Real Estate Weekly, July 9, 2021

INSIDE

This Issue

SAFEGUARDING YOUR SHORT-TERM RENTAL PAGE 5 BUYERS WANTING A LOT HAVE A UNIQUE MORTGAGE OPTION PAGE 7 CLASSIFIEDS PAGE 7

JULY 9-15, 2021

TABLE OF CONTENTS Safeguarding your short-term rental ..............P5

INSIDE PAGE

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Q&A Ask Our Broker.......................................................................P6

Buyers Wanting a Lot Have A Unique Mortgage Option ........................................P7 Classifieds............................................................................P7

RE-Weekly To advertise in RE-Weekly or other Skagit Publishing publications, Call: 360.416.2180 or Email: ads@skagitads.com ©2021 by Skagit Publishing | All rights reserved.

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own the local real estate market expand your reach when you combine the power of our digital audience and premium print ads in the re weekly ask your multimedia account executive for details.

ContaCt: 360.424.3251 • ads@skagitads.Com 2

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July 9, 2021

STAT Real Estate Stat

8%

The rise in pending home sales in May 2021 compared to the prior month. It was also a 13.1% lift from one year ago.

Source: National Association of Realtors

NORTH PUGET SOUND ASSOCIATION of REALTORS® 525 East College Way, Ste J

Mount Vernon, WA 98273

Ph:360-416-4902

www.npsar.realtor

FeAtureD HoMe FroM coVer:

920 Nez Perce Dr, MouNt VerNoN

REALTOR® Charity Golf Tournament Is Back!

Thurs, Aug 19th, 2021 at Skagit Golf & Country Club Register today for the REALTOR® Charity Golf Tournament benefiting Skagit Habitat for Humanity and Friendship House.

Skagit tradition realty LLc 3780 e. college Way Mount Vernon, WA 360-424-0300 www.skagittraditionrealty.com

$650,000

Carla Fischer

360-982-0010

Suzanne Jenkins

360-941-2983

Open House, Sunday, July 11 11:00 AM-2:00 PM Enjoy the incredible privacy of this beautifully

The tournament is open to the public and all skill levels!

landscaped 2.3 acre lot with a very well maintained

Registration is $125 per person and includes the cart, ‘grab ‘n go’ brunch, prizes, full dinner and more.. Sign up a foursome, or a single!

To Register, or for more information, visit our website: www.npsar.realtor Or contact North Puget Sound Association of REALTORS® at 360-416-4902

2860 square foot home. Formal dining room.

Major Event Sponsor:

Family room opens up to a large deck and secluded back yard. Kitchen has lots of cabinets and eating bar. 4th bedroom is more like a large bonus room, but considered bedroom by the County. Tile roof.

Fenced back yard and a garden shed. RV Parking.

MLS#1801110 Dir: From College Way go South on Waugh Rd. Left on

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at end of first cul-de-sac.

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119392-1

Apache. Right on Kiowa. Right on Nez Perce to driveway

Mission Statement: The North Puget Sound Association of Realtors advocates for Realtors and their clients, and promotes the protection of property rights.

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Now could be the time to sell a new home and earn a slice of the real estate pie.

s w l t s B p

Record-low interest rates and record-low housing prices are renewing interest in the floundering housing market for many people.

“When sellers are interviewing real estate agents to market their homes, their primary focus is usually on the advertising that the agent will offer them,” says Jessica Goodbody of Weichert Realtors.

Let us help you meet your marketing goals by advertising your listings in Real Estate Weekly.

Call 360.416.2180 Today!

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RealEstate weekly In print and online goskagit.com ads@skagitads.com

July 9, 2021

o n w

o d a g t c t A a d

Safeguarding your short-term rental home Increase security and insurance coverage on your Airbnb property

By Erik J. Martin t can be tempting to want to lease out your primary residence or second home – especially with the kinds of rents landlords are commanding these days for short-term stays via VRBO, Airbnb, Booking.com, and other platforms.

Truth is, however, renting out a home is risky business, even if it’s only for a weekend or a few days.

“We’ve had guests of one of our landlord clients ski down a roof and knock out a power transformer. One guest didn’t set the bear trap correctly, and the bears came inside and destroyed the couch, walls, and floors.

Another guest fell through a balcony rail,” says Andrew Bate, co-founder/

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CEO of Safely.com, the Atlanta-based provider of short-term rental insurance.

