Every component of your home has a lifespan. Common questions asked by homeowners include when to replace the flooring or how long to expect their siding to last. This information can help when budgeting for improvements or deciding between repairing and replacing when the time comes. We’re all familiar with the cliché: They just don’t build things like they used to. And while this may be true when it comes to brick siding or slate roofing, lifespans of other household components have increased in recent years. Here are the life expectancies of the most common household items (courtesy of NAHB):
Appliances:
Among major appliances, gas ranges have a longer life expectancy than things like dishwashers and microwaves.
Kitchen & Bath:
When choosing your countertops, factor in the life expectancies of different materials.
Flooring:
If you’re looking for longevity, wood floors are the way to go. Certain rooms in your home will be better suited for carpeting, but you can expect they’ll need replacing within a decade.
Siding & Roofing:
When choosing roofing and siding for your home, climate and maintenance level factor into the life expectancy of the material. However, brick siding and slate roofing are known to be dependable for decades.
Are extended warranties warranted?
Extended warranties, also known as service contracts or service agreements, are sold for all types of household items from appliances to electronics. They cover service calls and repairs for a specified time beyond the manufacturer’s standard warranty.
You will have to consider whether the cost is worth it to you. For some, it brings a much-needed peace of mind when making such a large purchase. Also consider if the cost outweighs the value of the item. In some cases it may be less expensive to replace a broken appliance than to pay for insurance or a warranty.
As we celebrate the start of autumn, the season of change, the leaves on the trees are not the only things that are falling. Interest rates have gradually fallen throughout the year. Just 11 months ago, rates were almost 2 points higher; in the frothy spring market, they were nearly 1.5 points higher. During this same time, the median price in King County and Snohomish County grew. In King County, the median price was recorded at $975,000 this August and at $775,000 in Snohomish County, which are both up 7% year-over-year from August 2023.
Another trend that we are witnessing is a rise in available inventory for sale. August recorded the highest level of available homes for sale since the fall of 2022, two years ago. There were 3,105 available homes for sale in King County in August 2024 compared to 1,207 in January 2024, and 1,147 in Snohomish County in August 2024 compared to 374 in January 2024.
The combination of lower borrowing costs and more selection should be a welcome change for buyers. When the inventory was much tighter in the first half of 2024 and interest rates were higher, prices were increasing at a rapid rate. We are starting to see new buyers enter the market and some who have sidelined themselves return. This indicates that prices will remain stable as we finish out 2024.
Currently, buyers have more selection and the opportunity to grab a lower monthly payment. As you can see from the chart below, buyers have a significant opportunity to afford a higher price point at a lower rate or stay at the same price point and have a lower monthly payment. The reduction in rate over the last year is reducing monthly payments and creating great long-term savings over the life of the loan. The rule of thumb for affordability is a 1-point shift in rate affects a buyer’s buying power by 10%. For example, a home priced at $800,000 with a 7% interest rate will have a similar monthly payment as a home at $880,000 with a 6% rate.
The hesitation we are seeing in the marketplace is a desire for rates to come down even further. The good news is that they are predicted to continue this gradual decline. Where we are concerned is a decrease in selection. If we look at seasonality, it is common for inventory to be low in the first half of the year, especially in Q1 (see the King & Snohomish graphs above). If rates continue their slide and fewer new listings come to market, buyers will find themselves duking it out in 2025. Right now, while there are multiple offers on some properties, there are more properties that are being negotiated into contracts with one buyer.
This has created a more nimble market, particularly for buyers who also have to sell their homes to reposition their equity into a downpayment. While tight inventory provides great leverage for a seller, many sellers are also buyers. Analyzing the market conditions to align the environmental influences to create the best possible outcome for your goals is paramount, and it will not be the same for everyone. Depending on our client’s goals, timing can vary.
Oh, and another sentiment we often hear is, “Will rates under 5% ever be back?” That is rather unlikely and will go down as a historic time in our economy. With that said, if you are in your “forever home” and you captured a historically low rate, kudos to you! Truly, so awesome! If you are not in the home that is right for you, now may be the time to curate a plan to get you into your next home. If homes were selling at a rapid rate and prices were appreciating this last spring with 10% less buyer power, we imagine next spring will be much of the same, if not more.
