Finance • Real Estate News and Tips • July 16, 2024

Exciting News for Washington Homebuyers: The Covenant Homeownership Program is Here!

by Cheyanne Shere

A Step Towards Justice and Homeownership As of July 1, 2024, the Covenant Homeownership Program is officially open! This program, championed by the Housing Development Consortium, the Black Home Initiative, Rep. Jamila Taylor, Sen. John Lovick, and Rep. Frank Chopp, aims to address historical housing discrimination in Washington state. Passed with bipartisan support, the Covenant Homeownership Act creates a new pathway and funding source to help those affected by past discrimination achieve the dream of homeownership.

INFORMATION FOR HOMEBUYERS If you or your family have deep roots in Washington state (before 1968), you might be eligible for the Covenant Homeownership Program. For support, guidance, and financial assistance, call the Washington State Homeownership Hotline at 1-877-894-4663. Our team is ready to help you navigate this opportunity and beyond.

Frequently Asked Questions (FAQs)

About the Program

How does the Covenant Homeownership Program assist homebuyers? The program offers down payment and closing cost assistance in the form of a loan, secondary to the primary mortgage loan, with a 0% interest rate. This loan is repaid when you sell or refinance your home.

When does the program start? The Covenant Homeownership Program begins serving homebuyers in July 2024.

How do I apply? Simply call the Washington State Homeownership Hotline at 1-877-894-4663. There’s no separate application process. You’ll work with a Commission-trained lender to prequalify for a mortgage loan and establish your eligibility. If you’re not mortgage-ready yet, the hotline will provide free support to help you get there.

Who is eligible? Eligibility criteria include:

Household income at or below 100% of the Area Median Income (AMI) (area look up tool)
First-time homebuyer
The homebuyer or a parent/grandparent/great-grandparent lived in Washington state before April 1968
The pre-1968 resident must be Black, Hispanic, Native American, Alaska Native, Native Hawaiian, other Pacific Islander, Korean, or Asian Indian.

Why April 1968? The Fair Housing Act, which made racial discrimination in housing illegal, was passed in April 1968. Despite the law, discrimination persisted, but the state no longer had an official role in it.

What if I’m not eligible? No worries! There are other support programs available. Call the Washington State Homeownership Hotline at 1-877-894-4663 for information tailored to your needs. Most homebuyers earning under $180,000 a year can access financial assistance through the Housing Finance Commission’s down payment assistance programs.

Where does the funding come from? Starting in January 2024, a $100 document recording fee for real estate transactions will fund the program, projected to generate between $75 million and $100 million annually.

Oversight and Accountability The Washington State Housing Finance Commission oversees the program, with accountability ensured by the Covenant Homeownership Program Oversight Committee formed by the Department of Financial Institutions (DFI). An annual report will be submitted to the legislature to track progress.

ABOUT THE COVENANT HOMEOWNERSHIP STUDY In March 2024, the National Fair Housing Alliance released a detailed study outlining the framework for the Covenant Homeownership Program, confirming the ongoing impact of housing discrimination and recommending specific assistance measures.

Why is this Act needed? Homeownership is vital for building wealth and community stability. Yet, only 49% of BIPOC households in Washington are homeowners, compared to 68% of non-Hispanic white households. This Act aims to rectify these disparities through targeted assistance.

Want to learn more? Call the Washington State Homeownership Hotline at 1-877-894-4663 for more details and to see how you can benefit from this groundbreaking program.

Let’s work together to turn the dream of homeownership into a reality for everyone in Washington!

Link to program can be found at WSHFC Covenant Homeownership Program

Real Estate News and Tips • July 16, 2024

Homes Selling Below List Price: Good News for Buyers, Challenges for Sellers

by Cheyanne Shere

Homes sold below their list price at the peak of the housing season, a shift that could tip the real estate market in favor of buyers, according to Redfin.

During a four-week span in May and June, the typical home sold for 0.3% less than its asking price, Redfin reports. This is significant because, in the past few years, homes usually sold at or above list price during this peak season. This year, that trend has changed.

Daryl Fairweather, Redfin’s chief economist, says, “The housing market is starting to move to the buyer’s favor.” Redfin also found that fewer than one-third of homes – 32% – sold over list price in the four weeks ending June 23. This is the lowest rate for late spring since 2020, signaling good news for buyers but not so much for sellers.

