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The Harsh Realities of Renovation
A brief update on our progress thus far and a few reflections on buying a Seattle fixer:
Lows:
The amount of Ibuprofen. The reality is renovations take a lot of hard, back-breaking work. Our home was built in the early 1940s and the walls are mostly plaster which is pretty difficult to work with (demo, drill, repair, etc.) We are saving a lot of money by doing the work ourselves but it makes sense why people sometimes choose to hire this work out.
Time runs out quickly. Every day we have a plan for the renovations and we complete about 70% of those goals. You see the progress you’re making but you battle the feeling that you’re not getting anywhere.
Dirty all the time. We are caked in caulk and grout. Our house is dusty and disorganized (and we haven’t even moved in!)
Nothing is free. It cost $120 to get rid of the 2,000lbs of house debris and lawn gnomes. Plaster is heavy. Gnomes are heavier.
Highs:
Getting exactly what we want. From fixtures to grout color, this bathroom is 100% what we envisioned. It’s also a small step up from the linoleum, orange formica countertop and stained glass bear window. (#savethebear)
Quality of output. My father and I hand-polished every single hexagon tile on our floor after we spread the grout last night. When it’s your home and you’re the one putting in the work, you take the time to do it right.
Bonding with the people you’re working alongside. I learned that my dad was drafted into the Vietnam war while he was dating my mom but the request was recalled as the war dwindled. I watched my wife balance our baby on her hip while putting her whole weight into every piece of laid tile. The four of us have spent at least 40 hours together in that tiny bathroom and we’re closer because of it.
For more information on our Windermere Evergreen team please contact us here.
Sellers: Making the Most of your First Impressions
As the old saying goes, you only have one chance to make a first impression. If you’re selling your home, it’s true, except that there are several impressions to be made, and each one might have its own effect on the unique tastes of a prospective buyer. I’ve worked with scores of buyers, witnessed hundreds of showings, and I can summarize that experience down this: a tidy and well maintained home, priced right, listed with professional photographs, enhanced curb appeal and onsite visual appeal will sell fastest. We all know first impressions are very important, but the lasting impressions are the ones that sell your home. It’s not easy, but if you can detach a little and look at your home from a buyer’s perspective, the answers to selling it quickly may become obvious to you.
The very first impression your home will make is through its web presence, whether on Windermere.com, the MLS, Craigslist or any multitude of websites. Fair or not, the price is typically the very first thing people look at, and it will be the measurement by which your home is judged. You can always adjust to the right price later, but the impact is lost. It will take something dramatic to get a buyer to reassess the way they feel about the value of your home.
Closely following price are the listing photos. According to this recent article in the Wall Street Journal, professional photos will not only impact your first impressions, it may also make a difference in the final selling price. Great photos might even overcome those initial price objections. Does the exterior photo capture your home at its hi-res best? Does the accompanying text enhance or distract? Online, your home has only a few seconds to capture the home buyer’s attention. If it doesn’t, they’ll click the “Back” button and resume their search. The goal is to have buyers excitedly calling their agents to arrange a showing.
Another old saying is “Location, location, location,” and sure enough, the first live impression of your home is the location. Forget this one; you can’t move your home. There’s not much you can do about location, right? Actually, there is one thing you can do: price it right from the start.
Let’s move on to the first time a buyer sees your home as they pull to the curb out front. Go stand out at the curb and look at it the way you would if you were shopping for a home. Sometimes, a couple hours of labor and $100 worth of beauty bark can be worth thousands in the sales price. I’ve had buyers choose not to get out of the car when we pulled up to a home that they had once been excited to see.
Likewise, I’ve had buyers say they’ve seen enough simply by peaking into the front door. The nose trumps the eyes when it comes to the first impression when entering the house. Buyers get more caught up in the details. Once the home shopper is inside, it’s easy for them to get distracted and focus on something that seems to have nothing to do with the structure they will be buying, from a dirty dish in the sink to a teenager’s bedroom that’s been decorated in posters and/or melodrama. Do everything you can to set a positive lasting impression. The buyer may look at dozens of homes. What is your strategy to convince them to make an offer on yours?
Guest post by Eric Johnson, Director of Education
For more information on Windermere Evergreen, please contact us here.