“Hosts usually worry most about their floors getting scratched and new wine stains on their couch. But the real concern is when guests hurt themselves and it’s somehow your fault, or when significant property damage occurs.”

Even if you envision your Airbnb rental as only an occasional side hustle, don’t forget that this equates to running a small business.

Bate cautions that you’re putting all of your assets at risk when you allow Internet strangers to inhabit your home with proper insurance protection.

“Depending on the rental scenario, your standard homeowners insurance

policy may not cover losses incurred while your home is rented out, and you may require a more specialized insurance policy,” suggests Mark Friedlander, director of Corporate Communications for the Insurance Information Institute in St. Johns, Florida. “Also, note that, if it’s a second or vacation home, renting it out presents more of an insurance risk than your primary residence because you won’t physically occupy the property as frequently, which also puts it at greater risk for theft, vandalism, and easily undetected damage like a burst water pipe or a leaky roof.”

Friedlander says if you decide to rent out your primary or vacation residence one time or just a few

nights a year, your insurer may extend the protection from your current homeowners insurance policy while it’s rented out. Other carriers may obligate you to purchase an endorsement to your existing homeowners policy.

“But if you plan to rent out your home multiple times to various shortterm rental guests, some insurers may consider this a business, for which you need to purchase a commercial insurance policy to guarantee that your home is protected,” he adds.

Airbnb includes $1 million in host insurance coverage at no extra cost to you, but this might not be sufficient to cover the entire cost of a devastating event at your rental property –

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like a fire that results in a total rebuild or a tragedy that ends in the death of one of your guests.

“If you regularly rent out your home on a homestay platform, you also want an umbrella policy that provides an additional layer of liability protection,” suggests Brian Martucci, the Minneapolis-based finance editor for Money Crashers.

“Your standard homeowners or commercial policy should be adequate to cover the cost of replacing a total loss, which usually means the property’s replacement value plus a 10% or 20% buffer. But I also recommend getting umbrella insurance coverage of at least $1 million or more, especially if you regularly host large groups or allow

parties. And if you rely on the income from renting out your second home to cover day-to-day living expenses, you may want to purchase rent loss insurance that’s adequate to cover the loss of that income while your home is being rebuilt or repaired.”

Bill Martin, president/ CEO of Plymouth Rock Home Assurance in Boston, points out that some insurers have started offering special short-term rental insurance policies.

“These are specifically tailored for properties either wholly or partially rented to tenants who stay less than six months,” he explains.

So, what kind of endorsement, policy, or coverage do you specifically need? To confirm, it’s best to consult with your insurance agent and ask what’s recommended and required. Explain your rental objectives and be prepared to answer several questions that can help your agent tailor a policy or endorsement that’s right for your short-term landlording needs.

“Be aware that insurance coverage for a rental property often costs about 25% more than for a standard homeowners policy,” Friedlander says.

Lastly, if you plan to rent out your primary or secondary residence for longer than six months to one tenant, you’ll likely need a landlord or rental dwelling policy that can differ from a short-term policy/endorsement. Ask your agent for more details on the differences and costs.

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Q&A

Refinancing During a Market Boom Question:

We bought our home for $258,000 five years ago with FHA financing. Today it’s valued at $425,000. We want to refinance to get a lower rate and to end the monthly cost for mortgage insurance. Can we also cash out? If yes, how much cash can we get?

Answer:

There is little doubt that millions of property owners are now able to cash out. Black Knight reports that 14.1 million homeowners were in a good position to refinance at the end of May and that — on average — the typical borrower could save $287 a month. However, some borrowers can do far better. The company also estimates that nearly 1.7 million could save an average of $741 monthly. That’s big money for most households, a savings of almost $8,900 a year.

These numbers are conservative. They assume that borrowers have 30-year financing, at least 20 percent equity, credit scores of 720 or more, and that refinancing will produce a rate reduction of at least .75%. With more liberal assumptions, Black Knight estimates

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ASK OUR BROKER

By Peter G. Miller

that roughly 23 million additional homeowners might benefit refinancing with rates at 2.95%.

The reason refinancing is so attractive at this time involves three factors.

First, home values have risen substantially.

According to the National Association of Realtors, typical existing home prices in April were 19.1% higher than a year earlier.

Second, interest rates are nowhere near the long-term average of 7.9%.

