Julie Dillon | August 2021 Newsletter

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FIXER UPPER OPPORTUNITIES IN A HOT MARKET In normal housing markets, Americans want move-in ready homes. But the post-pandemic housing market is far from normal, and soaring prices have home shoppers changing their expectations.

and making endless runs to Home Depot. He fields some questions about the fixer-upper trend:

According to a TD Bank survey of Americans aiming to buy their first home in 2021, fully 71 percent aren’t looking for a dream home.

Instead, they’re shopping for a starter home or fixer-upper.

A: We’re seeing prices rise. The National Association of Realtors says prices rose 23.6 percent from May 2020 to May 2021. This low inventory has been out there as an issue since the financial crisis of 2008. We haven’t really been adding a lot of inventory.

Scott Lindner, national sales director at TD Bank Mortgage, says buyers need to prepare for the special challenges that accompany home renovations, such as dealing with contractors

Is the Residential Market Past it’s Peak? pg. 3

Q: What types of loans are available for renovations?

A: Many lenders have an FHA 203(k) loan which allows people to buy a fixer-upper.

If it’s a smaller amount, you can do the old credit card balance — but you also need to understand what that means from an interestrate perspective.

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For buyers frustrated by the lack of inventory and rocketing prices, older homes can be a good compromise. Of course, buying a fixerupper means you’re taking on a project, one fraught with uncertainty.

Q: What’s driving the interest in fixer-uppers?

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FIXER UPPER OPPORTUNITIES IN A HOT MARKET (continued)

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If you already own the home, a home-equity loan is an option. Many home equity loans will go up to a 90 percent loan-to-value ratio. And with interest rates where they are today, if you didn’t refinance in the last year and a half, it might make sense to go ahead and do a cash-out refinance.

We’re letting you in on a little known secret: Seattle has mini hidden beaches and nature preserves that are open to the public!

SW Barton St (Cove Park) | SSE-3 Tucked in next to the Fauntleroy Ferry Terminal, this site provides great access to a sandy beach via an artful paved pathway

Q: What advice do you give a first-time buyer considering a fixer-upper?

A: First and foremost, be part of the inspection process.

Buyers don’t always take this seriously. Maybe they hang out in the living room while the inspector makes his rounds.

You should become attached at the hip. Really look at the inspector as a person to go around with and learn about the property.

Also, a great way to buy a house is to put in a lot of sweat equity. If you can do a lot of work yourself, you can potentially save a lot of money.

There’s the potential of discovering additional issues, so be cognizant of cost overruns.

Q: What’s a common mistake made by buyers of fixer-uppers?

A: The biggest and most hurtful mistake is underestimating the cost of your renovation. No matter how well you think you estimate, there are always surprises. You have to assume that there are going to be cost overruns. It’s better to go into it anticipating that. Probably in the back of your mind you should be thinking of a 15 to 20 percent cost overrun.

SW Carroll St (Weather Watch Park) | SSE-5 Known to the locals as Weather Watch Park, this site has a driftwood covered gravel beach and art installation at street level S Willow St | SSE-45 Wood steps and a narrow pathway lead down to two benches under the canopy of a black locust tree. Steps take you down to the small gravel beach.

E Harrison St | SSE-63 A path under the cover of conifers leads to a secluded sandy beach.

E Highland Dr | SSE-66 Community efforts in 2016 transformed an overgrown street into a end lovely public shore with open lawn area, log seating, and a gravel path leading down to a pebble beach.

Visit the full article here for access to an interactive map of these, and many more hidden Seattle beaches! https://sdotblog.seattle.gov/2021/06/23/beach-week-haveyou-heard-about-seattles-hidden-beaches/

Check out the most beautiful luxury properties in the Pacific Northwest. http://www.coldwellbankerbain.com/magazine

Is the Residential Market Past it’s Peak?

Although asking prices for U.S. homes continue to rise, there are signs that the red-hot housing market has passed its peak, according to a report Thursday from realtor. com.

The median listing price was up 12.2% in the week ending Saturday, compared to the same time in 2020, the data showed. That’s the 45th week in a row in which price growth was in the double digits.

Despite the rise, the pace of annual price growth has been slowing since its high of 19% in early April, according to the report. If the downward trend continues, prices could return to a “more typical seasonal price pattern” in the next six months.

Additionally, new listings rose 4% year over year last week, as sellers look to take advantage of the frenzied market, the report found. The increase in options has helped curbed prices, as well as giving buyers more options. “If inventory declines continue to improve, we could see more families moving before fall,” George Ratiu, realtor.com’s senior economist, said in a statement. “For the market as a whole, additional inventory should bring more balance and boost affordability for buyers.”

Still, overall, total inventory was still down 42% year over year last week, the data showed. But the gap is narrowing, as total listings were down 44% in the week ending June 12 and 54% in early April.

“Home inventory remains tight, but there is a clear improvement,” the report said.

The number of days a home is on the market is also starting to moderate, potentially giving buyers more time to negotiate. Time-on-market was 33 days faster last week compared to the same time in 2020, the data showed. For buyers, that’s improved from a May peak, when homes were selling 39 days faster than the prior year.

“Buyers should still expect to act quickly on their desired homes, but we are seeing signs that the peak of the frenzy may soon be behind us,” the report said.

julie dillon

BROKER | CAPITOL HILL

206.325.2475 JulieDillon@CBBain.com www.JulieDillon.CBBain.com

Coldwell Banker Bain 1661 E Olive Way Seattle, WA 98102

julie dillon

BROKER | CAPITOL HILL

206.325.2475 JulieDillon@CBBain.com www.JulieDillon.CBBain.com

CURB APPEAL | BRING YOUR HOUSE BACK TO LIFE! If you’re looking to cash in on this booming seller’s housing market,(link is external) you may want to put more focus on the home’s exterior. A home’s outward appearance plays a big role in whether potential buyers want to tour the interior. HomeLight, a real estate referral company, offers up several ways to give the home’s curb appeal an instant makeover:

achieve that comfy-cottage look, try a light shade of gray or even a very pale shade of pink.

1. Update the light fixtures | Updated light fixtures can change the way the front of a house looks but has an added benefit of making it safer when you use brighter bulbs too. Most outdoor lighting fixtures are much smaller than they should be. (That may had been intentional on the builder’s side; smaller fixtures are less expensive.)

5. Hire a professional landscaper | There’s a huge difference between do-it-yourself landscaping and landscaping that’s completed by a professional. A professional landscaper can make your lawn a luscious green carpet that’ll make you want to kick off your shoes. They’ll know which native plants to choose to make a yard warm and inviting. They can also create water features, intricate flower beds, build retaining walls, and more.

2. Upgrade windows and doors | Updating your windows and doors are a great way to improve the overall look of your home while also being energyefficient. Consider adding window boxes, shutters, or even painting the trim for an added pop of color.

3. Paint | Painting your house is a huge task, but it can pack a huge punch! Just imagine the statement you’d make by ditching the boring beige, dulled white, or dated yellows. If you want to modernize your house, consider painting the house black or navy blue. Or, if you want to

4. Add wood and/or stone elements | Adding wood or stone elements to the exterior can help give a home a “wow” factor. Even if you don’t want to put stone veneers on the exterior, you could add stone and wood elements in other ways, like by using stone to line the walkway, a wooden fence, or even stone or wooden lawn ornaments.

6. Refinish walkways and the driveway | The walkways and driveway get a lot of use, and all that wear and tear will need an update over time.

A professional landscaper or hardscaper also can upgrade your driveway and walkway by using stone, brick, or cement. But if you’re on a budget, a good power-washing may also give a curb appeal boost.