When it comes time to downsize
When it comes time to decide if you want to downsize, there are many thoughts and emotions that go speeding through your mind. Maybe you have already decided this is your home for the rest of your life. Your home was the perfect place to meet your needs when you were in an earlier cycle of life, and will be the ideal home for all the events you see happening in your next. If you are inclined to feel that the home you currently reside in may have out-lived its purpose, you may be struggling with some of the same thoughts and emotions my husband and I had when it came to the emotional and financially sensitive decision to downsize.
In our situation, we loved our home. It provided everything we needed to raise our three children, plus nurture all the creative projects that identified who we are as a family as well as individuals. Our children were just like anyone else’s; loved, individually different, all requiring unique activities and space to help them grow, using their special talents. We loved our neighborhood and took an active part in making it an extension of our home. Considering that it had been our home for decades, deciding to leave was emotionally difficult.
We spent several years before we knew we would leave our home, looking at all the smaller options. We wondered, should we look for another single-family dwelling or check out other options like co-ops of condominiums? My husband had spent the past twenty-five years mowing our lawn and was quite willing to remove this task from his plate. I, on the other hand, still loved to garden. Was there a living environment that could satisfy both these expectations? We looked at every condominium and every co-op in the Seattle area for five years, but nothing really fulfilled everything we needed. We had a list of features including a garden spot, closets and efficient use of space, etc. I’m an Old World Charm lady, but guess what? Back in the 20’s ladies only owned three dresses. Let’s just say, I own a few more outfits than most pre-war closets were meant to hold. So the search went on.
When our children finally reached their 20’s and my husband wanted to retire, we knew it was time to make our move. Like I said, everyone loves their children, but not all the party time we now came to expect in our rec room every weekend. We were ready to have a space of our own, and it was time for our kids to begin their next cycle in-life. We also had too much of our finances tied up in a 3,000 square foot house, when in reality we needed less and could save more. We had to leave the home we had dedicated to making our unique expression of who we were, and leave very soon.
If any of this sounds familiar, your task will be a little easier than it seems! Here is some practical advice for making your move:
Define your needs: Narrow down your ideal needs. Start by deciding if you want a single-family versus multi-family dwelling. Consider your price range, and then space needs.
Downsize: We downsized a bit more than we should have, but we sure got rid of lots of items we collected over the past 25 years. Some of them were special to me. I’d purchased a beautiful wood serving tray at a yard sale with one of my dearest friends. I had to borrow money from her to buy it. I solved the problem by giving it to her when we moved, and I still see it when I visit her home. My children took much of the furniture they had a special connection to, and my nephew, who spent nearly every Christmas sitting in his favorite red chair, can now enjoy it in his own home.
Let go: Leaving the neighborhood and all our lifelong friends was the most difficult process, I think, of all the decisions we had to make. We still see them, but as I’m writing this my eyes are tearing up. It’s hard to re-visit my old neighborhood and see my old home cared for in a different way than I had lovingly done for twenty-five years. But it does give us plenty of things to talk about with old friends when we get together.
What did we end up doing? We moved into a vintage 1930’s co-op in a walkable part of town. I have just the right amount of gardening space that I share with other owners. We have made wonderful friends with some of our neighbors and get together frequently for happy hour and spur-of-the-moment gatherings. It’s a different lifestyle than we had before but, believe me, there are plus sides. In no way will any of our three wonderful, adored, adult children ever be able to move back home, since we now live in an 850-square-foot co-op with every space used on a daily basis. There were times when I wouldn’t go in one of my rooms in our old home for several weeks. This is not a problem now. Yes, maybe it’s too small, but we can always move into a larger place if and when we feel it’s time.
What are your questions about downsizing your home? What features do you require to live in a smaller, more efficient dwelling?
Pat Eskenazi is a Windermere veteran, working in marketing for the past 12 years. She has lived in Seattle since 1952. Her favorite place to walk is along Golden Gardens, and she especially loves to climb the stairs up to the Sunset Hill neighborhood where she lived with her 3 children and husband for 25 years.
For more information on Windermere Evergreen please contact us here.
Pricing your home to sell
When it comes time to sell a home, most people want the property to sell quickly for the highest possible return. Setting the correct listing price is the most important step in reaching this goal. Price a property too low and it might sell quickly, but you could pocket less profit. Set it too high and you run the risk of pricing yourself out of the market.
