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Drop in Mortgage Rates, What that Means for You
Mortgage rates rise and fall in response to varying inflation. If 7% was too high for you, it is likely now a better time to connect with your lender to see if the current rates better align with your monthly housing allowance goals, as mortgage rates have begun to decline. Keeping an eye on inflation will offer you a strong indicator to where mortgage rates will go.
While there is no comparison to the rates offered at the beginning of 2022 there is hope that they will ease a bit from the dramatic climb.
Buyers Purchasing Power
If you are considering buying, this decline in mortgage rates means an increase in your purchasing power. For example, let’s assume you want to buy a $400,000 home with a monthly payment between $2,500 and $2,600. Consider the chart below to see how your purchasing power changes as mortgage rates move up and down. The red demonstrates payments above your desired threshold while the green represents payments within and below your desired price range.
This is a small example of how a little quarter-point change in mortgage rates can significantly impact your monthly mortgage payment. It is of the utmost importance to work with a trusted real estate professional and lender who follow the market and understand the projected mortgage rates for the days, months, and year ahead,
If you are considering buying and do not have a trusted real estate broker already on your side, connect with us and we will pair you with a broker that will meet your needs.
A Different Approach to Developing Wealth
Mynd recently released their 2022 Consumer Insights Report that demonstrates how millennials and Gen Z’s have taken a different approach to developing wealth than previous generations.
For example, while 9% of Baby Boomers are contemplating the idea of investing in rental properties over 43% of Millennials and Gen Zs are choosing to remain in their current living environments and invest in rental properties elsewhere to build their wealth.
BUT IS IT WORKING?
This strategy is becoming increasingly popular. It allows the investor to remain living without disruption to their lifestyle in a place they may not be able to afford to purchase a home of their own. Instead of uprooting their lives and relocating elsewhere to attain the dream of homeownership the investor achieves homeownership by purchasing a home in a more affordable location with the intention of renting it out.
With no disruption to their life, they become a homeowner and investors at the same time. Their purchase not only creates monthly passive income for their pocketbooks but also builds equity over time – ultimately increasing their overall net worth.
They can later choose to continue to rent out the home, sell for an increased price, or move into the home if or when they want or need to.
READY TO EXPLORE THIS APPROACH?
If you would like to explore this idea further connect with us so we can help you build your wealth through real estate.
VA Home loans help Veterans Reach The American Dream
VA Home loans help veterans reach the American dream.
If you or a loved one has served in the military this article is meant for you.
It is important for you to not only know that there are Veterans Affairs (VA) home loans available to you, but also understand the program, its purpose, and the benefits available to you at its fullest.
Follow along as we break it down into bite-size pieces so that you can be best prepared for the purchase of your own home.
UNDERSTAND THE PROGRAM
Veteran Affairs home loans provide millions of veterans the ability to purchase their own homes. They have been providing these types of loans over the past 78 years.
To be eligible for a VA home loan one must be an active service member, a veteran, or an eligible surviving spouse.
UNDERSTAND ITS PURPOSE
The U.S. Department of Veterans Affairs wants to say thank you for serving by making homeownership a real possibility for those who have dedicated their lives to serving our country. They have made it their mission to serve you by providing home loan guarantee benefits in addition to other housing-related programs that assist you in buying, building, repairing, retaining, or adapting a home for your own personal use.
UNDERSTAND THE BENEFITS
Some of the major benefits of using a VA home loan is that most eligible borrowers can purchase the home with NO DOWN PAYMENT! That means you don’t have to save up to buy your own home and you are not penalized for not having a down payment. Typically, most other loans that have down payments below 20% require what is called Private Mortgage Insurance often referred to as PMI. This is an additional monthly fee tacked onto the mortgage that can be removed once you’ve reached 20% of the mortgage. How does this benefit you? You have an overall reduced monthly cost. In addition, VA loans offer competitive terms and mortgage interest rates.
The Executive Director of the Department of Veterans Affairs Loan Guaranty Service, John Bell, recently described the strength of the program by saying:
“It provides early ownership for many people that would not have that opportunity to begin with. Since there’s no down payment, it allows people to hold their wealth and it gives them the ability to have long-term financial security by being able to own a house and let that equity grow.”
Our veterans sacrifice so much during their service to our nation. One way we thank them is to ensure they have the best information about the benefits of VA home loans. Thank you for your service. If you are considering using your VA home loan and wish to speak with an agent, please connect with us here or email us at Whidbeycommunications@windermere.com.