Ryan Sypek, a broker associate at Compass real estate in Los Angeles, observes that “buyers have the power” now, a notable change after months of a challenging market for buyers. Prices and mortgage rates have been high, with a shortage of new homes and homeowners reluctant to sell due to low interest rates on their current mortgages.

Earlier this year, Fairweather described the market as “the least affordable housing market in recent memory” for homebuyers. However, the market has recently loosened up a bit for buyers. New listings are up 8.2% from a year ago, and 62% of listings in May had been on the market for at least 30 days, compared to 50% two years earlier. “During the pandemic, I had a house that had 60 offers on it,” Sypek recalls. “Now, if I have a listing, I’m lucky if I’m getting four.”

Economists suggest that sellers may be setting their asking prices too high, not realizing they’re entering a buyer’s market. Fairweather explains, “People are setting prices based on what they saw their neighbors’ homes sell for three or four months ago, and maybe that was when there were more buyers on the market.” During much of the pandemic, sellers enjoyed bidding wars, a trend that is now reversing.

Danielle Hale, chief economist at Realtor.com, notes, “The last couple years, it became normal for sellers to get more than the asking price, but that was really an aberration fueled by high demand and low inventory.” Now, inventory is rising, with the number of listings up 37% from June 2023 to June 2024, marking the eighth consecutive month of growth.

“We’re starting to see more affordable homes on the market,” Hale says, which is a welcome trend for buyers. The median sale price is at a record $397,250, nearly 5% higher than a year ago, and the average interest rate for a 30-year fixed mortgage is 7.4%, double the rate from the start of 2022. This puts the typical homebuyer’s monthly payment at $2,785.

During the pandemic, homes often sold well above asking price. Now, with rising inventory and homes sitting unsold, buyers have more options. Sypek notes a “lack of urgency” from buyers, which historically drives prices up. He also cautions that the national real estate market is a constellation of smaller markets, each with its own trends.

In some regions, like Seekonk, Massachusetts, and outside Philadelphia, homes are still selling above asking price. Jess Clegg, a broker-owner at Next Nest Real Estate, recently closed on two homes that sold for $38,000 and $76,000 over asking. Michael Maerten, chairman of the Board of Tri-County Suburban REALTORS, notes that local sellers have reaped 102.7% of asking price in the last 30 days.

The key for sellers is to price their homes appropriately. “If you’re pricing your home appropriately,” Clegg advises, “then you’re going to sell for over list.”

Stay tuned for more updates as the real estate market continues to evolve!

Original article by Daniel de Visé USA TODAY can be found at Why the housing market is getting better for buyers (usatoday.com)

Real Estate News and Tips • July 16, 2024

Western Washington Property Values Rise in 2024 – But It’s Not Uniform

by Cheyanne Shere

Home values across Western Washington are generally on the rise for 2024, but the increase varies by community. Meanwhile, many office spaces and condos are experiencing a decline in value.

“After dramatic fluctuations in the residential market during the COVID years, values have returned to a steady level of increase,” stated King County Assessor John Wilson. “The volatility now is in the commercial sector and among condominiums.”

Property owners in Western Washington will soon receive notices detailing how much their property values have changed over the past year. These updates are crucial for determining next year’s taxes, as 2024 property values will influence 2025 tax bills. King County alone has over 720,000 property owners who will be receiving these notices.

Pierce County Assessor-Treasurer Mike Lonergan emphasized that a rise in property values doesn’t automatically mean higher property taxes next year. State law restricts taxing districts to a 1% increase annually unless voters decide otherwise.

“Your property tax in 2025 will be based on the new 2024 value multiplied by the combined tax rates of your school district, city, fire district, and other local districts, plus the statewide school levy that everyone pays,” Lonergan explained. “So, a lot depends on public votes such as levy lid lifts and bond issues.”

King County Property Values

In King County, most residential areas can expect an average value increase of about 10%. However, condos have seen a decline in value due to fewer sales in 2023. Commercial property values are mixed, especially in downtown Seattle, where they have dropped significantly.

Key points from the King County Assessor’s Office:

Seattle home values increased mostly in the single digits.
Some east King County areas saw residential values increase by about 20%.
Countywide condo values have declined by single digits, with downtown Seattle condos seeing the largest drop.
Industrial property values are up 10%.
Larger office spaces are down 30-35%, with many long-term leases renewing for shorter periods and less space.
Commercial values in downtown Seattle, Pioneer Square, and Lake Union are down 35-40%.