Why overpricing a home is risky
Some sellers want to list their home at an inflated value, believing that they can always lower the price down the road if needed. But this can be a risky strategy. New listings generally get the greatest exposure in the first two-to-four weeks on the market, so setting a realistic price from day one is critical. If a home is priced too high, your strongest pool of prospective buyers is eliminated because they think it’s out of their price range. Conversely, buyers who can afford it will compare it to other homes that have been fairly priced and decide that they can get more home for their money elsewhere.
Once it has been decided to reduce the price, you’ve unnecessarily lost time and money. Your strongest prospective buyers may have found another home, while the over-inflated price could result in a negative impression amongst agents and buyers who are still in the market. Not to mention, reengaging buyers after those first critical few weeks can be very challenging. As the saying goes, “time is money”; so the longer a home is on the market, the lower the selling price will likely be in relation to the initial listing price.
Setting a home price too high has other costs
When a home languishes on the market, the seller loses in a number of ways. Each month the home goes unsold is another month of costs to the owner in mortgage payments, taxes, and maintenance—expenses that are not recovered when the home is sold. Furthermore, until the house is sold, the owner is on hold and can’t move forward with whatever plans prompted the decision to sell. If the seller is still living in the home, it can also be fatiguing to keep the property in ready-to-show condition month after month.
How to set the right price for a home
It’s not easy to be objective about your own home. That’s why it’s best to have a real estate professional work with you to set a reasonable price. According to a study done by the National Association of REALTORS®, homes that were sold using a real estate agent netted an average of $25,000 more than those without agent representation.
There are a number of factors that your agent will consider when determining a sales price for your home. Here’s a quick overview.
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- Comparable sales. One of the best guides to pricing your home is knowing what recent buyers were willing to pay for similar homes in your area. So, one of the first things your agent will do is prepare a Comparative Market Analysis (CMA). A CMA is a written analysis of houses in the community that are currently for sale, homes that have recently sold, and homes that were offered for sale but did not sell. While no two homes are identical, the report highlights only homes that most resemble yours. The CMA will include details about these properties, such as the number of bedrooms and baths, square footage, noteworthy amenities—and the listing price and sale price. The report will also include the Days on Market (DOM) for each property, which is the number of days it took to sell the home once it was listed. The CMA helps determine a price range that will be appropriate for your home.
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- Unique property features. Since no two homes are exactly alike, looking at comparable sales is just one part of the equation. Many properties have distinctive features that add to their overall value when it comes to pricing. The importance buyers place on different features can vary by region, but examples might include a particularly pleasing view, artisan-quality interior detailing, outdoor entertaining space, or exceptional landscaping.
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- Current market conditions. The real estate market is constantly fluctuating, and those cycles have a direct impact on pricing. Here are some of the market conditions an agent may consider when evaluating how to price a home:
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- Are home prices trending up or down?
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- How quickly are homes selling?
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- Is the inventory of homes on the market tight or plentiful?
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- Are interest rates attractive?
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- How is the overall economy performing? Is the local job market strong or in decline?
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- Current market conditions. The real estate market is constantly fluctuating, and those cycles have a direct impact on pricing. Here are some of the market conditions an agent may consider when evaluating how to price a home:
Other factors that can impact pricing include the condition of the home, seasonal influences (i.e. summer versus winter), condition of surrounding neighborhood, local amenities, and how quickly the seller needs to move.
There are a lot of factors that go into setting a home’s sales price, but it’s by far the most critical step in the overall selling process. The best course of action is to look to your real estate agent for guidance; they have the experience and market knowledge that will help you achieve your goals and reach a desired outcome that best fits your individual needs.
For more information on Windermere Real Estate please contact us here.
The Value of Home Staging
When you put your home on the market, you want it to sell quickly and for the best possible price. Staging your property can help you do both. Below, you will find tips that can help you showcase your home’s strong points, minimize its problem areas, and increase its appeal for prospective buyers.
For more than 20 years, the benefits of staging a home have been well documented. Numerous studies show that staging helps sell a home faster and for a higher price. According to the National Association of REALTORS®, 88 percent of homebuyers start their search online, forming impressions within three seconds of viewing a listing. When a home is well staged, it photographs well and makes the kind of first impression that encourages buyers to take the next step.