When Rents Rise, You Pay More But You Don’t Get More
When rents rise, you pay more but you don’t get more.
Interest rates might be rising, but so is rent! As Nadia Evangelou, Senior Economist and Director of Forecasting at the National Association of Realtors (NAR), says:
“There is no doubt that these higher rates hurt housing affordability. Nevertheless, apart from borrowing costs, rents additionally rose at their highest pace in nearly four decades.” So, which is right for you? Buying a house or renting? If you are finding yourself in a place where you are struggling to determine which is the right decision here’s some food for thought.
RENT CONTINUES TO RISE
Rent has continually risen significantly for decades with no end in sight. It is no coincidence that as costs rise rents do too. In fact, 72% of landlords intend on raising the rent on at least one of their properties within the next year. Could that be you? Have you ever stopped to think that when rents rise, you pay more, but you don’t get more? Not only can you make money in the long run by buying a home but buying a home can prevent you from getting trapped in the cycle of continually rising rent.
When you become a homeowner, you have the opportunity to lock in your monthly payment for 15 to 30 years without it increasing as rent does. Be sure to discuss the advantages of the different types of loan options you qualify for with your Mortgage Lender (don’t have one? You can find one here). This is where homeownership pays off. Not only does your monthly payment remain low as rents around you increase creating a shield of protection from inflation but you also gain equity as your home value increases, and your loan amount decreases with each additional payment producing significantly more equity in your home each month.
ON THE FLIP SIDE
On the flip side, you need to consider the maintenance and upkeep costs of owning your own home. There is no calling the landlord when things break down or wear out and depending on the age and condition of the home you could be looking at paying a big lump sum in the future. Beyond cosmetics maintenance, you will also need to consider the cost of replacing things like your hot water heater, furnace, or even the roof over time.
Homeownership is not the right decision for everyone but consulting with an experienced Windermere broker to help weigh through all the considerations is something we love to help with, and it doesn’t cost you anything. In the meantime check out this article to dig deeper into whether or not buying or renting is better for you. Don’t have your own Windermere agent yet? Connect with us here.
You’ll Lose Money When You Overprice Your Home
You are probably asking yourself, “did I read that right?”
Yes, yes you did.
It is normal for sellers to want to get the most money out of the sale of their homes. It feels safe to list your home at the price you are desiring to get, but the reality is listing high might actually do your pocketbook more harm than good in the long run. Follow along as we explain why.
RISKS OF OVERPRICING YOUR HOME
You are drawing the attention of the wrong buyers.
Most people begin their home purchasing journey by searching which homes are available in their desired location online. Consider this. Your home is worth $500,000, but you list it for $575,000. When buyers are looking online, they filter to find homes within their price range and typically by $25,000 increments. The person looking for a $500,000 home will never see yours and if they do they will believe it is out of their reach, and when the buyers looking in the $575,000 range see your home and compare it to others in that range, they will get the impression it is not worth it, and there are better options.
Fewer people will see your home.
When your home is overpriced, the issue can be detected by buyers just by looking at your online listing and will pass on viewing it in person. The more showings you have, the more legitimate interest there is, and the more likely your home is to sell. Showings give potential buyers an opportunity to see the home first-hand giving them the opportunity to imagine themselves living there.
On the other hand, if you get lots of showings because your photos look better than reality but no offers you’ve wasted your best shot at getting the right buyer through your home and you there are no redo’s for first impressions. This leads us to our next point…
You are sending the “I’m an undesirable home” message to the public.
As people continue to look for a home and new buyers enter the market, they might see your home online, but by that time they will also see the “time on market”. The longer your home sits on the market, the less attractive it becomes psychologically to everyone. Nobody wants the home that nobody else wants. Once it has lost its appeal the damage is done. You’ll find yourself beginning to reduce your price and often end up at a price less than what the home could have sold for if it was priced right the first time.
In conjunction with price reductions, the longer your home sits on the market, the more expenses you incur. Consider mortgage payments, utility costs, lawn care maintenance, seller’s fees, and more while you are trying to move out.
Your buyers won’t be able to finance if it doesn’t appraise.