One final item to note is the election. History shows that post-election year markets are brisk with sales and experience price growth and rate decreases. We are paying attention to key indicators such as inflation figures, unemployment measurements, the gap between the 10-year treasury yield and mortgage rates, and our local market conditions in order to provide our clients with the most accurate and up-to-date information to empower strong decisions.
Are you curious how all of this affects you? Real estate is the number one tool for building wealth, and you also get to live there. We think that is pretty important, and we love nothing more than providing valuable insights, having strategic conversations, and helping people align their homes with their lives. Home is where the heart is and also where your nest egg has the most reliable long-term growth. Please reach out if you’d like to dig into the details and apply them to your housing and investment goals.
Simple Steps to Saving for a Down Payment
by Windermere Staff
Whether your dream home just came onto the market or you’re thinking ahead for a purchase down the road, coming up with the money for a down payment can feel daunting. Don’t fret! There are steps you can take now—both large and small—that will add up over time to help you secure the funds you need to make that offer.
Determine how much you need
First things first, set your goal. The answers to these questions will help you determine what you’ll need to budget for the down payment:
What do homes cost in the area you where want to live?
How soon are you looking to buy?
Do you qualify for buyer-assistance programs in your area? Where have interest rates been going (up or down) lately?
Don’t forget about closing costs when calculating how much you’ll need!
Start a high-yield savings account
It’s difficult to keep track of how much you’re saving if you’re putting all your money in the same account you pay for living expenses with. Your down payment fund deserves its own savings account.
Look for high-yield savings account options at your current bank or find a new bank that offers one. Many banks today offer a 3-5% annual yield that will compound quickly.
Eliminate unnecessary expenses
No, you don’t need to stop eating avocado toast or give up your hobbies. Even simple changes can quickly add up.
Go thrifting instead of buying new clothes.
Get your library card rather than buying new books.
Cancel subscriptions to publications or services you rarely use.
Prepare meals at home a few times a week instead of dining out.
Though cutting back can sometimes feel like an inconvenience, these adjustments are temporary and don’t have to change how you live too drastically. Even while you’re re-prioritizing your spending, you can still simultaneously save for things like travel, and all the provisional adjustments will feel worth it when you’re enjoying your new home.
Don’t dip into emergency funds
Though it can be tempting to look at your retirement account balances or emergency savings account and daydream about barbeques in your new back yard, don’t give in. The tax implications of cashing out a 401K or IRA almost always outweigh the benefits of the quick money, and many retirement accounts require paying them back relatively quickly, likely before you’ll have built equity in your home. And your emergency fund is there for just that: emergencies. Life can be unpredictable and having at least six months’ living expenses stored away offers peace of mind is priceless.
Automate your savings
If you haven’t already, arrange to have your paycheck automatically deposited into your bank account, and then designate a percentage of it to go directly into savings rather than checking. This helps ensure that you’re putting the cash away before you use it on other expenses. By depositing directly into your savings account you’re less likely to think about it when making a purchase.
Other ways to automate savings include taking advantage of programs that will round up any purchases you make from checking and put the difference directly into your savings account. Check to see if your bank offers this or look into available applications in your app store. You can also use a credit card that offers cash back on a percentage of what you spend and save those rewards in your separate savings account. Just be sure to pay the bill completely each month!
Take advantage of windfalls
If you get a raise, bonus, or inheritance, put the extra money right into your high-yield savings account and stick to the budget you had before the windfall. You won’t feel a difference in your lifestyle, but even an incremental increase will help chip away at your goal.
Ask for help
Weddings, graduations, new babies, and other major life events are great opportunities to ask for cash in lieu of gifts. Be sure to document any gifts appropriately, and as long as it is a gift and not a loan, money from family and friends can help put you in a home you’ll all be able to enjoy together soon.
Buying a home is likely to be the largest financial transaction you’ll make in your life, and saving enough for a down payment can feel overwhelming. But with some dedication and smart money choices, you could be ready sooner than you think. Good luck, and happy saving!