Studies also indicate that buyers decide if they’re interested within the first 30 seconds of entering a home. Not only does home staging help to remove potential red flags that can turn buyers off, it helps them begin to imagine living there. Homes that are professionally staged look more “move-in ready” and that makes them far more appealing to potential buyers.
According to the Village Voice, staged homes sell in one-third less time than non-staged homes. Staged homes can also command higher prices than non-staged homes. Data compiled by the U.S. Department of Housing and Urban Developmentindicate that staged homes sell for approximately 17 percent more than non-staged homes.
A measurable difference in time and money
In a study conducted by the Real Estate Staging Association in 2007, a group of vacant homes that had remained unsold for an average of 131 days were taken off the market, staged, and relisted. The newly staged properties sold, on average, in just 42 days, – which is approximately 68 percent less time on the market.
The study was repeated in 2011, in a more challenging market, and the numbers were even more dramatic. Vacant homes that were previously on the market for an average of 156 days as unstaged properties, when listed again as staged properties, sold after an average of 42 days—an average of 73 percent less time on the market.
Small investments, big potential returns
Staging is a powerful advantage when selling your home, but that’s not the only reason to do it. Staging uncovers problems that need to be addressed, repairs that need to be made, and upgrades that should be undertaken. For a relatively small investment of time and money, you can reap big returns. Staged properties are more inviting, and that inspires the kind of peace-of-mind that gets buyers to sign on the dotted line.
What’s more, the investment in staging can bring a higher price. According to the National Association of REALTORS, the average staging investment is between one percent and three percent of the home’s asking price, and typically generates a return of eight to ten percent.
In short, less time on the market and higher selling prices make the small cost of staging your home a wise investment.
Interested in learning more? Contact your real estate agent for information about the value of staging and referrals for professional home stagers.
For more information on Windermere Evergreen please contact us here.
Home Staging tips
A few weeks ago we shared some insights into why home staging is an important part of the selling process. Below you will find some of our tips for staging and photographing your home for sale.
DIY Home Staging Tips:
With a little time, effort and imagination, you can stage your home to showcase its best features, sell it faster and get top dollar.
Clean up, pare down, and toss out: By simply getting rid of excess furniture and clutter, you can make any room look larger and more inviting.
Make it professional, not personal: Remove family photos, mementos and other personal items from the space. This not only eliminates clutter, it helps potential homebuyers envision their lives in the space.
Repurpose rooms: Do you have a “junk” room? You can transform a liability into an asset by turning an underused space into a reading nook, a craft room, a yoga studio or a home gym. Just clean it up, add a coat of paint, some furniture and the right accessories.
Lighten up: Light, airy rooms look bigger and more welcoming. You can create a pleasing effect by using the right wattage bulbs and multiple light sources. The right window treatments can also have a big impact. Choose fabrics that are light and gauzy, rather than dark and heavy.
Try a little color: Paint is the cheapest, easiest way to update your home. Stick with warm, natural hues, but try darker colors for accent walls and to highlight special features. You can give old furniture new life with a coat of shiny black paint—and freshen up the front door with a bold, cheerful color.
Add some decorative touches: Art, accessories, plants and flowers breathe life into a home. Make rooms more inviting with accessories that are carefully grouped, especially in threes. Pay attention to scale, texture and color. Bring the outdoors in with plants and flowers.
Picture-Perfect Staging:
When it comes to looking for a home most people start on the internet. The photos in your property listing can make a powerful first impression. According to a recent Wall Street Journal article, professional photos can increase home views up to 61%. Make sure your home is “ready for its close-up” by following these simple guidelines before the photographer shows up.
For exterior photography:
· Make sure no cars are parked in front of your house or in your driveway.
· Sidewalks and streets should be cropped out
· There should be up-close and angled shots, as well as long shorts that emphasize space.
· Clear away or trim vegetation blocking the front door or path to the door.
· Make sure lawns are mowed, hedges clipped, etc.
· Remove evidence of pets.
· Put away children’s toys.
· If you are selling a condo or townhome, such amenities as tennis courts, a gym, a garden patio or clubhouse should be photographed.
For interior photography:
· Make sure your house is spotless, windows are clean and rooms are decluttered.
· Repair all visible damage, e.g., bad water stains, gouges, chipped paing.
· Drapes and blinds should be open and lights on.
· Remove trash cans, close toilet seats.
· Use floral arrangements in kitchens and dining rooms.