Pierce County Property Values

Home values in Pierce County have increased by an average of 6.2% this year, bringing the average residential property value from $521,300 to $535,500. This follows a 3% drop in value last year.

“The largest home value increases are around 7% in Orting, Eatonville, and Lakewood, Tacoma, Puyallup, and Sumner,” Lonergan noted. “The smallest increases were under 1% in Fircrest and 3% in Milton.”

The Pierce County Assessor-Treasurer Office reported mixed results for other property types. Warehouses and mobile home parks saw substantial increases, while commercial properties had a moderate 3% value increase. Retail property values were fairly flat, and office spaces lost value.

Snohomish County Property Values

According to the Snohomish County Assessor’s Office, the 2023 market showed steady appreciation in residential sale prices, while the commercial property market remained relatively flat. The 2024 assessed valuations for 2025 taxes saw an overall increase of 4.49% countywide, with residential properties averaging a 5.36% increase and commercial properties a 1.34% increase.

Stay tuned for more updates and insights into the real estate market trends in Western Washington!

Original article by KUOW STAFF can be found at KUOW – Most of western Washington will see a rise in 2024 property values, but not everywhere

Finance • June 4, 2024

Weekly Mortgage Demand Dips as Rates Climb Again

by Cheyanne Shere

Mortgage demand has hit a three-month low as rates start to climb once more. The average interest rate for 30-year fixed-rate mortgages with conforming loan balances (up to $766,550) edged up to 7.05% from 7.01%. This uptick followed a brief period of lower rates throughout much of May.

This slight increase, the first in four weeks, caused a noticeable shift in mortgage activity. Rates had dipped into the high 6% range but shot up in the second half of the week. Consequently, total mortgage application volume dropped by 5.7% last week, according to the Mortgage Bankers Association’s seasonally adjusted index.

Joel Kan, an economist at MBA, noted, “Both purchase and refinance applications fell, pushing overall activity to the lowest level since early March. Borrowers remain sensitive to small rate increases, impacting the refinance market and keeping purchase applications below last year’s levels.”

Refinance applications, which had been on a recovery path, plunged 14% for the week but still showed a 12% increase compared to the same week a year ago. Meanwhile, applications for home purchases dropped by 1% for the week and were 10% lower than a year ago.

Kan also highlighted ongoing challenges in the housing market: “There continues to be limited levels of existing homes for sale, and many buyers are struggling to find listings in their price range that meet their needs.”

Adding to the rate increase, mortgage rates jumped sharply at the start of this week, rising 12 basis points on Tuesday alone. This followed remarks from Minneapolis Federal Reserve President Neel Kashkari, who stated that he needs to see “many more months of positive inflation data” before feeling confident about dialing back interest rates.

Stay tuned for more updates as the market continues to evolve!

Info originally read on NBC news.

Real Estate News and Tips • June 4, 2024

Buyers Gaining an Edge in the Housing Market: Insights from Real Estate Experts

by Cheyanne Shere

Great news for homebuyers: the housing market is starting to tilt in your favor! Compass cofounder and CEO Robert Reffkin recently shared some insights that highlight how the market dynamics are changing.

Reffkin told CNBC that currently, 30% of the housing inventory has seen price drops, a level not seen in the past decade. Additionally, there’s been a 16% increase in available homes. “It’s a different environment. We are now seeing more sellers than buyers,” he said.

The trend is especially noticeable in the South, where earlier price surges are now leading to more significant price cuts. Florida, in particular, has been affected by rising home insurance costs, which have jumped by 40% year over year, putting extra pressure on asking prices.

“Sellers need to be mindful of how buyers are reacting to high prices,” Reffkin advised. “If your home is well priced, it will sell quickly. But if not, it will sit on the market, leading to price drops. When that happens, buyers sense an opportunity, and it could hurt you even more.”

Interestingly, high-end buyers are feeling more confident due to recent stock market gains. “You don’t need lower mortgage rates if your stock portfolio is at an all-time high,” Reffkin noted.

A recent report highlighted that Texas and Florida are now among the best places for buyers, according to Zillow’s market heat index. This index considers factors like the share of homes with accepted offers within 21 days, the share of homes with price cuts, and engagement with listings on Zillow’s platform.