Third, people have been holding onto their homes. There is little inventory for sale. One by-product of this situation is that owners have more time to pay down their mortgage debt.

They owe less.

In the model situation the home may have been bought four years ago for $258,000 with FHA financing. The typical mortgage rate in June 2017 was 3.9%. The monthly mortgage includes $1,196 for principal and interest plus $176 for the FHA month insurance premium, a total of $1,372. With 3.5% down, the mortgage balance today is roughly $229,000.

If the property is worth $425,000 then the existing equity is approximately $196,000 ($425,000 less $229,000). If a lender allows

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you to refinance with an 80% loan-to-value ratio (LTV) you can obtain a new mortgage for as much as $340,000 ($425,000 x 80%).

Subtract the outstanding loan balance — $229,000 — from $340,000 in this example — and if qualified you can likely get $111,000 in cash. The term “qualified” means a solid credit score, reserves, a good payment history, a sensible debt-to-income ratio (DTI), etc.

You will no longer be paying $176 a month for mortgage insurance and, at 3%, the monthly payment for principal and interest is $1,433 over 30 years. If you want a lower monthly payment you’ll need to borrow less.

For instance if you borrow $300,000 the new monthly payment will be $1,265, plus you will be able to take out roughly $71,000 in cash.

Right now, today, millions of people can benefit by refinancing. It’s something to consider. For details and specifics shop around for both mortgage rates and terms, and be wary of any loan offer that includes steep fees and big charges up front.

Email your real estate questions for Mr. Miller to peter@ctwfeatures.com.

July 9, 2021

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CLASSIFIEDS RENTALS Apartments Unfurnished

NEW TODAY Evergreen Manor Apartments Accepting applications for 1 Bedroom Apartments.

62 years of age or older, or disabled adult. Rent is based on income. Income restrictions apply, call for details. 360-8538885 Relay: 711 The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities in the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and martial or familial status.

EHO

Buyers Wanting a Lot Have A Unique Mortgage Option

By Marilyn Kennedy Melia

options,” says Ed Barry, CEO of Capital Bank, Rockville, MD. ity life has been losing favor. “There are homes 30 minutes In 2020, net new suburban from downtown Washington DC, households rose 43 percent, as for example,” he illustrates, sugbuyers turned from urban settings gesting buyers visit the “housing to places where a green lot sepaassistance” section of the USDA. rates them from their neighbors. gov website, and using the propLiving in more open spaces erty search to see if a particular opens another type of governaddress qualifies. ment-guaranteed mortgage to If a home buyer wants a no more home buyers: USDA loans. down payment loan, a USDA ofYes, that’s the same agency that fers this option. It’s an advantage stamps approval on your meat, of USDA over the governmentand lends to farmers. backed FHA mortgage, which The USDA’s mission to requires a down payment of 3.5 strengthen rural areas extends percent. to many far-flung suburbs. “The But the buyer must meet the USDA’s definition of ‘rural’ is credit score an income requirement – usually buyers can’t have really a lot broader than people incomes greater than 115 percent probably assume when they’re thinking about their home buying of the media for the area, says Ju-

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lienne Joseph, associate director of government housing programs for the Mortgage Bankers Association.

Additionally, only certain banks and mortgage lending firms extend USDA-backed loans [listings are on the USDA sites]. But Joseph notes that some lenders extend USDA mortgages outside of the area where they are based.

Unlike with conventional mortgages, where one lender may grant a loan to a borrower with a specific credit score, but another will deny it, individual mortgage firms don’t determine eligibility, USDA rules determine it.

Borrowers must also be a U.S. citizen and live in the residence, says Barry.

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“This institution is an equal opportunity provider and employer.”

“We accept comprehensive reusable tenant screening reports as defined in RCW 59.18.030.”

Apartments Unfurnished

NEW TODAY Fircrest Apartments Accepting applications for 1 Bedroom Apartments.

62 years of age or older, or disabled adult. Rent is based on income. Income restrictions apply, call for details. 360-4199804 Relay: 711 The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities in the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and martial or familial status.

EHO

“This institution is an equal opportunity provider and employer.”

“We accept comprehensive reusable tenant screening reports as defined in RCW 59.18.030.”

NEW TODAY Villa Kathleen Apartments Accepting applications for 1 Bedroom Apartments.