· Make sure that interesting details and attractive features—e.g., wood floors, a carved mantel, marble countertops and ornamental tile backslashes, etc. – are photographed.
For more information on Windermere Evergreen please contact us here.
Why You Should Stay Put and Improve the Home You Have
Here’s an architecture book for our times, when some homeowners are under water on mortgages, and the cycle of trading up has either stopped or slowed way, way down. In “Staying Put,” architect and writer Duo Dickinson has assembled a terrific and practical guide to help us make real improvements to our homes. Dickinson, an advocate of well-designed and affordable homes for all, has specialized in residential design for more than three decades.
This is not your typical architect’s book about design. There’s no obscure language nor design-for-design’s-sake ideas. It is a practical, down-to-earth guide that walks anyone through the rational process of how to remodel your house to get the home you want, from how to think about your house and overcoming hurdles to a list of “Duo’s Do’s and Don’ts” for the homeowner. Along the way, there’s plenty of nice before-and-after photos to help explain the points. Do read the book. You’ll be glad you did.
Staying Put 1: The Taunton Press Inc, original photo on Houzz
The cover says it all. The ubiquitous photo of a gorgeous, award-winning home that’s beyond most of us is replaced with images of a saw, cup of morning joe and a to-do list.
Are you staying put yourself? Read on for 8 of Dickinson’s suggestions.
Consider the compass points. The tips and illustrated examples are wonderfully straightforward. For example, we see a house that gets overheated, the siding degrades and the front door bakes in the sun because it all faces south.
Dickinson’s common-sense advice: Rework the front of the house with a new wide porch that shades the front door and some smaller, yet well-sized windows to create a lot more curb appeal while reducing maintenance and energy consumption. It’s a triple win: more beauty and comfort with less cost.
Avoid gutters. Statements such as “gutters and leaders are devoutly to be avoided” may sound like heresy to many, but certainly are the truth. Proving his point, Dickinson illustrates how a properly-built roof overhang can shed all the water it must without the complications, such as ice dams, caused by gutters.
Embrace small moves. Dickinson provides a wealth of simple solutions illustrated with before-and-after photos. He shows how to use small moves for big dividends, such as taking out a wall between a kitchen and a hallway to make room for more kitchen storage.
Enhance curb appeal. The book offers solutions to common problems with a particular style, such as how to improve and enhance an entrance into a split-level home.
Open up to the outside. Dickinson provides some excellent examples of how we can use modern windows and doors to strengthen the connection between inside and outside. Our homes, says Dickinson, no longer need be “later-day caves.”
Find your home. Learning more about the style of the house you have will help you avoid obstacles in remodeling and recognize the best opportunities for improving your particular home.
Open up the inside. Snippets of advice sprinkled throughout the book are like refreshing raindrops that clear the cobwebs away. One such snippet: “If you walk through a room to get to a room, something is wrong.” You know — it’s when that new great room gets added onto a modest house, and the result is some kind of dyslexic creature that’s really two houses rather than one.
So rather than even building an addition, Dickinson suggests you make the most of what you already have. In this example, widening the opening between rooms strengthens this room’s connection with the rest of the home, increasing its utility and spaciousness.
Work with what you’ve got (before): Keeping the kitchen size the same while vaulting the ceiling dramatically increases the overall spaciousness of the room, as you’ll see in the next photo.
Work with what you’ve got (after): Walls, doors, appliances and even the skylight and kitchen sink were all left where they were. This all avoided costly plumbing, electrical and mechanical work and rework.
Working with what you’ve got (plans): Dickinson has included before-and-after floor plans for many of the examples. These plans help provide that much more context, allowing the reader to better understand what they may be able to do with the home they already have.
By Bud Dietrich AIA, Houzz
For more information on Windermere Evergreen please contact us here.
Energize Your Home This Winter With Bright Hues
Bright hues are eye catching, confident and cheering — so if winter’s got you feeling less than energized, why not tap into the power of bright colors to lift your spirits and your decor? Read on for 10 reasons to give bright, zesty hues a try in your home this winter.
1. Bright hues help with the whole rising and shining thing. Zingy brights are like caffeine for your space. If you’ve been dragging on these dark winter mornings, perhaps a colorful bedroom makeover would help things along. Artwork, pillows and a throw can be easily swapped out now, and again when you feel like a change.