Zillow mentioned, “Would-be buyers who witnessed intense competition in sunny Texas and Florida markets earlier on in the pandemic aren’t seeing such a frenzy now.”

Redfin CEO Glenn Kelman also shared an optimistic outlook for the housing market in the latter half of 2024. However, he cautioned that this depends on potential rate cuts from the Federal Reserve. Without these cuts, sales might slow down or even decline. For now, he suggests that while it’s not time to celebrate with champagne, the market is looking a bit better, and that’s something worth noting.

This story originally appeared on Fortune.com.

Events • April 9, 2024

Step Back in Time: Join Us at the 1920s Speakeasy in Port Angeles!

by Cheyanne Shere

Hey there, fellow Port Angeles party-goers!

I’ve got some exciting news to share with you all. Mark your calendars because on April 13th, we’re taking a trip back in time to the roaring 20s with a fabulous speakeasy-themed event at the Elks Lodge right here in Port Angeles, Washington! 🎉

Get ready to step into a world of glitz, glamour, and all that jazz as we transport ourselves to the era of flappers and gangsters. The event promises to be the bee’s knees with live bands, delicious food, and even secret passages to explore throughout the lodge’s six floors of entertainment! Can you say swanky?

Now, here’s the scoop – the dress code for this soirée is strictly 1920s chic. So, dust off your fedoras, polish those pearls, and start planning your Gatsby-worthy ensemble because we’ve got less than a week to transform into the ultimate flapper or dapper gent!

But fear not, my friends! If you’re wondering where to find the perfect 1920s attire and accessories in Port Angeles, I’ve got you covered.

The Quest for 1920s Attire Now, here’s the fun part – we’ve got less than a week to put together our 1920s costumes, and we’re diving headfirst into the challenge! So where does one find the perfect attire and accessories to channel the spirit of the Jazz Age?

Best Places to Find 1920s Fashion In our quest for vintage threads, we’ve scoured the streets of Port Angeles and unearthed some hidden treasures. Here are a few spots that have caught our eye:

Vintage Boutique: Head to the nearest vintage boutique in town for a curated selection of 1920s-inspired clothing and accessories. These shops are a treasure trove of retro finds, perfect for piecing together an authentic ensemble.
Thrift Stores: Don’t underestimate the power of thrift stores! You never know what gems you might uncover among the racks of pre-loved clothing. Keep an eye out for flapper dresses, feather boas, and bowler hats – they’re sure to add a touch of 1920s flair to your outfit.
Costume Shops: If all else fails, pay a visit to the local costume shop for a wide range of period-appropriate costumes and accessories. Whether you’re channeling a dashing gentleman or a glamorous flapper, you’re bound to find something that suits your style.

Exploring Port Angeles for Vintage Finds In addition to hunting for the perfect outfit, we’ve also been exploring the charming streets of Port Angeles in search of hidden treasures. Here are a few stores that have caught our attention:

Antique Shops: Wander through the quaint antique shops scattered throughout Port Angeles, where you’ll discover a diverse array of vintage trinkets, jewelry, and clothing. Who knows, you might stumble upon a piece of history that speaks to you!
Flea Markets: Keep an eye out for local flea markets and vintage fairs, where vendors gather to showcase their wares. It’s the perfect opportunity to hunt for unique finds and strike up conversations with fellow vintage enthusiasts.
Artisan Markets: Visit artisan markets and craft fairs in the area, where local artists and makers showcase their handmade creations. You’ll find everything from handmade jewelry to bespoke accessories that perfectly complement your 1920s ensemble.

So, what are you waiting for? Grab your tickets at https://navalelks.ticketleap.com/lost-in-the-lodge2/and let’s get ready to party like it’s 1929! See you there, old sport!

Finance • March 14, 2024

Your Path to Financial Security

by Cheyanne Shere

Unlocking Home Equity

Understanding home equity is the key to unlocking your home’s hidden wealth potential. It’s the difference between your home’s market value and what you owe on it, offering a unique opportunity for financial growth. Let’s dive into the details of what home equity is, how it works, and why it matters.

What is Home Equity? Home equity is the value of your home minus any outstanding mortgage balance. It grows over time through two main avenues:

Principal Payments: As you make mortgage payments, you reduce your loan balance, increasing your equity.
Market Appreciation: The value of your home may increase over time due to market trends or improvements you make to the property.

