If you’ve been thinking about increasing your home’s value or just making your living space more comfortable, these ideas can help you start off simply. Before you start knocking out walls and renovating your roofline, consider these ways to make a big difference…cost-effectively!

1. Spruce Up Your Curb Appeal
Buyers often decide whether to look at your house before they even get out of the car. So, before you spend a lot of time and money remodeling the inside, take a good look at the outside. Washing windows, repainting trim, planting flowers and small shrubs, trimming tree branches and overgrown bushes, fixing screens, resealing your driveway, and mowing the lawn can make a big difference. Start out by making a list of 4 to 7 simple projects and then set aside an hour or two each day. In just one week, you – and potential buyers – will be surprised how appealing and welcoming your house looks when driving up.

2. Does Your Entryway Invite People In?
A cozy first impression is crucial. Now that you’ve boosted your curb appeal, it’s time to turn your attention inside – starting just inside the front door. To make sure your entryway invites people to come in – rather than turnaround and run – try adding a wicker chair and table outside the door along with a fresh coat of paint to your foyer.
For even more impact, replace old light fixtures and update the floor in your entryway with a throw rug or easy-to-apply self-adhesive linoleum squares. These projects are inexpensive and easy enough to do yourself in just a few hours.

3. Spiff Up that Old Bathroom
Remodeling an old bathroom can make a big impact. You should start by simply de-cluttering the countertop. It’s amazing how spacious even a small bathroom appears after the styling products, pictures and miscellaneous bathroom decorations are removed.
From there, you can freshen up the paint, replace that old shower curtain, add a new medicine cabinet on the wall, and even upgrade your faucet and shower head for very little money. With a little more money, you can also install a double sink or re-tile the floor.

4. Hot in the Kitchen
Renovating an outdated kitchen is practically a sure thing – as long as you don’t splurge on extravagant items like hand-painted Italian tile or built-in espresso machines. Instead, focus on the basics: replacing the handles on your cabinets and drawers, freshening up the paint, installing new flooring, adding a backsplash, and painting or re-facing your existing cabinets. You can also make a dramatic impact by installing new countertops and even replacing your appliances. All of these projects will go a long way to making a new buyer feel at home.

5. Add a Second Bathroom
Perhaps no improvement makes a bigger impact on your family’s comfort and your house’s appeal than adding a second bathroom. The number of bathrooms is always a big sticking point for potential buyers, especially families with two or three children.

Although adding a bathroom costs more than simply fixing up your old one, it also increases the value of your house more. Plus, having that second bathroom may help you sell your house faster than if it only has one, which is an important point to consider in today’s market. So, if you have a house with roughed-in plumbing just waiting for you to take the initiative, you may want to consider adding that second bathroom you’ve always wanted.

However, if your house doesn’t have roughed-in plumbing or floor plans that called for a future bathroom, you’ll definitely want to consult a Realtor to discuss how much a second bathroom will add to your home’s value. After all, if you have to start moving walls and re-plumbing your house just to add a bathroom, you may find that your time and money are better spent on a handful of smaller projects that will ultimately add more impact.

Plan Ahead and Avoid Headaches
Overall, the best advice about adding value to your home is to start small, work your way up, and always plan ahead. You don’t want to get halfway into a renovation only to find that you have to update your entire electrical system or that your time and effort was wasted on a renovation that doesn’t add as much value as you thought. With a little planning and prioritizing, you can make your house more comfortable and valuable with very little time and money!

Aware and prepared buyers help boost Western Washington home sales during June
KIRKLAND, Wash. (July 6, 2009) Encouraging seemed to be a common response from brokers upon reviewing the June activity summaries from Northwest Multiple Listing Service. The report shows inventory continues to shrink, pending sales increased more than 19.5 percent from a year ago, and median prices system-wide are up 4.4 percent since January.

The positive movement in our real estate market year over year is really very encouraging, remarked Ron G. Sparks, managing vice president of Coldwell Banker Bain. Compared to 12 months ago, the Puget Sound region has nearly 7,000 fewer homes listed for sale, and nearly 1,200 more homes under contract, he noted, adding, In anyone’s book, that’s substantial improvement.