Perhaps you drop the price just enough to intrigue a buyer but still above market level. Maybe you’re lucky enough to hook a buyer. Then the appraisal comes back low. Now you either have to come down in price or lose the buyer and start over again, with 20-30 days more on market…
If you are considering selling your home and would like a complimentary analysis to determine the correct value of your home in this market connect with us to be paired with an experienced Windermere agent that can help you with your unique situation and avoid all the overpricing pitfalls.
Back to School: Realtors Edition
If you aren’t a real estate broker you probably don’t know that September doesn’t just initiate back to school for our kids but as an industry, this is the beginning of conference season! This just means that Fall and Winter tend to be slower seasons and provide the best time for busy brokers to grab a block of hours or even a block of days to spend sharpening their skills. Great brokers are committed to being lifelong learners. They keep up with the ever-changing market, lending options, negotiating tactics, marketing techniques for properties, and the list goes on.
If you are a broker…
You may be looking for some great opportunities that are coming up in the next few months. We have collected a few that we think will be really worth your time. Take a peek and please let us know if we missed one of your favorites because we would love to add it to our list.
New Forms are coming SOON! Please take advantage of educational opportunities to study and familiarize yourself with the changes.
You can take one of the many virtual classes the NWMLS is offering here
Oct. 14, 9-3pm in Oak Harbor! Fair Housing Class, 6 clock hours
Ninja Installation Tacoma Dec 5-8 (Brokerage pays for 1st timers)! $1,100 Thinking about joining our team? Connect with us.
Conference Opportunities:
Windermere Homecoming! $350 (plus accommodation and travel) Sept. 29-30
Inman Connect NYC Jan 24-26 $900
Denise Lones Prosperity Strategy California Nov 9-11, only 50 people! $3,500 w/ accommodation
NAR Conference Orlando Nov 11-13 $450
In addition to these great learning opportunities our brokerage brings in an expert speaker 2-3 times on topics from septic systems to negotiation tactics, from topics as unique as forestry management to ones that are pretty applicable on an island like shoreline processes and bluff stabilization. If you’d like to attend one of these trainings let us know! We’d love for you to be our guest in learning because the better we can serve our clients in this industry the better!
Lagoon Point
Lagoon Point is one of just three canal communities on Whidbey Island where you can dock your boat right in front of your home. This rare style of a planned community used to be a large salt marsh before developers pushed earth around, dredged, and carved out a canal from Puget Sound down to finger canals lined with floating docks and gangways connecting them to backyards. You can find this centrally located neighborhood on the coveted west side of Whidbey Island on the southern edge of Greenbank.
Boating Community:
Although only a small percentage of Lagoon Point community homes have docks in their backyards, most all partake in the gorgeous water views. Many of the homes are perched up the hill where they can enjoy heightened and expansive views while others surround the large lagoon (Lagoon Lake) on the north side. No one can argue that this is a very boating centric community. In fact, one of the very best boat launches can be found here and is only available to homeowners. An added benefit is that there is ample space to store your truck and trailer while you are out enjoying the sound.
Keep in Mind:
The only tricky bit with this canal community is that mother nature keeps trying to close off the mouth of the canal that leads to the Puget Sound. With that said, it is of the utmost importance to have an intimate understanding of how the spit is currently formed and at what depth tide you can safely navigate your vessel through it. Luckily, it is a very active neighborhood. One member has even provided drone footage of the opening on his You Tube channel so you can familiarize yourself! https://www.youtube.com/channel/UCXwDdeNtdeZWUnSFtfQ2Gaw
Only Bridge on Whidbey:
Lagoon Point likes to boast that it has the only bridge on Whidbey Island. Confused huh? Let us explain. There is a very serious bridge that connects the two sections of the lower part of the community that has both ends firmly planted on Whidbey where the Deception Pass Bridge obviously has one side on an entirely different island. Ha! If you can debunk this we would love to hear. Send us an email here: whidbeycommunications@windermere.com.
Check it Out:
For those just wanting to check out the community you can easily take a drive around. There is a narrow section of beach that is a public beach at the end of Salmon Street. Keep in mind it is privately owned tidelands on either side. One of the best depictions of this can be found in the gallery section of the communities very informative website https://lagoonpoint.com/gallery/.
Close to Everything:
Being central on the island, positions the community only a couple of miles from South Whidbey State Park, less than 4 miles from Greenbank Farms, and less than 10 miles from downtown Freeland. Living in Lagoon Point offers you a plethora of opportunities to take a gorgeous hike or do your grocery shopping!