How Does Home Equity Work? When you purchase a home, you and your lender share ownership. Your down payment represents your initial stake, with the lender covering the rest. As you pay down your mortgage, your equity stake grows while the lender’s share decreases. Think of it as gradually converting your debt into an asset.

Accessing Home Equity: Your Options There are several ways to tap into your home equity:

Home Equity Loan: This second mortgage allows you to borrow against your equity, typically up to 80% of its value. It provides a lump sum of cash, often used for home improvements or debt consolidation.
Home Equity Line of Credit (HELOC): Similar to a credit card, a HELOC offers a revolving line of credit based on your equity. It provides flexibility for ongoing expenses or projects, with interest rates that may vary over time.
Cash-Out Refinance: By refinancing your existing mortgage, you can borrow more than you owe and pocket the difference. This option is popular for lowering interest rates or adjusting loan terms.

How to Determine Your Home Equity Use a home equity calculator to estimate your equity based on current market values and your remaining mortgage balance. For a precise assessment, consider hiring an appraiser to evaluate your home’s worth.

Why Home Equity Matters Building home equity is a smart long-term investment strategy. It offers several benefits:

Wealth Building: Mortgage payments contribute to your equity, serving as a form of forced savings. Unlike depreciating assets, like vehicles, your home is likely to appreciate in value over time.
Financial Flexibility: Accessing your home equity can provide funds for major expenses, investment opportunities, or debt consolidation.

The Importance of Patience Growing home equity takes time and commitment. Staying in your home for at least five years is often recommended to recoup initial costs and maximize equity gains. Remember, the longer you own your home, the more equity you’re likely to accumulate.

In conclusion, understanding and leveraging home equity is a vital step towards achieving financial stability and building wealth. Whether you’re considering borrowing against your equity or planning for the future, harnessing the power of home equity can unlock a world of financial possibilities.

FAQs • Home Maintance • December 3, 2023

How to Winterize Your Home in Port Angeles, Washington

by Cheyanne Shere

How to Winterize Your Home in Port Angeles, Washington

Winter is coming, and if you live in Port Angeles, Washington, you know that it can bring cold temperatures, rain, snow, and ice. While winter can be a beautiful and cozy season, it can also pose some challenges for your home. That’s why it’s important to winterize your home before the cold weather arrives, to protect it from damage, save energy, and keep you and your family comfortable and safe. In this blog post, I’ll share some tips and tricks on how to winterize your home in Port Angeles, Washington, based on the average weather and climate of the area.

What is the average weather and climate in Port Angeles in winter?

Port Angeles has a sub-oceanic climate, with mild, rainy winters and mild, fairly sunny summers. The town is located in the northwest of Washington state and overlooks the Strait of Juan de Fuca. It is in the area protected by the Olympic Mountains, where there is a relatively dry and sunny microclimate. However, winter can still bring some cold and snowy days, especially at higher elevations.

According to the historical weather data, the average temperature of the coldest month (December) is 3.9 °C (39.1 °F), with a minimum of 0.8 °C (33.4 °F) and a maximum of 7.1 °C (44.8 °F). The average precipitation amounts to 135 mm (5.3 in) in December, mostly in the form of rain, but sometimes also snow. The average snowfall is 3.42 inches in December, but it can vary greatly depending on the year and the location. The snow usually stays on the mountain, leaving the town snow-free, but occasionally there can be a heavy snowfall, as happened in February 2011 and 2019. The current weather forecast shows a flood watch for Port Angeles until December 7, due to excessive rainfall from a long-duration atmospheric river event.

How to winterize the outside of your home in Port Angeles?

One of the first steps to winterize your home is to take care of the outside. Here are some things you can do to prepare your home exterior for winter:

Clean your gutters and downspouts. Clogged gutters can cause water to overflow and damage your roof, siding, and foundation. They can also create ice dams and icicles that can pose a hazard. Remove any leaves, twigs, and debris from your gutters and downspouts, and make sure they are securely attached and draining properly. You can use a ladder, a hose, a gutter scoop, or a leaf blower to do this task, or hire a professional if you prefer.