Why Buyer Representation Should Matter So Much to Sellers
by Windermere Staff
In today’s rapidly changing real estate landscape, understanding the critical role of buyer representation has never been more essential for home sellers. With the pending NAR settlement on the horizon, many sellers may not fully grasp the significant impact these changes will have on their transactions. The urgency to adapt is real, and overlooking the necessity of paying a buyer agent commission could expose sellers to unforeseen risks.
Currently, home buyers are not allowed to roll their buyer agent compensation into their loan. This means they must bring cash to the table to pay their agent (if the seller is not offering buyer agent compensation).
Unrepresented buyers should be considered more than a minor hiccup—it can lead to a cascade of complications that jeopardize the entire deal. To safeguard your investment and ensure a smooth transaction, it’s crucial to recognize the invaluable support a buyer’s agent provides.
What value does a seller receive if the buyer has professional representation? Let us list the ways:
Lender Connections: Buyer agents connect their buyers with well-vetted (and typically local) lender partners who have proven time and again that they can close a transaction, and on time.
Documentation Management: Buyer agents ensure that buyers have delivered all necessary documentation to the lender to ensure full underwriting.
Market Analysis: Buyer agents provide comparable market analysis reports (CMAs) to help buyers understand the market value of the home and support a reasonable offer price.
Contract Guidance: Buyer agents guide their clients through the purchase and sale agreement, ensuring that they understand the terms and conditions and their ability to fulfill their commitments.
Contingency Explanation: Buyer agents explain all contingencies to buyers, ensuring they understand the risks and rewards, especially when waiving contingencies.
Earnest Money Handling: Buyer agents ensure that earnest money funds are delivered to escrow on time.
Transaction Deadlines: Buyer agents ensure that their client and their lender observe and adhere to all deadlines to keep the transaction flowing smoothly and closing on time.
Inspection Access: Buyer agents provide access to home inspectors and help their buyers understand the reports. This is critical as most MLS associations require an agent to be present whenever a door is opened. If the buyer doesn’t have representation, the listing agent must give access, exposing them to inspection findings and forcing them to disclose on behalf of the seller.
Appraisal Assistance: Buyer agents give access to appraisers and typically provide reports of comparable properties to support the purchase price, ensuring the property appraises at value.
Negotiation Support: If the appraisal report comes in less than the purchase price, the buyer agent will help negotiate and collaborate with the listing agent to ensure a mutual agreement is reached by all parties.
Transaction Coordination: Most importantly, the buyer broker helps keep their client and all parties on track to ensure closing, and crucially, on time.
The value a buyer agent brings to the transaction is indispensable. Their expertise not only facilitates a smoother process but also protects all parties involved from potential pitfalls. By ensuring the buyer has professional representation, sellers can avoid significant risks and secure a successful transaction. In the evolving real estate market, investing in buyer agent compensation is a wise decision that benefits everyone involved.
What is Wire Fraud and How to Avoid It
by Sandy Dodge
A form of cybercrime, wire fraud has led to major losses for homebuyers in recent years. Get to know what it is and what steps you can take to avoid it.
What is wire fraud?
Real estate wire fraud is a scam that targets buyers while making payments during the home buying process. Attackers have taken advantage of the fact that there are several people and entities involved in real estate transactions. Between real estate agents title and escrow companies, mortgage lenders and more, there are many steps, some of which involve sharing financial information and transferring money. This gives ample opportunity for scammers to slip through the cracks somewhere along the line.
The timing of wire fraud is typically during closing using a sophisticated phishing scam. Attackers apply the use of fake emails, phone numbers, or websites, often posing as the buyer’s real estate agent and directing them to allocate funds to a fraudulent account. Because the attacker will have scanned, scrubbed, and lifted your personal information in preparation for the scam, their forms of communication can often look familiar and legitimate.
The mission of the cyberattack is to get your funds into an account the attacker owns. To do this, it is common for them to say that you had previously sent funds incorrectly, that they were never received, that there are new instructions for payment, or that there has been a last-minute change in the closing process. These are all major red flags. It is imperative to take extra caution during the final steps of purchasing a home because transfers, once initiated, are difficult to remedy and can delay your closing process.
How can I avoid wire fraud?
Get to know the closing process: Talk with your Windermere agent ahead of time about what to expect throughout the closing process. Discuss payment options with your lender and ask specifically about instructions for wiring funds. It is safer to share this information over the phone than through email, as scammers could accumulate this information to use against you.