Considerations:
One consideration when investing in a canal community is that maintaining such infrastructure as a jetty, bulk heads, canals, 2 boat launches, and even a bridge can be expensive and hard work. A homeowner in this community needs to be prepared to invest in their upkeep and appreciate the work the volunteers on the board and committees take on. For instance, the new bridge installed in 2017 took 4 years and 100’s of thousands of dollars. The last time they dredged it took almost a decade and just under 1 million dollars.
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Spruce up your Space this Spring
With spring upon us and gardening on the top of our minds lets discuss 5 simple landscaping ideas to spruce up your space this spring before you rush out and use your 20% off plants at Mailliards Landing Nursery coupon during the month of April. Don’t have one but want one? Request yours here!
- Do you have a side yard that doesn’t get much sun? You probably find yourself feeling defeated when you are constantly left with patchy grass intermingled with mud when you were shooting for a lush green lawn. This is a sight for sore eyes, but this defeated feeling can be instantly cured with landscaping material such as pea gravel, sand, or steppingstones. A smooth, full look in this type of area is appealing to the eye and can give your yard a polished look that is not only simple to create but is also easy to maintain. Pro tip! Spruce it up with some potted seasonal flowers to brighten the space when you feel necessary.
- Determine your yards focal point. This is typically one big item. It can be a tree, a shrub, or a hardscape item like an arch, bench, or sculpture. Perhaps your yard already has one? If so, work with it to enhance eyes towards that focal point. If you don’t have one, Mailliards has a plethora of plants, shrubs and hardscape ideas to get your yard from 0 to 100 in no time!
- Create a flower bed. When choosing plants, lean on the expertise of garden store staff (they typically have a plethora of knowledge in this area). Then experiment with plants that work well in that location based on the level of sun, shade, and soil quality.
- PRO TIP: Choose native plants! These are plants that grow naturally in your area, are economical, and super easy to care for because they flourish with little to no help and are still enjoyable to look at.
- Add fresh mulch to flower and garden beds. Keep in mind that dark new mulch not only protects your plants, but it prevents weed growth and creates a fresh clean look for your yard.
Let your creativity flow. Post a picture to your social when you are done and tag us in it. We would love to see your finished product!
Instagram: @windermere_whidbey_island
Facebook: @WindermereWhidbeyIsland
If you are considering buying or selling and would like to dive deeper into this subject, we would be happy to schedule a consult with you at your home to show you even more low-cost tips and tricks for maximizing your sale price! Call us today at 360.675.5953 or email us at whidbeycommunications@windermere.com.
If you liked this article you might also like: Best ways to increase curb appeal for under $100 this Spring.
The Whidbey Island Guide and Neighborhood Deep Dive!
When you are preparing to move to a new location or to buy a home for the first time, you are likely eager to learn literally EVERYTHING from the home buying process to everything about the area and what it has to offer when you arrive.
Whether from pure excitement or overwhelming nerves you are likely to find yourself up well past your typical bedtime researching things like:
What cool things are nearby?
Which neighborhoods you can afford.
What those neighborhoods are like.
If you can imagine yourself living there.
Where the best spots are for a cup of coffee.
and probably… where the most iconic location for a picture that might make you Instagram famous might be.
Luckily for you, some real estate brokers are obsessed with this same level of need-to-know. There are a handful of brokers who have created incredibly in-depth online guides to their area. Many go as far as to include information on individual little neighborhoods that will make your search and transition that much easier.
Where it all started:
We were inspired by Marguerite Martin to go all out on neighborhoods and provide rich local content just as she has with her page Move to Tacoma.
It brings us great pleasure to announce that here at Windermere Whidbey Island, we recently unveiled our very own Neighborhood Guide. We couldn’t be more excited to share it with you! Our first release takes a deep dive into 26 neighborhoods from Oak Harbor to Greenbank. We will continue expanding over time. Each page includes written descriptions, images of the homes and neighborhood features, quotes from neighbors, a map with key attractions nearby, median sales price, links to active, pending, and sold homes, commute times to schools and nearby hospitals, and blog posts on a whole suite of topics related to that neighborhood.
Looking for more?
If you are looking for more lifestyle information, check out our umbrella page The Whidbey Island Guide. The guide offers local events, links to government and public sites/resources, collections of articles on things like hiking, restaurants, and so much more.