Seal any gaps and cracks. Cold air can enter your home through any gaps and cracks in your foundation, windows, doors, and walls. This can lower your indoor temperature, increase your heating bills, and cause moisture and mold problems. To prevent this, you should seal any gaps and cracks with caulk, weatherstripping, or expanding foam. Pay special attention to the areas around pipes, vents, electrical outlets, and wires, as they can be entry points for pests as well.

Inspect your roof and chimney. Your roof and chimney are exposed to the elements and can suffer from wear and tear, leaks, and damage. To avoid costly repairs and potential hazards, you should inspect your roof and chimney before winter. Look for any missing, loose, or damaged shingles, tiles, or flashing, and replace or repair them as needed. Check for any signs of leaks, mold, or rot, and fix them as soon as possible. If you have a chimney, make sure it is clean and clear of any obstructions, such as nests, leaves, or creosote. You can use a flashlight, binoculars, or a drone to inspect your roof and chimney, or hire a professional if you prefer.

Winterize your outdoor faucets and pipes. Frozen pipes can burst and cause water damage and flooding. To prevent this, you should winterize your outdoor faucets and pipes before the first freeze. Turn off the water supply to your outdoor faucets and drain any remaining water from them. Disconnect and store any hoses, sprinklers, or other attachments. Cover your outdoor faucets with insulated faucet covers or wrap them with towels or rags. If you have any pipes that are exposed or in unheated areas, such as in the garage, basement, or crawl space, you should insulate them with foam pipe insulation or heat tape. You can also leave a trickle of water running from your indoor faucets to prevent freezing.

Winterize your pool and spa. If you have a pool or spa, you should winterize them to protect them from freezing and algae growth. Depending on the type and size of your pool or spa, you may need to drain some or all of the water, or add chemicals to balance and sanitize it. The water pH, chlorine or non-chlorine shock, and algaecide can all be used to prepare your pool water for the winter. Clean your filters thoroughly before covering your pool or spa (if you plan to) and once during the winter months to keep from finding a growing green swamp when you uncover your pool or spa. You can also hire a professional pool service to winterize your pool or spa for you.

How to winterize the inside of your home in Port Angeles?

After you have taken care of the outside of your home, you should also winterize the inside. Here are some things you can do to prepare your home interior for winter:

Change your furnace filter and tune up your heating system. Your furnace filter should be changed every month or every three months, depending on the type and quality of the filter. A dirty filter can reduce the efficiency and performance of your heating system, as well as the air quality in your home. You should also have your heating system checked and tuned up by a professional once a year, preferably before winter. This can help you prevent any breakdowns, improve your comfort and safety, and save energy and money.

Test your smoke and carbon monoxide detectors and replace the batteries. Smoke and carbon monoxide detectors are essential for your home safety, especially in winter, when you use your heating system, fireplace, or candles more often. You should test your smoke and carbon monoxide detectors every month and replace the batteries every six months, or as needed. You should also have at least one smoke detector and one carbon monoxide detector on each level of your home, and near the bedrooms and the kitchen. If you don’t have them, you should install them as soon as possible.

Reverse your ceiling fans. Ceiling fans can help you save energy and money in winter, as well as in summer. By reversing the direction of your ceiling fans, you can create an upward airflow that pushes the warm air down and distributes it evenly throughout the room. This can make you feel warmer and reduce your need for heating. To reverse your ceiling fans, you should turn them off, wait for the blades to stop, and flip the switch on the base of the fan. The blades should spin clockwise in winter and counterclockwise in summer.

Add insulation and curtains. Insulation can help you keep your home warm and cozy in winter, as well as cool and comfortable in summer. It can also reduce your energy consumption and bills. You should check the insulation level in your attic, walls, and floors, and add more if needed. You can use fiberglass, cellulose, foam, or other materials to insulate your home. You should also add curtains or drapes to your windows, especially if they are single-pane or drafty. Curtains can act as an extra layer of insulation and block the cold air from entering your home. You can choose thick, heavy, or thermal curtains for better insulation, and open them during the day to let the sunlight in and close them at night to keep the heat in.

Conclusion

Winterizing your home is a smart and easy way to protect your home from winter damage, save energy and money, and enjoy a warm and cozy winter. By following these tips and tricks, you can winterize your home in Port Angeles, Washington, and be prepared for whatever winter brings. We hope this blog post has been helpful and informative for you. If you have any questions or comments, please feel free to leave them below. And if you’re looking for a real estate agent in Washington state who can help you buy or sell your home, please contact us today. I’d love to hear from you and assist you with your real estate needs.