Record contact information: Keep a list of the personnel involved in your closing process. Beyond your real estate agent, keep a record of contacts at your mortgage lender, title company, and attorney’s office. In the event that someone new reaches out to you with a request, confirm their identity with one of your contacts.
Call to confirm: Call to confirm wiring instructions before sending the transaction through. Talk to a trusted representative and ask them to repeat the information to verify its legitimacy. After sending the funds, make same-day follow-up calls to ensure they were received.
Trust your gut: If you receive an iffy email or phone call, trust your gut. If something doesn’t feel right, it’s the perfect time to reach out to your contacts, discuss your hesitancy, and get advice before proceeding.
The threat of wire fraud emphasizes the importance of working closely with everyone involved in the purchase of your home. If you believe you have been scammed, contact your bank or wire transfer company immediately and request that they issue a recall notice for your wire. Contact the FBI’s Internet Crime Complaint Center and report the activity with as much information as you can gather. For more information about how to protect yourself from wire fraud, visit the National Association of Realtors’ Wire Fraud resources page.
Eco-friendly Upgrades to Consider When Buying a Home
by Windermere Staff
Buying a home is one of the largest investments you’ll make in your lifetime, which is why it’s important to take a long-term approach when looking at potential properties. In addition to imagining what your living situation will be over the next few decades and how your future home will accommodate it, you may also want to consider the impact you and your household will have on the environment.
Whether you’re buying a fixer-upper, a home that is move-in ready, or something in between, here are some eco-conscious things to consider as you’re shopping for a home.
As you look at homes, be sure to look at the furnace, heat pump, or AC unit. Are they up to date or could you replace them with something more efficient? If you have the opportunity, check to see how well insulated the house is. If that’s not an option, be sure to ask during the home inspection to see if there is enough to keep your home warm in winter and keep the heat out during warmer weather.
If you are one of the many would-be homeowners who are considering going solar, look for homes that have a significant area—usually the roof—that faces to the south and isn’t obstructed by trees or taller houses.
Appliances
In most cases, the home you purchase will come with the appliances that are already in it. Do the homes you’re viewing have Energy Star-certified appliances in the kitchen and laundry room? If not, is upgrading to a more energy-efficient oven, refrigerator, washing machine, or dryer in your budget?
. And be sure to look for rebates or tax credits in your city or state that reward these kinds of upgrades.
Windows
It doesn’t matter how efficient your heating and cooling systems are if your windows are letting the air escape through leaks in the seals or old, thin glass. Upgrading to properly sealed dual-paned windows can seem costly, but the savings in energy bills will quickly show an ROI. Tax credits and rebates may apply here as well.
If the home you’re making an offer on needs a new roof, you have lots of eco-friendly options to consider. Homes in sunnier climates could see energy savings by installing a “cool” roof that absorbs less heat due to its light or white color. Today’s roofing can be made of reclaimed materials, including recycled shingles, slate, or tile. These may cost a little more, but the peace of mind you get from keeping these things out of landfills is priceless.
If you’ve got a green thumb and want to show it off with the top of your house, a living roof may be right for you. Living roofs rely on native vegetation to both clean the air and insulate the home as well as absorb rainwater. This kind of roof is best for houses with less of an angled profile and that have easy access to the roof for regular maintenance.
Landscaping
The greenest yard isn’t the one with the most luxurious grass; it’s the one that requires the least amount of water and chemicals to maintain. Native plants and xeriscaping are natural choices for low-maintenance outdoor spaces. You can also consider gravel, paving stones, or turf instead of grass and decorate with large rocks or reclaimed wood. Trees that shed their leaves in the fall provide shade in the summer months, habitats for hibernating animals and insects in winter, and mulch for the rest of your yard in the spring.
We all love a warm shower, of course, but traditional water heaters are one of the least efficient appliances in our homes. Heating up water takes a lot of energy and keeping it at a high temperature takes even more. Tankless water heaters, on the other hand, heat water on demand rather than wasting energy to maintain it. In addition to the energy savings, tankless water heaters mean you never run out of hot water—no more frigid showers!