62 years of age or older, or disabled adult. Rent is based on income. Income restrictions apply, call for details. 360-7559591 Relay: 711 The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities in the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and martial or familial status.

EHO

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“This institution is an equal opportunity provider and employer.”

“We accept comprehensive reusable tenant screening reports as defined in RCW 59.18.030.”

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$819,000 2xxx Urban avenUe, MoUnt vernon

1308 ALpiNE ViEw DRiVE MOUNT VERNON

PE

G N I ND

Danya Wolf

60102 STATE ROUTE 20, MARBLEMOUNT

About Sherry Ruderman

Sherry has earned several awards as a top salesperson because of her strong work ethic and professionalism, focusing on her clients’needs.

She has lived in Skagit County since 1995 as her chosen residence. She earned her B.S. Degree in Communications at Western Washington University and has been recognized throughout her professional career for integrity, having a problem-solving mindset and attention to detail.

Sherry Ruderman

63377 HigH RiDgE DR. #D3 L115, MARBLEMOUNT

Whether you are facing a life-changing situation, buying your first home or want to experience a different aspect of Washington's landscape, Sherry's goal is to help you have the best experience with your Real Estate needs.

Danya Wolf

$55,000

Sunny, nice quiet street located in Cascade River Park. Pack your bags cause she’s ready to go. Turn key with trailer, covered deck, storage sheds and lots of room for parking and tents. This lot is ready for you, family and friends to enjoy this summer.

MLS# 1754582

CONTACT SHERRY RUDERMAN Real Estate Broker Skagit Tradition Realty, LLC 3780 East College Way, Mount Vernon, WA 98273 Cell: 360-540-1552 • Fax: 360-428-2919 www.SkagitTraditionRealty.com

Juanita Bunch 360-941-5530

$777,000 Mondo Restaurant has a newly remodeled kitchen with beautiful, new appliances. Great work space and tremendous storage. Public area offers very spacious seating. There is also an outside dining option. Small gift shop area. Chef creates incredible and varied menu, both nutritious and delicious. Restaurant is situated in a beautiful location in the Cascade foothills. Well worth a 360-540-1552 360-708-8294 day trip. MLS# 1757641

Sherry Ruderman provides professional service helping her clients sell and find the home that best fits their ideal lifestyle. Sherry partners with clients using excellent listening skills and has the resources to meet their objectives with a sense of urgency and efficiency to maximize their time.

JoAnn Boudreau Patricia Box (360) 391-0746 Office Manager/Broker O: (360) 424-0300 C: (360) 941-9186

$600,000

Prime commercial property with utilities in street, including P.U.D. water, Puget Sound Energy electricity; Cascade Natural Gas, fiber optics; cable; and sewer. Subject To survey and short plat. Property is located between Chicago Title Company easterly parking lot and Max Dale Restaurant’s south easterly parking area.

360-708-8294 MLS# 1649968

Fabulous Custom Craftsman Home ome in beautiful Eaglemont Community,, on the 13th fairway! fair pen Open c geous ccustom living & dining w/soaring ceilings, gorgeous mill work,, hardwood hardw eplace surrounded by floors, gas fireplac c tain on yyour large deck overlooking built-in cabinets.

Entertain Mount Baker. Spacious office/den with the fairwayy & view to Moun shelving & desk rready to start your day. A Gourmet chefs kitchen w/ 6 burner gas stove & warming, double wall oven plus microwave, large granite island & counters, pantry & laundry on main fl. Deluxe owner suite, master bath w/heated fl. walk-in shower & Calif style closet, jetted tub. Downstairs makes for perfect MIL 2 bedrooms full bath, family room with bookshelves & TV, granite counter & wine cooler, enjoy your John Hunter Elva Hunter outside patio. MLS#1795702 (360) 202-3086 (360) 202-3086

Sherry Ruderman

360-540-1552

Carla Fischer (360) 982-0010

Elva Hunter (360) 202-3086

John Hunter (360) 202-3086

Suzanne Jenkins (360) 941-2983

360.424.0300

Russ Lanker (360) 708-1117

Sherry Ruderman (360) 540-1552

Kim Schlimmer (360) 661-7670

Brett Tacker (360) 840-7931

Danya Wolf Designated Broker/ Owner (360) 708-8294

3780 E. College Way, Mount Vernon

www.skagittraditionrealty.com 111001-1

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July 9, 2021