FAQs • Home Maintance • December 3, 2023

Home Warranty 101

by Cheyanne Shere

Home Warranty 101: What You Need to Know Before Buying One

If you’re a homeowner in Washington state, you might have heard of home warranty plans and wondered if they are worth it. A home warranty is a service contract that covers the repair or replacement of certain home systems and appliances when they break down due to normal wear and tear. Sounds good, right? But before you sign up for one, you should know the pros and cons of home warranty plans and how they differ from homeowners insurance and builder warranties. In this blog post, I’ll give you the lowdown on home warranty plans and help you decide if they are right for you.

What are the benefits of home warranty plans?

One of the main benefits of home warranty plans is peace of mind. You don’t have to worry about finding a reliable contractor or paying for expensive repairs when something goes wrong with your home. With a home warranty plan, you just pay a monthly or annual fee and a service call fee, and the home warranty company will take care of the rest. They will send a qualified technician to your home and cover the cost of repairing or replacing the covered item, up to a certain limit.

Another benefit of home warranty plans is financial planning. You can avoid unexpected and large expenses that can strain your budget and savings. Home warranty plans can also help you save money on maintenance and extend the lifespan of your home systems and appliances. Some home warranty companies even offer discounts and perks for their customers, such as free credit monitoring, roof leak coverage, or lifetime parts and labor guarantee.

What are the drawbacks of home warranty plans?

Home warranty plans are not perfect, and they have some drawbacks that you should be aware of. One of the drawbacks is that home warranty plans do not cover everything. They only cover the items that are listed in your contract, and they may have exclusions, limitations, and conditions that apply. For example, some home warranty plans may not cover pre-existing conditions, improper installation, code violations, or cosmetic defects. Some home warranty plans may also require you to use their network of contractors, which may limit your choices and quality of service.

Another drawback of home warranty plans is that they may not be worth the cost. Depending on the age, condition, and value of your home and its systems and appliances, you may end up paying more for the home warranty plan than what you would pay for repairs or replacements out of pocket. Home warranty plans also have deductibles, service call fees, and coverage caps that can add up over time. You may also have to deal with delays, denials, or disputes when filing a claim or requesting service.

How do home warranty plans differ from homeowners insurance and builder warranties?

Home warranty plans are different from homeowners insurance and builder warranties in several ways. Homeowners insurance is a type of insurance that covers your home and personal property from damage or loss caused by events such as fire, theft, vandalism, or natural disasters. Homeowners insurance does not cover the normal wear and tear of your home systems and appliances. Home warranty plans are service contracts that cover the repair or replacement of your home systems and appliances when they break down due to normal wear and tear. Home warranty plans do not cover damage or loss caused by events such as fire, theft, vandalism, or natural disasters.

Builder warranties are service contracts that cover workmanship and some materials and systems for newly built homes only. Builder warranties usually last for one year and may have different terms and conditions depending on the builder. Builder warranties do not cover appliances, unless they are provided by the builder. Home warranty plans are service contracts that cover the repair or replacement of your home systems and appliances, regardless of whether they are new or old. Home warranty plans usually last for one year and can be renewed annually.

Do you need a home warranty plan?

The answer to this question depends on your personal situation and preferences. Some factors that you may want to consider are:

The age, condition, and value of your home and its systems and appliances. Older homes and systems and appliances may be more prone to breakdowns and repairs, which may make a home warranty plan more worthwhile. However, older homes and systems and appliances may also have more exclusions and limitations in the home warranty contract, which may reduce the value of the plan.
The cost and frequency of repairs or replacements. If you have a history of frequent or costly repairs or replacements, you may benefit from a home warranty plan that can help you save money and hassle. However, if you have a history of few or cheap repairs or replacements, you may be better off paying out of pocket and saving the home warranty fee.
The availability and quality of contractors. If you have trouble finding or trusting reliable and qualified contractors in your area, you may appreciate the convenience and security of a home warranty plan that can connect you with their network of contractors. However, if you have access to and prefer your own contractors, you may not like the restriction and uncertainty of the home warranty plan.
The level of risk and comfort. If you are risk-averse and like to have a backup plan for unexpected expenses, you may enjoy the peace of mind and protection of a home warranty plan. However, if you are risk-tolerant and confident in your ability to handle unexpected expenses, you may not need the extra coverage and cost of a home warranty plan.