J. Lennox Scott, chairman and CEO of John L. Scott Real Estate, echoed those comments. It’s encouraging to see that pending sales are at their highest since the credit bubble burst nearly two years ago, he stated. While the median home price is down about 9.5 percent from a year ago, prices have flattened over the past seven to nine months, he noted. This is an indication that the $8,000 tax credit is working and the market has reactivated itself in the more affordable and mid price ranges, Scott believes.

Northwest MLS brokers notched 7,733 pending sales of single family homes and condominiums (combined) in their 19-county market area last month. That’s a gain of 1,263 transactions from the same month a year ago, for a 19.5 percent increase. Seven counties reported jumps in pending sales of 30 percent or more: Cowlitz, Island, Kitsap, Mason, Pacific, Skagit, and Snohomish, with Kitsap County topping the list with its 55.6 percent increase.

Pending sales (offers made and accepted) in the four-county Puget Sound region (King, Kitsap, Pierce and Snohomish) rose more than 25 percent in June compared to the same month a year ago, increasing from 4,765 transactions to 5,693.

Closed sales and prices still lag a year ago, but prices are edging up since the beginning of the year. Brokers reported 5,146 closed sales of single family homes and condos during June, a dip of 4.3 percent from twelve months ago when they reported 5,379 completed transactions.

Viewed separately, the volume of closed sales of single family homes nearly equaled year-ago totals (4,463 closings last month, down from 4,516 for June 2008). Condo sales were off nearly 21 percent, dropping from 863 closings to 683.

The area-wide median price for last month’s closed sales of single family homes and condos combined was $285,000, a drop of 9.5 percent from the year ago figure of $314,900. In the Puget Sound region, the volume of closings nearly matched year-ago totals (3,885 versus 3,908), but prices are down about 10 percent. The median price for last month’s completed sales in the four-county area was $305,950; a year ago it was $340,000.

There is a definite upsurge in sales activity, from a pending sales perspective and a “lookers becoming buyers” perspective, observed NWMLS director Dick Beeson. Agents are reinvigorated that buyers can and will make decisions more today than any other time over the past 12 months, according to Beeson, the broker at Windermere Real Estate/Commencement Associates in Tacoma.

Beeson believes mortgage rates remaining low, declining inventories, and the recent stretch of warm, dry weather helped spur some buyers to act. He said the “word’ on the $8,000 tax credit has finally reached the streets, as more buyers come in aware, prepared and excited about taking advantage while the advantage is available. (The federal tax credit of up to $8,000 is available for qualified first-time home buyers purchasing a principal residence before December 1, 2009.)

House-hunters will find fewer choices than a year ago. MLS members added 11,410 listings of single family homes and condos to inventory during June, down 13.5 percent from the year-ago total of 13,187.

At month-end there were 34,278 single family homes and 7,039 condominiums offered for sale, for a total of 41,317 listings. That’s down 17.6 percent from a year ago when MLS members represented sellers of 50,143 properties.

Buyers continue to look for modestly priced homes, with first-time buyers accounting for about 40 percent of today’s market, according to estimates by Beeson.

Although the supply is plentiful with asking prices of current inventory ranging from $24,000 to $32 million, homes at the lower end of the price spectrum tend to be in short supply in some areas. In King County, for example, MLS data indicate less than 9 percent of the inventory of single family homes has an asking price under $250,000.

For condominiums in some submarkets, brokers report projects that demonstrate their market value are finding success. Sam Cunningham, managing broker and partner in Realogics Brokerage, which specializes in center city condominiums, believes prices are stabilizing and consumer confidence is improving.

Cunningham reports inventory levels in the downtown Seattle market have been declining for a year and there’s no new construction planned. He suggests timing the market for buyers may finally have more to do with preferred selection and interest rates than waiting for dramatic price drops.

MLS figures indicate the median sales price for condos that sold in Seattle’s downtown core last month was $449,450. That’s down about 8 percent from a year ago, but reflects four months of steady increases.