2. Bright hues are playful. Lighten the mood at home with fun, colorful pieces, like the oversize geometric artwork and bright blue vintage rug shown in this space. Colors this bold are packed with personality and perfect in spaces where you host parties or play with your kids.
3. Bright hues are a winter palette cleanser. Been feeling oversaturated by red, green and woodsy decor? Acid brights can act as a refreshing palette cleanser. Clear away the holiday decor and start fresh with a clean, crisp pairing of white and brights.
4. Bright hues are mood boosters. Bright, bold colors are undeniably cheerful. Even if you typically shy away from bright hues, consider making an exception in the winter. The infusion of color can be a great pick-me-up!
5. Bright hues are gutsy. Claim your space and make a statement with a big decorating move, like bold wallpaper or a bright, graphic rug. Bright hues exude confidence — perfect when you are looking to make a fresh start in your life.
6. Bright hues offer contrast to the gray outdoors. Dismal weather got you down? Cheer up your foyer with sunshine yellow. Spaces with large windows can also become a bit of a downer when the skies are cloudy — refresh a living room or kitchen with sunshiny hues to counteract the gloom.
7. Bright hues bring a dash of romance. From the shiny red of London buses to the bright turquoise of a zippy Italian scooter, the colors of a place are often one of the most memorable parts of traveling. Bring back a bit of the romance of your favorite destinations with a collection of colorful travel photos on the wall. Or pick up colors from your most cherished places in smaller doses — like bright buttons on a dapper gray armchair.
8. Bright hues can help you feel more productive. Give your home workspace a jolt to keep yourself sharp and focused. Try a brightly hued desk chair or filing cabinet, or arrange your bookshelves in rainbow order. Even a vase of bright blooms and a new pen cup on the desk can do the trick!
Related: Outfit Your Workspace With Stylish Office Furniture
9. Bright hues wake up winter white. If your winter decorating scheme tends towards pure wintry whites and subtle glints of metallic hues, consider punching things up with a bright accent or two. In the space shown here, a cluster of pillows and a glamorous chandelier dripping in turquoise beads transforms a plain landing into a jaw-dropping one.
10. Bright hues give you a taste of spring when you need it most. Why wait for the first daffodils, when you can have a wonderfully bright yellow door right now? Stop trudging through winter waiting for spring, and treat yourself to springy colors today.
By Laura Gaskill, Houzz
For more information on Windermere Evergreen please contact us here.
What Can We Expect From The 2018 Housing Market?
It’s the time of the year when I look deep into my crystal ball to see what’s on the horizon for the upcoming year. As we are all aware, 2017 has been a stellar year for housing across the country, but can we expect that to continue in 2018?
Here are my thoughts:
Millennial Home Buyers
Last year, I predicted that the big story for 2017 would be millennial home buyers and it appears I was a little too bullish. To date, first-time buyers have made up 34% of all home purchases this year – still below the 40% that is expected in a normalized market. Although they are buying, it is not across all regions of the country, but rather in less expensive markets such as North Dakota, Ohio, and Maryland.
For the coming year, I believe the number of millennial buyers will expand further and be one of the biggest influencers in the U.S. housing market. I also believe that they will begin buying in more expensive markets. That’s because millennials are getting older and further into their careers, enabling them to save more money and raise their credit profiles.
Existing Home Sales
As far as existing home sales are concerned, in 2018 we should expect a reasonable increase of 3.7% – or 5.62 million housing units. In many areas, demand will continue to exceed supply, but a slight increase in inventory will help take some heat off the market. Because of this, home prices are likely to rise but by a more modest 4.4%.
New Home Sales
New home sales in 2018 should rise by around 8% to 655,000 units, with prices increasing by 4.1%. While housing starts – and therefore sales – will rise next year, they will still remain well below the long-term average due to escalating land, labor, materials, and regulatory costs. I do hold out hope that home builders will be able to help meet the high demand we’re expecting from first-time buyers, but in many markets it’s very difficult for them to do so due to rising construction costs.
Interest Rates
Interest rates continue to baffle forecasters. The anticipated rise that many of us have been predicting for several years has yet to materialize. As it stands right now, my forecast for 2018 is for interest rates to rise modestly to an average of 4.4% for a conventional 30-year fixed-rate mortgage – still remarkably low when compared to historic averages.