How to choose the best home warranty plan for you?

If you decide that a home warranty plan is right for you, you should do some research and comparison before buying one. Here are some tips to help you choose the best home warranty plan for you:

Compare different home warranty companies and plans. You should compare the coverage, cost, and reputation of different home warranty companies and plans. You can use online tools and reviews to help you with your comparison. For example, you can check out the best home warranty companies in Washington according to This Old House, or the home warranty ratings and reviews by U.S. News.
Read the fine print. You should read the contract carefully and understand what is covered and what is not, as well as the exclusions, limitations, and conditions that apply. You should also pay attention to the deductibles, service call fees, coverage caps, and cancellation policies. You should ask questions and clarify any doubts before signing the contract.
Negotiate the terms. You may be able to negotiate the terms of the home warranty plan with the home warranty company or the seller of the home. You may be able to get a lower price, a higher coverage limit, or a longer contract duration. You may also be able to add or remove items from the coverage, or choose your own contractors.

Conclusion

Home warranty plans are service contracts that can help you cover the repair or replacement of your home systems and appliances when they break down due to normal wear and tear. Home warranty plans have pros and cons, and they differ from homeowners insurance and builder warranties. Whether you need a home warranty plan or not depends on your personal situation and preferences. If you decide to buy a home warranty plan, you should compare different options and read the fine print before signing the contract.

I hope this blog post has been helpful and informative for you. If you have any questions or comments, please feel free to leave them below. And if you’re looking for a real estate agent in Washington state who can help you buy or sell your home, please contact me today. I’d love to hear from you and assist you with your real estate needs.

FAQs • Real Estate News and Tips • October 22, 2023

Unlocking the Potential: Converting a Manufactured Home to Real Property

by Cheyanne Shere

Can a manufactured home become real property?

The answer is a resounding yes, but with some crucial considerations. The process of classifying a manufactured home as real property varies by state and local jurisdictions. State-specific statutes outline the procedures for this classification, which may involve documents like a Certificate of Title or an affidavit of affixture.

Converting a manufactured home to real property can be a game-changer for homeowners.

Real property status offers several advantages, including enhanced financing options and favorable tax treatment. A manufactured home classified as personal property is typically installed on a temporary foundation, allowing for mobility. In contrast, real property classification involves permanent attachment to land, similar to traditional site-built homes.

The benefits of conversion extend to financing, taxation, and appreciation rates.

Real property status opens doors to more favorable loan options, such as Land/Home and LandPlus loans. These loans provide terms and conditions similar to conventional mortgages, allowing buyers to purchase both a manufactured home and land together. Additionally, there are refinancing options available, which can help reduce repayment terms, lower monthly payments, consolidate debt, or tap into home equity.

Tax implications also vary significantly between personal and real property. Homebuyers of personal property may face higher tax rates, especially in states without exemptions or sales tax reductions for such homes. In contrast, converted real property often enjoys tax benefits, making it a more financially attractive option.

Furthermore, real property, whether a manufactured or site-built home, tends to appreciate in value more rapidly than personal property. With proper maintenance and remodeling, manufactured homes permanently affixed to land can appreciate similarly to traditional homes.

Converting a manufactured home to real property typically involves the following steps:

HUD Certification Check: Ensure your home has a HUD certification placard, confirming it meets the required building standards for conversion.
Permanent Foundation: If your home is not already on a permanent foundation, you’ll need to establish one, removing wheels, axles, and towing hitches in the process.
Utility Connections: Ensure utilities are connected and approved by the county code department.
Certification of Location: File a certification of location, affirming that your manufactured home is tied to a land parcel.
Document Gathering: Collect essential documents, including the decal number, the last-issued HCD certificate of title, and the last-issued original HCD registration card. If you own both the home and the land, the titles and deeds must match to complete the conversion application.

In summary, converting your manufactured home to real property is a viable path to realizing the benefits of homeownership. Whether you already own a manufactured home or are considering one, the option to convert to real property provides financial advantages that mirror those of traditional homeownership. Our professionals can guide you through financing and refinancing options, helping you achieve your dream home without the need to purchase a new one.