies supply inventory lists to help you assess the size of truck you will need. You can use your list as double duty for insurance purposes later (try using this helpful home inventory app from the National Association of Insurance Commissioners).
As soon as you decide how you will be moving, make your reservations. In general, moving companies and truck rental services are over-booked at the beginning and very end of the month. If you are planning on hiring a moving company, contact a few in your area for a price quote. To find companies ask your real estate agent, family, or friends, and consult online reviews. It is also a good idea to request a quote and compare companies.
Preparing for Your Move
- Moving is a great opportunity to get rid of clutter, junk, or outdated items. Set aside some time to sort through your closets, storage spaces, files, drawers, and more. Go through cluttered areas and organize items by “keepers”, “give-aways” and “garbage”. You will have less to pack and an opportunity to update after you move. Contact a local nonprofit organization for your donations; some will arrange to pick up larger donations like furniture. If you have items of value, eBay or craigslist are good options.
- Changing your address is one of the more tedious tasks in the moving process. You will need to change your address with the United States Post Office. You can find the online form here: Movers Guide.
You will also need to change your address with each account you have. Here is a list to get your started:
- Employers
- Bank(s)
- Utilities (Electric, Water/Sewage, Oil/Gas)
- Cable/ Telephone
- Cell phone service
- Credit Cards
- Magazine subscriptions
- Insurance companies (auto, home/renters, health, dental, vision, etc.)
- Pharmacy
- Other personal services
Let the Packing Begin
Before you start packing, it may help to visualize where everything you have will go. Perhaps furniture will fit better in a different room? Consider the floor plan of your new home and figure out what will go where. This will aid in packing and labeling as you box everything up.
Use a tool like floorplanner.com to plan where furniture and items will go.
When it comes to packing you have some options. You can work with a service that provides reusable boxes for moving or you can reuse or purchase cardboard boxes. Make sure you have enough boxes, packing tape, dark markers, and packing paper.
Pack rooms according to your floor plan. Label boxes with contents and room. This will make it easier to unpack your home, knowing where everything is going.
Real Simple magazine has some great tips on packing for your move.
If you have to disassemble any of your furniture, make sure you keep all the parts and directions together. Make sure you set aside your necessities for the day you move. Being tired and unable to take a shower or make your bed can be hard at the end of a long moving day. Here are some ideas of what you may like to pack in your “day-of-move” boxes:
- Clean linens for the beds, pillows and blankets
- Clean towels
- Shower curtain, liner and hooks
- Toiletries, hand soap, tooth brush, etc.
- Disposable utensils, cups, napkins, etc.
- Rolls of toilet paper
- Snacks and water
- Change of clothes
- Tools for reassembling furniture, installing hardware, and hanging photos
Making Your Move
- Come up with a game plan with your family, so everyone has a role and a part to play
- Once the house is empty, do a once over on your old place to make sure it is clean for the next owners/occupants. Here is a useful checklist for cleaning.
Warming Your New Home
Once you have settled into your new home, warm it up by inviting friends and family over to celebrate. Here is a great infographic about housewarming traditions and symbolism. Announce your move to far-away friends and family through moving announcements to make sure you stay on the holiday card mailing list.
Ready to make your move? Connect with an agent to get started.
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© Copyright 2024, Windermere Real Estate/Mercer Island.
Remodeling Projects to Avoid When Selling Your Home
It’s common for homeowners to feel compelled to remodel their homes before they sell. Renovating the spaces in your home can increase its value and help you compete with comparable listings in your area. However, some remodeling projects are more beneficial than others as you prepare to sell your home. Always talk to your agent to determine which projects are most appealing to buyers in your area.
When preparing to sell your home, you want to strike the right balance of upgrades. Making repairs and executing renovations will attract buyer interest, but you don’t want to dump so much cash into remodeling that you won’t be able to recoup those expenses when your home sells.
So, how do you know where to focus your efforts? Your agent is a vital resource in understanding your specific situation and will offer guidance on your remodeling efforts to sell your home for the best price. Here are a few projects sellers will want to keep off their to-do lists for the best return on investment…
Major, Pricey Upgrades with Long Timelines
For any remodeling project, your agent’s analysis will be key to helping you determine its risk/reward potential. This dynamic is especially important for big remodels and home upgrades, due to their higher costs. The latest Remodeling Cost vs. Value Report (www.costvsvalue.com)1 data for the Seattle area shows a generally negative return on investment for major, upscale remodeling projects—they only recouped about 25%-30% of their cost…
These projects come with hefty price tags and longer timelines than minor repairs and upgrades, which can complicate factors as you prepare to sell, especially if you have a deadline to get into your new home. They have the potential to temporarily displace you from the property, meaning you and your household may have to find somewhere else to stay until the project is complete.
The Bottom Line: To go through with a major home upgrade before you sell, its schedule must fit with your moving timeline. It should also align with buyer interest in your local market. If the project doesn’t meet these criteria, it should be avoided.
Non-Permitted Projects & Building Code Violations
Before you decide to finish out the basement or make changes to your home’s wiring/structure/mechanical systems, it is important to make sure you obtain the proper city, county and/or state permits + inspections. Non-permitted square footage does not reflect on the county tax record and can lead to low appraisals when the buyer tries to get a loan. Obtaining permits also helps ensure your alterations meet the current building code—otherwise, you may face legal exposure should they create a safety hazard. Furthermore, any non-permitted remodels must be disclosed to the buyer on your Form 17 if you live in Washington State. The buyer’s mortgage lender may also have stipulations saying that the loan may not be used to purchase a home with certain features that aren’t up to code, which could lead to them backing out of the deal.