Commenting on the MLS report, Sparks, of Coldwell Banker Bain, remarked, If there is a downside, it might be that this improvement isn’t uniform across the region. As an example, he said his company’s Lynnwood office saw year-over-year closed sales increase 144 percent, while the Gig Harbor office reported a meager 4 percent gain.

Data show some neighborhoods are rebounding faster than others, Sparks observed. In what appears to be a transitional market, accurate neighborhood information is more critical than ever, so buyers, sellers and their agents really need to do their homework he emphasized.

Short sales continue to be a drag on prices and source of frustration for brokers and agents, according to Beeson. A National Association of REALTORS analysis revealed that distressed homes typically sell for 20 percent less than the normal market price, thereby drawing down the overall median price.

Many pending sales are yet to close because of short sales, which Beeson estimates take twice as long to close as a more conventional transaction. Many pendings have to be resold because the first buyer tires of waiting for the lender’s response.

Beeson also notes the next challenge will be reactions to the next round of foreclosed properties that are expected to come on the market in the next six months. He said there could be another dip in prices, but adds, I think we’ve been through the worst.

Northwest Multiple Listing Service, owned by its member brokers, is the largest full-service MLS in the Northwest. Its membership includes approximately 27,000 brokers and agents. The organization, based in Kirkland, currently serves 19 counties in western and central Washington.

We have started to get a lot more calls from our investor clients thinking about getting back into the market. This is certainly a great time to be thinking about buying investment real estate, whether it is a single family investment property, a condo investment or a commercial investment property such as an apartment or office space. Whatever your preference, all of these markets are signficantly deflated and investors will make great returns when the market rebounds. If you are interested in purchasing investment property, be sure to give us a call!

Here is a link to a good set of tools to help you with investment property!
http://www.trexglobal.com/partner/casey_sullivan

One of the most misunderstood topics among consumers is credit scoring. It’s interesting that it’s so misinterpreted given the degree that it can impact your life. That one number can mean the difference between being approved for that new home, car, or credit card, and the amount that you will pay to get it.

How credit scores are calculated
Credit scores run from 300 to 850 and are calculated based on a mathematical equation which calculates and weighs various items from your credit past. In the US, we use the fico equation developed by fair Isaac and company. All of your credit for the past 7 years (10 with certain types of bankruptcy) is complied and used to determine how good of a credit risk you are.

The equation has five main categories that grade your credit history with each category being weighted differently.

35% of your credit score is payment history
This is where on time payments will help you and late payments or collections will hurt you. Late mortgage payments will especially drop your score. Late payments are only reported once they are 30 days or more past due so if you miss that payment by only a couple days it shouldn’t hurt your credit.

30% of your credit score is how much you owe
Your debt may be a revolving trade line or installment loan. A revolving trade line is credit that has balances that can go up or down at anytime like a credit card. An installment loan is credit that has a set pay off, like a mortgage, car loan, or student loan. Keeping your balances low or paying down what you owe on these types of loans will increase your score. For good scoring keep your balances below 50% of the limit. For great scoring keep them below 30% of the limit.

15% of your credit score is credit history
For this category the scoring model looks at the age of your oldest account and the average age of all accounts. It also looks at how often you are using these accounts and how long it has been since you used them. Having a lot of old accounts is better than a lot of new accounts.

10% of your credit score is types of credit
Ideally what it is looking for is a healthy mix of credit such as one mortgage, one installment, one credit card, etc.

10% of your credit score is based on inquiries
Every time you apply for a loan or credit card and someone pulls your credit within the past 12 months it will show on your report and hurt your score . The reason inquiries are counted is because someone who is applying for a lot of credit within a short period of time indicates someone who could be over overextended and is not a good risk.

Note that if you check your credit yourself it is known as a ‘soft pull’ and will not impact your score. Also if you are rate shopping for a car or mortgage, any inquiries that are made within a 14 day period are counted as one inquiry.

If you are thinking about buying or refinancing a home and have a question regarding credit, please feel free to contact me