Tax Reform
Something that has the potential to have a major impact on housing are the current proposals relative to tax reform. As I write this, we know that both the House and Senate propose doubling the standard deduction, and the House plans to lower the mortgage interest deduction from $1,000,000 to $500,000. If passed, the mortgage deduction would no longer have value for home owners who would likely opt to take the standard deduction.
If either of the current proposals is adopted into law, the potential reduction in mortgage-related tax savings means the after-tax cost of home ownership will increase for most home owners. Additionally, both the House and Senate bills also end tax benefits for interest on second homes, and this could have a devastating effect in areas with higher concentrations of second homes.
The capping of the deduction for state and local property taxes (SALT) at $10,000 will also negatively impact states with high property taxes, such as California, Connecticut, and New York. Furthermore, proposed changes to the capital gains exemption on profits from the sale of a home (requiring five years of continuous residence as compared to the current two) could impact approximately 750,000 home sellers a year and slow the growth of home ownership.
Something else to consider is that all of the aforementioned changes will only affect new home purchases, which I fear might become a deterrent for current home owners to sell. Given the severe shortage of homes for sale in a number of markets across the country, this could serve to exacerbate an already-persistent problem.
Housing Bubble
I continue to be concerned about housing affordability. Home prices have been rising across much of the country at unsustainable rates, and although I still contend that we are not in “bubble” territory, it does represent a substantial impediment to the long-term health of the housing market. But if home price growth begins to taper, as I predict it will in 2018, that should provide some relief in many markets where there are concerns about a housing bubble.
In summary, along with slowing home price growth, there should be a modest improvement in the number of homes for sale in 2018, and the total home sales will be higher than 2017. First-time buyers will continue to play a substantial role in the nation’s housing market, but their influence may be limited depending on where the government lands on tax reform.
by Matthew Gardner, Chief Economist, Windermere Real Estate
For more information on Windermere Evergreen please contact us here.
Stage Your Home to Impress Holiday Guests
A few tricks used by professional home stagers can make your home holiday-guest-ready, even if you’re preparing for a visit from your in-laws, not potential buyers.
While friends and family might be more forgiving than a home-shopper would be, you’ll still want to create a clean and uncluttered atmosphere for making holiday memories. A major difference is, for friends and family, you don’t need to depersonalize. Tastefully placed photographs and kids’ hand-made masterpieces can help make a house a home, after all.
But you do want to make your place look and smell clean, and you might even want to evoke a sense of holiday magic and warmth. Michele Graham, a Long & Foster regional administrator and accredited home stager who works with agents in the greater Philadelphia area, offered these tips:
Cleanliness first. Make bathrooms sparkle and shine, since these are rooms every guest will probably see. Add fresh cut greens on top of the window treatments, and set out festive holiday hand towels or napkins. Keep small caddies of cleaning supplies in the bathroom and kitchen, or at least on each level of the home, to make clean-ups faster. In the kitchen, run a piece of fresh lemon through the garbage disposal and wipe off the splash guard, which can collect grime.
Clip an automobile air freshener to your shower curtain in a hidden spot to keep the bathrooms smelling good. You can use dryer sheets to do a quick dust job or polish up chrome faucets. Baby oil will make stainless steel appliances shine.
Add sparkle. Put something shiny in every room, whether it’s mirrors, mercury glass, silver or gold candlesticks, picture frames, or a string of white lights. The light will bounce off eye-catching shiny and metallic surfaces.
Bring in some green. Liven up your mantle or table with evergreen branches, holly boughs with berries, dogwood, and other décor provided by nature. You might find the perfect accents right in your own backyard.
Layer and add depth. A few silver and gold accessories add formality, while plaids and burlap are more casual. Embrace the palette of the season, with its gray sky, snow and evergreens. Even after the holidays, you can use white and silver accents around the house. You can add a pop of color using throw blankets and pillows.
Festive curb appeal. Greet your guests upon their arrival with window boxes filled with fresh-cut greens or even fake ones. Holly branches, pine cones and shiny round Christmas ornaments catch the eye.
Graham said you don’t have to spend a lot of money to get your home ready for the holidays. Most of the items she recommends can be found at dollar stores and thrift shops.
And one of the best ways to brighten your space is free. “Keep your window treatments open to let in as much natural light as possible,” Graham said. “It will add a wonderful glow to accent your décor.”
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