Remember, these pages represent just the tip of the iceberg on what our brokers know about living on Whidbey Island. If all this information just leads to more questions give us a call! If you have suggestions on information, you wish we would add please tell us, we are all ears.
Connect with us:
Connect with us and expand your search by following us on Instagram at @Windermere_Whidbey_Island where you can find reels on the various neighborhoods of Whidbey.
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If Facebook is more your thing you can find us here!
Best ways to increase curb appeal for under $100 this spring
Even in the hottest seller’s market Whidbey Island has ever seen, it’s obvious that curb appeal is still fetching top dollar. In fact, now more than ever a phenomenal home that is attractively presented is able to create such a stir that buyers are battling over who will get it. If you are selling soon don’t skimp on the power of curb appeal, the return on a small investment of time, elbow grease, and new plants will never be higher! We’ve prepared a list of 6 ways to increase your curb appeal and sell for top dollar. Don’t leave anything on the table in this market!
Perhaps you are not planning to sell… these tips will help you fall in love with your space that much more without breaking the bank. So, keep reading.
1. Mailliard’s Landing Nursery plants!
A manicured lawn, established trees, shrubs, and plants are all obvious ways to increase your home’s curb appeal but adding some seasonal flowers for a pop of color or replacing anything that’s looking a little scraggly and old is the all-important icing on the cake!
During the month of April, Windermere Whidbey Island partners with Mailliard’s Landing Nursery to offer you 20% off your purchase of plants when you present our Mailliard’s offer card. Don’t have this card but want one? Email us your address and let us know you want the Mailliards card and we will pop it in the mail for you. Eager to get it sooner? Just stop by our office and pick one up.
*Expert-tip: start small with a few fast-growing trees like these top picks!
Crape Myrtle
Emerald Green Arborvitae
Prairie Crabapple
Dawn Redwood
Paper Birch
Sargent Cherry
Leyland Cypress
In addition to being fast-growing these trees need little maintenance, just water them regularly and fertilize them in the spring and fall. Doing so will not only increase your home’s curb appeal but will also, increase your property value, reduce your utility bill, improve air quality, and even reduce your stress.
2. Paint the front door!
Give your entrance a huge boost with a fresh new look. A gallon of exterior paint costs roughly $35 – $50 dollars and is an instant way to make your home stand out! It is ok to go bold here just be careful to make sure it accentuates the rest of your home.
Before you start, ensure that the door is properly prepped for painting to get the best results that will last for years to come.
We love before and after pics of front door refreshes! When you’re finished post a pic to your social and tag us so we can see what you’ve done!
Instagram: @windermere_whidbey_island
Facebook: @WindermereWhidbeyIsland
3. Pressure wash!
Cleaning out not just the front entrance but a quick wash for the entire house to make it look fresh and well cared for. This includes your driveway, walkways, fences, gutters, siding, garage doors, and patio furniture. Living in the Pacific Northwest means mold, moss, and just general organic growth can cover most surfaces. What may be almost imperceptible to the naked eye will still look freshened up with a good scrub. If you don’t have a pressure washer you can rent one here. Don’t forget to always start on the lowest pressure to prevent damage to your surfaces. *Pro-tip: move from top to bottom and out towards the street.
4. Define your yard’s entry.
If your walkway starts at the street, make it a grand entrance to make your guests feel welcomed and invited. A good way to create this feeling is by decorating your entrance with planters, a fence, pavers, gravel, or solar path lighting. Remember to request your 20% off at Mailliard’s Landing Nursery card so you can get plants to fill the planter boxes.
5. Replace your mailbox
If your mailbox is old, dented, or rusty and a little cleaning doesn’t do the trick, purchase a new one some of them are as little as $20! If you are moving the placement, make sure you are following regulations. You can find them here at the United States Post Office website.
6. Clean or update your house numbers and lighting
Do something chic with your house number. Make sure the numbers are visible from the street and that they add to the appeal of your home. Get creative, put them on planters by your new grand entrance or add a succulent planter box at your front door and display your number across the front. Let your creativity flow. Post a picture to your social when you are done and tag us in it. We would love to see your finished product!
Instagram: @windermere_whidbey_island
Facebook: @WindermereWhidbeyIsland
If you are considering buying or selling and would like to dive deeper into this subject we would be happy to schedule a consult with you at your home to show you even more low-cost tricks and tips for maximizing your sale price! Call us today at 360.675.5953.