If you’re selling an older home, you’re not obligated to update every feature that may be out of code to fit modern standards. These projects are often structural and require a significant investment. If the violation in question was built to code according to the regulations at the time, then a grandfather clause typically applies. However, you’ll need to disclose these features to the buyer.
Trendy Makeovers and Upgrades
Lastly, it’s best to avoid remodeling projects that target a specific trend in home design. Trends come and go. Timeless design is a hallmark of marketable homes because it appeals to the widest possible pool of buyers. Keep this in mind when staging your home as well. Creating an environment that’s universally appealing and depersonalized allows buyers to more easily imagine the home as their own.
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We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2024, Windermere Real Estate/Mercer Island.
1©2023 Zonda Media, a Delaware corporation. Complete data from the 2023 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
Adapted from an article that originally appeared on the Windermere Blog, written by: Sandy Dodge.
Tax Benefits Every Homeowner Should Know About
It’s tax season again, but being a homeowner might just make it rain at refund time. Check out the tax-deductible expenses, exemptions, and credits below. Whether you own a house, condo, or mobile home, they can save you big money when you file. Just be sure to compare your total itemized deductions against the standard deduction and see which is higher (you’ll have to choose between standard OR itemized on your return). It’s also good to know what you can’t deduct before you land in hot water with the IRS…
Mortgage Interest
A house payment is comprised of two parts: principal and interest. The principal goes toward reducing the amount you owe on your loan and is not deductible. However, the interest you pay is deductible as an itemized expense on your tax return. You can generally deduct interest on the first $750,000 of your mortgage (or $375,000 each if you’re married filing separately) if you purchased your home after December 15th 2017. Those who purchased earlier (10/14/1987 – 12/15/2017) can deduct interest paid on up to a $1m mortgage.
Property Taxes
You can deduct up to $10,000 of property taxes you paid (or $5,000 if you’re married filing separately). If you have a mortgage, the amount you paid in taxes will be included on the same annual lender statement that shows your loan interest information. If you paid the property taxes yourself but don’t have receipts, you should be able to locate the total tax amount on your county assessor’s website.
Home Improvements
Making improvements on a home can help you reduce your taxes in a few possible ways:
- If using a home equity loan or other loan secured by a home to finance home improvements, these loans will qualify for the same mortgage interest deductions as the main mortgage. Only the interest associated with the first $100,000 is deductible (and if you’ve already maxed out the interest deduction on your main mortgage, you won’t be eligible for any additional deduction for this loan).
- Tracking home improvements can help when the time comes to sell. If a home sells for more than it was purchased for, that extra money is considered taxable income. However, you are allowed to add capital improvements to the cost/tax basis of your home thereby reducing the amount of taxable income from the sale. Keep in mind that most taxpayers are exempted from paying taxes on the first $250,000 (for single filers) and $500,000 (for joint filers) of gains.
- Home improvements made to accommodate a person with a disability (yourself, your spouse, or your dependents who live with you) may be deductible as medical expenses. Examples include adding ramps, widening doorways/hallways, installing handrails or grab bars, lowering kitchen cabinets, or other modifications to provide wheelchair access.
- If you live in Washington State and apply with your county prior to construction, you may be able to get a 3-year property tax exemption for major home improvements (including an ADU or DADU) that add up to 30% of the original home’s value.
Home Office Deduction
If you run a business out of your home, you can take a deduction for the room or space used exclusively for work as your principal place of business. This includes working from a garage, as well as a typical office space. Unlike most of the other deductible expenses, you can deduct home office expenses even if you opt to take the standard deduction.
This deduction can include expenses like mortgage interest, insurance, utilities, and repairs, and is calculated based on “the percentage of your home devoted to business use,” according to the IRS.
Home Energy Tax Credits
For homeowners looking to make their primary home a little greener, either the Energy Efficient Home Improvement Credit or the Residential Energy Clean Property Credit can help offset the cost of energy efficiency improvements. Even better, these are credits, which means they directly lower your tax bill.
- Energy Efficient Home Improvement Credit: 30% of the cost for qualified high-efficiency doors, window, insulation, air conditioners, water heaters, furnaces, heat pumps, etc. Maximum credit of $1,200 (heat pumps, biomass stoves and boilers have separate max of $2,000).
- Residential Clean Energy Credit: 30% of the cost for adding qualified solar/wind/geothermal power generation, solar water heaters, fuel cells, and battery storage.
What You Can’t Deduct:
- Mortgage Insurance (this is a change as of 2022)
- Title Insurance
- Closing Costs
- Loan Origination Points
- Down Payment
- Lost Earnest Money
- Homeowner’s Dues*
- Homeowner’s/Fire Insurance*
- Utilities*
- Depreciation*
- Domestic staff or services*
*Unless it’s related to your home-office deduction—contact your tax pro to see if it’s a qualified deduction for you.
Do you have a low-income, disabled or senior homeowner in your life? Check out this article on King County property tax relief.
Psst…every homeowner’s financial situation is different, so please consult with a tax professional regarding your individual tax liability.
Find a Home | Sell Your Home | Property Research
Neighborhoods | Market Reports | Our Team
We earn the trust and loyalty of our brokers and clients by doing real estate exceptionally well. The leader in our market, we deliver client-focused service in an authentic, collaborative, and transparent manner and with the unmatched knowledge and expertise that comes from decades of experience.
2737 77th Ave SE, Mercer Island, WA 98040 | (206) 232-0446
mercerisland@windermere.com
© Copyright 2024, Windermere Real Estate/Mercer Island.
Adapted from an article that originally appeared on the Windermere Blog, written by: Chad Basinger.
